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/raid1/www/Hosts/bankrupt/TCRLA_Public/140203.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 Monday, February 3, 2014, Vol. 15, No. 23 Headlines B A H A M A S BAHAMAS: IMF Board Concludes 2013 Article IV Consultation B A R B A D O S BARBADOS: Lays Off First Set of Public Workers Amid Ailing Economy B O L I V I A ALIANZA SEGUROS: Moody's Upgrades GLC Rating to B1; Outlook Stable B R A Z I L DRIVER BRASIL: Moody's Assigns 'Ba2' Rating on Mezzanine Shares C A Y M A N I S L A N D S AM INVESTMENT V: Commences Liquidation Proceedings AM INVESTMENT E FUND: Commences Liquidation Proceedings AM INVESTMENT GP: Commences Liquidation Proceedings AM INVESTMENT GP II: Commences Liquidation Proceedings BLUE EDGE: Commences Liquidation Proceedings DYNASTY INTERNATIONAL: Commences Liquidation Proceedings FINANCIAL INSTITUTION: Commences Liquidation Proceedings FUTURA FUND: Commences Liquidation Proceedings FUTURA INITIAL: Commences Liquidation Proceedings LONGWAY CAPITAL: Placed Under Voluntary Wind-Up MACRITCHIE RESOURCE: Placed Under Voluntary Wind-Up NEWPORT FINANCE: Placed Under Voluntary Wind-Up NWQ CONCENTRATED: Commences Liquidation Proceedings NWQ CONCENTRATED MASTER: Commences Liquidation Proceedings P2 HOLSTEN KYOTO: Commences Liquidation Proceedings P2 HOLSTEN NARA: Commences Liquidation Proceedings S.A.C. PEI CB: Commences Liquidation Proceedings STAR DREAMS: Commences Liquidation Proceedings C H I L E CORP GROUP: S&P Puts 'BB-' Rating on CreditWatch Developing D O M I N I C A N R E P U B L I C DOMINICAN REP: Tax Agency Scrambles to Avert Shutdown by Retailers P U E R T O R I C O PUERTO RICO: Seeks US$2-Billion Debt Offering X X X X X X X X X BOND PRICING: For the Week From Jan. 27 to Jan. 31, 2014 - - - - - ============= B A H A M A S ============= BAHAMAS: IMF Board Concludes 2013 Article IV Consultation --------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with The Bahamas, and considered and endorsed the staff appraisal without a meeting. Real Gross Domestic Product (GDP) is projected to grow at nearly 2 percent for 2013, similar to 2012, but well below pre-global crisis performance. Unemployment rose to 16.2 percent in mid- 2013. While tourist arrivals and expenditures have been subdued, brisk investment and construction for the Baha Mar resort project have helped support economic activity. As domestic demand remains weak and fuel prices are softening, inflation is generally under control. The fiscal deficit widened to 51/2 percent of GDP in the Fiscal Year 2012/13 (July 1-June 30), mainly due to customs revenue underperformance; and the current account deficit reached 17« percent of GDP in 2012, up from 131/2 percent in 2011, largely driven by sustained goods and services imports related to Baha Mar. Foreign reserves were the equivalent of 1.6 months of imports (2.8 months of non-FDI imports) at end-October 2013. Economic expansion should strengthen from 2014 onward, with higher growth in the U.S. and the opening of Baha Mar helping to reduce the high unemployment rate. The authorities' budget consolidation efforts should help improve the fiscal position. Central government debt is projected to peak at nearly 60 percent of GDP in fiscal year 2014/15, and to decline to 55 percent of GDP in fiscal year 2017/18. The completion of Baha Mar should reduce construction imports and boost tourism services exports, strengthening external stability. The banking system has ample capital and liquidity buffers. Elevated non-performing loans levels have stabilized, and will likely recede slowly as growth and employment pick up, and the debt overhang is reduced. Nevertheless, private sector demand for bank credit will likely remain subdued over the near term. There remain risks to the outlook, including shortfalls in Baha Mar performance, a delay in fiscal consolidation, and lower than anticipated tourist arrivals in the event that global growth weakens. The risks highlight the need for timely implementation of plans for fiscal consolidation and economic diversification. Executive Board Assessment In concluding the 2013 Article IV consultation with The Bahamas, Executive Directors endorsed the staff appraisal, as follows: The Bahamian economy is recovering from the global financial crisis, but at a painfully slow pace. Economic activity should recover more strongly from 2014 onward with firmer growth in the U.S. and the opening of Baha Mar, helping to reduce high unemployment. However, growth performance over the medium term will also depend on success in addressing a number of challenges going forward, including diversifying tourist source markets and the tourism experience and expanding incoming airlift capacity; advancing efforts to close infrastructure bottlenecks and workforce skills shortages; and strengthening non-tourism sectors. Steadfast and timely execution of needed reforms will be crucial. Rigorous implementation of the authorities' fiscal consolidation plan is essential to recapturing medium-term budget and debt sustainability. The VAT is the cornerstone of the fiscal adjustment program; the authorities should ensure its timely and successful launch. On the spending side, the efforts to reinforce expenditure controls and monitoring should be accelerated, especially as regards goods and services spending and transfers; and reforms to improve the weak financial position of key public corporations and rein in transfers and subsidies should be given high priority. The introduction of a fiscal rule would enhance the predictability and credibility of budget policies. This would notably help ensure that the authorities' public finance reforms are implemented within a well-articulated and durable medium-term fiscal framework. The reform's details and implementation timeframe authorities should be fleshed out; and the Fund stands ready to provide technical assistance. The exchange rate peg has served The Bahamas well, and should be further supported by efforts to restore budget and external viability and rebuild depleting policy buffers. The authorities are encouraged to closely adhere to prudent fiscal policies and structural reforms aimed at preserving strong economic fundamentals. The steady implementation of key Financial Sector Assessment Program recommendations and enhanced monitoring of developments in the financial system are commendable. The establishment of a Systemic Risk Surveillance Committee, creation of a credit bureau, and strengthening of the deposit insurance system should further strengthen the resilience of the financial system and improve its already generally favorable standing. A financial crisis management and resolution plan is also under preparation with Fund technical assistance. The high level of non-performing loans, however, calls for intensifying the monitoring of financial institutions. The authorities' efforts to craft a comprehensive national development plan (NDP) in 2014 to guide development efforts over the long run and insulate policies from the political cycle are welcome. It would be important to ensure that the plan is completed in a timely fashion and backed by a broad cross section of society to maximize its probability of success. Sustained efforts will be needed to enhance structural competitiveness by strengthening the business environment, improving educational standards to foster human capital development, and identifying clear strategies for the development of islands and key sectors such as tourism, agriculture, financial services, and port activities. Government initiatives in these areas should be informed by the NDP's pertinent guidance and recommendations. =============== B A R B A D O S =============== BARBADOS: Lays Off First Set of Public Workers Amid Ailing Economy ------------------------------------------------------------------ Trinidad Express reports that the Barbados government began laying off the first batch of workers in the public service, as it seeks to reverse an ailing economy. The Freundel Stuart administration had been forced to push back the January 15 date for sending home 3,000 public workers over the coming months, after indicating it had not drawn up the list of employees to be sent home, according to Trinidad Express. The report relates that workers employed at the National Housing Corporation (NHC) were among the first to receive dismissal letters after the government had earlier this month rejected proposals from the National Union of Public Workers (NUPW) as not going far enough to meet the objective of a significant cut in public-sector expenditure. The report notes that NUPW General Secretary Denis Clarke told reporters some of the workers dismissed had been with the NHC for as long as 15 years, and complained the government had not kept its promise to provide the union with the official retrenchment list. ============= B O L I V I A ============= ALIANZA SEGUROS: Moody's Upgrades GLC Rating to B1; Outlook Stable ------------------------------------------------------------------ Moody's Latin America Agente de Calificacion de Riesgo has upgraded the global local currency (GLC) and/or national scale (NS) insurance financial strength (IFS) ratings of 12 Bolivian insurers, following improvement in Bolivia's insurance operating environment, in particular as reflected in Moody's Investors Service's updated sovereign credit factor assessment for Bolivia (see our Government of Bolivia Credit Opinion, published December 6, 2013). The rating agency noted that an improving operating environment tends to have a positive influence on insurers' credit profiles, as it translates into improved business and financial fundamentals for participants in the industry sector. Moody's has taken the following rating actions: Alianza Seguros y Reaseguros: GLC and NS IFS ratings upgraded to B1 and Aa2.bo, respectively, from B2 and Aa3.bo. Both ratings carry a stable outlook. Alianza Vida Seguros y Reaseguros: GLC and NS IFS ratings upgraded to B1 and Aa2.bo, respectively, from B2 and Aa3.bo. Both ratings carry a stable outlook. Bisa Seguros y Reaseguros: GLC and NS IFS ratings upgraded to Ba3 and Aaa.bo, respectively, from B1 and Aa2.bo. Both ratings carry a stable outlook. BUPA Insurance (Bolivia): GLC IFS rating confirmed at Ba3. NS IFS rating upgraded to Aaa.bo from Aa1.bo. Both ratings carry a stable outlook.Compa¤¡a de Seguros y Reaseguros Crediseguro Seguros Personales: GLC and NS IFS ratings upgraded to B1 and Aa2.bo, respectively, from B2 and Aa3.bo. Both ratings carry a stable outlook. Fortaleza: GLC and NS IFS ratings upgraded to B2 and Aa3.bo, respectively, from B3 and A1.bo. Both ratings carry a stable outlook. La Boliviana Ciacruz de Seguros y Reaseguros: GLC and NS IFS ratings upgraded to Ba3 and Aa1.bo, respectively, from B1 and Aa2.bo. Both ratings carry a stable outlook. La Boliviana Ciacruz Seguros Personales: GLC and NS IFS ratings upgraded to Ba3 and Aa1.bo, respectively, from B1 and Aa2.bo. Both ratings carry a stable outlook. La Vitalicia Seguros y Reaseguros de Vida: GLC and NS IFS ratings upgraded to B1 and Aa2.bo, respectively, from B2 and Aa3.bo. Both ratings carry a stable outlook. Latina Seguros Patrimoniales: GLC and NS IFS ratings upgraded to B1 and Aa2.bo, respectively, from B2 and Aa3.bo. Both ratings carry a stable outlook. Nacional Vida Seguros de Personas: GLC and NS IFS ratings upgraded to B1 and Aa2.bo, respectively, from B2 and Aa3.bo. Both ratings carry a stable outlook. Seguros Illimani: GLC IFS rating affirmed at Caa1. NS IFS rating upgraded to Baa1.bo from Baa2.bo. Both ratings carry a stable outlook. These rating actions conclude a review for possible upgrade initiated on December 11, 2013. Ratings Rationale According to Moody's, the upgrade of the insurers' ratings reflects that the companies' credit profiles benefit from improvement in Bolivia's insurance operating environment, as the combined impact of the country's improved economic strength, institutional strength and susceptibility to event risk benefits these insurers' credit profiles. The improvement in the insurance operating environment is particularly important because country- specific trends and developments can over time have as much of a bearing on insurers' long-term credit profile and viability as the intrinsic strength of their own operations. Although Seguros Illimani's GLC IFS rating was affirmed at Caa1 given its weak credit profile relative to other insurers in the Bolivian marketplace, the upgrade of the company's NS IFS rating to Baa1.bo from Baa2.bo reflects that the improved operating environment assessment in Bolivia does marginally improve its relative position among other companies rated in the country. With regards to the confirmation of BUPA Insurance (Bolivia)'s Ba3 GLC IFS rating, Moody's noted that the improvement in Bolivia's operating environment did not translate into a meaningfully improved credit profile that would merit an upgrade of the company's Ba3 GLC IFS rating. However, the company's relative positioning among other issuers in the country did benefit from Bolivia's improved assessment, which is reflected by Moody's upgrade of the company's NS IFS rating to Aaa.bo from Aa1.bo. Among the factors that could lead to a further upgrade of the Bolivian insurers' ratings are 1) an additional improvement in Bolivia's operating environment and/or upgrade of the Bolivian sovereign rating, or 2) improved capital adequacy, asset quality and profitability. Conversely, the factors that could lead to a downgrade of the Bolivian insurers' ratings are 1) a deterioration of the country's operating environment and/or sovereign rating, or 2) a worsening trend in the companies' capital adequacy, asset quality, and profitability. =========== B R A Z I L =========== DRIVER BRASIL: Moody's Assigns 'Ba2' Rating on Mezzanine Shares --------------------------------------------------------------- Moody's America Latina has assigned definitive ratings to the shares issued by Driver Brasil Two Banco Volkswagen Fundo de Investimento em Direitos Creditorios Financiamento de Veiculos (Driver Brasil Two FIDC or the Issuer), a securitization backed by a pool of auto loans originated by Banco Volkswagen S.A. Issuer: Driver Brasil Two FIDC Senior Shares - Aaa.br (sf) (National Scale) & Baa2 (sf) (Global Scale, Local Currency) Mezzanine Shares - A1.br (sf) (National Scale) & Ba2 (sf) (Global Scale, Local Currency) RATINGS RATIONALE The ratings are based on the following factors, among others: The initial 11.08% credit enhancement for the Senior Shares and 7.02% for the Mezzanine Shares in the form of overcollateralization (OC). After closing, the OC must reach the 12.5% Target Senior OC Ratio and 7.0% Target Mezzanine OC Ratio to allow dividend payments to equity. Asset performance triggers that further increase the Senior and Mezzanine Target OC Ratio. Static nature of transaction with no revolving period and no additional on-going purchases of assets after the transaction's closing. Principal and Interest on the Senior and Mezzanine Shares will be paid on a monthly basis. The discount rate used to calculate the NPV of the pool was derived from the weighted average financing cost of the Fund (weighted average rate of the swap agreements and servicing and administrative fees), plus 145 bps of excess spread to cover net losses. Good credit quality of the static target pool earmarked for sale to the FIDC. The assets backing Driver Brasil Two FIDC are vehicle loans originated by Banco Volkswagen. The securitized pool includes loans to finance light vehicles. The definitive pool as of November 30, 2013 is highly diversified consisting of 57,792 borrowers. Approximately 92.8% of the loans are to finance the acquisition of new vehicles, and 7.2% of the loans finance used vehicles . Loans are extended to a diversified retail customer base of private individuals, representing 90.1% of pool balance. The original weighted average term is 45 months. The pool has an average seasoning of 12 months, resulting in a weighted average remaining term of 33 months. The role of a highly rated third party, Banco Bradesco (rated Baa1/Aaa.br), as the master servicer and its subsidiary, BEM DTVM as the trustee of the transaction. The transaction benefits from Bradesco's operational quality; The overall transaction structure and the legal framework, including the bankruptcy remoteness of the issuer and well established Brazilian laws and regulations for the securitization of vehicle loans; The senior and mezzanine shares accrue a floating-rate interest of the CDI Rate (Brazilian Interbank Rate) plus a fixed spread of 0.92% and 1.70% respectively, with daily accrual, and their final maturity will take place 60 months after closing. The maturity could be extended by the trustee, on a discretionary basis, for a maximum period of 12 additional payment dates counted from the maturity date of the credit right with the latest maturity date. Payments to subordinated shares are permitted on a monthly basis as long as (a) Target Senior OC Ratio, the Senior OC Floor, the Target Mezzanine OC Ratio and the Mezzanine OC Floor are maintained and (b) no evaluation or early liquidation event is triggered. Interest Rate Swaps The fund entered into an interest rate swap with Ita£ Unibanco S.A. to mitigate the interest rate risk arising from the fixed rate assets and floating rate liabilities. The interest rate swap will adequately hedge the interest rate risk on the senior share and mezzanine shares. Moody's notes that the swap's notional volume closely tracks the outstanding notional volumes of the senior and mezzanine shares as they decrease, thereby satisfactorily eliminating actual interest rate mismatches incurred. Early Swap Termination Risk may arise from the early termination of the swaps given i.) a positive market value of the swap to the fund upon swap counterparty default or ii.) open interest rate risk position to the fund should the swap be early terminated. Moody's reviewed the interest rate swap master agreement, which included a number of events of default and events of early termination upon which the swap may be terminated, exposing the fund to interest rate risk. Whilst in Moody's opinion the inclusion of the events of early termination/ event of default language is commensurate with the assigned provisional rating on the senior and mezzanine shares given the remoteness of any such event occurring, the overall effect of these triggers is viewed as a credit negative. Banco Bradesco S.A. will act as Master Servicer (custodiante) of the transaction as well as payment bank. Its responsibilities include, among other duties, verifying that all receivables purchased by the fund meet certain eligibility criteria, monitoring the early amortization triggers, in addition to managing all of the Issuer's daily financial and operating activities. BEM DTVM S.A. (Banco Bradesco Group) will be the trustee. BRAM DTVM (Banco Bradesco Group) will be the fund manager. Banco Volkswagen (not rated by Moody's) will be the servicer. It is an integral part of Volkswagen Financial Services AG (rated A3 and P-2), in turn owned by Volkswagen Aktiengesellschaft (rated A3 and P-2). In assigning the ratings to this transaction, Moody's evaluated historical performance data from January 1, 2005 and ending July 31, 2013. Moody's key ratings-model assumptions for this transaction include various performance statistics, including log normal estimate of the annual loss rate with mean loss 5% and a coefficient of variation of 50%. Other model input assumptions include a conditional prepayment rate of 15% per annum. The discount rate used for modeling was 13.2% per annum. Moody's has considered how the cash flows generated by the collateral are allocated to the parties within the transaction, and the extent to which various structural features of the transaction might themselves provide additional protection to investors, or act as a source of risk. In addition, Moody's has analyzed the strength of triggers to reduce the exposure of the portfolio to the originator/servicer bankruptcy. To determine the rating assigned to the Shares, Moody's has used an expected loss methodology that reflects the probability of default for each series of Shares times the severity of the loss expected for the Shares. In order to allocate losses to the Shares in accordance with their priority of payment and relative size, Moody's has used a cash-flow model (ABSCORE) that reproduces many deal-specific characteristics: the main input parameters of the model are described above. Weighting each loss scenario's severity result on the Shares with its probability of occurrence, the model has calculated the expected loss level for each series of Shares as well as the expected average life. Moody's model then compares the quantitative values to the Moody's Idealized Expected Loss table for each tranche. Parameter Sensitivities provide a quantitative, model-indicated calculation of the number of notches that a Moody's-rated structured finance security may vary if certain input parameters used in the initial rating process differed. The analysis assumes that the deal has not aged. It is not intended to measure how the rating of the security might migrate over time, but rather, how the initial rating of the security might differ as certain key parameters vary. Parameter sensitivities for this transaction have been calculated in the following manner: Moody's tested nine scenarios derived from the combination of mean loss: 5% (base case), 7.5% (base case + 2.5%), 10% (base case + 5%). and coefficient of variation rate: 50% (base case), 55% (base case + 5%), 60% (base case + 10%). The 5% / 50% scenario would represent the base case assumptions used in the initial rating process. At the time the rating was assigned, the model output indicated that Senior Shares would have achieved a Ba1 (sf) global rating model output if mean loss was as high as 10% with a coefficient of variation of 60%. Under the same assumptions, the Mezzanine Shares would have achieved Caa2 (sf) global rating model output. Key uncertainties relate to future asset performance under a severe stress scenario involving diminished economic growth and a sharp rise in unemployment. The principal methodology used in this rating was "Moody's Approach to Rating Auto Loan-Backed ABS" published in May 2013. Factors that would lead to an upgrade or downgrade of the rating Worse than anticipated portfolio performance in terms of defaults and recoveries. Deterioration of the servicer's credit quality. Downgrade of interest rate swap counterparty and/or early termination of interest rate swap. ========================== C A Y M A N I S L A N D S ========================== AM INVESTMENT V: Commences Liquidation Proceedings -------------------------------------------------- On Dec. 5, 2013, the sole shareholder of AM Investment V Fund, 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: Mark Friedman c/o AM Investment Partners, LLC One Liberty Plaza, 27th Floor New York New York 10006 United States of America Telephone: +1 (347) 735 5113 AM INVESTMENT E FUND: Commences Liquidation Proceedings ------------------------------------------------------- On Dec. 5, 2013, the sole shareholder of AM Investment E Fund 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: Mark Friedman c/o AM Investment Partners, LLC One Liberty Plaza, 27th Floor New York New York 10006 United States of America Telephone: +1 (347) 735 5113 e-mail: mark@dldam.com AM INVESTMENT GP: Commences Liquidation Proceedings --------------------------------------------------- On Dec. 5, 2013, the sole shareholder of AM Investment Partners GP, 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: Mark Friedman c/o AM Investment Partners, LLC One Liberty Plaza, 27th Floor New York New York 10006 United States of America Telephone: +1 (347) 735 5113 AM INVESTMENT GP II: Commences Liquidation Proceedings ------------------------------------------------------ On Dec. 5, 2013, the sole shareholder of AM Investment Partners GP II, 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: Mark Friedman c/o AM Investment Partners, LLC One Liberty Plaza, 27th Floor New York New York 10006 United States of America Telephone: +1 (347) 735 5113 BLUE EDGE: Commences Liquidation Proceedings -------------------------------------------- On Dec. 5, 2013, the shareholders of Blue Edge Fund Management Co. 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: Blue Edge Advisors Pte Ltd. Lau Cheng Hock #17-81 Office 2 The Central 8 Eu Tong Sen Street Singapore 059818 Telephone: (203) 554 5166 DYNASTY INTERNATIONAL: Commences Liquidation Proceedings -------------------------------------------------------- On Nov. 18, 2013, the sole shareholder of Dynasty International resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 2014, will be included in the company's dividend distribution. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands FINANCIAL INSTITUTION: Commences Liquidation Proceedings -------------------------------------------------------- On Dec. 5, 2013, the sole shareholder of Financial Institution Partners, 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: Hovde Capital Advisors LLC c/o Eric D. Hovde 122 W. Washington Ave. Suite 350 Madison, WI 53703 USA Telephone: (608) 255-5175 FUTURA FUND: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 4, 2013, the shareholders of Futura Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 2014, will be included in the company's dividend distribution. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands FUTURA INITIAL: Commences Liquidation Proceedings ------------------------------------------------- On Dec. 4, 2013, the sole shareholder of Futura Initial Investor Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 2014, will be included in the company's dividend distribution. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands LONGWAY CAPITAL: Placed Under Voluntary Wind-Up ----------------------------------------------- On Dec. 5, 2013, the sole member of Longway Capital Fund resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 7, 2014, will be included in the company's dividend distribution. The company's liquidator is: Gene Dacosta c/o Jonathan McLean Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands MACRITCHIE RESOURCE: Placed Under Voluntary Wind-Up --------------------------------------------------- The shareholders of Macritchie Resource Fund resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 19, 2014, will be included in the company's dividend distribution. The company's liquidator is: Alric Lindsay Artillery Court Shedden Road P.O. Box 11371, George Town Grand Cayman KY1-1008 Cayman Islands Telephone: (345) 926 1688 NEWPORT FINANCE: Placed Under Voluntary Wind-Up ----------------------------------------------- On Dec. 5, 2013, the sole shareholder of Newport Finance resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Avalon Ltd. Reference: GL Telephone: +1 (345) 769 4422 Facsimile: +1 (345) 769 9351 Landmark Square, 1st Floor 64 Earth Close West Bay Beach P.O. Box 715, George Town Grand Cayman KY1-1107 Cayman Islands NWQ CONCENTRATED: Commences Liquidation Proceedings --------------------------------------------------- On Dec. 6, 2013, the shareholder of NWQ Concentrated Fund 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: John E. Conlin c/o NWQ Investment Management Company LLC 2049 Century Park East, 16 Floor Los Angeles CA 90067 USA Telephone: +1 (345) 914 6365 NWQ CONCENTRATED MASTER: Commences Liquidation Proceedings ---------------------------------------------------------- On Dec. 6, 2013, the shareholder of NWQ Concentrated Master Fund 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: John E. Conlin NWQ Investment Management Company LLC 2049 Century Park East, 16th Floor Los Angeles, CA 90067 USA Telephone: +1 (345) 914 6365 P2 HOLSTEN KYOTO: Commences Liquidation Proceedings --------------------------------------------------- On Dec. 2, 2013, the shareholders of P2 Holsten Kyoto Holding KY LP Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 6, 2014, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands P2 HOLSTEN NARA: Commences Liquidation Proceedings -------------------------------------------------- On Dec. 2, 2013, the shareholders of P2 Holsten Nara Holding KY GP Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 6, 2014, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands S.A.C. PEI CB: Commences Liquidation Proceedings ------------------------------------------------ On Dec. 4, 2013, the shareholders of S.A.C. PEI CB Investment GP, 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: S.A.C. Capital Advisors, L.P c/o Alison O'Shea 72 Cummings Point Road Stamford, CT 06902 U.S.A. Telephone: (203) 890-3584 STAR DREAMS: Commences Liquidation Proceedings ---------------------------------------------- On Nov. 18, 2013, the sole shareholder of Star Dreams resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 2014, will be included in the company's dividend distribution. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands ========= C H I L E ========= CORP GROUP: S&P Puts 'BB-' Rating on CreditWatch Developing ----------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BBB/A-2' ratings on Corpbanca S.A. and 'BB-' rating on Corp Group Banking S.A. (CG Banking) on CreditWatch with developing implications. The rating action follows the announcement that Corp Group (not rated, which owns CG Banking) and Itau Unibanco Holding S.A. (BBB/Negative/A-2) will merge their respective subsidiaries, Corpbanca (which has operations in Chile and Colombia) and Banco Itau Chile (not rated). Prior to the merger, Itau Unibanco Holding or one of its subsidiaries will make a $652 million capital infusion in Banco Itau Chile. Itau Unibanco Holding will control a 33.58% share in the merged entity, Itau Corpbanca, Corp Group will hold a 32.92% participation, and minority shareholders will have the remaining share. A shareholders agreement between Itau Unibanco Holding and Corp Group will establish an Itau Corpbanca board of directors to designate executives and to approve certain strategic plans, such as dividend distributions and risk credit policies, among others. The agreement will likely contain provisions for the transfer of shares between Itau Unibanco Holding and Corp Group as well as to third parties. "Itau Corpbanca will be the 5th largest bank in Chile (including public banks in the system), with a consolidated market share of about 12.4%, and will rank 5th in Colombia with a market share of about 7%," said Standard & Poor's credit analyst Ivana Recalde. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: Tax Agency Scrambles to Avert Shutdown by Retailers ------------------------------------------------------------------ Dominican Today reports that the Internal Taxes Agency (DGII) and 13 retailers organizations agreed to oppose the commercial strike called by the Dominican Retailers Federation (FDC), and chose to accept a tax credit to the sector's contributors to break the gridlock over the cost to install tax receipt printers, to be deducted from their income tax over two years. The DGII agreed not to penalize for failure to pay taxes since merchants have yet to obtain the printers from suppliers and will provided with a simpler way to process the tax payment, according to Dominican Today. But, the report notes that despite the agreement signed by the organizations, the FDC postponed the strike date from January 30 and 31, to February 5 and 6, leaving open the possibility to reach an agreement with the Government. ===================== P U E R T O R I C O ===================== PUERTO RICO: Seeks US$2-Billion Debt Offering --------------------------------------------- Al Yoon, Matt Wirz, and Mike Cherney at The Wall Street Journal, citing unnamed sources, report that Puerto Rico is preparing a debt offering of some US$2 billion in coming weeks amid increasing pressure from credit-rating firms and investors for the U.S. territory to shore up its finances. The WSJ relates that within days, a team of Puerto Rico officials including Treasury Secretary Melba Acosta Febo will choose the type of debt they will use from several options scrutinized in meetings with rating firms and bankers since late last year, the people said. The officials met with analysts at Moody's Investors Service, Standard & Poor's Ratings Services and Fitch Ratings to discuss the island's fiscal outlook, the Puerto Rico Treasury said in a statement, according to WSJ. WSJ notes that the group also met with bankers at Barclays PLC, which could help manage a deal if a public offering is chosen, said people familiar with the matter. Some investors said they have been approached by Barclays to gauge their interest in purchasing Puerto Rico bonds, the report relays. The WSJ says that the sale would be the first by a Puerto Rico entity since August and would follow a tumultuous year for the municipal-bond market. Last year, the WSJ recalls, investors in municipal bonds -- those issued by state and local governments and related entities -- suffered their largest annual losses in 19 years, driven by financial setbacks in Puerto Rico and Detroit's record-setting bankruptcy filing in July. The WSJ notes that Puerto Rico has said it doesn't need to borrow before its fiscal year ends in June. But it wants to show investors it can still borrow money in the public bond market despite a sharp rise in yields on its bonds, 15% unemployment and $70 billion in outstanding debt, officials have said, the WSJ relays. Citing unnamed sources, the WSJ discloses that some Puerto Rico officials have come to terms with the likelihood the island may have to pay rates of around 10% to issue debt -- more than twice its yields on 10-year debt a year ago -- after resisting for several months. WSJ relays that a deal would cap months of negotiations with investment banks and creditors over what kind of financing would best stabilize the waning confidence of investors. The island's officials have been weighing selling municipal bonds backed by sales taxes or by other island entities, as well as raising money from private investors, WSJ notes. All three major credit-rating firms have warned that they may downgrade Puerto Rico, an event that investors say could spark further selling of the island's debt, the WSJ points out. Meanwhile, WSJ relays that Puerto Rico officials are also discussing options to help bolster the island's finances with the U.S. Treasury Department and Congress, said Angel Rosa Rodriguez, who is a Puerto Rico senator and vice president of the senate's Treasury and Public Finance Committee. The WSJ notes that some investors say they want more assurances about the stability of Puerto Rico's credit rating before they would be willing to buy a bond issued by the island. Some government officials in Puerto Rico have been skeptical about a spate of proposals from other bankers pushing for customized debt deals, said people familiar with the situation, the WSJ says. Those efforts have lost traction, narrowing choices for Puerto Rico to general-obligation bonds, sales-tax-backed bonds or some combination of the two, according to people familiar with the deal negotiations, the WSJ discloses. Morgan Stanley MS has proposed the island raise about US$2 billion in a bond with a 10% interest rate to be sold to a group of investors including hedge funds, the WSJ adds. ================= X X X X X X X X X ================= BOND PRICING: For the Week From Jan. 27 to Jan. 31, 2014 -------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- Aguas Andinas SA 4.15 12/1/2026 CLP 72.61 Aguas Andinas SA 4.15 12/1/2026 CLP 69.55 Almendral Telecomunicaciones SA 3.5 12/15/2014 CLP 22.19 Argentina Bocon 2 1/3/2016 ARS 9.05 Argentina Bocon 2 3/15/2014 ARS 13.8 Argentina Boden Bonds 2 9/30/2014 ARS 55.13 Argentine International Bond 7.82 12/31/2033 EUR 67.75 Argentine International Bond 7.82 12/31/2033 EUR 66.7 Argentine International Bond 8.28 12/31/2033 USD 67.5 Argentine International Bond 1.18 12/31/2038 ARS 42.26 Argentine International Bond 8.28 12/31/2033 USD 70.5 Argentine International Bond 7.82 12/31/2033 EUR 67.63 Argentine International Bond 8.28 12/31/2033 USD 71.5 Argentine International Bond 4.33 12/31/2033 JPY 39.5 Argentine International Bond 4.33 12/31/2033 JPY 39.5 Argentine International Bond 0.45 12/31/2038 JPY 15.5 Argentine International Bond 8.28 12/31/2033 USD 69 Automotores Gildemeister SA 6.75 1/15/2023 USD 72.14 BA-CA Finance Cayman 2 Ltd 1.838 EUR 68.5 BCP Finance Co Ltd 5.543 EUR 50.75 BCP Finance Co Ltd 4.239 EUR 50.42 BES Finance Ltd 4.5 EUR 71.17 Banco BPI SA/Cayman Islands 4.15 11/14/2035 EUR 57.38 Banco BVA SA 9.125 2/7/2014 USD 10.01 Banif Finance Ltd 1.663 EUR 44 Bank Austria Creditanstalt Finance Cayman Ltd 2.156 EUR 68.25 Bolivarian Republic of Venezuela 9.25 9/15/2027 USD 73.68 Bolivarian Republic of Venezuela 7 3/31/2038 USD 60.12 CA La Electricidad de Caracas 8.5 4/10/2018 USD 74.7 Caixa Geral De Depositos Finance 1.064 EUR 41.14 Caixa Geral De Depositos Finance 1.094 EUR 39 China Forestry Holdings Co Ltd 10.25 11/17/2015 USD 38.6 China Forestry Holdings Co Ltd 10.25 11/17/2015 USD 36.5 China Precious Metal Resources Holdings Co Ltd 7.25 2/4/2018 HKD 69.78 Cia Cervecerias Unidas SA 4 12/1/2024 CLP 55.51 Cia Sud Americana de Vapores SA 6.4 10/1/2022 CLP 65.75 Transener S.A 9.75 8/15/2021 USD 68 Transener S.A 9.75 8/15/2021 USD 67.13 City of Buenos Aires Argentina 3.95 5/17/2019 USD 73 ERB Hellas Cayman ERB Hellas Cayman Islands Ltd 9 3/8/2019 EUR 56 ESFG International Ltd 5.753 EUR 59 Empresa Distribuidora Y Comercializadora Norte 9.75 10/25/2022 USD 66.5 Empresa Distribuidora Y Comercializadora Norte 10.5 10/9/2017 USD 64.5 Empresa Distribuidora Y Comercializadora Norte 9.75 10/25/2022 USD 63.63 Formosa Province of Argentina 5 2/27/2022 USD 71.25 Gol Finance 8.75 USD 67.5 Gol Finance 8.75 USD 67.38 Hidili Industry International Development Ltd 8.6 11/4/2015 USD 75.63 Inversiones Alsacia SA 8 8/18/2018 USD 72.53 Inversora de Electrica de Buenos Aires SA 6.5 9/26/2017 USD 43.75 MTR Corp Cayman Islands Ltd 3.25 3/12/2043 HKD 73.01 MTR Corp Cayman Islands Ltd 3.25 1/28/2043 HKD 72.13 Petroleos de Venezuela SA 6 11/15/2026 USD 55.75 Petroleos de Venezuela SA 5.37 4/12/2027 USD 53.25 Petroleos de Venezuela SA 5.25 4/12/2017 USD 72 Petroleos de Venezuela SA 9.75 5/17/2035 USD 70 Petroleos de Venezuela SA 9 11/17/2021 USD 73 Petroleos de Venezuela SA 5.5 4/12/2037 USD 50 Petroleos de Venezuela SA 6 11/15/2026 USD 55.16 Petroleos de Venezuela SA 9 11/17/2021 USD 71.46 Petroleos de Venezuela SA 9.75 5/17/2035 USD 68.66 Provincia del Chaco 4 11/4/2023 USD 62.38 Provincia del Chaco 4 12/4/2026 USD 33 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 69.13 Renhe Commercial Holdings Co Ltd 11.75 5/18/2015 USD 72.38 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 69.88 Renhe Commercial Holdings Co Ltd 11.75 5/18/2015 USD 72.38 SMU SA 7.75 2/8/2020 USD 73.03 SMU SA 7.75 2/8/2020 USD 72.63 Sifco SA 11.5 6/6/2016 USD 33.5 Talca Chillan Sociedad Concesionaria SA 2.75 12/15/2019 CLP 55.64 Venezuela International Bond 7.75 10/13/2019 USD 71.75 Venezuela International Bond 9 5/7/2023 USD 70 Venezuela International Bond 9.375 1/13/2034 USD 69.75 Venezuela International Bond 7 12/1/2018 USD 73.75 Venezuela International Bond 9.25 5/7/2028 USD 69 Venezuela International Bond 8.25 10/13/2024 USD 66 Venezuela International Bond 7.65 4/21/2025 USD 64.25 Venezuela International Bond 6 12/9/2020 USD 64.25 Venezuela International Bond 9.25 9/15/2027 USD 72.25 Venezuela International Bond 7 3/31/2038 USD 60.5 Virgolino de Oliveira Finance Ltd 10.5 1/28/2018 USD 67 Virgolino de Oliveira Finance Ltd 11.75 2/9/2022 USD 66.45 Virgolino de Oliveira Finance Ltd 10.5 1/28/2018 USD 65 Virgolino de Oliveira Finance Ltd 11.75 2/9/2022 USD 65.13 *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2014. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *