/raid1/www/Hosts/bankrupt/TCRLA_Public/131129.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
Friday, November 29, 2013, Vol. 14, No. 237
Headlines
A R G E N T I N A
COMPANIA LATINOAMERICANA: Fitch Affirms 'B-' IDR; Outlook Negative
B A R B A D O S
SAGICOR LIFE: Jamaica Unit Paid Out JM$9BB++ in Claims
B E L I Z E
BELIZE: S&P Affirms 'B-/B' Rating; Outlook Stable
B R A Z I L
BES INVESTIMENTO: S&P Retains 'BB-/B' Rating on CreditWatch Neg.
OGX PETROLEO: Talks With Bondholders Have Advanced
OGX PETROLEO: Seeks at Least $150MM in Capital From Bondholders
C A Y M A N I S L A N D S
ATHENA OVERSEAS: Members to Receive Wind-Up Report on Dec. 2
CHIMA LIMITED: Sole Member to Receive Wind-Up Report on Dec. 17
ESTEKENE MASTER: Shareholder to Receive Wind-Up Report on Dec. 2
ESTEKENE OFFSHORE: Shareholder to Receive Wind-Up Report on Dec. 2
LODGE HOLDINGS: Shareholders to Receive Wind-Up Report on Dec. 4
LUKIAN GLOBAL: Shareholder Receives Wind-Up Report
MAKKAN LIMITED: Shareholders' Final Meeting Set for Dec. 6
MARIN INTERNATIONAL: Members Receive Wind-Up Report
PFM SELECT: Shareholders Receive Wind-Up Report
PFM TECHNOLOGY: Shareholders Receive Wind-Up Report
SAN SHAN: Shareholder to Receive Wind-Up Report on Dec. 6
TSAF INVESTOR I: Shareholders to Receive Wind-Up Report on Dec. 4
TSAF INVESTOR II: Shareholders to Receive Wind-Up Report on Dec. 4
TSAF INVESTOR III: Shareholders to Hear Wind-Up Report on Dec. 4
WESTERN ASSET: Shareholders Receive Wind-Up Report
C H I L E
CHILE MINING: Asher Enterprises Held 9.9% Stake as of Nov. 15
C O L O M B I A
EMPRESA DE ENERGIA: S&P Retains 'BB+' Rating Following Add-On
M E X I C O
AXTEL: Moody's Cuts Corporate Family Rating to 'Caa3'
CORPORACION INTERAMERICANA: Moody's Puts B3 CFR on Review
N I C A R A G U A
* NICARAGUA: To Get US$186MM IDB Contingent Loan for Calamities
P E R U
HOCHSCHILD MINING: Moody's assigns Ba1 Corporate Family Rating
* PERU: To Get US$40-Million IDB Loan for Agricultural Sector
T R I N I D A D & T O B A G O
* T&T: Minister Asks Exporters Not to Be Afraid of Boycott Threats
- - - - -
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A R G E N T I N A
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COMPANIA LATINOAMERICANA: Fitch Affirms 'B-' IDR; Outlook Negative
------------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Compania Latinoamericana
de Infraestructura y Servicios S.A. (CLISA) as follows:
-- Foreign currency Issuer Default Rating (IDR) at 'B-';
-- Local currency IDR at 'B-'.
The Rating Outlook is Negative.
Key Rating Drivers:
The 'B-' ratings of CLISA is constrained by the sovereign rating
of Argentina, which has a 'B-' local currency IDR rating. The
Rating Outlook for the sovereign is also Negative. Key concerns of
corporates domiciled in Argentina include high inflation,
government meddling, economic uncertainty, and limited access to
debt markets. The Argentina government has a country ceiling of
'B-', which limits the foreign currency rating of most Argentine
corporates, including CLISA to 'B-'. Country ceilings are designed
to reflect the risks associated with sovereigns placing
restrictions upon private sector corporates that may prevent them
from converting local currency (LC) to any foreign currency (FC)
under a stress scenario, and/or may not allow the transfer of FC
abroad to service FC debt obligations.
CLISA has a strong market position as one of Argentina's largest
privately owned industrial conglomerates and would be rated higher
if its ratings were not constrained by the credit quality of the
Argentine government. CLISA operates in four main businesses:
construction and toll road concessions (through Benito Roggio e
Hijos [BRH]), water treatment, waste management (CLIBA), and
transportation. Over the last five years, CLISA's cash flow
generation grew steadily, following positive trends for
construction, which is primarily driven by public works. During
the last 12 months ended Sept. 30, 2013, the company reported
sales and EBITDA of US$1,020 million and US$166 million,
respectively, an improvement from the US$1,130 million and US$154
million at fiscal year-end (FYE) 2012. This level of cash flow
compares to US$336 million of debt and US$95 million of cash.
The company's cash flow is exposed to the cycles of the
construction industry and public works in Argentina. While
infrastructure needs remain high, the construction segment is
currently undergoing a deceleration as the government has reduced
funding on future projects. However, BRH's construction backlog
continued to be strong at US$845 million in September 2013
(AR$5,144 million) allowing the company to maintain an important
cash generation for approximately three years. The company is also
exposed to collection risk derived from having the government as
its main counterparty.
CLISA's main activities depend on contractual agreements and
government regulations at the national, provincial and municipal
levels. Exposure to regulatory risk derives from the delay in the
renegotiations of public service contracts. In particular, in its
mass transportation subsidiary Metrovias there has been heighten
political risk since the National Government attempt to transfer
the subway concession to Buenos Aires City. Most of Metrovias
incomes were subsidies from the National Government. However, in
April 2013, Metrovias and SBASE signed an agreement in which SBASE
granted exclusively to Metrovias the operation and maintenance of
the subway, excluding the exploitation of collateral services and
the execution of works and investments. The term of the contract
is 2 years, extendable for one more year by SBASE.
Rating Sensitivities:
The Negative Outlook reflects the close relationship between CLISA
and the Argentina government, which has a 'B' country ceiling and
a 'B' local currency IDR with a Negative Outlook. Without an
upgrade in the sovereign rating of Argentina, CLISA's ratings will
likely not be upgraded. The company will likely not be downgraded
unless the sovereign's LC IDR is downgraded or its 'B-' country
ceiling lowered.
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B A R B A D O S
===============
SAGICOR LIFE: Jamaica Unit Paid Out JM$9BB++ in Claims
------------------------------------------------------
Jamaica Gleaner reports that insurance leader Sagicor Life Jamaica
paid out more than JM$9 billion in claims and other benefits over
the first nine months of the year, a spike of about 18 per cent
relative to the JM$7.76 billion paid out last year. That and
other expenses erased gains at the revenue line, leading to
diminished profits, the Jamaica Gleaner relates.
The report notes that Sagicor Jamaica closed the nine-month period
with JM$3.78 billion of net profit, down from JM$4.14 billion the
previous year.
Group net revenue grew by more than JM$4 billion to JM$27.7
billion, but expenses rose by JM$5 billion to JM$23.6 billion, the
report relates.
Jamaica Gleaner discloses that Sagicor Jamaica's group operations
also comprise an investment subsidiary and its commercial banking
operation. The company is in the process of reorganizing to
create a holding vehicle that will become the direct parent of all
three entities under a shareholder-approved "scheme of
arrangement," the report notes.
The 19 per cent improvement in group revenue was driven by "very
good new business" in the employee benefits segment, including
pensions, as well as group insurance and individual life
insurance, said Sagicor Jamaica Group Chief Financial Officer Ivan
Carter, the report relays.
Sagicor Jamaica paid out JM$7.76 billion. Sagicor Jamaica
President and Chief Executive Officer Richard Byles said the 18
per cent increase in benefits costs reflects portfolio growth, but
also higher death and health claims, more annuities, as well as
policy surrenders, the report says. Health claims account for 46
per cent of the benefits paid, Jamaica Gleaner notes.
Banking and asset management contributed JM$.4 billion of revenue
and JM$583 million of profit, the report relays.
Like Sagicor Life, its subsidiary Sagicor Investments Jamaica
Limited is a public company, but Sagicor Bank Jamaica is privately
held.
The Gleaner notes that Sagicor Investments reported JM$657 million
of profit over nine months ending September. The company is owned
85.45 per cent by Sagicor Jamaica.
The Sagicor Jamaica group is ultimately owned by Sagicor Financial
Corporation of Barbados.
Headquartered in St. Michael, Barbados, Sagicor Life Inc. --
http://www.sagicorlife.com/-- is a financial services company,
through its subsidiaries, offers life and health insurance,
annuities, pensions, property and casualty insurance, and banking
services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2013, Standard & Poor's Ratings Services said that the
'BB+' financial strength and counterparty credit ratings on
Sagicor Life Inc. (Sagicor) and its 'BB-' issue-level ratings on
Sagicor Finance Ltd. remain on CreditWatch with negative
implications where S&P placed them on Feb. 13, 2012.
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B E L I Z E
===========
BELIZE: S&P Affirms 'B-/B' Rating; Outlook Stable
-------------------------------------------------
Standard & Poor's Ratings Services affirmed the 'B-/B' foreign and
local currency long- and short-term ratings on Belize. The rating
outlook is stable.
RATIONALE
The ratings on Belize reflect its lingering high government debt
and interest burden, the vulnerability of external debt service to
external or fiscal shocks, S&P's expectation that current account
deficits will widen, limited growth prospects over the next five
years, and weak political institutions.
Belize's net general government debt remains high at 73% of GDP.
The interest burden--that we expect will average 10.5% of general
government revenues over 2013-2016--and the need to raise the
primary fiscal surplus to 2% of GDP or greater starting in 2014
will limit expenditure flexibility. In March, the government of
Belize completed its second external commercial debt rescheduling
in less than a decade. A nearly 10% reduction of the 2029 bonds'
principal and lower interest payments of the new 2038 bonds more
than halved the projected interest burden from 24% of revenues in
2011 and provides short-term fiscal savings.
The growth prospects are limited for the country of nearly 340,000
persons and $4,700 per capita GDP. S&P revised its 2013 GDP
growth forecast downward to 1.5% from 2.5%, reflecting lower
agricultural exports. Although tourism receipts and FDI in the
agricultural and tourism sectors picked up this year, S&P expects
growth to remain below historical norms at 2.5% on average over
2014-2016.
"We remain cautious about Belize's external liquidity. We expect
Belize will end this year with a current account deficit of 2% of
GDP, and declining oil exports will generate a 3% deficit in 2014.
We estimate that net FDI in agriculture and tourism, capital
account inflows, PetroCaribe and multilateral financing, and a
small drawdown of external reserves will finance Belize's gross
external funding requirement totaling 121% of current account
recipients and usable reserves in 2013-2014. We expect that
falling oil exports and expected compensation to the former
shareholders of two nationalized utilities (presently under
litigation) will widen the current account deficit from 2015.
Absent increased productivity of the tourism and agricultural
sectors or a new petroleum discovery, these could reduce Belize's
external liquidity," S&P said.
S&P's local currency rating is equal to its foreign currency
rating at 'B-' because Belize pegs its exchange rate to the U.S.
dollar and thus has little monetary policy flexibility.
OUTLOOK
The stable ratings outlook reflects S&P's expectation that FDI and
official financing will sustain Belize's external liquidity over
the next 18 months, absent external shocks or natural disasters.
S&P would raise the ratings most likely if the government of
Belize takes steps to materially improve its fiscal position and
the sustainability of its debt profile and if the productivity of
the foreign exchange-generating sectors improves. S&P would lower
the ratings most likely if either Belize's external liquidity or
its fiscal position deteriorates.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts. The chair
ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook.
RATINGS LIST
Ratings Affirmed
Belize
Sovereign Credit Rating B-/Stable/B
Transfer & Convertibility Assessment
Local Currency B-
Senior Unsecured B-
Short-Term Debt B
===========
B R A Z I L
===========
BES INVESTIMENTO: S&P Retains 'BB-/B' Rating on CreditWatch Neg.
----------------------------------------------------------------
Standard & Poor's Ratings Services said that the 'BB-/B' global
scale and 'brA/brA-2' Brazilian national scale issuer credit
ratings (ICRs) on BES Investimento do Brasil (BESI Brasil) remain
on CreditWatch, where we placed them with negative implications on
Sept. 25, 2013.
The CreditWatch placement on BESI Brasil followed the same action
on the company's parents, Portugal-based Banco Espirito Santo S.A.
(BES; BB-/Watch Neg/B) and Banco Espirito Santo de Investimento
S.A. (BESI; BB-/Watch Neg/B) on Sept. 20, 2013 and the Sept. 18,
2013, CreditWatch negative placement of the Republic of Portugal
(BB/Watch Neg/B).
Currently, S&P's ratings on BESI Brasil reflect its 'bbb' anchor
for banks operating primarily in Brazil and its view of the bank's
"moderate" business position, "adequate" capital and earnings,
"moderate" risk position, "below average" funding, and "adequate"
liquidity, as S&P's criteria define these terms.
"We assess BESI Brasil's stand-alone credit profile (SACP) as
'bb', one notch above the parent's current rating and the group
credit profile (GCP). Therefore, the issuer credit ratings on
BESI Brasil reflect no notches of group support. According to our
criteria for group ratings, we generally don't rate a subsidiary
higher than the GCP. We believe the ICR on BESI Brasil must be
below its SACP because its financial profile may deteriorate due
to its parent's weakness. Consequently, a downgrade on BESI
Brasil's parent would cause an immediate downgrade on the
Brazilian bank," S&P noted.
"The CreditWatch negative placement reflects that on BESI Brasil's
parents, as a downgrade of the parents would prompt a downgrade of
BESI Brasil. We expect to resolve the CreditWatch placements once
we have resolved the CreditWatch on BESI Brasil's parents," said
Standard & Poor's credit analyst Sebastian Liutvinas.
OGX PETROLEO: Talks With Bondholders Have Advanced
--------------------------------------------------
Luciana Magalhaes, writing for The Wall Street Journal, reported
that Brazilian oil company OGX Petroleo e Gas Participacoes,
controlled by former billionaire Eike Batista, said in a
regulatory filing on Nov. 27 that talks with bondholders are
advancing but haven't yet come to a conclusion.
According to the report, OGX said it is in talks with creditors
representing more than 50% of the bonds issued by its subsidiary,
OGX Austria GmbH. The company has a total of $3.6 billion in bonds
outstanding.
The oil firm, once the backbone of Mr. Batista's infrastructure
empire, filed for bankruptcy protection at the end of October
after missing a bond interest payment, the report recalled.
The company raised billions of dollars from capital markets to
invest in exploring for oil and gas, mostly in Brazil, but was
unable to meet its ambitious production targets, the report said.
Advisers representing OGX and its main bondholders, U.S.-based
investment firms Pacific Investment Management Co., or Pimco, and
BlackRock Inc. have been in meetings in New York since Nov. 25,
according to a person familiar with the negotiations, the report
related. OGX has asked bondholders for fresh cash to start
production at its Tubarao Martelo oil field, the only field the
company considers economically viable, the person said.
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.
OGX filed for bankruptcy in a business tribunal in Rio de Janeiro
on Oct. 30, 2013, case number 0377620-56.2013.8.19.0001. The
bankruptcy filing puts $3.6 billion of dollar bonds into default
in the largest corporate debt debacle on record in Latin America.
The filing by the oil company that transformed Eike Batista into
Brazil's richest man followed a 16-month decline that wiped out
more than $30 billion of his personal fortune.
The filing, which in Brazil is called a judicial recovery, follows
months of negotiations to restructure the dollar bonds, in which
OGX sought to convert debt to equity and secure as much as $500
million in new funds. OGX said Oct. 29 that the talks concluded
without an agreement. The company's cash fell to about $82 million
at the end of September, not enough to sustain operations further
than December.
OGX PETROLEO: Seeks at Least $150MM in Capital From Bondholders
---------------------------------------------------------------
Luciana Magalhaes at The Wall Street Journal reports that after
posting a nearly $1 billion third-quarter loss, OGX Petroleo e Gas
Participacoes wants to persuade creditors to put up more money as
the company strives to avoid outright failure.
OGX, once the flagship of the industrial empire of former
billionaire Eike Batista, reported a loss of BRL2.1 billion ($915
million) for the third quarter ended in September, a financial
performance that stemmed mainly from a write-down over a failed
deal with Malaysia's Petroliam Nasional Bhd. (Petronas), according
to The Wall Street Journal.
OGX filed for bankruptcy protection in late October with $4
billion in debt.
The WSJ notes that the company, which ended the quarter with $85
million in cash, is currently in talks with bondholders for
additional cash to continue investments in the Tubarao Martelo oil
field, which is expected to start production soon.
The WSJ, citing unnamed sources, relates that in meetings in New
York, advisers for OGX asked bondholders owning 50% of its $3.6
billion in bonds outstanding for at least $150 million in fresh
capital. The group includes U.S. companies Pacific Investment
Management Co., or Pimco, and BlackRock Inc.
The WSJ discloses that one source said bondholders will begin a
due-diligence review of OGX's finances as soon as possible to
decide whether or not to put more money in the company.
If the discussions with bondholders are successful, Mr. Batista
would no longer be the controlling shareholder, one of the people
familiar with the talks said, The WSJ notes. Owners of the
company's bonds would likely take a controlling stake while other
creditors, including service providers and suppliers, would also
have shares in the company, the source said, The WSJ relays.
Mr. Batista currently owns 50.16% of OGX.
OGX is seeking to have the agreement signed in December and
expects to receive the new capital in different tranches, possibly
starting next month, said the same source, who added that the
company has enough cash to continue operating until the end of the
year, The WSJ adds.
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.
OGX filed for bankruptcy in a business tribunal in Rio de Janeiro
on Oct. 30, 2013, case number 0377620-56.2013.8.19.0001. The
bankruptcy filing puts $3.6 billion of dollar bonds into default
in the largest corporate debt debacle on record in Latin America.
The filing by the oil company that transformed Eike Batista into
Brazil's richest man followed a 16-month decline that wiped out
more than $30 billion of his personal fortune.
The filing, which in Brazil is called a judicial recovery, follows
months of negotiations to restructure the dollar bonds, in which
OGX sought to convert debt to equity and secure as much as $500
million in new funds. OGX said Oct. 29 that the talks concluded
without an agreement. The company's cash fell to about $82 million
at the end of September, not enough to sustain operations further
than December.
==========================
C A Y M A N I S L A N D S
==========================
ATHENA OVERSEAS: Members to Receive Wind-Up Report on Dec. 2
------------------------------------------------------------
The members of Athena Overseas Investors Fund will receive on
Dec. 2, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
CHIMA LIMITED: Sole Member to Receive Wind-Up Report on Dec. 17
---------------------------------------------------------------
The sole member of Chima Limited will receive on Dec. 17, 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
Craigmuir Chambers
Road Town Tortola
British Virgin Islands
ESTEKENE MASTER: Shareholder to Receive Wind-Up Report on Dec. 2
----------------------------------------------------------------
The shareholder of Estekene Master Fund Ltd. will receive on
Dec. 2, 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:
Ogier
c/o Jo-Anne Maher
Telephone: (345) 815-1762
Facsimile: (345) 949-9877
ESTEKENE OFFSHORE: Shareholder to Receive Wind-Up Report on Dec. 2
------------------------------------------------------------------
The shareholder of Estekene Offshore Fund Ltd. will receive on
Dec. 2, 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:
Ogier
c/o Jo-Anne Maher
Telephone: (345) 815-1762
Facsimile: (345) 949-9877
LODGE HOLDINGS: Shareholders to Receive Wind-Up Report on Dec. 4
----------------------------------------------------------------
The shareholders of Lodge Holdings Ltd. will receive on Dec. 4,
2013, at 9:00 a.m., the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
Alexandria Bancorp Limited
The Grand Pavilion Commercial Centre
802 West Bay Road
P.O. Box 2428 Grand Cayman KY1-1105
Cayman Islands
Telephone: (345) 945-1111
Facsimile: (345) 945-1122
LUKIAN GLOBAL: Shareholder Receives Wind-Up Report
--------------------------------------------------
The shareholder of Lukian Global Opportunity Fund received on
Nov. 25, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Appleby Trust (Cayman) Ltd.
Clifton House, 75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
MAKKAN LIMITED: Shareholders' Final Meeting Set for Dec. 6
----------------------------------------------------------
The shareholders of Makkan Limited will hold their final meeting
on Dec. 6, 2013, at 10:00 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidators are:
Stuart Brankin
Desmond Campbell
Telephone: (345) 949 5586
c/o Aston Corporate Managers, Ltd.
P.O. Box 1981 Grand Cayman KY1-1104
Cayman Islands
MARIN INTERNATIONAL: Members Receive Wind-Up Report
---------------------------------------------------
The members of Marin International Ltd. received on Nov. 26, 2013,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
UBS Nominees Ltd.
c/o Stephen R. Nelson
Telephone: 949-4544
Facsimile: 949-7073
Charles Adams Ritchie & Duckworth
Zephyr House, 122 Mary Street
P.O. Box 709 Grand Cayman KY1-1107
Cayman Islands
PFM SELECT: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of PFM Select Offshore Fund, Ltd. received on
Nov. 25, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Mark Withy
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6386
PFM TECHNOLOGY: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of PFM Technology Offshore 2x Fund, Ltd. received
on Nov. 25, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Mark Withy
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6386
SAN SHAN: Shareholder to Receive Wind-Up Report on Dec. 6
---------------------------------------------------------
The shareholder of San Shan SPV I, Ltd. will receive on Dec. 6,
2013, at 8:30 a.m., the liquidator's report on the company's wind-
up proceedings and property disposal.
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
TSAF INVESTOR I: Shareholders to Receive Wind-Up Report on Dec. 4
----------------------------------------------------------------
The shareholders of TSAF Investor I Inc will receive on Dec. 4,
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:
Krys Global VL Services Limited
c/o Christopher Smith
Governor's Square, Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 21237 Grand Cayman KY1-1205
Cayman Islands
Telephone: +1 (345) 947 4700
Facsimile: +1 (345) 946 6728
TSAF INVESTOR II: Shareholders to Receive Wind-Up Report on Dec. 4
------------------------------------------------------------------
The shareholders of TSAF Investor II Inc will receive on Dec. 4,
2013, at 10:10 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Krys Global VL Services Limited
c/o Christopher Smith
Governor's Square, Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 21237 Grand Cayman KY1-1205
Cayman Islands
Telephone: +1 (345) 947 4700
Facsimile: +1 (345) 946 6728
TSAF INVESTOR III: Shareholders to Hear Wind-Up Report on Dec. 4
----------------------------------------------------------------
The shareholders of TSAF Investor III Inc will receive on Dec. 4,
2013, at 10:20 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Krys Global VL Services Limited
c/o Christopher Smith
Governor's Square, Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 21237 Grand Cayman KY1-1205
Cayman Islands
Telephone: +1 (345) 947 4700
Facsimile: +1 (345) 946 6728
WESTERN ASSET: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Western Asset Real Alpha Portfolio, Ltd
received on Nov. 27, 2013, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Gavin L. James
Western Asset Management Corporation
385 East Colorado Boulevard
Pasadena CA 91101
United States of America
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C H I L E
=========
CHILE MINING: Asher Enterprises Held 9.9% Stake as of Nov. 15
-------------------------------------------------------------
In a Schedule 13G filed with the U.S. Securities and Exchange
Commission, Asher Enterprises, Inc., disclosed that as of Nov. 15,
2013, it beneficially owned 1,115,296 shares of common stock of
Chile Mining Technologies, Inc., representing 9.99 percent of the
shares outstanding. A copy of the regulatory filing is available
for free at http://is.gd/9zy60Q
About Chile Mining
Chile Mining Technologies Inc. is a mineral extraction company
based in the Republic of Chile, with copper as its principal "pay
metal." Its founders, Messrs. Jorge Osvaldo Orellana Orellana and
Jorge Fernando Pizarro Arriagada, have refined the electrowin
process in a way that permits the electrowin process to be used at
a relatively small mine and/or tailings sites. Electrowinning is
a process in which positive and negative electrodes are placed in
an acidic solution containing copper ions, and an electric current
passed through the solution causes the copper to be deposited on
the negative electrodes so that it can be collected.
Chile Mining had a net loss of $4.38 million on $261,089 of sales
for the year ended March 31, 2013, as compared with a net loss of
$3.94 million on $433,554 of sales during the prior fiscal year.
The Company's balance sheet at June 30, 2013, showed $6.88 million
in total assets, $11.59 million in total liabilities and a $4.71
million stockholders' deficiency.
Schwartz Levitsky Feldman LLP, in Toronto, Ontario, Canada, issued
a "going concern" qualification on the consolidated financial
statements for the year ended March 31, 2013. The independent
auditors noted that the continuance of the Company is dependent
upon its ability to obtain financing and upon future profitable
operations from the production of copper. This raises substantial
doubt about it ability to continue as a going concern
===============
C O L O M B I A
===============
EMPRESA DE ENERGIA: S&P Retains 'BB+' Rating Following Add-On
-------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'BBB-' long-term
corporate credit and 'BB+' issue ratings on Empresa de Energia de
Bogota S.A.E.S.P. (EEB) remain unchanged following the proposed
$27 million incremental add-on to its senior unsecured notes due
2021. The company will use the proceeds mainly to finance
investments in EEB's Guatemalan subsidiaries, Trecsa and EEBIS.
The transaction doesn't affect S&P's assessment of EEB's financial
risk profile as "intermediate." S&P's assessment considers its
expectation that EEB's debt to EBITDA-plus-dividends ratio will
remain about 3.2x, funds from operations to debt of 20% due to its
likely significant capital expenditures in 2013 and 2014, and an
EBITDA interest coverage of about 3.7x. Due to the stability of
the dividend cash flows--thanks to the shareholder agreement with
Endesa, the operating owner of Emgesa and Codensa, to distribute
100% of its net profit--and that dividends represent about 40% of
EEB's EBITDA generation, S&P considers them in its debt to EBITDA
calculation. These ratios don't include Emgesa's and Codensa's
debt. EEB partly owns Emgesa and Codensa.
The rating on EEB's senior unsecured debt reflects its structural
subordination relative to the company's priority liabilities at
the subsidiary level.
RATING LIST
Empresa de Energia de Bogota S.A.E.S.P.
Corporate credit BBB-/Stable/--
Senior unsecured BB+
===========
M E X I C O
===========
AXTEL: Moody's Cuts Corporate Family Rating to 'Caa3'
-----------------------------------------------------
Moody's Investors Service downgraded Axtel's corporate family
rating to Caa3 from Caa1 and its existing senior unsecured global
notes to Ca from Caa2 following the company's announcement that it
offers to exchange up to USD 110 million out of USD 268 million in
senior unsecured global notes maturing in 2017 and 2019 for senior
secured notes due 2020. For Moody's this offer constitutes a
distressed exchange and thus a default event.
Ratings Rationale:
On November 25, 2013, Axtel announced an offer to exchange up to
USD 110 million of the company's outstanding 7.625% USD 133
million in senior unsecured notes due 2017 and 9.00% USD 134.6
million in senior unsecured notes due 2019 for up to USD 110
million in 7.00% peso-denominated senior secured convertible
dollar-indexed notes due 2020.
The exchange offer expires on December 20, 2013. The 2017 notes
rank number one on preference for exchange at a ratio of 98.5%
before December 6, 2013 (the "Early Tender Date") and 91%
thereafter. On the other hand, the notes due 2019 offer an
exchange ratio of 87.5% prior to the early tender date and 80%
thereafter.
In addition to the exchange, the company announced a private
placement of additional USD 36 million to its senior secured notes
due 2020 for a maximum combined add-on of USD 146 million.
Moreover, Axtel announced in recent weeks that the company
obtained several revolving lines of about USD 35 million aimed to
strength the company's liquidity, which has been diminished by the
company's operating losses associated with the undertaking of
certain government projects, which has depleted working capital.
Axtel's credit metrics and capital structure will deteriorate due
to increased debt that will take the company's adjusted leverage
up to 3.5 times on a pro forma basis from current 3.2 times as of
September 30, 2013. Secured debt will also increase to 68% from
47% of total, leaving unsecured debt holders on a weaker position.
The continued presence of liquidity risk and high working capital
requirements support the negative outlook on the ratings. Given
the low cash balance, of about USD 49 million as of September 30,
2013, the proposed exchange, if successful, will help reduce the
company's interest expenses and lower pressure on financial cash
flow. However, Axtel's liquidity position will remain weak and
Moody's foresees limited prospects of a short term solution.
Axtel's Caa3 corporate family rating reflects uncertainties around
litigation on interconnection and termination rates both with
Mexican mobile and wireline telcos. If the courts find against
Axtel, its liquidity will be impacted and long term viability
jeopardized. Although recent asset sales improved liquidity,
uncertainties around disputes on telecom tariffs plus the
company's need to increase capex in order to grow revenues will
continue to place pressure on its liquidity situation. Axtel's
ratings also consider the company's weak operating performance in
recent years, given the highly competitive nature of the telecom
industry in Mexico; a small revenue size; and the negative free
cash flow generation. Somewhat mitigating these credit negatives
is Axtel's greater network investments over the last couple of
years and the quality of its network.
Based in Monterrey, Nuevo Leon, Mexico, Axtel is a competitive
local telephone company providing bundled products including
voice, data and Internet services to business and residential
users within Mexico. Axtel is the second largest fixed line
telecom in Mexico. During the last twelve months ended in
September 30, 2013, the company's revenues reached USD 747 million
with a 34.4% adjusted EBITDA margin.
CORPORACION INTERAMERICANA: Moody's Puts B3 CFR on Review
---------------------------------------------------------
Moody's Investor Service placed the B3 global corporate family
rating on Corporacion Interamericana de Entretenimiento, S.A.B. de
C.V.'s ("CIE") on review for upgrade. The rating action was
prompted by the company's improved credit metrics resulting from a
more comfortable debt maturity profile and lower debt burden.
The debt instruments affected by Moody's rating action are:
-- USD 13.65 million in 8.875% guaranteed global notes due
6/14/15: B1 rating placed on review for upgrade
Ratings Rationale:
Recently, CIE has managed to improve its liquidity profile
following the sale of a number of assets since 2012 in order to
raise cash to repay debt maturing in the short and medium term.
Currently, CIE has no material debt payment due before 2018, which
is for an amount of MXN 740 million; next debt payment is
scheduled for 2015, for about MXN 238 million. Simultaneously, the
company's adjusted debt leverage declined materially from 6.8x in
2011 and 2.9x in 2012 to 2.1x in fiscal year 2013, as expected by
Moody's.
During the ratings review period, Moody's will focus on CIE's
operating and profitability prospects under the new business model
as well as on its financial policies going forward.
CIE is the sole vertically integrated out-of-home entertainment
group in Mexico. In 2014, Moody's expects that CIE's revenues will
be driven by about 75% from the Entertainment division (65% of
EBITDA) and about 22% from the Commercial division (29% of
EBITDA), in charge of marketing and publicity services. As of LTM
September 2013, revenues and adjusted EBITDA amounted to about USD
551 million and USD 65 million, respectively.
Corporacion Interamericana de Entreten SAB CV's ratings were
assigned by evaluating factors that Moody's considers relevant to
the credit profile of the issuer, such as the company's (i)
business risk and competitive position compared with others within
the industry; (ii) capital structure and financial risk; (iii)
projected performance over the near to intermediate term; and (iv)
management's track record and tolerance for risk. Moody's compared
these attributes against other issuers both within and outside
Corporacion Interamericana de Entreten SAB CV's core industry and
believes Corporacion Interamericana de Entreten SAB CV's ratings
are comparable to those of other issuers with similar credit risk.
=================
N I C A R A G U A
=================
* NICARAGUA: To Get US$186MM IDB Contingent Loan for Calamities
---------------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a US$186
million contingent loan to help Nicaragua mitigate the impact that
severe or catastrophic natural disasters could have on its public
finances.
Due to its geographic location, the country is highly exposed to
meteorological and geophysical threats such as earthquakes,
floods, tropical storms, and volcanic eruptions. In fact,
Nicaragua is the second most vulnerable country in the world to
hurricanes and tropical storms, and ranks thirtieth in the world
in its vulnerability to earthquakes. Historically, natural
disasters have occurred with great frequency in Nicaragua and, in
recent decades, their occurrence has been trending upwards. In
the last 40 years alone, the country has experienced 53 natural
disasters of different types, and has posted economic losses of
approximately US$2.728 billion, affecting more than 3.9 million
people.
The loan will provide Nicaragua with rapid access to liquid
resources so that it can deal, on a timely basis, with
extraordinary expenditures that could arise in emergencies caused
by severe or catastrophic natural disasters. This operation will
help Nicaragua not only improve its financial planning but also
promote the development of effective mechanisms for the
comprehensive management of natural disaster risks through the
Comprehensive Natural Disaster Risk Management Program (CNDRMP)
required to access the proceeds of this loan. The CNDRMP promotes
improvements in the identification, reduction, and financial
management of risks, as well as in disaster management.
The IDB financing consists of a US$93 million 30-year loan from
the Bank's ordinary capital with a 6-year grace period and fixed
interest rate. An additional US$93 million is from the Fund for
Special Operations for a 40-year term, with a 40-year grace period
and 0.25 percent interest rate.
=======
P E R U
=======
HOCHSCHILD MINING: Moody's assigns Ba1 Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service assigned a Ba1 corporate family rating
to Hochschild Mining plc. (Hochschild) and a Ba1 rating to its
proposed senior unsecured notes of up to USD 350 million due in
2020/2023 to be issued by Compania Minera Ares S.A.C., but fully
and unconditionally guaranteed by Hochschild plc and its main
subsidiaries. The outlook is stable. This is the first time
Moody's has rated Hochschild.
Issuer: Hochschild Mining plc
Assignments:
Corporate Family Rating, Assigned Ba1
Oulook, Stable
Issuer: Compania Minera Ares S.A.C.
Assignments:
Senior Unsecured Notes, Assigned Ba1
Oulook, Stable
Ratings Rationale:
"The Ba1 rating reflects Hochschild 's long history of stable
financial performance, strong corporate governance standards and
good silver cost position, which should help support the company's
earnings and credit metrics at a lower metal price environment for
gold and silver" said Soummo Mukherjee, a Vice President - Senior
Credit Officer at Moody's. The rating also incorporates
Hochschild's strong credit metrics, even after the planned bond
issuance. "Constraining the company's ratings are its limited
size, concentration in two precious metals (68% silver and 32%
gold in 2012) and susceptibility to the volatility of its prices,
as well as significant exposure of production and cash flows to
its San Jose mine in Argentina (B3/neg)" added Mukherjee.
With two of Hochschild's aging mines expected to cease operations
in the near-future (Moris and Ares), there will be a reliance on
only three core mines (Pallancata and Arcata in Peru and San Jose
in Argentina), with the San Jose mine in Argentina, accounting for
approximately 40% of 2013 EBITDA. The concentration of production
and cash flows in such few mines until the Inmaculada mine starts
expected production at the end of 2014 is also a constraining
factor in Hochschild's Ba1 rating, especially if the Inmaculada
production experiences any delay.
The notes will primarily be used to finance the acquisition of the
remaining 40% stake in International Minerals Corporation ("IMZ"),
announced on October 2nd, 2013, for a total consideration of
approximately USD 280 million (US$270 million in cash). IMZ owns
the remaining 40% interest in Minera Suyamarca S.A.C., which owns
the Pallancata mine and the Inmaculada advanced project in Peru.
The acquisition is expected to close in the fourth quarter of
2013.
The acquisition of IMZ, together with the completion of the
Inmaculada project, is a positive development for Hochschild. As a
result, the average all-in costs will be reduced by these low cost
operations, fixed costs will be further diluted by the higher
production volumes and the importance of Argentina in the
portfolio will be reduced. The execution risk of the Inmacualda
project is perceived as low given Hochschild's expertise in
underground mining in southern Peru, the fact that all key permits
have been received, the progress already made in building the
project and the good community relations that the company enjoys
in this part of Peru.
Hochschild's San Jose mine, in Argentina, operates under stability
certificates by the Ministry of Mines in the country, whereby the
national and provincial tax regimes are frozen for a period of 30
years from May 15, 2006 and June 20, 2006, respectively. A
termination of such stability agreements could result in an
increase in the amount of tax or royalties Hochschild pays in
Argentina. Moreover, the ratings consider Hochschild's inability
to access the Argentine cash flows, as repatriation of dividends
in foreign currencies requires specific approval by the Central
Bank of Argentina, which has seldom granted such approvals since
2011. However, Hochschild has received Central Bank approval to
repatriate US$3.5 million in dividends during 2013.
Hochschild, along with industry in general, has experienced
significant cost pressures over the past several years. The cost
pressures have resulted from general industry inflation related to
lower mine grades, new mine development costs, and changing
royalty and tax regimes in both developed and developing
countries.
This year, due to the drop in silver and gold prices, the company
started a cash flow optimization program mainly aimed to reduce
costs, expenses and capex in a volatile precious metal price
environment. The program focuses on all areas of the business,
such as operating costs, maintenance capex and administrating
costs, including headcount reduction, as well as re-focusing the
companies' exploration program going forward. These actions are
expected to yield annualized savings of around USD 200 million by
the end of 2014.
The stable outlook reflects Moody's expectation that Hochschild
will prudently manage its liquidity and debt levels in a
conservative manner and will make necessary spending and other
adjustments in the case of a further than expected contracting
metals price environment.
Upward rating movement will mainly be driven by reduced risk
exposure to Argentina and evidenced ability to repatriate cash
flows from there in combination with improved overall scale in
terms of revenues, production and operating mines. To the extent
that the company is able to successfully complete planned
developments, further diversifying its mine revenue base and
enhancing its reserves, the outlook or rating could be positively
impacted.
Ratings could be negatively impacted if profitability and cash
generation capacity materially deteriorates, for example, due to a
combination of a drop in metals prices and increase in production
costs significantly exceeding Moody's expectation. Specifically,
if Mining EBIT margin falls and is sustained below 15% with cash
generation being negative on a sustained basis, ratings could come
under downward pressure. Negative pressure could also result from
material debt financed acquisitions such that adjusted leverage
remains above 3.0x for an extended period.
Hochschild Mining PLC ("Hochschild"), headquartered in Lima, Peru,
is primarily a producer and seller of gold and silver, mined from
its four underground mines, with three located in southern Peru
and one in southern Argentina, and one open-pit mine in northern
Mexico. For the year ended December 31, 2012, Hochschild reported
consolidated revenues of $818 million.
* PERU: To Get US$40-Million IDB Loan for Agricultural Sector
-------------------------------------------------------------
Peru will receive a US$40 million loan from the Inter-American
development Bank (IDB) to help incorporate latest technology in
the agricultural sector and close existing productivity gaps.
The comprehensive project is part of Peru's National Agricultural
Innovation Program (PNIA for its acronym in Spanish) aimed at
increasing agricultural sector growths through productivity
increases rather than by expanding land use and labor force.
While agriculture employs one quarter of Peru's economically
active population and contributes 8 percent of the GDP, land and
labor productivity levels are very low-especially in marginal
areas of the Andes and the Amazon-and significant yield gaps exist
for many crops when compared to the best performing Latin American
countries.
The project for the improvement of PNIA's Agricultural Innovation
Strategic Services is expected to triple the number of
technologies transferred annually to farmers and help increase the
annual growth rate in yields of priority products such as
potatoes, coffee, maize, rice and quinoa by 0.5 percent,
benefiting 1.6 million of producers, of which 44 percent fall
below the poverty line and 16 percent are headed by women.
The IDB loan has a maturity of 9.75 years, with a 8.25 grace
period and LIBOR-based interest rate.
===============================
T R I N I D A D & T O B A G O
===============================
* T&T: Minister Asks Exporters Not to Be Afraid of Boycott Threats
------------------------------------------------------------------
Trinidad and Tobago Newsday reports that Trinidad and Tobago
Finance Minister Larry Howai advised local exporters, not to be
afraid of threats of a boycott of their products in Jamaica.
In offering this advice, Minister Howai also called for good sense
to prevail, and there must be no boycott of any Jamaican products
sold in the country, according to Trinidad and Tobago Newsday.
Minister Howai, the report notes, said he did not get the
impression the talk of a boycott was a "widespread point of view"
particularly in that country's corporate sector. The report
relates that Minister Howai said while this may be an issue
amongst some Jamaican businesses and a view at the general level
in Jamaican society, one has to be careful and mindful that this
is "a view that could influence political thinking."
Saying Jamaica's corporate sector understands that TT's
immigration officers acted appropriately in denying some Jamaican
nationals entry to TT, Minister Howai said: "The issue for us is
to see how best by way of communication and dialogue, we can seek
to diffuse the situation", the report discloses.
Saying local companies who export products to Jamaica could help
diffuse any tensions in this situation by exercising greater
corporate social responsibility in their activities in Jamaica,
Minister Howai said there must be no boycott of any Jamaican
products entering this country, the report relays.
Noting that TT manufacturers are dominant in Caricom because they
provide quality goods at competitive prices, Minister Howai said:
"I think even the Jamaican public themselves would recognize that
we do provide good quality products at a very competitive price,
and therefore in a sense they would hurt themselves where they
continue to get value for money," the report discloses.
The report adds that Minister Howai did not think the current
situation with the Dominican Republic would affect the Economic
Partnership Agreement between the European Union (EU) and
Cariforum (Caricom and the Dominican Republic.
***********
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 * * *