/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/140430.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, April 30, 2014, Vol. 15, No. 84 Headlines A R G E N T I N A BANCO DE LA NACION: Fitch Puts FC LT IDR at 'CC'; Outlook Negative BUENOS AIRES: Moody's Rates Class 7 Notes for Up to US$100MM Caa1 B R A Z I L BES INVESTIMENTO: Moody's Affirms D- Financial Strength Rating CEAGRO AGRICOLA: S&P Affirms 'B' CCR; Outlook Stable CENTRAIS ELETRICAS: Moody's Hikes Corporate Family Rating to B2 COMPANHIA DE ENERGIA: Moody's Hikes Corporate Family Rating to B2 GOL LINHAS: PRASK Grows by 19% in March and 18% in 1Q14 OGX PETROLEO: Gets US$44 Million Offer for Colombian Oil Rights SIFCO SA: May 6 Hearing on U.S. Preliminary Injunction C A Y M A N I S L A N D S BLUE STONE: Creditors' Proofs of Debt Due May 5 CAC CENTURY: Creditors' Proofs of Debt Due May 23 CIS EQUITY: Creditors' Proofs of Debt Due May 13 HSBC MASTER: Creditors' Proofs of Debt Due May 13 KAUAI HOLDING: Commences Liquidation Proceedings MAOMING FUND: Creditors' Proofs of Debt Due May 14 NAPIER PARK: Creditors' Proofs of Debt Due May 13 RESAT LIMITED: Placed Under Voluntary Wind-Up RICAL INVESTMENTS: Creditors' Proofs of Debt Due May 14 RIVERSIDE GLOBAL: Creditors' Proofs of Debt Due May 22 D O M I N I C A N R E P U B L I C DOMINICAN REP: Opens Books on Dual-Currency, Dual-Tranche Bond M E X I C O METALSA S.A.: S&P Affirms 'BB+' CCR; Outlook Stable S U R I N A M E SURINAME: S&P Affirms 'BB-' Rating & Revises Outlook to Stable U R U G U A Y COOPERATIVA DE AHORRO: Fitch Affirms LT IDRs at 'B' - - - - - ================= A R G E N T I N A ================= BANCO DE LA NACION: Fitch Puts FC LT IDR at 'CC'; Outlook Negative ------------------------------------------------------------------ Fitch Ratings has assigned the following ratings to Banco de la Nacion Argentina (Sucursal Uruguay) S.A. (BNAUY): -- Foreign Currency Long-Term Issuer Default Rating (IDR) 'CC'; -- Local Currency Long-Term IDR 'B-'; -- Support Rating '5'. The Rating Outlook for the Local Currency IDR is Negative. Key Rating Drivers BNAUY's Support and Issuer Default Ratings (IDRs) reflect the high probability of receiving support, if it were needed, from the Republic of Argentina (rated Foreign Currency IDR 'CC' and Local Currency IDR 'B-'; Negative Outlook by Fitch). BNAUY is a branch of Banco de la Nacion Argentina (BNA), so it is fully integrated with the latter. BNA is the largest commercial bank in Argentina, with 28% deposit and 20% loan market shares, with the largest nationwide coverage and is a leader in most business lines. Similar to other government-owned banks, BNA has a sizable exposure to both loans and investments in government securities while enjoying the best funding base in its home country. Foreign branches are used by BNA (including BNAUY) to foster trade finance operations and the operations of Argentinean companies abroad. BNA liabilities (including its branches abroad) are fully guaranteed by the Republic of Argentina. BANUY's Support Rating of '5' considers that external support, although possible (and backed by an explicit guarantee), cannot be relied upon due to the very limited financial flexibility of the sovereign, and ample and developing economic imbalances. Rating Sensitivities BNAUY's ratings are sensitive to Argentina's sovereign rating and its capacity and willingness to provide support to BNA and its branches. Credit Profile BNAUY is the smallest bank in Uruguay. As of Dec. 31, 2013, the bank has a 0.85% and 0.81% share of total assets and deposits of private banks, respectively. BNAUY's main target is to facilitate foreign trade between Argentina and Uruguay. Given the weak franchise and narrow business focus, BNAUY's concentrations on both sides of the balance sheet are ample; however, the bank has a captive clientele. In Fitch's opinion, BNAUY's low profitability results from its business strategy, low income diversification and small size. Given the limited profile of its operations, the BNAUY's ability to generate income is highly correlated with the flow of trade between the two countries. Also, the branch operates with highly liquid credit exposures (mainly interbank loans and letters of credit with bank counterparties), but low-risk return that makes it difficult for BNAUY to diversify its revenue structure. BNAUY's capital levels are influenced by its low-risk business focus. As of Dec. 31, 2013, the Fitch Core Capital ratio remains healthy at (34.5%) and above that of its peers. Despite BNAUY's relatively high capital ratios, further growth is limited due to its parent's restrictions (to maintain a minimum capital adequacy at 12%). The focus on corporate banking and foreign trade support the good asset quality of BNAUY. At the end of 2013, non-performing loans accounted for a low 0.39% of total loans (2012: 0.37%), with ample coverage of loan loss reserves. In Fitch's view, BNAUY's asset quality will continue to be good and influenced by the stable macroeconomic environment. BNAUY's main liquidity is short-term with stable deposits and a line of credit granted by BNA New York (USD18 million). The ample liquidity also benefits from a very low level of long-term loans, which results in a good fit of the balance sheet. As of Dec. 31, 2013, liquid assets accounted for a high 85.1% of short-term obligations. The high dollarization of its balance sheet exposes the bank to exchange rate volatility. Implicit FX risk is mitigated by BNAUY's business model in working with exporters. In addition, BNAUY's credit and market risk associated with Argentine bonds is low (14% of total assets). BUENOS AIRES: Moody's Rates Class 7 Notes for Up to US$100MM Caa1 ----------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo has assigned Caa1 global local currency rating and Ba1.ar Argentina National Scale Rating to Class 7 notes for up to USD100 million to be issued by the City of Buenos Aires under their Local Financing Program. Ratings Rationale The creation of the Local Financing Program was authorized by Laws 4315, 4431 and 4472 of 2012 and Laws 4810 and 4885 of 2013. The notes to be issued under the program constitute direct, unconditional, unsecured and unsubordinated obligations of the city, ranking at all times pari passu without any preference among themselves. The assigned ratings are in line with the city's Caa1 (global scale) and Ba1.ar (Argentina National Scale) local currency debt ratings. The Class 7 notes to be issued under the program, will be subscribed and payable in Argentine pesos at the specified exchange rate and sold in the local capital market. As a result, the US dollar will be a currency of reference and not a means of payment. For that reason, the transaction is considered to be denominated in local currency. According to the term sheet reviewed by Moody's, Class 7 will reach up to USD100 million, approximately 1.4% of the City's total revenues budgeted for 2014 and final maturity in two years. The notes will pay interest at a fixed rate. After the issuance, Moody's anticipates that the City of Buenos Aires' debt will reach approximately 28% of total expected revenues from 25% at the end of fiscal year 2013. The assigned ratings are based on preliminary documentation received by Moody's as of the rating assignment date. Moody's does not expect changes to the documentation reviewed over this period or anticipates changes in the main conditions that the notes will carry. Should issuance conditions and/or final documentation of any of the series under this program deviate from the original ones submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the ratings and act accordingly. What Could Change The Rating Up/Down Moody's does not expect upward pressures on the City of Buenos Aires' global ratings in the near to medium term. Conversely, further deterioration of Argentina's systemic risks or a sharp impairment in the City's idiosyncratic risks could exert downward pressure on the ratings assigned. The principal methodology used in this rating was Regional and Local Governments published in January 2013. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings". =========== B R A Z I L =========== BES INVESTIMENTO: Moody's Affirms D- Financial Strength Rating -------------------------------------------------------------- Moody's Investors Service affirmed all ratings assigned to BES Investimento do Brasil S.A. ("BESI"), including the D- financial strength rating (BFSR), which maps to a ba3 baseline credit assessment in the global rating scale; the Ba3 and Not Prime long- and short-term global local and foreign currency deposit ratings; and the A2.br and BR-1 long- and short-term national scale deposit ratings on the Brazilian national scale. The outlook on all ratings was changed to stable from negative. The following ratings assigned to BES Investimento do Brasil S.A. were affirmed. Bank financial strength of D- Long- and short-term global local-currency deposit rating of Ba3 and Not Prime Long- and short-term foreign currency deposit rating of Ba3 and Not Prime Senior unsecured foreign currency rating of Ba3 Long- and short-term Brazilian national scale deposit rating of A2.br and BR-2 Ratings Rationale Moody's Ba3 rating for BESI incorporates its adequate risk management track record and capital position, as well as the inherently volatile nature of its investment banking revenue generation. The bank has adequately managed a growing loan book, which now accounts for one third of the bank's total assets and is predominantly related to its investment banking business, and particularly to its focus on infrastructure projects. Loan exposures are composed of short tenor bridge loans and acquisition finance that are repaid via debt or equity capital markets issuances or as permanent financing is raised. Because of successful execution, BESI's asset quality has been stable, a trend Moody's expect to continue, although loan concentration is high. BESI maintains an appropriate capital level to sustain its risk taking, with loan leverage ratio of around 3.0x, despite the 40% increase in the loan portfolio over last year. Moody's also acknowledges BESI's defensive liquidity management, which has led to the bank holding an amount of liquid assets, equivalent to 24% of total assets as of December 2013, that exceeds its internal targets. The liquid assets are primarily invested in government securities, with exposures also to private domestic and foreign securities. In part, the liquidity build up addresses an upcoming bond maturity, which management plans to repay. It is also a prudent strategy that helps the bank minimize occasional adversities arising from lower global and domestic liquidity. At the same time, BESI's rating incorporates the inherent volatility of its investment banking operations, particularly in the currently challenging environment for domestic capital markets. In fiscal year 2013, the bank's profitability was boosted by larger loans and guarantees as part of its efforts to participate in infrastructure auctions of airports and tollroads in Brazil, which resulted in 32% higher year-over-year net income. In 2012, BESI had reported a sharp decline in profits because of a worsening operating environment. Although BESI's performance is gradually recovering, it still lags its peak earning years of 2009-2011. In changing the outlook on the ratings to stable, from negative, Moody's acknowledges BESI's favorable earnings momentum as indicated by a robust deal pipeline and an enhanced liquidity buffer and favorable tenor matching that protects its balance sheet. Management has been successful in diversifying funding sources at lower cost, including more attractive domestic debt issuances, which will support financial performance. Nevertheless, Moody's noted that earnings generation continues to be influenced by the operating conditions and the banks' ability to manage costs, while maintained adequate liquidity and asset quality. Moody's stable outlook on BESI's ratings now differs from the negative outlook on Portugal-based parent bank, Banco Espirito Santo S.A., and reflects the view that the subsidiary's performance is less likely to be influenced by that of the parent in light of its recovering earnings and liquidity buffers. The Ba3 global-local currency deposit rating derives from BESI's standalone baseline credit assessment of ba3, and does not benefit from any support uplift because of the bank's modest market share in local banking system deposits. The last rating action on BESI was on 28 March 2012, when Moody's downgraded the bank financial strength (BFSR) to D-, from D; the long-term global local and foreign currency deposit ratings to Ba3, from Ba2; the foreign currency senior unsecured rating to Ba3, from Ba2; and the long- and short-term Brazilian national scale deposit ratings to A2.br, from Aa3.br, and to BR-2, from BR- 1, respectively. This action followed the downgrade of the standalone and supported ratings of its parent, Banco Esp¡rito Santo S.A. BESI's outlook was also changed on 28 March 2012 to reflect challenges it could face if the parent's financial condition were to weaken further. BES Investimento do Brasil S.A. is headquartered in Sao Paulo, Brazil and reported total assets of BRL8.1 billion (USD3.5 billion) and equity of BRL665.7 million (USD284.2 million) as of December 31, 2013. CEAGRO AGRICOLA: S&P Affirms 'B' CCR; Outlook Stable ---------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' global scale and 'brBBB-' Brazilian national scale corporate credit ratings on Ceagro Agricola Ltda. The outlook on the corporate credit ratings is stable. The affirmation reflects S&P's expectations that Ceagro will continue to expand and post stronger EBITDA generation and cash flow with adequate funding. S&P expects it to increase the volumes of higher-margin barter transactions through C&BI Agro Partners, a joint venture between Ceagro's controlling shareholder and Banco Indusval, which provides Ceagro with non-recourse, off- balance sheet funding through the purchase of CPRs. S&P believes that it will still need additional debt to fund its needs, as it has been requiring high working capital and capital expenditures to support its growth. However, S&P expects Ceagro to strengthen its cash flows, as it benefits from the better operating efficiency due to its barter transactions. CENTRAIS ELETRICAS: Moody's Hikes Corporate Family Rating to B2 --------------------------------------------------------------- Moody's America Latina Ltda upgraded Centrais Eletricas Matogrossenses S.A. (Cemat)'s corporate family ratings to B2 from Ca on the global scale and to Ba2.br from Ca.br on the Brazilian national scale. At the same time, Moody's changed the outlook to positive from negative for all Cemat's ratings. The B2/Ba2.br issuer rating reflects the company's current poor liquidity position and uncertainties regarding the company's ability to secure the long term financing and equity capital in a timely and adequate manner to fund planned capital expenditures and lengthen the company's existing debt profile. The rating also considers the uncertainties as to whether Energisa will be able to effectively reduce operating costs and turn around the company financially in light of the potential negative effects that the current drought period (potential electricity rationing and exposure to the high cost thermo-energy) may generate on the company's operating revenues, cash flow and liquidity. The positive outlook reflects the perspectives that Energisa will be successful in implementing some restructuring measures which includes the payment of intercompany loans and equity infusion in an amount superior to BRL500 million to improve CEMAT's capital structure along with raising additional debt to fund needed capital investments while also reducing the cost of the company's debt and repositioning its debt maturity profile. It additionally considers Energisa will be equally successful in improving operational performance which includes the reduction of energy losses and an improvement in the ratios of duration of energy interruption and frequency of energy interruption. Energisa is currently working to raise BRL450 million in a 7-year financing with a 2 year grace period which will be used to prepay a higher cost short term debt. It is also structuring a BRL351 million in securitization of receivables (FIDC) up to 20 years with a 15 year grace period for the principal which will be used to finance CAPEX investments. The company's management considers BNDES will finance approximately 60% of the company's CAPEX investments from 2015 and onwards, with 6 year tenor and a 2 year grace period. Moody's will closely monitor Cemat's financial and operating performance over the short to medium horizon to evaluate its cash flow generation and liquidity position, as well as Energisa's ability to turnaround and stabilize Cemat's financial position. Consequently, Moody's do not foresee any rating upgrade while the announced restructuring plan is initially implemented until there is a significant degree of change on the company's financial and operational performance and the ratios CFO pre WC + Interest / Interest and CFO pre WC / Debt achieve levels above 2.5x and 10%, respectively, on a sustainable basis. The rating could be downgraded if the company is not able to: (i) raise adequate resources in terms of tenor and cost re-scheduling the existing debt and making the necessary capital investments in its existing infrastructure; (ii) the Company chooses to finance its growth strategy with higher than anticipated leverage, which would result in the ratio of retained cash flow (CFO Pre-W/C minus Dividends) to debt falling below 7%, and/or cash flow interest coverage (as measured by [CFO Pre-W/C plus Interest Expense]/Interest Expense) falling below 2.0x for an extended period, and (iii) the expected restructuring process fails and there is a deterioration in the company's liquidity. Centrais Eletricas Matogrossenses S. A., headquartered in the city of Cuiaba, has a 30-year concession contract that expires in 2027 to distribute electricity to 141 cities in the state of Mato Grosso. On April 08, 2014, Energisa S.A. concluded the acquisition of the control of Energisa. In 2013 Cemat sold 6.2 GWh to 1.2 million consumers with net revenues of BRL 2.0 billion which excludes BRL323 million of construction revenues, and net loss of BRL383 million. Cemat is controlled by Rede Energia S.A. which in turn is controlled by Energisa S.A. since April 08, 2014. ENERGISA is listed on the Brazilian stock exchange (BM&FBOVESPA) and is controlled by the Botelho family. COMPANHIA DE ENERGIA: Moody's Hikes Corporate Family Rating to B2 ----------------------------------------------------------------- Moody's America Latina Ltda upgraded Companhia de Energia Eletrica do Estado de Tocantins S.A. (Celtins)' corporate family ratings to B2 from Caa3 on the global scale and to Ba2.br from Caa3.br on the Brazilian national scale. At the same time, Moody's changed the outlook to positive from negative for all Celtins' ratings. Ratings Rationale The B2/Ba2.br issuer rating reflects the company's current poor liquidity position and uncertainties regarding the company's ability to secure the long term financing and equity capital in a timely and adequate manner to fund planned capital expenditures and lengthen the company's existing debt profile. The rating also considers the uncertainties as to whether Energisa will be able to effectively reduce operating costs and turn around the company financially in light of the potential negative effects that the current drought period (potential electricity rationing and exposure to the high cost thermo-energy) may generate on the company's operating revenues, cash flow and liquidity. The positive outlook reflects the perspectives that Energisa will be successful in implementing some restructuring measures which includes the infusion of approximately BRL150 million in equity to improve Celtins' capital structure and the raising of additional debt to fund needed capital investments while also reducing the cost of the company's debt and repositioning its debt maturity profile. It additionally considers that Energisa will be equally successful in improving operational performance which includes reduction of energy losses and the improvement in the ratios duration of energy interruption and frequency of energy interruption. Energisa is currently working on raising BRL130 million in a 5- year financing with 2 years of grace period that will be used to prepay a higher cost short term debt. It is also structuring a BRL136 million securitization of receivables (FIDC) to finance the CAPEX of 2014. To finance the CAPEX of 2015 and onwards, the company's management expects to raise funds from BNDES to finance approximately 60% of the company's forecasted CAPEX, with 6 years tenor and a two years grace period. Moody's will closely monitor Celtins' financial and operating performance over the short to medium horizon to evaluate its cash flow generation and liquidity position, as well as Energisa's ability to turnaround and stabilize Celtins' financial position. Consequently, Moody's do not foresee any rating upgrade while the announced restructuring plan is initially implemented until there is a significant degree of change in the company's financial and operational performance and the ratios CFO pre WC + Interest / Interest and CFO pre WC / Debt achieves levels above 2.5x and 10%, respectively, on a sustainable basis. The rating could be downgraded if the company is not able to: (i) raise adequate resources in terms of tenor and cost in re- scheduling its existing debt and making the necessary capital investments in its existing infrastructure; (ii) the Company chooses to finance its growth strategy with higher than anticipated leverage which would result in the ratio of retained cash flow (CFO Pre-W/C minus Dividends) to debt falling below 7%, and/or cash flow interest coverage (as measured by [CFO Pre-W/C plus Interest Expense]/Interest Expense) falling below 2.0x for an extended period, and (iii) the expected restructuring process fails and there is a deterioration in the company's liquidity. Companhia de Energia Eletrica do Estado do Tocantins (CELTINS), headquartered in the city of Palmas, in the Brazilian state of Tocantins, has a 20-year concession contract that expires in January 2020 to distribute electricity to 139 cities in the state of Tocantins. In 2013, CELTINS sold 1,777 GWh to 524.4 thousand consumers, with net revenues of BRL598 million, which excludes BRL75 million of construction revenues, and a BRL156 million net loss. Celtins is controlled by Rede Energia S.A. which in turn is controlled by Energisa S.A. since April 08, 2014. ENERGISA is listed on the Brazilian stock exchange (BM&FBOVESPA) and is controlled by the Botelho family. The principal methodology used in this rating was Regulated Electric and Gas Utilities published in December 2013. GOL LINHAS: PRASK Grows by 19% in March and 18% in 1Q14 ------------------------------------------------------- GOL Linhas Aereas Inteligentes S.A. disclosed its preliminary air traffic figures for March 2014 and consolidated results for the first quarter of 2014. PRASK, Yield and Fuel Prices In March 2014 net PRASK moved up by 19% over the same month last year, due to the 9.0 p.p. increase in the system load factor to 73.7%, along with a 4% increase in yield over March 2013. In the quarter, PRASK grew by 18% year over year, and yield increased by 4%. The Company's new level of load factor of 76.1% in the first quarter enabled this growth. In March, the average jet fuel price moved up by around 10% year over year, leading to an increase of around 10% in the quarter, over the same period last year. Domestic Market In March, GOL's domestic market supply decreased 5.7% over March 2013, while demand grew by 7.4%, resulting in a 74.4% load factor, 9.1 p.p. up over prior year. In 1Q14, supply increased by 1.6%, while demand grew by 14.7% and load factor reached 76.8%, up 8.7 p.p. versus prior year. International Market International supply increased by 2.7% over March 2013, while demand was up by 17.5%, leading to an 8.6 p.p. improvement in the load factor. For the quarter, supply increased 1.5%, while demand increased by 18.4%, with a total load factor of 71.4%, up 10.2p.p. over prior year. GOL Linhas Aereas Inteligentes S.A. is a low-cost and low-fare airline in Latin America, offers around 970 daily flights to 65 destinations in 10 countries in South America, Caribbean and the United States under the GOL and VARIG brands, using a young, modern fleet of Boeing. * * * As reported in the Troubled Company Reporter-Latin America on March 21, 2014, Fitch Ratings has affirmed the ratings of Gol Linhas Aereas Inteligentes S.A.'s Foreign and local currency long- term Issuer Default Ratings (IDRs) at 'B-'. OGX PETROLEO: Gets US$44 Million Offer for Colombian Oil Rights --------------------------------------------------------------- Jeb Blount at Reuters reports that OGX Petroleo e Gas Participacoes S.A., now known as Oleo e Gas, received a $44 million offer for five oil exploration and production blocks in Colombia, the company said. The offer involves US$30 million in cash and the assumption of $14 million in future exploration obligations in Colombia, Oleo e Gas said in a statement, according to Reuters. The report relates that it did not give the name of the investor or company making the offer. If approved by a bankruptcy judge, creditors and Oleo e Gas shareholders, the sale will help the Rio de Janeiro-based company pay for leases on offshore oil production ships and its share of investments in output in Brazil, the company said, the report notes. Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participacoes S.A., now known as Oleo e Gas, 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. SIFCO SA: May 6 Hearing on U.S. Preliminary Injunction ------------------------------------------------------ Axle-supplier SIFCO SA commenced restructuring proceedings in Brazil and is now asking the bankruptcy court in the U.S. to recognize the Brazilian proceedings. Rubens Leite, the foreign representative, explained in documents filed in New York that over the course of the past few years, SIFCO, like many other entities in a variety of industries throughout the world, has faced significant challenges. The worldwide recession that has taken hold since 2007 has created an environment of economic distress for companies and individuals alike, and that environment has impacted SIFCO's operations and sales. In addition, SIFCO's operations were impacted over 2012-13 by an unexpected slowdown of the truck market where sales volume fell by 36%. Trucks constitute SIFCO's main market, accounting for 72% of sales in 2011. As a result, SIFCO faces financial and operational hurdles that made it prudent for SIFCO to seek relief under the Brazilian Restructuring Law in order to preserve its value as a going concern and maximize the value of its assets for the benefit of all creditors. SIFCO shareholders authorized the commencement of the Brazilian Proceeding, and on April 18, 2014, authorized the commencement of a Chapter 15 proceeding in the U.S. SIFCO also empowered Rubens Leite to act as SIFCO's foreign representative for the U.S. proceeding. SIFCO initiated the Brazilian Proceeding pursuant to the provisions of Brazilian Restructuring Law, the recuperacao judicial, Federal Law No. 11,101 of February 9, 2005, by submitting a voluntary petition to the Brazilian Court. The restructuring contemplated to be undertaken in the Brazilian Proceeding will achieve a significant restructuring of SIFCO's business, according to Mr. Leite. "SIFCO anticipates that it will emerge from this restructuring process a stronger, more competitive company, and believes that the benefits to be gained from the restructuring process will enable SIFCO to remain a premier supplier of forged and precision machine parts for the global truck and bus manufacturing industry." Pending development and approval of a restructuring plan by the Brazilian Court, SIFCO requires the protection afforded to foreign debtors pursuant to Chapter 15 of the Bankruptcy Code in order to protect its valuable assets in the United States. For example, SIFCO has interests in a certain collateral account maintained by The Bank of New York Mellon in New York, as well as rights under an exclusive supply contract with Westport Axle Corp. covering 100% of Westport's requirements for certain automotive products sold in the United States. Mr. Leite is asking the Court to recognize the Brazilian proceeding as "foreign main proceeding." Pending the Court's consideration of the motion, Mr. Leite has filed an application with the U.S. Court for: a. immediate entry of an order to show cause with a temporary restraining order; b. after notice and a hearing, a preliminary injunction order that will remain in place pending the Court's consideration of the request for entry of an order recognizing the Brazilian Proceeding as a "foreign main proceeding"; and c. scheduling of a hearing on the application and request for a preliminary injunction at the earliest possible time, but in no event prior to the date that the Court sets for the expiration of the temporary restraining order that is requested by this application. U.S. Judge Robert E. Gerber will convene a hearing at 9:45 a.m. on May 6, 2014, at the United States Bankruptcy Court, Alexander Hamilton Customs House, Room 523, One Bowling Green, New York, New York 10004, or as soon thereafter, as counsel may be heard to show why a preliminary injunction should not be granted, pending the issuance of an order an order recognizing the Brazilian Proceeding. Objections to the application are due Friday, May 2 at 5:00 p.m. (Eastern Time). About SIFCO SA Brazilian company SIFCO SA began its operations in 1958, and today it believes that it is the sole producer and supplier of front axles and I-beams for trucks and buses in South America. SIFCO's management and engineers are located outside Sao Paulo, Brazil in the City of Jundiai, Brazil, where it also maintains manufacturing and foundry facilities. In the 1960s, SIFCO was dedicated to supplying the then-recently created domestic Brazilian automotive industry. Eventually, SIFCO began producing high technology forging components in compliance with the most comprehensive requirements of several automotive industry segments, such as tractors and agricultural machines, among others. SIFCO commenced a bankruptcy restructuring in Brazil on April 22, 2014. A day later, on April 23, it filed a Chapter 15 petition in U.S. Bankruptcy Court (Bankr. S.D.N.Y. Case No. 14-bk-11179) in Manhattan, New York. SIFCO 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. SIFCO has $75 million outstanding on senior secured notes with Bank of New York Mellon Corp. as agent. SIFCO is owned by Sifco Metals Participacoes S.A. which is a privately owned company. SIFCO is represented in the U.S. proceedings by Duane Morris LLP, in New York. ========================== C A Y M A N I S L A N D S ========================== BLUE STONE: Creditors' Proofs of Debt Due May 5 ----------------------------------------------- The creditors of Blue Stone Fund are required to file their proofs of debt by May 5, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 3, 2014. The company's liquidator is: Ogier c/o David Cooney Telephone: 815 1851 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands CAC CENTURY: Creditors' Proofs of Debt Due May 23 ------------------------------------------------- The creditors of CAC Century Holdings Ltd are required to file their proofs of debt by May 23, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 31, 2014. 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 CIS EQUITY: Creditors' Proofs of Debt Due May 13 ------------------------------------------------ The creditors of CIS Equity are required to file their proofs of debt by May 13, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 7, 2014. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands HSBC MASTER: Creditors' Proofs of Debt Due May 13 ------------------------------------------------- The creditors of HSBC Master India Fund, Ltd. are required to file their proofs of debt by May 13, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 7, 2014. The company's liquidator is: Ogier c/o Madeleine Welham Telephone: (345) 815-1750 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands KAUAI HOLDING: Commences Liquidation Proceedings ------------------------------------------------ On April 8, 2014, the sole shareholder of Kauai Holding 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 liquidators are: Kitagawa Hisayoshi Kitagawa c/o Mariko Kogo Telephone: +81 3 5219 8777 Facsimile: +81 3 5288 6312 CARD Corporate Services Ltd. Zephyr House, 122 Mary Street, George Town P.O. Box 709 Grand Cayman KY1-1107 Cayman Islands MAOMING FUND: Creditors' Proofs of Debt Due May 14 -------------------------------------------------- The creditors of Maoming Fund are required to file their proofs of debt by May 14, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 10, 2014. The company's liquidator is: Julien Moulin c/o George Bashforth Telephone: +1 (345) 949 4900 Appleby Trust (Cayman) Ltd. 75 Fort Street P.O. Box 1350, George Town Grand Cayman KY1-1108 Cayman Islands NAPIER PARK: Creditors' Proofs of Debt Due May 13 ------------------------------------------------- The creditors of Napier Park Global Macro Cayman Ltd are required to file their proofs of debt by May 13, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 8, 2014. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands RESAT LIMITED: Placed Under Voluntary Wind-Up --------------------------------------------- On March 6, 2014, the sole shareholder of Resat Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 24, 2014, will be included in the company's dividend distribution. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 949-7128 RICAL INVESTMENTS: Creditors' Proofs of Debt Due May 14 ------------------------------------------------------- The creditors of Rical Investments Corporation are required to file their proofs of debt by May 14, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 9, 2014. The company's liquidator is: Appleby Trust (Cayman) Ltd c/o George Bashforth Telephone: +1 (345) 949 4900 75 Fort Street P.O. Box 1350, George Town Grand Cayman KY1-1108 Cayman Islands RIVERSIDE GLOBAL: Creditors' Proofs of Debt Due May 22 ------------------------------------------------------ The creditors of Riverside Global Value Allocation Fund 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 April 1, 2014. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Mourant Ozannes Attorneys-at-Law for the Company Reference: NDL Telephone: +1 (345) 949 4123 Facsimile: +1 (345) 949 4647; or Mourant Ozannes Cayman Liquidators Limited Reference: Peter Goulden Telephone: +1 (345) 949 4123 Facsimile: +1 (345) 949 4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: Opens Books on Dual-Currency, Dual-Tranche Bond -------------------------------------------------------------- Dominican Today, citing Reuters, reports that the Dominican government has opened books on a new dual-currency, dual-tranche (varying risk to investor) bond offering denominated in US dollars and Dominican pesos. It said the sovereign, rated B1/B+/B, "has set initial price thoughts of 7.5% area on a US dollar 30-year bond," according to Dominican Today. It has also set initial price thoughts of 10.125% area on a Dominican peso five-year bond, though investors will be paid in dollars, the report relates. The news agency reports that the proceeds from the 144a/Reg S deal will go towards financing infrastructure projects and to providing support for other sectors of the Caribbean country's economy, the report adds. =========== M E X I C O =========== METALSA S.A.: S&P Affirms 'BB+' CCR; Outlook Stable --------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' long-term corporate credit rating on Metalsa S.A. de C.V. (Metalsa). S&P also affirmed its 'BB+' long-term issue rating on the company's $300 million senior unsecured notes with a recovery rating of '3', indicating its expectation of meaningful (50% to 70%) recovery in the event of a payment default. The outlook remains stable. The ratings on Metalsa reflect its "fair" business risk profile, "intermediate" financial risk profile, and "adequate" liquidity as per S&P's rating criteria. S&P's assessment on Metalsa's "fair" business risk profile reflects the "moderately high" industry risk, "intermediate" country risk, and the company's "fair" competitive position. The business risk profile reflects the company's average operating margins mainly due to its low and variable cost structure and its strong market shares in North America and South America thanks to long-term relationships with its main customers. On the other hand, S&P's view of Metalsa's relative small size, the concentration of about 60% of its revenues in North America, of about 55% in its top three customers (ToyotaMotor Corp., Ford Motor Co., and Chrysler Group LLC), and of about 75% in the production of chassis and body structures for light vehicles, the challenges of integrating less profitable operations from its latest acquisition, and the cyclical nature of the automotive industry constrain the company's business risk profile. S&P's assessment of Metalsa's "intermediate" financial risk profile reflects the company's solid financial metrics, low financial leverage--despite its growth strategy through partially debt-financed acquisitions--comfortable debt maturity schedule, and supportive financial policy framework. Despite some weakening in its operating margins and higher debt in 2013, Metalsa's key financial ratios have remained in line with S&P's expectations. Related Criteria And Research =============== S U R I N A M E =============== SURINAME: S&P Affirms 'BB-' Rating & Revises Outlook to Stable -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on the Republic of Suriname. At the same time, S&P revised the outlook to stable from positive. Our transfer and convertibility (T&C) assessment remains 'BB'. RATIONALE S&P revised the outlook on the Republic of Suriname to stable from positive. S&P believes that the Suriname National Assembly could postpone implementing the government's proposed sovereign wealth fund (SWF) until after parliamentary elections in May 2015. Furthermore, Suriname has a history of weak fiscal policy. It posted a general government fiscal deficit of 4.0% of GDP versus S&P's expectation of a 1.5% of GDP deficit in 2013, pushing net general government debt to 23% of GDP from 16% the previous year. This deficit was partly financed by central bank advances. Public finances may come under renewed pressure as the election nears. In the real economy, Suriname's growth prospects will be significantly affected by a proposed $1.2 billion (more than 20% of GDP) investment in a gold mine located in the Nassau Mountains of Eastern Suriname at Merian. In 2013, the government approved the legal framework governing the investment. The government has the option to a take a 25% stake in a joint venture with Surgold, a Suriname-based unit of Newmont Mining Corp. Newmont, in turn, will decide this quarter whether to proceed with the mine, although Barrick's offer for Newmont may delay the decision. If this joint venture proceeds, S&P expects the government to raise $200 million to $250 million in secured external bank loans to finance a portion of its minority stake. S&P expects the Merian gold mine investment would lift per capita GDP growth to over 3% for the forecast horizon. At the same time, the project would increase the economy's dependence on extractive industries. Gold alone represents two-thirds of exports, 13% of government revenues, and (through wildcat exploration) a large source of informal employment. S&P's ratings on Suriname reflect the constraints of the narrowness of its small, open economy, the vulnerability of the government's fiscal position to commodity price swings, its history of bouts of inflation and currency devaluation reflecting weak fiscal policy, its shallow domestic capital markets, and its high dollarization. Contrasting these factors, macroeconomic stability has improved since 2000; medium-term growth prospects led by foreign direct investment (FDI, including the Merian mine) are strong; current account surpluses have built a foreign exchange reserve, bolstering the external position; the government maintains low debt and interest burdens and has improved debt management; and the government has taken steps to strengthen the tools and the effectiveness of monetary policy. Suriname's external position has strengthened over the past several years, thanks to current account surpluses. The central bank has built an international reserve cushion covering four months of current account payments at the end of 2013 despite having sold $250 million in the course of the year to support the Suriname dollar. Suriname's external debt burden is low. Strong gold prices put Suriname's current account and its international investment position in surplus between 2009 and 2012. However, Suriname swung to a current account deficit in 2013, and S&P expects that an external borrowing by the government for the proposed gold equity stake will raise Suriname's net external liabilities to more than 40% of current account receipts (CARs) over 2014-2015. The completion of the Staatsolie oil refinery expansion in the fourth quarter of 2014 will improve Suriname's current account balance by reducing refined oil imports. (It will also increase government revenue.) S&P expects that mining-related capital goods imports during 2014-2015, however, will offset these savings temporarily. S&P projects that these factors will contribute to current account deficits of 6% to 8% during 2014-2015 but that the current account will return to a nearly balanced position thereafter. The government's financing of its equity stake with an external commercial loan will raise Suriname's gross external financing needs this year to more than 90% of CARs and usable reserves. Suriname retains a low net general government debt burden, 23% of GDP at the end of 2013, thanks in part to bilateral debt forgiveness during the 2000s. The government's interest burden is low, although S&P expects the government loan to finance its mining shares will raise the general government interest expense to near 10% of revenues this year. A shallow domestic capital market limits the government's domestic financing options. Dollarization of Suriname's resident financial system remains high. Nearly half of other depository corporation deposits and 30% of claims on residents are denominated in foreign currency. Suriname's monetary policy flexibility is limited by its de facto pegged foreign exchange rate regime. S&P, therefore, equalizes the local currency ratings with the foreign currency ratings. OUTLOOK The stable outlook balances S&P's tempered view on public finances with the country's robust growth prospects if the Merian mine goes forward. It also indicates that there is less than a one-in-three chance that S&P will change its rating on Suriname in the next 12 months. Upward pressure on Suriname's rating could build if the government implements a stronger fiscal policy through the political cycle, enhances its revenue flexibility through value-added tax implementation, or begins to fund the proposed SWF to insulate its fiscal position from adverse terms of trade. The expected boost to the economy and government revenues from the Merian mine would give the government space to take such measures, if it so chooses. On the other hand, downward pressure on the rating on Suriname could emerge if the fiscal balance and debt burden notably deteriorate or an external shock--such as a further fall in the gold price--materially affects its external liquidity position. 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; Outlook To Stable To From Suriname (The Republic of) Sovereign Credit Rating BB-/Stable/B BB- /Positive/B Ratings Affirmed Suriname (The Republic of) Transfer & Convertibility Assessment BB ============= U R U G U A Y ============= COOPERATIVA DE AHORRO: Fitch Affirms LT IDRs at 'B' --------------------------------------------------- Fitch Ratings has affirmed Cooperativa de Ahorro y Credito FUCEREP's (FUCEREP) long-term Issuer Default Ratings (IDRs) at 'B'. The long-term Rating Outlook is Stable. Key Rating Drivers FUCEREP's ratings affirmation is driven by its adequate asset quality benefited from its favorable business model, since a high proportion of the total loans are debited directly from the debtors' payroll mitigating credit risk. Ratings also factor its good liquidity management and its growing deposit base. The ratings also reflect the cooperative's week efficiency ratios and the recent step back in financial performance mainly affected by extraordinary regulatory impairment charges. FUCEREP's ratings consider as well its sustained and solid capital ratios. Since July 2013, the cooperative is subject to a new Minimum Net Equity (MNE). However, at end-2013 FUCEREP exceeded the required level, and it estimates that annual members' contributions and future profits would allow it to reach future requirements. The company also has alternative plans to be implemented, if needed, to sustain MNE at the regulatory levels. FUCEREP has a historically well contained and manageable impaired loan ratio (6.2% on average from 2009 - 2013). Loan loss reserve coverage reached 158.5% at end-2013. Concentrations by creditor are not elevated, the 10 largest risks represents 6.1% of the total portfolio (14.5% of the total equity), but there is some concentration by employer. Write-off ratio remains at low levels and restructures are limited. Fitch considers that some pressures in asset quality ratios could arise in the future from projected growth and planned expansion of the non-payroll deductible loans, which at the moment show relatively high impairment levels above the market median (14% for non-payroll deductible loans). The last two years of improved financial performance, mainly driven by FUCEREP's wide interest margins and asset quality, reverted in 2013. The entity registered net losses mainly affected by extraordinary regulatory provisioning charges (UYU$7 million), a deteriorated cost to income ratio, a reduction in the average loan interest rate (an impact of nearly UYU3.0 million) and a lower than expected growth. Results were partly benefited by an extraordinary net gain (UYU$2.4 million) on sovereign bonds sale. Net interest margin has been decreasing over the past five years, although it remains wide and is the largest contributor to operating profit. Fitch does not expect profitability to continue negative in 2014, although it is expected to remain pressured. FUCEREP's operational cost base is high; staff costs account nearly for two thirds of operating expenses which deteriorated in 2013 due to technology expenditures and a new branch opening, among other extraordinary charges. Fitch believes FUCEREP's still has room to improve its cost to income ratio, increasing salaries expenditures should ease in the next years given some recent agreements in the sector. However, the agency only expects the ratio to return to its historical average (around 81%) progressively, given the projected growth and expansion of the operation throughout the country. Liquidity risk is not a major concern given the significant portion of liquid assets that represented 41.4% of the total deposits (including regulatory requirements) at Dec. 31, 2013. This level of liquidity is considered adequate given the entity's comfortable gap analysis in addition to the reasonable contingency liquidity plan. The cooperative is taking some steps to gradually adapt its business model to an increasing share of non-payroll deducted loans and to expand operations inside the country. FUCEREP's ratings consider the risk that the entity could face, given the increased competition and the risen indebtedness of the population. In 2013, the origination and collection processes were strategically enhanced to direct its tactic to the new market segment. FUCEREP has a well balanced (among current and term) and low-cost deposit base that has steadily grown (18.9% in 2013). Deposit concentration remains high; the top 10 depositors represented 16.1% of total deposits as of end-2013 (50 depositors were 39.2% of the total base). However, this is partially mitigated by the liquidity management. Support Rating And Support Rating Floor Affirmation of the Support Rating and Support Rating Floor at '5' and 'NF', respectively, reflects Fitch's opinion that extraordinary external support if needed, although possible, cannot be relied upon. Rating Sensitivities FUCEREP's ratings could benefit from sustained progresses in efficiency (65%-70%) and profitability metrics that could arise from expected portfolio growth and product diversification, without deteriorating its asset quality. On the other hand, the non-expected inability to recover its profitability or material deteriorations in asset quality that could result from planned changes in the portfolio composition could cause negative rating actions. Fitch affirms FUCEREP's ratings as follows: -- Long-term foreign currency IDR at 'B', Stable Outlook; -- Long-term local currency IDR at 'B', Stable Outlook; -- Support rating '5'; -- Support floor at 'NF'. *********** 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 * * *