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/raid1/www/Hosts/bankrupt/TCRLA_Public/140717.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 Thursday, July 17, 2014, Vol. 15, No. 140 Headlines B R A Z I L BANCO BTG: S&Ps Puts 'BB+/B' Rating on CreditWatch Developing BES INVESTIMENTO: S&P Cuts ICR to 'B+' & Puts on CreditWatch Neg. USJ ACUCAR: S&P Revises Outlook to Negative & Affirms 'BB-' CCR C A Y M A N I S L A N D S BOWAY LTD: Shareholder to Receive Wind-Up Report on July 23 DYNAMIC ALPHA: Shareholders' Final Meeting Set for July 24 DYNAMIC ALPHA MASTER: Shareholders' Final Meeting Set for July 24 DYNAMIC GROWTH: Shareholders' Final Meeting Set for July 24 DYNAMIC GROWTH MASTER: Shareholders' Final Meeting Set for July 24 EURO-ASIAN INVESTMENTS: Members' Final Meeting Set for July 22 GRYPHON HIDDEN: Shareholders' Final Meeting Set for Aug. 4 OPTIMA CREDIT: Shareholders' Final Meeting Set for July 22 TRIANGULAR ISM: Shareholders' Final Meeting Set for July 24 TRUESDALE LTD: Shareholder to Receive Wind-Up Report on July 23 D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: US$30 Billion Debt Stalks Economy P U E R T O R I C O PUERTO RICO UTILITY: May Default on January Interest Payment S T. L U C I A * ST LUCIA: Under 'Water Emergency' as Drought Situation Worsens T R I N I D A D & T O B A G O PETROLEUM COMPANY: Workers Want Audit - - - - - =========== B R A Z I L =========== BANCO BTG: S&Ps Puts 'BB+/B' Rating on CreditWatch Developing ------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB+/B' global scale and 'brAA/BrA-1' national scale ratings on Banco BTG Pactual (BTG) on CreditWatch with developing implications. The rating action follows the announcement that BTG has signed a binding agreement to acquire all of the shares of BSI S.A., a Swiss private bank that Assicurazioni Generali indirectly owns. This purchase reflects the bank's desire to expand its global platform by offering asset management products in Europe. After the merger, BTG will have approximately 65% of its exposures in Brazil and the remainder in Switzerland, which S&P considers as lower risk than Brazil. As a result, S&P could revise upward its anchor on BTG, the starting point of its rating, when S&P incorporates its view of the banking industry risk of Switzerland into its assessment of the bank. Moreover, BTG's risk-adjusted capital ratio could also benefit from the lower risk weights that S&P applies to Switzerland exposures, compared with those in Brazil. On the other hand, if BTG funds this transaction without a capitalization that supports S&P's risk adjusted capital (RAC) ratio above 5%, it could have negative implications on its capital position. Although BTG plans to integrate BSI into its operations, it will maintain its brand. S&P understands that BTG will acquire BSI without any contingencies related to the tax lawsuits that Swiss banks are currently facing from the U.S. Department of Justice, as its parent, Generali, will cover the losses related to this issue. CreditWatch The CreditWatch developing listing reflects the acquisition's potential ratings impact following S&P's assessment of BTG's anchor, capital, and business positions. S&P could raise the rating on BTG if it revises the bank's anchor upward if the Switzerland exposures are above 35% of the consolidated bank and the investment banking activities represent less relevance, and if the RAC ratio of the consolidated bank is above 7%. S&P could downgrade the bank if BTG funds the acquisition without a capitalization that doesn't support its RAC ratio above 5% and S&P don't revise the anchor. S&P intends to resolve the CreditWatch listing after the completion of regulatory approvals in Brazil and Switzerland and S&P's assessment of the acquisition's impact on the bank's anchor, capital and business profile. BES INVESTIMENTO: S&P Cuts ICR to 'B+' & Puts on CreditWatch Neg. ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term global scale issuer credit and debt ratings on BES Investimento do Brasil (BESI Brasil) to 'B+' from 'BB-'. Also, S&P lowered its national scale issuer credit ratings to 'brBBB-/brA-3' from 'brA/brA-2'. At the same time, S&P placed these ratings on CreditWatch negative. S&P affirmed the 'B' short-term global-scale issuer credit rating on the bank. The rating action follows S&P's July 11, 2014, similar actions on BESI Brasil's parents, Banco Espirito Santo S.A. (BES) and Banco Espirito Santo de Investimento S.A. (BESI). "The downgrade and CreditWatch placement of BES reflected a further downgrade potential if we believed that there are further negative implications for its business or financial profiles resulting from the changes in its management and corporate governance or from the still uncertain prospects for the Grupo Espirito Santo (--the holding and operating group that includes Espirito Santo Financial Group, S.A., which has a 25% direct stake in BES" said Standard & Poor's credit analyst Sebastian Liutvinas. The CreditWatch negative placement reflects that on BESI Brasil's parent, as a downgrade on the parent would prompt a downgrade on BESI Brasil. S&P will evaluate the implications of the parents' weakened credit quality on BESI Brasil's liquidity, capitalization, and business position. S&P expects to resolve the CreditWatch listing once it has resolved the CreditWatch on BESI Brasil's parents. USJ ACUCAR: S&P Revises Outlook to Negative & Affirms 'BB-' CCR --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on USJ Acucar e Alcool S.A. to negative from stable. At the same time, S&P affirmed its 'BB-' global scale corporate credit and debt ratings and 'brA' national scale corporate credit rating on the company. The negative outlook reflects a possible downgrade if unfavorable industry conditions prevent USJ from improving its profitability and cash flow generation. This could result in leverage metrics higher than what S&P expects for an "aggressive" financial risk profile, such as debt to EBITDA of more than 5x and funds from operations (FFO) to debt of less than 12%. The still low sugar prices, inflation pressures, weak profitability on ethanol, and drought's impact on USJ's crushing volumes and productivity measures should jeopardize the company's debt reduction in the short term. In the 2013-2014 harvest ended March 2014, USJ's cash flows weakened due to sugar prices of 17 cents per pound and to the longer crop period following excess rains in June and July 2013. These factors increased costs and required USJ to buy sugarcane bagasse from third parties to continue crushing, which lowered its EBITDA margin to 37.1% in fiscal 2014 from 40.3% in fiscal 2013. ========================== C A Y M A N I S L A N D S ========================== BOWAY LTD: Shareholder to Receive Wind-Up Report on July 23 ----------------------------------------------------------- The shareholder of Boway Ltd. will receive on July 23, 2014, at 11:20 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Justin Savage 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands Telephone: (345) 815 1816 Facsimile: (345) 949 9877 DYNAMIC ALPHA: Shareholders' Final Meeting Set for July 24 ---------------------------------------------------------- The shareholders of Dynamic Alpha Performance Offshore, Ltd will hold their final meeting on July 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 liquidator is: 1832 Asset Management G.P. Inc. c/o Simon Mielniczuk 1832 Asset Management L.P. 40 King Street West 52nd Floor, Toronto Ontario, M5H 1H1 Canada Telephone: +1 (416) 365 5142 DYNAMIC ALPHA MASTER: Shareholders' Final Meeting Set for July 24 ----------------------------------------------------------------- The shareholders of Dynamic Alpha Performance Master, Ltd. will hold their final meeting on July 24, 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: 1832 Asset Management G.P. Inc. c/o Simon Mielniczuk 1832 Asset Management L.P. 40 King Street West 52nd Floor, Toronto Ontario, M5H 1H1 Canada Telephone: +1 (416) 365 5142 DYNAMIC GROWTH: Shareholders' Final Meeting Set for July 24 ----------------------------------------------------------- The shareholders of Dynamic Growth Opportunities Offshore, Ltd will hold their final meeting on July 24, 2014, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 1832 Asset Management G.P. Inc. c/o Simon Mielniczuk 1832 Asset Management L.P. 40 King Street West 52nd Floor, Toronto Ontario, M5H 1H1 Canada Telephone: +1 (416) 365 5142 e-mail: simon.mielniczuk@scotiabank.com DYNAMIC GROWTH MASTER: Shareholders' Final Meeting Set for July 24 ------------------------------------------------------------------ The shareholders of Dynamic Growth Opportunities Master, Ltd. will hold their final meeting on July 24, 2014, at 10:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 1832 Asset Management G.P. Inc. c/o Simon Mielniczuk 1832 Asset Management L.P. 40 King Street West 52nd Floor, Toronto Ontario, M5H 1H1 Canada Telephone: +1 (416) 365 5142 EURO-ASIAN INVESTMENTS: Members' Final Meeting Set for July 22 -------------------------------------------------------------- The members of Euro-Asian Investments Limited will hold their final meeting on July 22, 2014, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: M. Ayed F. Al-Sharriff c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands GRYPHON HIDDEN: Shareholders' Final Meeting Set for Aug. 4 ---------------------------------------------------------- The shareholders of Gryphon Hidden Values Limited will hold their final meeting on Aug. 4, 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: David A.K. Walker c/o Jodi Jones Telephone: (345) 914 8694 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands OPTIMA CREDIT: Shareholders' Final Meeting Set for July 22 ---------------------------------------------------------- The shareholders of The Optima Credit Special Investment Fund will hold their final meeting on July 22, 2014, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Fear c/o Daniel Woolston Telephone: (345) 814 7782 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands TRIANGULAR ISM: Shareholders' Final Meeting Set for July 24 ----------------------------------------------------------- The shareholders of Triangular ISM Fund Ltd will hold their final meeting on July 24, 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: Alun Davies Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 TRUESDALE LTD: Shareholder to Receive Wind-Up Report on July 23 --------------------------------------------------------------- The shareholder of Truesdale Ltd. will receive on July 23, 2014, at 11:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Justin Savage 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands Telephone: (345) 815 1816 Facsimile: (345) 949 9877 =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: US$30 Billion Debt Stalks Economy ------------------------------------------------------ Dominican Today reports that runaway public debt already near US$30 billion, unemployment and a distorted production model that spooks investments are the Dominican economy's main pitfalls, according to economists Miguel Ceara and Ernesto Selman. But of the three woes the external debt is what most concerns experts, and with reason: 91% of the interests due in 2014 are being paid with new loans, according to Dominican Today. "We're not only are paying capital with debt, but also the interests," the report quoted Mr. Ceara as saying. "That's money which is literally bouncing because it is not used for any productive activity, and to pay off interest instead." "There's a doubt as to whether the money borrowed in the past was used effectively, because in a country with so many institutional weaknesses, it is legitimate to think that the money has been misused," Mr. Ceara said, the report relates. Speaking in the Corripio Media Group luncheon, Mr. Ceara added that according to budget figures, this year's net new debt is RD$77.0 billion, and RD$71.0 billion has to be paid in interest, the report discloses. ===================== P U E R T O R I C O ===================== PUERTO RICO UTILITY: May Default on January Interest Payment ------------------------------------------------------------ Michelle Kaske at Bloomberg News reports that the Puerto Rico Electric Power Authority (PREPA) may miss a January interest payment to investors, according to Municipal Market Advisors, potentially triggering the largest restructuring ever of state and local debt. PREPA used $41.6 million of reserve funds to help make a $417.6 million payment to bondholders on July 1. With the reserve now depleted by about 10 percent, "we expect the bond trustee is unlikely to make any more distributions to bondholders, reserving cash for likely litigation expenses," Matt Fabian, a managing director at Concord, Massachusetts-based MMA wrote in a report, according to Bloomberg News. The next payment is due Jan. 1, according to Mr. Fabian. Unless the utility replenishes the reserve, investors in uninsured Prepa bonds "have likely seen their last cash in awhile," wrote Mr. Fabian, who's been analyzing the municipal-debt market for 18 years, Bloomberg News notes. While a new law aims to restructure some Puerto Rico public- corporation debt outside of a bankruptcy filing, Prepa's $8.6 billion alone exceeds the $8 billion of general obligations and water-and-sewer debt in Detroit's record bankruptcy and Jefferson County, Alabama's $4.2 billion failure, Bloomberg News relates. Bond Insurance About 70 percent of the debt from Prepa, which supplies most of the commonwealth's electricity, doesn't have bond insurance, data compiled by Bloomberg show. The agency is a prime candidate to restructure its obligations under the law passed last month that allows certain public corporations to negotiate with bondholders to reduce debt, Bloomberg News adds. Fitch Ratings on June 26 cut Prepa to CC, its third-lowest speculative grade. Standard & Poor's and Moody's Investors Service also give it junk ratings. Prepa has $671 million in bank lines of credit maturing by mid- August, which it can't repay, according to S&P. =============== S T. L U C I A =============== * ST LUCIA: Under 'Water Emergency' as Drought Situation Worsens ---------------------------------------------------------------- Caribbean360.com reports that the St. Lucia Water and Sewage Company (WASCO) placed the entire island under a water emergency schedule as drought situation worsened. Initially, the emergency had been confined to the north of the island, but WASCO managing director Vincent Hippolyte said that there had not been sufficient rainfall to meet the demands of consumers, according to Caribbean360.com. "Despite the rains and the greenery, drought conditions exist because the rivers are not moving. They do not have the volume of water that will enable WASCO to extract sufficient water to meet demand. We are in the early stages in the drought situation. It is not as severe as the later stages, but we are still in drought conditions," the report quoted Mr. Hippolyte as saying. WASCO said that as a result, the island-wide water-rationing program would remain in effect and that communities will experience periodic water outages, the report notes. The report discloses that WASCO is urging consumers to conserve water amid suggestions by experts that the drought may continue until the end of August. "The public is also reminded that the Water Emergencies Act enforces water conservation restrictions that limit lawn sprinkling, vehicle washing, golf course and park irrigation, and other nonessential uses", it added, the report relays. =============================== T R I N I D A D & T O B A G O =============================== PETROLEUM COMPANY: Workers Want Audit ------------------------------------- Trinidad and Tobago Express reports that Petroleum Company of Trinidad and Tobago (Petrotrin) workers want the State to conduct a forensic audit into the operations of the South West Soldado Development Project, where a floating facility is expected to be built. They say some $8 million was paid to a company two years ago but no work was done, according to Trinidad and Tobago Express. The report notes that on July 10, employees of Petrotrin's Trinmar operations in Point Fortin held a meeting to discuss their issues. It was held at the Oilfields Workers' Trade Union (OWTU) Branch Hall, Newlands, Point Fortin. The report notes that Emile James, the branch's vice-president, said they were concerned about the operations at Trinmar and the southwestern region that was why an audit was being requested. "Our livelihood is Trinmar. We want to see Trinmar move. Trinmar is the only oil establishment and produces the most amount of oil in Trinidad and Tobago. We are calling for an investigation, a forensic audit into the operations on that whole southwest team and the whole arrangement with that certain facility," the report quoted Mr. James as saying. The report notes that Mr. James said: "To date, we have not seen or heard anything about that production facility and we want to know what is happening with that. Where has the money gone? We could do whatever is necessary to have the production where it supposed to be." In 2012, Prime Minister Kamla Persad-Bissessar announced that 48 million barrels of crude oil were found off the Gulf of Paria near Point Fortin. However, the report continues, Mr. James said: "To date, we have had no production from that area. They drilled about three or four wells. Lines have not been attached so we have had no joy of that oil that the Prime Minister spoke about in that area." Gillian Friday, Petrotrin's manager of corporate communication, in an e-mailed response to the new agency, stated: "Petrotrin understands that the Trinmar branch of the OWTU held a meeting attended by some of Petrotrin's employees and contractors' employees at the OWTU Branch Hall in Point Fortin this morning. "We do not have any information on what transpired at that meeting at this time. In the meantime, we remain focused on boosting efforts to increase crude oil production, which is critical to our continued survival." About Petrotrin Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2013, Trinidad Express reports that production levels at Petroleum Company of Trinidad and Tobago (Petrotrin)'s Trinmar operations in Point Fortin have been affected by industrial action involving employees of the company's marine transport contractors. Petrotrin stated that it was informed of a what it described as a stand-off between its marine contractors and their employees, who cited issues, including their current rates of remuneration, according to Trinidad Express. *********** 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 * * *