/raid1/www/Hosts/bankrupt/TCRLA_Public/141029.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, October 29, 2014, Vol. 15, No. 214
Headlines
A N T I G U A & B A R B U D A
ANTIGUA & BARBUDA: Sembcorp Antigua Wants Payment Plan From APUA
EASTERN CARIBBEAN: Shrinking Revenues Led to Losses
A R G E N T I N A
ARGENTINA: Redwood Said to Follow Gramercy in Setting Up Fund
BANCO DE LA PROVINCIA: S&P Affirms 'CCC-' ICR; Outlook Negative
B R A Z I L
BRAZIL: Fitch Still Sees Difficult Corporate Conditions for 2015
CHIQUITA BRANDS: Okays US$681 Million Brazilian Bid
CPFL ENERGIAS: Moody's Affirms Ba2 Global Scale CFR; Outlook Neg.
C A Y M A N I S L A N D S
ARCHER CAPITAL: Commences Liquidation Proceedings
BEAGLE HOLDINGS: Creditors' Proofs of Debt Due Nov. 5
EFP (CAYMAN) I: Creditors' Proofs of Debt Due Nov. 5
EFP (CAYMAN) II: Creditors' Proofs of Debt Due Nov. 5
HB CREDIT: Commences Liquidation Proceedings
KINESIS GLOBAL: Placed Under Voluntary Wind-Up
KUWAIT RESORTS: Creditors' Proofs of Debt Due Nov. 5
LIMMAT SELECT: Commences Liquidation Proceedings
OFFSHORE ASSET: Creditors' Proofs of Debt Due Nov. 5
TOKYO REALTY: Commences Liquidation Proceedings
C O L O M B I A
PACIFIC RUBIALES: Fitch Affirms 'BB+' Issuer Default Ratings
J A M A I C A
* JAMAICA: Oil Price Decline Expected to Continue
P A N A M A
MULTIBANK INC: Fitch Raises LT Issuer Default Rating From BB+
T R I N I D A D & T O B A G O
TRINIDAD & TOBAGO: No Need to Take Any Action on Oil Price Drop
- - - - -
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A N T I G U A & B A R B U D A
===============================
ANTIGUA & BARBUDA: Sembcorp Antigua Wants Payment Plan From APUA
----------------------------------------------------------------
Theresa Gordon at The Daily Observer reports that the Antigua
Public Utilities Authority (APUA) has reduced its debt to Sembcorp
Antigua Water by 9%, but the company is demanding that the
statutory corporation create a firm payment plan in order to
liquidate its debt.
"We are happy that payments have begun and remain hopeful that
APUA will create a firm payment plan so that the debt can be fully
paid, according to agreed timelines," the report quoted SembCorp's
Public Relations and Communications Consultant, Paula Lee, as
saying.
"Reverse Osmosis is very expensive; however we continue to produce
over 65 per cent of the drinking water that is used for commercial
and household activities in Antigua. Notwithstanding our best
efforts, it is becoming increasingly difficult to balance our
finances since expenses steadily rise, while on the other hand,
revenues remain flat," Mr. Lee said, the report notes.
The water company had initially given APUA a six-month deadline to
come up with an effective payment schedule, at the time when the
statutory corporation owed its main water supplier US$7.8 million,
according to The Daily Observer.
In July, Sembcorp increased the volume of water it provides to
APUA, on a daily basis, from 3.1 to 3.8 million imperial gallons,
the report recounts. This was necessary to help alleviate the
water crisis, which is still gripping the country, the report
relates.
The report adds that the increase in water production to the
utility company followed a meeting with Prime Minister Gaston
Browne and officials of both company.
* * *
As reported in the Troubled Company Reporter-Latin America on
September 23, 2014, The Daily Observer said that Antigua & Barbuda
could soon find itself in the company of Japan, Zimbabwe, and
Greece, the countries with the highest national debts.
In the January 2014 budget presentation, the former administration
indicated that the nation's debt was 87 per cent of GDP, according
to The Daily Observer. However, Prime Minister Gaston Browne has
disputed the figure, deeming it to be as high as 130 per cent, the
report noted.
Minister Browne said while his government's increased borrowing is
pushing up the nation's debt-to-GDP ratio, it is necessary to
solve the country's problems, the report related.
EASTERN CARIBBEAN: Shrinking Revenues Led to Losses
---------------------------------------------------
Kyle Christian at The Daily Observer reports that the governor of
the Eastern Caribbean Central Bank (ECCB) said shrinking revenues,
and not wild spending at the institution, was what that led to an
almost EC$18 million net loss in the last financial year.
Speaking publicly about the loss for the first time to members of
the press at a recent IMF conference in Jamaica, Sir K Dwight
Venner said the Central Bank was not spending beyond the limits of
its allocated budget, according to The Daily Observer.
"We have not overspent our budget, but there has been a drop in
revenue of about 30 per cent due to very low returns on Treasury
Bills," the report quoted Sir Dwight as saying.
The economist by training has been the governor of the ECCB since
December 1989.
In late June this year, the Central Bank governor revealed during
the annual presentation on the performance of the Central Bank
that it had lost the millions in the financial year ended March
31, 2014, the report notes.
The report discloses that the bank's profits have been slipping
over the years, falling from a high of EC$37.1 million in profit
in the 2009/2010 financial year. The Bank reported a net loss of
EC$17.97 million 2013/2014 compared to a profit of EC$4.81 million
in the previous year, the report relates.
The report says that Sir Dwight explained that the vast majority
of the Bank's revenue's come from investments in foreign
securities. Sir Dwight said the bank has been investing in US
Government Treasury Bills and bonds over the years because other
nation's securities have additional foreign exchange risk, the
report says.
Sir Dwight said the Central Bank has about EC$130 billion in
reserve funds, the report notes.
=================
A R G E N T I N A
=================
ARGENTINA: Redwood Said to Follow Gramercy in Setting Up Fund
-------------------------------------------------------------
Katia Porzecanski at Bloomberg News reports that Redwood Capital
Management LLC, a US$6.7 billion hedge fund that focuses on
distressed debt, started a fund last week to invest in Argentine
assets, according to a person familiar with the matter.
The US$160 million fund, which can hold the assets of any entity
with the majority of its operations in the South American nation,
was the result of an inquiry by a small group of investors, said
the person, who asked not to be identified because the information
is private, according to Bloomberg News. The Redwood Argentina
Fund started Oct. 20 and is the first fund to specialize in a
specific theme for the Englewood Cliffs, New Jersey-based company,
said the person, Bloomberg News notes.
Bloomberg News says that Redwood joins Gramercy Funds Management
LLC, Owl Creek Asset Management LP and Bienville Capital
Management LLC in recently starting funds that specialize in South
America's second-biggest economy. In July, Argentina defaulted on
its overseas bonds after a U.S. court blocked debt payments until
a group of investors from the nation's previous default in 2001 is
paid in full, Bloomberg News recalls.
The fund is managed by Redwood partners Jonathan Kolatch and Ruben
Kliksberg, the person said, Bloomberg News relays. Steven
Siegler, the company's head of investor relations, declined to
comment.
Mr. Kolatch said at the Ira Sohn conference in May 2012 that his
fund liked Argentina's euro-denominated discount bonds maturing in
2033, Bloomberg News notes. Prices on those securities have
gained 53 percent since his comments.
Gramercy Fund
Last month, Gramercy Funds started its second Distressed Argentina
Fund to meet investor interest, Bloomberg News discloses. The
fund oversees US$175 million and will invest in sovereign and
quasi-sovereign debt, a person familiar with the fund said last
week, Bloomberg News relays.
Despite the default, Argentine assets have returned 17 percent to
investors this year on wagers President Cristina Fernandez de
Kirchner's successor will resolve the legal battle with the
holdouts, led by billionaire Paul Singer's Elliott Management
Corp. Fernandez's second term will end in 2015, Bloomberg News
notes.
"Argentina's problems are solvable," Cullen Thompson, the
president of Bienville, which launched its Argentina fund in July,
said at a conference in New York, Bloomberg News notes.
"Cristina's model has been discredited, and we have the mandate
for change," Mr. Thompson said, Bloomberg News relays.
The Global X MSCI Argentina ETF (ARGT), which has Tenaris SA,
MercadoLibre Inc. and YPF SA as its largest holdings, has gained
0.2 percent this year to US$19.59, Bloomberg News notes.
Bloomberg News says Redwood is part of a group of investors that
includes Perry Capital LLC and Knighthead Capital Management LLC,
which hold Argentina's euro-denominated bonds and have challenged
the U.S. court ruling.
The group also sued Bank of New York Mellon Brussels and Euroclear
Bank SA in Belgium, seeking a permanent order to require the
intermediaries to pass along payments made by Argentina, as well
as a declaration that the order barring them from doing so is
unenforceable, 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.
BANCO DE LA PROVINCIA: S&P Affirms 'CCC-' ICR; Outlook Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC-' global
scale foreign and local currency issuer credit ratings on Banco de
La Provincia de Buenos Aires S.A. (BPBA). The outlook remains
negative.
The issuer credit ratings on BPBA continue to be limited by the
ratings on its owner, the province of Buenos Aires (CCC-
/Negative/--). The stand-alone credit profile (SACP) of BPBA
remains at 'bb-' and reflects the entity's "strong" business
position as one of the largest banks in Argentina, "very weak"
capital and earnings stemming from still weak capital levels
despite improvements, "adequate" risk position with operations
focused on lending activities, "above average" funding given its
role as the paying agent of the province and large deposit base,
and "strong" liquidity. The bank's business position and funding
and liquidity profiles could suffer under a scenario of the
province's extreme financial distress.
S&P continues to view the likelihood of extraordinary support from
the province to the bank as "very high," in accordance with S&P's
criteria for rating the government-related entities. This
likelihood is based on these factors:
-- BPBA's "very important" role in promoting the development of
certain economic segments in the province, including the
bank's role as a fiscal agent to the province and its status
as a significant player in Argentina's financial system; and
-- The "very strong" link between BPBA and the province, given
the bank's ownership structure, under which the province
provides a direct guarantee of the bank's liabilities.
===========
B R A Z I L
===========
BRAZIL: Fitch Still Sees Difficult Corporate Conditions for 2015
----------------------------------------------------------------
President Dilma Rousseff's re-election during Oct. 26's second-
round runoff contest does not change Fitch Ratings' projection of
difficult conditions for Brazilian corporates during 2015.
Systemic problems such as inflation and an overly complex and
inefficient tax system will continue to hurt corporate cash flows.
Domestic demand should remain weak as business and consumer
confidence are not projected to recover significantly. These
challenges, in addition to soft commodity prices, will likely lead
to increasing corporate leverage and a bias toward negative rating
actions during 2015.
Investments that eliminate logistics bottlenecks will be crucial
to accelerating economic growth. The level of state intervention
increased under Rousseff's first term. Clearer signals of reduced
state involvement in the private sector during her second term
would be important to improving business confidence and reviving
investments. Continued progress in attracting private capital for
large infrastructure projects will be a crucial component of
restoring the credit quality of Brazilian corporates beyond 2015.
During 2015, approximately 15% of the 82 Fitch-rated corporates
will likely face a directional rating action. The bias is
anticipated to be strongly negative; downgrades could outpace
upgrades by a ratio of more than 2:1. Corporates in the
electricity sectors, as well as those in the sugar and ethanol
industry, are the most vulnerable to negative rating actions. Iron
ore and pulp producers will face weak external market conditions
due to oversupply, but are not likely to be downgraded, as their
costs positions allow them to continue to generate positive cash
flow. The protein sector stands out as a sector that could have
more positive than negative rating actions. Low grain prices and
growing demand for proteins should continue in 2015; balance
sheets are projected to strengthen due to strong operating
performance.
For most corporates rollover risk is very low in 2015 and cash
balances remain high relative to short-term debt obligations. CSN
('BB+') and Petrobras ('BBB') are the only corporates with cross-
border, capital markets debt falling due in 2015. The cross-border
debt amortization schedule picks up in intensity during 2016 when
bonds mature for Camargo Correa ('BB'), Ceagro ('B'), JBS ('BB'),
Marfrig ('B'), Oi ('BB+'), Petrobras, Sabesp ('BB+'), and Vale
('BBB+').
Default risk will remain high for the sugar and ethanol sector
within Brazil during 2015. All of the corporates rated in this
sector expect Raizen ('BBB') are on Rating Watch Negative. Lenders
will continue to shun these corporates until the government
implements a transparent policy for regularly adjusting local fuel
prices. The most vulnerable S&E companies are Tonon ('B') and USJ
('B+'). Small companies remain susceptible to market sentiment, as
investors seek benchmark size bonds that have secondary market
liquidity. Smaller credits rated in the 'B' category such as
Ceagro and Cimento Tupi ('B') are among the names that will be
under investors' microscopes.
The median net leverage ratio for Brazilian corporates is
projected to increase in 2015 to more than 3.2x from around 3.0x
as of the beginning of 2014. This level of leverage would be below
the peak of 3.4x in 2010, but remains unfavorably versus 2009,
when it was 2.8x. This level of indebtedness is reflective of a
portfolio in which 70% of the credits are in the high yield rating
categories.
Corporate cash flows will not expand materially due to sluggish
revenue growth. The Brazilian consumer is in a foul mood due to
increases in the prices of healthcare, meat, and education by 7%,
12%, and 8%, respectively, during the first nine months of 2014
and stagnant wage growth. Credit to consumers is flowing less
freely and increases in short-term interest rates by nearly 400
basis points since the beginning of 2013 have further acerbated
the situation. Concerns exist that if the macro environment does
not improve unemployment could begin to creep up.
Scaling back capex and controlling costs will be key corporate
initiatives in the absence of growing revenues. Reflecting
depressed consumer, business, and investor confidence, the
aggregate reinvestment ratio of rated Brazilian corporates, which
is defined as capital expenditures relative to depreciation, fell
to 1.6x in 2013 after exceeding 2.0x between 2010 and 2012. This
investment ratio will likely fall to below 1.4x in 2015, which is
more in line with the ratio in slower growth countries like
Mexico. While reducing cash flow pressure in the near term, scaled
back private sector investments could hinder the long-term health
of corporates.
Cost control will be crucial to avoiding downgrades in 2015, as
inflation is likely to remain above 6% and unemployment levels of
5% result in a tight labor market. Energy rationing is an outlying
risk that could accelerate the level of negative rating actions.
Hydro plants' reservoirs are at historically low levels as the
rainy season begins due to the recent drought. Rationing will only
be avoided if rainfall returns to historical levels between
November and April. Replenishing of older reservoirs is expected
to take two to three years. Those constructed in the past decade
have much less capacity and could refill quicker.
The credit-driven economic model pursued by the current
administration is running out of gas. Non-capital markets credit
stayed flat as a percentage of GDP throughout 2014 at 56%, after
growing from 36% to 54% between 2008 and 2012. Family
indebtedness, including mortgage debt, grew significantly from
about 30% in 2007 to about 45% in mid 2014, remaining high as a
potential damper on credit-fueled future consumer spending.
The Brazilian real will likely not weaken enough during 2015 to
improve the profitability of exporters and to act as an import
barrier in unprotected industries. Exporters have lost
competitiveness versus their global peers during the past decade
due to high inflation that has elevated costs. Currency
appreciation has also increased their woes. Companies such as
Vale, which has a competitive advantage globally due to the high
iron content of its ore, and Fibria, which is a low cost producer
of market pulp due to fast growing eucalyptus trees, were able to
maintain their strong business position. In industries such as
steel, Brazilians no longer have a strong presence and now look to
the government to impede imports through tariffs.
CHIQUITA BRANDS: Okays US$681 Million Brazilian Bid
---------------------------------------------------
Associated Press reports that Chiquita Brands International Inc.
has sealed a deal to be acquired by two Brazilian companies for
about US$681 million, with the US-based banana producer expected
to go private by the end of this year or early next.
The deal comes just days after the fresh produce company's
shareholders rejected plans to merge with Fyffes, another major
banana producer, based in Ireland, according to Associated Press.
The report notes that Chiquita Brands, based in Charlotte, North
Carolina, said it will be acquired by the investment firm Safra
Group and the juice company Cutrale Group for US$14.50 per share,
a two per cent premium to its Oct. 24, closing price of US$14.16.
The companies put the transaction's value at about US$1.3 billion,
including the assumption of Chiquita's debt, the report relates.
It said its board unanimously approved the deal.
Once the transaction is complete, Chiquita will become a
subsidiary of the Cutrale-Safra Group. The Cutrale Group said it
already has more than a third of the US$5 billion orange juice
market, and also sells oranges, apples, and lemons, the report
notes.
On Oct. 24, Chiquita and Fyffes PLC gave notice to terminate their
proposed merger agreement after Chiquita's stockholders didn't
approve a revised transaction agreement between the two companies
during a special shareholders meeting, the report relates.
The proposed agreement with Fyffes was an all-stock deal, with the
companies planning to incorporate in Dublin to take advantage of
lower tax rates, the report notes. Chiquita is based in
Charlotte, North Carolina.
Once Chiquita's shareholders rejected the proposed deal with
Fyffes, Chiquita said that it planned to enter talks with Safra
and Cutrale on their competing offer of US$681 million, the report
discloses.
Chiquita had received the bid from the pair last week after
previously rejecting offers from the duo, the report says. The
prior offer from Safra and Cutrale was US$14 per share. They had
bid US$13 per share in August, the report adds.
* * *
The March 17, 2014 edition of The Troubled Company Reporter
reported that Standard & Poor's Ratings Services revised its
rating outlook on Chiquita Brands International Inc. to positive
from stable. At the same time, S&P affirmed the 'B' corporate
credit rating, 'B' senior secured debt rating, and 'CCC+'
unsecured debt rating on the company.
The TCR, on Jan. 30, 2014, reported that Moody's Investors Service
changed the rating outlook for Chiquita Brands International Inc.
to stable from negative while affirming all ratings of the
company, including its B2 Corporate Family Rating (CFR) and B2-PD
Probability of Default Rating (PDR). Moody's also affirmed the
company's SGL-3 liquidity rating. The change in the outlook to
stable reflects Moody's expectation for continued improvement in
Chiquita's credit metrics, which have recently benefitted from
margin improvement largely as a result of cost saving initiatives.
The Aug. 14, 2014, edition of the TCR reported that Moody's
Investors Service views the proposed non-binding all cash bid from
Cutrale Group and Safra Group to acquire Chiquita Brands
International, Inc. favorably but it does not impact Chiquita's B2
CFR or developing outlook.
The TCR, on Oct. 13, 2014, reported that S&P revised its rating
outlook on Chiquita to developing from positive. At the same
time, S&P affirmed its 'B' corporate credit rating on the company.
In addition, S&P affirmed the 'B' rating on the company's senior
secured notes due 2021. The recovery rating remains '3',
indicating S&P's expectation for meaningful (50% to 70%) recovery
in the event of a payment default. S&P also affirmed its 'CCC+'
rating on the company's unsecured convertible senior notes due
2016. The recovery rating remains '6', indicating S&P's
expectation for negligible (0% to 10%) recovery in the event of a
payment default.
CPFL ENERGIAS: Moody's Affirms Ba2 Global Scale CFR; Outlook Neg.
-----------------------------------------------------------------
Moody's America Latina Ltda. downgraded CPFL Energias Renovaveis
S.A. (CPFL Renovaveis) corporate family rating on Brazil's
National Scale to A1.br from Aa3.br. At the same time, Moody's
affirmed CPFL Renovaveis' Global Scale corporate family rating at
Ba2 and changed the outlook to negative from stable.
Ratings Rationale
The downgrade on CPFL Renovaveis' corporate family rating to A1.br
from Aa3.br on the national local scale reflects the company's
weaker than expected cash flow generation over the past eighteen
months and weak consolidated credit metrics for its rating
category.
The negative outlook reflects uncertainties regarding CPFL
Renovaveis' ability to post stronger credit metrics in the short-
to medium term given sizeable planned capital expenditures and the
potential for further losses associated with the current drought
conditions in Brazil which could continue to impact the company's
ability to generate sufficient cash flow to create strong enough
credit metrics to support the current rating.
What Could Move The Ratings Up/Down
In light of the recent rating action an upgrade is unlikely in the
short to medium term. Moody's would consider stabilizing the
negative outlook should the company post stronger credit metrics
so that CFO Pre- WC over debt ratio stays above 10% and interest
coverage becomes higher than 2.5x on a sustainable basis.
Moody's would consider downgrading the company's ratings if CFO --
Pre WC over debt and interest coverage ratios continue to remain
below 5% and 1.7x for an extended period.
CPFL Renovaveis is a holding company with subsidiary interests in
small hydro power plants, biomass and wind farm projects and one
solar power project. The company was formed in August 2011 from
the merger of some of the generation assets (small hydro, wind and
biomass plants) of CPFL Energia (not rated) with the generation
assets of Empresa de Energia Renovaveis (ERSA, not rated).
CPFL Energia controls CPFL Renovaveis with 51.6% of its voting and
total capital. As of October 1, 2014, CPFL Renovaveis had total
installed capacity of 1,772.7 MW, of which 399 MW were small hydro
power plants, 1,002.6 MW wind farms, 370 MW biomass plants and 1.1
MW solar. Currently, power plants under construction total 335.5
MW concentrated in four major wind farm projects and a small hydro
power plant, that are scheduled to come on stream from 2016
through 2018.
In the last twelve months ended June 30, 2014, CPFL Renovaveis
posted net sales of BRL1, 137 million (USD500.1 million), EBITDA
of BRL637.5 million which includes interest income of BRL 77
million (USD280.8 million) and a net loss of BRL108 million (USD
47.6 million).
The principal methodology used in these ratings was the
Unregulated Utilities and Power Companies published in August
2009.
==========================
C A Y M A N I S L A N D S
==========================
ARCHER CAPITAL: Commences Liquidation Proceedings
-------------------------------------------------
On Sept. 5, 2014, the sole shareholder of Archer Capital Offshore
Fund II, 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:
Neil Wiesenberg
Archer Capital Management L.P.
570 Lexington Avenue, 40th Floor
New York
New York 10022
United States of America
Telephone: +1 (212) 319 2775
BEAGLE HOLDINGS: Creditors' Proofs of Debt Due Nov. 5
-----------------------------------------------------
The creditors of Beagle Holdings Limited are required to file
their proofs of debt by Nov. 5, 2014, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 17, 2014.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
EFP (CAYMAN) I: Creditors' Proofs of Debt Due Nov. 5
----------------------------------------------------
The creditors of EFP (Cayman) Funding I Limited are required to
file their proofs of debt by Nov. 5, 2014, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2014.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
EFP (CAYMAN) II: Creditors' Proofs of Debt Due Nov. 5
-----------------------------------------------------
The creditors of EFP (Cayman) Funding II Limited are required to
file their proofs of debt by Nov. 5, 2014, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2014.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
HB CREDIT: Commences Liquidation Proceedings
--------------------------------------------
On Aug. 29, 2014, the sole shareholder of HB Credit & Finance
Limited resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Oct. 27, 2014, will be included in the company's dividend
distribution.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
KINESIS GLOBAL: Placed Under Voluntary Wind-Up
----------------------------------------------
On Sept. 8, 2014, the sole shareholder of Kinesis Global General
Partner Inc resolved to voluntarily wind up the company's
operations.
Only creditors who were able to file their proofs of debt by
Oct. 27, 2014, will be included in the company's dividend
distribution.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
c/o Jo-Anne Maher
Mourant Ozannes
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 814-9255
Facsimile: (345) 949-4647
KUWAIT RESORTS: Creditors' Proofs of Debt Due Nov. 5
----------------------------------------------------
The creditors of Kuwait Resorts Sub-Leasing Limited are required
to file their proofs of debt by Nov. 5, 2014, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 12, 2014.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
LIMMAT SELECT: Commences Liquidation Proceedings
------------------------------------------------
On Aug. 29, 2014, the sole shareholder of Limmat Select Plus
Master 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:
Alternative Investment Solutions Ltd.
10 Market Street, Suite 140 Camana Bay
Grand Cayman KY1-9006
c/o Margaret Thompson
Telephone: +1 (345) 946 2475
OFFSHORE ASSET: Creditors' Proofs of Debt Due Nov. 5
----------------------------------------------------
The creditors of Offshore Asset Holding Vehicle B, Ltd are
required to file their proofs of debt by Nov. 5, 2014, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 15, 2014.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
TOKYO REALTY: Commences Liquidation Proceedings
-----------------------------------------------
On Sept. 18, 2014, the sole shareholder of Tokyo Realty Investment
Company resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Oct. 6, 2014, will be included in the company's dividend
distribution.
The company's liquidator is:
Stephen Nelson
Telephone: (345) 949.4544
Facsimile: (345) 949.8460
Charles Adams Ritchie & Duckworth
P.O. Box 709 122 Mary Street
Grand Cayman KY1-1107
Cayman Islands
===============
C O L O M B I A
===============
PACIFIC RUBIALES: Fitch Affirms 'BB+' Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has affirmed Pacific Rubiales Energy Corp. (Pacific
Rubiales) foreign and local long-term Issuer Default Ratings
(IDRs) at 'BB+'. Fitch has also affirmed its 'BB+' long-term
rating on the company's outstanding senior unsecured debt
issuances of approximately USD4 billion with final maturity in
2019 through and 2025. The Rating Outlook is Stable.
Key Rating Drivers
Pacific Rubiales' ratings are supported by the company's
leadership position as the largest independent oil and gas player
in Colombia and its strong management with recognized expertise in
heavy oil exploration and production. The ratings also reflect the
company's strong liquidity and low leverage. Pacific Rubiales'
credit quality is tempered by the expiration of its main producing
concession as well as the company's small, but growing, scale of
production and relatively small reserve profile. The company also
benefits somewhat from its partnerships with Ecopetrol (IDR rated
'BBB' by Fitch), Colombia's national oil and gas company, which
supports Pacific Rubiales' investments and shares production
Solid Financial Profile
The ratings reflect the company's adequate financial profile,
characterized by low leverage and strong interest and debt service
coverage. The company reported leverage ratios, as measured by
total net debt/EBITDA and total debt/total proved reserves of 1.4x
and USD11 per barrels of oil equivalent (boe), respectively, as of
the latest 12 months (LTM) ended June 30, 2014. Debt of
approximately USD4.3 billion was primarily composed of senior
unsecured notes due between 2019 and 2025. Pacific Rubiales
reported EBITDA of USD2.7 billion as of the LTM ended June 30,
2014.
Piriri-Rubiales Concession Expires in 2016
Although Pacific Rubiales' production and reserves profile has
significantly improved in recent years, the expiration of the
Piriri-Rubiales production agreement in 2016 is expected to have a
significant impact on the company's financial results. As a
result, Fitch expects Pacific Rubiales' production level for 2017
to be in line or below current production. This field currently
represents approximately 43% of total net production, down from
75% in 2010. The rating does not incorporate the possibility of
extending production from this field past its expiration date.
Adequate Operating Metrics
The operating metrics for the company have been improving rapidly
and its growth strategy is considered somewhat aggressive. During
2013, the company's reserve replacement ratio was 314% and its
current 2P reserve life index is approximately 13 years using
current production levels; proved (1P) reserve life stood at
approximately 8.3 years during 2013. During the past two years the
company increased gross and net production to approximately
320,078 boe per day and 149,118 boed from approximately 235,796
boed and 92,611 boed as of June 2012, respectively. As of December
2013, Pacific Rubiales' 1P and 2P reserves, net of royalties,
amounted to approximately 394 million and 619 million boe,
respectively.
Capex to Pressure Free Cash Flow (FCF)
FCF (net CFFO less capex and dividends) has been negative given
the company's growth strategy. Pacific Rubiales' significant capex
plans over the next few years could continue to pressure FCF in
the near term. Increasing production at Piriri-Rubiales'
surrounding Quifa and nearby CPE-6 blocks is expected to account
for the bulk of the company's capex, which is expected to be
approximately USD2.5 billion per year. By 2017, after the
expiration of the Piriri-Rubiales concession, leverage is expected
to be approximately 2x, using Fitch price deck. FCF has also being
pressured by the company's dividend policy and more recently due
to an equity repurchase program. The company would likely have to
issue additional debt if it increases its dividend policy or
repurchase the full amount allowed under its equity repurchase
program, under which case its capital structure could deteriorate
and put downward pressure on the company's credit quality.
Strong Liquidity Position
The company's current liquidity position is considered strong,
characterized by strong cash flow generation and manageable short-
term debt obligations. As of June 30, 2014, cash on hand amounted
to approximately USD427 million, while short-term debt was USD455
million. The company also has committed credit facilities totaling
USD1 billion and as of June 30, 2014, it had drawn down
approximately USD100 million. The bulk of the company's current
debt is composed of four debt issuance with bullet maturities
ranging from USD750 million through USD1.3 billion and due in
2019, 2021, 2023 and 2025.
RATING SENSITIVITIES
A negative rating action would be triggered by any combination of
the following events: A sustained adjusted leverage above 2x,
driven by an increase in debt for exploration combined with a low
success rate of discoveries; an increase in the company's
dividends and/or equity repurchase programs and/or a decline in
production and reserves. Pacific Rubiales ratings could also be
pressured if the company fails to increase production in order to
replace the significant contribution of the Piriri-Rubiales field
by the time the concession expires.
Although a positive rating action is unlikely in the medium term
given the current developing risks associated with the company,
factors that could result in a positive rating action include an
increased diversification of the production profile of the
company, consistent growth of both production and reserves,
positive FCF generation while maintaining financial leverage below
2x.
=============
J A M A I C A
=============
* JAMAICA: Oil Price Decline Expected to Continue
-------------------------------------------------
RJR News reports that lower fuel prices are on the horizon as the
cost of oil continues to decline.
Brent crude futures fell below US$86 a barrel on Oct. 27, after
Goldman Sachs cut its price forecasts for U.S. oil in the first
quarter of next year by US$15, according to RJR News.
The American investment bank, in a research note on Oct. 26, cut
its forecast for West Texas Intermediate to US$75 per barrel, from
US$90, and Brent to US$85, from US$100, with rising production in
non-OPEC countries outside North America expected to outstrip
demand, the report discloses
The bank expects Brent to hit US$80 in the second quarter of 2015,
when it expects oversupply to be most pronounced, the report adds.
===========
P A N A M A
===========
MULTIBANK INC: Fitch Raises LT Issuer Default Rating From BB+
-------------------------------------------------------------
Fitch Ratings has upgraded Multibank Inc.'s (MB) ratings as
follows:
-- Viability Rating (VR) to 'bbb-' from 'bb+';
-- Long-term Issuer Default Rating (IDR) to 'BBB-' from 'BB+';
-- National long-term rating to 'AA' from 'AA-';
-- Short-term IDR to 'F3' from 'B'.
The Rating Outlook is Stable.
Key Rating Drivers - VR, IDRS and National Ratings
MB's VR drives its long-term IDR and national scale ratings. The
bank's VR has been upgraded in light of MB's coherent strategy,
improved capital position, improved market risk management,
consistently high asset quality and track record of profitability.
The bank has successfully executed a long-term strategy, adopted
since 2005, to improve its franchise and diversify its revenue
generation. The bank has emerged as a key player in the middle
market and retail segments with a market share of 3.8% of general
license banks' unconsolidated assets, having greatly expanded its
commercial presence and deposit base while maintaining sound asset
quality.
The bank's capital position has improved. Fitch core capital
increased from 10.2% at year-end (YE) 2013 to 10.9% at June 2014.
Tangible common equity increased from 7.1% to 7.4% during the same
period. The bank's capital position benefits from a reduction in
MB's securities' revaluation loss as well as a $40 million
issuance of common shares in 2013. The bank's lower rate of asset
growth, which has declined to a sustainable level in line with the
rate of MB's internal capital generation, also benefits the bank's
capital in the near and medium terms.
MB has reduced its exposure to market risk, having partially
recovered a $32.9 million unrealized loss in the revaluation of
its portfolio of available for sale securities in 2013. The bank
has tightened stop-loss and management action triggers and
reinforced monitoring systems of the bank's sensitivity to
interest rate volatility.
MB's asset quality has been robust. Loans past due by 90 days
decreased to 0.8% at June 2014, comparing favourably with the
Panamanian national banking sector average of 1.6%. The bank's
reserves represent 1.5% of gross loans and cover impaired loans by
more than 200% at June 2014. MB has also well diversified
portfolio with minor levels of concentration and related party
lending.
The bank's financial performance has been stable, underpinned by
healthy growth, resilient margins, high asset quality and
controlled operating costs. ROAA has consistently ranged between
1.4% and 1.7% since 2009. The decline in the bank's rate of annual
loan growth (14.4% for the 12 months ending June 2014 compared to
a peak of 29.4% at YE2012) puts MB is in a better position to
benefit from the investments in its network's expansion to date.
Key Rating Drivers - Support Rating And Support Rating Floor
The banks' Support Rating (SR) of '5' and Support Rating Floor
(SRF) of 'NF' reflect Fitch's expectation of no support. As a
longstanding dollarized economy, Panama lacks a lender of last
resort, though Banco Nacional de Panama, the largest state
controlled bank, could provide temporary liquidity loans.
Rating Sensitivities - VR, IDRs And National Ratings
Currently, there is limited upside potential for MB's ratings.
Further strengthening of its business model and franchise, which
may allow the bank to preserve a sound balance between asset and
funding growth; as well as improvement in its profitability and
current capital levels in a sustained manner, may positively
influence its ratings.
MB's ratings could be downgraded in the event of a severe
deterioration in asset quality or a decline in its financial
performance, resulting in a sustained decrease in the bank's ratio
of tangible common equity to tangible assets to below 7.1%, or a
sustained decrease in the Fitch Core Capital ratio to below 10%.
Fitch has taken the following rating actions:
Multibank, Inc.
-- Long-term IDR upgraded to 'BBB-' from 'BB+'; Outlook Stable;
-- National long-term rating upgraded to 'AA' from 'AA-'; Outlook
Stable;
-- National short-term rating affirmed at 'F1+';
-- Short-term IDR upgraded to 'F3' from 'B';
-- Viability Rating upgraded to 'bbb-' from 'bb+';
-- Support Rating affirmed at '5';
-- Support floor affirmed at 'NF'.
================================
T R I N I D A D & T O B A G O
================================
TRINIDAD & TOBAGO: No Need to Take Any Action on Oil Price Drop
----------------------------------------------------------------
Trinidad Express reports that Trinidad and Tobago Finance Minister
Larry Howai is standing by his position that there is no reason
for government to take any action despite the price of oil briefly
dropping below US$80 per barrel on Oct 26.
"There is no need to do anything if the drop is temporary and is
marginally below the US$80 budgeted," Minister Howai told the
Express by e-mail.
"Although the price of oil is an important variable in the budget,
please remember that we derive more revenue from gas than from
oil," Minister Howai added, the report relays.
The Minister Howai assured that government will continue to
monitor the situation, the report discloses.
"We shall maintain a close watch on how matters progress over the
coming month in the lead up to the OPEC (Organization of the
Petroleum Exporting Countries) meeting on November 27, and will
then make more long term decisions based on how that turns out,"
Minister Howai said, the report notes.
US oil prices settled modestly on Oct. 26, after touching a 28-
month low earlier after Goldman Sachs slashed its price forecasts
amid further signs of lack lustre demand and booming supply, the
report discloses.
The report relays that the US investment bank cut its forecast for
Brent to US$85 a barrel from US$100 for the first quarter of 2015
and reduced its projection for US crude to US$75 from US$90,
making it the most bearish bank on Wall Street.
US crude for December settled 1 cent lower at US$81.00 per barrel,
having earlier touched a low of US$79.44, its lowest level since
June 2012, the report notes.
Natural gas futures for delivery in November natural gas was down
three cents to US$3.60 per 1 million BTU, the report adds.
***********
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
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liabilities that may never materialize. The prices at which
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than a balance sheet solvency test.
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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
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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
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