/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130821.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, August 21, 2013, Vol. 14, No. 165 Headlines B O L I V I A * Bolivian Government's $500MM Bond Issue Gets Moody's Ba3 Rating B R A Z I L BROOKFIELD INCORPORACOES: Moody's Changes Outlook to Negative LLX LOGISTICA: BNDES Willing to Allow Debt Payment Delay OI SA: Plunges After Surprise Loss, Cuts Dividend Payment C A Y M A N I S L A N D S 5:15 TAIL: Creditors' Proofs of Debt Due Sept. 2 5:15 TAIL RISK MASTER: Creditors' Proofs of Debt Due Sept. 2 7x7 OFFSHORE: Creditors' Proofs of Debt Due Sept. 12 ADLOGICA: Creditors' Proofs of Debt Due Sept. 9 BLUE POINT: Creditors' Proofs of Debt Due Sept. 11 CAPULA INVESTMENTS: Creditors' Proofs of Debt Due Sept. 11 DUNCAN ACHILLE: Placed Under Voluntary Wind-Up GLOBAL INTERNATIONAL: Commences Liquidation Proceedings GOSTAV: Creditors' Proofs of Debt Due Sept. 25 HENRI CAPITAL: Creditors' Proofs of Debt Due Sept. 11 HERALD FUND: Placed Under Voluntary Wind-Up KUONI MANAGEMENT: Creditors' Proofs of Debt Due Sept. 2 LEADERS FUND: Creditors' Proofs of Debt Due Sept. 2 TURKANA INVESTMENT: Creditors' Proofs of Debt Due Sept. 11 WGF FEEDER: Creditors to Hold Meeting on Aug. 29 C O L O M B I A TERMOCANDELARIA POWER: Fitch Ups Issuer Default Ratings to 'BB+' J A M A I C A FINSAC: Debtors Seek Prime Minister's Intervention * JAMAICA: Banana Industry Making Steady Recovery M E X I C O PETROLEOS MEXICANOS: Government Drafting Bill to Reduce Tax Burden P U E R T O R I C O BUILDERS GROUP: Battle Brewing Over Use of Shopping Center Cash BUILDERS GROUP: Monge Robertin Approved as Restructuring Advisor - - - - - ============= B O L I V I A ============= * Bolivian Government's $500MM Bond Issue Gets Moody's Ba3 Rating ----------------------------------------------------------------- Moody's Investors Service has assigned a Ba3 rating to the Bolivian government's $500 million bond maturing on August 22, 2023. The rating matches the Bolivian government bond rating, which was upgraded to Ba3 from B1 in June 2012, and assigned a stable outlook. Ratings Rationale: Bolivia's Ba3 sovereign rating incorporates (1) sustained improvement in government debt metrics supported by higher government revenues, (2) robust economic growth over a seven-year period, and (3) recurring current account surpluses and steady foreign direct investment inflows which have led to a marked increase in international reserves. During the last eight years, government debt metrics have declined, coming below the medians for Ba-rated countries at present. Average annual GDP growth of nearly 5% during 2006-2012 has been driven by public investment. International reserves have increased significantly, providing a significant buffer against price-related commodity shocks. The stable outlook balances improvements in Bolivia's sovereign credit profile with key credit challenges that include: (1) high hydrocarbon and commodity dependence, (2) low income per capita and the relatively small size of the economy, and (3) a history of political instability which has in the past led to unpredictable policies. Upward pressure on the rating could come about if the government creates and adheres to a rules-based fiscal stabilization fund, or if private investment reports a sustained increase. Downward rating pressure could stem from a significant and prolonged drop in commodity prices or a return of political instability. The principal methodology used in this rating was Sovereign Bond Ratings published on September 2008. =========== B R A Z I L =========== BROOKFIELD INCORPORACOES: Moody's Changes Outlook to Negative ------------------------------------------------------------- Moody's America Latina revised the ratings outlook for Brookfield Incorporacoes S.A. (Brookfield) to negative from stable. Concurrently, Moody's has affirmed all the ratings at Ba3 on the global scale and A3.br on the national scale. The change in outlook to negative reflects the company's lower than expected operating results during the first half of 2013 leading to higher leverage, tighter liquidity, and overall weaker credit metrics, which could take time to improve given the current challenging business environment for homebuilders in Brazil. Ratings Affirmed: Brookfield Incorporacoes S.A.'s (Brookfield) - Corporate Family Rating: Ba3 (global scale), A3.br (national scale) - BRL300 million senior unsecured debentures due in 2015 and 2016 (4th issuance): Ba3/A3.br Outlook: changed to Negative from Stable. Ratings Rationale: The Ba3 rating continues to reflect the Brookfield's position among the top five largest homebuilders in Brazil, with strong brand name, long track record in real estate development and good diversity in terms of product offering ranging from economic to high income apartments and office buildings. The rating also considers the company's adequate corporate governance standards and the benefit of having Brookfield Asset Management Inc. (BAM; Baa2/ stable) as the largest individual shareholder. On the other hand, Brookfield's high leverage and ongoing execution risks constrain the ratings, as does the sizeable land bank, which is not entirely suitable for its current business strategy, and its relatively tight liquidity position. The outlook change to negative was prompted by the company's weak operating performance during the first half of 2013, mainly due to the impact of additional cost overruns and adjustments of internal processes. Those adjustments led to higher than expected leverage and prevented an anticipated improvement in credit metrics, which remain overall weak for the Ba3 rating category. The negative outlook reflects the company's challenges to improve profitability and deleverage the balance sheet on a timely basis, amid growing concerns over the industry fundamentals. Despite Federal Government's support through tax incentives and still adequate funding availability for construction and home acquisitions, recent trends point to a higher risk of macroeconomic downturn in Brazil. In Moody's opinion, slower GDP growth in Brazil combined with rising household debt and slowing growth of housing prices contributes to an overall deterioration in the industry dynamics. The tighter monetary policy to contain inflationary pressures could further limit Brookfield's profitability in the near term, given the high amount of corporate debt in its capital structure (around 61% of total debt). The company's adjusted gross margin deteriorated to 7.7% during the first half of 2013% (vs. 17% in 2012), while the leverage as measured by the total debt to book capitalization ratio remained high at 63.5% (62.7% in FYE2012). Moody's calculates BRL800 million of negative Free Cash Flow (FCF), during the last twelve months ended June 2013. Moody's revised projections incorporate expectations that FCF will remain negative in 2013 in the BRL350 million to 500 million range and become positive in 2014. The expected improvement in FCF generation is supported by the high number of project deliveries over the next twelve months, which should contribute to leverage reduction close to 58% by the end of 2014. Brookfield has adequate liquidity to meet its operating requirements but there are significant corporate debt maturities to be refinanced in 2014. Moreover a ratings downgrade could trigger acceleration provisions in the company's public debt arrangements that could further constrain its liquidity profile. According to the management, there are BRL3.3 billion undrawn committed facilities under the Sistema Financeiro de Habitacao (SFH) that adequately cover its ongoing project commitments. At the end of June, 2013, the company had (i) BRL459 million in unrestricted cash outstanding and equivalents on its balance sheet, (ii) BRL276 million of restricted cash that is expected to be released during the 3Q13, and (iii) about BRL1.0 billion in short term receivables from finished units (net of land swaps) that should become available with the effective mortgage transfers to lending banks. On the other hand, the company reported short term debt maturities of BRL1.6 billion, adjusted according to Moody's standard adjustments including commitments for land acquisition and obligations in the sale of receivables. Approximately BRL490 million (30% of the ST debt) were project related loans that will be repaid once these projects are delivered, and BRL557 million (34% of the ST debt) referred to corporate debts, such as debentures and CRI/CCBs, that should be refinanced or amortized upon maturity. A rating upgrade is unlikely in the short term, but Brookfield's outlook could stabilize if the company is able to improve its leverage metrics such as total debt to capitalization falls below 55% and EBIT interest coverage moves above 1.5 times for two or more consecutive quarters. Brookfield's ratings could be further downgraded if the company faces a significant deterioration in its liquidity profile, due to a downturn in the homebuilding industry, an excessive dividend payout or the inability to address near-term maturities in a timely manner. Quantitatively, the ratings could be downgraded if total debt to capitalization remains above 60% or EBIT interest coverage remains below 1.0 times for a prolonged period. A material increase in the relative amount of secured or project level debt in Brookfield's consolidated capital structure could also trigger a downgrade of the ratings assigned to the senior unsecured debentures. The principal methodology used in this rating was the Global Homebuilding Industry Methodology published in March 2009. 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 Mexico. Headquartered in Rio de Janeiro, Brookfield Incorporacoes S.A. (Brookfield) is the result from the combination of Brascan, Company and MB Engenharia, all strong brand names with over 25 year experience in the Brazilian homebuilding market. Brookfield develops, builds, and sells residential projects in virtually all price segments, as well as, office buildings. The largest shareholder is Brookfield Asset Management (Baa2/Stable) with an indirect stake of 44.17% of the shares. The company currently has 103 projects under development to be delivered between 2013 and 2014, mainly in the states of Sao Paulo, Rio de Janeiro, Paran and the mid-west region of Brazil, including the Federal District. In last twelve months ending June 30, 2012, Brookfield reported net revenues of BRL3,6 billion ($1.8 billion) and net losses of BRL221 million ($108 million). LLX LOGISTICA: BNDES Willing to Allow Debt Payment Delay --------------------------------------------------------- Cristiane Lucchesi at Bloomberg News, citing a government official, reports that Brazil's development bank will let LLX Logistica SA, the port operator former billionaire Eike Batista is ceding control of, delay a BRL518 million (US$214 million) loan payment in September. Talks on the details of the debt restructuring are continuing between the bank, known as BNDES, and Rio de Janeiro-based LLX Logistica, and no formal deal has been reached, the person said, asking not to be identified because the negotiations are private, according to Bloomberg News. The person said that BNDES has no plans to call the collateral for the loan and wants the company to pay as its cash flow permits, Bloomberg News relates. Bloomberg News notes that LLX Logistica has tumbled 29 percent this year as Mr. Batista's commodities empire collapsed and concern intensified that the company wouldn't be able to complete its Acu project, which Mr. Batista said would be the biggest port in the Americas. The debt deferral is designed to help LLX Logistica recover as Mr. Batista hands the company over to a new controlling shareholder, the person said, adding that BNDES plans to help other Mr. Batista companies after they are sold, Bloomberg News discloses. Bloomberg News notes that LLX Logistica said on Aug. 14 it reached an agreement to sell as much as BRL1.3 billion of new shares to private-equity fund EIG Global Energy Partners. Bloomberg News relates that Mr. Batista will remain a "relevant shareholder" after the deal, and won't be part of management, LLX Logistica said. LLX Logistica is in "advanced" talks with BNDES and Banco Bradesco SA to renegotiate debt, LLX said in an e-mailed statement obtained by Bloomberg News. Bloomberg News notes that the company has a BRL345 million loan with Bradesco due in February. It said on May 3 it reached a deal with the Sao Paulo-based bank to extend payment of a separate 467.7 million-real loan due in October 2014, Bloomberg News adds. OI SA: Plunges After Surprise Loss, Cuts Dividend Payment --------------------------------------------------------- Julia Leite & Christiana Sciaudone at Bloomberg News report that Oi SA, Brazil's most indebted telecommunications company, plunged after it reported an unexpected loss and cut its planned dividend payment. Voting shares tumbled 8.9 percent to BRL4.49 at the close in Sao Paulo, on Aug. 15, 2013, the worst performance on the Ibovespa equity benchmark, which rose 0.6 percent, according to Bloomberg News. Non-voting shares sank 7.4 percent to BRL4.13, Bloomberg News relates. After hiring Chief Executive Officer Zeinal Bava two months ago, Oi's board is cutting back on shareholder payouts to turn the company around, Bloomberg News discloses. The carrier plans to pay BRL2 billion (US$865 million) in dividends through 2016, compared with BRL3 billion it had told investors it would dispense in 2014 and 2015, Bloomberg News says. The new dividend policy "is much more compatible and aligned with the cash-flow profile and the prudent financial approach we want to take in life. . . . It's something that gives the market a floor as to how they should be thinking about dividend in this company in the future," Bloomberg News quoted Mr. Bava as saying. Oi's net loss was BRL124.2 million during the three months ended in June, its first unprofitable quarter since 2009, according to data compiled by Bloomberg. The average estimate of six analysts was for a profit of BRL186.7 million, Bloomberg News data show. Fiscal Austerity While the cut to payouts demonstrates "fiscal austerity" the Rio de Janeiro-based company's "high dividend yield was one of the stock's attractions," Banco Itau BBA analysts Susana Salaru and Gregorio Tomassi wrote in a note to clients, Bloomberg News discloses. Bloomberg News notes that after paying BRL4 billion in dividends since 2012 under a program that promised BRL8 billion in payouts through 2015, Oi canceled a BRL1 billion-real payment it had scheduled for this year. Oi's net debt rose by BRL2 billion from the first quarter to BRL29.5 billion, Bloomberg News relays. That pushed its ratio of net debt to earnings to 3.4, leaving out interest, taxes, depreciation and amortization, according to Bradesco BBI, Bloomberg News discloses. Provisions for bad debt, used to cover customers who fail to pay their bills, rose 97 percent from a year earlier to BRL323 million, which Bradesco analysts led by Luis Azevedo called "worrying," Bloomberg News says. Prudence Needed Bloomberg News relays that Mr. Bava said the "current economic environment" was to blame for the higher bad-debt costs. "If we are looking to reduce bad debts, we need to be even more prudent. . . . Credit policies, prices and offers are being revised to bring bad debt to acceptable levels in the near future," Bloomberg News quoted Mr. Bava as saying. Bloomberg News notes that the expenses are costing the company about 100 million reais a month, a figure Mr. Bava said he wants to halve. "The turnaround will be underpinned by three events: correct the cash-flow-profile business model, more efficiency and growth," Bloomberg News quoted Mr. Bava as saying. ========================== C A Y M A N I S L A N D S ========================== 5:15 TAIL: Creditors' Proofs of Debt Due Sept. 2 ------------------------------------------------ The creditors of 5:15 Tail Risk Fund, Ltd. are required to file their proofs of debt by Sept. 2, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 26, 2013. The company's liquidator is: Ogier c/o Kellian Hutchinson Telephone: (345) 815 1418 Facsimile: (345) 949 9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands 5:15 TAIL RISK MASTER: Creditors' Proofs of Debt Due Sept. 2 ------------------------------------------------------------ The creditors of 5:15 Tail Risk Master Fund, Ltd. are required to file their proofs of debt by Sept. 2, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 26, 2013. The company's liquidator is: Ogier c/o Kellian Hutchinson Telephone: (345) 815 1418 Facsimile: (345) 949 9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands 7x7 OFFSHORE: Creditors' Proofs of Debt Due Sept. 12 ---------------------------------------------------- The creditors of 7x7 Offshore, Ltd are required to file their proofs of debt by Sept. 12, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 31, 2013. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Wright Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands ADLOGICA: Creditors' Proofs of Debt Due Sept. 9 ----------------------------------------------- The creditors of Adlogica are required to file their proofs of debt by Sept. 9, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2013. The company's liquidator is: Appleby Trust (Cayman) Ltd Clifton House, 75 Fort Street PO Box 1350 Grand Cayman KY1-1108 Cayman Islands BLUE POINT: Creditors' Proofs of Debt Due Sept. 11 -------------------------------------------------- The creditors of Blue Point, Ltd. are required to file their proofs of debt by Sept. 11, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 2, 2013. The company's liquidator is: Jonathan Pierre Mourant Ozannes Reference: Christine Fletcher Telephone: +1 (345) 949 4123 Facsimile: +1 (345) 949 4647; or Jonathan Pierre Telephone: (345) 916 6913 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands CAPULA INVESTMENTS: Creditors' Proofs of Debt Due Sept. 11 ---------------------------------------------------------- The creditors of Capula Investments (US) Limited are required to file their proofs of debt by Sept. 11, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 1, 2013. The company's liquidator is: Ogier Employee Benefit Services Limited c/o Peter Mitchell Telephone: +44 1534 753609 Facsimile: +44 1534 504475 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands DUNCAN ACHILLE: Placed Under Voluntary Wind-Up ---------------------------------------------- On June 18, 2013, the sole shareholder of Duncan Achille Mcgregor resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: MBT Trustees Ltd. Telephone: 945 8859 Facsimile: 949 9793 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands GLOBAL INTERNATIONAL: Commences Liquidation Proceedings ------------------------------------------------------- On July 29, 2013, the sole shareholder of Global International Vessels, 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: Michael Csizmadia Travers Thorp Alberga (Michael Alberga) Harbour Place, 2nd Floor 103 South Church Street Grand Cayman KY1-1106 Cayman Islands GOSTAV: Creditors' Proofs of Debt Due Sept. 25 ---------------------------------------------- The creditors of Gostav are required to file their proofs of debt by Sept. 25, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 23, 2013. The company's liquidator is: Christopher Kennedy c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands HENRI CAPITAL: Creditors' Proofs of Debt Due Sept. 11 ----------------------------------------------------- The creditors of Henri Capital (Cayman) Limited are required to file their proofs of debt by Sept. 11, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 1, 2013. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943 3100 HERALD FUND: Placed Under Voluntary Wind-Up ------------------------------------------- On July 16, 2013, the members of Herald Fund SPC resolved to voluntarily wind up the company's operations. The company's liquidators are: Russell Smith Niall Goodsir-Cullen BDO CRI (Cayman) Ltd., 2nd Floor, Building 3 P.O. Box 31229, Governors Square 23 Lime Tree Bay Avenue Grand Cayman KY1-1205 Cayman Islands Telephone: +1 (345) 769 8820 KUONI MANAGEMENT: Creditors' Proofs of Debt Due Sept. 2 ------------------------------------------------------- The creditors of Kuoni Management Services Limited are required to file their proofs of debt by Sept. 2, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 31, 2013. The company's liquidator is: Gene Dacosta c/o Tania Dons Telephone: (345) 814 7766 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands LEADERS FUND: Creditors' Proofs of Debt Due Sept. 2 --------------------------------------------------- The creditors of Leaders Fund are required to file their proofs of debt by Sept. 2, 2013, to be included in the company's dividend distribution. The company's liquidator is: Alric Lindsay e-mail: info@lindsay.ky Telephone: (345) 926 1688 Artillery Court, Shedden Road P.O. Box 11371, George Town Grand Cayman KY1-1008 Cayman Islands TURKANA INVESTMENT: Creditors' Proofs of Debt Due Sept. 11 ---------------------------------------------------------- The creditors of Turkana Investment Fund Ltd. are required to file their proofs of debt by Sept. 11, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 31, 2013. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1, Regatta Office Park Grand Cayman KY1-1103 Cayman Islands WGF FEEDER: Creditors to Hold Meeting on Aug. 29 ------------------------------------------------ The creditors of WGF Feeder Fund will hold their meeting on Aug. 29, 2013, at 7:00 a.m., by tele-conference. Any creditor wishing to attend this meeting is required on or before August 23, 2013, to notify the company's liquidators. The company's liquidator is: Alexander Lawson P.O. Box 493 GT Grand Cayman, KY1-1106 Cayman Islands c/o Andrew Edwards Telephone: (345) 815 2608 Facsimile: (345) 949 7164 e-mail: andrewmedwards@kpmg.ky =============== C O L O M B I A =============== TERMOCANDELARIA POWER: Fitch Ups Issuer Default Ratings to 'BB+' ---------------------------------------------------------------- Fitch Ratings has upgraded Termocandelaria Power Ltd's foreign and local currency Issuer Default Ratings (IDRs) to BB+' from 'BB'. The Rating Outlook is Stable. Fitch also upgraded TPL's approximately USD39.6 million of outstanding senior secured notes to 'BB+' from 'BB'. The Rating Outlook is Stable. Concurrently, Fitch has upgraded Golden Americas Ltd's (GA) foreign currency IDR to 'BB' from 'B+'. Additionally, Fitch has upgraded GA note issuance of up to USD 14.4 million due 2018 to 'BB' from 'B+/RR4'. The Rating Outlook is Stable. The rating action reflects TPL's strengthening financial profile resulting from debt amortization as well as the expectation of significant increase in cash flow generation starting 2016. TPL's debt decreased from USD92 million in 2012 to USD67 million as of June 30, 2013 as a result of debt amortizations. Going forward, TPL might continue lowering its debt levels as its consolidated debt amortizes by approximately USD12 million per year. The company is also expected to benefit from the expiration of Termobarranquilla S.A. E.S.P.'s (TEBSA) power purchase agreement (PPA) with Generadora y Comercializadora de Energia del Caribe S.A. (Gecelca) in 2016 as the company will receive reliability payments directly from the system thereafter, which could increase TPL's consolidated EBITDA to more than USD100 million from approximately USD55 million reported as of the last 12 months (LTM) ended June 30, 2013. TPL's credit profile has benefited from the merger by absorption with Golden Gate Energy Investment Ltd at the end of 2012. KEY RATING DRIVERS TPL's ratings reflect the company's strong credit metrics characterized by low leverage levels, stable and predictable cash flow generation, a somewhat diversified asset base and relatively strong market share position in Colombia's thermoelectric generation capacity. Also factored into the ratings are TPL's relatively modest liquidity levels and moderate exposure to credit availability to finance potential working capital needs. TPL's ratings reflect the combined financial and operational profile of its two subsidiaries Termocandelaria and TEBSA, in which the company holds a 100% and 57% participation, respectively. Strengthening Credit Metrics TPL's credit metrics improved after December 2012 as a result of debt amortization and increases in cash flow generation as a result of its merger by absorption with Golden Gate Energy Investment Ltd. The company's total consolidated debt decreased to USD67 million as of June 30, 2013 from USD92 million at year-end 2012. This reduction in debt, coupled with increasing consolidated cash flow generation, lowered TPL's consolidated leverage, as measured by total debt to EBITDA to 1.3 times (x) from 2.0x and 2.9x reported at year-end 2012 and 2011, respectively. During the next three years, TPL's capital structure is expected to continue strengthening moderately as the company amortizes debt. After 2016, leverage would decrease significantly. TPL's debt is composed of USD39.6 million at Termocandelaria's level and USD27.6 million at TEBSA level. Stable and Predictable Cash Flow TPL's consolidated cash flow generation is considered stable and predictable and is supported by reliability payments received from the system by Termocandelaria and TEBSA's long-term PPA. Termocandelaria plant receives a fixed reliability charge from the Colombian electric system of approximately USD38 million to USD40 million per annum while TEBSA's PPA amounts to approximately USD50 million per year through 2016. After 2016, TPL's consolidated EBITDA could increase to approximately USD100 to USD120 million per year as its PPA expires and the company receives reliability payments from the system, similar to Termocandelaria. Diversified Asset Base with Strong Market Position TPL's ratings benefit from the company's diversified asset base as well as its strong market presence in Colombia's thermoelectric generation capacity. As a result of the merger, TPL's installed capacity now represents approximately 8.6% of Colombia's total install capacity and 28% of total thermoelectric generation capacity. This position is of particular importance for the company given frequent transmission constrains between the interior of the country where most generation capacity in Colombia resides and the northern part of the country where TPL's assets are located. Thermoelectric generation capacity in Colombia is expected to gain importance overtime for the system as most of the generation capacity expected to come online during the next decade would be hydroelectric based capacity, which increases the system exposure to droughts. Moderate Liquidity Position TPL's liquidity position is characterized by moderate cash balances; yet stable cash flow generation and manageable debt amortization schedule. The company has managed its balance sheet with moderate cash balances and, as of June 30, 2013 cash on hand amounted to USD7.2 million. This compares unfavorably with USD16.2 million of short-term debt. The company relies on its stable cash flow generation from operations to service its debt. During the LTM ended June 30, 2013, the company's cash flow from operations (CFO) amounted to USD84 million. The company also relied on its USD17 million of committed lines of credits to support its liquidity position. TPL's cash position is exposed to credit availability to finance potential working capital needs should TPL's Termocandelaria power plant be called to generate for prolong periods. RATING SENSITIVITIES TPL's credit rating could benefit from debt repayment at TEBSA, further consolidated deleveraging and increase certainty regarding long-term gas supply in Colombia. Key consideration for a negative rating action would be an increase in leverage to above 3.0x as a result of significant addition of debt to finance large capex programs. ============= J A M A I C A ============= FINSAC: Debtors Seek Prime Minister's Intervention -------------------------------------------------- RJR News reports that the Association of Finsac'd Entrepreneurs (AFEs) has now sought the intervention of the Prime Minister as it tries to get the FINSAC Commission to present its interim report. The group, which failed in its bid to get the court to compel the Commissioners to complete the report, sent a letter to the Prime Minister requesting her assistance, according to RJR News. The report relates that the AFE also carried out its plan to write to the Governor-General. RJR News notes that President of the Association of FINSAC's Entrepreneurs, Yola Grey-Baker, said a copy of the letter will be sent to the Prime Minister; so too to the Leader of the Opposition. Ms. Grey-Baker said at this point it is a wait and see whether the Prime Minister will intervene, RJR News notes. Mrs. Gray-Baker said that if no one else intervenes, she at least expects that the Leader of the Opposition will respond, the report relates. * JAMAICA: Banana Industry Making Steady Recovery ------------------------------------------------- RJR News reports that Jamaica's local banana sector is making steady recovery after suffering a major setback due to Hurricane Sandy late last year. Roger Clarke, Minister of Agriculture, said banana production has picked up and the trend is expected to continue barring any natural disasters, according to RJR News. The report relates that Mr. Clarke said there is evidence that the industry is bouncing back and the expansion continues in St. Mary and St. James. RJR News notes that news came on the weekend that Jamaica Producers will be re-employing 50 persons out of the batch of workers who were laid off. Eighty workers employed to its subsidiary, JP Tropical Foods, were laid off following the passage of Hurricane Sandy, the report adds. =========== M E X I C O =========== PETROLEOS MEXICANOS: Government Drafting Bill to Reduce Tax Burden ------------------------------------------------------------------ Nacha Cattan at Bloomberg News reports that Mexico's government will send a bill to Congress in September to improve state-owned Petroleos Mexicanos' capacity to invest in projects by reducing the oil company's tax burden, Finance Minister Luis Videgaray said. The bill, which comes as the government tries to give other companies access to Mexican oilfields, would lower Pemex's royalties and license fees, Videgaray wrote in an article, according to Bloomberg News. To partially compensate for lower fees, Pemex would start paying income taxes on its drilling and exploration operations, said Mr. Videgaray said, notes Bloomberg News. The world's fifth-largest crude oil producer, whose taxes fund about 34 percent of the federal budget, is headed for its ninth straight year of output declines, according to Pemex, Bloomberg News discloses. Bloomberg News relates that President Enrique Pena Nieto sent a bill to Congress to arrest Mexico's production declines by enticing private firms to develop oilfields in the country for the first time since 1938. ===================== P U E R T O R I C O ===================== BUILDERS GROUP: Battle Brewing Over Use of Shopping Center Cash --------------------------------------------------------------- Secured and judgment creditor CPG/GS PR NPL LLC replied to Builders Group & Development Corp.'s opposition to CPG/GS' motion for order determining the foreclosure of rents or prohibiting the use of CPG/GS' cash collateral. According to CPG/GS, rents from the Cupey Professional Mall became the property of CPG/GS pursuant to a prepetition foreclosure that took place over two years before the Debtor's bankruptcy filing. Additionally, CPG/GS stated that, among other things: -- a state court judgment precludes the issue of the amount of the debt through both collateral estoppel and the Rooker- Feldman Doctrine; -- the Debtor's claim for a section 506(c) surcharge is legally insufficient; -- the Debtor's claims for additional relief, as set forth in the opposition, are not applicable; and -- the Court must prohibit the use of any cash collateral due to the Debtor's inability to properly administer the shopping center. As reported in the Troubled Company Reporter on July 31, 2013, the Debtor said CPG's statement related to "settlement attempts, bad faith, mismanagement and alienation of patrons" is "self-serving and fictional," with the only purpose being to influence the Court to take a stance against Builders. Contrary to CPG's representations, Builders and CPG reached a prepetition agreement through a mediated effort which only required minimal changes prior to execution, and CPG kept delaying the signing, then it about-faced and filed a complaint for foreclosure. Builders, through its president's personal resources and those of related companies, has paid the expenses of maintaining the Cupey Professional Mall out of pocket since September 2010. The Debtor said the collateral has been protected and the value has been increased due to the efforts of Builders. The Hon. Enrique S. Lamoutte Inclan will convene a hearing on Aug. 26, 2013, at 2 p.m., to consider: -- Builders Group & Development Corp.'s motion to use cash collateral, and -- secured and judgment creditor CPG/GS PR NPL LLC's motion to alter or amend the Court's interim order entered on July 19, 2013; and the Debtor's opposition to that motion. CPG/GS, in its objection to the interim order authorizing the Debtor's use of cash collateral, stated that CPG has no confidence in the honesty or the capacity of the Debtor's current management and will not consent to the Debtor's current management's use of its cash collateral. CPG also explained that the Debtor has (a) no right to use any cash collateral of CPG/GS, as the same was properly foreclosed and transferred prepetition to CPG/GS, thus does not constitute an asset of the bankruptcy estate; (b) Debtor is not able of providing any reasonable adequate protection to CPG/GS as there exists no equity in its assets, and there exists no reorganization or refinancing alternatives that could even remotely provide a viable exit strategy pursuant to which creditors, such as CPG/GS, will be paid the amount and value of their security interest. About Builders Group Builders Group & Development Corp. owns and manages the Cupey Professional Mall, a shopping center located in Cupey, Puerto Rico. The Company sought Chapter 11 protection (Bankr. D.P.R. Case No. 13-04867) on June 12, 2013, in San Juan, Puerto Rico, its home-town. The company sought bankruptcy on the eve of a foreclosure sale of its property. The Debtor estimated at least $10 million in assets and liabilities in its petition. The Debtor is represented by Kendra Loomis, Esq. at G A Carlo-Altieri & Associates. Jose M. Monge Robertin, CPA, serves as accountant. BUILDERS GROUP: Monge Robertin Approved as Restructuring Advisor ---------------------------------------------------------------- The Hon. Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for the District of Puerto Rico authorized Builders Group & Development Corp., to employ Monge Robertin & Asociados Inc. as CPA/Insolvency and Restructuring Advisor. To the best of the Debtor's knowledge the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Builders Group Builders Group & Development Corp. owns and manages the Cupey Professional Mall, a shopping center located in Cupey, Puerto Rico. The Company sought Chapter 11 protection (Bankr. D.P.R. Case No. 13-04867) on June 12, 2013, in San Juan, Puerto Rico, its home-town. The company sought bankruptcy on the eve of a foreclosure sale of its property. The Debtor estimated at least $10 million in assets and liabilities in its petition. The Debtor is represented by Kendra Loomis, Esq. at G A Carlo-Altieri & Associates. Jose M. Monge Robertin, CPA, serves as accountant. *********** 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. 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