/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/140618.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, June 18, 2014, Vol. 15, No. 119 Headlines A R G E N T I N A ARGENTINA: High Court Sides With Holdout Creditors in Debt Case ARGENTINA: Rejected by U.S. High Court on Defaulted Bonds METROGAS S.A.: Moody's Places Caa3.ar CFR on Review for Upgrade B O L I V I A BANCO ECONOMICO: Moody's Rates Subordinated Debt Issuance 'B2' C A Y M A N I S L A N D S ARAMID ENTERTAINMENT: JVLs Seek U.S. Bankruptcy ARAMID ENTERTAINMENT: Proposes Reed Smith as Counsel ARAMID ENTERTAINMENT: Taps Kinetic Partners as Crisis Managers BANYAN CAPITAL: Shareholders' Final Meeting Set for July 17 BARBARESCO LENDER: Shareholders' Final Meeting Set for June 24 BARBARESCO LENDER-T: Shareholders' Final Meeting Set for June 24 BYRON FINANCIAL: Shareholders' Final Meeting Set for June 30 JAIC-CDIB: Shareholders' Final Meeting Set for June 24 KAUAI HOLDING: Shareholders' Final Meeting Set for June 24 KE SPRING: Shareholder to Hear Wind-Up Report on July 4 RINGO 80: Shareholders' Final Meeting Set for June 20 SUTHERLAND HOLDINGS: Shareholders' Final Meeting Set for June 24 WHITE SNOW: Sole Member to Hear Wind-Up Report on July 15 C H I L E CORPBANCA: Moody's Continues Review on Ratings for Upgrade D O M I N I C A N R E P U B L I C BANCO BHD: Fitch Affirms LT Issuer Default Rating at 'B' XSTRATA PLC: Falcondo Needs Three Thrusts to Resume Operations M E X I C O PROYECTOS ADAMANTINE: Service Transfer No Rating Impact on 3 RMBS T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Finances Improve Despite Fuel Subsidy Removal FIRST CITIZENS: Group Execs Resign Before Shareholders' Meeting V E N E Z U E L A CORPORACION ELECTRICA: S&P Affirms 'B-' CCR; Outlook Negative - - - - - ================= A R G E N T I N A ================= ARGENTINA: High Court Sides With Holdout Creditors in Debt Case --------------------------------------------------------------- Ken Parks, Nicole Hong and Brent Kendall, writing for The Wall Street Journal, reported that the U.S. Supreme Court handed Argentina a major setback in its long-running battle with a small group of determined creditors, heightening the risk the country will default for the second time in 13 years. According to the report, the justices on June 16 rejected Argentina's appeal of a lower-court ruling that said the country can't make bond payments until it compensates hedge funds that refused to accept restructured debt in the years following Argentina's 2001 default. Because of that earlier ruling, Argentina must decide by the end of the month whether to reach a deal with the holdouts or default on its next debt payment, the Journal said. The Journal said the Supreme Court's action is a pivotal -- and potentially final -- twist in a bitter battle pitting Argentina's government against a few deep-pocketed hedge funds that have been steadfast in their insistence on full payment. "We have long anticipated that the Supreme Court would not grant certiorari, but were less certain about the timing. This decision makes it more critical than ever that the parties come promptly to a negotiated settlement that will enable Argentina to avoid default, lower its borrowing costs and return to the capital markets," Bruce Wolfson, Esq. -- bruce.wolfson@bingham.com -- of counsel at Bingham McCutchen LLP, said in a statement. ARGENTINA: Rejected by U.S. High Court on Defaulted Bonds --------------------------------------------------------- Katia Porzecanski, Camila Russo and Greg Stohr at Bloomberg News report that Argentine Economy Minister Axel Kicillof, who negotiated $15 billion of payments to resolve debt disputes in the past four months, has two weeks to pull off his toughest deal yet. The country's bonds plunged after the U.S. Supreme Court decided against hearing Argentina's appeal of an order requiring it to pay holders of defaulted notes from 2001 in full when making payments on its restructured debt, according to Bloomberg News. The next payment comes due June 30, giving Minister Kicillof limited time to reach a settlement with holdouts and avoid a new default, notes the report. According to Bloomberg News, the government said paying back holdout creditors in full would amount to $15 billion, money that would deplete foreign reserves already hovering near an eight-year low. Locked out of international credit markets for more than a decade, Argentina may have few options other than meeting a request for negotiations from Elliott Management Corp., the New York-based hedge fund run by Paul Singer that refused to accept two prior debt restructurings that gave investors about 30 cents on the dollar, Bloomberg News notes. Bloomberg News relates that the dispute revolves around Argentina's 2001 default on a record $95 billion in debt. The country offered to substitute lower-value bonds in 2005 and made a similar proposal in 2010. Owners tendered about 92 percent of the outstanding debt. Paris Club Minister Kicillof brokered a $9.7 billion settlement last month to resolve a dispute with the Paris Club group of creditors dating from the 2001 default, Bloomberg News discloses. That came months after reaching a $5 billion accord to compensate Repsol SA for Argentina's seizure of oil producer YPF SA, notes the report. The announcements helped push bond yields to a two-year low before the Supreme Court ruling, the report adds. Bloomberg News relates that Argentina calls investors who have refused previous debt exchanges "vultures" because they bought many of the bonds post-default at a discount, angling to eventually collect a windfall. Argentina said it couldn't afford to pay both sets of bondholders because claims similar to Elliott's could mount to $15 billion from the $1.3 billion involved in the current ruling, reports Bloomberg News. 'Imminent Risk' "America's highest court has spoken," NML Capital, a unit of Elliott Management, said in a statement obtained by Bloomberg News. "It is time for Argentina to honor its commitments to its creditors, which would benefit both Argentina's economy and its international standing," the statement added. Lawyers for the defaulted bondholders filed papers in the Court of Appeals saying that the previous orders "are now in full force and effect" as a result of the Supreme Court's refusal to hear the case, Bloomberg News relates. The country had said in a May 27 filing that complying would create "a serious and imminent risk of default," Bloomberg News notes. NML had argued that an equal-treatment, or "pari passu," clause in the bond agreement bars Argentina from treating the restructured securities more favorably than the defaulted bonds, says the report. Next Step Bloomberg News relates that a federal trial judge agreed with that argument, as did the New York-based 2nd U.S. Circuit Court of Appeals in two rulings. Argentina has given mixed signals about its likely next step. In an appeals court hearing last year, the government's attorneys said the Latin American country wouldn't "voluntarily" obey the court orders, Bloomberg News notes. In its most recent Supreme Court brief, the country promised to comply with the orders, while saying the likely result would be a new default, Bloomberg News adds. According to a memo leaked to an Argentine website last month, the country's attorneys recommended a default and immediate restructuring in the event the Supreme Court rejected the appeal, the report relays. Last week, notes the report, Minister Kicillof raised the prospect of negotiating with the holdouts, a step the country has previously rejected. Public Opinion "Minister Kicillof is a very bright individual, but he doesn't have much experience on these matters and that is an issue here," Diego Ferro, co-chief investment officer at Greylock Capital Management LLC, told Bloomberg News in a telephone interview from New York. "The holdouts are wholly rational market participants and at this point in time they want to move on," Mr. Ferro said, Bloomberg News notes. In a September poll of 1,000 Argentines conducted by Buenos Aires- based research company Poliarquia Consultores for Graham Fisher & Co., 74 percent of those surveyed believe the government should negotiate with holdouts from the restructuring, Bloomberg News relates. Between paying the debt in full and not paying it at all, 68 percent of those surveyed said the government should pay holdouts in full, notes the report. Over the past year, says Bloomberg News, Argentina has also settled claims with five companies in the World Bank arbitration arm and improved economic data reporting at the request of the International Monetary fund. "The administration has a much stronger willingness to pay debt," Kathryn Rooney Vera, a macroeconomic strategist at Bulltick Capital Markets, told Bloomberg News in a telephone interview from Miami. "The sense that we get is they're definitely open to negotiation and the winds have changed," Mr. Vera added, Bloomberg News adds. METROGAS S.A.: Moody's Places Caa3.ar CFR on Review for Upgrade --------------------------------------------------------------- Moody's Latin America placed under review for upgrade the Caa3 and Caa3.ar ratings on Metrogas' USD denominated bonds and corporate family rating. Ratings Rationale The rating action followed the recently announced tariff increase for gas distribution companies that will result in substantially improved cash generation for Metrogas in relation to its debt burden. On April 7, Argentina's gas regulator (Enargas) announced that it had raised the tariff that Argentine gas distribution utilities can charge their customers, effective April 1. The higher tariff comprises a higher gas price and a higher distribution margin that the utilities can charge above a higher gas price based upon consumption to their residential customers. Enargas phased the tariff increases in three steps over a five-month period from April to August 2014. Tariffs will not rise for users that reduce their gas consumption by more than 20% over their consumption level of the prior year. Before this increase and in spite of the material impact of inflationary cost pressures, the distribution margin for most of the gas distribution companies has been the same for more than 12 years. The review will focus on the impact of the tariff increase on Metrogas' liquidity, in particular in light of the completion/finalization of the debt restructuring that will materialize after June 30th, once Metrogas makes the interest payment due on that date and no triggering event occurs. Metrogas outstanding debt is the result of the 2013's restructuring by which Metrogas offered bondholders New Notes to replace its defaulted debt. On January 2013 Metrogas issued Class A Notes amounting to approximately USD 180 million and Class B notes for approximately USD 135 million. Class A represented the new, restructured debt amount and Class B accounted for the discount on principal offered to bondholders, amount that will extinguish if no event of default occurs until June 30 2014. Metrogas is an Argentinean gas distribution utility, with operations in the capital city and the southern area of Buenos Aires Province, which is one of the biggest concession areas in terms of number of clients and annual revenues for the last twelve months ending March 2014 of ARS 1.2 billion. Metrogas is controlled by GASA (70%), a holding company that is fully owned by YPF (Caa1, Stable)'s subsidiary YPF Inversora Energetica S.A. From the remaining 30%, 20% floats in the Buenos Aires stock exchange and 10% belongs to Metrogras' employees ("PPP"). ============= B O L I V I A ============= BANCO ECONOMICO: Moody's Rates Subordinated Debt Issuance 'B2' -------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo has assigned Banco Economico (Economico)'s Bs. 62 million subordinated debt second issuance, under the multicurrency program of USD 20 million, a global local currency debt rating of B2 and a national scale local currency debt rating of Aa3.bo. The outlook on all ratings is stable. The following ratings were assigned to Banco Economico S.A.: Second Bs. 62 million subordinated debt issuance Global Local Currency Subordinated Debt Rating: B2 Bolivia National Scale Local Currency Subordinated Debt Rating: Aa3.bo Ratings Rationale Moody's explained that the B2 local currency subordinated debt rating derives from Economico's b1 baseline credit assessment that maps from its bank financial strength rating of E+ and takes into account the seniority of the notes. Moody's ratings reflect the bank's established position as a lender to small and medium size companies (SME) and its growing diversification into microfinance over past two years, which benefits the granularity of its loan book and access to stable funding. The ratings also incorporate the generally riskier nature of SME and microfinance customers, which are highly sensitive to economic cycles, as well as Economico's geographical concentration in Santa Cruz de la Sierra, despite efforts to expand to other provinces of the country. The complex regulatory environment for Bolivian banks and its effect on profitability were also taken into account. Since entering the segment in 2011, Economico has seen its microfinance loans grow to represent 22.7% of the total portfolio, with a sizable 43.7% lent to SMEs, a mix that supports its long- term strategy and business prospects. This change has led to higher interest margins, but operating costs to serve the labor- intensive microfinance segment have also grown. While the bank's expansion has required Economico to grow its workforce and branches, additional lending growth will allow for better use of the current capacity, with further efficiency improvements. However, Moody's notes that regulatory changes yet to be defined under the new financial law passed late in 2013, will likely impose lending rates caps and minimum deposit rates, which will pinch the bank's margins and profitability in the coming years. Moody's said that Economico's asset quality remains good and in line with that of its peers. Following a cumulative annual loan growth rate of 17.3% over the past three years, which is lower than the system, non-performing loans as a percentage of gross loans increased slightly in 2013. Delinquency remains manageable in light of the secured nature of the loan book (with real guarantees on 75% of loans), the adequate reserves at 194% of total non-performing loans, and a Tier 1 capitalization ratio at 8.3%, all of which limit potential losses in adverse circumstances. Nevertheless, Moody's notes that the bank's business expansion may require higher capital levels, above those that would result from internal earnings generation. Moody's noted the bank's favorable deposit mix, with core deposits comprising nearly 90% of the bank's total liabilities as of March 2014, mainly in the form of time deposits, as well as its access to multilateral funding and to the domestic capital markets, where Economico has issued subordinated debt. Banco Economico S.A. is located in Santa Cruz de la Sierra, Bolivia, and has US$873 million in assets, US$732 million in deposits and US$56.1 million in equity as of March 2014. ========================== C A Y M A N I S L A N D S ========================== ARAMID ENTERTAINMENT: JVLs Seek U.S. Bankruptcy ----------------------------------------------- Aramid Entertainment Fund Limited, which made loans to, and investments in, participants in the global media and entertainment industry, was sent to Chapter 11 bankruptcy by its liquidators appointed in the Cayman Islands. Jess Shakespeare and Geoffrey Varga were appointed joint voluntary liquidators of Aramid funds on May 7, 2014, following the decisions of the board of directors to wind down those funds. According to Mr. Varga, over the last several years, AEF has been embroiled in substantial and time-consuming litigation relating to some of its investments. The prosecution and defense of these actions has consumed a substantial portion of AEF's liquidity and exposes it to potential liability in several ways. Mr. Varga believes that the protections afforded by the U.S. Bankruptcy Code will afford the JVLs an opportunity to evaluate the merits of each case and formulate a plan with regard to each of these litigations. Non-debtor Aramid Capital Partners LLP, a UK partnership, was the technical service provider of the Debtor. Molner, the founder of Sreen Capital International ("SCI"), was the lead individual involved in ACP's relationship with AEF. ACP's engagement by AEF was mutually terminated prior to the Petition Date. Prior to the Petition Date, Asset Resolution Partners, Ltd. ("ARP"), a Cayman Islands exempted company, was retained by AEF to help monetize assets and pursue or defend certain legal proceedings. ARP reports to the JVLs in all material respects. Bergstein Dispute One of the primary reasons for the Debtors' current liquidity concerns is the inability to collect on loans made by AEF to certain entities controlled by David Bergstein and Ronald Tutor, and the numerous ancillary litigations arising from or relating to these loans. This litigation -- as well as other litigation involving AEF -- gives rise not only to potential direct liability to AEF, but to contractual indemnity rights of David Molner and others, which rights may be enforceable in certain circumstances such that they could require AEF to indemnify David Molner and others. In addition, investors in AEF have repeatedly raised concerns with ACP, the directors of AEF and the Cayman Islands Monetary Authority with respect to the prior actions of ACP, including in connection with its managements of certain of the affairs of AEF including, without limitation, the multitude of litigation that ACP has either recommended be brought on behalf of the Debtors or which has resulted in AEF being named as a defendant which has resulted in substantial litigation expense. Further, AEF has been asked to provide extensive discovery pursuant to Bankruptcy Rule 2004 in connection with the bankruptcy case of Susan H. Tregub, P.C., former counsel to Bergstein, and also may face litigation in connection with that bankruptcy case. Prior to December 2009, AEF had an extensive lending relationship with certain Bergstein companies. Beginning in February 2007, AEF had engaged in approximately 36 transactions in which entities owned or controlled by Bergstein had borrowed a total of $62.7 million from AEF. By January 2010, AEF had recovered approximately $20 million, leaving more than $42 million outstanding, and that debt was not being serviced by the Bergstein Companies. On March 16, 2010, AEF and Cayman Film Holdings Ltd., a wholly- owned subsidiary of AEF, filed a suit in the United States District Court in Los Angeles against Bergstein and Tutor, individually, seeking to collect approximately $12 million owed on guaranties of loans made to finance motion pictures known as "Love Ranch" and "Bad Meat". Aramid Entertainment v Bergstein. Case No. 2:10-cv-01881-JFW-PLA. One day after commencing litigation against Bergstein and Tutor to enforce guaranties, on March 17, 2010, involuntary bankruptcy petitions (initially filed by a group of 13 creditors that subsequently increased to 27 creditors) were filed in the U.S. Bankruptcy Court in Los Angeles with respect to certain of the Bergstein Companies. These bankruptcy cases have been extraordinarily contentious and litigious. On Dec. 30, 2011, AEF, acting jointly with several other creditors, filed liquidation plans for each of the debtors in those cases together with the requisite disclosure statements for each of the Plans. The Bankruptcy Court has never approved the disclosure statement. Instead, at the recommendation of ACP, the technical service provider, AEF has litigated, or as applicable, funded additional proceedings, both in the Bankruptcy Court and other courts, in an effort to collect the monies owed by the Bergstein Companies. About Aramid Entertainment Aramid Entertainment Fund Limited has been engaged in the business of providing short and medium term liquidity to producers and distributors of film, television and other media and entertainment content by way of loans and equity investments. On May 7, 2014, Geoffrey Varga and Jess Shakespeare of Kinetic Partners (Cayman) Limited were appointed under Cayman law as the joint voluntary liquidators of AEF and two affiliates. On June 13, 2014, the JVLs authorized AEF and two affiliates to file for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-11802) in Manhattan on June 13, 2014. The Debtors have tapped Reed Smith, LLP, in New York, as counsel; and Kinetic Partners (Cayman) Limited as crisis managers. AEF estimated at least $100 million to $500 million in assets and less than $50 million in debt. The Debtors have filed a motion asking the Bankruptcy Court to extend the time for the Debtors to file their schedules of assets and liabilities and statements of financial affairs. ARAMID ENTERTAINMENT: Proposes Reed Smith as Counsel ---------------------------------------------------- Aramid Entertainment Fund Limited and its affiliated debtors ask the bankruptcy court for approval to hire Reed Smith LLP as bankruptcy counsel, nunc pro tunc to the Petition Date. Reed Smith is an international law firm with approximately 1,900 attorneys in 25 offices in major cities throughout the United States, Europe, the Middle East and Asia, including an office in New York City. By virtue of its prepetition retention, Reed Smith is well- acquainted with the Debtors' business history, capital structure and operations. From September 2010 through May 2014, Reed Smith was engaged, for the benefit of AEF to provide certain limited specified services to a committee of independent, non-management- affiliated directors of AEF. From the period commencing on May 7, 2014 through the Petition Date, Reed Smith provided advice and services in connection with the joint voluntary liquidators' management and efforts with respect to AEF and an affiliate. The Debtors seek to employ Reed Smith on an hourly basis to act as general bankruptcy and restructuring counsel in the Chapter 11 cases and, subject to the use of special counsel where necessary or appropriate, in any and all matters that arise with respect thereto or to the Debtors. Reed Smith will bill at its agreed-upon hourly rates, plus out-of- pocket expenses, advances, and expenses, all subject to the approval of the Court. The hourly rates that Reed Smith will charge for the time worked by the paralegals and attorneys that will be primarily responsible for Reed Smith's representation of the Debtors in these cases, effective on and after Jan. 1, 2014, will be as follows: Hourly Rate ----------- Partners: James L. Sanders $890 Paul M. Singer $805 James C. McCarroll $770 Michael J. Venditto $765 Jordan W. Siev $750 Richard A. Robinson $715 Francisca Mok $680 James Hnilo $650 Casey D. Laffey $605 Associates: Sarah K. Kam $605 Chrystal A. Puleo $595 Paralegals: Christopher M. LauKamg $225 The Debtors' counsel can be reached at: REED SMITH LLP James C. McCarroll, Esq. Michael J. Venditto, Esq. Jordan W. Siev, Esq. Richard A. Robinson, Esq. 599 Lexington Avenue New York, NY 10022-7650 Telephone: (212) 521-5400 Facsimile: (212) 521-5450 E-mail: jmccarroll@reedsmith.com mvenditto@reedsmith.com jsiev@reedsmith.com rrobinson@reedsmith.com About Aramid Entertainment Aramid Entertainment Fund Limited has been engaged in the business of providing short and medium term liquidity to producers and distributors of film, television and other media and entertainment content by way of loans and equity investments. On May 7, 2014, Geoffrey Varga and Jess Shakespeare of Kinetic Partners (Cayman) Limited were appointed under Cayman law as the joint voluntary liquidators of AEF and two affiliates. On June 13, 2014, the JVLs authorized AEF and two affiliates to file for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-11802) in Manhattan on June 13, 2014. AEF estimated at least $100 million to $500 million in assets and less than $50 million in debt. The Debtors have filed a motion asking the Bankruptcy Court to extend the time for the Debtors to file their schedules of assets and liabilities and statements of financial affairs. ARAMID ENTERTAINMENT: Taps Kinetic Partners as Crisis Managers -------------------------------------------------------------- Aramid Entertainment Fund Limited and its affiliated debtors ask the bankruptcy court for approval to hire Kinetic Partners (Cayman) Limited as crisis managers, nunc pro tunc to the Petition Date. Kinetic Partners LLP, of which Kinetic is the firm's wholly owned Cayman operating entity is a leading provider of tailored consulting, advisory and assurance services to clients within the financial services industry. Kinetic Partners currently has over 160 professionals across its eight global offices. The joint voluntary liquidators of the Debtors are partners at Kinetic Partners. Geoffrey Varga is the global head of Kinetic Partners' Corporate Recovery and Restructuring group. Jess Shakespeare is a partner in Kinetic Partners' Corporate Recovery group. As provided for in an Engagement Letter, Messrs. Varga and s Shakespeare will continue to provide services as joint voluntary liquidators of AEF and ALTL, and with the help of certain professionals at Kinetic Partners, will perform a broad range of services, including but not limited to: -- locating and taking possession of all remaining assets of the Debtors, and performing accounting of the assets and liabilities of the Debtors if required; -- diligently and efficiently pursuing recovery and realization of the assets of the Debtors; -- carrying out operations of the Debtors insofar as it may be necessary for the beneficial liquidation thereof, and subject to available cash in the Debtors, paying the outstanding debts, obligations and liabilities of the Debtors; -- distributing any proceeds received and remaining assets of the Debtors to each of the Debtors' respective creditors and investors (in the priorities as prescribed under the applicable laws); -- providing advice when required and to manage the various litigation relating to the Debtors' investments. The hourly rates that will be charged for the time for Geoffrey Varga and Jess Shakespeare in connection with this engagement are $750 and $650, respectively. The Debtor will reimburse Kinetic, upon receipt of periodic billings, for all reasonable and necessary out-of-pocket expenses incurred in connection with the Chapter 11 cases including travel, accommodation and incidentals. Because Kinetic is not being employed as a professional under Section 327 of the Bankruptcy Code, it will not submit quarterly fee applications pursuant to 11 U.S.C. Sections 330 and 331. Kinetic will, however, file with the Court, and provide notice to the United States Trustee and all official committees, reports of compensation earned and expenses incurred on at least a quarterly basis. The Debtors do not believe that Kinetic is a "professional" whose retention is subject to approval under Section 327. Nonetheless, to the best of Debtors' knowledge, and except as otherwise disclosed, Kinetic (a) is a "disinterested person" within the meaning of Section 101(14), (b) does not hold or represent an interest adverse to the Debtors' estates, and (c) has no connection to the Debtors, their creditors, or their related parties. The firm can be reached at: Geoffrey Varga Jess Shakespeare KINETIC PARTNERS (CAYMAN) LIMITED 1st Floor, The Harbour Centre 42 North Church Street PO Box 10387, Grand Cayman Cayman Islands Tel: +1 646 867 7833 New York +1 345 623 9900 Cayman Fax: +1 345 943 9900 E-mail: geoff.varga@kinetic-partners.com jess.shakespeare@kinetic-partners.com About Aramid Entertainment Aramid Entertainment Fund Limited has been engaged in the business of providing short and medium term liquidity to producers and distributors of film, television and other media and entertainment content by way of loans and equity investments. On May 7, 2014, Geoffrey Varga and Jess Shakespeare of Kinetic Partners (Cayman) Limited were appointed under Cayman law as the joint voluntary liquidators of AEF and two affiliates. On June 13, 2014, the JVLs authorized AEF and two affiliates to file for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-11802) in Manhattan on June 13, 2014. AEF estimated at least $100 million to $500 million in assets and less than $50 million in debt. The Debtors have filed a motion asking the Bankruptcy Court to extend the time for the Debtors to file their schedules of assets and liabilities and statements of financial affairs. BANYAN CAPITAL: Shareholders' Final Meeting Set for July 17 ----------------------------------------------------------- The shareholders of Banyan Capital Master Fund Limited will hold their final meeting on July 17, 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 liquidators are: 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 BARBARESCO LENDER: Shareholders' Final Meeting Set for June 24 -------------------------------------------------------------- The shareholders of Barbaresco Lender Finance-TE will hold their final meeting on June 24, 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 liquidators are: Stephen Nelson Telephone: 949-4544 Facsimile: 949-7073 Charles Adams Ritchie & Duckworth Zephyr House, 2nd Floor, 122 Mary Street P.O. Box 709 Grand Cayman KY1-1107 Cayman Islands BARBARESCO LENDER-T: Shareholders' Final Meeting Set for June 24 ---------------------------------------------------------------- The shareholders of Barbaresco Lender-T will hold their final meeting on June 24, 2014, at 10:0 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stephen Nelson Telephone: 949-4544 Facsimile: 949-7073 Charles Adams Ritchie & Duckworth Zephyr House, 2nd Floor, 122 Mary Street P.O. Box 709 Grand Cayman KY1-1107 Cayman Islands BYRON FINANCIAL: Shareholders' Final Meeting Set for June 30 ------------------------------------------------------------ The shareholders of Byron Financial Co. Ltd will hold their final meeting on June 30, 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: Avalon Management Limited Herrengasse 21 LI-9490 Vaduz JAIC-CDIB: Shareholders' Final Meeting Set for June 24 ------------------------------------------------------ The shareholders of JAIC-CDIB & Partners Investment, Inc. will hold their final meeting on June 24, 2014, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Yueh-Lin Lee CDIB & Partners Investment Holding Corporation 125 Nanking East Road, 6th Floor Section 5, Taipei 105 Taiwan KAUAI HOLDING: Shareholders' Final Meeting Set for June 24 ---------------------------------------------------------- The shareholders of Kauai Holding Limited will hold their final meeting on June 24, 2014, at 10:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Kitagawa Hisayoshi Kitagawa c/o Mariko Kogo Telephone: +8 (135) 775 9200 Facsimile: +8 (135) 775 9201 Zephyr House, 122 Mary Street 709 Grand Cayman KY1-1107 Cayman Island KE SPRING: Shareholder to Hear Wind-Up Report on July 4 ------------------------------------------------------- The shareholder of Ke Spring will hear on July 4, 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 RINGO 80: Shareholders' Final Meeting Set for June 20 ----------------------------------------------------- The shareholders of Ringo 80 Ltd will hold their final meeting on June 20, 2014, at 12:00 noon, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands SUTHERLAND HOLDINGS: Shareholders' Final Meeting Set for June 24 ---------------------------------------------------------------- The shareholders of Sutherland Holdings Limited will hold their final meeting on June 24, 2014, at 3:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Juliette Ange De Guelle Katrina Helen Tannahill Barclays Wealth Directors (Jersey) Limited 39-41 Broad Street St Helier, Jersey, JE4 5PS WHITE SNOW: Sole Member to Hear Wind-Up Report on July 15 --------------------------------------------------------- The sole member of White Snow Holdings Limited will hear on July 15, 2014, at 11:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town, Tortola British Virgin Islands ========= C H I L E ========= CORPBANCA: Moody's Continues Review on Ratings for Upgrade ---------------------------------------------------------- Moody's Investors Service has said that the ratings of CorpBanca (deposits and senior debt Baa3, review up, BFSR D+ review up/BCA ba1) and its holding company, CorpGroup Banking S.A., (issuer and senior debt B1, review up) remain on Watchlist. The review status was initiated on 31 January 2014. Moody's said it expects to complete the review upon the closing of the transaction announced on 29 January 2014, whereby CorpBanca's controlling shareholder, CorpGroup, agreed to merge the bank with Itau Unibanco S.A.'s (deposits Baa1/Baa2 stable, BFSR C- stable/BCA baa1) Chilean subsidiary, Banco Itau Chile (deposits A3 stable, BFSR C-stable/BCA baa2) in a stock-for-stock transaction to create Banco Itau CorpBanca. Moody's understands that the merger transaction remains on course and that the counterparties intend to complete the deal by the fourth quarter of 2014, once the necessary approvals are obtained, and in accordance with the previously announced time frames. Ratings Rationale The review status reflects the fact that the merger and the transfer of control must be approved by Chile's banking regulators, the Superintendency of Banks and the Central Bank of Chile, as well as by the Colombian, Panamanian, and US banking regulators. The Central Bank of Brazil must approve Ita£ Unibanco's increased investment in Chile via a capital infusion of US$ 652 million in Banco Ita£ Chile prior to the merger. The ratings of CorpGroup Banking remain on review for upgrade as they are anchored on CorpBanca's standalone rating. Moody's continues to expect that the proposed merger of CorpBanca and Banco Itau Chile and its association with Itau Unibanco will strengthen the bank's market presence across multiple customer segments in Chile's highly competitive banking market as well as to facilitate scale efficiencies, thereby increasing its earnings potential. Itau's experience in integrating acquisitions, its successful presence and brand identity in Chile, as well as its partnership and co-management with existing shareholders will allow the bank to mine local management's expertise and relationships. Based in Santiago, CorpBanca was the fifth largest bank in Chile with US$ 34.9 billion (CLP 19.2 trillion) of consolidated assets and $3.2 billion in shareholders' equity as of March 31, 2014. CorpGroup Banking reported total consolidated assets of $33.3 billion and total net equity of $3.0 billion as of 31 December 2013. Principal Methodology The principal methodology used in this rating/analysis was Global Banks published in May 2013. =================================== D O M I N I C A N R E P U B L I C =================================== BANCO BHD: Fitch Affirms LT Issuer Default Rating at 'B' ------------------------------------------------------- On May 14, 2014, Fitch Ratings completed a peer review for three private sector banks and their related entities as well as one state-owned bank in the Dominican Republic. At that time, Fitch affirmed the banks' ratings as detailed at the end of this release. The four banks included in this peer review are Banco Popular Dominicano (BPD); Banco BHD S.A.(BHD); Banco de Reservas de la Republica Dominicana, Banco de Servicios Multiples (BANRESERVAS); and Banco Multiple Leon S.A.(BML). The banks are among the largest in their market and each had assets between USD7.2 billion and USD1.2 billion, with operations primarily in the Dominican Republic. With the exception of BML, the banks' Issuer Default Ratings (IDRs) are driven by their Viability Ratings (VRs), which are based on the banks' stand-alone intrinsic financial strengths. BML's IDRs factor in potential extraordinary institutional support from its parent, Centro Financiero BHD Leon. 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. With the exception of BANRESERVAS, bank capitalization compared favorably with international peers. 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. This contractual maturity gap is somewhat mitigated by high deposit reserve requirements, deposit stability, and the availability of credit lines from other financial institutions. Fitch published the main findings of this peer review completed in May in a report 'Peer Review: Dominican Banks', which is available at www.fitchratings.com. Fitch concludes that the large Dominican banks are well positioned to take advantage of the local economy's accelerating growth. For further details on the particular key rating factors and rating sensitivities of each of these entities, as well as for regulatory information, please view individual rating action commentaries, published today and available in Fitch's websites at www.fitchratings.com and www.fitchca.com. Following completion of a peer review on May 14, 2014 Fitch affirmed the following international and national ratings: BPD --Long-term National rating at 'AA-(dom)'; Outlook Stable; --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'; Outlook Stable; --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)'; Outlook Stable; --Short-term National rating at 'F1+(dom)'. BML --Foreign and local currency long-term IDR at 'B'; Outlook Stable; --Foreign and local currency short term IDR at 'B'; --Viability Rating at 'b-'; --Support at '4'; --Long-term National rating at 'AA-(dom)'; Outlook Stable; --Short-term National rating at 'F1+(dom)'. --Long-term National subordinated debt at 'A+(dom)' BANRESERVAS --Foreign and local currency IDRs at 'B'; Outlook Stable; --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)'; Outlook Stable; --National short-term rating at 'F1+(dom)' In addition, Fitch also affirmed the banks' related entities' ratings following the peer review: Popular Bank Ltd. Inc y Subsidiaria (Popular Bank) --Long-term national rating at 'AA-(dom)'; Outlook Stable; --Short-term national rating at 'F1+(dom)'; --Long-term national rating at 'BB+(pan)'; Outlook Stable; --Short-term national rating at 'B(pan)'. BHD International Bank (Panama): --Long-term National rating at 'AA-(dom)'; Outlook Stable; --Short-term National rating at 'F1+(dom)'. BHD Valores Puesto de Bolsa SA: --Long-term National rating at 'AA-(dom)'; Outlook Stable; --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)'; Outlook Stable; --Short-term National rating at 'F1+(dom)'; --Long-term National senior unsecured debt rating at 'AA-(dom)'. XSTRATA PLC: Falcondo Needs Three Thrusts to Resume Operations -------------------------------------------------------------- Dominican Today reports that the mining company Falconbridge Dominicana (Falcondo) announced that to restart its operations it needs to have energy at low cost, improvements in the international market of nickel and access to natural resources granted by the Concession Quisqueya Uno, which it signed with the Dominican Government in 1956. David Soares, president and general manager of Falcondo, said that as the result of high production costs and low prices for nickel, the company had to halt operations and enter into a phase of care and maintenance in October last year, according to Dominican Today. The report relates that they are now observing how nickel prices improve, since that sends a good signal to the processing of the ore in the Dominican Republic. Mr. Soares, the report notes, said Falcondo has achieved important advances in the study of alternatives for the production of 200MWh of low-cost power, ranging from the construction of a new power plant to the conversion of the existing plant. "We will continue with efforts to gain access to minerals on which we have the right through our mining concession. Similarly, we are looking for alternatives that are beneficial in the energy field, which will result in favorable opportunities for all, the company, the communities, the Government and the country," the report quoted Mr. Soares as saying. Mr. Soares noted that Falcondo is a company that has always been responsible for the environment, a management which is certified with ISO 14001 environmental management and ISO 9001 quality management system since 2009; certifications that the company will continue to promote with its operations, the report notes. Mr. Soares, the report relates, explained that Falcondo will guarantee responsible mining in future mining extractions, without damaging the environment and natural resources, where communities, civil society and the authorities may be an observer of the processes. "Falcondo is willing that the Dominican Government, civil society and the communities of La Vega and Bonao participate actively in the monitoring of the mining process and reforestation in Loma Miranda and complete the environmental impact studies, as recommended by the Ministry of the Environment," the report quotes Mr. Soares as saying. 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 =========== M E X I C O =========== PROYECTOS ADAMANTINE: Service Transfer No Rating Impact on 3 RMBS ----------------------------------------------------------------- Moody's de Mexico says that, as of this date, it is not downgrading or withdrawing its ratings on the mortgage-backed securities listed below solely as a result of the execution of Proyectos Adamantine, S.A. de C.V.'s proposal to transfer the primary servicing of the mortgage loans that backed the transactions from Patrimonio, S.A. de C.V. to Adamantine Servicios, S.A. de C.V. The controlling beneficiary must approve the proposal by Proyectos Adamantine, as master servicer, to appoint Adamantine Servicios as substitute primary servicer before execution of a new servicing agreement. The affected certificates and their ratings are as follows: MXMACFW 07-3U Class A, ratings of B2 (sf) (Global Scale, Local Currency) and Ba1.mx (sf) (Mexican National Scale). The certificates' underlying ratings (reflecting the certificates' intrinsic credit quality absent the financial guarantee that MBIA Insurance Corporation provides) are Ca (sf) and Ca.mx (sf). MXMACFW 07-4U Class B, ratings of C (sf) (Global Scale, Local Currency) and C.mx (sf) (Mexican National Scale) MXMACFW 07-5U Class A, ratings of B2 (sf) (Global Scale, Local Currency) and Ba1.mx (sf) (Mexican National Scale). The certificates' underlying ratings (reflecting the certificates' intrinsic credit quality absent the financial guarantee that MBIA Mexico provides) are C (sf) and C.mx (sf). MXMACFW 07-6U Class B, ratings of C (sf) (Global Scale, Local Currency), C.mx (sf) (Mexican National Scale) BRHCCB 07-2U Class A-2, ratings of to B2 (sf) (Global Scale, Local Currency) and Ba1.mx (sf) (Mexican National Scale). The certificates' underlying ratings (reflecting the certificates' intrinsic credit quality absent the financial guarantee that MBIA Mexico provides) are Ca (sf) and Ca.mx (sf). In response to Proyectos Adamantine's request, Moody's analyzed the credit impact of the proposed amendment. Moody's opinion, as of this date, reflects only the credit impact of the proposed amendment; its opinion is not determination as to whether any such amendments could have an adverse effect unrelated to credit risk on any security holder. Further, this opinion does not preclude a future downgrade or withdrawal of the current ratings for any reason. Moody's believes that the substitute servicer's ability to prevent further deterioration in the certificates' pools will be of great importance. To assess the magnitude of the risks, Moody's considered the following key factors and evaluated how they apply to the specific circumstances of each transaction: 1) The quality of the pools has already deteriorated and Adamantine Servicios has little leeway to avoid the kind of short- term spike in early delinquencies that could follow a servicing transfer and translate into long-term serious delinquencies. 2) Because the proportion of Patrimonio-serviced loans in the different securitized pools, Adamantine Servicios will have to escalate its operational capacity quickly to support the servicing of the transferred pools. 3) A potential conflict of interest could arise on those transactions for which Proyectos Adamantine acts as primary and master servicer. These risks are mitigated by the following: 1) Adamantine Servicios' quality and stability as servicer, compared to Patrimonio's 2) the impact of a servicing fee scheme that is predicated on the loans' delinquency status and provides the servicer with an incentive to recover non-performing loans by either making them re-performing or expediting foreclosure 3) the incentives that align the interests of Adamantine Servicios with those of its investors: Proyectos Adamantine is the residual holder in the MXMACFW 07-3U and MXMACFW 07-5U transactions. The certificates' ratings already take into account the potential impact of these risks. Moody's also considered Proyectos Adamantine's role as master servicer. Proyectos Adamantine is likely to greatly facilitate the servicing transfer process given its familiarity with both Patrimonio's day-to-day operations and the portfolios' historical loan-by-loan servicing data. With the objective of achieving an orderly transfer, Proyectos Adamantiney Adamantine Servicios have devised a preliminary strategy for collaboration between the parties involved, the transfer of the critical portfolio servicing data and physical loan files, and the borrower notification process. The MXMACFW 07-5U and BRHCCB 07-2U certificates benefit from a financial guaranty insurance policy issued by MBIA Mexico S.A. de C.V., while the MXMACFW 07-3U certificates benefit from a financial guaranty insurance policy issued by MBIA Insurance Corporation. In both cases, the financial guarantee policies cover timely interest payments, providing yet more protection to the certificates. Moody's opinion was based in part on information that Proyectos Adamantine provided, as well as the agency's expectations regarding the impact of a servicing transfer on pool performance, mortgage collections, and the trust's ability to make timely interest payments on the affected securities. 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". =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Finances Improve Despite Fuel Subsidy Removal ----------------------------------------------------------------- RJR News reports that Caribbean Airlines Limited has recorded an improvement in financial performance and has been managing on its own despite the removal of its fuel subsidy nearly a year ago. Trinidad's Finance Minister, Senator Larry Howai, said while the airline got assistance from the Government in repaying some of its short-term debts, it has been managing its cash flow and other costs, according to RJR News. The report relates that while he had no specific figures to disclose, his information is that Caribbean Airline's financial position is more improved from nine months ago. Mr. Howai, the report notes, said this is expected to continue with the appointment of new Chief Executive Officer Michael DiLollo as well as a new Chief Financial Officer that has strengthened the management team. Senator Howai disclosed that the network optimization evaluation is still being worked on, but he expected it to be completed in a month, the report discloses. The audited financial reports of the airline for the years 2011 and 2012 are expected to be ready within the next three months, the report relates. In the meantime, the report discloses, Senator Howai said the assurance he gave a few months ago that the London route would not be dropped still stands. However, in an interview with Trinidad's Newsday newspaper he said it did not mean that the route would not be affected by the network study, the report relays. Senator Howai added that the route is doing well. Senator Howai said there are no plans for privatization at this time. Although Bahamian Prime Minister Perry Christie said last January that officials of BahamasAir were in talks with CAL officials regarding some kind of relationship, the Trinidadian Minister said he did not know about such discussions, the report notes. Senator Howai said now that a new executive had been selected, he had resumed his search for persons to replace some of the current members of CAL's Board, the report notes. Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on May 20, 2013, Caribbean360.com said Trinidad and Tobago Finance Minister Larry Howai said Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. In 2011, CAL had recorded losses of US43.7 million. FIRST CITIZENS: Group Execs Resign Before Shareholders' Meeting --------------------------------------------------------------- Trinidad and Tobago Newsday reports that one day before shareholders of the First Citizens Group meet to elect new persons to the Group's board of directors, came notice from the Group that two more of its directors had resigned. The Group holds a special meeting of its shareholders on June 17 at Queen's Hall in St Ann's for purpose of electing new directors to its board, according to Trinidad and Tobago Newsday. The report notes that a notice issued by the TT Stock Exchange indicated that John Tang Nian and Anthony Mohammed had resigned from the board of First Citizens with effect from June 12 and June 13, respectively. At the meeting, shareholders will be voting to approve six nominees approved by Cabinet to be directors on the First Citizens Group board of directors, the report relates. On May 27, Minister Larry Howai said Cabinet has approved former AG Anthony Smart, Witco managing director Jean Pierre Du Coudray, Joel Pemberton, Michelle Durham-Kissoon, Courtenay Williams and Hazar Hosein to be members of the First Citizens board, the report recalls. Mr. Smart, the report notes, is tipped to be First Citizens' new Chairman. At First Citizens' first annual general meeting as a public company (NAPA) in Port-of-Spain on May 12, Corporation Sole, represented by permanent secretary in the Ministry of Finance, Vishnu Dhanpaul, voted against the re-election of and refused to support directors Nyree Alfonso, Rishi Baddaloo, Shobee Jacelon and Marlene Juman, the report recalls. Mr. Alfonso was First Citizens Chairman at the time. Mr. Juman is the Permanent Secretary in the Ministry of the Attorney General. Established in 1993, the First Citizens Group comprises: First Citizens Bank Limited, First Citizens Asset Management Limited First Citizens Trustee Services Limited, First Citizens (St. Lucia) Limited, First Citizens Financial Services (St. Lucia) Limited, First Citizens Securities Trading Limited, First Citizens Investment Services Limited, First Citizens Investment Services (Barbados) Limited. The First Citizens Asset Management team manages a range of mutual funds and several major pension fund plans. * * * As reported in the Troubled Company Reporter-Latin America on May 27, 2014, Moody's Investors Service has downgraded First Citizens Bank Limited (FCBL) standalone bank financial strength rating (BFSR) to D+ from C-, lowering the baseline credit assessment (BCA) to baa3 from baa1. ================= V E N E Z U E L A ================= CORPORACION ELECTRICA: S&P Affirms 'B-' CCR; Outlook Negative ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' long-term corporate credit and senior unsecured debt ratings on Corporacion Electrica Nacional, S.A. (Corpoelec). The outlook remains negative. The rating action on Corpoelec reflects S&P's view that there is an almost certain likelihood that its owner, the Bolivarian Republic of Venezuela (B-/Negative/B), would provide timely and sufficient extraordinary support to the company in the event of financial distress. S&P's 'b-' stand-alone credit profile (SACP) remains unchanged. In accordance with S&P's criteria for GREs, its view of an extremely high likelihood of extraordinary support is based on its assessment of Corpoelec's critical role as the only provider of electricity services in Venezuela. In S&P's opinion, this provides a strong economic incentive for the sovereign to support the company during periods of financial distress. S&P's assessment also incorporates its integral link with the government given the government's full ownership of Corpoelec and its special public status that S&P views as an extension of the government. "For the first time in 10 years, Corpoelec was allowed to increase its tariffs an average 18% in the first quarter of 2014. We consider this a positive step towards restoring its financial health. However, tariffs continue to be significantly low and do not cover the true cost of electricity production and distribution," said Standard & Poor's credit analyst Maria del Sol Gonzalez. Standard & Poor's doesn't have access to the company's audited financial statements for 2012 and 2013. S&P normally requires regular financial statements in order to rate a company. However, in the case of Corpoelec, S&P bases its financial analysis exclusively on the company's continued operating losses. As a result, it relies on ongoing government fund transfers to meet its financial obligations. In 2013, the company received about Venezuelan bolivar (VEB) 4.9 billion from the government. *********** 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 * * *