/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/140519.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, May 19, 2014, Vol. 15, No. 97 Headlines A R G E N T I N A ARGENTINA: Economy Contracts for First Time Since 2012 YAGANES: Co-Founder in Refinancing Talks for Bankrupt Venture B A H A M A S ARTOC BANK: Issues Notice of Final Dividend B R A Z I L OSX BRASIL: Proposes Repaying Creditors Over 25 Years C A Y M A N I S L A N D S ACUMA LIMITED: Shareholders' Final Meeting Set for May 27 AMATHEA V: Members' Final Meeting Set for June 2 CONOCOPHILLIPS LNG: Shareholders' Final Meeting Set for June 4 GENESIS PARTNERS II: Shareholders' Final Meeting Set for May 28 INNOFIDEI INC: Members' Final Meeting Set for May 27 KINGS CROSS: Shareholders' Final Meeting Set for May 30 MIDDLESEX HOLDINGS: Shareholders' Final Meeting Set for May 30 NS CAPITAL MASTER: Shareholder to Receive Wind-Up Report on May 26 NS CAPITAL: Shareholder to Receive Wind-Up Report on May 26 RYE SELECT: Creditors' Meeting Scheduled for May 26 WMA-WEALTH: Members' Final Meeting Set for June 19 D O M I N I C A N R E P U B L I C BANCO BHD: Fitch Affirms Long-term Currency IDR at 'B' BANCO MULTIPLE LEON: Fitch Affirms Currency LT IDR at 'B' XSTRATA PLC: Bill to Create Park at Planned Mine Stalls in Senate J A M A I C A JAMAICA: IMF Issues Statement in Conclusion of Staff Mission M E X I C O BANCO MERCANTIL: Moody's Confirms Ba3 Rating on Class B BNTECB X X X X X X X X X BOND PRICING: For the Week From May 12 to May 16, 2014 - - - - - ================= A R G E N T I N A ================= ARGENTINA: Economy Contracts for First Time Since 2012 ------------------------------------------------------ Charlie Devereux at Bloomberg News reports that Argentina's economy contracted for the first time since September 2012, surprising analysts after the government devalued the peso and raised interest rates. Economic activity, a proxy for gross domestic product, fell 0.9 percent in March from a year earlier, Argentina's statistics agency said in a statement obtained by Bloomberg News. The median estimate in a Bloomberg survey of nine economists was for growth of 0.8 percent. Economic activity fell 0.9 percent from February. Argentina's economy is slowing as the government implements policies to stem a drain on the country's foreign reserves, which are hovering near a seven-year low, Bloomberg News notes. Vehicle sales fell 40 percent in March from a year earlier after President Cristina Fernandez de Kirchner's government devalued the peso by 19 percent in January and Brazil's economy showed signs of slowing, the reports adds. "The devaluation ended up complicating economic activity that already showed signs of difficulties," Belen Olaiz, an analyst at Buenos Aires-based research company abeceb.com, said in a telephone interview with Bloomberg News. "Private consumption was the biggest driver of growth in the past 11 years, and this year it's becoming one of the main drags," Ms. Olaiz added. Industries such as electronics and construction have been affected as the government reduced imports to preserve dollars, the reported quoted Ms. Olaiz as saying. Abeceb.com expects the economy to contract 1.5 percent in the first quarter from a year earlier and by the same amount in 2014, she said, Bloomberg News relays. Bloomberg News notes that central bank reserves have fallen 28 percent in the past year to $28.4 billion. Imports in March fell 4 percent from a year earlier even as consumer prices have risen an accumulated 11.5 percent in the first four months of the year. Construction activity contracted 4.2 percent in March from the same period a year earlier, Bloomberg News adds. YAGANES: Co-Founder in Refinancing Talks for Bankrupt Venture ------------------------------------------------------------- Eva Tallaksen at Undercurrent News reports that Charles Anastasia, the founder and chief executive officer of US shellfish supplier Orion Seafood International, said talks are underway with a large seafood group to rescue the Argentinian crab venture Yaganes. Although Mr. Anastasia as recently as late March denied talks that Yaganes was heading towards bankruptcy, he now confirmed that the company filed for the equivalent of Chapter 11 -- bankruptcy protection -- in April, according to Undercurrent News. The company was faced with no alternative, Mr. Anastasia told Undercurrent News. The report notes that Mr. Anastasia, who co-founded Yaganes with Andrea Marcela Torres Espinoza in June 2012, is confident that the venture will be back on its feet for the start of the next season in October. "We are currently working on refinancing the business," Mr. Anastasia told Undercurrent on May 15. We're taking on a partner with significant financial means to renegotiate the debt," Mr. Anastasia said. The report relates that the talks are at an advanced stage and should complete within the next 60 days, Mr. Anastasia said. Mr. Anastasia declined to divulge the name of the partner, but described it as a "well established and very sound seafood group". The deal will also involve a capital injection. "Chapter 11 is about a major reorganization of the business. We're changing every aspect, and injecting more capital," Mr. Anastasia said, the report notes. The report relays that the Argentinian crab fishing season runs mainly from October to the end of April. The aim is therefore to have Yaganes back on its feet by October, the report notes. Several industry sources have in the past weeks and months told Undercurrent that Yaganes was in difficulty, and struggling to meet its payments both to suppliers and workers, the report discloses. Speaking in March, Mr. Anastasia had pointed out that business in Argentina is challenging, citing the country's spiraling inflation, currency devaluation and costs, and militant unions as workers see their earnings get wiped out, the report recalls. Indeed Yaganes is hardly the only example of a company struggling to cope with Argentina's business climate, the report notes. Under Fire for 'Ghost Fishing' According to Argentinian media, Yaganes is now also under fire for leaving crab traps in the water after the end of the season, leaving it accused of "ghost fishing," the report relays. The report notes that Mr. Anastasia confirmed the company still has traps out at sea, but said they have a boat ready in the docks and fueled to go fetch them. The delay, Mr. Anastasia said, is down to negotiations with the unions, which are not recognizing Yaganes' Chapter 11 status, the report says. The company employs some 200 workers during the fishing season. These are represented by six different unions. Yaganes has two plants and owns or leases six fresh crab vessels delivering to the plants. The first plant was acquired in Caleta Paula from a firm that was shutting down. The second plant is in Puerto Madryn, where it has licenses to capture crab from the Golfo San Jorge. ============= B A H A M A S ============= ARTOC BANK: Issues Notice of Final Dividend ------------------------------------------- Artoc Bank & Trust Limited issued a notice of final dividend of 8.75 cents per $1.00. The dividend is payable on May 20, 2014 at Pannell House, Elizabeth Avenue, in Nassau, Bahamas. Attorneys for the Liquidator can be reached at: McKinney, Bancroft & Hughes Mareva House 4 George Street Nassau, Bahamas Artoc Bank & Trust Limited is a Bank and Trust Company located at 3rd Floor, Charlotte House, Charlotte Street, Nassau. =========== B R A Z I L =========== OSX BRASIL: Proposes Repaying Creditors Over 25 Years ----------------------------------------------------- Juan Pablo Spinetto and Peter Millard at Bloomberg News report that OSX Brasil SA, former billionaire Eike Batista's shipbuilder that filed for bankruptcy protection last year, is seeking approval to pay back creditors over 25 years in a restructuring plan released May 17. The company is also looking for partners to finish building a shipyard at the Acu port in Rio de Janeiro state and may seek more funds to stay afloat, it said in the plan delivered to a Rio court, according to Bloomberg News. Approval is "essential" for the company to sell two production vessels to help pay debt, it said. Debt, including money owed by a leasing unit excluded from the judicial process, is calculated at $2.6 billion, Bloomberg News relates. Bloomberg News notes that OSX sought protection from creditors last year after Batista's oil company, the shipbuilder's main client, abandoned fields it had previously declared commercial. OSX began building floating production vessels for its sister company before Batista tested the geology at offshore exploration wells that struck oil but failed to maintain production, Bloomberg News relates. "It's essential that the OSX Group restructures its debt with creditors to achieve the desired financial and operational recovery," the company said in the regulatory filing obtained by Bloomberg News. "The goal is to develop the shipyard activities and with that generate cash to fulfill the company's obligations," the company said, Bloomberg News discloses. OSX proposed to repay creditors in 22 annual installments after a three-year grace period, it said in the plan, Bloomberg News notes. About OSX Brasil Brazilian shipbuilding firm OSX Brasil SA, controlled by businessman Eike Batista, filed for protection from creditors on November 2013 on liabilities of BRL5.34 billion (US$2.30 billion). OSX Brasil filed for bankruptcy -- called "judicial recovery" in Brazil -- after Oleo e Gas Participacoes SA, formerly known as OGX Petroleo e Gas Participacoes, filed for bankruptcy on Oct. 30, 2013. OSX had outstanding debts of around US$2.2 billion as of June 30, 2013, including dollar-and real-denominated loans and bonds held by a mix of banks, investors and government institutions, such as Brazil's Merchant Marine Fund, according to The Wall Street Journal. The move on Nov. 11 at a Rio de Janeiro court follows a default and bankruptcy filing the prior month for Mr. Batista's flagship oil firm OGX Petroleo e Gas Participacoes SA, n/k/a Oleo e Gas, according to the WSJ report. The firm went public in 2008 for $4.1 billion but failed to produce nearly any of the up to 10.8 billion barrels it claimed to have. ========================== C A Y M A N I S L A N D S ========================== ACUMA LIMITED: Shareholders' Final Meeting Set for May 27 --------------------------------------------------------- The shareholders of Acuma Limited will hold their final meeting on May 27, 2014, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jean-Marc Lesieur 10 Market Street, Suite 711, Camana Bay Grand Cayman, KY1-9006 Cayman Islands AMATHEA V: Members' Final Meeting Set for June 2 ------------------------------------------------ The members of Amathea V Ltd. will hold their final meeting on June 2, 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 CONOCOPHILLIPS LNG: Shareholders' Final Meeting Set for June 4 -------------------------------------------------------------- The shareholders of Conocophillips LNG, Ltd. will hold their final meeting on June 4, 2014, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands GENESIS PARTNERS II: Shareholders' Final Meeting Set for May 28 --------------------------------------------------------------- The shareholders of Genesis Partners II LDC will hold their final meeting on May 28, 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: CIBC Private Equity Management, Inc. E. Shalev Management 2000 (1999) Ltd. Barnaby Gowrie of Walkers Telephone: +1 (345) 914-6365 INNOFIDEI INC: Members' Final Meeting Set for May 27 ---------------------------------------------------- The members of Innofidei Inc will hold their final meeting on May 27, 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: Yuan Kai Tsai Telephone: +8610 8215 1933 Facsimile: +8610 8215 1813 11th Floor, No. 79 Sec. 1, Hsin Tai Wu Road His Chi, Taipei Hsien Taiwan, Province of China KINGS CROSS: Shareholders' Final Meeting Set for May 30 ------------------------------------------------------- The shareholders of Kings Cross Holding Limited will hold their final meeting on May 30, 2014, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Anthony Beovich c/o The Blackstone Group 345 Park Avenue, 31st Floor New York, New York 10154 United States of America Telephone: +1 (212) 583 5877 MIDDLESEX HOLDINGS: Shareholders' Final Meeting Set for May 30 -------------------------------------------------------------- The shareholders of Middlesex Holdings JV Ltd. will hold their final meeting on May 30, 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: Anthony Beovich c/o The Blackstone Group 345 Park Avenue, 31st Floor New York, New York 10154 United States of America Telephone: +1 (212) 583 5877 NS CAPITAL MASTER: Shareholder to Receive Wind-Up Report on May 26 ------------------------------------------------------------------ The shareholder of NS Capital Master Fund, Ltd. will receive on May 26, 2014, at 8:45 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 NS CAPITAL: Shareholder to Receive Wind-Up Report on May 26 ----------------------------------------------------------- The shareholder of NS Capital Offshore, Ltd. will receive on May 26, 2014, at 8:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943-3100 RYE SELECT: Creditors' Meeting Scheduled for May 26 --------------------------------------------------- The Joint Official Liquidators of Rye Select Broad Market Insurance Portfolio LDC will be holding a meeting of creditors, via teleconference on May 26, 2014 at 10:00 a.m. Cayman Islands time. Creditors will be able to participate in this meeting in person or by proxy provided that they have submitted a completed proxy form no later than May 22, 2014. Creditors wishing to join the conference call should contact: Liam Hardie Zolfo Cooper Suite 776 10 Market Street Camana Bay Grand Cayman KY1-9006 Cayman Islands Telephone: (345) 814-4037 Fax: (345) 946 0082 E-mail: liam.hardie@zolfocooper.ky WMA-WEALTH: Members' Final Meeting Set for June 19 -------------------------------------------------- The members of WMA-Wealth Management Advisory Ltd will hold their final meeting on June 19, 2014, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== BANCO BHD: Fitch Affirms Long-term Currency IDR at 'B' ------------------------------------------------------ Fitch Ratings has completed the sectoral review of three private sector banks and related companies, as well as a state-owned bank in the Dominican Republic. A full list of rating actions is at the end of this press release. The four banks included in this peer review are the largest in its market and have assets between USD7.2 billion and USD1.2 billion, with operations primarily in Dominican Republic. The International Ratings (IDR) to Banco Popular Dominicano (BPD), Banco BHD SA (BHD) and Reserve Bank of the Dominican Republic, Banco Multiple Services (BANRESERVAS), are driven by their Viability Ratings (VR) or strengths intrinsic financial. The IDRs Banco Multiple Leon (BML), consider the extraordinary potential institutional support. Based on the financial statements of 2013, indicators of asset quality remained stable or improved in all banks covered in this review, reflecting the moderate loan growth and a strengthening of the local economy. However, the asset quality indicators of Dominican banks remained weaker than their international peers; commercial / universal banks with VR in the category of b. Given the improved economic conditions in Dominican Republic, Fitch believes that trends in asset quality indicators are sustainable 2014. While the profitability of BML was reduced, this was stable in the other private banks in 2013. Growth assets increased efficiency and improved profitability BANRESERVAS during the same period. Fitch expects the domestic economy stronger strengthen the financial performance of banks next year due to accelerating growth and improving credit quality. The preferred measure of capitalization Fitch is the indicator of Capital Base Fitch / Risk Weighted Assets; however, in light of the significant exposure of banks to sovereign tangible indicator / total assets for comparative purposes heritage was used. This measure had the strongest BHD capitalization, while BANRESERVAS was the weakest among the big banks Dominicans at the end of 2013. BHD capitalization was in line with their national peers and outperformed its peers with similar qualifications at the end of 2013. Contrast, BPD, BML and BANRESERVAS had a weaker than average capitalization of both the financial system and their international peers. However, even with the acceleration of growth in assets, Fitch expects the capitalization of banks to remain stable or improve in 2014 to the extent that the internal generation of capital increases. Common to other banks in emerging markets, all Dominicans banks included in this review have a broad negative mismatch between assets and current liabilities. A high proportion of the investment portfolio of these banks was issued by the Dominican government. Fitch notes that the same may have limited liquidity in a stress scenario, given the shallowness of the domestic debt market. This contractual maturity gap is partially mitigated by higher deposit reserve requirements, stability of deposits in larger banks, and the availability of lines of credit from other financial institutions. The rating actions presented below are the result of a periodic review of these four banks. Fitch concludes that the great Dominican banks are well positioned to take advantage of the faster growth of the local economy. International and national ratings affirmed as part of this sector review were: BPD - National long-term rating to 'AA-(dom)'; Outlook Stable; - National short-term rating at 'F1 + (dom)'. - National Emission Rate Subordinated Debt at 'A + (dom)' BHD - Long-term foreign and local currency IDR at 'B', Outlook Stable; - Classification of Short-term foreign and local currency IDR at 'B' - Viability Rating at 'b'; - Support rating at '5 '; - Support Floor at 'NF'; - National long-term rating to 'AA-(dom)'; Outlook Stable; - National short-term rating at 'F1 + (dom)'. BML - Long-term foreign and local currency IDR at 'B', Outlook Stable; - Classification of Short-term foreign and local currency IDR at 'B' - Viability Rating at 'b-'; - Support Rating to '4 '; - National long-term rating to 'AA-(dom)'; Outlook Stable; - National short-term rating at 'F1 + (dom)'. - National Emission Rate Subordinated Debt at 'A + (dom)'. BANRESERVAS - Long-term foreign and local currency IDR at 'B', Outlook Stable; - Classification of Short-term foreign and local currency IDR at 'B' - Viability Rating at 'b'; - Support rating at '4 '; - Support Floor at 'B'; - Long-term subordinated debt to 'B-'; - National long-term rating to 'AA-(dom)'; Outlook Stable; - National short-term rating at 'F1 + (dom)'. Additionally, Fitch has affirmed the ratings of the related entities of banks as follows: Popular Bank Ltd. Inc and Subsidiary (People's Bank) - National long-term rating to 'AA-(dom)'; Outlook Stable; - National short-term rating at 'F1 + (dom)'; - National long-term rating to 'BB + (pan)'; Outlook Stable; - National short-term rating at 'B (pan)'. BHD International Bank (Panama) - National long-term rating to 'AA-(dom)'; Outlook Stable; - National short-term rating at 'F1 + (dom)'. BHD Valores Puesto de Bolsa SA: - National long-term rating to 'AA-(dom)'; Outlook Stable; - National short-term rating at 'F1 + (dom)'; - National Commercial Paper rating at 'F1 + (dom)'. Values Leon SA: - National long-term rating to 'AA-(dom)'; Outlook Stable; - National short-term rating at 'F1 + (dom)'; - National Corporate Bonds Rated 'AA-(dom)'. BANCO MULTIPLE LEON: Fitch Affirms Currency LT IDR at 'B' --------------------------------------------------------- Fitch Ratings has completed its peer review for three private sector banks and their related entities as well as one state-owned bank in the Dominican Republic. The rating actions are listed at the end of this commentary. The four banks included in this peer review are among the largest banks in their market and had assets between USD7.2 billion and USD1.2 billion, with operations primarily in the Dominican Republic. The Issuer Default Ratings (IDRs) of Banco Popular Dominicano (BPD) and Banco BHD S.A.(BHD) and Banco de Reservas de la Republica Dominicana, Banco de Servicios Multiples (BANRESERVAS) are driven by their Viability Ratings (VRs), or stand-alone intrinsic financial strengths. Banco Multiple Leon's (BML) IDRs factor in potential extraordinary institutional support. Based on 2013 financial statements, asset quality indicators remained stable or improved at all the banks covered in this review, driven by moderate loan growth and a strengthening local economy. However, asset quality indicators at Dominican banks were weaker than international peers (emerging market commercial/universal banks with a 'b' category VR). Given better economic conditions in the Dominican Republic, Fitch believes asset quality indicator trends will be sustained in 2014. While BML's profitability declined, it remained flat at the other private sector banks in 2013. Asset growth and better efficiency increased BANRESERVAS' profitability during this same period. Fitch expects a stronger domestic economy to strengthen the banks' financial performance over the next year due to accelerating growth and improvements in loan quality. Fitch's preferred measure of capitalization is its Fitch Core Capital/Weighted Risks ratio. However, in light of the banks' material exposure to the sovereign, banks' tangible common equity/total assets ratios were used for comparison purposes. By this measure, BHD had the strongest capitalization, while BANRESERVAS had the weakest among large Dominican banks at year- end 2013 (YE2013). BHD's capitalization was in line with domestic peers and exceeded that of similarly rated peers at YE2013. By contrast, BPD, BML and BANRESERVAS all had weaker capitalization than both the system average and international peers. However, even with accelerating asset growth Fitch expects bank capitalization to remain stable or improve in 2014 as internal capital generation increases. As is common to other emerging market banks, all of the Dominican banks included in this review have a large negative mismatch between short-term assets and liabilities. A high proportion of these banks' securities holdings were issued by the Dominican government. Fitch notes these can be of limited liquidity in a stress scenario, given the shallow domestic debt market. This contractual maturity gap is somewhat mitigated by high deposit reserve requirements, deposit stability at the largest banks, and the availability of credit lines from other financial institutions. The international and national ratings affirmed as part of this peer review were as follows: BPD --Long-term National rating at 'AA-(dom)'; Stable Outlook; --Short-term National rating at 'F1+(dom)'. --Long-term National subordinated debt at 'A+(dom)' BHD --Foreign and local currency long-term IDR at 'B'; Stable Outlook; --Foreign and local currency short term IDR at 'B'; --Viability Rating at 'b'; --Support at '5'; --Support Floor at 'NF'; --Long-term National rating at 'AA-(dom)'; Stable Outlook; --Short-term National rating at 'F1+(dom)'. BML --Foreign and local currency long-term IDR at 'B'; Stable Outlook; --Foreign and local currency short term IDR at 'B'; --Viability Rating at 'b-'; --Support at '4'; --Long-term National rating at 'AA-(dom)'; Stable Outlook; --Short-term National rating at 'F1+(dom)'; --Long-term National subordinated debt at 'A+(dom)'. BANRESERVAS --Foreign and local currency IDRs at 'B'; Stable Outlook; --Short-term foreign and local currency IDRs at 'B'; --Viability Rating at 'b'; --Support Rating at '4'; --Support Floor at 'B'; --Long-term subordinated notes at 'B-'; --National long-term rating at 'AA-(dom)'; Stable Outlook; --National short-term rating at 'F1+(dom)'. In addition, Fitch has affirmed the banks' related entities ratings as follow: Popular Bank Ltd. Inc y Subsidiaria (Popular Bank) --Long-term national rating at 'AA-(dom)'; Stable Outlook; --Short-term national rating at 'F1+(dom)'; --Long-term national rating at 'BB+(pan)'; Stable Outlook; --Short-term national rating at 'B(pan)'. BHD International Bank (Panama): --Long-term National rating at 'AA-(dom)'; Stable Outlook; --Short-term National rating at 'F1+(dom)'. BHD Valores Puesto de Bolsa SA: --Long-term National rating at 'AA-(dom)'; Stable Outlook; --Short-term National rating at 'F1+(dom)'; --Short-term National senior unsecured debt rating at 'F1+(dom)'. Valores Leon S.A: --Long-term National rating at 'AA-(dom)'; Stable Outlook; --Short-term National rating at 'F1+(dom)'; --Long-term National senior unsecured debt rating at 'AA-(dom)'. XSTRATA PLC: Bill to Create Park at Planned Mine Stalls in Senate ----------------------------------------------------------------- Dominican Today reports that Senate issued a 30-day deadline to its commission charged with studying the bill to create Loma Miranda National Park, after La Vega senator Euclides Sanchez ask the full floor to strip the commissioners of their duty for in his view failing to render their report on time. Loma Miranda is the site where Xstrata Nickel currently seeks authorization to extract metal ores. The deadline, approved by 19 senators of the 24 of the lawmakers present, orders the Special Commission chaired by Rafael Calderon to render the report on June 14, according to Dominican Today. Mr. Sanchez demanded that his colleagues strip the Commission of its duty after it failed to issue its report on December 19, and had yet to request an extension, Dominican Today notes. Dominican Today discloses that Jose Maria Sosa, spokesman for the ruling PLD party senators, said Mr. Sanchez's request surprised his colleague, and that the PLD caucuses agreed give the Commission 15 more days to render its report. As reported in the Troubled Company Reporter-Latin America on Jan. 22, 2014, Dominican Today said that Chief Executive Officer of Xstrata PLC's Falcondo reiterated that the company's presence in the country depends on a long term mining, with cheap electricity available, to produce and compete in world markets. David Soares said they pin their hopes of extracting nickel at the controversial site of Loma Miranda, between La Vega and Bonao (central), for which they expect to get the mining permit, according to Dominican Today. But environmental and civil society groups could keep them from carrying out the project, after the Chamber of Deputies agreed with the protesters and passed a bill which declares Loma Miranda a protected area, arguing that much of the Cibao region's (north) water depends on it, the report related. Xstrata PLC is the operator of Falconbridge Dominicana, C. por A. ("Falcondo") with an 85.26% ownership. Falcondo is a ferronickel surface mining operation located in the Dominican Republic with operations dating since 1971. Headquartered in Zug, Switzerland, Xstrata PLC is a major producer of coal, copper, nickel, primary vanadium and zinc and the largest producer of ferrochrome. ============= J A M A I C A ============= JAMAICA: IMF Issues Statement in Conclusion of Staff Mission ------------------------------------------------------------ An International Monetary Fund (IMF) mission visited Jamaica during May 5-16, 2014 to conduct discussions on the Article IV Consultation and fourth review of Jamaica's IMF-supported program under the Extended Fund Facility (EFF). The mission met with the Prime Minister, Hon. Portia Simpson- Miller, the Minister of Finance and Planning, Hon. Peter Phillips, Bank of Jamaica Governor Brian Wynter, Financial Secretary Devon Rowe, senior government officials, as well as representatives of the private sector and civil society. The Article IV Consultation provided an opportunity to take a fresh look at the reform strategy, take stock of achievements in the first year of program implementation, and consider critical reforms to be implemented in the remainder of the program period. At the conclusion of the mission, Mr. Jan Kees Martijn, the IMF's mission chief for Jamaica, issued the following statement in Kingston: "The economic outlook is improving. Since the start of the program in early 2013, crisis risks have receded, growth has picked up, net exports are stronger, inflation has been brought under control, and reserves are starting to recover. Economic activity is tentatively estimated to have expanded by 0.9 percent in 2013/14, with year-on-year growth amounting to 1.6 percent in the first quarter of 2014. Consumer price inflation moderated to 7.6 percent in April. The unemployment rate declined to 13.4 percent in January 2014, down from 14.9 percent in October and from 14.5 percent in January of last year. The current account has shown an ongoing improvement, and net international reserves increased to US$1.3 billion by end-April (with gross reserves at US$2.1 billion, equivalent to 3« months of imports). The execution of the 2013/14 budget has been broadly on track, as the shortfalls in tax revenues due to weak economic demand were offset through strict expenditure control. The 2013/14 central government primary surplus amounted to 71/2 percent of GDP, as planned. "The program is on track. The IMF mission reached preliminary understandings with the authorities on a set of economic policies detailed in an updated Letter of Intent. These preliminary understandings are subject to approval by the IMF's Management and Executive Board. Overall policy implementation under the program remains strong. All quantitative performance targets for end- March were met, as was the indicative target on social spending. The indicative target on tax collection was missed. Structural reforms are on track, albeit with some minor delays. Provided that performance remains strong, Board consideration of the fourth review of Jamaica's IMF-supported program under the EFF could take place in June. Upon approval, SDR 45.95 million (about US$71 million) would be made available to Jamaica. "Much has been achieved in the first year of program implementation. There has been significant progress in implementing the needed reforms. A large fiscal adjustment has been put in place, achieving a primary surplus that is exceptional by international standards. Important steps to sustain that adjustment have has been made in the areas of tax reform and in institutionalizing a meaningful fiscal rule. The framework for the financial system has been fortified, monetary policy has been restrained, and the exchange rate has helped to restore a good deal of Jamaica's lost competitiveness. "This is a marathon effort and there are no shortcuts. Jamaica's economic transformation program offers a path from decades of stagnation to a future of sustained and vibrant growth. Emerging from the ingrained trap of low-growth and high debt requires a fundamental reorientation of policies. This will not happen overnight but will take several years of concerted economic restructuring. The government's program is appropriately centered on a sustained fiscal consolidation supported by wide-ranging supply side reforms to kick-start growth. Reducing debt to a sustainable level is expected to take a decade of fiscal restraint and multiple years of productivity-enhancing policies. "Broad social support for the reform program needs to be maintained. The recovery remains tentative and the social costs of the adjustment effort have been substantial. Investor confidence remains hesitant and higher growth and job creation are needed. Without these, there is a risk that societal support for the reform effort will be undermined. In this context, an ongoing emphasis on safeguarding social spending and increasing the social safety net is critical. "The reform agenda is challenging. A reorientation of fiscal policy remains at the core of the adjustment effort. The immediate weakness of fiscal revenues calls for the prompt and steadfast implementation of the action plan to improve tax collection. Public sector reform needs to be stepped up without delay; a lasting fiscal consolidation that supports rather than hinders private sector growth will require a smaller and more efficient public service. The growth impact of scarce public investment needs to be leveraged through structured investment planning, prioritization and budgeting. Fiscal risks need to be carefully managed through tackling public sector inefficiencies, lessening unfunded pension obligations, commercializing loss- making public enterprises, and putting in place well-structured public-private partnerships. "Determined action to boost growth is a must. Removing red tape and boosting competitiveness will bolster growth and job creation. The return to a more flexible exchange rate has resulted in important improvements in price competitiveness, and should be maintained. Confidence in the coherence of policies will be critical for boosting investor sentiment but private investment will only return if efforts are also focused on removing pervasive red tape and bureaucracy. "While the overall stance of monetary policy has been broadly appropriate, policy should shift towards greater reliance on interest rate channels. Containing inflationary pressures in face of exchange rate depreciation, and restoring an adequate level of reserves, necessitate a cautious monetary policy stance. This, however, needs to be weighed against the risk of excessively tight liquidity conditions undermining investment and creating risks in the financial system. The recent creation of a standing liquidity window and the expansion of repo instruments are welcome steps, but their design should be improved. "Vulnerabilities within the financial system need to be proactively addressed. The business model of the securities dealers needs to be reoriented. The next steps of the reform of the "retails repo" model should be implemented as soon as adequate safeguards have been put in place. "The mission would like to thank the authorities and technical staff for their excellent cooperation." =========== M E X I C O =========== BANCO MERCANTIL: Moody's Confirms Ba3 Rating on Class B BNTECB -------------------------------------------------------------- Moody's de Mexico S.A. de C.V. has confirmed its Baa3 (sf) (Global Scale) and Aa2.mx (sf) (National Scale) ratings on BNTECB 07 senior debt certificates. Moody's also has confirmed its Ba3 (sf) (Global Scale) and A3.mx (sf) (National Scale) ratings on BNTECB 07-2 subordinated debt certificates. This action concludes the review Moody's initiated on 14 May 2013, when it placed the ratings on review for downgrade. Interest and principal payments to certificate holders are backed by cash flow from a portfolio of loans to Mexican states and municipalities by Banco Mercantil del Norte S.A., Institucion de Banca Multiple, Grupo Financiero Banorte (A3 bank deposits and local currency, Aaa.mx Mexican National Scale). Most of the securitized loans are backed by federal participation revenues assigned to a trust established under the laws of Mexico. Originator: Banco Mercantil del Norte S.A., Institucion de Banca Multiple, Grupo Financiero Banorte Trustee: CI Banco S.A., Institucion de Banca Multiple Class A BNTECB 07: Ratings confirmed to Baa3 (sf) / Aa2.mx (sf) Global Scale and Mexican National Scale Class B BNTECB 07-2: Ratings confirmed to Ba3 (sf) / A3.mx (sf) Global Scale and Mexican National Scale Ratings Rationale The ratings confirmation is based on the improvement in the credit quality of the portfolio as reflected in Moody's assessment of the credit quality of the underlying loans and Moody's upgrades of the credit estimates of some of these loans. As of April 2014, Moody's had upgraded its credit estimates on 47% of pool, following the upgrade to Mexico's sovereign rating in February to A3 from Baa1. The BNTECB 07 certificates have a minimum established credit enhancement of 6% of the total loan balance, in the form of subordination and over-collateralization. As of May 2014, the total credit enhancement for BNTECB 07 was 9.2%. The BNTECB 07-2 certificates are subordinate to the BNTECB 07 and benefit from a minimum of 2% of the total loan balance in the form of over- collateralization. Moody's ratings also reflect the role of Banorte as collateral manager, as well as a fully funded cash reserve equivalent to one coupon payment. These factors mitigate the liquidity risks associated with this transaction's dual waterfall structure. As of May 2014, the interest coverage ratio (ICR) over the previous 12 months averaged 1.3x for the BNTECB 07 certificates, 2.3x if the cash reserve fund is taken into account. The loan portfolio is relatively concentrated and contains 29 loans to 13 obligors. The average obligor concentration is 7.7%, and the maximum is 15.8%. According to the collateral manager report, as of May 2014 all of the loans are current. Trust assets are currently in the form of loans (88.5%) and cash (11.5%). Last December, one of the pool's loan prepaid, with the proceeds deposited in the general cash account. The collateral manager has indicated its intention to use the cash to purchase another loan to substitute for the prepaid loan. Moody's will monitor the use of the resources and assess the credit quality of the substitute loan. Moody's analyzed the underlying collateral pool of loans in a base case scenario to derive a default probability, taking into account the credit quality of the securitized assets and the expected average life of each loan. The expected loss for both certificates took into account the resulted weighted average default probability (an implied weighted average rating factor, or WARF, of 803.9), a target over-collateralization level, a 50% recovery rate and the liability structure of this transaction. The BNTECB 07 and BNTECB 07-2 certificates pay interest monthly and will amortize at the legal final maturity date, 15 May 2037. However, if total credit enhancement is not met at any coupon date, the certificates will receive principal payments until the minimum credit enhancement is met. As of May 2014, both certificates had been paid down by around 21.1%. The principal methodology used in this rating was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in February 2014. Moody's considered the servicer's practices and considers them adequate. The period of time covered in the financial information used to determine the BNTECB 07 and BNTECB 07-2 ratings is between February 2008 and May 2014; the financial information came from parties related to the rating. Factors that would lead to an upgrade or downgrade of the rating: Factors that would lead to an upgrade are a significant improvement in the credit quality of the pool. Factors that would lead to a downgrade are deterioration of the collateral performance and a decline of the total collections. Stress Scenarios: With respect to the sensitivity of the ratings, if Moody's assumed that (a) the BNTECB 07 and BNTECB 07-2 certificates benefitted from the minimum 6% and 2% credit enhancement, and that (b) one of the top obligors (assessed via credit estimates) in the pool had jumped to default to the Caa2 level, the agency would not likely change the rating on the senior certificates, but would likely downgrade the rating on the subordinate certificates by as much as a four notch downgrade, to Caa1 (sf) from Ba3 (sf). ================= X X X X X X X X X ================= BOND PRICING: For the Week From May 12 to May 16, 2014 ------------------------------------------------------ Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- Aguas Andinas SA 4.15 12/1/2026 CLP 70.91 Almendral Telecomunicaciones SA 3.5 12/15/2014 CLP 22.55 Argentina Bocon 2 1/3/2016 ARS 68.5 Argentina Boden Bonds 2 9/30/2014 ARS 31.5 Argentina Government Int'l Bond 7.82 12/31/2033 EUR 75.5 Argentina Government Int'l Bond 7.82 12/31/2033 EUR 74 Argentina Government Int'l Bond 8.28 12/31/2033 USD 50 Argentina Government Int'l Bond 8.28 12/31/2033 USD 55 Argentina Government Int'l Bond 4.33 12/31/2033 JPY 36.5 Argentina Government Int'l Bond 0.45 12/31/2038 JPY 15 Argentina Government Int'l Bond 4.33 12/31/2033 JPY 36.5 Automotores Gildemeister SA 8.25 5/24/2021 USD 69 Automotores Gildemeister SA 6.75 1/15/2023 USD 65 Automotores Gildemeister SA 8.25 5/24/2021 USD 68.4 Automotores Gildemeister SA 6.75 1/15/2023 USD 64.02 Banco BPI SA/ Cayman Islands 4.15 11/14/2035 EUR 62.5 Banco Supervielle SA 7 8/20/2020 USD 74.12 Banif Finance Ltd 1.68 EUR 35 Bank Austria Creditanstalt Finance Cayman Ltd 2.16 EUR 74.8 BCP Finance Co Ltd 5.54 EUR 62.82 BCP Finance Co Ltd 4.24 EUR 60.37 Republic of Venezuela 7 3/31/2038 USD 65.59 Caixa Geral De Depositos Finance 1.12 EUR 42.5 CAM Global Finance 6.08 12/22/2030 EUR 64.87 China Forestry Holdings Co Ltd 10.3 11/17/2015 USD 37 China Forestry Holdings Co Ltd 10.3 11/17/2015 USD 37 China Precious Metal Resources Holdings Co Ltd 7.25 2/4/2018 HKD 65.97 Cia Cervecerias Unidas SA 4 12/1/2024 CLP 57.05 Transener SA 9.75 8/15/2021 USD 68 Transener SA 8.88 12/15/2016 USD 67.6 Transener SA 9.75 8/15/2021 USD 67.5 Cia Energetica de Sao Paulo 9.75 1/15/2015 BRL Cia Sud Americana de Vapores SA 6.4 10/1/2022 CLP 61.42 City of Buenos Aires Argentina 1.95 1/28/2020 USD 70.125 City of Buenos Aires Argentina 1.95 12/20/2019 USD 70.875 Daphne International Holdings Ltd 3.13 6/11/2014 CNY 5.25 Decimo Primer Fideicomiso 4.54 10/25/2041 USD 57.25 Decimo Primer Fideicomiso 6 10/25/2041 USD 69 Empresa Distribuidora Y Comercializadora Norte 9.75 10/25/2022 USD 66.99 Empresa Distribuidora Y Comercializadora Norte 9.75 10/25/2022 USD 66.125 ERB Hellas Cayman Islands Ltd 9 3/8/2019 EUR 68.375 Glorious Property Holdings Ltd 13.3 3/4/2018 USD 71.24 Hidili Industry International Development Ltd 8.63 11/4/2015 USD 53.25 Hidili Industry International Development Ltd 8.63 11/4/2015 USD 52.75 Inversiones Alsacia SA 8 8/18/2018 USD 65.25 Inversiones Alsacia SA 8 8/18/2018 USD Inversora de Electrica de Buenos Aires SA 6.5 9/26/2017 USD 43.25 MetroGas SA 8.88 12/31/2018 USD 71.875 Mongolian Mining Corp 8.88 3/29/2017 USD 66 Mongolian Mining Corp 8.88 3/29/2017 USD 64.75 Petroleos de Venezuela SA 6 11/15/2026 USD 60.75 Petroleos de Venezuela SA 5.38 4/12/2027 USD 58 Petroleos de Venezuela SA 5.5 4/12/2037 USD 55 Petroleos de Venezuela SA 6 11/15/2026 USD 59.41 Provincia del Chaco 4 11/4/2023 USD 75 Provincia del Chaco 4 12/4/2026 USD 51.125 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 68.5 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 69.5 Ruta del Bosque Sociedad Concesionaria SA 6.3 3/15/2021 CLP 73.66 Sifco SA 11.5 6/06/2016 USD 29 SMU SA 7.7 2/8/2020 USD 71.5 SMU SA 7.75 2/8/2020 USD 69.21 Talca Chillan Sociedad Concesionaria SA 2.75 12/15/2019 CLP 56.46 Uruguay Notas del Tesoro 2.5 9/27/2022 UYU 72.08 Venezuela Government International Bond 6 12/9/2020 USD 72.75 Venezuela Government International Bond 7.65 4/21/2025 USD 73 Venezuela Government International Bond 7 3/31/2038 USD 65.75 Virgolino de Oliveira Finance Ltd 10.5 1/28/2018 USD 67.52 Virgolino de Oliveira Finance Ltd 11.8 2/9/2022 USD 67.2 Virgolino de Oliveira Finance Ltd 10.5 1/28/2018 USD 67.62 Virgolino de Oliveira Finance Ltd 11.8 2/9/2022 USD 66.75 *********** 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 * * *