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/raid1/www/Hosts/bankrupt/TCRLA_Public/140228.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, February 28, 2014, Vol. 15, No. 42 Headlines B R A Z I L MEGA ENERGIA: Moody's Assigns B2 Corporate Family Rating MMX MINERACAO: Completes Porto Sudeste Sale to Trafigura-Mubadala C A Y M A N I S L A N D S DISTACOM COMMUNICATIONS: Commences Liquidation Proceedings FORETREND INVESTMENTS: Members Receive Wind-Up Report FRIDAY INTERNATIONAL: Creditors' Proofs of Debt Due March 4 GLOBAL TECH: Creditors' Proofs of Debt Due March 4 MYRIAGON SPECIAL: Creditors' Proofs of Debt Due March 13 OMV ANAGUID: Commences Liquidation Proceedings OMV SOUTH: Commences Liquidation Proceedings PALO ALTO: Creditors' Proofs of Debt Due March 12 PALO ALTO MASTER: Creditors' Proofs of Debt Due March 12 PLAINFIELD 2008: Creditors' Proofs of Debt Due March 13 PLAINFIELD 2009: Commences Liquidation Proceedings PLAINFIELD SPECIAL: Creditors' Proofs of Debt Due March 13 PRATA INVESTMENT: Creditors' Proofs of Debt Due March 4 SLJ MACRO: Creditors' Proofs of Debt Due March 3 SLJ MACRO MASTER: Creditors' Proofs of Debt Due March 3 VOTO-VOTORANTIM: Commences Liquidation Proceedings VOTO-VOTORANTIM III: Commences Liquidation Proceedings VOTO-VOTORANTIM V: Commences Liquidation Proceedings XRAY FUND: Creditors' Proofs of Debt Due March 12 D O M I N I C A N R E P U B L I C XSTRATA PLC: Official Says 'Yes, but' to Planned Mine T R I N I D A D & T O B A G O PETROTRIN: La Brea Beaches to be Cleaned - - - - - =========== B R A Z I L =========== MEGA ENERGIA: Moody's Assigns B2 Corporate Family Rating -------------------------------------------------------- Moody's America Latina has assigned a first time B2 corporate family rating in the global scale and Baa3.br in the national scale to Mega Energia Locacao e Administracao de Bens S.A. At the same time, Moody's assigned a B3 global scale local currency rating and a Ba2.br National Scale Rating (NSR) to the company's BRL 70 million senior unsecured 5-years debentures issued in September 2013. The outlook for all ratings is stable. Ratings assigned as follows: Issuer: Mega Energia Locacao e Administracao de Bens S.A. Corporate Family Rating: B2 (global scale) / Baa3.br (national scale) BRL 70 million senior unsecured debentures due 2018: B3 (global scale)/Ba2.br (national scale) The outlook for the ratings is stable Ratings Rationale Mega Energia's B2/Baa3.br ratings reflect primarily the company's relatively small size, despite its position among the leaders in the fragmented equipment rental business, and its exposure to the highly cyclical nature of this industry. The favorable growth prospects of the heavy construction industry in Brazil, supported mostly by infrastructure investments, which will ultimately benefit the equipment rental sector, are also incorporated in the ratings. The company's adequate capital structure, well-balanced revenue composition, overall fair credit metrics for its ratings category and evolving corporate governance practices are viewed as positive considerations. On the other hand, Moody's see current liquidity levels as narrow, with a significant amount of debt maturing over the next three years. This concern is partially mitigated by the nature of the maturing credit lines, largely equipment financing, and by Mega Energia's manageable and flexible capex given the short term profile of its investment cycle. In 2013, Mega Energia acquired Transreta, a leading provider of crane rental in Rio de Janeiro. The acquisition increased the company's size and reduced the risk of margin volatility inherent to operating with low diversity in a small scale, but also introduced integration and execution risks. Accordingly, a key credit challenge for Mega Energia is to implement its growth strategy through acquisitions without jeopardizing current credit metrics. In September 2013, Mega Energia issued BRL 70 million in debentures in the Brazilian local market, and its proceeds were largely used to reduce the debt outstanding at Transreta. The debentures will be amortized in monthly installments starting May 2015 and have final maturity in September 2018. The issuance improved Mega Energia's liquidity profile and significantly reduced the company's funding cost and exposure to FX-linked debt. However, the company still has a narrow liquidity position relative to its short term obligations, although Moody's acknowledge that a significant amount of these debt obligations should be rolled over under the BNDES/Finame loan program (Brazilian Development Bank's dedicated equipment financing line). The debentures were rated one notch below Mega Energia's CFR given the high amount of secured debt in the company's capital structure (about 55% of total reported debt as of December 2013). For this reason, the debentures are seen as structurally subordinated to the secured debt and, therefore, as having a lower principal recovery prospect in the event of distress. The stable outlook reflects our expectations that Mega Energia will prudently manage acquisitions, capex and dividend distribution going forward to preserve its liquidity profile, while benefiting from the favorable fundamentals of the equipment rental industry in Brazil. The ratings could be upgraded if Mega Energia is able to grow in terms of revenues to a size that reduces risks related to downturns in each of its operational segments. Also, an upgrade would require the maintenance of adequate liquidity as the company pursue acquisitions in the fragmented rental market in Brazil, and that these acquisitions do not bring material change in the company's credit metrics. Additionally, the ratings could be upgraded if the company is able to maintain its interest coverage as measured by Adjusted EBITDA to interest expense (considering Moody's standard accounting adjustments, which do not exclude non- recurring items in 2012 that will no longer impact Ebitda metrics in 2013) at levels above 3.5x (3.0 times at the end of 2012) and if Adjusted Retained Cash Flow to debt remains above 20% (19.8% at the end of 2012) on a sustained basis. Downward pressure on the ratings would arise from a deterioration in the company's liquidity position coming from sizeable acquisitions or large shareholder distributions. A slowdown in the heavy and civil construction industries, or in any other key markets for Mega Energia, which results in margin deterioration, could also prompt a negative rating action. Quantitatively, the ratings would be downgraded if the company's leverage, measured by Adjusted Debt to Ebitda increases above 4.0x (2.4 times at the end of 2012) or if interest coverage (as measured by Adjusted Ebitda to Interest Expense) declines to levels below 2.0x (3.0 times at the end of 2012) without prospects of recovery. The principal methodology used in rating Mega Energia was the Global Equipment and Automobile Rental Industry published in December 2010. Headquartered in Rio de Janeiro, Brazil, Mega Energia is a local provider of equipment rental, including crane, heavy vehicles, natural gas compressors and energy generators. The company operates mainly in the city of Rio de Janeiro (Baa2, stable), where it generates approximately 64% of revenues, and in the North and Northeast regions of Brazil (31% and 5% of revenues, respectively). In 2012, Mega Energia reported net revenues of BRL 112 million and adjusted Ebitda margin of 32%. MMX MINERACAO: Completes Porto Sudeste Sale to Trafigura-Mubadala ----------------------------------------------------------------- Juan Pablo Spinetto at Bloomberg News reports that Eike Batista's MMX Mineracao & Metalicos SA mining unit completed the sale of a controlling stake in its Sudeste iron-ore port to Trafigura Beheer BV and Mubadala Development Co. for $400 million. The two buyers also assumed about BRL1.3 billion (US$553 million) in debt to gain 65 percent of the Sudeste terminal, according to a statement, notes the report. MMX will retain a 35 percent share in the terminal. Bloomberg News notes that the companies have been negotiating the sale for more than five months since MMX announced a preliminary agreement on Sept. 10. The deal will provide Amsterdam-based Trafigura and Abu Dhabi's sovereign wealth fund Mubadala with an export platform in Rio state's Itaguai port for iron ore mined in landlocked Minas Gerais state and bound for Asia and Europe, Bloomberg News says. Bloomberg News discloses that Mr. Batista has been selling stakes in his oil, logistics, utility and shipping ventures since May as missed targets, mounting debt and accumulating losses forced him to cancel projects and divest assets. With the expected deal, the report relays, Trafigura and Mubadala are the latest international investors to grab assets from the former Rio-based billionaire after Germany's EON SE, EIG Global Energy Partners LLC and Acron AG also acquired pieces of Mr. Batista's conglomerate. MMX Mineracao e Metalicos S.A., together with its subsidiaries, engages in the extraction, processing, research, and development of minerals; and sale of iron ore in Brazil. ========================== C A Y M A N I S L A N D S ========================== DISTACOM COMMUNICATIONS: Commences Liquidation Proceedings ---------------------------------------------------------- On Jan. 17, 2014, the members of Distacom Communications (Cayman) Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidators are: Lau Wai Ming Raymond Lam Suk Kam c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands FORETREND INVESTMENTS: Members Receive Wind-Up Report ----------------------------------------------------- The members of Foretrend Investments Ltd. received on Jan. 30, 2014, 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 FRIDAY INTERNATIONAL: Creditors' Proofs of Debt Due March 4 ----------------------------------------------------------- The creditors of Friday International Corporation are required to file their proofs of debt by March 4, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 31, 2013. The company's liquidator is: H&J Corporate Services (Cayman) Limited c/o Inga Thompson Telephone: (345) 914 4618 Anderson Square Building, 5th Floor Shedden Road P.O. Box 866 Grand Cayman KY1-1103 Cayman Islands GLOBAL TECH: Creditors' Proofs of Debt Due March 4 -------------------------------------------------- The creditors of Global Tech Co., Ltd. are required to file their proofs of debt by March 4, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 10, 2014. The company's liquidator is: Sun, Dai-Yun 5th Floor, No. 48, Wuquan Rd. Wugu Dist., New Taipei City 248 Taiwan, (R.O.C.) Telephone: +886 2 2299 1558 Facsimile: +886 2 2299 3767 Wugu Dist., New Taipei City 248 Taiwan, (R.O.C.) MYRIAGON SPECIAL: Creditors' Proofs of Debt Due March 13 -------------------------------------------------------- The creditors of Myriagon Special Situations are required to file their proofs of debt by March 13, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 13, 2014. The company's liquidator is: Transcontinental Fund Administration c/o Claudia Woerheide Telephone: (345) 949-5013 Facsimile: (345) 946-4654 Governors Square, Office Suite 4-213-6 23 Lime Tree Bay Ave., West Bay Grand Cayman Cayman Islands OMV ANAGUID: Commences Liquidation Proceedings ---------------------------------------------- On Jan. 16, 2014, the shareholders of OMV Anaguid Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Sebastian Schleicher c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands OMV SOUTH: Commences Liquidation Proceedings -------------------------------------------- On Jan. 16, 2014, the shareholders of OMV South Tunisia Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Sebastian Schleicher c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands PALO ALTO: Creditors' Proofs of Debt Due March 12 ------------------------------------------------- The creditors of Palo Alto Technology Offshore Ltd. are required to file their proofs of debt by March 12, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Jan. 22, 2014. The company's liquidator is: DMS Corporate Services Ltd. c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands PALO ALTO MASTER: Creditors' Proofs of Debt Due March 12 -------------------------------------------------------- The creditors of Palo Alto Technology Master Fund, L.P are required to file their proofs of debt by March 12, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Jan. 10, 2014. The company's liquidator is: DMS Corporate Services Ltd. c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands PLAINFIELD 2008: Creditors' Proofs of Debt Due March 13 ------------------------------------------------------- The creditors of Plainfield 2008 Liquidating Limited are required to file their proofs of debt by March 13, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Dec. 31, 2013. The company's liquidators are: David A.K. Walker c/o Adam Keenan Telephone: (345) 949 8743 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands PLAINFIELD 2009: Commences Liquidation Proceedings -------------------------------------------------- On Dec. 31, 2013, the sole shareholder of Plainfield 2009 Liquidating Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 10, 2014, will be included in the company's dividend distribution. The company's liquidator is: David A.K. Walker c/o Adam Keenan Telephone: (345) 949 8743 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands PLAINFIELD SPECIAL: Creditors' Proofs of Debt Due March 13 ---------------------------------------------------------- The creditors of Plainfield Special Situations Master Fund Limited are required to file their proofs of debt by March 13, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Dec. 31, 2013. The company's liquidator is: David A.K. Walker c/o Adam Keenan Telephone: (345) 949 8743 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands PRATA INVESTMENT: Creditors' Proofs of Debt Due March 4 ------------------------------------------------------- The creditors of Prata Investment Ltd. are required to file their proofs of debt by March 4, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 31, 2013. The company's liquidator is: H&J Corporate Services (Cayman) Limited c/o Inga Thompson Telephone: (345) 914 4618 Anderson Square Building, 5th Floor Shedden Road P.O. Box 866 Grand Cayman KY1-1103 Cayman Islands SLJ MACRO: Creditors' Proofs of Debt Due March 3 ------------------------------------------------ The creditors of SLJ Macro Fund are required to file their proofs of debt by March 3, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Dec. 27, 2013. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands SLJ MACRO MASTER: Creditors' Proofs of Debt Due March 3 ------------------------------------------------------- The creditors of SLJ Macro Master Fund are required to file their proofs of debt by March 3, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Dec. 27, 2013. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands VOTO-VOTORANTIM: Commences Liquidation Proceedings -------------------------------------------------- On Dec. 31, 2013, the shareholder of Voto-Votorantim Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Joao Miranda c/o Votorantim Participacoes S.A. Rua Amauri 255, 13 Andar, Sao Paolo SP - CEP 01448-000 Brazil Telephone: +1 (345) 914 6365 VOTO-VOTORANTIM III: Commences Liquidation Proceedings ------------------------------------------------------ On Dec. 31, 2013, the shareholder of Voto-Votorantim Overseas Trading Operations III Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Joao Miranda c/o Votorantim Participacoes S.A. Rua Amauri 255, 13 Andar, Sao Paolo SP - CEP 01448-000 Brazil Telephone: +1 (345) 914 6365 VOTO-VOTORANTIM V: Commences Liquidation Proceedings ---------------------------------------------------- On Dec. 31, 2013, the shareholder of Voto-Votorantim Overseas Trading Operations V Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Joao Miranda c/o Votorantim Participacoes S.A. Rua Amauri 255, 13 Andar, Sao Paolo SP - CEP 01448-000 Brazil Telephone: +1 (345) 914 6365 XRAY FUND: Creditors' Proofs of Debt Due March 12 ------------------------------------------------- The creditors of Xray Fund are required to file their proofs of debt by March 12, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Jan. 20, 2014. The company's liquidator is: DMS Corporate Services Ltd. c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== XSTRATA PLC: Official Says 'Yes, but' to Planned Mine ----------------------------------------------------- Dominican Today reports that Presidency Administrative Minister Jose Ramon Peralta said he supports "responsible mining" at Loma Miranda (central), but only if it isn't done in that manner, otherwise "it will do more damage than good." When asked if President Danilo Medina will refer to Xstrata Nickel's controversial mining project in his State of the Nation speech that was set for Feb. 27, the official said he doesn't know, according to Dominican Today. "If the conditions are there to exploit it responsibly, it should be because God put those minerals there to exploit . . . If you're going to get wealth for our country and we're going to protect the environment, it should be exploited," the report quoted Mr. Peralta as saying. As reported in the Troubled Company Reporter-Latin America on Jan. 22, 2014, Dominican Today said that Chief Executive Officer of Xstrata PLC's Falcondo reiterated that the company's presence in the country depends on a long term mining, with cheap electricity available, to produce and compete in world markets. Mr. Soares said they pin their hopes of extracting nickel at the controversial site of Loma Miranda, between La Vega and Bonao (central), for which they expect to get the mining permit, according to Dominican Today. But environmental and civil society groups could keep them from carrying out the project, after the Chamber of Deputies agreed with the protesters and passed a bill which declares Loma Miranda a protected area, arguing that much of the Cibao region's (north) water depends on it, the report related. Xstrata PLC is the operator of Falconbridge Dominicana, C. por A. ("Falcondo") with an 85.26% ownership. Falcondo is a ferronickel surface mining operation located in the Dominican Republic with operations dating since 1971. Headquartered in Zug, Switzerland, Xstrata PLC is a major producer of coal, copper, nickel, primary vanadium and zinc and the largest producer of ferrochrome. =============================== T R I N I D A D & T O B A G O =============================== PETROTRIN: La Brea Beaches to be Cleaned ---------------------------------------- Trinidad Express reports that Petroleum Company of Trinidad and Tobago has assured residents of La Brea, that the areas affected by the recent oil spills are being monitored daily. The report relates that the company stated that any residual oil contaminated debris, will be removed from the coastline. Petrotrin was responding to claims by residents that oil had resurfaced at the Carrat Shed beach facility, according to Trinidad Express. "Petrotrin's response to the recent oil spill can be divided into three overlapping phases: containment and recovery; remediation and rehabilitation; and surveillance and monitoring," the company stated, the report notes. Trinidad Express was told that most of the significant activities in the first phase were completed in January and the company had moved into the other phases. Petrotrin's personnel have been stationed in the area to monitor daily activities and the company's makeshift medical facility remains at the La Brea Community Centre to provide treatment for residents, Trinidad Express says. Trinidad Express relates that Alvin La Borde, president of the La Brea Fisherfolk Association, said residents were concerned that the beaches were not safe for bathing. Mr. La Borde, the report notes, said the signs preventing people from bathing and fishing in the waters off the Gulf of Paria were removed. Mr. La Borde said fishermen have not yet been given the all-clear to return to the sea, the report discloses. Mr. La Borde said fishermen were waiting on the green light from the Environmental Management Authority (EMA), the report adds. About Petrotrin Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2013, Trinidad Express reports that production levels at Petroleum Company of Trinidad and Tobago (Petrotrin)'s Trinmar operations in Point Fortin have been affected by industrial action involving employees of the company's marine transport contractors. Petrotrin stated that it was informed of a what it described as a stand-off between its marine contractors and their employees, who cited issues, including their current rates of remuneration, according to Trinidad Express. *********** 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. 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, and Peter A. Chapman, Editors. Copyright 2014. 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 * * *