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/raid1/www/Hosts/bankrupt/TCRLA_Public/140425.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, April 25, 2014, Vol. 15, No. 81 Headlines B R A Z I L SIFCO SA: Brazilian Auto-Parts Maker Files Chapter 15 in New York SIFCO SA: Fitch Lowers Issuer Default Rating to 'D' C A Y M A N I S L A N D S AD LIB: Shareholder to Receive Wind-Up Report on May 16 FSI SKYLINE: Shareholder to Receive Wind-Up Report on April 30 HF MOERDIJK FUNDING: Shareholders' Final Meeting Set for May 26 HF MOERDIJK OWNER: Shareholders' Final Meeting Set for May 26 HF MOERDIJK PROJECT: Shareholders' Final Meeting Set for May 26 MARATHON INTERNATIONAL: Members' Final Meeting Set for May 8 MAVERICK IVC: Creditors' Proofs of Debt Due June 21 PUMA SPHERA: Creditors' Proofs of Debt Due May 22 RSH 1928: Members' Final Meeting Set for May 5 SALSA LTD: Shareholder to Receive Wind-Up Report on May 16 C U B A CUBA: Moody's Downgrades Rating to Caa2; Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Said to Plan 30-Year Bond Sale DOMINICAN REPUBLIC: Banks' Assets Soar RD$26BB to RD$969BB in 1Q DOMINICAN REP: World's 6th Worse in Lost Energy, World Bank Says E C U A D O R ECUADOR: To Get US$150MM IDB Loan to Bolster Electricity Grid X X X X X X X X X * IMF Warns South America on Risks After Commodity Boom - - - - - =========== B R A Z I L =========== SIFCO SA: Brazilian Auto-Parts Maker Files Chapter 15 in New York ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Sifco SA, a maker of front axles and I-beams for trucks and buses, commenced a bankruptcy restructuring in Brazil on April 22 and on April 23 filed a Chapter 15 petition in U.S. Bankruptcy Court in New York. According to the report, the Jundiai, Sao Paulo-based company distributes products in the U.S. through Westport Axle Corp., which was a subsidiary until it was sold in late 2013. The petition shows assets of less than $500 million and debt exceeding $500 million, the report related. Liabilities include $75 million on senior secured notes with Bank of New York Mellon Corp. as agent, the report further related. The bonds are secured in part by an $8.5 million cash deposit intended for use if an interest payment is missed, the report said. The case is In re Sifco SA, 14-bk-11179, U.S. Bankruptcy Court, Southern District of New York (Manhattan). SIFCO SA: Fitch Lowers Issuer Default Rating to 'D' --------------------------------------------------- Fitch Ratings has downgraded Sifco S.A.'s (Sifco) foreign currency and local currency Issuer Default Ratings (IDR) to 'D' from 'B-' and the National long-term rating to 'D(bra)' from 'BB(bra)'. Fitch has also downgraded the rating for the USD75 million senior unsecured notes due 2016 to 'C/RR4' from 'B-/RR4'. KEY RATING DRIVERS These rating actions follow Sifco's announcement that it has filed for bankruptcy protection in Brazil. This announcement will result in payment default on some or all of Sifco's debt and result in a debt renegotiation. Sifco had BRL105 million of cash and cash equivalents as of Sept. 30, 2013, compared with BRL750 million of total debt, including refinanced taxes. Of this total, approximately BRL297 million was short-term debt. The company's short-term assets included BRL100 million of inventories and BRL135 million of account receivables. The company's long-term assets included BRL609 million of net PPE, which primarily consists of its auto parts manufacturing facilities in Brazil and assembly lines in the U.S. ========================== C A Y M A N I S L A N D S ========================== AD LIB: Shareholder to Receive Wind-Up Report on May 16 ------------------------------------------------------- The shareholder of AD Lib Ltd. will receive on May 16, 2014, at 9:45 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 FSI SKYLINE: Shareholder to Receive Wind-Up Report on April 30 -------------------------------------------------------------- The shareholder of FSI Skyline Fund OC, Ltd. will receive on April 30, 2014, at 1:30 p.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Cline Glidden Telephone: (345) 815-1785 HF MOERDIJK FUNDING: Shareholders' Final Meeting Set for May 26 --------------------------------------------------------------- The shareholders of HF Moerdijk Funding Company, Ltd will hold their final meeting on May 26, 2014, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Avril Brophy Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands HF MOERDIJK OWNER: Shareholders' Final Meeting Set for May 26 ------------------------------------------------------------- The shareholders of HF Moerdijk Owner Company, Ltd. will hold their final meeting on May 26, 2014, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Avril Brophy Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands HF MOERDIJK PROJECT: Shareholders' Final Meeting Set for May 26 --------------------------------------------------------------- The shareholders of HF Moerdijk Project Company, Ltd. will hold their final meeting on May 26, 2014, at 10:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Avril Brophy Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands MARATHON INTERNATIONAL: Members' Final Meeting Set for May 8 ------------------------------------------------------------ The members of Marathon International Oil Morado Limited will hold their final meeting on May 8, 2014, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Y.R. Kunetka 5555 San Felipe St. Houston, Texas 77056 U.S.A. MAVERICK IVC: Creditors' Proofs of Debt Due June 21 --------------------------------------------------- The creditors of Maverick IVC Execs Holdco are required to file their proofs of debt by June 21, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 28, 2014. The company's liquidator is: Westport Services Ltd Name: Gillian Allan Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands PUMA SPHERA: Creditors' Proofs of Debt Due May 22 ------------------------------------------------- The creditors of Puma Sphera Management (Cayman) Limited are required to file their proofs of debt by May 22, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 27, 2014. 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 RSH 1928: Members' Final Meeting Set for May 5 ---------------------------------------------- The members of RSH 1928 Ltd. will hold their final meeting on May 5, 2014, to receive 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 SALSA LTD: Shareholder to Receive Wind-Up Report on May 16 ---------------------------------------------------------- The shareholder of Salsa Ltd. will receive on May 16, 2014, at 9:30 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 ======= C U B A ======= CUBA: Moody's Downgrades Rating to Caa2; Outlook Stable ------------------------------------------------------- Moody's Investors Service has downgraded Cuba's rating to Caa2 from Caa1. At Caa2, the outlook is stable. Ratings Rationale Moody's decision to downgrade Cuba's rating is driven by an assessment of the country's vulnerability to external and domestic shocks, relative to rating peers. In terms of external shocks, Cuba relies heavily upon Venezuela (Caa1, negative outlook) for oil, which is imported with favorable financing terms through Petrocaribe. Given Venezuela's increasingly unsustainable macroeconomic imbalances and elevated risk of an economic and financial collapse, the future of this arrangement is uncertain, rendering Cuba vulnerable to a sharp adjustment in the cost of energy imports, which amounted to an estimated $6.5 billion (47% of total imports) in 2012. In terms of domestic shocks, the main risk is an abrupt and disorderly political transition. While President Castro recently indicated that his current term will be his last and, at the same time, appointed a First Vice President of the Council of State of Cuba, there is considerable uncertainty around the future state of Cuba's political economy. Moody's has noted that in recent days, the possibility has emerged that Cuba could revive Paris Club debt negotiations. Rationale For Stable Outlook The stable outlook on the Caa2 rating reflects Moody's view that the future trajectory is equally likely to be affected by the country's credit weaknesses as by its credit strengths. Weaknesses include limited access to external financing, high dependence on imported goods, political transition risk, and lack of data transparency, while strengths include a dynamic and growing tourism sector, nickel-related mining activities, and the potential for future economic diversification. What Could Move The Rating Up/Down There could be upward pressure on Cuba's rating if certainty emerges over the medium term political and economic prospects of the country, including expectations around economic reforms and enhanced data transparency. There could be downward pressure on Cuba's rating if Venezuela's ability and/or willingness to provide economic support to Cuba is materially diminished, thereby increasing the country's oil import costs and leading to a material deterioration in the balance of payments position. Country Ceilings Moody's have adjusted the long-term local currency bond ceiling to Caa2 from Ba3, and assigned a local currency deposit ceiling of Caa2. The long-term foreign currency bond ceiling changed to Caa2 from Caa1. The long-term foreign currency deposit ceiling changed to Caa3 from Caa2. All short-term ceilings remain at Not Prime. Country ceilings reflect a range of un-diversifiable risks to which issuers in any jurisdiction are exposed, including economic, legal and political risks. These ceilings act as a cap on ratings that can be assigned to the foreign and local-currency obligations of entities domiciled in the country. GDP per capita (US$): 6,498 (2012 Actual) (also known as Per Capita Income) Real GDP growth (% change): 3% (2012 Actual) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 2.1% (2012 Actual) Gen. Gov. Financial Balance/GDP: -3.6% (2012 Actual) (also known as Fiscal Balance) Current Account Balance/GDP: -1% (2012 Estimate) (also known as External Balance) External debt/GDP: 21.5% (2012 Estimate) Level of economic development: Very Low level of economic resilience Default history: At least one default event (on bonds and/or loans) has been recorded since 1983. On 14 April 2014, a rating committee was called to discuss the rating of the Government of Cuba. The main points raised during the discussion were: The issuer has become increasingly susceptible to event risks. An analysis of this issuer, relative to its peers, indicates that a repositioning of its rating would be appropriate. Other views raised included: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutional strength/ framework, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. Methodology The principal methodology used in this rating was Sovereign Bond Ratings published in September 2013. The weighting of all rating factors is described in the methodology used in this rating action, if applicable. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Said to Plan 30-Year Bond Sale -------------------------------------------------- Katia Porzecanski, reporting for Bloomberg News, reports that the Dominican Republic sold a record amount of bonds today in its first offering of 30-year dollar debt since 1994. The Caribbean nation issued $1.25 billion of the securities due 2044 at a yield of 7.45 percent while pulling a sale of five-year peso-denominated notes that officials were considering, data compiled by Bloomberg show. Goldman Sachs Group Inc. and JPMorgan Chase & Co. arranged the transaction, notes the report. Bloomberg News notes that after raising $1.5 billion in overseas bond markets last year, the Dominican Republic is taking advantage of its lowest borrowing costs since June. Proceeds of the new debt sale will be used to fund infrastructure projects and support other sectors of the economy, according to a person familiar with the offering who asked not to be identified because he's not authorized to speak about it, the report relates. The yield on the Dominican Republic's bonds due April 2024 was unchanged today at 5.9 percent, according to Bloomberg News. It reached a 10-month low of 5.815 percent on April 8. The country is rated B1 by Moody's Investors Service, or four levels below investment grade, and an equivalent B+ by Standard & Poor's, relates Bloomberg News. The Dominican Republic hasn't sold 30-year bonds since the aftermath of its restructuring orchestrated by then-U.S. Treasury Secretary Nicholas Brady in the early 1990s, according to data compiled by Bloomberg. The Caribbean nation's economy will expand 4.5 percent this year after growing 4.1 percent in 2013, Bloomberg recalls Economy Minister Temistocles Montas saying in February. Growth will be driven by investment in a $1.95 billion project to build two coal- fired electricity plants, along with increased economic activity in tax-free zones and tourism, he said, adds the report. DOMINICAN REPUBLIC: Banks' Assets Soar RD$26BB to RD$969BB in 1Q ---------------------------------------------------------------- Dominican Today reports that the assets of Dominican Republic's commercial and multiple service banks soared by RD$26 billion in the first quarter, or 3% higher than in December last year. The Dominican Banks Association (ABA) said the relative increase in assets tripled the inflation rate for the January to March period, according to Dominican. It said the banks' total assets reached RD$969 billion at the end of the first quarter, the report relates. It said an 8% increase, or RD$45 billion in loans, is what most pushed the higher assets, and now total RD$602 billion, the report notes. DOMINICAN REP: World's 6th Worse in Lost Energy, World Bank Says ---------------------------------------------------------------- Dominican Today reports that Dominican Republic is the world's sixth worse country in energy distribution and power lines losses, according to the World Bank study on World Development Indicators 2014, which evaluated 223 high, low and middle income countries. In the report, the country figures with losses as high as 30%, second only to Botswana (56%), Congo (46%), Haiti (55%), Iraq (35%) and Nepal (34%), according to Dominican Today. Data from Dominican Republic's State-owned Electric Utility (CDEEE) however losses close to 40%, the report notes. The report notes that the World Bank classifies Dominican Republic as a "medium-high income country," a group with distribution losses of 9%. For low-income countries, the average is 15%, for medium is 10% income and for high income is 6%, the report relates. The percentages show that the country has to trim its losses from around 38% to 9%, which will lead to saving of US$715.0 million, the report adds. ============= E C U A D O R ============= ECUADOR: To Get US$150MM IDB Loan to Bolster Electricity Grid ------------------------------------------------------------- Ecuador will build and expand six new electrical transmission systems, adding 586 kilometers of transmission lines and enlarging 12 substations with a US$150 million loan from the Inter-American Development Bank (IDB). The construction projects will include the areas of Tabacundo and Riobamba toward the south of Yanacocha, the southwest area of Duran, the interconnection point of the Santo Domingo-Esmeraldas line and that of Pedernales-La Concordia. The program will allow for greater generation of hydroelectric power, reduce requirements for thermal generation, respond to growth in demand from electricity distributors and strengthen both Ecuador's interconnection with Colombia and the development of environmental specifications of the Extra High Voltage System between Ecuador and Peru. Growth in demand for electricity in Ecuador has exceeded that of supply. In 2012, demand for energy was 6.1 percent higher than in 2011. In order to meet these challenges, the government of Ecuador has various hydroelectric construction projects under way, of which 2,362 MW will come on line over the short term. Transmission of electricity generated with the new facilities will be ensured with investments from Electricity Transmission System. The IDB loan is for a 25-year term, with a 13 years grace period and an interest rate based on LIBOR. Local contribution will be US$19.5 million. ================= X X X X X X X X X ================= * IMF Warns South America on Risks After Commodity Boom ------------------------------------------------------- John Quigley, writing for Bloomberg News, reports that the International Monetary Fund said today South American countries should consider creating fiscal stabilization funds to buffer their economies against a decline in commodity prices expected to damp growth in the coming years. Setting up stabilization funds and accelerating infrastructure investment would allow the economies to increase productivity to sustain growth as a decade-long commodity boom peters out, the Washington-based fund said in a report posted on its website, notes Bloomberg News. The report notes that economic growth is decelerating as prices for the region's copper and iron ore fall on slower demand from China, the world's largest consumer of industrial metals. The fund on April 8 cut its 2014 growth forecast for South America to 2.3 percent from an October estimate of 3.1 percent and an average 5.1 percent in the last decade, Bloomberg News adds. Commodity prices "are projected to moderate further over the medium term as supply is increasing while demand growth from large emerging markets is expected to slow," the report said, relays Bloomberg News. "To avoid the boom-bust dynamics often associated with commodity cycles, countries should work to weaken the link between commodity prices and economic activity." Bloomberg News recalls that global commodity prices almost tripled between 2003 and 2013, fueling private investment and government spending in South America, which is home to the largest exporter of copper and soybean. Though average commodity prices during the next six years may remain 10 percent higher than during the 2003 to 2011 boom years, the lack of price growth may weigh on economic activity, the fund said, Bloomberg News relates. Reduce Debt According to Bloomberg News, though commodity prices are declining, they remain "very attractive" and are an opportunity for governments to boost savings and reduce debt, said the fund's Western Hemisphere director, Alejandro Werner, in an interview in Lima today. "Many economies, such as Peru and Colombia, are going to continue growing at high rates," he said, notes the report. "Clearly there's still room to boost savings." Some governments have room to raise taxes to offset weaker commodity revenue while others can reduce energy subsidies for the wealthy and increase spending on the poor, Bloomberg News quoted Mr. Werner as saying. Chile plans to raise tax revenue by 3 percent of gross domestic product to help balance its budget and increase education and health spending, Bloomberg News relays. Argentina plans to lower gas utility subsidies, which the IMF said is "a step in the right direction," adds the report. Cutting debt and maintaining sustainable fiscal policies will allow countries access to cheaper financing in international markets at a time when interest rates are set to rise, Mr. Werner said, note Bloomberg News. "The benefits of following these types of policies, through the reduction of financing costs, are going to be increasingly important and countries are going to implement them. It's not going to be easy. It's going to be important that there's the will to do so," Bloomberg News further quoted Mr. Werner as saying. Brazil, Chile and Colombia have increased their capacity to adopt counter-cyclical fiscal policies in recent years, the fund said, adding that the creation of fiscal buffers needs to be transparent and sustainable, relays Bloomberg News. "Countries need to rebuild their buffers, not least to be prepared for any future negative economic shock," Bloomberg News, citing the IMF report, said. *********** 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 * * *