TCRLA_Public/141031.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

            Friday, October 31, 2014, Vol. 15, No. 216


A N T I G U A  &  B A R B U D A

LIAT: Plans to Retrench Staff Amid Financial Struggle


MENDES JUNIOR: Fitch Lowers IDR to 'B' & Puts Rating on Watch Neg.
OGX PETROLEO: Restructuring Should be Complete by April

C A Y M A N  I S L A N D S

ARCO HOLDINGS: Placed Under Voluntarily Wind-Up
CAPULA INVESTMENTS: Placed Under Voluntarily Wind-Up
CRIS82 LIMITED: Placed Under Voluntarily Wind-Up
DYMON ASIA: Commences Liquidation Proceedings
EDGEWATER RE: Placed Under Voluntarily Wind-Up

FORTUNE CREATION: Creditors' Proofs of Debt Due Nov. 17
FR BRAND: Commences Liquidation Proceedings
FR BRAND MANAGEMENT: Commences Liquidation Proceedings
INTERNATIONAL AVIATION: Commences Liquidation Proceedings
JUMP START: Members Receive Wind-Up Report

E L   S A L V A D O R

EL SALVADOR: IMF Expects 2 to 2.25% Growth Increase in 2014, 2015


NATIONAL COMMERCIAL BANK: IDT Awards Clerical Workers 17% Pay Rise
* JAMAICA: Big Jump for Country on "Ease of Doing Business" List

P U E R T O    R I C O

PUERTO RICO: May Raise Petroleum Tax to Back US$2.9BB of Debt

T R I N I D A D  &  T O B A G O

COLONIAL LIFE: Barbados Gov't. Plans Bailout
TRINIDAD AND TOBAGO: Gas Output Declines

                            - - - - -

A N T I G U A  &  B A R B U D A

LIAT: Plans to Retrench Staff Amid Financial Struggle
The Daily Observer reports that twenty per cent of the 600 to 800
workers employed by LIAT, operating as Leeward Islands Air
Transport, could lose their jobs, if the airline goes ahead with a
plan aimed at pulling the struggling company out of the financial

Last week, LIAT Chief Executive Officer David Evans conferenced
with the labor unions representing LIAT workers to lay out the
airline's plan, according to The Daily Observer.

The report notes that during the call, the airline suggested it
would retrench the workers.  It was not made clear, however, which
departments would be affected or what employees would be let go,
the report relates

In a release, LIAT explained that it was about to put together its
operational plan for the New Year, the report says.

"As a result of the airline's fleet transition program, LIAT will
be a smaller airline in 2015 than in 2014, operating a fleet of
nine aircraft as opposed to 11 in 2014," the release stated, the
report discloses.

The airline's public statement quotes Mr. Evans saying, as a
responsible business, LIAT had to "examine our cost base" and that
if it flew fewer aircraft in 2015, it would have to reduce cost,
notes the report.

However, the airline did not directly address the lay-off claims,
the report says.  The release only stated that LIAT had been
mandated by its board of directors to ensure that its costs
reflect the level of activity carried out, the report discloses.

"It is too early to say what impact there may be on jobs as a
result of this and the company will consult with its staff and
their representatives over its plans before making any
announcement," the statement read, the report relays.

President of the Leeward Islands Airline Pilots Association
(LIALPA) Patterson Thompson said if LIAT's plan was to reduce the
number of aircraft, it suggested to him that pilots would be laid
off, the report notes.

"I can't speak as to the number of pilots going home yet," Mr.
Thompson said told Observer.  "I don't think the company has a
stringent timeline as to when these things are to happen."

                          About LIAT

LIAT, operating as Leeward Islands Air Transport, is an airline
headquartered on the grounds of V. C. Bird International Airport
in Antigua.  It operates high-frequency inter-island scheduled
services serving 21 destinations in the Caribbean.  The airline's
main base is VC Bird International Airport, Antigua and Barbuda,
with bases at Grantley Adams International Airport, Barbados and
Piarco International Airport, Trinidad and Tobago.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 10, 2014, said that Leeward Islands Air
Transport (LIAT) said it will take "decisive action" to deal with
unprofitable routes as the Antigua-based airline seeks to make its
operations financially variable.

On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday,
reported that there's much upheaval at the highest levels of LIAT
-- the Board and the Executive. Following the sudden resignation
of Chief Executive Officer Captain Ian Brunton, comes the news
from highly reliable sources that long time chairman Jean Holder
is all set to follow.

David Evans replaced Mr. Brunton as chief executive officer.


MENDES JUNIOR: Fitch Lowers IDR to 'B' & Puts Rating on Watch Neg.
Fitch Ratings has downgraded Mendes Junior Trading e Engenharia
S.A.'s (MJTE) foreign and local currency Issuer Default Ratings
(IDR) to 'B' from 'B+' and its national scale rating to 'BBB(bra)'
from 'BBB+(bra)'.  Fitch also placed the ratings on Negative


The downgrade reflects the weaker than expected performance of
MJTE in the first half of 2014, with no expectation of a recovery
in line with Fitch's initial projections for year end.  MJTE is
facing a deterioration of its business margins and operational
cash flow generation due to high volumes of claims that are still
under discussion with clients.  Claims are potential revenues the
company asks for the client after providing project amendments.

This scenario exacerbated the company's historical low liquidity
position and adds to refinancing risks as debt maturity remains
concentrated in the short-term.  MJTE accounts all the costs
related to claims when they occurred but recognizes revenues only
when the client signs an agreement.  As discussions on the value
owed takes time, claims tend to be erratic in time and magnitude,
besides pressuring cash flow.

The Rating Watch Negative embraces the challenge that MJTE has
over the next three months in reducing refinancing risks through
lengthening of its short-term debt, collecting pending claims and
improving its operational performance.  Fitch believes MJTE's
liquidity is tight to support the ongoing operations and the
current debt.

In its favor, MJTE has a long expertise in executing complex
projects on time and two years of operations sustained by the
backlog.  Additionally, the urgent demand for infrastructure in
Brazil should help the company to replace backlog through the next

Higher Refinancing Risk

Refinancing risks have increased in the first half of 2014 above
Fitch's expectations.  As of the LTM ended June 30, 2014, the
company's cash balance of BRL50 million was equivalent to 27% of
its short term debt of BRL189 million, under Fitch's metrics.
This unfavorably compares to the already tight 50% cash coverage
of Dec. 2013 and 2012.  The company has the challenge to refinance
its short term debt, while it develops its operations.  MJTE's
financial flexibility is further reduced as the company has BRL32
million of restricted cash and its ability of accessing capital
market is uncertain.

Deteriorated Credit Metrics

Fitch expects MJTE net leverage to be around 2.5x in 2014.  As per
June 2014, the company's total leverage, measured by total debt
over EBITDA increased to 5.9x from 1.8x in Dec. 2013, under
Fitch's metrics.  As for the net leverage, the indicator increased
to 4.8x from 1.2x in the same period.  On top of the net debt
increase to BRL220 million from BRL205 million, LTM EBITDA plunged
to BRL46 million from BRL167 million in 2013.

Negative FCF

Free cash flow (FCF) should remain negative in the next years.  As
of the LTM ended June 30, 2014, the company's FFO was negative in
BRL58 million pressured by non-received claims.  CFFO over the LTM
reached a positive BRL75 million, aided by working capital inflows
of BRL133 million.  CFFO was not enough to cover capex of BRL40
million and dividends of BRL45 million, leading to a negative FCF
of BRL11 million.

Margins Expected to Partially Recover

Fitch expects MJTE's EBITDA margins of 6.5% in 2014 and 8% in
2015.  The company reported an EBITDA margin of 2.5% over the LTM
ended on June 2014, which unfavorably compares to 9.5% in 2013 and
8.8% in 2012.  The EBITDA margin has been pressured by a slowdown
in the work volume and non-received claims.  Going forward, the
agency understands the company will receive some of its claims and
reaccelerate operating results with the works on the Sao Paulo
subway project.

Concentrated Backlog

MJTE's backlog was moderate, totaling BRL3.4 billion, equivalent
to 1.7 years of operations in June 2014.  It has recovered to
BRL5.4 billion in September 2014 after the company signed a BRL2.1
billion contract with the Sao Paulo subway.  As a comparison, the
backlog was BRL5 billion in Dec. 2013.  As of June 2014, the
backlog was composed of 89% of governmental clients and stated-
owned companies, while the 10 largest projects represented 80% of
the firmed contract portfolio.  Fitch expects the company to
moderately improve its backlog geographic diversification over the
next two to three years, considering the company's strategy to
operate abroad.


In the short-term, a negative rating action should occur if the
company fails to reduce refinancing risks.  In the medium-term, a
downgrade may be driven by a deterioration in operating
performance evidenced by prolonged margin reduction, increased net
leverage to ratios higher than 2.5x with the debt maturity profile
concentrated in the short term, or further support to affiliates,
may lead to a negative rating action.

A positive rating action is not likely in the short term.  In the
medium term, it will depend on the company' capacity to achieve
EBITDA margins around 9%, sustainably and consistent with its
peers, coupled with significant improvements on liquidity levels,
diversification of its backlog, and implementation of a robust
structure for ring-fencing the transfer of resources to

OGX PETROLEO: Restructuring Should be Complete by April
Jeb Blount and Marta Nogueira at Reuters report that the
restructuring of OGX Petroleo e Gas Participacoes S.A., now known
as Oleo e Gas, should be complete by April, the company's chief
executive told reporters in a wide-ranging interview.

Oleo e Gas should be folded into a new OGX within six months,
Chief Executive Officer Paulo Narcelio told reporters at company
headquarters in Rio de Janeiro, according to Reuters.

The report notes that the company is in the process of registering
the new OGX to trade in New York as American Depository Receipts.

The report relates that current shareholders and creditors of Oleo
e Gas and creditors will fold their holdings into that company
which will be controlled by investors who put up new money after
the filing, the so-called DIP lenders, to keep Oleo e Gas

The DIP lenders will own 65 percent of the new OGX, pre-bankruptcy
creditors 25 percent and pre-bankruptcy shareholders 10 percent,
with about 5 percent, or half the original shareholders amount,
belonging to Brazilian tycoon Eike Batista, the report discloses.

"We will emerge from this as one of the biggest independent oil
companies in Brazil," the report quoted Mr. Narcelio as saying.
"It will be almost debt free and will be a producing oil company."

Final emergence from bankruptcy protection and the supervision of
a judge will likely take until September, Mr. Narcelio added, the
report relays.  During part of the next six months, both the new
OGX and Oleo e Gas shares will likely trade side by side, Reuters

The report discloses that Mr. Narcelio also said he expects the
company to restart oil output at the company's Tubarao Azul oil
field by April and that it should be capable of producing 2,900 to
3,000 barrels of oil a day.

Peak production of 25,000 to 30,000 barrels of oil a day at the
company's other producing oil field, Tubarao Martelo should happen
some time in 2016 after the company drills 6 more production wells
and three injection wells, Mr. Narcelio added, the report notes.

Securing the budget of US$200 million to US$500 million to drill
those wells and other activities in the company's expansion plans
will have to await the completion of the restructuring and the
appointment of a new board and executives, Mr. Narcelio said, the
report adds.

                      About OGX Petroleo

Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participacoes
S.A., now known as Oleo e Gas, is an independent exploration and
production company with operations in Latin America.

OGX filed for bankruptcy in a business tribunal in Rio de Janeiro
on Oct. 30, 2013, case number 0377620-56.2013.8.19.0001.  The
bankruptcy filing puts US$3.6 billion of dollar bonds into default
in the largest corporate debt debacle on record in Latin America.
The filing by the oil company that transformed Eike Batista into
Brazil's richest man followed a 16-month decline that wiped out
more than US$30 billion of his personal fortune.

The filing, which in Brazil is called a judicial recovery, follows
months of negotiations to restructure the dollar bonds, in which
OGX sought to convert debt to equity and secure as much as US$500
million in new funds.  OGX said Oct. 29, 2013 that the talks
concluded without an agreement.

C A Y M A N  I S L A N D S

ARCO HOLDINGS: Placed Under Voluntarily Wind-Up
On Sept. 18, 2014, the members of Arco Holdings Fund Ltd. 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

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

CAPULA INVESTMENTS: Placed Under Voluntarily Wind-Up
On Sept. 4, 2014, the shareholder of Capula Investments Limited
(2010) 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

The company's liquidator is:

          Ogier Fiduciary Services (Cayman) Limited
          c/o Jonathan Roney
          Telephone: (345) 949 9876
          Facsimile: (345) 949-9877
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands

CRIS82 LIMITED: Placed Under Voluntarily Wind-Up
On Sept. 23, 2014, the shareholders of CRIS82 Limited resolved to
voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Oct. 29, 2014, will be included in the company's dividend

The company's liquidator is:

          Buchanan Limited
          c/o Allison Kelly
          Telephone: (345) 949-0355
          Facsimile: (345)949-0360
          P.O. Box 1170, George Town
          Grand Cayman KY1-1102
          Cayman Islands

DYMON ASIA: Commences Liquidation Proceedings
On Sept. 22, 2014, the shareholders of Dymon Asia Special
Opportunities Fund resolved to voluntarily liquidate the company's

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Keng Soon Tan
          48 Bodmin Drive
          Singapore 559647

EDGEWATER RE: Placed Under Voluntarily Wind-Up
On Aug. 22, 2014, the shareholder of Edgewater RE, SPC resolved to
voluntarily wind up the company's operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          RSM Cayman Ltd.
          c/o Ian Lomas
          Harbour Place, 2nd Floor
          George Town
          PO Box 10311 Grand Cayman KY1-1003
          Cayman Islands
          Telephone: (345) 743 3016

FORTUNE CREATION: Creditors' Proofs of Debt Due Nov. 17
The creditors of Fortune Creation Limited are required to file
their proofs of debt by Nov. 17, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 19, 2014.

The company's liquidator is:

          Lion International Management Limited
          Craigmuir Chambers
          P.O. Box 71 Road Town
          Tortola VG 1110
          British Virgin Islands
          c/o Mr. Philip C Pedro
          HSBC International Trustee Limited
          Compass Point 9 Bermudiana Road
          Hamilton HM 11
          Telephone: (441) 299-6482
          Facsimile: (441) 299-6526

FR BRAND: Commences Liquidation Proceedings
On Sept. 22, 2014, the shareholder of FR Brand 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 liquidator is:

          Alan G. Schwartz
          c/o First Reserve Corporation
          One Lafayette Place, Third Floor
          Greenwich, Connecticut 06830
          Telephone: +1 (345) 914 6365

FR BRAND MANAGEMENT: Commences Liquidation Proceedings
On Sept. 22, 2014, the shareholder of FR Brand Management GP, 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:

          Alan G. Schwartz
          c/o First Reserve Corporation
          One Lafayette Place, Third Floor
          Greenwich, Connecticut 06830
          Telephone: +1 (345) 914 6365

INTERNATIONAL AVIATION: Commences Liquidation Proceedings
On Sept. 17, 2014, the sole shareholder of International Aviation
Management (CI) 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:

          Edel Andersen
          Roger Priaulx
          Telephone: (345) 815 8532
          Facsimile: (345) 945 3470
          c/o Genesis Trust & Corporate Services Ltd.
          P.O. Box 448 Midtown Plaza
          Elgin Avenue, George Town
          Grand Cayman KY1-1106
          Cayman Islands

JUMP START: Members Receive Wind-Up Report
The members of Jump Start Limited received on Oct. 29, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Buchanan Limited
          P.O. Box 1170 George Town
          Grand Cayman
          Cayman Islands KY1-1102

E L   S A L V A D O R

EL SALVADOR: IMF Expects 2 to 2.25% Growth Increase in 2014, 2015
An International Monetary Fund (IMF) mission, headed by Uma
Ramakrishnan, visited San Salvador during October 14-28 to conduct
the country's 2014 Article IV consultation.  At the end of the
discussions, which included talks with senior officials from the
government's economic team, members of congress and
representatives of the private sector, Ms. Ramakrishnan issued the
following statement in San Salvador:

"A broad social and political consensus has emerged in El Salvador
to strengthen economic growth, address fiscal imbalances, and
deepen efforts to support the poor.  To achieve these goals and
build on the progress made by the government, the authorities
agree that policy priorities are to: (i) address the growing
macroeconomic vulnerabilities; (ii) create an environment for
higher private-sector led growth; (iii) restore fiscal and debt
sustainability while protecting social spending; and (iv) improve
the financial sector's institutional framework.

"El Salvador's GDP growth has been sluggish for the last 15 years
due to structural weaknesses. The weak external environment since
the 2008/09 global crisis has exacerbated the problem.  The
current account deficit widened in recent years and the fiscal
deficit has remained at around 4 percent of GDP since 2010, with
pension-related spending accounting for about 2 percent of GDP.
Public debt rose to 58 percent of GDP in 2013, largely due to the
increase in pension-related debt which amounted to 11 percent of

"Reflecting the expected private and public investment projects,
including Fomilenio II, the mission expects growth to increase to
about 2 to 2.25 percent in 2014 and 2015 and average about 2.4
percent in the medium term.  The mission also projects the budget
deficit to be 4 and 4.4 percent of GDP in 2014 and 2015,
respectively.  In the absence of additional fiscal measures, the
deficit could increase to almost 5.5 percent of GDP by 2019, with
public debt reaching 70 percent of GDP.  There are significant
downside risks to the outlook as global economic uncertainties
interact with domestic vulnerabilities.  Specifically, the
external environment could be affected by the expected
normalization of U.S. monetary policy and weaker growth in other
large economies. Domestic risks include the fiscal and external
current account imbalances, weak implementation of investment
projects, and continued political fragmentation.

"The authorities' goal of reaching 3 percent growth on a sustained
basis and reducing inequality is achievable if supported by
additional far-reaching structural reforms.  The draft 2014-19
Plan Quinquenal seeks to promote job creation, education, and
security.  The government also envisages further steps to bolster
public investment, and promote economic transformation through
diversifying the energy matrix, strengthening the manufacturing
industry, and tradable service sectors.  Reforms to reduce red-
tape and bureaucracy, increase access to finance for SMEs, lower
the access and costs of energy, and improve security are essential
to attract private investment.  Fomilenio II offers an opportunity
to accelerate these structural reforms to help raise productivity,
competitiveness, and growth.  In addition, better targeting of
subsidies and reallocating savings to well-targeted and high
priority social programs are also important to lower inequality.
"The authorities rightly recognize that higher growth alone will
not be enough to address the fiscal imbalances. To this end, the
government has recently adopted tax measures, and is taking steps
to lower tax evasion, and restrain spending, aiming to limit the
deficit for 2015 to 4 percent of GDP.  The government's intention
in the draft fiscal responsibility law to pursue a cumulative
fiscal adjustment of 1.5 percent of GDP in 3 years and reduce non-
pension related debt to 42 percent of GDP in 10 years is a step in
the right direction.  However, the mission considers a cumulative
adjustment of 3.5 percent of GDP over a 3-year period as necessary
to achieve debt sustainability. This would entail lowering the
public debt ratio (including pension-related debt) to below 50
percent of GDP in 10 years.  Significant pension reform is also
essential for long-term fiscal sustainability.  The mission
encourages a wide debate across Salvadoran society to achieve
broad agreement on these reforms.

"The banking system is highly liquid and reports strong capital
positions.  The mission welcomes steady progress in modernizing
banking supervision and El Salvador's participation in several
regional supervisory initiatives.  The mission encouraged further
building the financial safety net, as well as upgrading resolution
and crisis management frameworks, in line with prior Financial
Sector Assessment Program and technical assistance

During the visit, the mission met with Vice President Oscar Ortiz,
Technical Secretary Roberto Lorenzana, Finance Minister Carlos
C ceres, Central Bank President Oscar Cabrera, Economy Minister
Tharsis Solomon Lopez, Minister of Public Works, Gerson Martinez,
Minister of Justice and Security, Benito Lara, Minister of
Agriculture Orestes Ortez, as well as other senior government
officials, members of congress, and representatives of the private
sector.  The mission greatly appreciates the frank and productive
discussions and the warm hospitality of our Salvadoran


NATIONAL COMMERCIAL BANK: IDT Awards Clerical Workers 17% Pay Rise
Jamaica Observer reports that the Industrial Disputes Tribunal
(IDT) awarded most of the clerical employees of National
Commercial Bank Jamaica (NCB) Group a near-17 per cent salary

The commercial bank said that the award, which included an eight
per cent salary increase for the current financial year and the
year before, was higher than anticipated, according to Jamaica

NCB had made provisions for the expected pay rise but the award
"exceeds the amounts provided", according to the bank, the report

"The extent to which the retroactive payments for those two
financial years exceed the provisions that had been made will be
taken into account in the income statement for the financial year
ended September 30, 2014," said a statement issued to the Jamaica
Stock Exchange, the report discloses.

The report relates that the Ministry of Labor and Social Security
referred to the Industrial Disputes Tribunal a dispute between the
Staff Association and the bank in respect of the association's
claim for increased wages and improved conditions of employment,
according to NCB's 2013 annual report.

The IDT made the award on October 23, 2014.

Headquartered in Kingston, Jamaica, National Commercial Bank
Jamaica Limited -- together with its
subsidiaries, provides various banking and financial products and
services primarily in Jamaica.

                      *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 23, 2014, Fitch Ratings affirmed the long-term foreign
currency and local currency IDRs for National Commercial Bank
Jamaica Ltd. (NCBJ) at 'B-'.  Fitch has also revised NCBJ's Rating
Outlook to Stable from Negative.  Additionally, Fitch has affirmed
NCBJ's Viability Rating (VR) at 'b-' and revised its Support
Rating Floor (SRF) to 'B-' from 'CCC.'

* JAMAICA: Big Jump for Country on "Ease of Doing Business" List
RJR News reports that a new World Bank Group report shows that
Jamaica has the Caribbean's highest ranking in the ease of doing
business, being listed 58 out of 189 economies.

World Bank Group shows that, over the last year, Jamaica
implemented three reforms, the most in Latin America and the
Caribbean, along with the Dominican Republic and Trinidad &
Tobago, according to RJR News.

The report notes that Jamaica streamlined the requirements for
starting a business, reduced the cost of getting electricity
connection, and established credit bureaus while adopting a
secured transactions law that broadens the range of assets that
can be used as collateral.

The report discloses that Jamaica also appears closer than it was
last year to global best practices in business regulation, as
measured by its Distance to Frontier ranking.

P U E R T O    R I C O

PUERTO RICO: May Raise Petroleum Tax to Back US$2.9BB of Debt
Michelle Kaske at Bloomberg News reports that Puerto Rico
lawmakers are working on a plan to allow the island's
Infrastructure Financing Authority to sell as much as US$2.9
billion of bonds backed by petroleum taxes to repay loans from the
Government Development Bank.

The strategy involves boosting the junk-rated commonwealth's
petroleum-tax rate to US$15.50 per barrel after lawmakers
increased it to US$9.25 last year from US$3, General Assembly
Representative Rafael "Tatito" Hernandez said in a telephone
interview with Bloomberg News.

Bloomberg News notes that the bill, which hasn't been filed, would
transfer the new revenue to the Infrastructure agency, called
Prifa, from the Highways & Transportation Authority.  Prifa, which
has sold bonds backed by rum-tax revenue, would issue debt secured
by the petroleum-tax receipts, Mr. Hernandez said, according to
Bloomberg News.  Prifa, unlike the roads agency, isn't eligible to
restructure its debt through a law the commonwealth passed in

Bloomberg News relates that Prifa would take on loans the highway
agency owes the GDB, and repay them with the bond proceeds.  The
Development Bank lends cash to the commonwealth and its agencies
to help balance budgets, Bloomberg News relates.  The plan would
boost the GDB's funds and also raise revenue to support US$4.6
billion of highway debt and the new Prifa bonds, Mr. Hernandez
said, Bloomberg News relays.

"It's going to fix the cash flow for the GDB," Bloomberg News
quoted Mr. Hernandez as saying.  For bondholders, "their coverage
is going to be better after we pass this bill," he added.

                         Safeguard Move

Bloomberg News notes that Puerto Rico is moving to safeguard its
direct debt and strengthen the GDB's balance sheet after the three
largest credit-rating companies cut the U.S. territory to
speculative grade in February.  The commonwealth and its agencies
have US$73 billion of obligations, most of which are tax-free
nationwide, Bloomberg News relates.  The island's economy has
struggled to grow since 2006.

The GDB plans to hold a conference call with investors today, Oct.
31. The bank on Oct. 17 released financial documents that included
a plan for Prifa to sell bonds to repay money the Highways
Authority owes the GDB, Bloomberg News says.

The development bank's net liquidity as of Sept. 30 was US$1.4
billion, or US$1.7 billion less than three months earlier, Ted
Hampton, a Moody's Investors Service analyst, wrote in a report
obtained by Bloomberg News.  Without the planned Prifa sale, the
GDB's available cash would fall to US$819 million, Moody's said,
Bloomberg News relates.

The depleted cash "could lead the commonwealth and GDB to resort
to budgetary payment deferrals and other cash management tools in
order to pay debt service, which would increase the risk of
default and place negative pressure on the rating of the
commonwealth and its related entities," according to Mr. Hampton,
Bloomberg News adds.

T R I N I D A D  &  T O B A G O

COLONIAL LIFE: Barbados Gov't. Plans Bailout
The Jamaica Gleaner reports that Barbados Finance Minister Chris
Sinckler said the government is contemplating a rescue package for
cash-strapped CLICO International Life.

Minister Sinckler told a news conference that the insurance com-
pany, whose Trinidad-based parent company collapsed a few years
ago, was in need of a "small" amount of funds to keep it
operational, according to The Jamaica Gleaner.

The report notes that Minister Sinckler said Cabinet had already
agreed to a restructuring plan prepared by the company's judicial
managers, Deloitte Consulting.

"The restructuring plan will be approved by the High Court and
will be executed jointly by the judicial manager and a new company
that is being put in place that government has established to
manage the assets of CLICO in the various trusts that are to be
created for such assets," the report quoted Minister Sinckler as

Under the plan, it is envisaged that all policyholders with
traditional insurance policies, such as life, health and pension
plans, will receive the full value of their policies with the
support of the government, the report notes.

The report discloses that holders of individual Executive Premium
Annuity (EFPA) policies will receive the value of their principal
investment while investors with EFPA policies, other than
individuals, will receive shares in the property-holding entities.

The report relates that the plan also envisages the creation of a
new insurance company to take over the insurance business and the
creation of separate entities that will own the real estate and
other illiquid assets.

Deloitte has said that these property-holding entities will issue
bonds to the new insurance company, which will be guaranteed by
the Barbados government, the report notes.

The report recalls that CLICO and sister company British American
Insurance Company collapsed in 2009.

                   About CLICO International

Colonial Life Insurance Company Ltd. (CLICO) is a member of the CL
Financial Group.  CL Financial Limited is a privately held
conglomerate in Trinidad and Tobago.  Founded as an insurance
company by Cyril Duprey, Colonial Life Insurance Company was
expanded into a diversified company by his nephew, Lawrence
Duprey.  CL Financial is now one of the largest local
conglomerates in the region, encompassing over 65 companies in 32
countries worldwide with total assets standing at roughly US$100

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on July
7, 2014, Trinidad Express said that the Central Bank has placed
the responsibility of voluntary separation package (VSEP)
negotiations for workers at insurance giant Colonial Life
Insurance Company Ltd. (CLICO) with the company's board, after
which it will review accordingly, the bank said in a statement.
The bank's statement follows protest action by CLICO workers,
supported by their union, the Banking, Insurance and General
Workers' Union (BIGWU), outside the Central Bank in Port of Spain,
according to Trinidad Express.

In a separate TCRLA report on June 26, 2014, said
that the Trinidad and Tobago government has welcomed an Appeal
Court ruling that the Attorney General Anand Ramlogan said saves
the country from paying out more than TT$1 billion (TT$1 = US$0.16
cents) to policyholders of the cash-strapped CLICO.  The Appeal
Court overturned the ruling of a High Court that ruled members of
the United Policyholders Group (UPG) were entitled to be paid the
full sums of their polices. CLICO financially caved in on itself
at the end of 2008 after the investment instruments of major
policyholders matured and they wanted hundreds of millions of
dollars they were owed.

On Aug. 6, 2013, the TCR-LA, citing, said that
over TT$8 billion worth of CLICO's profitable business will be
transferred to Atruis, a new company that will be owned by the
state.  The Trinidad Express said that the Cabinet approved the
transfer as the Finance and General Purposes Committee continues
to discuss a letter of intent hammered out by the Ministry of
Finance and CL Financial's 400 shareholders, which envisions
taxpayers will recover the more than TT$20 billion Government has
injected since 2009 to keep CL subsidiary CLICO and other
companies afloat.

TRINIDAD AND TOBAGO: Gas Output Declines
Trinidad and Tobago Newsday reports that Trinidad and Tobago's
natural gas output has declined.

According to the latest issue of the Economic newsletter, which is
published by Republic Bank, the country's energy sector recorded a
mixed performance between April and June, the report notes.

That performance saw gas output fall from an average of 4.3
billion cubic feet per day (Bcf/d) to 4 Bcf/d, according to
Trinidad and Tobago Newsday.  During this same period, oil
production increased marginally from 79,528 barrels of oil per day
(bopd) to 79,902 bopd, the report relates.

The report notes that oil prices, at that time, increased to an
average US$103.95 per barrel from US$98.75 per barrel.  Gas prices
slid from US$5.21 to US$4.61 per mmbtu.  Exploration and
production activity, increased, with rig days rising from 588 to
753, Depth drilling increased by 8.8 percent to 93,646 feet, the
report adds.

The report discloses that the 2013 Ryder Scott Report revealed
that proven and probable gas reserves had fallen by seven percent
and one percent respectively since 2012.  Despite this, the energy
sector received a much needed boost in July, when Spanish energy
company Repsol announced an oil find, estimated at 40 million
barrels, off Trinidad's south-east coast, the report notes.

The report relays that with Government expected to remain focused
on completing ongoing infrastructure and other construction
projects, in the lead up to next year's general elections,
activity in the construction sector is expected to remain upbeat.

At the end of June, Trindad Cement Limited increased the price of
cement by TT$5 per bag, the report notes.

Economic activity is expected to accelerate in the fourth quarter
of this year, based largely on seasonal factors and public sector
spending, 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
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


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

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