/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/131016.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, October 16, 2013, Vol. 14, No. 205 Headlines B E R M U D A CAPITAL G: Cuts Four Jobs at Bank B R A Z I L BANCO DO ESTADO: Moody's Assigns Deposit Ratings at Ba3 OGX PETROLEO: Produced 13,200 BOE Per Day in September OSX BRASIL: Speculations Emerge of BNDES Reworking Loan QGOG CONSTELLATION: S&P Affirms 'BB+' Corporate Credit Rating C A Y M A N I S L A N D S CANYON CAPITAL: Creditors' Proofs of Debt Due Nov. 7 CORAZON ABSOLUTE: Creditors' Proofs of Debt Due Nov. 7 CREDIT ASIA: Commences Liquidation Proceedings EXPEDITION FUND: Creditors' Proofs of Debt Due Nov. 7 NANOSOLAR LTD: Commences Liquidation Proceedings PIPE ENTERPRISES: Creditors' Proofs of Debt Due Oct. 30 SAB OVERSEAS II: Creditors' Proofs of Debt Due Oct. 29 SAB OVERSEAS III: Creditors' Proofs of Debt Due Oct. 29 SAB OVERSEAS IV: Creditors' Proofs of Debt Due Oct. 29 SUTHERLAND HOLDINGS: Commences Liquidation Proceedings VARNA FUND II: Creditors' Proofs of Debt Due Oct. 29 VARNA MASTER: Creditors' Proofs of Debt Due Oct. 29 D O M I N I C A N R E P U B L I C * DOMINICAN REP: Foreign Investment Slumps, Firms Promise Rebound * DOMINICAN REP: Leaders in Talks to Deal With Trade Hurdles G U A T E M A L A * GUATEMALA: S&P Affirms 'BB' Senior Unsecured Rating J A M A I C A * BANK OF JAMAICA: Continues to Rack Up Losses * JAMAICA: JEA Raises Concern over Slide in Currency Value * JAMAICA: Signs US$60M IDB Loan Contract for Fin'l. Mgmt. Program M E X I C O GENWORTH SEGUROS: S&P Affirms, Withdraws 'BB+' Global Scale Rating GRUPO FINANCIERO: Gets Gov't OK to Buy Generali Group's Stake MAXCOM TELECOMUNICACIONES: U.S. Offer Expired Sept. 26 T R I N I D A D & T O B A G O TRINIDAD CEMENT: Legal Battle With Shareholders Continues V E N E Z U E L A PETROLEOS DE VENEZUELA: Mulls Dollar Bond Sale Before Year Ends PETROLEOS DE VENEZUELA: Signs Pact for Ayacucho Block 8 in Orinoco - - - - - ============= B E R M U D A ============= CAPITAL G: Cuts Four Jobs at Bank --------------------------------- Rebecca Zuill at Royal Gazette reports that Capital G Bank Limited has cut four jobs at the bank. "Capital G can confirm that it has recently made four positions redundant as part of its ongoing re-evaluation of its business in meeting its client needs and strategic objectives," the report quoted a bank spokesperson as saying. The report notes that the spokesman also confirmed that Capital G's senior vice president, head of personal and commercial banking Michael Veale was no longer with the bank. Mr. Veale was appointed to the role in 2010. The report discloses that the most recent redundancies have been confirmed almost a year to the day since it was announced the last tranche of Capital G employees were made redundant. On Oct. 11, 2012, the report recalls, it was reported that thirteen employees had lost their jobs, twelve of whom were Bermudian. Royal Gazette notes that the bank said then that the decision was taken: "as a result of the identification of recent operational efficiencies and the need to meet the skill sets required in order for the bank to better achieve success in the future. Capital G is an independent integrated financial services organisation in Bermuda established in the 1930s as the Gibbons Company. The group's main operations now include a bank, a trust company and an investment management company. Capital G employs approximately 200 personnel in modern premises located in the City of Hamilton, Bermuda's capital. =========== B R A Z I L =========== BANCO DO ESTADO: Moody's Assigns Deposit Ratings at Ba3 ------------------------------------------------------- Moody's Investors Service has assigned first-time ratings to Banco do Estado do Para S.A. (Banpara), as a bank financial strength of D- that maps to a ba3 on the global rating scale. At the same time, Moody's also assigned global local- and foreign-currency deposit ratings at Ba3 and Not Prime, long- and short-term, respectively; and Brazilian national scale deposit ratings of A2.br and BR-2, long- and short-term, respectively. All ratings have a stable outlook. The following ratings were assigned to Banco do Estado do Para S.A. (Banpara): Bank financial strength rating: D-, stable outlook Long-term global local-currency deposit rating: Ba3, stable outlook Short-term global local-currency deposit rating: Not Prime Long-term foreign-currency deposit rating: Ba3, stable outlook Short-term foreign-currency deposit rating: Not Prime Long-term Brazilian national scale deposit ratings: A2.br, stable outlook Short-term Brazilian national scale deposit ratings: BR-2 Rating Rationale: The ba3 standalone credit assessment acknowledges Banpara's established local franchise with a distribution network in the State of Para. Though modest, this network has a 12.7% market share of the state's total loans and roughly an 8% participation in the state's deposits. The bank's primary focus is on deposit- taking and payroll financing to state employees, a core business that has historically supported the bank's good asset quality and high profitability margins. Banpara benefits from a stable and loyal funding base, supported by its role as payment agent of the state government, including salaries for local government employees. Banpara is also exposed to competition from large retail banks within its regional market. The bank is planning to double the size of its branch network by 2014 and also to expand into corporate lending activities in its region. Ongoing efforts to expand Banpara's business into complementary business segments are likely to enhance the diversification of revenues; however, they also carry execution risks. By the same token, in its role as a policy bank for the state of Para, Banpara may be exposed to political interference from the local government in its asset allocation decisions, despite recent signs of commitment from the state government to support the bank. Moody's views these challenges as constraining factors to the ratings. On the other hand, Banpara has a long-track record of adequate capitalization and asset quality indicators, which may come under pressure as it expands its loan book into higher capital, lower margin corporate lending. Moreover, efforts to enhance its funding mix through local capital market instruments will likely result in a more volatile and expensive funding profile, thus creating some tension in its profitability indicators. Upward movement on the standalone ratings could result if the bank is successful at executing its regional growth plan and at leveraging its franchise presence in the state while preserving asset quality and profitability. Conversely, ratings could be affected negatively by a sharp increase in operating costs or by the deterioration in asset quality indicators as a consequence of aggressive loan growth or credit concentration issues. Banpara's Ba3 global local-currency (GLC) deposit rating derives from the baseline credit assessment of ba3. In Moody's view, over the last two-to-three years the local government has proven the commitment and support it has for Banpara's operations through incorporating retained earnings reserves and limiting dividends payout to 40% per year. At the same time, Moody's also assumes that Banpara would receive no systemic support because of its limited market share of deposits relative to total deposits in the Brazilian system. 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. Banco do Estado do Para S.A. is headquartered in Belem, Brazil. As of June 2013, Banpara had total assets of BRL4.33 billion (USD1.96 billion) and shareholders' equity of BRL456.2 million (USD226.9 million). OGX PETROLEO: Produced 13,200 BOE Per Day in September ------------------------------------------------------ Rogerio Jelmayer at Dow Jones Newswire reports that OGX Petroleo e Gas Participacoes SA, the flagship of businessman Eike Batista's teetering empire, said that production in September remained limited to a single natural gas field because the Tubarao Azul oil field continued to be shuttered for repairs. OGX on Oct.10 said that it produced 13,200 barrels of oil equivalent per day in September, compared with 13,300 barrels of oil equivalent per day in August, according to Dow Jones Newswire. The report notes that all of OGX's output came from the inland Gaviao Real natural gas field, which produced an average of 4.5 million cubic meters of gas per day. OGX's Tubarao Azul oil field saw no production, as the company is repairing a submersible pump, the report relates. The report discloses that OGX, with US$3.6 billion in bonds outstanding, recently missed a US$45 million interest payment. The company, which has faced several operational setbacks and is running out of cash, has until the end of the month to find a solution for the missed payment or it will be officially in default, Dow Jones Newswire relates. About OGX Petroleo Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes S.A. is an independent exploration and production company with operations in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2 and OGX Austria GmbH's senior unsecured notes ratings to Ca from Caa2. The rating outlook remains negative. OSX BRASIL: Speculations Emerge of BNDES Reworking Loan ------------------------------------------------------- Julia Leite and Peter Millard at Bloomberg News report that speculation has emerged that Brazil's national development bank will extend a BRL548 million (US$252 million) debt to OSX Brasil SA, Eike Batista's shipbuilding company. Bloomberg News notes that OSX had a BRL548 million debt with the development bank known as BNDES as of June 2013, which was rolled over and matures Oct. 15, according to regulatory filings. The company said in an e-mailed reply to questions that it's continuing to negotiate terms of the loan with BNDES, according to Bloomberg News. "The government wants the company to succeed . . . . I don't think they have a choice but to extend the loan. . . . You would have the additional risk of the company shutting down and laying off people," the report quoted Fabiano Santin, a fixed-income analyst at Kondor Invest in Sao Paulo, as saying. Bloomberg News discloses that other OSX lenders are considering seizing two oil production ships used as collateral on loans, according to six people with direct knowledge of the matter who asked not to be named because the discussions are private. OSX hired Credit Suisse Group AG to help sell the vessels. Bloomberg News relates that creditors would join that process as they seek to avert losses after OGX Petroleo & Gas Participacoes SA missed a US$45 million Oct. 1 bond payment that puts Eike Batista on the brink of Latin America's biggest corporate default. Bloomberg News relates that unnamed sources said the BNDES loan has guarantees from Banco Votorantim SA and no vessel as collateral. OSX Brasil SA is a shipbuilder controlled by billionaire Eike Batista. As reported in the Troubled Company Reporter-Latin America on June 26, 2013, Reuters said that OSX Brasil denied a report it failed to make payments on debt held by Spanish infrastructure group Acciona. The local Folha da S.Paulo newspaper reported that Batista's OSX Brasil was struggling to avoid bankruptcy after it defaulted on some BRL500 million ($222 million) in debt held by Acciona, according to Reuters. QGOG CONSTELLATION: S&P Affirms 'BB+' Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' corporate credit and issue-level ratings on QGOG Constellation S.A. and on its $700 million senior unsecured seven-year bonds, which are fully and unconditionally guaranteed by the company's subsidiary and owner of the portfolio of assets, Constellation Overseas Ltd. (Constellation; not rated). The outlook is stable. "The ratings on QGOG Constellation reflect its "satisfactory" business risk profile and "significant" financial risk profile, as our criteria define these terms. This assessment reflects the company's reliance on substantive distributions from a portfolio of assets to service its debt and its geographic and customer concentration in Brazil, as most of its contracts are with Petroleo Brasileiro S.A. - Petrobras; BBB/Negative/," S&P said. "The offsetting factors are its strong competitive position as one of the largest oil and gas drilling services provider in the country and one of the top 10 global players, the stable contractual base, including the signed charter and service agreements at fixed day rates, relatively long tenors that would provide a predictable stream of cash flow, minor construction risk, as the majority of its assets are already operating, and a long track record as an experienced rig operator. In our view, the company's liquidity is "adequate" and its management is "fair," S&P said. ========================== C A Y M A N I S L A N D S ========================== CANYON CAPITAL: Creditors' Proofs of Debt Due Nov. 7 ---------------------------------------------------- The creditors of Canyon Capital CDO 2001-1 Limited are required to file their proofs of debt by Nov. 7, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Dec. 12, 2011. The company's liquidator is: Hugh Dickson c/o James Drury Grant Thornton Specialist Services (Cayman) Limited P.O. Box 765 Grand Cayman KY1- 9006 Cayman Islands Telephone: (345) 949 7100 Facsimile: (345) 949 7120 CORAZON ABSOLUTE: Creditors' Proofs of Debt Due Nov. 7 ------------------------------------------------------ The creditors of Corazon Absolute Return Fund Limited are required to file their proofs of debt by Nov. 7, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 17, 2013. The company's liquidator is: Michael Penner c/o Marcin Czarnocki Deloitte & Touche P.O Box 1787 Grand Cayman KY1-1109 Cayman Islands Telephone: +1 (345) 814 2228 Facsimile: +1 (345) 949 8258 CREDIT ASIA: Commences Liquidation Proceedings ---------------------------------------------- On Sept. 20, 2013, the shareholders of Credit Asia Capital (Cayman) 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: Han Hui Chen 47 Hillview Avenue #03-01 Singapore 669614 EXPEDITION FUND: Creditors' Proofs of Debt Due Nov. 7 ----------------------------------------------------- The creditors of Expedition Fund Limited are required to file their proofs of debt by Nov. 7, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 24, 2013. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands NANOSOLAR LTD: Commences Liquidation Proceedings ------------------------------------------------ On Sept. 20, 2013, the shareholders of Nanosolar 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: Russell Homer Telephone: (345) 946 0820 Facsimile: (345) 946 0864 PO Box 2499, George Town Grand Cayman KY1-1104 Cayman Islands PIPE ENTERPRISES: Creditors' Proofs of Debt Due Oct. 30 ------------------------------------------------------- The creditors of Pipe Enterprises Corporation are required to file their proofs of debt by Oct. 30, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 25, 2013. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands SAB OVERSEAS II: Creditors' Proofs of Debt Due Oct. 29 ------------------------------------------------------ The creditors of SAB Overseas Holdings II, Limited are required to file their proofs of debt by Oct. 29, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 6, 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 SAB OVERSEAS III: Creditors' Proofs of Debt Due Oct. 29 ------------------------------------------------------- The creditors of SAB Overseas Holdings III, Limited are required to file their proofs of debt by Oct. 29, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 6, 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 SAB OVERSEAS IV: Creditors' Proofs of Debt Due Oct. 29 ------------------------------------------------------ The creditors of SAB Overseas Holdings IV, Limited are required to file their proofs of debt by Oct. 29, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 6, 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 SUTHERLAND HOLDINGS: Commences Liquidation Proceedings ------------------------------------------------------ On Sept. 26, 2013, the shareholders of Sutherland Holdings Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Barclays Wealth Directors (Jersey) Limited PO Box 248 39-41 Broad Street St. Helier, Jersey JE4 5PS VARNA FUND II: Creditors' Proofs of Debt Due Oct. 29 ---------------------------------------------------- The creditors of Varna Fund II Ltd. are required to file their proofs of debt by Oct. 29, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 23, 2013. The company's liquidator is: Ogier c/o Jonathan Turnham Telephone: (345) 815 1839 Facsimile: (345) 949 9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands VARNA MASTER: Creditors' Proofs of Debt Due Oct. 29 --------------------------------------------------- The creditors of Varna Master Fund II Ltd. are required to file their proofs of debt by Oct. 29, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 23, 2013. The company's liquidator is: Ogier c/o Jonathan Turnham Telephone: (345) 815 1839 Facsimile: (345) 949 9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REP: Foreign Investment Slumps, Firms Promise Rebound ----------------------------------------------------------------- Dominican Today reports that the U.N. Economic Commission for Latin America and the Caribbean (ECLAC) revealed in Oct.10 that direct foreign investment in Latin America countries climbed 6 percent in the first half, totaling US$102.9 billion, paced by Brazil. For Dominican Foreign Investment Businesses Association (Asiex) Director Salvador Demallistre, ECLAC's report revealed that in some countries, such as Mexico, underwent the same special events as Dominican Republic last year, according to Dominican Today. "We're confident and during a visit to president Danilo Medina a couple of weeks ago we discloses that for next year our group will make investments of more than US$1 billion," Mr. Demallistre, quoted by diariolibre.com and noted that the current fall in Dominican Republic's direct foreign investment can be "somewhat cyclical," by factors with momentary influence, the report notes. "The 13 countries in the region which have submitted data received US$102.9 billion, an amount 6% higher than what it posted during the first half of the previous year," the ECLAC said, calling the expansion a "moderate growth, the report adds. * DOMINICAN REP: Leaders in Talks to Deal With Trade Hurdles ------------------------------------------------------------ Dominican Today reports that several Haitian and Dominican business leaders will hold permanent talks on trade and investment, for which they'll meet again in Dominican Republic in November, as follow-up to the agreements reached in Miami and Port-au-Prince. The leaders said their meetings, to be called KisKeya/Quisqueya Permanent Business Summit, will also serve to conduct a feasibility study on trade along the Dominican-Haitian border and identify and seek solutions to the hurdles to business reciprocity, according to Dominican Today. The report notes that the second meeting was hosted by Florida International University's (FIU) Haiti Work Group and supported by the governments in Port-au-Prince and Santo Domingo, with representatives from the Inter-American Development Bank, the World Bank, the European Union and other bilateral donors. The report relates that the business leaders from both nations agreed that the mechanism to resolve those issues is the joint Haitian-Dominican Bilateral Commission, established in the 1990s to deal precisely with bilateral topics. ================== G U A T E M A L A ================== * GUATEMALA: S&P Affirms 'BB' Senior Unsecured Rating ----------------------------------------------------- On Oct. 11, 2013, Standard & Poor's Ratings Services affirmed its 'BB/B' foreign currency and 'BB+/B' local currency sovereign credit ratings on the Republic of Guatemala. The outlook on the ratings remains stable. The transfer and convertibility assessment is unchanged at 'BBB-'. Rationale "Guatemala's weak institutions and polarized political environment, which inhibit reforms that might boost growth prospects and raise GDP per capita from a fairly low US$3,500, constrain the ratings. Fairly steady external, fiscal, and monetary performance supports the ratings," S&P said. "We expect real GDP per capita growth to remain at an average of just below 1% between 2013 and 2016, similar to the average of the past seven years (1.2%). However, we expect that updated census numbers would show that population growth is slowing and that the per capita growth forecasts may be understated. We anticipate fiscal and current account deficits will remain moderate at 2.3% and 2.9% of GDP, respectively, over the same period. Under this base-case scenario, Guatemala's net general government debt will remain at about 20% of GDP," S&P said. "However, while this macroeconomic framework remains anchored on a broad political consensus, the resulting growth rates remain too low to effectively address strong social needs and increasing demands to deal with public security," S&P said. "Guatemala's political parties and its private sector support broadly similar economic policies. Parties from different political origins have won each of the past four presidential elections in Guatemala. However, changes in government have not modified the broad orientation of macroeconomic policy, which has included moderate fiscal deficits, an inflation-targeting regime, and current account deficits mostly funded by foreign direct investment," S&P said. "A fractured party system and vested private-sector interests limit the executive branch's ability to advance controversial legislation, such as increasing the tax burden, which is among the lowest of the sovereigns we rate (general government revenues are 12% of GDP). Despite moderate fiscal deficits and debt, the challenges to raise revenue and rising expenditure pressures stemming from a shortfall in basic services and infrastructure, along with high social needs, continue to limit Guatemala's fiscal flexibility," S&P said. "Drug-related organized crime increasingly challenges a weak police force and judiciary system. An effective offensive against crime, coupled with efforts to address social needs, implies the need for higher government spending, exacerbating already limited fiscal flexibility, especially if the government doesn't increase its own revenues. The new tax legislation, which became effective in 2013, provides more tools for the government to improve tax compliance. While net general government debt remains slightly less than 20% of GDP, as estimated for 2013, about 50% of the debt is denominated in foreign currency. Local commercial banks hold a material part of government bonds issued in the local market," S&P said. "Despite moderate external liquidity and debt, vulnerability to external shocks is a relevant risk for the Guatemala. We expect gross external financing needs to average 95% of current account receipts (CAR) plus usable reserves during 2013-2016 and external debt net of official reserves and financial sector assets to average 29% of CAR. Guatemala's net external liability position is just more than 50% of CAR. About 40% of Guatemala's exports go to the U.S. and 30% to Central American economies, whose performance is also linked to the U.S. economy. Family remittances from the U.S. represent about 10% of GDP in Guatemala, increasing the vulnerability to the health of the U.S. economy and any potential change in immigration laws. External data inconsistencies make it difficult to reconcile stock and flows," S&P said. "According to the central bank, the current account deficit could be overstated because the current account is not correctly capturing some inflows of remittances," S&P said. "Inflation averaged 5.4% over the past five years, and we project slightly lower inflation going forward. The central bank operates with a high level of independence. While depository corporation claims on the resident nongovernment sector have been increasing relatively rapidly in recent years (at rates close to 20%, although we expected it decelerate to 17% in 2013), claims to GDP are a moderate 37% (estimate for year-end 2013). This fairly low intermediation plus foreign currency lending (about a third of total lending) restrict the transition mechanism of monetary policy," S&P said. Outlook "The stable outlook balances Guatemala's growth prospects, along with its external, fiscal, and inflation performance, against its limited fiscal flexibility, stemming from low revenues and high infrastructure, social, and security needs. Additional progress on a reform agenda that improves Guatemala's business climate and growth momentum and at the same time generates more fiscal resources to finance a more-comprehensive social and security policy could lead to an upgrade. On the contrary, signs of greater political polarization, deterioration in public security, higher inflation, or wider external or fiscal deficits could lead to a downgrade of the sovereign," S&P said. RATINGS LIST Ratings Affirmed Guatemala (Republic of) Sovereign Credit Rating Foreign Currency BB/Stable/B Local Currency BB+/Stable/B Transfer & Convertibility Assessment BBB- Senior Unsecured BB ============= J A M A I C A ============= * BANK OF JAMAICA: Continues to Rack Up Losses ---------------------------------------------- RJR News reports that latest data show Bank of Jamaica losses continue to move up. As of September 25, 2013, the BoJ's year-to-date losses amounted to JM$15.96 billion, according to RJR News. That was up from JM$15.19 billion two weeks earlier, the report relates. * JAMAICA: JEA Raises Concern over Slide in Currency Value ---------------------------------------------------------- RJR News reports that the Jamaica Exporters' Association (JEA) is the latest private sector group to raise concern about the continuing slide in the value of the Jamaican dollar against its US counterpart. In a statement, the JEA also pointed to what it said is the general uncertainty in the business environment, according to RJR News. The report notes that Andrew Collins, JEA president, said although exporters earn foreign currency the volatility in the exchange rate has made it difficult to plan with certainty. Mr. Collins, the report relates, said the continued depreciation of the local currency has resulted in major increases in the cost of inputs for production such as energy, transportation and related transactions costs. RJR News notes that while commending the Government on passing its IMF test Mr. Collins underscored the need for greater predictability in the foreign exchange market to promote stability for planning and production. RJR News discloses that foreign exchange trading resumes Oct. 10 morning with the US currency at JM$104.55. It is costing JM$101.16 cents for the Canadian dollar and JM$167.96 cents for the pound sterling, RJR News says. * JAMAICA: Signs US$60M IDB Loan Contract for Fin'l. Mgmt. Program ------------------------------------------------------------------ Jamaica Public Financial and Performance Management Program III Luis Alberto Moreno, the President of the Inter-American Development Bank and the Honorable Peter D. Phillips, the Minister of Finance and Planning of Jamaica, signed in Washington D.C. a US$60 million loan contract, the third tranche of financing for a public financial and performance management program. President Moreno expressed the IDB's satisfaction with respect to Jamaica's strengthened fiscal management as well as the country's progress with the International Monetary Fund's Extended Fund Facility, the first review of which was approved by the IMF's Board on September 30, 2013. This review is an important reflection of that institution's confidence in Jamaica's macroeconomic stabilization program. This loan represents the first Policy Based Loan operation since 2011 and accompanies the Government of Jamaica's efforts to enhance public management by strengthening fiscal discipline, improving public financial management, and increasing public performance management. The program combines policy initiatives and government actions in four key areas: fiscal responsibility, financial management, public procurement' and performance management and accountability. All of these reforms are paramount to accomplishing the objectives of Jamaica's stabilization program currently being implemented. These reforms are expected to deliver ambitious debt reduction and fiscal consolidation over the next four years for Jamaica. The program's expected results are * greater fiscal discipline * more efficient and effective public financial management (which includes procurement) * improved service delivery and greater accountability in public performance management. The loan is for a 20-year period, with a five-year grace period, at a Libor-based interest rate. The Ministry of Finance and Planning is the executing agency for the project. =========== M E X I C O =========== GENWORTH SEGUROS: S&P Affirms, Withdraws 'BB+' Global Scale Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB+' global scale and 'mxAA-' national scale ratings on Mexico-based mortgage insurer Genworth Seguros de Credito a la Vivienda (GSCV). The outlook on the ratings is stable. At the same time, we withdrew the ratings on GSCV's request. Standard & Poor's doesn't rate any GSCV's debt issuance. GRUPO FINANCIERO: Gets Gov't OK to Buy Generali Group's Stake ------------------------------------------------------------- As a follow up to the material event published on June 11, 2013 by Grupo Financiero Banorte, S.A.B. de C.V. (GFNORTE) regarding the binding agreement under which GFNORTE would acquire the remaining 49% of the equity representative common shares of Seguros Banorte Generali, S.A. de C.V. and Pensiones Banorte Generali, S.A. de C.V. held by Assicurazioni Generali S.p.A Generali Group, GFNORTE informs to the investment public that it has obtained the corresponding government authorizations in order to finalize the acquisition of the Generali Group's minority stake in the insurance and annuities companies: the Antitrust Commission (CFC) informed having no objection to the transaction through the communication No. SE-10-096-2013-483 issued in Aug. 7, 2013, while the Ministry of Finance and Public Credit notified its conformity with the acquisition of Generali's equity participation in both companies through the communication No. 366-III-574/13 issued on September 24, 2013. According to the report, the total amount of the transaction was US$858 million, including excess capital: US$637 million for Seguros Banorte Generali and US$221 million for Pensiones Banorte Generali. Seguros Banorte offers life, car, home and medical insurance through a network of agents, independent brokers and mainly through Banco Mercantil del Norte S.A.'s branch network. As of June 2013, it ranked eighth in market share in terms of premiums, according to the Mexican Association of Insurance Institutions. During the first half of 2013, Seguros Banorte represented 1.9% of GFNORTE's total assets and 3.8% of its stockholders' equity. The total net income reported by the company during this period was Ps. 559 million and Ps. 924 million during 2012, representing 8.8% and 8.5% of the GFNORTE's net income, respectively. Pensiones Banorte offers annuities derived from the Social Security Law. As of August 2013, Pensiones Banorte ranked first in terms of premiums, according to AMIS's information. During the first six months of 2013, Pensiones Banorte represented 5.0% of GFNORTE's total assets and 1.4% of its stockholders' equity. The total net income reported by the company for this period was Ps. 76 million and Ps. 96 million during 2012, representing 1.2% and 0.9% of the GFNORTE's net income, respectively. GFNORTE reiterates to the investment public that it expects to continue adopting the best international corporate practices regarding Corporate Governance and information disclosure. The Financial Group expects to maintain its strategic and expansion plans to consolidate a leading institution in Mexico; in this sense, we will timely inform the investment community regarding the strategy execution and evolution of our operations. * * * As reported in the Troubled Company Reporter-Latin America on March 26, 201, Fitch Ratings has affirmed Grupo Financiero Banorte's and Banco Mercantil del Norte S.A.'s Viability ratings (VR) at 'bbb' and their long- and short-term Issuer Default Ratings (IDRs) at 'BBB'/'F2', respectively. Ixe Banco, S.A.'s (Ixe) VR was upgraded to 'bb+' from 'bb'. The National scale ratings for these two banks, as well as those of certain non-bank subsidiaries that are driven by support from GFNorte, were affirmed at 'AA+(mex)' and 'F1+(mex)'. The Rating Outlook on the long-term ratings of all these entities remains Stable. MAXCOM TELECOMUNICACIONES: U.S. Offer Expired Sept. 26 ------------------------------------------------------ Maxcom Telecomunicaciones, S.A.B. de C.V., filed on Oct. 8, 2013, Amendment No. 2 to its Schedule TO-T Tender Offer Statement Under Section 14(d)(1) or 13(e)(1) of the Securities Exchange Act of 1934. The Amendment No. 2 amends and supplements the Tender Offer Statement on Schedule TO-T, as amended from time to time, filed on Aug. 23, 2013, in connection with an offer in the United States by Banco Invex S.A., Institucion de Banca Multiple, Invex Grupo Financiero, a banking institution organized and existing under the laws of the United Mexican States, as Trustee for Trust Number 1387 (the "Trust"), Ventura Capital Privado, S.A. de C.V., Javier Molinar Horcasitas and Enrique Castillo Sanchez Mejorada (together with the Trust, Ventura Capital and Javier Molinar, the "Purchasers") to purchase for cash (i) all of the outstanding Series A Common Stock, without par value (the "Shares") of Maxcom Telecomunicaciones, S.A.B. de C.V., (ii) all of the outstanding Ordinary Participation Certificates ("CPOs") of Maxcom, and (iii) all of the outstanding American Depository Shares ("ADSs," and collectively with the Shares and the CPOs, and in each case, with any coupon representing unpaid dividends as of the day hereof, the "Securities"), of Maxcom, upon the terms and subject to the conditions set forth in the U.S. Offer to Purchase, dated Aug. 23, 2013 (the "Offer to Purchase"), and in the related ADS Letter of Transmittal (which, together with any amendments or supplements thereto, collectively constitute the "U.S. Offer"), which were annexed to and filed with the Schedule TO as Exhibits (a)(1)(A) and (a)(1)(B), respectively. Each ADS represents seven CPOs. Each CPO represents three Shares. Simultaneously with the U.S. Offer, the Purchasers offered in Mexico (the "Mexican Offer" and collectively with the U.S. Offer, the "Offers") to purchase for cash all of the outstanding Shares and CPOs of Maxcom for Ps.0.9666 for each Share and Ps.2.90 for each CPO on substantially the same terms of the U.S. Offer. This Schedule TO is being filed on behalf of the Purchaser and is intended to satisfy the filing requirements of Rule 14d-3(b)(2) promulgated under the Securities Exchange Act of 1934, as amended. According to a press release from the Purchasers dated Sept. 27, 2013, the U.S. Offer expired at 12:00 midnight, New York City time, on Sept. 26, 2013. In Mexico, the Purchasers' simultaneous tender offer to purchase all of the outstanding Shares and CPOs of Maxcom has also expired on Sept, 26, 2013. A copy of the Schedule TO, filed Aug. 23, 2013, is available at: http://is.gd/osR4wk A copy of Amendment No. 1 to the Schedule TO, filed Sept. 4, 2013, is available at: http://is.gd/NEMCHT A copy of this Amendment No. 2 is available at: http://is.gd/4k5CIQ About Maxcom Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico City, Mexico, is a facilities-based telecommunications provider using a "smart-build" approach to deliver last-mile connectivity to micro, small and medium-sized businesses and residential customers in the Mexican territory. Maxcom launched commercial operations in May 1999 and is currently offering local, long distance, data, value-added, paid TV and IP-based services on a full basis in greater metropolitan Mexico City, Puebla, Tehuacan, San Luis, and Queretaro, and on a selected basis in several cities in Mexico. * * * Maxcom carries a 'CC' corporate credit rating from Standard & Poor's Ratings Services and a "Caa1" from Moody's Investors Service. =============================== T R I N I D A D & T O B A G O =============================== TRINIDAD CEMENT: Legal Battle With Shareholders Continues --------------------------------------------------------- RJR News reports that there's no end in sight to the legal battle involving Carib Cement's parent company and a group of shareholders which obtained an injunction barring it from holding its annual general meeting. Trinidad Cement Limited said lawyers for the shareholders have applied for a further postponement of the company's appeal of the injunction, according to RJR News. It is now scheduled for November 9. The report notes that TCL wants the Appeal Court to overturn the injunction granted to the group of minority shareholders, hours before its annual general meeting was scheduled to start on July 12. RJR News discloses that the injunction forms part of a lawsuit in which the shareholders are challenging a decision by TCL's directors to refuse to attach their proposal and statement to the proxy circular which accompanied the notice of the meeting. The minority group wants to nominate five directors to TCL's board, the report relates. Trinidad Cement Limited is a cement company and is the parent company of Caribbean Cement Company Limited. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 5, 2011, RJR News reports that Trinidad Cement Limited reached an agreement with its debtors on the terms and conditions attached to the repayment of its debt. The agreement will convert most of the company's debt into an 8-year facility, to be paid, quarterly, from March 2013, according to RJR News. The report related that deal also includes certain performance criteria for repaying the debt and if those are not met, the company will be penalized. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Mulls Dollar Bond Sale Before Year Ends --------------------------------------------------------------- Corina Pons and Pietro D. Pitts at Bloomberg News report that Petroleos de Venezuela S.A. (PDVSA) is considering the sale of as much as US$3 billion in dollar bonds before the end of the year. The bonds would be sold in a private placement to the Central Bank for currency auctions and oil service providers to payoff debt, said a PDVSA official, according to Bloomberg News. The company is studying ways to swap or repurchase debt with maturities from 2014 to 2017, according to the official, Bloomberg News relates. Bloomberg News notes that Venezuela will re-start dollar auctions on Oct. 16 and sell US$100 million a week in a bid to arrest the decline of the bolivar on the black market and boost imports amid shortages of everything from toilet paper to chicken, Oil Minister and PDVSA President Rafael Ramirez said. Bloomberg News relates that Mr. Ramirez said Caracas-based PDVSA is studying two maturity options for the bond sale including 2025 or a date further out on the country's debt curve. The company wants to bring its annual debt payment burden to a manageable level of US$2.5 to US$3.5 billion, Mr. Ramirez added, Bloomberg News relays. Debt Swap Bloomberg News relays that the official said PDVSA wants to swap debt from bonds due in 2014 for loans from international banks. The company is also studying ways to swap or refinance bonds with maturities between 2016 and 2017. Bloomberg News discloses that the state oil producer, which last sold dollar debt in May 2012, is not likely to sell more bonds next year and is focused on obtaining financing from oil partners to increase production, which is averaging 2.85 million barrels a day in 2013, the official said. Bloomberg News notes that PDVSA has commitments from joint-venture partners for financing totaling US$8.5 billion this year to increase oil production to 3 million barrels a day in 2014. Bloomberg News says that restricted dollar supplies have crippled imports in a country that buys 70 percent of its goods from abroad. The shortages have pushed inflation in the past twelve months to almost 50 percent and caused the bolivar to lose 60 percent of its value against the dollar in the black market this year, Bloomberg News relays. Bloomberg News discloses that Venezuelan President Nicolas Maduro said Oct.11 that US$900 million had been set aside for dollar auctions through Dec. 31. Venezuela sold US$761 million in auctions during July and August. * * * As reported in the Troubled Company Reporter-Latin America on June 20, 2013, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on Petroleos de Venezuela S.A. (PDVSA) to 'B' from 'B+'. The outlook remains negative. PETROLEOS DE VENEZUELA: Signs Pact for Ayacucho Block 8 in Orinoco ------------------------------------------------------------------ RTT News reports that Reliance Industries Ltd. (RIL) and the Venezuelan state oil company Petroleos de Venezuela (PdVSA), SA have signed a joint study agreement for Ayacucho Block 8 in Orinoco Oil Belt. As per the study agreement, both the parties will jointly evaluate the development plan for Ayacucho 8, according to RTT News. The report notes that RIL and PdVSA have also extended the term of the MoU signed between the parties last year by one year for continued cooperation. The report relates that the signing of the Joint Study Agreement for Ayacucho Block 8 and the extension of MoU marks further strengthening of the long standing relationship between RIL and PdVSA as well as between Indian and Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on June 20, 2013, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on Petroleos de Venezuela S.A. (PDVSA) to 'B' from 'B+'. The outlook remains 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. 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 * * *