/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/140924.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, September 24, 2014, Vol. 15, No. 189 Headlines A N T I G U A & B A R B U D A * ANTIGUA & BARBUDA: CBH Accused of Wasting Money on Contractors A R G E N T I N A TELECOM ARGENTINA: Pays Cash Dividend's 2nd Installment for 2013 ARGENTINA: Citibank Says Bond Order Delay to Be Sought B E R M U D A FLY LEASING: S&P Assigns 'BB' Rating to Sr. Unsecured Notes B R A Z I L BRAZIL: Sao Paulo's Luxury Neighborhoods Ignore Recession C A Y M A N I S L A N D S CPIM STRUCTURED 20: Creditors' Proofs of Debt Due Oct. 6 CPIM STRUCTURED 1000: Creditors' Proofs of Debt Due Oct. 6 CPIM STRUCTURED 1500: Creditors' Proofs of Debt Due Oct. 6 EMPIRIC MARKET: Creditors' Proofs of Debt Due Sept. 29 HADAR INVESTMENT: Creditors' Proofs of Debt Due Oct. 6 MARINER SELECT: Creditors' Proofs of Debt Due Sept. 30 MARINER SELECT: Shareholder to Hear Wind-Up Report on Oct. 1 NASPA INVESTMENT: Creditors' Proofs of Debt Due Sept. 29 REHOBOTH HOLDINGS: Creditors' Proofs of Debt Due Oct. 6 STRUCTURED CREDIT 20: Creditors' Proofs of Debt Due Oct. 6 STRUCTURED CREDIT 1000: Creditors' Proofs of Debt Due Oct. 6 STRUCTURED CREDIT 1500: Creditors' Proofs of Debt Due Oct. 6 J A M A I C A DIGICEL GROUP: Sportsmax to Expand Following Acquisition M E X I C O FINANCIERA FINCA: S&P Affirms 'BB-/B' Rating; Outlook Stable P A R A G U A Y * PARAGUAY: To Get US$5MM IDB Loan to Expand Financing for Firms T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: To Get TT$1.8 Billion Government Support TRINIDAD CEMENT: Minority Shareholders Drop Lawsuit - - - - - =============================== A N T I G U A & B A R B U D A =============================== * ANTIGUA & BARBUDA: CBH Accused of Wasting Money on Contractors ---------------------------------------------------------------- The Daily Observer reports that outsourcing contracts to keep the country clean for the past year has wasted millions of dollars, and Health Minister Molwyn Joseph said it is for that reason why the Central Board of Health (CBH) suspended 150 plus contractors a week ago. "In 2013, the budget of CBH would have been about EC$13 million, CBH spent over EC$20 million. That in itself shows a 30 per cent above budget. That kind of performance is not acceptable," The Daily Observer quoted Mr. Joseph as saying. The minister said the suspension of contracts is however, only temporary, according to The Daily Observer. The oral contracts were put on hold on September 12. The report notes that since those contractors hired staff, it meant that about 450 people were put out of work -- at least for a week. But, Mr. Joseph said Cabinet decided those persons, and possibly a few dozen more, would be called upon to work again, under revised terms, the report relays. "It is not only a matter of collecting and disposing of garbage; it has now evolved into beautification of Antigua & Barbuda. So, we have expanded it to what we now refer to as a beautification program," the minister stated, the report relays. Meantime, Prime Minister Gaston Browne has defended the decision to send the workers home, the report notes. Minister Browne accused them of unfair practices to include underpaying their workers, adds the report. Contractors who are rehired would be paid less than the EC$3,000 they earned per week, the report relays. The new figure is not yet known. Minister Browne also said government would put a stop to allowing a contractor to have more than one truck working for the CBH, the report adds. ================= A R G E N T I N A ================= TELECOM ARGENTINA: Pays Cash Dividend's 2nd Installment for 2013 ---------------------------------------------------------------- Telecom Argentina S.A. disclosed that the Board of Directors in its meeting held Sept. 9, with the powers delegated by the General Ordinary Shareholders' Meeting on April 29, 2014, adjourned to May 21, 2014, set the date for the payment of the second installment of the cash dividend of ARS600,878,955.50. The amount to be distributed in the second installment is equivalent to ARS0.62 per outstanding share in circulation or ARS3.10 per ADR, prior to deductions of the Personal Asset Tax and Income Tax obligations. Dividends will not be paid to nor reserved for Treasury shares. For ADR holders, the Record Date is September 19, 2014 and the Payment Date is September 29, 2014. The payment to these shareholders will be made through the Depositary Bank, JP Morgan Chase Bank N.A. For non-ADR holders, the Record Date is also September 19, 2014 and payment will be available as from September 22, 2014. For these shareholders, payment will be made through Caja de Valores S.A. in Argentina. The Company will deduct from the dividend payment the proportionate value of any amount of Personal Asset Tax paid by the Company (pursuant to the unnumbered section following section 25 of Law No. 23,966, as amended) for fiscal year 2013. Deductions of Personal Asset Tax payments will not apply to shareholders who did not own shares or ADRs on December 31, 2013 and to those who have reimbursed the Company the amount related to such tax obligations. As well and if applicable, from the dividend to be paid, Telecom Argentina will deduct 10% of the amount distributed as Income Tax as provided in the last paragraph of Article 90 of Law 20,628 and amendments, incorporated by law 26,893. Due to the time required to determine which non-ADR holders are subject to the referred taxes, the effective date of the dividend distribution through Caja de Valores S.A. will be made within 10 days of the payment date, in accordance with the time period established in Article 90 of the Buenos Aires Stock Exchange Listing Rules. Telecom Argentina is the parent company of a leading telecommunications group in Argentina, where it offers, either itself or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission and Internet services, among other services. Additionally, through a controlled subsidiary, the Telecom Group offers cellular services in Paraguay. The Company commenced operations on November 8, 1990, upon the Argentine government's transfer of the telecommunications system in the northern region of Argentina. Nortel Inversora S.A., which acquired the majority of the Company from the Argentine government, holds 54.74% of Telecom Argentina's issued common stock. Nortel is a holding company whose common stock (approximately 78% of capital stock) is owned by Sofora Telecomunicaciones S.A. Additionally, Nortel capital stock is comprised of preferred shares that are held by minority shareholders. As of September 9, 2014, Telecom Argentina continued to have 984,380,978 shares issued and 969,159,605 shares outstanding. About Telecom Argentina Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone- related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. As reported by the Troubled Company Reporter-Latin America on May 16, 2014, Moody's Latin America Calificadora de Riesgo has assigned a first time Corporate Family Rating of Caa1 on its Global Scale and Ba1.ar on its Argentina National Scale to Telecom Argentina S.A. (Telecom). The outlook is stable. ARGENTINA: Citibank Says Bond Order Delay to Be Sought ------------------------------------------------------ Bob Van Voris and Edvard Pettersson at Bloomberg News report that Citibank NA asked a U.S. judge to allow it to make Sept. 30 payments on Argentine bonds, saying they shouldn't be subject to a 2012 court ruling prohibiting payments on the country's exchange bonds. The company said in a request to U.S. District Judge Thomas Griesa in Manhattan that if he doesn't allow Citibank Argentina to make the payments, it could face civil and criminal liability as well as revocation of its banking license in the South American country, according to Bloomberg News. Bloomberg News notes that Judge Griesa has said Argentina can't pay holders of its performing debt without also paying a group led by Paul Singer's NML Capital that's owed US$1.5 billion on the country's defaulted bonds. Citibank claims the bonds on which it expects to receive the interest payment from Argentina shouldn't be included in the order barring payment, Bloomberg News relates. Citibank said in the filing that bonds issued under Argentina law are different from the "exchange" bonds the country issued to holders of its defaulted debt and for which Bank of New York Mellon Corp. is the trustee, Bloomberg News relates. The judge allowed Citibank to make payments on the Argentine law bonds in June. Judge Griesa set a hearing on the matter for Sept. 26 at 3:00 p.m., according to a court clerk. 'The Gun' Karen Wagner, a lawyer for the company, told a federal appeals court in Manhattan that Citibank will obey Judge Griesa's order if it isn't overturned or changed, subjecting its century-old Argentina branch to threatened criminal and civil penalties under local law, Bloomberg News notes. "We're going to obey, and if we obey, we have a gun to our head and the gun will probably go off," Ms. Wagner told a three-judge appeals panel court Sept. 18, Bloomberg News relays The panel court rejected the appeal the next day, returning the case to Judge Griesa, Bloomberg News says. Argentina's Economy Minister, Axel Kicillof, said in a radio interview that Citibank, a unit of New York-based Citigroup Inc. (C), faces "an enormous mess" if it fails to make the payment to holders of US$8.4 billion of U.S. dollar-denominated Argentine bonds, issued under local law and payable in that country, Bloomberg News notes. "The lawyer for Citibank used a phrase that Citibank has a gun to its head," Minister Kicillof said. "It doesn't have any guns to its head, it has Argentine law to its head because it's an Argentine institution," Minister Kicillof said. The case is NML Capital Ltd. v. Republic of Argentina, 08-cv-6978, U.S. District Court, Southern District of New York (Manhattan). * * * 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 E R M U D A ============= FLY LEASING: S&P Assigns 'BB' Rating to Sr. Unsecured Notes ----------------------------------------------------------- Standard & Poor's Ratings Services said that it has assigned its 'BB' issue-level rating to Fly Leasing Ltd.'s senior unsecured notes, with a recovery rating of '3', indicating S&P's expectation that lenders would receive meaningful (50% to 70%) recovery of principal in the event of a payment default. The company will use proceeds for general corporate purposes. S&P's ratings on Bermuda-based aircraft lessor Fly Leasing reflect its view of the company's position as a mid-tier provider of aircraft operating leases, a substantial portion of encumbered assets, and its complicated ownership structure. Standard & Poor's characterizes the company's business risk profile as "fair," its financial risk profile as "significant," and its liquidity as "adequate" under S&P's criteria. The outlook is stable, reflecting S&P's expectation that Fly's credit metrics will remain relatively consistent, with increased earnings and cash flow offsetting incremental debt to fund the acquisition of aircraft. S&P expects funds from operations (FFO) to debt of about 8% and debt to capital in the mid-70% area. S&P could raise the ratings if aircraft lease rates improved significantly from current levels, due to stronger demand, resulting in FFO/debt increasing to at least 10% for a sustained period. S&P could lower the ratings if lease rates deteriorate or the company adds significant debt, causing FFO/debt to decline to about 5% or lower for a sustained period. RATING LIST Fly Leasing Ltd. Corporate credit rating BB/Stable/-- New Ratings Fly Leasing Ltd. Senior unsecured notes BB Recovery rating 3 =========== B R A Z I L =========== BRAZIL: Sao Paulo's Luxury Neighborhoods Ignore Recession --------------------------------------------------------- Cristiane Lucchesi and Blake Schmidt at Bloomberg News report that Sao Paulo's most expensive real estate got even pricier this year, surging 10 percent as wealthy buyers in search of safe neighborhoods ignored Brazil's recession, according to one of the city's biggest brokerage boutiques. Apartments in high-end communities such as Vila Nova Conceicao are selling for about BRL25,000 (US$10,600) per square meter, said Amir Makansi, partner and chief executive officer at Anglo Americana Consultoria de Imoveis S/C Ltda, which caters to high- net-worth individuals, banks and multinational corporations, according to Bloomberg News. "The market for wealthy individuals is always surprising," Mr. Makansi told Bloomberg News in an interview. One apartment with a view of Ibirapuera, the city's equivalent of New York's Central Park, just sold for BRL14 million to a client who works in the financial markets, according to Mr. Makansi, Bloomberg News relates. That worked out to about BRL32,000 a square meter, which Mr. Makansi said was the highest for a property he's handled, Bloomberg News notes. Residential real estate prices nationwide are rising about a third as fast as in 2011, when developers were offering homes due for completion now, according to economic-research firm Fipe and the real estate website Zap Imoveis, Bloomberg News relays. Short-term investors and some individual buyers are backing away from deals, and that has helped damp price gains, Bloomberg News notes. Prices in 2014 have increased an average 0.64 percent on a month-over-month basis. Three years ago, the average was 2.3 percent for the same period. Bloomberg News discloses that Brazil's economy slipped into recession in the second quarter, contracting 0.6 percent. Slower growth hasn't helped tame inflation, which accelerated to 6.51 percent in August, Bloomberg News notes. "Wealthy individuals don't follow the same logic as the general market," Mr. Makansi said, adding that the rich are able to choose neighborhoods close to work to avoid traffic, and can pay a premium to find properties that meet their specific needs, Bloomberg News notes. Residential properties near Ibirapuera that are also close to Faria Lima, Sao Paulo's financial center, are usually worth the most, Mr. Makansi said, Bloomberg News relays. "New developments in areas such as Vila Nova Conceicao, Jardim Europa and Jardim Luzitanea are very rare, and people that want to move to those areas can pay for the luxury," Mr. Makansi said, adding that Anglo Americana doesn't sell newly constructed properties, Bloomberg News discloses. "That is why prices keep rising," Mr. Makansi added. ========================== C A Y M A N I S L A N D S ========================== CPIM STRUCTURED 20: Creditors' Proofs of Debt Due Oct. 6 -------------------------------------------------------- The creditors of CPIM Structured Credit Fund 20 Inc. 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. 18, 2014. The company's liquidator is: Michael Pearson c/o Trudy-Ann Scott Fund Solution Services Limited Harbour Centre, 2nd Floor 42 North Church Street, George Town Grand Cayman Cayman Islands Telephone: +1 (345) 947 5854 CPIM STRUCTURED 1000: Creditors' Proofs of Debt Due Oct. 6 ---------------------------------------------------------- The creditors of CPIM Structured Credit Fund 1000 Inc. 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. 18, 2014. The company's liquidator is: Michael Pearson c/o Trudy-Ann Scott Fund Solution Services Limited Harbour Centre, 2nd Floor 42 North Church Street, George Town Grand Cayman Cayman Islands Telephone: +1 (345) 947 5854 e-mail: trudyann.scott@fundsolutionservices.com CPIM STRUCTURED 1500: Creditors' Proofs of Debt Due Oct. 6 ---------------------------------------------------------- The creditors of CPIM Structured Credit Fund 1500 Inc. 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. 18, 2014. The company's liquidator is: Michael Pearson c/o Trudy-Ann Scott Fund Solution Services Limited Harbour Centre, 2nd Floor 42 North Church Street, George Town Grand Cayman Cayman Islands Telephone: +1 (345) 947 5854 EMPIRIC MARKET: Creditors' Proofs of Debt Due Sept. 29 ------------------------------------------------------ The creditors of Empiric Market Neutral Offshore Fund, 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. 26, 2014. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street, PO Box 1350 Grand Cayman, KY1-1108 Cayman Islands HADAR INVESTMENT: Creditors' Proofs of Debt Due Oct. 6 ------------------------------------------------------ The creditors of Hadar Investment Advisers 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. 18, 2014. The company's liquidator is: Michael Pearson c/o Trudy-Ann Scott Fund Solution Services Limited Harbour Centre, 2nd Floor 42 North Church Street, George Town Grand Cayman Cayman Islands Telephone: +1 (345) 947 5854 MARINER SELECT: Creditors' Proofs of Debt Due Sept. 30 ------------------------------------------------------ The creditors of Mariner Select Ultra International, Ltd. are required to file their proofs of debt by Sept. 30, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 26, 2014. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands MARINER SELECT: Shareholder to Hear Wind-Up Report on Oct. 1 ------------------------------------------------------------ The sole shareholder of Mariner Select Ultra International, Ltd. will hear on Oct. 1, 2014, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands NASPA INVESTMENT: Creditors' Proofs of Debt Due Sept. 29 -------------------------------------------------------- The creditors of Naspa Investment Company 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. 22, 2014. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands REHOBOTH HOLDINGS: Creditors' Proofs of Debt Due Oct. 6 ------------------------------------------------------- The creditors of Rehoboth Holdings Limited are required to file their proofs of debt by Oct. 6, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 19, 2014. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: 345 949-7128 STRUCTURED CREDIT 20: Creditors' Proofs of Debt Due Oct. 6 ---------------------------------------------------------- The creditors of Structured Credit (General Partner) 20 Inc. 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. 18, 2014. The company's liquidator is: Michael Pearson c/o Trudy-Ann Scott Fund Solution Services Limited Harbour Centre, 2nd Floor 42 North Church Street, George Town Grand Cayman Cayman Islands Telephone: +1 (345) 947 5854 STRUCTURED CREDIT 1000: Creditors' Proofs of Debt Due Oct. 6 ------------------------------------------------------------ The creditors of Structured Credit (General Partner) 1000 Inc 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. 18, 2014. The company's liquidator is: Michael Pearson c/o Trudy-Ann Scott Fund Solution Services Limited Harbour Centre, 2nd Floor 42 North Church Street, George Town Grand Cayman Cayman Islands Telephone: +1 (345) 947 5854 STRUCTURED CREDIT 1500: Creditors' Proofs of Debt Due Oct. 6 ------------------------------------------------------------ The creditors of Structured Credit (General Partner) 1500 Inc. 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. 18, 2014. The company's liquidator is: Michael Pearson c/o Trudy-Ann Scott Fund Solution Services Limited Harbour Centre, 2nd Floor 42 North Church Street, George Town Grand Cayman Cayman Islands Telephone: +1 (345) 947 5854 ============= J A M A I C A ============= DIGICEL GROUP: Sportsmax to Expand Following Acquisition -------------------------------------------------------- RJR News reports that Sportsmax said it will be investing to broaden the media options through which its content is delivered, following the acquisition by Digicel Group Limited of the cable company which provides sports coverage. Sportsman Chief Executive Officer Oliver McIntosh made the announcement. While Mr. McIntosh did not disclose how much will be spent, he explained that "in the coming months," there will be "technical upgrades to our distribution," according to RJR News. Additionally, Mr. McIntosh said the company will "put in place various applications on mobile handsets with sports content, not only data and information, but clips, highlights," notes the report. RJR News relays that Mr. McIntosh declared that the Digicel Group acquisition will help the company to evolve, but added that there will be no job cuts in the immediate future, arising from the changes. To the contrary, Mr. McIntosh said as the company goes through the process of change, "this company will be a bigger company . . . the staff complement will grow," the report adds. 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'. =========== M E X I C O =========== FINANCIERA FINCA: S&P Affirms 'BB-/B' Rating; Outlook Stable ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB-/B' global- scale and 'mxBBB+/mxA-2' Mexican national-scale issuer credit ratings on Financiera Finca S.A. de C.V. SOFOM E.N.R. (FINCA). The outlook remains stable. "Our ratings on FINCA are limited by its single-line business profile, the intense competition in the Mexican microfinance market, and its volatile profitability levels in the first half of 2014," said Standard & Poor's credit analyst Elena Enciso. The company's good capitalization metrics and diversified funding profile support the ratings. FINCA is a microfinance company that grants credit to urban and rural low-income families. Group credits account for approximately 99% of its portfolio. Therefore, in S&P's opinion, FINCA is more vulnerable to economic downturns that could weaken its core business compared with companies with diversified business lines. Additionally, competition in recent years in the microfinance sector is on the rise as new players target FINCA's client pool. The company's lower net interest margin and higher expenses led to a significant decline in FINCA's profitability in 2014. Loan portfolio origination dropped in the first quarter of 2014, and the company marginally reduced its active interest rate amid higher operating expenses. Originations began to improve in April 2014 and S&P expects FINCA to gradually pick up the pace in its income generation. S&P also expects FINCA to maintain monthly loan origination above Mexican peso (MXN) 230 million, and therefore, interest income should begin to improve. As of June 30, 2014, the company reported a 0.06% return on average assets due to the sharp drop in interest income, which is worse than the 4.1% reported a year earlier. Under current market conditions, S&P expects profitability levels to improve in the next 12 months thanks to a growing demand for credit and FINCA's strategies to increase its origination while preserving the quality of its portfolio. However, S&P don't expect profitability ratios to fully recover in the next 18 to 24 months because of FINCA's conservative growth strategy and the competitive market which makes finding and attracting qualified borrowers more difficult. =============== P A R A G U A Y =============== * PARAGUAY: To Get US$5MM IDB Loan to Expand Financing for Firms ---------------------------------------------------------------- The Inter-American Development Bank has approved a US$5 million loan from its Opportunities for the Majority sector to Grupo Internacional de Finanzas SAECA (INTERFISA), the goal of which is to expand access to financing for micro and small businesses that are run or owned by women, mostly at the base of the economic pyramid. The project, known as Access to Rural Financing with a Gender- based NdeVale Approach, will help unbanked Paraguayan women at the base of the pyramid increase access to finance and reduce their vulnerability through loans designed specifically for micro and small businesses in rural areas. "This will be the first financing initiative with a gender-based approach in the country and it is expected to have a major impact," said Christian Schneider, IDB project team leader. The project will aid more than 5,000 micro and small businesses that are run or owned by women who generally do not have access to financing, and also teach them business administration skills. The NdeVale business model consists of a loan tied to the cash flow of each of the clients and to their business cycle. About Opportunities for the Majority Established by the IDB in 2006, Opportunities for the Majority promotes and finances market-based, sustainable business models that bring together private companies, local governments, and communities in developing and supplying quality products and services to people at the base of the socio-economic pyramid in Latin America and the Caribbean. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: To Get TT$1.8 Billion Government Support ------------------------------------------------------------ Ria Taitt at Trinidad Express reports that a meeting of the Standing Finance Committee in the Parliament revealed that Caribbean Airlines Limited will get a total of TT$1.8 billion support from the Government during the period 2013 and 2015. However, Finance Minister Larry Howai stated that the Caribbean Airlines management had informed him that the company expects to break-even in three years time, according to Trinidad Express. The report notes that Mr. Howai said however that government would have to provide funds for CAL in 2015, 2016 and 2017. Opposition Leader Dr. Keith Rowley said CAL received TT$477 million in support in 2013, TT$570 million in 2014 and was estimated to receive TT$718 million, the report discloses. Diego Martin North East MP Colm Imbert later pointed out that in 2015, government was really providing TT$730 million, following the Minister of Finance's disclosure that Government would be allocating an additional TT$11.3 million to Caribbean Airlines to assist it with debt repayment, the report notes. Trinidad Express relates that Dr. Rowley noted that there was a provision for an equity injection of TT$318.3 million in 2014. Dr. Rowley asked "when this injection took place and why was it not made public? How was Government going to deal with this support of TT$2.1 billion to Caribbean Airlines?" The Minister of Finance said a restructuring plan had been put in place which would lead to the gradual reduction of the subsidy over the next three years, the report notes. Mr. Howai said however the airline would not reach a level of sustainability within the next three years, the report discloses. Trinidad Express relays that Minister Howai said a big part of the subsidy arose from two issues "which are endemic to the airline" - the fuel subsidy which was approximately US$50 million and the subsidy to the Tobago airbridge was US$26 million, which totaled approximately US$78 million or TT$400 million. Minister Howai said the airline also incurred a loss on the Venezuela route as a result of the devaluation of the bolivar, the report discloses. "This was further impacted by the fact that you cannot get funds out of Venezuela at this point in time. So the monies to pay for that Venezuela route has been tied up and has further tightened the cash flows of Caribbean Airlines. That figure is US$45 million," the report quoted Mr. Howai as saying. Some losses came from the integration of Air Jamaica, Mr. Howai added. The report notes that Dr. Rowley then asked for a proper breakdown of the TT$730 million. Dr. Rowley said "throwing in the Tobago losses, which was an essential service" could confuse people." Dr. Rowley asked whether the Minister was prepared to state what were the losses on the London route and losses on any other route. Dr. Rowley also asked "what was the basis of the Minister's acceptance of the management's position that the airline would break even in three years when the trend did not support this." Mr. Imbert noted that outside of the Tobago subsidy and the fuel subsidy, TT$320 million was being provided in support to CAL in 2015, the report notes. Mr. Imbert also noted that Government was providing TT$194.7 million to First Citizens Bank for restructuring, the report says. Minister Howai said this was arrears of interest payment, which Government had not paid for the past five years, to the State- owned bank, the report notes. Minister Howai said there was no payment on the principal and government had allocated a further TT$92 million to be paid to FCB in 2015, bringing the total amount to be paid by Government to FCB in 2015 to TT$280 million, the report relates. Both Dr. Rowley and Mr. Imbert also pointed to the decrease in salaries to the Financial Intelligence Agency (FIU), saying that the FIU's workload and increase in surveillance should have warranted an increase in staff, the report discloses. However, Minister Howai pointed out that there was an increase in the contract employment in this agency (from TT$12 million in 2014 to TT$15.9 million in 2015), the report adds. About Caribbean Airlines Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on July 11, 2014, Trinidad and Tobago Newsday said that Caribbean Airlines is facing another loss. However, Finance Minister Larry Howai is hopeful the loss could be narrowed down to less than TT$100 million, according to Trinidad and Tobago Newsday. Mr. Howai noted the airline industry is not the easiest and many airlines have gone bankrupt at some point. Citing Caribbean360.com, the TCRLA on May 20, 2013, said Minister Howai said Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. In 2011, CAL had recorded losses of US43.7 million. TRINIDAD CEMENT: Minority Shareholders Drop Lawsuit --------------------------------------------------- RJR News reports that a lawsuit filed last July by a group of minority shareholders of Caribbean Cement's parent, Trinidad Cement Limited (TCL), to prevent it from holding its annual general meeting, has come to an end. TCL's newly appointed Chairman and other parties involved agreed to discontinue with the action, according to RJR News. The report discloses that the 11 shareholders had argued that their interests were being prejudiced, after the company's former directors refused to include on the proxy their nominees for the Board. When the matter came up for hearing at the Hall of Justice in Port of Spain last week, TCL Chairman Wilfred Espinet, along with all other parties involved, agreed to have the matter discontinued. TCL was ordered to pay legal costs, the report notes. During a special meeting of shareholders on August 19, the new board was voted in. The members include Chris Dehring, a Jamaican company executive who was recently appointed to the board of Jamaica based Caribbean Cement, and is set to become its Chairman. * * * As reported in the Troubled Company Reporter - Latin America on September 4, 2014, the Trinidad and Tobago Newsday said the newly elected board of directors of Trinidad Cement Limited has suspended TCL's Group Chief Executive Officer Dr. Rollin Bertrand, and long-standing director, Alejandro Alberto Ramirez, was appointed as acting CEO. Businessman Wilfred Espinet was appointed chairman of the company. On Aug 25, 2014, the TCRLA said prominent Jamaican businessman Chris Dehring was among seven new members appointed to the Board of TCL, according to the RJR News. Six directors of TCL including, Chairman Andy Bhajan resigned on Aug. 19, minutes before a special meeting by shareholders was due to be held to vote them out, said the report. The shareholders later voted in the new directors. The resignation of the directors, including Chief Executive Officer Dr. Rollin Bertrand came a few hours after Trinidad Cement lost an application in the Court of Appeal in Port of Spain for an injunction to block the meeting. At that time, Mr. Bertrand resigned as a director but maintained his position as chief executive officer. On May 8, 2014, the TCR-LA reported that Fitch Ratings assigned these initial ratings to Trinidad Cement Limited Group (TCL Group): --Foreign currency Issuer Default Rating (IDR) 'B-'; --Local currency IDR 'B-'; --Expected senior secured note issuance of up to USD325 million 'B-/RR4'. Trinidad Cement Limited is a cement company and is the parent company of Caribbean Cement Company Limited. *********** 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 * * *