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/raid1/www/Hosts/bankrupt/TCRLA_Public/140410.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 Thursday, April 10, 2014, Vol. 15, No. 71 Headlines B R A Z I L GOL LINHAS: Records Operating Margin of 3.0% in 2013 NAVIOS SOUTH AMERICAN: S&P Affirms B+ CCR & Rates $375MM Notes B+ C A Y M A N I S L A N D S ASIAN REAL: Shareholders' Final Meeting Set for April 16 CHATEAU ASSET: Court Appoints Sybersma & Derksen as Liquidators CONOCOPHILLIPS MENA: Shareholders' Final Meeting Set for April 23 HIGHLAND CREDIT: Shareholders' Final Meeting Set for April 15 HIGHLAND CREDIT MASTER: Shareholders' Meeting Set for April 15 PASSIONFRUIT TRADING II: Member to Hear Wind-Up Report on May 6 SCOTFO 4: Shareholders' Final Meeting Set for April 15 UTOPIA PARK: Shareholder to Hear Wind-Up Report on April 15 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Lawmakers Ramrod US$2.3BB in Bond, Debt EMPRESA GENERADORA: Fitch Affirms 'B' IDR; Outlook Stable J A M A I C A BANK OF JAMAICA: Seeks to Increase Foreign Currency Reserves M E X I C O DESARROLLADORA HOMEX: In Talks with Zell Over US$137MM Loan - - - - - =========== B R A Z I L =========== GOL LINHAS: Records Operating Margin of 3.0% in 2013 ---------------------------------------------------- GOL Linhas Aereas Inteligentes S.A. disclosed its results for the fourth quarter and full year of 2013. The fourth-quarter operating profit (EBIT) came to R$162.9 million, with an operating margin of 6%, representing the Company's highest level of operational profitability in the last 10 quarters. In the full year of 2013, EBIT totaled R$266.0 million with an operating margin of 3%, a 14.2 p.p. improvement over 2012. Net revenue totaled R$2,728.2 million in 4Q13, 29%, or R$609 million, up on 4Q12, fueled by the 19% upturn in yields and the 5.1 percentage points increase in the total load factor, which came to 74.8%. Annual net revenue reached the highest historical level for the Company, R$8,956.2 million, R$853 million, or 11%, up on 2012. GOL reduced its annual operating costs by R$319 million, underlining its commitment to adjusting its cost structure to a challenging macroeconomic scenario. Despite the 11% depreciation of the Real against the average Dollar, record jet fuel prices, and the 7.4% decline in domestic supply, CASK increased by just 0.9% in the quarter and 0.7% in the year. GOL recorded a net loss of R$19.3 million in 4Q13, an improvement of R$428 million compared to 4Q12, leading to an annual net loss of R$724.6 million. Part of this result was due to the foreign exchange variation, which generated an expense of R$490 million in 2013. GOL's cash position closed the year at a historical record R$3 billion, corresponding to 34% of annual net revenue. GOL Linhas Aereas Inteligentes S.A. is a low-cost and low-fare airline in Latin America, offers around 970 daily flights to 65 destinations in 10 countries in South America, Caribbean and the United States under the GOL and VARIG brands, using a young, modern fleet of Boeing. * * * As reported in the Troubled Company Reporter-Latin America on March 21, 2014, Fitch Ratings has affirmed the ratings of Gol Linhas Aereas Inteligentes S.A.'s Foreign and local currency long- term Issuer Default Ratings (IDRs) at 'B-'. NAVIOS SOUTH AMERICAN: S&P Affirms B+ CCR & Rates $375MM Notes B+ ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Navios South American Logistics Inc. (Navios Logistics), including its 'B+' corporate credit rating. At the same time, S&P assigned its 'B+' issue-level rating to the company's proposed $375 million, eight-year senior unsecured notes. The outlook remains stable. Navios Logistics' proposed $375 million senior unsecured notes has a bullet maturity in 2022. The company will use up to $290 million to repay in advance through a tender offer its existing 2019 notes and the remainder to reinforce its cash position and for general corporate purposes. S&P's assessment of Navios' "weak" business risk profile is mainly based on the company's still small scale and exposure to competition in the river business, specially through spot and one- year contracts. The offsetting factors, in S&P's view, are the company's favorable contracted position in its river, cabotage, and port logistics businesses, with clauses that guarantee minimum volumes and cost pass throughs. Due to these factors, S&P expects Navios Logistics to generate a relatively stable cash flow and EBITDA margins, offsetting some of the inherent risks in operating in the Parana River system (Hidrovia). The contract with Vale S.A. (A-/Negative/--) is long term and has several protective clauses, which will guarantee a stable and significant stream of cash to the company in the next few years. Despite some increase in debt after the proposed notes issue, S&P expects the company to maintain financial metrics in line with the "aggressive" category, while improving them for the next three years as Navios Logistics captures the full effects of its expansion plan. ========================== C A Y M A N I S L A N D S ========================== ASIAN REAL: Shareholders' Final Meeting Set for April 16 -------------------------------------------------------- The shareholders of Asian Real Estate Fund JP will hold their final meeting on April 16, 2014, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Masahiro Tsuchiya 9-15, Yotsuya 2-chome Shinjuku-ku, Tokyo Japan CHATEAU ASSET: Court Appoints Sybersma & Derksen as Liquidators --------------------------------------------------------------- On March 7, 2014, the Grand Court of the Cayman Islands appointed Stuart Sybersma and Timothy Derksen as liquidators of Chateau Asset Management SPC. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Stuart Sybersma c/o Olivier Peter Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue George Town KY1-1109 Cayman Islands Telephone: +1 (345) 814 3376 Facsimile: +1 (345) 949 8238 e-mail: olpeter@deloitte.com CONOCOPHILLIPS MENA: Shareholders' Final Meeting Set for April 23 ----------------------------------------------------------------- The shareholders of Conocophillips Mena Ltd. will hold their final meeting on April 23, 2014, at 10:00 a.m., to receive 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 Eva Moore Telephone: (345) 949 0880 Facsimile: (345) 949 0881 One Capital Place, 4th Floor P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands HIGHLAND CREDIT: Shareholders' Final Meeting Set for April 15 ------------------------------------------------------------- The shareholders of Highland Credit Opportunities CDO Asset Holdings, Ltd. will hold their final meeting on April 15, 2014, at 10:05 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited Barnaby Gowrie Telephone: +1 (345) 914 6365 HIGHLAND CREDIT MASTER: Shareholders' Meeting Set for April 15 -------------------------------------------------------------- The shareholders of Highland Credit Opportunities Master Assets Holdings, Ltd. will hold their final meeting on April 15, 2014, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited Barnaby Gowrie Telephone: +1 (345) 914 6365 PASSIONFRUIT TRADING II: Member to Hear Wind-Up Report on May 6 --------------------------------------------------------------- The sole member of Passionfruit Trading II (Cayman) Limited will receive on May 6, 2014, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Management Limited Craigmuir Chambers Road Town, Tortola British Virgin Islands SCOTFO 4: Shareholders' Final Meeting Set for April 15 ------------------------------------------------------ The shareholders of Scotfo 4 will hold their final meeting on April 15, 2014, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Markus Summer c/o Barnaby Gowrie Telephone: +1 (345) 914 6365 UTOPIA PARK: Shareholder to Hear Wind-Up Report on April 15 ----------------------------------------------------------- The shareholder of Utopia Park Ltd. will receive on April 15, 2014, at 9:00 a.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Jehangir Pocha Dubai International Financial Centre Gate Village 4, Level 5 P.O. Box 506807 Dubai, United Arab Emirates Telephone: +9714 358 6700 Facsimile: +9714 358 6900 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Lawmakers Ramrod US$2.3BB in Bond, Debt ----------------------------------------------------------- Dominican Today reports that Chamber of Deputies passed a bill to allow the government contract a RD$33.6 billion (US$785.7 million) debt and another to issue a US$1.5 billion bond. Both initiatives had been approved by the Senate on March 12. The US$1.5 billion bond was approved with 101 votes to 25 in the first roll call and 100 to 36 in the second, according to Dominican Today. However, the report notes that several opposition party deputies voiced harsh criticism, questioning the approval of the bills without even sending the proposed legislation to the Chamber Finance Committee for study and with no knowledge of their interest rates. EMPRESA GENERADORA: Fitch Affirms 'B' IDR; Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed Empresa Generadora de Electricidad Haina S.A.'s (Haina) foreign- and local-currency Issuer Default Ratings (IDRs) at 'B'. The Rating Outlook is Stable. Fitch has simultaneously withdrawn the ratings due to lack of market interest. Fitch maintains Haina's National Long Term Rating at 'A-(dom)' and the ratings of its local issuances of USD100 million senior unsecure notes due 2020 and USD50 million senior unsecure notes due 2016 at 'A-(dom)'. KEY RATING DRIVERS The affirmation reflects the high dependency of the electricity sector on transfers from the Dominican Republic central government to service its financial obligations, a condition that links the credit quality of the distribution (EDEs) and generation companies in the country to that of the sovereign. Low collections from end-users and high electricity losses have undermined distribution companies' cash generation capacity, exacerbating generation companies' dependence on public funds to cover the gap produced by insufficient payments received from distribution companies. Fitch expects the continuation of recent policy changes to allow EDEs to reach breakeven cash flow generation in the medium term. However, the last stand-by arrangement (SBA) with the International Monetary Fund (IMF) expired on Feb. 28, 2012, and the absence of a new agreement could potentially derail the modest progress achieved by the sector so far. Haina's ratings also consider its well-diversified generation portfolio, strong balance sheet and well-structured purchase power agreements (PPAs), which contribute to strong cash flow generation and bolster liquidity. ============= J A M A I C A ============= BANK OF JAMAICA: Seeks to Increase Foreign Currency Reserves ------------------------------------------------------------ RJR News reports that having surpassed its target Net International Reserves (NIR) at the end of March, the Bank of Jamaica is continuing its quest to build the stock of foreign reserves and has issued two new instruments to borrow U.S. dollars in the market. The first issue seeks to raise US$50 million, which will be repaid in the next six months at 3% interest rate, according to RJR News. The report relates that the second issue is for any amount investors are willing to lend the Central Bank. That is to be held for a year and will pay a variable interest rate above the applicable six month treasury bill yield, the report notes. Bank of Jamaica, the central bank of Jamaica, issues and redeems notes and coins. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 10, 2014, RJR News said that the Bank of Jamaica ended 2013 with nearly J$16 billion in losses. Its final balance sheet for the year dated December 24 shows year to date losses of J$15- point-9-2 billion, according to RJR News. =========== M E X I C O =========== DESARROLLADORA HOMEX: In Talks with Zell Over US$137MM Loan ----------------------------------------------------------- Brendan Case at Bloomberg News reports that Billionaire Sam Zell is in talks with Desarrolladora Homex SAB, the Mexican homebuilder that defaulted on its debt last year, for a loan of as much as MXN1.8 billion (US$137 million). Desarrolladora Homex would use the money from Zell Credit Opportunities Fund to build as many as 8,000 homes, the homebuilder said in a statement to the Mexican stock exchange, according to Bloomberg News. The financing would also include 300 million pesos for general corporate purposes, the company said, the report relates. Bloomberg News notes that Homex SAB posted a second-quarter 2013 loss that was more than its combined profit in the prior six years. The shares were suspended from trading after it failed to file a quarterly financial report before the stock exchange's deadline in February, Bloomberg News relates. The Culiacan, Mexico-based company and two other homebuilders defaulted on bonds last year as their cash dwindled following a government shift in the allocation of housing subsidies, Bloomberg News relays. About Desarrolladora Homex Desarrolladora Homex S.A.B. de C.V. (NYSE: HXM, BMV: HOMEX) -- http://www.homex.com.mx/-- is a vertically integrated home development company focused on affordable entry-level and middle- income housing in Mexico. It is one of the most geographically diverse homebuilders in the country. Homex is the largest homebuilder in Mexico, based on revenues, number of homes sold and net income. * * * As reported in the Troubled Company Reporter-Latin America on April 18, 2013, Fitch Ratings downgraded Desarrolladora Homex, S.A.B. de C.V.'s ratings as: -- Foreign currency Issuer Default Rating (IDR) to 'B' from 'BB-'; -- Local currency IDR to 'B' from 'BB-'; -- USD250 million in senior notes due 2015 to 'B/RR4' from 'BB-'; -- USD250 million in senior notes due 2019 to 'B/RR4' from 'BB-'; -- USD400 million in senior notes due 2020 to 'B/RR4' from 'BB-'. The ratings remain on Rating Watch Negative. *********** 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 * * *