/raid1/www/Hosts/bankrupt/TCRLA_Public/140402.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
Wednesday, April 2, 2014, Vol. 15, No. 65
Headlines
A R G E N T I N A
ARGENTINA: Bonds Rally as Government Analyzes Financing Proposals
EDENOR SA: Reports ARS772.7 Million Profit in 2013
SCHRODER PESOS: Moody's Assigns B-bf Global Scale Bond Fund Rating
B R A Z I L
JBS SA: Raises US$750 Million From Overseas Bonds Issue
JBS SA: S&P Assigns 'BB' Rating to Unit's 10-Yr. Sr. Unsec. Notes
REDE D'OR SAO: S&P Affirms 'BB-' CCR; Outlook Stable
C A Y M A N I S L A N D S
GOLDEN EAGLE: Shareholder Receives Wind-Up Report
LDK SOLAR: NYSE to Delist American Depositary Shares
MAPLE LEAF 7: Shareholders' Final Meeting Set for June 6
MAPLE LEAF 8: Shareholders' Final Meeting Set for June 6
MAPLE LEAF 9: Shareholders' Final Meeting Set for June 6
MAPLE LEAF 10: Shareholders' Final Meeting Set for June 6
MAPLE LEAF 11: Shareholders' Final Meeting Set for June 6
MAPLE LEAF 12: Shareholders' Final Meeting Set for June 6
MAPLE LEAF 13: Shareholders' Final Meeting Set for June 6
MAPLE LEAF 14: Shareholders' Final Meeting Set for June 6
SWAN ABSOLUTE: Shareholder Receives Wind-Up Report
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Drought Cause for Concern, Expert Says
H A I T I
HAITI: IMF Completes 7th Review; OKs US$2.5MM Disbursement
M E X I C O
CORPORACION GEO: Moody's Cuts Sr. Unsecured Notes Rating to C.mx
CORPORACION GEO: Moody's Lowers Sr. Unsecured Debt Rating to C
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Bonds Rally as Government Analyzes Financing Proposals
-----------------------------------------------------------------
Daniel Cancel at Bloomberg News reports that the Argentina
government said it has received financing proposals from
international investment banks as the nation's reserves stand at a
seven-year low.
The Economy Ministry said that while no debt agreement has been
reached with investment banks, there have been different
proposals, according to Bloomberg News. Argentina, which hasn't
sold debt abroad since a record US$95 billion default in 2001, is
close to receiving a two-year US$1 billion loan from Goldman Sachs
Group Inc. at a rate of 6.5 percent, newspaper Pagina/12 reported,
Bloomberg News notes.
The fresh financing proposals along with other measures to
normalize foreign creditor relations are driving the rally, Julian
Adams, the chief executive officer of Adelante Asset Management
Ltd. in London, said, Bloomberg News relates.
The series of measures to resolve a foreign creditor relation has
"set the market on fire," Bloomberg News quoted Mr. Adams, who
invests in Argentine government debt, as saying. "There's a road
map for the government to sort out its debt problems," Mr. Adams
said, Bloomberg News notes.
Since October, Argentina has settled disputes at the World Bank's
arbitration tribunal, overhauled economic data reporting after
being censured by the International Monetary Fund, agreed to
compensate Repsol SA for the seizure of its 51 percent stake in
YPF SA and made a proposal to the Paris Club to settle its
outstanding debt, Bloomberg News says.
Holdout Creditors
Bloomberg News discloses that the last major hurdle to repairing
relations with foreign creditors is the nation's battle with hedge
funds trying to cash in defaulted debt. Argentina is appealing a
lower court ruling to the U.S. Supreme Court ordering the
government to pay holdouts US$1.5 billion at the same time
restructured debt is serviced, Bloomberg News relates.
About 93 percent of investors accepted losses of about 70 percent
in debt restructurings in 2005 and 2010, notes the report.
The market is also more optimistic on a negotiated outcome with
holdout creditors suing in U.S. courts, which may involve
investment banks mediating, Mr. Adams said, Bloomberg News relays.
YPF Sale
President Cristina Fernandez de Kirchner, whose second term
concludes at the end of 2015, changed her economic team in
November and oversaw the largest devaluation of the peso in
January since 2002 in an attempt to shore up finances, Bloomberg
News recalls. The government will slash subsidies on gas and
water by about 20 percent starting April 2, Bloomberg News notes.
The government posted the largest fiscal deficit and current-
account deficit in more than a decade in 2013 while reserves fell
more than US$12 billion, Bloomberg News says. According to
preliminary gross domestic product data, the government won't make
a US$3 billion payment to holders of warrants tied to growth this
year, freeing up more funds to service its foreign debt, Bloomberg
News relays.
The central bank will add as much as US$1 billion in reserves when
state-run energy company YPF sells debt abroad this week, Mr.
Adams said, Bloomberg News adds.
EDENOR SA: Reports ARS772.7 Million Profit in 2013
--------------------------------------------------
Edenor SA reported profit of ARS 772.7 million on ARS 3.44 billion
of revenue from sales for the year ended Dec. 31, 2013, as
compared with a loss of ARS 1.01 billion on ARS 2.97 billion of
revenue from sales in 2012. Edenor reported a net loss of
ARS 291.38 million in 2011.
Net Loss decreased ARS 370.2 million to a loss of ARS 19.3 million
in the fourth quarter of 2013 from a loss of ARS 389.5 million in
the same period of 2012, mainly due to the partial recognition of
CMM increases pursuant to Note 6852/13 of ARS 723.6 million and
positive interests of ARS 24.6 million and a gain accounted for
Aeseba s Sale Trust repurchase of Edenor Notes due 2017 and 2022
of ARS 23.2 million, partially offset by the increase in costs
described above, exchange differences of ARS 92.2 million,
commercial interests accrued to CAMMESA of ARS 34.2 million and
ARS 61.8 million in income tax loss.
As of Dec. 31, 2013, the Company had ARS 7.25 billion in total
assets, ARS 6.08 billion in total liabilities and ARS 1.17 billion
in total equity.
A copy of the Form 6-K report is available for free at:
http://is.gd/5tA9JC
About Edenor SA
Headquartered in Buenos Aires, Argentina, Edenor S.A. (NYSE: EDN;
Buenos Aires Stock Exchange: EDN) is the largest electricity
distribution company in Argentina in terms of number of customers
and electricity sold (both in GWh and Pesos). Through a
concession, Edenor distributes electricity exclusively to the
northwestern zone of the greater Buenos Aires metropolitan area
and the northern part of the city of Buenos Aires.
SCHRODER PESOS: Moody's Assigns B-bf Global Scale Bond Fund Rating
------------------------------------------------------------------
Moody's Latin America has assigned bond fund ratings to Schroder
Pesos (the Fund), a new short term bond fund domiciled in
Argentina that will be managed by Schroder SA SGFCI.
The ratings assigned are as follows:
Global scale bond fund rating: B-bf
National scale bond fund rating: Aa-bf.ar
Ratings Rationale
The fund ratings are based on Moody's expectation that Schroder
Pesos, a local time deposit fund, will invest mainly in time
deposits and callable time deposits in local currency, with the
balance held in a central bank account and sight deposits in
relatively strong local financial entities with an average
portfolio duration not exceeding 90 days.
Moody's noted that this is a new fund and hence has no track
record. The fund analysis is based on a pro-forma portfolio
received from the fund manager. The Fund is expected to be
launched within the next weeks.
"Based on the Fund's pro-forma portfolio, the Fund's credit
quality profile is comparable to those of similarly rated peers",
said Moody's lead analyst Carlos de Nevares.
This Fund's objective is to serve as a cash fund for institutional
investors, and has selected the local subsidiary of Deustche Bank
to be the security custodian bank.
The principal methodology used in this rating was the "Moody's
Bond Fund Rating Methodology" published in May 2013.
SCHRODER SA SGFCI is a large asset manager in the Argentinean
mutual fund Industry, with a market share of approximately 7% of
industrywide assets under management as of February 28, 2014. As
of February 2014, SCHRODER SA SGFCI, managed approximately AR$5.7
billion in Assets under Management (AUM).
===========
B R A Z I L
===========
JBS SA: Raises US$750 Million From Overseas Bonds Issue
-------------------------------------------------------
Rogerio Jelmayer at Bloomberg News reports that JBS SA raised
US$750 million from an overseas bonds issue, underlining the
interest of international investors in Brazilian assets in recent
weeks.
JBS issued the bonds via its subsidiary JBS Investments GmbH and
they will mature in 2024. The bonds carried an annual coupon of
7.25% and they reached a demand of six times of the total offer,
according to Bloomberg News.
The company will use the proceeds to pay short term debts, it said
in a statement, Bloomberg News relates.
The bond sale came amid improved investor sentiment toward
emerging-market assets in recent weeks, Bloomberg News says.
Last week, Bloomberg News notes, the Brazilian government borrowed
EUR1 billion from overseas investors, just a few days after
Standard & Poor's downgraded the rating of Latin America's largest
economy. Then, the country sold the seven-year bonds at 99.464%
of face value, to yield 2.961%. The bonds pay a coupon of 2.875%,
Bloomberg News discloses.
JBS SA is a multinational food processing company, producing
factory processed beef, chicken and pork, and also selling by-
products from the processing of these meats. It is headquartered
in Sao Paulo. It was founded in 1953 in Anapolis, Goias. The
company has 150 industrial plants around the world.
* * *
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.
JBS SA: S&P Assigns 'BB' Rating to Unit's 10-Yr. Sr. Unsec. Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' rating to JBS
Investments GmbH's proposed 10-year senior unsecured notes. The
rating on the issue reflects the credit quality of JBS
Investments' parent company, JBS S.A. (JBS; BB/Stable/--), as JBS
and its wholly-owned subsidiary, JBS Hungary Holdings Kft (the
holding company of JBS USA LLC), unconditionally guarantee the
notes.
S&P believes JBS will gradually lower the more expensive debt-
through lower interest payments and extended debt maturity
profile--that was transferred from Marfrig Alimentos S.A.
following JBS' acquisition of the poultry operation, Seara
Alimentos S.A. Therefore, S&P expects JBS to maintain its
"adequate" liquidity with cash position of R$9 billion as of
Dec. 31, 2013, to cover short-term maturities and somewhat higher
working capital needs to integrate Seara's operations and ramp up
the recently leased beef plants in Brazil.
S&P also expects JBS to pay down some secured debt that came with
Seara's acquisition. The rating on JBS Investments' notes is the
same as the ones on JBS' debt, as total guaranteed debt is less
than 15% of the assets.
RATINGS LIST
JBS S.A.
Corporate credit rating BB/Stable/--
Rating Assigned
JBS Investments GmbH
10-year senior unsecured notes BB
REDE D'OR SAO: S&P Affirms 'BB-' CCR; Outlook Stable
----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' global scale
corporate credit ratings on Rede D'Or Sao Luiz S.A. (Rede D'Or)
and raised the national scale corporate credit and debt ratings to
'brA' from 'brA-'. The outlook on both scales is stable.
"The ratings on Rede D'Or reflect our assessment of its "fair"
business risk profile and "aggressive" financial risk profile.
Our business risk profile is based on our assessment of the
company's "fair" competitive position, reflecting its leading
position among private hospital companies in Brazil, which results
in a satisfactory bargaining power with suppliers and insurers,
offset by its somewhat limited geographic diversification, with
assets and revenues concentrated only in four Brazilian states.
Nevertheless, these states represent a large portion of Brazil's
GDP and show positive demand growth prospects. Rede D'Or is not
exposed to government reimbursement risks, but has some revenue
concentration in large private insurers. Our business risk
assessment also incorporates our view of the health care services
industry's "intermediate" risk and "moderately high" country risk,
as Rede D'Or only operates in Brazil. The company's stronger
profitability and credit metrics are the main drivers for the
upgrade," S&P said.
==========================
C A Y M A N I S L A N D S
==========================
GOLDEN EAGLE: Shareholder Receives Wind-Up Report
-------------------------------------------------
The shareholder of Golden Eagle Portfolio Ltd. received on
March 14, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
LDK SOLAR: NYSE to Delist American Depositary Shares
----------------------------------------------------
Michael Calia, writing for The Wall Street Journal, reported that
the New York Stock Exchange said it would delist American
depositary shares of LDK Solar Co., immediately suspending their
trading.
According to the report, the NYSE said it has determined that LDK
is no longer suitable for listing on the exchange because of
"abnormally low" price indications for the ADSs, which traded
under $1 last week.
The move comes after the exchange said it would continue to review
LDK's listing status following the company's announcement of a
restructuring and financing agreement, the report related.
The China-based producer of solar wafers, which has been
struggling with a hefty debt load, had said it had approval from
the majority of the holders of its shares and debt to back its
restructuring efforts with liquidators in the Cayman Islands, the
report further related.
The NYSE cited the uncertainty of the timing and outcome of the
liquidation process, as well as its ultimate impact on
shareholders, as one of its reasons for deciding to delist the
company, the report said.
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-
Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
LDK Solar Co disclosed a net loss of $1.05 billion on $862.88
million of net sales for the year ended Dec. 31, 2012, as compared
with a net loss of $608.95 million on $2.15 billion of net sales
for the year ended Dec. 31, 2011.
KPMG, in Hong Kong, China, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2012. The independent auditors noted that the Group has
a net working capital deficit and a deficit in total equity as of
Dec. 31, 2012, and is restricted from incurring additional
indebtedness as it has not met a financial covenant ratio as
defined in the indenture governing the RMB-denominated US$-settled
senior notes. These conditions raise substantial doubt about the
Group's ability to continue as a going concern.
MAPLE LEAF 7: Shareholders' Final Meeting Set for June 6
--------------------------------------------------------
The shareholders of Maple Leaf Leasing 7 Limited will hold their
final meeting on June 6, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
MAPLE LEAF 8: Shareholders' Final Meeting Set for June 6
--------------------------------------------------------
The shareholders of Maple Leaf Leasing 8 Limited will hold their
final meeting on June 6, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
MAPLE LEAF 9: Shareholders' Final Meeting Set for June 6
--------------------------------------------------------
The shareholders of Maple Leaf Leasing 9 Limited will hold their
final meeting on June 6, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
MAPLE LEAF 10: Shareholders' Final Meeting Set for June 6
---------------------------------------------------------
The shareholders of Maple Leaf Finance 10 Limited will hold their
final meeting on June 6, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
MAPLE LEAF 11: Shareholders' Final Meeting Set for June 6
---------------------------------------------------------
The shareholders of Maple Leaf Leasing 11 Limited will hold their
final meeting on June 6, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
MAPLE LEAF 12: Shareholders' Final Meeting Set for June 6
---------------------------------------------------------
The shareholders of Maple Leaf Finance 12 Limited will hold their
final meeting on June 6, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
MAPLE LEAF 13: Shareholders' Final Meeting Set for June 6
---------------------------------------------------------
The shareholders of Maple Leaf Leasing 13 Limited will hold their
final meeting on June 6, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
MAPLE LEAF 14: Shareholders' Final Meeting Set for June 6
---------------------------------------------------------
The shareholders of Maple Leaf Finance 14 Limited will hold their
final meeting on June 6, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
SWAN ABSOLUTE: Shareholder Receives Wind-Up Report
--------------------------------------------------
The shareholder of Swan Absolute Return Fund Limited received on
March 17, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Consuelo Nardon
Telephone: +31 88 146 0100
c/o Arcari Fund Solutions BV
Suikersilo-Oost 21
1165 MS Halfweg
The Netherlands
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Drought Cause for Concern, Expert Says
------------------------------------------------------------
Dominican Today reports that the drought parching part of the
territory since November will continue through the coming months,
from a high pressure system which continues influencing the
country.
National Office Meteorology (Onamet) lead forecaster Felix
Rodriguez said the frontal systems which enter the Atlantic Ocean
from the U.S., which unleash rainfall over the slope north of the
Central Mountains, have been mostly absent, affecting mainly the
Northwest and northern coast, according to Dominican Today.
"What has happened is that in the frontal period, which ranges
from November to April, when should've rained in that area of the
Northwest, from the frontal systems, didn't fall. Then what is
expected is that this drought continue expanding," Dominican Today
quoted the forecaster as saying.
The report notes that the expert, quoted by elcaribe.com.do, added
that from November to April the rains have been falling where the
seasonal drought should've been, over the Caribbean coastal plain,
"for the simple reason that the frontal systems have been moving
little, and then this anticyclone has surged quite strongly."
=========
H A I T I
=========
HAITI: IMF Completes 7th Review; OKs US$2.5MM Disbursement
----------------------------------------------------------
On March 26, the Executive Board of the International Monetary
Fund (IMF) completed the seventh review of Haiti's performance
under its program supported by the Extended Credit Facility (ECF)
arrangement. Completion of the review will enable an immediate
disbursement equivalent to SDR 1.638 million (about US$2.5
million), bringing total disbursements under the program to date
to the equivalent of SDR 39.312 million (about US$60.7 million).
The Executive Board also approved requests for waivers of
nonobservance of the continuous performance criterion on the
contracting or guaranteeing of short-term non-concessional
external debt and approved modifications to end-March performance
criteria.
Haiti's ECF arrangement was approved on July 21, 2010 together
with the full relief of the country's outstanding debt to the Fund
of about SDR 178 million (equivalent then to US$268 million).
Following the Executive Board's discussion on Haiti, Mr. Naoyuki
Shinohara, Deputy Managing Director and Acting Chair, said:
"Haiti's performance under the Fund-supported program has been
satisfactory despite difficult circumstances. Reform measures and
policies put in place have helped maintain macroeconomic stability
and advance structural reforms. Growth has strengthened, headline
inflation fell, and gross international reserves remained
adequate. However, the overall fiscal deficit widened, reflecting
larger-than-programmed investment spending and subsidies to the
electricity sector. Progress was also made on reforming public
financial management, in particular in the implementation of the
Treasury Single Account.
"The program for FY2014 aims at consolidating macroeconomic
stability and sustaining progress in structural reforms. These
objectives will be supported by continued prudent monetary policy,
the stabilization of the overall fiscal balance, and the
continuation of structural reforms in the areas of public
financial management, international reserve management, and the
electricity sector. Advancing these reforms is essential to
contain fiscal risks and address continuing vulnerabilities.
"The authorities have adopted a medium-term poverty reduction
strategy, with special emphasis on job creation in manufacturing,
tourism and agriculture, social inclusion, and improved
governance. This would contribute to the establishment of an
environment conducive to economic growth and to reducing Haiti's
dependence on foreign assistance."
===========
M E X I C O
===========
CORPORACION GEO: Moody's Cuts Sr. Unsecured Notes Rating to C.mx
----------------------------------------------------------------
Moody's de Mexico downgraded Corporacion GEO, S.A.B de C.V's
(GEO)'s ratings to C.mx from Ca.mx as a result of GEO's filing of
a judicial recovery request. This concludes the rating review
which began on April 26, 2013.
The following ratings were downgraded:
MXN400M Certificados Bursatiles (GEO 11) due 07/18/2014,
Downgraded to C.mx from Ca.mx
Senior Unsecured Medium-Term Note Program, Downgraded to C.mx
from Ca.mx
Long Term Issuer Rating, Downgraded to C.mx from Ca.mx
Ratings Rationale
The rating downgrade follows the company's announcement on March
20, 2014 that it filed a judicial restructure request with a pre
packaged restructuring plan approved by the majority of its debt
holders under the Mexican law of Concursos Mercantiles.
GEO's C.mx ratings reflect Moody's expectation of weak recovery
for unsecured claims. Under Moody's recovery analyses, expected
recovery is below 35% on the unsecured notes.
In the restructure plan documents, GEO recognizes MXN 28.2 billion
claims as of July 2013. The claims include MXN 9.3 billion related
with global unsecured notes denominated in USD and MXN 400 million
under an unsecured certificado burs til (GEO 11). Other relevant
claims include MXN 3.4 billion bridge loans, MXN 860 unsecured
bank loans, MXN 4.8 billion related with supplier credits and MXN
4.7 billion under sale of receivable contracts.
The pre-packaged bankruptcy plan (PPB) considers that GEO's
unsecured creditors could either capitalize their claims so that
the existing equity of the company is allocated on a pre-new
equity basis as follows: (i) 88% to unsecured creditors; (ii) 8%
to existing shareholders; and (iii) 4% to existing management; or
convert their claims into a note option, under which they would
receive 10% of the exchanged claims upfront and, for the remainder
90%, in a 7 year bullet, 1% interest, note denominated and payable
in Mexican Pesos. Secured bank debt would be restructured in
specific negotiations with secured creditors.
Moody's notes that DIP financing provisions are now contemplated
under the new Concurso Mercantil law. In this sense, GEO is
planning to contract additional credit facilities with banks using
land as collateral, further increasing potential losses for
unsecured creditors. Although the PPB approval is still pending
and several milestones still need to be achieved, Moody's
considers that it reflects the high expected loss unsecured
creditors could face.
Subsequent to the rating actions, Moody's will withdraw all the
ratings of GEO because of its judicial restructure request. For
more information, please refer to Moody's Withdrawal Policy on
moodys.com.mx
Corporacion GEO, S.A.B. de C.V., based in Mexico City, Mexico, is
a homebuilding company engaged in the development, construction,
marketing and sale of affordable housing developments in Mexico.
The principal methodology used in this rating was Global
Homebuilding Industry published in March 2009.
The period of time covered in the financial information used to
determine Corporacion GEO, S.A.B. DE C.V.'s rating is between
1/1/09 and 31/3/13 (source: Bolsa Mexicana de Valores and
Corporacion GEO, S.A.B. de C.V.)
Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for M'xico. For further information on Moody's approach to
national scale ratings, please refer to Moody's Rating Methodology
published in October 2012 entitled "Mapping Moody's National Scale
Ratings to Global Scale Ratings".
CORPORACION GEO: Moody's Lowers Sr. Unsecured Debt Rating to C
--------------------------------------------------------------
Moody's Investors Service downgraded Corporacion GEO, S.A.B de
C.V's (GEO)'s global scale foreign currency senior unsecured debt
rating to C from Ca as a result of GEO's filing of a judicial
recovery request. This concludes the rating review which began on
April 26, 2013.
The following ratings were downgraded:
Long Term Issuer Rating, Downgraded to C from Ca
US$400M 8.875% Gtd. Global Notes due 03/27/2022, Downgraded to C
from Ca
US$54.16M 8.875% Gtd. Global Notes due 09/25/2014, Downgraded to
C from Ca
US$250M 9.25% Gtd. Global Notes due 06/30/2020, Downgraded to C
from Ca
MXN400M Certificados Bursatiles (GEO 11) due 07/18/2014,
Downgraded to C from Ca
Senior Unsecured Medium-Term Note Program, Downgraded to (P) C
from (P) Ca
Ratings Rationale
The rating downgrade follows the company's announcement on March
20, 2014 that it filed a judicial restructure request with a pre
packaged restructuring plan approved by the majority of its debt
holders under the Mexican law of Concursos Mercantiles.
GEO's C ratings reflect Moody's expectation of weak recovery for
unsecured claims. Under Moody's recovery analyses, expected
recovery is below 35% on the unsecured notes.
In the restructure plan documents, GEO recognizes MXN 28.2 billion
claims as of July 2013. The claims include MXN 9.3 billion related
with global unsecured notes denominated in USD and MXN 400 million
under an unsecured certificado burs til (GEO 11). Other relevant
claims include MXN 3.4 billion bridge loans, MXN 860 unsecured
bank loans, MXN 4.8 billion related with supplier credits and MXN
4.7 billion under sale of receivable contracts.
The pre-packaged bankruptcy plan (PPB) considers that GEO's
unsecured creditors could either capitalize their claims so that
the existing equity of the company is allocated on a pre-new
equity basis as follows: (i) 88% to unsecured creditors; (ii) 8%
to existing shareholders; and (iii) 4% to existing management; or
convert their claims into a note option, under which they would
receive 10% of the exchanged claims upfront and, for the remainder
90%, in a 7 year bullet, 1% interest, note denominated and payable
in Mexican Pesos. Secured bank debt would be restructured in
specific negotiations with secured creditors.
Moody's notes that DIP financing provisions are now contemplated
under the new Concurso Mercantil law. In this sense, GEO is
planning to contract additional credit facilities with banks using
land as collateral, further increasing potential losses for
unsecured creditors. Although the PPB approval is still pending
and several milestones still need to be achieved, Moody's
considers that it reflects the high expected loss unsecured
creditors could face.
Subsequent to the rating actions, Moody's will withdraw all the
ratings of GEO because of its judicial restructure request. For
more information, please refer to Moody's Withdrawal Policy on
moodys.com.
Corporacion GEO, S.A.B. de C.V., based in Mexico City, Mexico, is
a homebuilding company engaged in the development, construction,
marketing and sale of affordable housing developments in Mexico.
The principal methodology used in this rating was Global
Homebuilding Industry Methodology published in March 2009.
***********
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 * * *