/raid1/www/Hosts/bankrupt/TCRLA_Public/130904.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, September 4, 2013, Vol. 14, No. 175
Headlines
A R G E N T I N A
METROGAS SA: Incurs ARS48.9-Mil. Net Loss in Second Quarter
A R U B A
* ARUBA: IMF Board Concludes 2013 Article IV Consultation
B R A Z I L
CAMARGO SA: S&P Affirms 'BB' Ratings; Outlook Revised to Positive
GOL LINHAS: Zacks Reiterate Stock's "Neutral" Rating
C A Y M A N I S L A N D S
AQUA PRO: Creditors' Proofs of Debt Due Sept. 18
LEHMAN BROTHERS PHILIPPINE: Creditors' Proofs of Debt Due Sept. 30
LP FINANCIAL: Placed Under Voluntary Wind-Up
PLAYA CARIBE: Shareholders' Final Meeting Set for Sept. 18
SUNRISE CAPITAL: Sole Member to Hear Wind-Up Report on Oct. 8
T3 CAYMAN: Creditors' Proofs of Debt Due Sept. 25
TEMAGAMI OFFSHORE: Creditors' Proofs of Debt Due Sept. 17
TSAF INVESTOR VI: Shareholder to Hear Wind-Up Report on Sept. 30
TSAF INVESTOR VII: Shareholder to Hear Wind-Up Report on Sept. 30
TSAF INVESTOR VIII: Shareholder to Hear Wind-Up Report on Sept. 30
TSAF INVESTOR IX: Shareholder to Hear Wind-Up Report on Sept. 30
TSAF INVESTOR X: Shareholder to Hear Wind-Up Report on Sept. 30
TSUKIJI SHOCHIKU: Commences Liquidation Proceedings
UNIVERSAL SOLUTIONS: Placed Under Voluntary Wind-Up
ZEER LTD: Placed Under Voluntary Wind-Up
J A M A I C A
* JAMAICA: Government Records Fiscal Deficit of JM$5.4 Billion
* JAMAICA: Government's Handling of Economy a Cause for Concern
M E X I C O
DOCUFORMAS SAPI: S&P Affirms Global Scale Rating at 'B+'
P U E R T O R I C O
EL FARMER: Seeks OK to Use PR Asset Cash Collateral Until Sept. 30
T R I N I D A D & T O B A G O
* TRINIDAD & TOBAGO: IMF Board Concludes 2013 Consultation
- - - - -
=================
A R G E N T I N A
=================
METROGAS SA: Incurs ARS48.9-Mil. Net Loss in Second Quarter
-----------------------------------------------------------
MetroGAS S.A. reported a net loss of ARS48.9 million on
ARS369.4 million of revenue for the three months ended June 30,
2013, compared with a net loss of ARS61.1 million on
ARS312.6 million of revenues for the same period last year.
The Company had net income of ARS397.6 million on ARS649.9 million
of revenues for the six months ended June 30, 2013, compared with
a net loss of ARS92.0 million on ARS569.2 million of revenues for
the corresponding period of 2012.
During the period ended on June 30, 2013, a gain from debt
restructuring results under reorganization proceedings was
recorded for ARS757.5 million.
The Company's balance sheet at June 30, 2013, showed
ARS2.448 billion in total assets, ARS1.883 billion in total
liabilities, and stockholders' equity of ARS564.9 million.
Reorganization Proceedings
"On account of various circumstances that significantly affected
the Company's ability to generate sufficient cash flows in order
to meet its obligations as to suppliers and financial creditors,
on June 17, 2010, the Board of Directors of MetroGAS filed a
petition for reorganization proceedings in National Commercial
Court No. 26, Clerk's Office No. 51, file No. 056,999. A
Shareholders' Meeting of the Company held on Aug. 2, 2010,
ratified this decision of the Board of Directors.
After the different procedural steps prescribed by the Argentine
Bankruptcy Law had been completed, on Feb. 2, 2012, the Company
filed a complete and final proposal for an arrangement with
unsecured creditors holding allowed and provisionally admitted
claims, which contemplated payment of any allowed and
provisionally admitted unsecured claims by means of a delivery, in
exchange for and lieu of payment of those claims, of two classes
of notes (the "New Notes") due Dec. 31, 2018.
On May 22, 2012, the Company filed a revised proposal, including
certain amendments that involved minor changes in the dates
established for the occurrence of certain events (capitalization
of interest and determination of Deadline, among others), and
suppressed the purchase offer that the issuer was required to make
upon the occurrence of a change of control.
On Sept. 6, 2012, the acting court issued an order by which it
approved the Company's arrangement with creditors and declared
terminated the reorganization proceedings under the Argentine
bankruptcy law. Also, it ordered the creation of the final
committee of creditors.
The debt exchange and issuance of the New Notes was implemented by
the Company on Jan. 11, 2013, with respect to unsecured creditors
holding allowed and provisionally admitted claims.
On Feb. 1 and 13, 2013, the Company filed evidence under the
reorganization proceedings of its having complied with the
exchange and delivery of the New Notes and the capitalization and
payment of interest in order to request that the court lift any
general restraining orders and issue a judicial declaration of its
compliance under the reorganization proceedings pursuant to
section 59 in fine of the Argentine Bankruptcy Law.
Going Concern Uncertainty
"As of the date of issuance of these financial statements, it is
neither possible to foresee the outcome of the tariff negotiation
process nor to determine its final consequences on the Company's
results and operations. The above mentioned circumstances raise
substantial doubt about the Company's ability to continue as a
going concern. However, the Company's consolidated financial
statements do not include any adjustments or reclassifications, if
any, that might be required from the unsuccessful outcome of the
situation described above."
A copy of the Company's unaudited condensed interim consolidated
financial statements as of June 30, 2013, and for the six months
period ended June 30, 2013, is available at http://is.gd/l2xE01
About MetroGAS S.A.
Headquartered in Buenos Aires, Argentina, MetroGAS S.A. is a
sociedad anonima organized under the laws of the Republic of
Argentina. The registered office and principal place of business
is located at Gregorio Araoz de Lamadrid 1360 - Ciudad Autonoma de
Buenos Aires.
The Company was formed in 1992 and on Dec. 1, 1992, it was
registered as a corporation pursuant the laws of the Republic of
Argentina. The term of duration of the Company expires on Dec. 1,
2091, and its principal business is the provision of natural gas
distribution services.
The Shares of the Company are listed on the Buenos Aires Stock
Exchange ("BCBA") and its American Depositary Shares ("ADSs") on
the New York Stock Exchange, respectively. On June 17, 2010, the
NYSE informed that MetroGAS ADSs had been suspended from trading
as a result of the Company's filing for reorganization proceeding.
MetroGAS' controlling shareholder is Gas Argentino S.A.
MetroGAS controls MetroEnergĦa S.A. whose principal business is
the sale of natural gas and/or transport on its own behalf or on
account of third parties.
=========
A R U B A
=========
* ARUBA: IMF Board Concludes 2013 Article IV Consultation
---------------------------------------------------------
On June 26, 2013, the Executive Board of the International
Monetary Fund (IMF) concluded the Article IV consultation with the
Kingdom of the Netherlands-Aruba and considered and endorsed the
staff appraisal without a meeting on a lapse-of-time basis.
Aruba is a highly open economy with a long history of
macroeconomic stability. Over eighty percent of the economy
depends directly or indirectly on tourism making Aruba the second
highest tourism-dependent country in the world. The long-standing
fixed exchange rate against the US Dollar, supported by
conservative fiscal, credit and prudential policies, has provided
macroeconomic stability by maintaining low inflation over the
years and keeping imbalances checked until recent shocks.
The economy faced two major shocks in the last four years: the
global financial crisis, which hit Aruba's tourism sector in 2009,
and the shutdown of Valero oil refinery for a total of 27 months
during 2009-12 reflecting poor profitability. Although tourism
rebounded quickly partly thanks to aggressive market
diversification efforts, real GDP took a second dip in 2012 by
close to 1 1/4 percent after increasing by 3 3/3 percent in 2011.
Output remains 12 percent below its pre-crisis level, with
recovery slower than others in the Caribbean region.
The external sector has held up well through these shocks. The
non-oil current account (CA) balance, which mostly reflects
developments in the tourism sector, has improved since mid-2000
reaching a balanced position in 2012. The overall CA balance,
however, after being in surplus for years, showed volatilities in
recent years reflecting oil sector developments. In 2012, it
recorded a surplus of 5 percent of GDP.
The fiscal position worsened significantly in recent years.
Preliminary data suggests that the overall fiscal balance recorded
a deficit of 8 1/2 percent in 2012. Notwithstanding measures taken
in the pension and health sectors and efforts to collect tax
arrears, the deficit widened sharply from pre-crisis years due to
the tax rate cut and increased current expenditure. Fiscal
consolidation is appropriately planned to start this year.
In 2013, real output is projected to grow by 1 1/4 percent. Robust
tourism growth and some pick-up in consumption from projected
deflation will support the subdued near-term recovery. A two
percent deflation is projected in 2013 reflecting large utility
price reductions in late 2012, and declining food and energy
prices. The CA balance is projected to record a deficit of 9 1/2
percent of GDP in 2013 due to the loss of oil exports.
Executive Board Assessment
In concluding the 2013 Article IV consultation with the Kingdom of
the Netherlands-Aruba, Executive Directors endorsed the staff's
appraisal, which made the following observations:
Aruba is recovering slowly from recent shocks. Two major shocks
in the last four years, the global financial crisis and the
shutdown of oil refining by Valero, have caused a recession that
is deeper than in most other Caribbean countries. Although
tourism, the mainstay of Aruban economy, rebounded quickly,
Valero's shutdown has left harder-to-fill gaps in investment and
non-tourism exports, with real GDP projected to reach its pre-
crisis level only in 2018.
Downside risks dominate in the near-term, but medium-term
prospects could be brighter. With a high dependence on tourism
and oil imports, Aruba faces downside risks from renewed
weaknesses in the global economy and higher oil prices. In the
medium-term, there are upsides from resumption of oil refining by
Valero, and large scale investment in renewable energy.
Putting the fiscal deficit on a downward path is an immediate
policy priority. The authorities' efforts to counter the
recession through cuts in the business turnover tax rate and
higher current expenditure have rapidly increased central
government's deficit and debt. In the absence of exchange rate
policy options, rebuilding fiscal space is urgent. A reduction of
the overall deficit to 6 percent of GDP in 2013 is appropriate.
To ensure this outcome, directors recommend resisting possible
expenditure pressures during the election year.
In the medium term, ambitious fiscal consolidation is needed.
Without additional measures, the central government's fiscal
deficit is projected to remain elevated posing risks to public
debt sustainability. Financial deficits of the old age pension
system (AOV) and payments for investment projects under the Public
Private Partnerships (PPP) are likely to further widen the deficit
starting as early as 2014. A consolidation of around 8 percent
of GDP during 2014-18 is appropriate, which would bring debt down
to below 60 percent of GDP. To contain fiscal pressures from
financial liabilities of the AOV and the PPP, it is important to
implement further pension reforms and put a limit on the size of
the PPP-related expenditure commitments.
External competitiveness needs to be strengthened to ensure a
steady recovery. Aruba has managed to maintain its competitiveness
in tourism through recent shocks partly due to authorities' strong
initiatives to diversify source markets. With the US accounting
for 60 percent of tourists, directors see further scope for market
diversification. To ward off risks from a large negative net
international investment position, and elevated financing
requirements, Aruba would also need to strengthen its price and
structural competitiveness through higher flexibility in the labor
market and more enabling business conditions.
The accommodative monetary policy stance is appropriate. With
slack in the economy, projected deflation and subdued credit
growth, directors see no need for monetary tightening. The
banking system's excess liquidity has increased substantially
since mid-2012. In case credit demand picks up, a very low risk
at this point, the authorities would need to mop up the excess
liquidity by increasing the reserve requirement.
===========
B R A Z I L
===========
CAMARGO SA: S&P Affirms 'BB' Ratings; Outlook Revised to Positive
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' ratings on
Camargo Correa S.A. (Camargo). At the same time, S&P affirmed its
'BB' ratings on cement subsidiaries InterCement Brasil S.A.
(Intercement) and Cimpor Cimentos de Portugal, S.G.P.S., S.A.
(Cimpor) and revised the outlook on all entities to positive.
The rating action is based on our expectation that Camargo's
credit metrics will improve in the next few years, potentially
becoming more aligned with a "significant" financial risk profile
from its current "aggressive." Current leverage ratios went up
significantly after the debt-financed acquisition of Cimpor, but
the company should still benefit from the consolidation and
synergies in its cement business through InterCement. "We assume
debt to EBITDA from 4.0x to 5.0x in 2013 and 2014 (net debt to
EBITDA close to 3.5x) and funds from operations (FFO) to net debt
trending to 20%", said Standard & Poor's
"Although Camargo has historically implemented an aggressive
mostly debt-financed acquisition strategy, the company also has a
solid track record in successfully consolidating and developing
its new businesses. We also expect the group's growth to be
mostly organic and that new investments will follow capital
discipline in order to deleverage," said Standard & Poor's
credit analyst Renata Lotfi.
GOL LINHAS: Zacks Reiterate Stock's "Neutral" Rating
----------------------------------------------------
Mideast Times reports that AnalystRatingsNetwork said Gol Linhas
Aereas Inteligentes SA's stock had its "neutral" rating reiterated
by Zacks in a research report issued to clients and investors on
Aug. 30.
They currently have a $3.75 price objective on the stock,
according to Mideast Times. Zacks' price target points to a
potential upside of 2.46% from the stock's previous close, notes
the report.
The report discloses that Zacks' analyst wrote, "We adhere to our
Neutral recommendation on GOL Linhas. The company displays a
commanding hold over the Brazilian air travel sector with the
support of network expansion across the globe, fleet restructuring
and enhancement of customer services. The airline's various
partnerships and collaborations should bode well in the coming
months. Nevertheless, we stay on the sidelines due to
disappointing results in the second quarter. Additionally, the
company faces a number of roadblocks including fluctuating fuel
costs, a competitive sector scenario, imbalance in domestic supply
and demand ratio and international business risks."
Several other analysts have also recently commented on the stock.
The report notes that analysts at Imperial Capital initiated
coverage on shares of Gol Linhas Aereas Inteligentes SA in a
research note to investors on Monday, July 1. They set an
"outperform" rating and a $6.00 price target on the stock.
Analysts at Raymond James cut their price target on shares of Gol
Linhas Aereas Inteligentes SA from $7.50 to $6.00 in a research
note to investors on Tuesday, June 18, the report relays.
One analyst has rated the stock with a sell rating, two have
assigned a hold rating and two have assigned a buy rating to the
stock, the report says. The stock has a consensus rating of
"Hold" and an average price target of $6.27, the report adds.
Gol Linhas Aereas Inteligentes SA (NYSE:GOL) is a low-cost, low-
fare airline in the world providing service on routes connecting
all of Brazil's cities and from Brazil to cities in South America
and select touristic destinations in the Caribbean.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 7, 2013, Fitch Ratings assigned an expected rating of
'B/RR5(exp)' to Gol Linhas Aereas Inteligentes S.A.'s proposed
unsecured notes. Fitch also assigned a 'B+' rating to its foreign
and local currency long-term Issuer Default Ratings.
==========================
C A Y M A N I S L A N D S
==========================
AQUA PRO: Creditors' Proofs of Debt Due Sept. 18
------------------------------------------------
The creditors of Aqua Pro of Cayman Ltd are required to file their
proofs of debt by Sept. 18, 2013, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 16, 2013.
The company's liquidator is:
Robert R. Kershaw
3592 Willow Lane
Thousand Oaks
California, CA91361, USA
Telephone: +1 (310) 516 9911
Facsimile: +1 (310) 833 4336
LEHMAN BROTHERS PHILIPPINE: Creditors' Proofs of Debt Due Sept. 30
------------------------------------------------------------------
The creditors of Lehman Brothers Philippine Investments I Limited
are required to file their proofs of debt by Sept. 30, 2013, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Aug. 2, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
PO Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
LP FINANCIAL: Placed Under Voluntary Wind-Up
--------------------------------------------
On Aug. 12, 2013, the shareholder of LP Financial Ltd 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:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
Cayman Islands
PLAYA CARIBE: Shareholders' Final Meeting Set for Sept. 18
----------------------------------------------------------
The shareholders of Playa Caribe will hold their final meeting on
Sept. 18, 2013, at 10:15 a.m., to hear the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
Gary Sparks
c/o Barnaby Gowrie
Telephone: +1 (345) 914 6365
SUNRISE CAPITAL: Sole Member to Hear Wind-Up Report on Oct. 8
-------------------------------------------------------------
The sole member of Sunrise Capital Limited will receive on Oct. 8,
2013, at 10:00 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Lion International Management Limited
P.O. Box 71 Craigmuir Chambers
Road Town, Tortola
British Virgin Islands
T3 CAYMAN: Creditors' Proofs of Debt Due Sept. 25
-------------------------------------------------
The creditors of T3 Cayman Holdings Ltd. 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 Aug. 8, 2013.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman, KY1-9005
Cayman Islands
c/o Kim Charaman/Jennifer Chailler
Telephone: (345) 943-3100
TEMAGAMI OFFSHORE: Creditors' Proofs of Debt Due Sept. 17
---------------------------------------------------------
The creditors of Temagami Offshore Fund, Ltd are required to file
their proofs of debt by Sept. 17, 2013, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 16, 2013.
The company's liquidator is:
Gene Dacosta
c/o Noel Webb
Telephone: (345) 814 7394
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
TSAF INVESTOR VI: Shareholder to Hear Wind-Up Report on Sept. 30
----------------------------------------------------------------
The sole shareholder of TSAF Investor VI Inc. will receive on
Sept. 30, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced liquidation proceedings on Aug. 2, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
PO Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
TSAF INVESTOR VII: Shareholder to Hear Wind-Up Report on Sept. 30
-----------------------------------------------------------------
The sole shareholder of TSAF Investor VII Inc. will receive on
Sept. 30, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced liquidation proceedings on Aug. 2, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
PO Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
TSAF INVESTOR VIII: Shareholder to Hear Wind-Up Report on Sept. 30
------------------------------------------------------------------
The sole shareholder of TSAF Investor VIII Inc. will receive on
Sept. 30, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced liquidation proceedings on Aug. 2, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
PO Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
TSAF INVESTOR IX: Shareholder to Hear Wind-Up Report on Sept. 30
----------------------------------------------------------------
The sole shareholder of TSAF Investor IX Inc. will receive on
Sept. 30, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced liquidation proceedings on Aug. 2, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
PO Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
TSAF INVESTOR X: Shareholder to Hear Wind-Up Report on Sept. 30
---------------------------------------------------------------
The sole shareholder of TSAF Investor X Inc. will receive on
Sept. 30, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced liquidation proceedings on Aug. 2, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
PO Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
TSUKIJI SHOCHIKU: Commences Liquidation Proceedings
---------------------------------------------------
On Aug. 8, 2013, the shareholder of Tsukiji Shochiku Building
Investment Limited resolved to voluntarily liquidate 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:
David Dyer
Deutsche Bank (Cayman) Limited
PO Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
Grand Cayman KY1-1104
Cayman Islands
UNIVERSAL SOLUTIONS: Placed Under Voluntary Wind-Up
---------------------------------------------------
On Aug. 5, 2013, the shareholder of Universal Solutions Limited
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:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
Cayman Islands
ZEER LTD: Placed Under Voluntary Wind-Up
----------------------------------------
On Aug. 5, 2013, the shareholder of Zeer Ltd 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:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
Cayman Islands
=============
J A M A I C A
=============
* JAMAICA: Government Records Fiscal Deficit of JM$5.4 Billion
--------------------------------------------------------------
RJR News reports that preliminary data for the June quarter
indicate that Jamaica Central Government recorded a fiscal deficit
of JM$5.4 billion.
It was a reduction from the budgeted deficit of JM$10.2 billion,
according to RJR News.
The report relates that the Bank of Jamaica said this reflected
lower than projected expenditure, which partly countered the
impact of a shortfall in revenue and grants.
For the quarter, the primary surplus was J$17.3 billion relative
to the target of J$14 billion under the Extended Fund Facility.
* JAMAICA: Government's Handling of Economy a Cause for Concern
---------------------------------------------------------------
RJR News reports that Audley Shaw, Opposition Spokesman on
Finance, has reacted to news that there was a further decline in
the economy between April and June.
Mr. Shaw said the Simpson Miller administration's management of
the economy is cause for great concern, according to RJR News.
Mr. Shaw, the report relates, said that for the first six
consecutive quarters the economy has declined. Mr. Shaw also noted
the decline of the Jamaican currency during the period, RJR News
discloses.
RJR News relays that banks and cambios are selling the American
currency for an average JM$102.04. The Canadian dollar is trading
at JM$97.65 cents while it is costing JM$160.07 for the pound
sterling, the report adds.
===========
M E X I C O
===========
DOCUFORMAS SAPI: S&P Affirms Global Scale Rating at 'B+'
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' global scale
and 'mxBBB/mxA-3' Mexican national scale ratings on Docuformas
S.A.P.I. de C.V. The outlook is stable.
"The ratings on Docuformas reflect its adequate asset quality,
adjusted capitalization and good profitability. On the other
hand, the company's revenues are concentrated in its core business
line amid strong competition. It has client concentration and is
highly reliant on market debt," said Standard & Poor's credit
analyst Ingrid Ortiz Machain.
Docuformas' credit quality has improved markedly with its stricter
underwriting policies and collection procedures intended to
strengthen its credit risk management. As of June 2013,
nonperforming assets (NPAs) represented 3.9%, down from 4.8% at
the end 2011 and 7.5% in 2010. The company's loan-loss reserves
have fully covered its NPAs since 2010, with a drop in its net
charge-off ratio to 0.7% in June 2013, from 3.9% in December
2011. The company has improved its asset quality despite a
sustained compound annual growth rate (CAGR) of 15% for the past
three fiscal years. Standard and Poor's said, "We expect a
25% growth rate for 2013 stemming from its larger and more
efficient commercial unit and revised sales practices."
=====================
P U E R T O R I C O
=====================
EL FARMER: Seeks OK to Use PR Asset Cash Collateral Until Sept. 30
------------------------------------------------------------------
El Farmer, Inc., and PR Asset Portfolio 2013-1 International, LLC,
jointly ask the bankruptcy court to allow the use of PR Asset's
cash collateral until Sept. 30, 2013.
As reported by the TCR on Aug. 29, 2013, El Farmer had sought
Court approval to use cash collateral, without the consent of PR
Asset Portfolio (formerly Banco Popular), for the period of Sept.
1, 2013, to Oct. 31, 2013, for the payment of the Debtor's
operating expenses.
PR Asset only agrees to the use of its cash collateral up to
September 30 with a weekly payment of $9,084 to it.
PR Asset is represented by:
Patrick D. O'Neill, Esq.
Dagmar I. Fernandez, Esq.
O'NEILL & GILMORE, P.S.C.
Citibank Towers, Suite 1701
252 Ponce de Leon Avenue
San Juan, Puerto Rico 00918
Tel: 787-620-0670
Fax: 787-620-0671
E-mail: pdo@go-law.com
About El Farmer
El Farmer, Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case
No. 12-09687) in Old San Juan, Puerto Rico on Dec. 7, 2012. The
Debtor scheduled $18.3 million in assets and $12.0 million in
liabilities, including $11.0 million owed to secured creditor
Banco Popular De Puerto Rico. The Debtor owns farm lands in
Isabela, Puerto Rico. Modesto Bigas Mendez, Esq., at Bigas &
Bigas, in Ponce, P.R., represents the Debtor as counsel.
===============================
T R I N I D A D & T O B A G O
===============================
* TRINIDAD & TOBAGO: IMF Board Concludes 2013 Consultation
----------------------------------------------------------
On June 14, 2013, the Executive Board of the International
Monetary Fund (IMF) concluded the 2013 Article IV consultation
discussions with Trinidad and Tobago.
The economy of Trinidad and Tobago is poised for a modest recovery
in 2013, after disappointing growth in 2012 that was due largely
to supply constraints, including maintenance operations in the
energy sector and an industrial dispute in the non-energy sector.
The staff projects real gross domestic product (GDP) growth of
some 1.5 percent in 2013, with risks slightly to the downside,
should development spending be under-executed. Headline inflation
rose to 9.3 percent in 2012, but core inflation, which excludes
food prices, remained moderate at 3.1 percent, and has since
fallen further to 2.2 percent in March 2013. Unemployment is low
at about 5 percent, but underemployment remains significant. The
external current account surplus fell slightly on increased
dividend outflows, but remained high at 10 percent of GDP. Gross
official reserves remained strong at US$9.2 billion at end-2012
(some 12.5 months of imports).
The central government realized a deficit of 1.1 percent of GDP in
fiscal year 2011/12 (October-September), after near balance the
previous year, and was more than explained by a decline in energy
revenues due to output shortfalls. Gross government debt increased
by some 6 percentage points of GDP to a still-manageable 39
percent of GDP. Most of this increase relates to a one-off
issuance of bonds relating to a failed insurance company (CLICO),
about half of which is expected to be retired in 2013.
Despite accommodative monetary policy, private sector credit
growth was modest. The Central Bank of Trinidad and Tobago (CBTT)
cut its policy repo rate to 2.75 percent in September 2012. The
CBTT continues to mop up considerable excess liquidity via
voluntary term deposits by commercial banks and a recent TT$1
billion government bond. Commercial banks remain well
capitalized, profitable and liquid, and the end-2012 non-
performing loan (NPL) ratio fell to 5.4 percent.
Executive Board Assessment
Executive Directors welcomed the signs of economic recovery,
fueled by growth of the non-energy sector. They agreed that the
authorities' macroeconomic policies are appropriately supporting
the recovery in the near term given downside risks. Over the
longer term, the policy priority should be to recast fiscal policy
in the context of the country's non-renewable resource endowment
while pursuing structural reforms aimed at diversifying the
economic base.
Directors commended the authorities' adoption of a medium-term
fiscal consolidation target. Specific measures should be
identified, which would also improve the composition of public
spending. This should include the phasing-out over time of
poorly-targeted and unsustainable subsidies (notably on fuels) and
transfers, while protecting the most vulnerable segments of
society and priority social spending. Looking ahead, Directors
recommended adoption of a longer-term strategy embodied in a
fiscal framework to extend the benefits of current natural
resource wealth to future generations. Increasing non-energy
revenues and containing current expenditure to raise development
spending over time will be important.
Directors supported the accommodative monetary stance, given
subdued underlying inflation and economic slack. Nonetheless,
overall credit developments, especially in the real estate sector,
and excess liquidity in the financial system should be closely
monitored in determining the future direction of monetary policy.
Directors noted that the financial sector appears sound, and
welcomed progress on financial sector reforms, including the 2011
Financial Sector Assessment Program recommendations. They
encouraged the authorities to continue enacting legislation under
preparation and expand the regulatory perimeter to include non-
bank systemically important financial institutions.
Directors underscored the need for structural reforms to
facilitate economic diversification and improve competitiveness,
and, in this context, welcomed the authorities' commitment to
improve the business climate. They also encouraged the
authorities to press ahead with efforts to improve the
effectiveness of the public service to support investment and
facilitate diversification.
Directors noted that while economic statistics are broadly
adequate for surveillance purposes, efforts to improve their
timeliness and quality should be a priority.
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, Frauline S.
Abangan, and Peter A. Chapman, Editors.
Copyright 2013. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at
202-241-8200.
* * * End of Transmission * * *