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/raid1/www/Hosts/bankrupt/TCRLA_Public/131115.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, November 15, 2013, Vol. 14, No. 227 Headlines B A H A M A S ULTRAPETROL (BAHAMAS): Records $112.6 Million Revenue in 3Q B R A Z I L JBS SA: Posts Lower 3Q Earnings of US$94.5 Million MARFRIG ALIMENTOS: Swings to BRL194 Million Third-Quarter Loss OGX PETROLEO: And OSX Bankruptcies to Be Reviewed Jointly OGX PETROLEO: Shares Withdrawn From Trading 'Without Incident' * BRAZIL: To Get US$270MM IDB Loan for Health Care Management C A Y M A N I S L A N D S ALPINE III: Member to Receive Wind-Up Report on Nov. 21 CG TAIWAN: Shareholders Receive Wind-Up Report CROSBY ACTIVE: Shareholders Receive Wind-Up Report CROSBY MASTER: Shareholders Receive Wind-Up Report FR & MS: Shareholders Receive Wind-Up Report NEWCASTLE CDO IV: Member to Receive Wind-Up Report on Nov. 21 NICOGIO LTD: Shareholders Receive Wind-Up Report PEP CHANNEL: Shareholder to Receive Wind-Up Report on Nov. 29 SENTINEL P & C: Member to Receive Wind-Up Report on Nov. 26 VICTORIA & EAGLE: Shareholders to Hear Wind-Up Report on Nov. 21 M E X I C O SMU SA: S&P Affirms 'CCC+' CCR and Revises Outlook to Negative - - - - - ============= B A H A M A S ============= ULTRAPETROL (BAHAMAS): Records $112.6 Million Revenue in 3Q ----------------------------------------------------------- Ultrapetrol (Bahamas) Limited disclosed financial results for the third quarter ended Sept. 30, 2013. The company recorded third quarter 2013 revenues of $112.6 million. The company also recorded adjusted EBITDA of $30.2 million in the third quarter of 2013; which includes adjusted EBITDA of $11.4 million from its River Business, adjusted EBITDA of $12.7 million from Offshore Supply Business segment, adjusted EBITDA of $0.7 million from Ocean Business segment, and adjusted EBITDA of $5.4 million from other activities-primarily foreign currency exchange cash gains. A full text copy of the company's financial statement is available free at: http://is.gd/tBpmUZ Ultrapetrol (Bahamas) Limited, headquartered in Nassau, Bahamas, is a diverse international marine transportation company. The company operates in three segments: River, Offshore Supply, and Ocean. Last twelve months ended June 30, 2013 revenues totaled $369 million. * * * As reported in the Troubled Company Reporter on Sept. 26, 2013, Moody's Investors Service said that Ultrapetrol (Bahamas) Limited's $25 million add-on to its existing $200 million 8.875% First Preferred Ship Mortgage Notes due 2021 will not impact the company's B3 Corporate Family Rating and senior secured notes rating, SGL-2 speculative grade liquidity rating, or stable ratings outlook. =========== B R A Z I L =========== JBS SA: Posts Lower 3Q Earnings of US$94.5 Million -------------------------------------------------- Steve Lynn at Northern Colorado Business Report writes that JBS S.A. earned $94.5 million during the third quarter, down from the $157.8 million it earned the same period last year. JBS S.A. posted revenue of $10.4 billion during the third quarter ended Sept. 30 vs. $8.3 billion during the third quarter of 2012, according to Northern Colorado Business Report. The report relates that the company said the higher revenue came from increased revenues in all its units as well as from the devaluation of the Brazilian real. However, the report notes that the company also reported third- quarter expenses of $376.1 million, more than doubling the $180 million in expenses during the previous third quarter. The report relays that JBS S.A. ended the quarter with $3.4 billion in cash or cash equivalent. Headquartered in Sao Paulo, Brazil, JBS S.A. is the world's largest protein producer in terms of revenues, slaughter capacity and production. It is the leader beef, chicken and leather player and a leading lamb producer on a global basis, besides being the third largest pork producer in the USA. The company has large scale and diversification, with presence in more than 100 countries. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 24, 2013, Fitch Ratings affirmed the foreign and local currency Issuer Default Ratings (IDRs) of JBS S.A. (JBS) at 'BB-' as well as its 'A-(bra)' national scale rating. Fitch has also affirmed at 'BB-' rating on the notes due in 2016 issued by JBS and the 'A-(bra)' rating of its debentures due in 2015. MARFRIG ALIMENTOS: Swings to BRL194 Million Third-Quarter Loss -------------------------------------------------------------- Rogerio Jelmayer writing for The Wall Street Journal reports that Marfrig Alimentos S.A. reported a net loss of BRL194 million (US$83 million) for the third quarter, versus a net profit of BRL90.6 million a year earlier. The company attributed the loss to the rise in its debt-service costs, impacted by the increase of Brazil's benchmark Selic interest rate, according to The Wall Street Journal. The report relates that Marfrig's debt-service costs almost doubled to BRL481.1 million in the third quarter, up from BRL254.8 million in the prior-year period. The report notes that it ended the third quarter with a net debt of BRL6.6 billion in the third quarter, versus BRL8.77 billion at the end of the second quarter. The company's net revenue rose 15% in the period to BRL4.94 billion, the report adds. About Marfrig Alimentos Marfrig Alimentos SA (formerly Marfrig Frigorificos e Com de Alimentos SA) is a Brazil-based company engaged in the processing and distribution of meat and poultry products. Its products include cooked beef, bacon, sausages, beef cubes, minced knuckles, steaks and other food items including pre-cooked and frozen potato, frozen vegetables, canned meat, fish and ready meals. The Company operates in 13 countries, and exports its products to more than 100 destinations worldwide. * * * As reported in the Troubled Company Reporter - Latin America on May 13, 2013, Standard & Poor's Ratings Services lowered its global scale corporate credit rating to 'B' from 'B+' and its national scale rating to 'brBBB-' from 'brBBB+' on Marfrig Alimentos S.A. The outlook is negative. OGX PETROLEO: And OSX Bankruptcies to Be Reviewed Jointly --------------------------------------------------------- Luciana Magalhaes at Daily Bankruptcy Review reports that the bankruptcy protection proceedings of OGX Petroleo e Gas Participaaoes S.A. and OSX Brasil SA, two companies controlled by former Brazilian billionaire Eike Batista will be analyzed together and under the supervision of the same judge, as requested by the firms' lawyers, a person with knowledge of the situation said. As reported in the Troubled Company Reporter on Nov. 1, 2013, Michael Bathon, substituting for Bill Rochelle, the bankruptcy columnist for Bloomberg News, said that OGX Petroleo & Gas's bankruptcy filing puts $3.6 billion of dollar bonds into default in the largest corporate debt debacle on record in Latin America. According to the report, OGX, a startup based in Rio de Janeiro, filed documents in a business tribunal there on Oct. 30, said Sergio Bermudes, a lawyer representing the company's chairman and founder, Eike Batista. The Oct. 30 filing by the oil company that transformed Batista into Brazil's richest man followed a 16-month decline that wiped out more than $30 billion of his personal fortune. The filing, which in Brazil is called a judicial recovery, follows months of negotiations to restructure the dollar bonds, in which OGX sought to convert debt to equity and secure as much as $500 million in new funds. OGX said Oct. 29 that the talks concluded without an agreement. The company's cash fell to about $82 million at the end of September, not enough to sustain operations further than December. A Nov. 12 report by the TCRLA, citing The Wall Street Journal, said, the collapse of OGX sent shockwaves across the rest of Mr. Batista's companies, which included five interlinking mining, port, oil, energy and ship building firms taken public over a frenetic six-year stretch starting in 2006. The hardest hit by the oil company collapse is OSX, the ship builder he set up to build oil platforms and lease them to OGX. OSX had essentially one customer, his oil company OGX; when one went down, so did the other. OSX filed for bankruptcy protection on Nov. 11, 2013, at a Rio de Janeiro. OSX had outstanding debts of around $2.2 billion as of June 30. OGX is an independent exploration and production company with operations in Latin America. OGX PETROLEO: Shares Withdrawn From Trading 'Without Incident' -------------------------------------------------------------- Rogerio Jelmayer at Dow Jones Newswires reports that shares of OGX Petroleo e Gas Participaaoes S.A. were withdrawn from trading on the Brazilian Stock Exchange at the end of October "in an orderly fashion and without incident," the exchange's president said. "We at the exchange, along with everyone else in the capital markets, were very much frustrated by the course of events involving OGX," Dow Jones Newswires quoted Edemir Pinto, president of the BM&F Bovespa, the company that controls Brazil's financial exchanges, as saying. The report relates that Mr. Pinto said the exchange didn't detect any irregularities in trading in OGX over the years. The report notes that Mr. Pinto added, the withdrawal of OGX shares from exchange trading was "quite unlike anything we've seen in the 45 years since the benchmark Ibovespa stocks index was created." Mr. Pinto said, "We have not noticed any damage to the exchange's reputation in relation to the OGX situation," the report notes. About OGX Petroleo Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes S.A. is an independent exploration and production company with operations in Latin America. OGX filed for bankruptcy in a business tribunal in Rio de Janeiro on Oct. 30. The bankruptcy filing puts $3.6 billion of dollar bonds into default in the largest corporate debt debacle on record in Latin America. The filing by the oil company that transformed Eike Batista into Brazil's richest man followed a 16-month decline that wiped out more than $30 billion of his personal fortune. The filing, which in Brazil is called a judicial recovery, follows months of negotiations to restructure the dollar bonds, in which OGX sought to convert debt to equity and secure as much as $500 million in new funds. OGX said Oct. 29 that the talks concluded without an agreement. The company's cash fell to about $82 million at the end of September, not enough to sustain operations further than December. * BRAZIL: To Get US$270MM IDB Loan for Health Care Management ------------------------------------------------------------- Brazil's Sao Paulo state will receive a loan for US$270 million from the Inter-American Development Bank (IDB) to strengthen health care management and implement a regional networks model for the country's Unified Health System. Along with other Brazilian states, Sao Paulo has been experiencing a sharp rise in chronic illnesses among its population. The program will address this problem by strengthening health promotion and prevention through an integrated model of service networks to ensure continuous, integrated, and successful patient care. The integration of service networks will be tested in two different scenarios: in small towns that are part of micro-regions and which presently receive inadequate health service coverage, such as Vale do Ribeira, Itapeva, Vale Jurumirim, and the North Coast; and in the metropolitan region of Campinas, especially in districts with vulnerable populations. Areas benefiting from the program will receive strategic investments in infrastructure, including the construction and remodeling of basic health care units, counseling centers, a medical specialties clinic, and two regional hospitals. In addition, the program will finance the implementation of regional regulation centers and training for health care professionals. The program will finance the increased level of management needed for carrying out the network model by providing support to the Health Department of the State of Sao Paulo for consulting services and studies, modernization of equipment, and development of a strategy for ongoing training for Unified Health System managers. Subjects will include the use of clinical protocols and lines of care in maternal and child health, diabetes, hypertension, mental health, geriatric care, and men's heath. The IDB's project team leader, Rita Sorio, described the importance of the activities to be carried out in the program. "The consolidation of integrated health networks is an important step for effectively addressing the ongoing demographic and epidemiological transition that is characterized by an aging population and an increase in chronic diseases," she said. "Providing network-based services allows states to better coordinate the provision of health services, which will result in better quality of care and therefore better use of available resources." It is expected that the program will reduce premature deaths from diabetes and cardiovascular conditions; improve the quality of first-level services and thereby reduce the rate of hospital admissions due to situations that could have been addressed by primary health services; and increase regular access to health checkups and specialized services, when necessary. In addition to the IDB loan, the state is contributing $110 million to the program, for a total investment of US$380 million. The IDB financing has a term of 25 years, a grace period of 5-1/2 years, and an interest rate based on LIBOR. ========================== C A Y M A N I S L A N D S ========================== ALPINE III: Member to Receive Wind-Up Report on Nov. 21 ------------------------------------------------------- The member of Alpine III will receive on Nov. 21, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ellen J. Christian c/o BNP Paribas Bank & Trust Cayman Limited P.O. Box 10632, 3rd Floor, Royal Bank House 24 Shedden Road, George Town Grand Cayman KY1-1006 Cayman Islands CG TAIWAN: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of CG Taiwan Fund Corporation received on Nov. 12, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands CROSBY ACTIVE: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Crosby Active Opportunities Feeder Fund Limited received on Nov. 13, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. Fok Hei Yu is the company's liquidator. CROSBY MASTER: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Crosby Active Opportunities Master Fund Limited received on Nov. 13, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. Fok Hei Yu is the company's liquidator. FR & MS: Shareholders Receive Wind-Up Report -------------------------------------------- The shareholders of FR & MS received on Nov. 12, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands NEWCASTLE CDO IV: Member to Receive Wind-Up Report on Nov. 21 ------------------------------------------------------------- The member of Newcastle CDO IV, Limited will receive on Nov. 21, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ellen J. Christian c/o BNP Paribas Bank & Trust Cayman Limited P.O. Box 10632, 3rd Floor, Royal Bank House 24 Shedden Road, George Town Grand Cayman KY1-1006 Cayman Islands NICOGIO LTD: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Nicogio Ltd received on Nov. 8, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. Telephone: 945 8859 Facsimile: 949 9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands PEP CHANNEL: Shareholder to Receive Wind-Up Report on Nov. 29 ------------------------------------------------------------- The shareholder of Pep Channel Investments II GP Ltd will receive on Nov. 29, 2013, at 1:15 p.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943 3100 SENTINEL P & C: Member to Receive Wind-Up Report on Nov. 26 ----------------------------------------------------------- The member of Sentinel P & C Insurance SPC Ltd will receive on Nov. 26, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bernard McGrath 69 Dr. Roy's Drive P.O. Box 1043 Grand Cayman KY1-1102 Cayman Islands Telephone: 949 0050 Facsimile: 949 8062 VICTORIA & EAGLE: Shareholders to Hear Wind-Up Report on Nov. 21 ---------------------------------------------------------------- The shareholders of Victoria & Eagle Strategic Fund Limited will hear on Nov. 21, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David A.K. Walker c/o Andrew Nembhard Telephone: (345) 914 8779 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands =========== M E X I C O =========== SMU SA: S&P Affirms 'CCC+' CCR and Revises Outlook to Negative -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'CCC+' corporate credit and issue-level ratings on SMU S.A. y Subsidiarias (SMU). At the same time, S&P revised the outlook on the corporate credit rating to negative from developing. "The revised outlook reflects the significant deterioration in SMU's operating and financial performance beyond our expectations which could further limit the company's financial flexibility and liquidity, especially considering our expectations for weak EBITDA and funds from operations generation in the next two years," said Standard & Poor's credit analyst Sandra Tinoco. For that period, S&P expects EBITDA margins below 3%, debt to EBITDA greater than 18.0x and FFO to debt below 0.5%. S&P believes default risk persists as the company is still negotiating a final agreement with its local banks and the controlling shareholders have yet to complete a $187 million (Chilean peso [CLP] 93 billion) injection in order to maintain local bondholders' waivers and avoid an accelerated debt payment of about $1.2 billion (CLP600 billion). Moreover, SMU faces a significant $201.7 million (CLP100 billion) debt maturity in 2015 and another $186.3 million (CLP92.6 billion) in 2016. After SMU announced the restatement of its first quarter 2013 results in July of this year, it breached two financial covenants, leading to a national scale rating downgrade which implied the breach of a rating trigger with its banks. In August, the company reached an agreement with its local bondholders dependent upon a $300 million (CLP149 billion) capital injection (from the approved $500 million [CLP248 billion]) of the controlling shareholders before Dec. 31, 2013. The shareholders have already injected $113 million (CLP56.2 billion) with the proceeds from the sale of a 67% stake in Corp Vida, CorpGroup's insurance division. CorpGroup is SMU's parent. S&P believes a default risk still persists as the shareholders have yet to inject an additional $187 million (CLP93 billion) expected in the next few months. Moreover, SMU hasn't been able to obtain a final agreement on its waivers with its banks; the current waiver expires Dec. 30, 2013. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2013. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *