/raid1/www/Hosts/bankrupt/TCRLA_Public/140922.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, September 22, 2014, Vol. 15, No. 187
Headlines
A R G E N T I N A
ARGENTINA: 2nd Circ. Tosses Citibank Appeal of Bond Ruling
ARGENTINA: Poverty Risks Quadrupling, World Bank Says
ARGENTINA: Now Is the Time to Invest, Algodon Founder Says
B R A Z I L
GLOBOAVES FINANCE: Fitch Withdraws 'B/RR4' Rating on USD200M Notes
JALLES MACHADO: Fitch Publishes 'BB-' Issuer Default Ratings
C A Y M A N I S L A N D S
BSOF PARALLEL: Commences Liquidation Proceedings
GMR AVIATION: Commences Liquidation Proceedings
HUTCHISON WHAMPOA: Creditors' Proofs of Debt Due Oct. 20
JEANFAY CO: Creditors' Proofs of Debt Due Sept. 29
JOHO ASIA: Creditors' Proofs of Debt Due Oct. 3
LDK SOLAR: Units to File Prepack Bankruptcy in U.S.
LDK SOLAR: Cayman Court Wants Creditors Meeting Held in October
LDK SOLAR: Hong Kong Court to Conduct Hearing on Sept. 23
RAM ONE: Creditors' Proofs of Debt Due Oct. 8
ROGERS RAW: Commences Liquidation Proceedings
UBS CAPITAL: Commences Liquidation Proceedings
UBS PW: Creditors' Proofs of Debt Due Oct. 6
VINTAGE YEAR: Creditors' Proofs of Debt Due Oct. 3
G U A T E M A L A
* GUATEMALA: Fiscal Deficit Declined in 2013, says IMF
J A M A I C A
DIGICEL GROUP: Buys Majority Stake in Broadcaster Sportsmax
NATIONAL INSURANCE: To Woo Informal Sector to Avoid Bankruptcy
M E X I C O
MULTICAT MEXICO: S&P Puts B- Rating on Class C Notes on Watch Neg.
* MEXICO: Inflation to Slow Even as GDP Picks Up, Banxico Says
V E N E Z U E L A
CORPORACION ELECTRICA: S&P Lowers CCR to 'CCC+'; Outlook Negative
X X X X X X X X X
* BOND PRICING: For the Week From September 15 to Sept. 19, 2014
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: 2nd Circ. Tosses Citibank Appeal of Bond Ruling
--------------------------------------------------------
Jeff Sistrunk, writing for Law360, reported that the Second
Circuit on Feb. 19 dismissed Citibank NA's appeal of a New York
federal judge's order preventing it from processing an upcoming
payment on $8.4 billion in Argentine sovereign debt, a day after
the bank's lawyer argued that the lower court's ruling has "put a
gun to our head."
In a brief order, a three-judge appellate panel said it doesn't
have jurisdiction over Citibank's appeal because U.S. District
Judge Thomas P. Griesa's order was a clarification, rather than a
modification, of a prior decision.
A lawyer for the bank told the three-judge panel in Manhattan that
Argentina was holding a gun to the head of Citigroup, Alexandra
Stevenson, writing for The New York Times' DealBook, reported.
Dealbook said the bank found itself in an awkward position: It
must decide between defying a New York court order or a sovereign
government, a move that it says would result in "grave sanctions"
from Argentina.
"We're going to obey, and if we obey, we have a gun to our head
and the gun will probably go off," the report quoted Karen Wagner,
a lawyer representing Citigroup, as saying.
The bank is the latest financial group to be caught in the battle
between a group of bondholders and Argentina that prompted the
country's default this summer and threatens to engulf financial
institutions which have until now watched from the sidelines.
Standing before the three-judge panel of the United States Court
of Appeals for the Second Circuit, Ms. Wagner argued that the bank
would suffer "serious and imminent hazard" if it obeyed a ruling
from a United States court judge that blocks it from making
payments to bondholders, the report said.
The report said appeal came on the heels of a ruling by Judge
Griesa that prevents Citigroup's Citibank Argentina branch from
transferring US$5 million in interest payments to bondholders by
Sept. 30. Ms. Wagner appealed to the court to extend that payment
deadline.
Citigroup is just one of a growing collection of disgruntled
investors and financial institutions that have been dragged into a
messy battle, which has put Argentina's president Cristina
Fernandez de Kirchner against a group of entrenched New York hedge
funds, the report said. Led by a unit of Paul E. Singer's Elliott
Management, the hedge funds are seeking a US$1.5 billion payment
on bonds that Argentina defaulted on in 2001.
After the default -- which rocked the country and largely cut it
off from global capital markets -- Argentina offered bondholders
discounted bonds in exchange for the defaulted bonds through two
restructurings, the report related. The so-called "holdout" hedge
funds rejected the terms of the new bonds. Argentina, for its
part, has refused to pay the "holdouts" the full amount they have
asked for.
The report disclosed that the impasse came to a dramatic climax in
July, after Judge Griesa ruled that Argentina could no longer pay
the bondholders who exchanged their defaulted bonds for new,
cheaper bonds without also paying the "holdouts." The ruling
precipitated another default after Argentina missed one of its
regular bond payments on July 30.
Bank of New York Mellon was the first bank to be caught up in the
rip tide that followed. In August, a separate group of hedge
funds, including George Soros's Quantum Partners and J. Kyle
Bass's Hayman Capital, sued the bank after a EUR226 million
interest payment on their bonds was blocked because of Judge
Griesa's ruling, the report recalled.
Citigroup, meanwhile, was served with a subpoena by the holdouts,
seeking to establish that the bank was being pressured to violate
Judge Griesa's order, the report said. Judge Griesa denied the
request.
On Sept. 18, the three appeals court judges were equally tough in
their questioning of lawyers for Argentina, Citigroup, and the
holdout hedge funds.
The report noted that in one moment of exasperation Judge Reena
Raggi asked a lawyer representing the holdouts hedge funds, "Tell
me what you expect Citibank to do to comply with the injunction?"
"What are they supposed to do practically?" she pressed.
Judge Barrington Daniels Parker, Jr. complained about Argentina's
track record of defying United States court orders, the report
relayed.
"We have a party that will not conform itself to the law," Judge
Parker said, the report added.
In a move that could put it in contempt of court, Argentina last
month passed a new law that would allow it to evade Judge Griesa's
court order, replacing the Bank of New York Mellon with
Argentina's Banco de la Nacion, the report disclosed.
Ms. Raggi, who was the most vocal of the three judges, told
Carmine Boccuzzi, a lawyer for Argentina, "If you win I know
you'll be happy to abide by the court's order," the report added.
* * *
The Troubled Company Reporter-Latin America, on Aug. 1, 2014,
reported that Argentina defaulted on some of its debt late July 30
after expiration of a 30-day grace period on a US$539 million
interest payment. Earlier that day, talks with a court-
appointed mediator ended without resolving a standoff between the
country and a group of hedge funds seeking full payment on bonds
that the country had defaulted on in 2001. A U.S. judge had ruled
that the interest payment couldn't be made unless the hedge funds
led by Elliott Management Corp., got the US$1.5 billion they
claimed. The country hasn't been able to access international
credit markets since its US$95 billion default 13 years ago.
As a result, reported the TCR-LA on Aug. 1, Standard & Poor's
Ratings Services lowered its unsolicited long-and short-term
foreign currency sovereign credit ratings on the Republic of
Argentina to selective default ('SD') from 'CCC-/C'.
The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings
downgraded Argentina's Foreign Currency Issuer Default Rating
(IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency
Issuer Default Rating to 'RD' from 'C'.
Meanwhile, Moody's Investors Service affirmed Argentina's Caa1
issuer rating, which also applies to domestic law bonds, confirmed
the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca
rating on the original defaulted bonds. The long-term issuer
rating was placed on negative outlook, reported the TCR-LA on Aug.
5, 2014.
On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America
Agente de Calificacion de Riesgo affirmed the deposit, debt,
issuer and corporate family ratings on Argentina's banks and
financial institutions, both on the global and national scales.
The outlook on these ratings has been changed to negative from
stable. At the same time, the rating agency has affirmed the
banks' Caa2 foreign-currency deposit ratings and Not-
Prime short-term ratings. The banks' standalone E financial
strength ratings corresponding to caa1 baseline credit assessments
(BCA) have also been affirmed.
The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has
downgraded Argentina's long-term foreign currency issuer rating
from CC to Selective Default (SD). The short-term foreign
currency rating has been downgraded to Default (D), from R-5. The
long-term and short-term local currency issuer ratings have been
confirmed at B (low) and R-5, respectively. The trend on the
long-term local currency rating is Negative, and the trend on the
short-term local currency rating is Stable.
ARGENTINA: Poverty Risks Quadrupling, World Bank Says
-----------------------------------------------------
Camila Russo at Bloomberg News reports that the World Bank said
Argentina risks quadrupling its poverty level as the economy
stalls.
Those living on US$4-US$10 per day, or 33 percent of Argentina's
population as of 2012, are vulnerable to falling into poverty in
the case of an adverse shock, according to the World Bank's 2015-
2018 report on the South American nation, Bloomberg News notes.
The poverty rate for the country's 43 million people may increase
to more than 40 percent from about 11 percent, the report said,
Bloomberg News relates.
According to the report, "Strengthening macroeconomic resilience,
improving the business environment, and boosting investor
confidence will be critical to fostering investment and expanding
and sustaining the employment thereby generated," notes Bloomberg
News.
Argentina defaulted on its international bonds July 30 after a
U.S. judge blocked a US$539 million interest payment until the
government pays so-called holdouts from a 2001 default in full,
Bloomberg News recalls. South America's second-largest economy
contracted in the first quarter while the annual inflation rate is
about 40 percent.
The greatest vulnerability to poverty arises in periods of
economic crises or prolonged sluggish growth, which reduces
employment and earnings and limit the ability of the government to
finance social programs that directly support the poor, according
to the World Bank report dated Aug. 7, Bloomberg News says. The
institution approved lending Argentina as much as US$4.8 billion
through 2018 as the nation's reserves dwindle, Bloomberg News
discloses.
Economy Ministry press official Jesica Rey didn't respond to an e-
mail from Bloomberg News seeking comment on the report.
Biggest Concern
About half of the 2,400 people interviewed in a Sept. 2-9
Management & Fit poll said Argentina's economic conditions will be
worse or much worse in the coming months, Bloomberg News relays.
Fifty-two percent considered employment as their main concern, the
Argentine consulting firm's survey showed.
Argentina will receive US$1 billion to US$1.2 billion per year in
loans for social development, the Washington-based lender said
Sept. 9 in an e-mailed statement obtained Bloomberg News. The
World Bank's IFC will also invest US$1.7 billion in export-
oriented private companies ranging from agribusiness, energy and
infrastructure to financial institutions, Bloomberg News relays.
The World Bank and IFC loans are aimed to increase the number of
people eligible for health care to 50 percent in 2018 from 28
percent, boost drinking water access to 92 percent from 83 percent
in northern Argentina and expand secondary school completion in
rural areas to 65.5 percent from 61.5 percent, Bloomberg News
discloses.
Other goals include reducing freight transport in northern
Argentina, decreasing transit time in Buenos Aires and Rosario,
and raising the gross value of agricultural production of 80,000
small-and medium-size farms, Bloomberg News says.
The World Bank's IBRD total exposure to Argentina is US$5.89
billion, with disbursements totaling US$701.2 million this year,
Bloomberg News adds.
* * *
The Troubled Company Reporter-Latin America, on Aug. 1, 2014,
reported that Argentina defaulted on some of its debt late July 30
after expiration of a 30-day grace period on a US$539 million
interest payment. Earlier that day, talks with a court-
appointed mediator ended without resolving a standoff between the
country and a group of hedge funds seeking full payment on bonds
that the country had defaulted on in 2001. A U.S. judge had ruled
that the interest payment couldn't be made unless the hedge funds
led by Elliott Management Corp., got the US$1.5 billion they
claimed. The country hasn't been able to access international
credit markets since its US$95 billion default 13 years ago.
As a result, reported the TCR-LA on Aug. 1, Standard & Poor's
Ratings Services lowered its unsolicited long-and short-term
foreign currency sovereign credit ratings on the Republic of
Argentina to selective default ('SD') from 'CCC-/C'.
The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings
downgraded Argentina's Foreign Currency Issuer Default Rating
(IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency
Issuer Default Rating to 'RD' from 'C'.
Meanwhile, Moody's Investors Service affirmed Argentina's Caa1
issuer rating, which also applies to domestic law bonds, confirmed
the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca
rating on the original defaulted bonds. The long-term issuer
rating was placed on negative outlook, reported the TCR-LA on Aug.
5, 2014.
On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America
Agente de Calificacion de Riesgo affirmed the deposit, debt,
issuer and corporate family ratings on Argentina's banks and
financial institutions, both on the global and national scales.
The outlook on these ratings has been changed to negative from
stable. At the same time, the rating agency has affirmed the
banks' Caa2 foreign-currency deposit ratings and Not-
Prime short-term ratings. The banks' standalone E financial
strength ratings corresponding to caa1 baseline credit assessments
(BCA) have also been affirmed.
The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has
downgraded Argentina's long-term foreign currency issuer rating
from CC to Selective Default (SD). The short-term foreign
currency rating has been downgraded to Default (D), from R-5. The
long-term and short-term local currency issuer ratings have been
confirmed at B (low) and R-5, respectively. The trend on the
long-term local currency rating is Negative, and the trend on the
short-term local currency rating is Stable.
ARGENTINA: Now Is the Time to Invest, Algodon Founder Says
----------------------------------------------------------
Scott Mathis, Chairman & Founder of Algodon Wines & Luxury
Development Group, responds to Argentina's recent default with an
update to the company's 2014 Whitepaper on Investing in Argentina.
Algodon Group has been investing since 2006 in Argentina's
vineyard operations, luxury lifestyle properties, and other real
estate assets and opportunities. Algodon Group's 2014 Whitepaper
Investing in Argentina reports the company's position on why they
believe there has never been a better time to seek investment
opportunities in Argentina's real estate market.
"We are not alone in our investment view on Argentina. Heavy
hitter investors, big businesses and billionaires, are doubling
down on Argentina investments; notable investors such as Dan Loeb,
Richard Perry, George Soros and Carlos Slim, Kyle Bass and David
Martinez have all made significant investments in Argentina in
recent months," says Mr. Mathis. "Fortress Investment's Michael
Novogratz also recently made the news with his bullish stance on
Argentina after its default. This is in addition to the
cumulative billions of investment dollars that have been announced
from businesses such as Starbucks, Accor Hotels, General Motors,
Mercedes Benz, Toyota, Chevron, and many others. We believe the
confidence shown by these individuals and companies speaks of more
than just a hint of Argentina's potential economic boom. It may
in fact help to breed further investor confidence and perhaps
start to mitigate some negative perspectives on Argentina
investing. Now is the time to invest in Argentina. It has been
for some time. Even now, despite the negative headlines,
Argentina's stock market is up 100% this year, outperforming every
other stock market in the world. This is because many investors
believe that despite the country's current economic situation, it
is well worth the risk. New presidential elections will be held
in less than 12 months, and there is now certainty of political
change in 2015. Once this happens, we believe that Argentina's
economy can soar. We expect the next administration to establish
normal, business friendly relations with the international
financial community which could in turn restore investor
confidence and boost the economy by attracting billions of dollars
more in new financing. This would be a turning point for
Argentina's economic future. Right now there is a window of
opportunity to acquire prime assets at great values reminiscent of
Brazil's pre-boom opportunities. Vaca Muerta is one of the
biggest shale opportunities in the world today, not to mention the
country's other natural resources such as agriculture potentially
being a huge economic driver as well. We anticipate Argentina's
real estate and stock markets will continue to move forward in the
years ahead and that asset values may increase dramatically, but
you must invest before the crowd because no wealth has ever been
created by getting in late. It's a great risk-reward scenario."
About Algodon Wines & Luxury Development Group
Algodon properties are owned and operated by Algodon Group,
founded by Chairman & CEO Scott Mathis and partners. Based in NYC
with offices in Buenos Aires and Mendoza, Algodon Group provides
an unequivocal strategic advantage in Argentine real estate
acquisition and development.
* * *
The Troubled Company Reporter-Latin America, on Aug. 1, 2014,
reported that Argentina defaulted on some of its debt late July 30
after expiration of a 30-day grace period on a US$539 million
interest payment. Earlier that day, talks with a court-
appointed mediator ended without resolving a standoff between the
country and a group of hedge funds seeking full payment on bonds
that the country had defaulted on in 2001. A U.S. judge had ruled
that the interest payment couldn't be made unless the hedge funds
led by Elliott Management Corp., got the US$1.5 billion they
claimed. The country hasn't been able to access international
credit markets since its US$95 billion default 13 years ago.
As a result, reported the TCR-LA on Aug. 1, Standard & Poor's
Ratings Services lowered its unsolicited long-and short-term
foreign currency sovereign credit ratings on the Republic of
Argentina to selective default ('SD') from 'CCC-/C'.
The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings
downgraded Argentina's Foreign Currency Issuer Default Rating
(IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency
Issuer Default Rating to 'RD' from 'C'.
Meanwhile, Moody's Investors Service affirmed Argentina's Caa1
issuer rating, which also applies to domestic law bonds, confirmed
the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca
rating on the original defaulted bonds. The long-term issuer
rating was placed on negative outlook, reported the TCR-LA on Aug.
5, 2014.
On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America
Agente de Calificacion de Riesgo affirmed the deposit, debt,
issuer and corporate family ratings on Argentina's banks and
financial institutions, both on the global and national scales.
The outlook on these ratings has been changed to negative from
stable. At the same time, the rating agency has affirmed the
banks' Caa2 foreign-currency deposit ratings and Not-
Prime short-term ratings. The banks' standalone E financial
strength ratings corresponding to caa1 baseline credit assessments
(BCA) have also been affirmed.
The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has
downgraded Argentina's long-term foreign currency issuer rating
from CC to Selective Default (SD). The short-term foreign
currency rating has been downgraded to Default (D), from R-5. The
long-term and short-term local currency issuer ratings have been
confirmed at B (low) and R-5, respectively. The trend on the
long-term local currency rating is Negative, and the trend on the
short-term local currency rating is Stable.
===========
B R A Z I L
===========
GLOBOAVES FINANCE: Fitch Withdraws 'B/RR4' Rating on USD200M Notes
------------------------------------------------------------------
Fitch Ratings has withdrawn the expected rating of 'B/RR4'
assigned to Globoaves Finance Ltd's (Globoaves Finance) USD200
million 2019 proposed senior unsecured notes issuance.
Globoaves Finance is a fully owned subsidiary of Globoaves Sao
Paulo Agroavicola Ltda (Globoaves). The note would be fully
guaranteed by Globoaves, Globoaves Biotecnologia Avicola Ltda. and
Kaefer Agro Industrial Ltda.
The withdrawal of the rating follows unfavorable market conditions
to sell the notes. As there is no set time frame for resuming the
issuance process, no rating is required at this time. Fitch will
provide investors with further information on the notes if and
when the issuer resumes the sale process.
Fitch continues to rate Globoaves as follows:
-- Foreign and local currency Issuer Default Ratings 'B';
-- National scale long-term rating 'BBB(bra)'.
The Rating Outlook is Stable.
JALLES MACHADO: Fitch Publishes 'BB-' Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has published Jalles Machado S.A.'s (Jalles Machado)
'BB-' foreign and local currency Issuer Default Ratings (IDRs) and
'A+(bra)' long-term national scale rating. The Rating Outlook for
the corporate ratings is Stable.
Key Rating Drivers
Jalles Machado's ratings reflect the company's strong business
model and robust operating margins. Jalles Machado has a premium
portfolio of products that includes branded organic and crystal
sugar, as well as energy production from its cogeneration power
plants. The company benefits from fiscal incentives on the sale of
sugar and ethanol and relatively low land lease costs. The ratings
incorporates the company's strong agricultural performance due to
its adequate investments in the cane fields, the use of irrigation
over a relevant portion of its harvest area and self-sufficiency
in sugar cane, which explain the lower volatility of Jalles
Machado's operating cash flow generation compared to most of its
peers.
Fitch expects Jalles Machado's leverage to remain at moderate
levels for the sector and that the company will improve the weak
liquidity position posted at the end of fiscal year 2014. The
agency also considered that Jalles Machado's free cash flow (FCF)
for fiscal year 2015 should benefit from higher utilization of its
two mills and the just finished investments in expansion of
planted area. The ratings incorporate the company's exposure to
the inherent volatility of sugar prices, currently at low levels,
and the Brazilian ethanol industry dynamics, which is strongly
linked to Brazil's regulated gasoline prices and related
government energy policies. Jalles Machado's business risk also
includes the exposure of its sugarcane production to weather
conditions.
Robust Business Model
Jalles Machado's business profile benefits from its own sugar cane
that accounts for 100% of its total origination needs and
artificial irrigation coverage of around 60% of the company's
harvest area. Jalles Machado is a family-owned sugar and ethanol
producer that runs two mills - Jalles Machado and Usina Otavio
Lage - in the State of Goias with crushing capacity of 4.3 million
tons of sugarcane. The company also runs two co-generation assets
with total installed capacity of 88 MW and sells the energy
surplus to the national grid. The sale of energy from cogeneration
also contributes to Jalles Machado's robust operating margins and
helps to reduce the impact of the inherent sugar and ethanol price
volatilities on the company's operating cash flow generation.
EBITDAR Margins Above Industry Peers
Jalles Machado offers a differentiated product portfolio that
contributes to EBITDAR margins within a range of 66% and 75%,
which compare favorably with the industry average. In fiscal year
2014, ended on March 31, 2014, net revenues increased by 14% to
BRL443 million and EBITDAR amounted to BRL333 million, at a 75%
margin. The company's premium portfolio of products includes the
sale of branded organic and crystal sugar, the latter holding
relevant market share in Brazil's Northern and Northeastern retail
markets. Prices for both products command large premiums compared
to VHP sugar. Product mix also includes sale of hydrous, anhydrous
and industrial ethanol. In fiscal year 2014, Jalles Machado's net
revenues were broken down as follows: hydrous ethanol (29%),
crystal sugar (24%), anhydrous ethanol (17%), organic sugar (15%),
energy (7%), raw sugar (6%) and others with the balance.
High operating margins also reflect the company's fiscal
incentives provided by the State of Goias on the sale of sugar and
ethanol. In fiscal year 2014, tax incentives alone added BRL32
million to Jalles Machado's EBITDA. The company's low land lease
costs, well below the average of the State of Sao Paulo, also play
a role. The self-sufficiency in sugar cane has a positive
accounting impact on Jalles Machado's margins. As spending on the
cane fields is accounted for as capital expenditure rather than
cost, the higher the share of own cane in the mix, the larger the
capital expenditure and the lower the cash cost.
Positive FCF Expected for Fiscal Year 2015
Jalles Marchado's cash flow from operations (CFFO) should benefit
in fiscal year 2015 from full utilization of the company's mills
and recent investments in the expansion of its harvest area. The
company crushed 1.6 million tons of sugar cane in the first
quarter of 2015 (1Q'15), up 30% from 1Q'14. In the 1Q'15,
agricultural yields are up by 24% and 16% at Jalles Machado and
Otavio Lage mills, respectively, on a year-over-year comparison.
It is expected the company's two units to operate near 100% of
maximum capacity and its cane fields to generate excess sugar cane
production of 380,000 tons in fiscal year 2015. The company has
just come out from an investment program that increased its
harvest area to 44,000 hectares at the end of fiscal year 2014
from 29,000 hectares in fiscal year 2010.
Jalles Machado's FCF should turn positive in fiscal year 2015 and
remain in surplus in the years that follow, assuming average sugar
and ethanol prices in line with the average of the last 12 months
and foreign exchange rate at current levels (USD1/BRL2.30). This
scenario also considers that Petroleo Brasileiro S.A. (Petrobras)
will keep imposing an indirect cap on hydrous ethanol prices by
exercising a tight control on gasoline prices. In fiscal year
2014, Jalles Machado posted negative FCF of BRL36 million, down
from negative BRL85 million at the previous year. In the latest 12
months (LTM) ended on March 31, 2014, Jalles Machado reported
robust CFFO of BRL206 million, which compares favorably to BRL169
million in fiscal year 2013. In this analysis, Fitch assumes that
Jalles Machado will postpone any investment in expansion of
planted area and increase of crushing capacity as long as sugar
and ethanol prices remain at current levels.
Moderate Leverage to Remain
Fitch expects that Jalles Machado will be able to keep leverage at
the currently moderate levels. In fiscal year 2014, the company's
total adjusted debt-to-EBITDAR ratio was 3.4 times (x), while net
adjusted debt-to-EBITDAR ratio was 3.0x, well below the average of
the sector. These ratios compare favorably to 3.5x and 3.0x,
respectively, in the previous year. As of March 31, 2014, the
company's total adjusted debt by installed capacity was BRL266 per
ton, above the average of companies covered by Fitch and greatly
explained by the recent conclusion of investments in planted area.
As of March 31, 2014, consolidated adjusted debt including
obligations related to land lease was BRL1.1 billion, of which
USD-denominated debt accounted for 30%. Principal and interest
payments up to September 2015 are protected through derivatives.
Jalles Machado's debt consisted of working capital (32%); trade
finance facilities (30%), land lease agreements according to
Fitch's methodology (18%); financings from the Brazilian Economic
Social and Development Bank (BNDES, 15%); and others (5%).
Weak Liquidity
Jalles Machado liquidity has been historically weak. The company's
main challenge is to pursue a healthier debt maturity profile and
stronger liquidity with aims at reducing refinancing risks as well
the impact of the inherent sugar and ethanol price volatilities on
its operating cash flow generation. As of March 31, 2014, the
company's cash reserves of BRL132 million covered only 54% of its
short-term debt obligations down from 73% as of March 31, 2013.
Jalles Machado's short-term debt coverage stood at 1.42x and 1.37x
as of fiscal-year 2014 when funds from operations (FFO) and CFFO
were added to the cash position, respectively. The company has
raised additional long-term finance of BRL65 million (tenors of up
to seven years) since the closing of fiscal year 2014 and Fitch
will keep monitoring if the company's expected liquidity
improvement is sustainable over the long run.
Rating Sensitivities
Future developments that may, individually or collectively, lead
to a negative rating action:
-- Deterioration in Jalles Machado's financial profile, with
adjusted net leverage going above 3.5x;
-- A short-term debt coverage ratio, measured by (CFFO + cash and
marketable securities)/short-term debt below 1.2x on a consistent
basis.
Future developments that may, individually or collectively, lead
to a positive rating action:
-- Strengthening of Jalles Machado's financial profile, with
adjusted net leverage equal or below 2.0x;
-- A short-term debt coverage ratio, measured by (CFFO + cash and
marketable securities)/short-term debt equal or higher than 2.5x.
==========================
C A Y M A N I S L A N D S
==========================
BSOF PARALLEL: Commences Liquidation Proceedings
------------------------------------------------
On Aug. 21, 2014, the sole shareholder of BSOF Parallel Able Fund
Ltd resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidators are:
Sean Flynn
c/o Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6365
GMR AVIATION: Commences Liquidation Proceedings
-----------------------------------------------
On Aug. 19, 2014, the shareholders of GMR Aviation Partners Ltd.
resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Macquarie Aircraft Leasing Services (US), Inc.
Suite 200, Two Embarcadero Center
San Francisco, CA 94111
USA
Telephone: +1 (345) 914 6365
HUTCHISON WHAMPOA: Creditors' Proofs of Debt Due Oct. 20
--------------------------------------------------------
The creditors of Hutchison Whampoa Finance (12) Limited are
required to file their proofs of debt by Oct. 20, 2014, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Aug. 12, 2014.
The company's liquidator is:
Ying Hing Chiu
Hopewell Centre, Level 54
183 Queen's Road East
Hong Kong
Telephone: (852) 2980-1988
Facsimile: (852) 2882-6700
JEANFAY CO: Creditors' Proofs of Debt Due Sept. 29
--------------------------------------------------
The creditors of Jeanfay Co Ltd are required to file their proofs
of debt by Sept. 29, 2014, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Aug. 14, 2014.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
c/o Jo-Anne Maher
Telephone: (345) 814-9255
Facsimile: (345) 949-4647
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
JOHO ASIA: Creditors' Proofs of Debt Due Oct. 3
-----------------------------------------------
The creditors of Joho Asia Growth Fund, Ltd. are required to file
their proofs of debt by Oct. 3, 2014, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on July 31, 2014.
The company's liquidator is:
Jane Fleming
Telephone: (345) 945-2187
Facsimile: (345) 945-2197
P.O. Box 30464 Grand Cayman KY1-1202
Cayman Islands
LDK SOLAR: Units to File Prepack Bankruptcy in U.S.
---------------------------------------------------
LDK Solar CO., Ltd., in provisional liquidation, together with its
Joint Provisional Liquidators, Tammy Fu and Eleanor Fisher, both
of Zolfo Cooper (Cayman) Limited, said Sept. 18 that three of its
U.S. subsidiaries, LDK Solar USA, Inc., LDK Solar Tech USA, Inc.
and LDK Solar Systems, Inc. (the "US Plan Proponents"), launched a
solicitation of votes on a prepackaged plan of reorganization (the
"Prepackaged Plan") from the holders of the Company's 10% Senior
Notes due 2014 (the "Senior Notes").
The US Plan Proponents intend to implement the Prepackaged Plan
through the commencement of chapter 11 cases.
Votes on the Prepackaged Plan from the holders of Senior Note
guarantee claims must be submitted to Lucid Issuer Services
Limited ("Lucid") so that they are actually received no later than
12:00 p.m. (prevailing Eastern time) on October 15, 2014.
Holders of Senior Notes guarantee claims who need additional
information regarding the balloting process can contact Lucid at
ldk@lucid-is.com or Epiq Bankruptcy Solutions, LLC, which is the
U.S. Voting Agent, at +1 646-282-2500 or
tabulation@epiqsystems.com (please include "LDK Solar" in the
subject line).
The JPLs may be reached at:
Tammy Fu
Eleanor Fisher
ZOLFO COOPER CAYMAN LIMITED
P.O. Box 1102
4th Floor, Building 3
Cayman Financial Centre
Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 946-0081
Fax: (345) 946-0082
E-mail: tammy.fu@zolfocooper.ky
eleanor.fisher@zolfocooper.ky
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-
Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
LDK SOLAR: Cayman Court Wants Creditors Meeting Held in October
---------------------------------------------------------------
LDK Solar CO., Ltd., in provisional liquidation, together with its
Joint Provisional Liquidators, Tammy Fu and Eleanor Fisher, both
of Zolfo Cooper (Cayman) Limited, said Sept. 18 that the Company's
application (acting by the JPLs) and its subsidiary, LDK Silicon &
Chemical Technology Co., Ltd. ("LDK Silicon"), by summons dated
August 29, 2014, to the Grand Court of the Cayman Islands (the
"Cayman Court"), the Cayman Court made an order dated September
12, 2014 and filed on September 16, 2014 to direct the Company and
LDK Silicon to convene the class meetings of the Company's
creditors on October 16, 2014 (starting at 8:00 p.m.), Cayman
time, and October 17, 2014 (starting at 9:00 a.m.), Hong Kong
time.
The Cayman Court is currently scheduled to hear the petition in
respect of the schemes of arrangement on November 6, 2014, at
which hearing the Cayman Court will determine whether or not to
sanction the schemes of arrangement.
Creditors of the Company and LDK Silicon are invited to review the
Scheme Website at http://ldksolar-provisionalliquidation.comwhere
further details of the schemes of arrangement may be found,
including details of how to vote at the meetings, copies of the
schemes of arrangement, the explanatory statement, and the
solicitation packets.
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-
Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
LDK SOLAR: Hong Kong Court to Conduct Hearing on Sept. 23
---------------------------------------------------------
LDK Solar CO., Ltd., in provisional liquidation, together with its
Joint Provisional Liquidators, Tammy Fu and Eleanor Fisher, both
of Zolfo Cooper (Cayman) Limited, said Sept. 18 that the Company,
together with LDK Silicon and LDK Silicon Holding Co., Limited
("LDK Silicon Holding"), previously made a filing to commence
schemes of arrangement in the High Court of Hong Kong (the "Hong
Kong Court"). The Hong Kong Court is currently scheduled to hear
on September 23, 2014 the applications on behalf of the company,
LDK Silicon and LDK Silicon Holding to convene the class meetings
of creditors for the Hong Kong schemes of arrangement on or around
October 17, 2014, Hong Kong time.
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-
Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
RAM ONE: Creditors' Proofs of Debt Due Oct. 8
---------------------------------------------
The creditors of Ram One (Cayman) Ltd are required to file their
proofs of debt by Oct. 8, 2014, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Aug. 21, 2014.
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
ROGERS RAW: Commences Liquidation Proceedings
---------------------------------------------
On Aug. 20, 2014, the shareholder of Rogers Raw Materials Index
Fund, Ltd. resolved to voluntarily liquidate the company's
business.
The company's liquidator is:
Beeland Management Co., LLC
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6365
UBS CAPITAL: Commences Liquidation Proceedings
----------------------------------------------
On Aug. 12, 2014, the sole member of UBS Capital Asia Pacific
Limited resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidators are:
Alex Lawson
Keith Blake
KPMG
P.O. Box 493, Century Yard
Cricket Square
Grand Cayman KY1-1106
Cayman Islands
UBS PW: Creditors' Proofs of Debt Due Oct. 6
--------------------------------------------
The creditors of UBS PW Equity Opportunity Fund, Ltd. are required
to file their proofs of debt by Oct. 6, 2014, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Aug. 19, 2014.
The company's liquidator is:
Matthew Wright
c/o Omar Grant
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
P.O. Box 897 Windward 1
Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
VINTAGE YEAR: Creditors' Proofs of Debt Due Oct. 3
--------------------------------------------------
The creditors of Vintage Year Opportunity - Japan Offices Ltd. are
required to file their proofs of debt by Oct. 3, 2014, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Aug. 20, 2014.
The company's liquidator is:
Jane Fleming
Telephone: (345) 945-2187
Facsimile: (345) 945-2197
P.O. Box 30464 Grand Cayman KY1-1202
Cayman Islands
=================
G U A T E M A L A
=================
* GUATEMALA: Fiscal Deficit Declined in 2013, says IMF
------------------------------------------------------
On September 12, 2014, the Executive Board of the International
Monetary Fund (IMF) concluded the Article IV consultation with
Guatemala.
Key developments since the 2013 Article IV Consultation have been
positive. Growth has returned to potential at around 3.5 percent
and the output gap is closed. Inflation picked up in 2013, but
stayed within the target range and has declined in early 2014. The
current account deficit was virtually unchanged in 2013 at a
relatively low level. Remittances have remained robust, and the
deficit is comfortably financed by stable Foreign Direct
Investment (FDI) and public sector borrowing. Net international
reserves are at comfortable levels, and external competiveness is
broadly adequate.
The results of the 2012 tax reform, which aimed to raise revenues
by 1-1.5 percent of GDP, have been disappointing, yielding only
0.25 percent of GDP in extra collections. These, in turn, were
outweighed by shortfalls not related to the reform.
Notwithstanding the overall revenue shortfall, the fiscal deficit
declined in 2013, amid delays in congressional approval of
International Financial Institutions loans.
Monetary policy has been slightly relaxed. Since November 2013,
the policy rate has been cut 75 basis points to 4.5 percent in the
wake of falling inflation. The exchange rate has remained stable,
with minimal central bank intervention under its rules-based
framework. Credit has risen rapidly, slanted toward foreign
currency loans, though it has recently slowed and Financial Sector
Indicators are solid. Banks have turned to greater reliance on
wholesale external funding but appear profitable, liquid, and
well-capitalized.
Guatemala has made strides toward achieving the Millennium
Development Goals, but poverty and crime are widespread. Extreme
poverty has declined somewhat, primary enrollment has risen, and
maternal mortality has fallen. However, malnutrition of children
younger than 5 years is pervasive at about 50 percent. At the
same time, the informal economy is very large, while security
concerns are very serious.
The macroeconomic outlook remains benign. Growth is expected to
hold to its trend rate of 3.5 percent into the medium term and
inflation to converge toward the center of the central bank's
target range. The external current account deficit will stay
stable and largely financed by FDI. The baseline scenario
envisages a broadly neutral budget stance in 2014 and modest
fiscal expansion through the 2015 election cycle, with measured
consolidation thereafter.
However, downside risks are prevalent. In the near term, risks
related to the normalization of monetary policy in the U.S. are
balanced, with the prospect of higher interest rates likely more
than offset by better export prospects as the U.S. economy
expands. However, extreme bouts of volatility in financial
markets could inflict serious damage. Deeper-than-expected
slowdowns in emerging markets, less favorable-than anticipated-
developments in Europe, and disruptions in commodity markets due
to geopolitical tensions could also hamper Guatemalan growth. The
continued lags in implementing the 2012 tax reform and the
political impasse on the 2015 budget may endanger much needed
government programs. On the other hand, if lower revenues are not
met with spending cuts, fiscal consolidation could be derailed.
For the longer term, insufficient government revenue mobilization
could persist, deterring investment in physical and human capital.
In turn, this could significantly weigh on the country's long-run
growth and social prospects.
Executive Board Assessment
Executive Directors commended Guatemala's sound macroeconomic
policies and welcomed the broadly positive outlook. Directors
noted, however, that poverty and social inequality remain high and
that risks are tilted to the downside. They encouraged the
authorities to accelerate efforts to improve social outcomes and
foster higher, inclusive growth, while continuing to strengthen
macroeconomic management and resilience. Increasing fiscal
revenue will be particularly important.
With the output gap essentially closed, Directors viewed the
current broadly neutral budget stance as appropriate. They
stressed the need to safeguard critical social and investment
spending in the event of financing shortfalls. In this context,
implementation setbacks to the 2012 tax reform should be addressed
through strengthened tax and customs compliance. Directors also
called for congressional passage of a 2015 budget and the timely
approval of multilateral loans. Improved budget execution and
controls would help to stem the accumulation of domestic arrears.
Directors recommended that fiscal sustainability be progressively
strengthened over the medium term in order to improve resilience
and create space for increased priority spending. Achieving a
modest permanent improvement in the primary balance would require
both enhanced revenue mobilization and improvements to public
expenditure management. Directors stressed the need for a
significant effort to raise revenues from their currently low
level in order to step up spending on health, education, security
and infrastructure.
Directors viewed the monetary policy stance as broadly appropriate
given low headline and core inflation. They welcomed the
authorities' intention to remain vigilant and tighten monetary
policy should inflationary pressures re-emerge. Directors advised
strengthening the monetary transmission mechanism and policy
framework by reinforcing the inflation target as the primary
objective of monetary policy, including through a gradual
enhancement of exchange rate flexibility. This could also weaken
the incentive for dollarization and help safeguard foreign
reserves. Directors encouraged efforts to develop domestic debt
and securities markets.
Directors welcomed the significant regulatory and legislative
reforms undertaken to strengthen banking supervision and promote
overall financial stability in response to the previous FSAP.
They encouraged the authorities to follow through on the
recommendations of the 2014 FSAP update, highlighting the
importance of a gradual introduction of Basel III standards, a
further strengthening of consolidated supervision, improved
regulation of off-shore banks, and a further enhancement of the
Anti Money Laundering/Combating the Financing of Terrorism
framework. Directors advised the authorities to consider the
adoption of macroprudential measures to control risks associated
with dollarization.
Directors called for deep structural reforms and greater regional
and global integration to lift Guatemala's growth potential and
enhance social inclusion. Measures should aim to strengthen
competitiveness and improve the business climate, including
security; strengthen governance; and enhance the quality of
education, so as to help reduce poverty and develop a skilled and
productive labor force.
=============
J A M A I C A
=============
DIGICEL GROUP: Buys Majority Stake in Broadcaster Sportsmax
-----------------------------------------------------------
Caribbean360.com reports that Digicel Group Limited has bought
majority stake in the St. Lucia-based International Media Content
ltd. It is the parent company of regional sports broadcaster,
sportsmax, and North American broadcaster CEEN-TV.
The terms of the deal allow the founder and a number of the lead
principals to continue having an ownership stake and be involved
in the day-to-day running of the IMC operation, according to
Caribbean360.com.
SportsMax, available in 23 countries across the Caribbean, is the
region's first and only indigenous 24-hour sports cable channel
featuring a strong mix of international, regional and local sports
content.
"As a complete communications solutions provider, it's all about
ensuring our customers enjoy access to the best multimedia content
on the best devices via the very best network and that we meet all
of their communication, entertainment and networking needs," the
report quoted Digicel Group Chief Executive Officer Colm Delves as
saying.
The acquisition comes on the heels of Digicel's entry into the
cable TV market with recent purchases in Anguilla, Dominica,
Jamaica, Montserrat, Nevis and the Turks and Caicos Islands, the
report notes.
About Digicel Group
Headquartered in Jamaica, Digicel Group Limited provides mobile
telecommunications services in the Caribbean and the Central
American markets. The company's services include rollover
minutes, GPRS data services, prepaid roaming, SMS to e-mail, and
multimedia messaging, as well as broadband.
* * *
As reported in the Troubled Company Reporter-Latin America on May
27, 2014, Fitch Ratings has affirmed the ratings of Digicel Group
Limited (DGL) and its subsidiaries Digicel Limited (DL) and
Digicel International Finance Limited (DIFL), collectively
referred as 'Digicel' as:
DGL
--Long-term Issuer Default Rating (IDR) at 'B' with a Stable
Outlook;
--USD 2 billion 8.25% senior subordinated notes due 2020 at 'B-
/RR5';
--USD 1 billion 7.125% senior unsecured notes due 2022 at 'B-
/RR5'.
DL
--Long-term IDR at 'B' with a Stable Outlook;
--USD 800 million 8.25% senior notes due 2017 at 'B/RR4';
--USD 250 million 7% senior notes due 2020 at 'B/RR4';
--USD 1.3 billion 6% senior notes due 2021 at 'B/RR4'.
DIFL
--Long-term IDR at 'B' with a Stable Outlook;
--Senior secured credit facility at 'B+/RR3'.
NATIONAL INSURANCE: To Woo Informal Sector to Avoid Bankruptcy
--------------------------------------------------------------
Steven Jackson at Jamaica Observer reports that the National
Insurance Scheme (NIS) plans to encourage the informal economy to
pay pension contributions through increased public education and
amalgamating statutory deductions.
Currently self-employed can pay taxes but some avoid submitting
NIS contributions, according to Jamaica Observer.
The report notes that it's the latest measure aimed at steering
the fund from bankruptcy in 20 years, as reported earlier.
"One of our major challenges is the size of the informal economy,"
said Denzil Thorpe, director of Social Security at the Ministry of
Labour in an interview with Jamaica Observer. "Efforts are
currently being made via the amalgamation of statutory deductions
to encourage the formalization of the business practices of the
informal sector as it relates to the submission of statutory
deductions."
"The Ministry is seeking to address the secondary issue of
increasing the awareness of the public of the benefits available
under the NIS in order to encourage voluntary participation,
especially by self-employed persons," Jamaica Observer quoted Mr.
Thorpe as saying.
Jamaica Observer relays that some 40 per cent of the workforce
presently contributes to the fund.
Unfortunately, "our culture" is not one of preparing for the
future, said Mr. Thorpe. So persons generally do not plan for
their retirement, Mr. Thorpe added, notes the report.
"The NIS will soon be embarking on a public education campaign
which will reinforce our ongoing efforts to make the public aware
of the need for them and/or their employers to contribute to the
NIS in order to secure their retirement and other benefits," Mr.
Thorpe said of the campaign set to be launched later this year,
Jamaica Observer relates.
The NIS currently pays out some J$3 billion more annually in
pension benefits than it receives in contributions, Jamaica
Observer notes.
The shortfall is covered by the investment returns from the
National Insurance Fund (NIF), said Mr. Thorpe, Jamaica Observer
discloses.
However, the investment income from the NIF, currently valued at
just over J$69 billion, has been affected by recent changes in
debt policy, which puts greater emphasis on the NIS realigning its
contributions-to-benefits ratio going forward, Jamaica Observer
relays.
One of the ongoing measures to achieve this balance is the raising
of the retirement age of women from 60 to 65 over five years
ending March 2016, Jamaica Observer notes.
"It's a necessary measure to unify the retirement age for females
to that which exists for males," Mr. Thorpe said, Jamaica Observer
notes. "Additionally, life expectancy has increased, and women
continue to have greater life expectancy than men. Increasing the
retirement age is a policy directive that has been taken in
several countries, with some recently moving their retirement age
to 67 or 68 years."
In January 2013, the NIS increased the insurable wage ceiling from
J$1 million to J$1.5 million. The insurable wage ceiling is the
maximum income on which an individual's contribution to the NIS is
calculated, Jamaica Observer relates.
At the same time, the flat rate contribution paid by certain
categories of contributors such as Domestic Workers was raised
from J$50 to J$100 per week, notes Jamaica Observer.
Mr. Thorpe indicates that the NIS is seeking to implement some
other short-term measures in the next fiscal year, while other
medium to long-term initiatives will follow, Jamaica Observer
says.
The InterAmerican Development Bank (IDB) indicated that in 2013 it
contracted actuary firm Eckler to provide the Ministry of Labor
and Social Security an updated actuarial analysis and a roadmap
for strengthening the NIS, Jamaica Observer relates. The report
indicated that the NIS could become bankrupt in 20 years without
adjustments.
But, the ministry is cautioning that there is no need for panic
just yet, Jamaica Observer notes.
"The actuarial report is a management tool which was conducted to
guide the Ministry in reviewing and analyzing the fiscal
sustainability of the NIS", indicated Mr. Thorpe, Jamaica Observer
relates.
The IDB will however, provide technical assistance in an attempt
to steer the scheme towards sustainability, Jamaica Observer
notes. It is part of an approved US$400,000 project entitled
'Technical Support to Improve the Fiscal Sustainability of the
NIS'.
The IDB further explained that the NIS has a very low coverage
rate of 20 per cent of the working age population, and that 27 per
cent of the elderly receive NIS pension benefits, Jamaica Observer
notes. Furthermore, the IDB states that only 40 per cent of those
who should be contributing to the NIS are actually contributing,
reports Jamaica Observer.
The ministry aims to register some 70,370 persons during the
financial year; to disburse NIS benefits totaling J$12 billion for
the financial year; and collect J$337.5 million in arrears from
delinquent employers, according to the Jamaica Estimates and
Expenditure 2014/15, Jamaica Observer says.
The NIS recurrent budget is estimated at J$457 million for this
fiscal year, of which J$300 million relates to compensation of NIS
staff, Jamaica Observer adds.
===========
M E X I C O
===========
MULTICAT MEXICO: S&P Puts B- Rating on Class C Notes on Watch Neg.
------------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B- (sf)' rating on
MultiCat Mexico Ltd.'s series 2012-I class C notes on CreditWatch
with negative implications.
On Sept. 15, 2014, Hurricane Odile made landfall near Cabo San
Lucas in Mexico, which is an area in which the class C notes cover
losses. On Sept. 16, 2014, Swiss Reinsurance Co. Ltd. submitted
an event notice to the calculation agent, AIR Worldwide Corp.
S&P's CreditWatch placement of its rating on the class C notes
reflects that a triggering event may have occurred. Based on the
event definition in the transaction documents, the central
pressure requirement for an event to be considered a triggering
event is equal or lower than 932 millibars. S&P reviewed an
update from the National Hurricane Center that indicated a reading
of 930 millibars at one station located at 22.9N 109.8W., which
would fall within the covered area. In this case, the transaction
documents state that noteholders would lose 50% of their principal
amount.
S&P will resolve the CreditWatch placement once the calculation
agent completes its event report, which should be within 15
business days from the hurricane event parameters date. This date
is either the date the first tropical cyclone report containing
all information necessary to determine if Odile is a covered event
is released, or 120 days after Odile made landfall. If a
triggering event occurred, S&P will lower its rating to 'D (sf)',
and if it did not occur, it will affirm its rating at 'B- (sf)'.
* MEXICO: Inflation to Slow Even as GDP Picks Up, Banxico Says
--------------------------------------------------------------
Eric Martin and Brendan Case at Bloomberg News report that
Mexico's economy will continue to recover without stoking
inflation that's forecast to slow toward the central bank's 3
percent target in 2015, policy makers said.
Banco de Mexico's board was unanimous in its decision to keep the
key interest rate unchanged at a record low 3 percent on Sept. 5,
a move forecast by all 23 economists surveyed by Bloomberg,
according to minutes published on the central bank's website.
Growth is projected to accelerate in the second half of the year
as domestic demand strengthens and the U.S., the biggest buyer of
Mexican exports, rebounds, Bloomberg News relates. The expansion,
which will quicken to as fast as 4.2 percent next year, isn't
pressuring consumer prices, policy makers said, Bloomberg News
says.
"The minutes are a bit hawkish as they discuss the recovery in
economic activity and indicate the balance of risks for inflation
has deteriorated temporarily in the short run, but not in the long
run," Carlos Capistran, the chief Mexico economist at Bank of
America Corp., said in a note to clients, Bloomberg News notes.
Mr. Capistran said he expects the central bank to increase
borrowing costs in the second half of next year following a rate
increase in the U.S., Bloomberg News relates.
Slowing Inflation
According to the report, the central bank will pay particular
attention to the degree of economic slack and Mexico's monetary
posture relative to the U.S. to make future rate decisions, board
members said. The Federal Reserve is scrutinizing data on labor
and prices to gauge whether the recovery in the world's largest
economy is strong enough to withstand higher borrowing rates.
Mexico's central bank forecasts the inflation rate, which climbed
to 4.15 percent in August, will drop to about 4 percent by year
end and near 3 percent in the first half of 2015 as the nation
changes its formula for pricing gasoline and the impact of this
year's tax increases ebbs, Bloomberg News discloses. Banco de
Mexico targets inflation of 3 percent, plus or minus one
percentage point.
"Due to its weak first-quarter performance, the degree of slack in
the economy continues to be greater than what was anticipated a
few months ago, in spite of the recovery in the second quarter of
2014," the central bank said in the minutes released Sept. 19,
notes Bloomberg News.
"Nevertheless, slack is expected to fall gradually in the coming
quarters. Therefore, inflationary pressures have not been
registered from aggregate demand," the central bank said, the
report discloses.
Rate Moves
The central bank's next move will be to raise rates by at least a
quarter point in the third quarter of next year as the U.S.
tightens monetary policy, according to the median forecast of
economists surveyed by Bloomberg.
Gross domestic product expanded 1 percent in the second quarter
from the previous three months, at a 4.2 percent annualized rate
and more than the 0.8 percent median estimate of analysts in a
Bloomberg survey. The economy grew 1.4 percent last year, the
least since the 2009 recession. Economists forecast Mexico's
economy will expand 2.5 percent this year, according to the median
forecast in a Bloomberg survey.
Bloomberg News relates that the government forecasts economic
growth will double in coming years after President Enrique Pena
Nieto broke state-owned Petroleos Mexicanos's production monopoly,
allowing companies such as Exxon Mobil Corp. and Chevron Corp. to
explore for oil. Mexico plans to award the first contracts to
private drillers in May as part of changes Pena Nieto said last
month could bring an extra US$250 billion in foreign investment
and help lift annual growth above 5 percent starting in 2017,
notes Bloomberg News.
The retail industry has shown signs of picking up, with same-store
sales increased 3.7 percent in August, up from 1.2 percent in July
and rebounding from a 0.2 percent decline in June, according to
Antad, a trade group that represents retailers including
Organizacion Soriana SAB, the nation's second-largest supermarket
operator, and El Puerto de Liverpool SAB, Bloomberg News adds.
=================
V E N E Z U E L A
=================
CORPORACION ELECTRICA: S&P Lowers CCR to 'CCC+'; Outlook Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit and senior unsecured debt ratings on Corporacion Electrica
Nacional, S.A. (Corpoelec) to 'CCC+' from 'B-'. The outlook
remains negative. The downgrade on Corpoelec follows the
downgrade its owner, the Bolivarian Republic of Venezuela
(CCC+/Negative/C).
"The ratings on Corpoelec continue to reflect our view that there
is an almost certain likelihood that its owner would provide
timely and sufficient extraordinary support to the company in the
event of financial distress," said Standard & Poor's credit
analyst Maria del Sol Gonzalez. Corpoelec's 'b-' stand-alone
credit profile (SACP) remains unchanged.
"In accordance with our criteria for GREs, our view of an "almost
certain" likelihood of extraordinary support is based on our
assessment of Corpoelec's critical role as the only provider of
electricity services in Venezuela. In our opinion, this provides
a strong economic incentive for the sovereign to support the
company during periods of financial distress. In our assessment,
we also incorporate its integral link with the government given
its full ownership of Corpoelec and its special public status that
we view as an extension of the government," S&P said.
=================
X X X X X X X X X
=================
* BOND PRICING: For the Week From September 15 to Sept. 19, 2014
----------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
BES Finance Ltd 2.9 EUR 211913000
PDVSA 6 11/15/2026 USD 4500000000
ESFG International Ltd 5.8 EUR 52950000
PDVSA 6 5/16/2024 USD 5000000000
PDVSA 5.4 4/12/2027 USD 3000000000
Mongolian Mining Corp 8.9 3/29/2017 USD 600000000
PDVSA 5.5 4/12/2037 USD 1500000000
Hindili Industry 8.6 11/4/2015 USD 380000000
BES Finance Ltd 4.5 EUR 95767000
Automotores Gildemeister SA 8.3 5/24/2021 USD 400000000
SMU SA 7.8 2/8/2020 USD 300000000
NQ Mobile Inc 4 10/15/2018 USD 172500000
Inversiones Alsacia SA 8 8/18/2018 USD 347300000
Venezuela Governement 7.7 4/21/2025 USD 1599817000
Glorious Property Holdings Ltd 13 3/4/2018 USD 400000000
Renhe Commercial 13 3/10/2016 USD 600000000
Bank Austria 1.9 EUR 97608000
China Precisoin 7.3 2/4/2018 HKD 1028000000
BCP Finance Co 2.4 EUR 99063406.25
Automotores Gildemeister SA 6.8 1/15/2023 USD 300000000
BA-CA Finance Cayman 2 Ltd 2 EUR 51481000
Argentina Bonar Bonds 26 9/10/2015 ARS 5424358000
Inversora de Electrica 6.5 9/26/2017 USD 130263886
BCP Finance Co 4.2 EUR 72112000
Mongolian Mining Corp 8.9 3/29/2017 USD 600000000
Argentina Government 4.3 12/31/2033 JPY 5840497000
PDVSA 6 5/16/2024 USD 5000000000
Argentina Boden Bonds 2 9/30/2014 ARS 930445250
PDVSA 6 11/15/2026 USD 4500000000
Greenfields Petroleum Corp 9 5/31/2017 CAD 23750000
Hindili Industry 8.6 11/4/2015 USD 380000000
Argentina Government 4.3 12/31/2033 JPY 2553017000
Argentina Bocon 2 1/3/2016 ARS 1608749924
Argentina Government 0.5 12/31/2038 JPY 21037843000
Automotores Gildemeister SA 8.3 5/24/2021 USD 400000000
Caixa Geral De Depositos Finance 1 EUR 44885000
SMU SA 7.8 USD 300000000
Renhe Commercial 13 3/10/2016 USD 600000000
Caixa Geral De Depositos Finance 2 EUR 65843000
Inversiones Alsacia SA 8 8/18/2018 USD 347300000
Automotores Gildemeister SA 6.8 1/15/2023 USD 300000000
BPI Capital Finance Ltd 2.9 EUR 15290000
Banif Finance Ltd 1.6 EUR 42234000
Banco BPI SA/Cayman Islands 4.2 11/14/2035 EUR 20000000
Empresas La Polar SA 3.8 10/10/2017 CLP 5000000
City of Buenos Aires Argentina 2 1/28/2020 USD 146771000
Aguas Andinas SA 4.2 12/1/2026 CLP 3289471.68
City of Buenos Aires Argentina 2 12/20/2019 USD 113229000
Venezuela Governement 7 3/31/2038 USD 1250003000
Empresa de Transporte 5.5 7/15/2027 CLP 3732799.8
Cia Cervecerias Unidas SA 4 12/1/2024 CLP 1050000
Almendral Telecomunicaciones SA 3.5 12/15/2014 CLP 644441.04
Cia Sud Americana de Vapores SA 6.4 10/1/2022 CLP 607142.76
Decimo Primer 4.5 10/25/2041 USD 37800000
Provincia del Chaco 4 12/4/2026 USD 10111047.85
Ruta de Bosque 6.3 3/15/2021 CLP 5062781.25
Talcan Chillan 2.8 12/15/2019 CLP 2978764.16
EMP Ferrocarriles Estado 6.5 1/1/2026 CLP 788572.14
***********
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 * * *