/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/141105.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, November 5, 2014, Vol. 15, No. 219 Headlines A R G E N T I N A ARGENTINA: Elliott to Continue Asset Hunt as Sanctions Sought B R A Z I L EVEN CONSTRUTORA: S&P Revises Outlook to Neg. & Affirms 'BB-' CCR C A Y M A N I S L A N D S BIH LIMITED: Commences Liquidation Proceedings BLUE BLUFF: Placed Under Voluntary Wind-Up COLLARD GLOBAL: Placed Under Voluntary Wind-Up DANOSO INVESTMENT: Commences Liquidation Proceedings LANEKA INVESTMENTS: Commences Liquidation Proceedings LOMA REINSURANCE: Commences Liquidation Proceedings RDM INSURANCE: Placed Under Voluntary Wind-Up SHOAL BAY MARINA: Commences Liquidation Proceedings SHOAL BAY PROPERTIES: Commences Liquidation Proceedings SHOAL BAY VILLAS: Commences Liquidation Proceedings UPTON GREY: Creditors' Proofs of Debt Due Nov. 6 C H I L E CHILE: Challenges Await Corporates in 2015, Fitch Says T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Drops Fuel Surcharge as Oil Price Falls FIRST CITIZENS BANK: Durham-Kissoon Resigns as Director TRINIDAD CEMENT: Workers Reinstated After 2012 Strike TRINIDAD & TOBAGO: Local Banks Should Take More Risk Says Minister X X X X X X X X X LATAM: Faces Weak Demand, US Interest Rate Increase, Says Fitch - - - - - ================= A R G E N T I N A ================= ARGENTINA: Elliott to Continue Asset Hunt as Sanctions Sought ------------------------------------------------------------- Katia Porzecanski at Bloomberg News reports that Elliott Management Corp., the hedge-fund firm run by billionaire Paul Singer, said it will continue a decade-long search for Argentine assets to enforce US$1.7 billion in court judgments stemming from the country's default. Elliott Management, which successfully sued Argentina for full repayment on defaulted bonds from 2001, will also pursue sanctions on the South American nation for evading a U.S. court order to pay the New York-based company, according to a letter sent to investors and obtained by Bloomberg News. U.S. Judge Thomas Griesa found Argentina in contempt of court on Sept. 29 for disobeying his orders, which prevent payments on the nation's overseas bonds until Elliott Management is paid, Bloomberg News recalls. "Those proceedings will be undertaken in the coming months," the firm, which oversees US$24.8 billion, wrote. "In the meantime, we will continue our worldwide hunt for Argentine assets to satisfy our judgments," Elliott Management added. Bloomberg News notes that Argentina defaulted on US$95 billion of bonds in 2001. While about 93 percent of creditors accepted losses of 70 cents on the dollar in the country's 2005 and 2010 debt restructurings, holdout investors, including Elliott Management, sued for full repayment, Bloomberg News relays. Mr. Singer in March sued the country and Elon Musk's Space Exploration Technologies Corp. for rights to two launch-services contracts owned by the South American nation and in 2012 tried seizing a naval vessel docked in Ghana, Bloomberg News recalls. 'Self-Destructive' Bloomberg News notes that the hedge fund is also investigating government funds allegedly funneled out of Argentina and into Nevada by an Argentine businessman accused of embezzling US$65 million. In August, Elliott Management's attorney Robert Cohen said the investigation was "just the tip of a very large iceberg," Bloomberg News relays. Argentine President Cristina Fernandez de Kirchner has said she can't negotiate with Elliott until a key bond clause expires at the end of 2014, Bloomberg News notes. As a result, U.S. courts blocked the nation's payments on overseas bonds, triggering a second default in 13 years. President Fernandez hasn't said whether she'll pay next year, when the clause expires, Bloomberg News adds. "Negotiating a resolution of its creditor disputes would have electrifying and instantaneous benefits for the country's economy," Elliott Management wrote, Bloomberg News relays. "However, in the past, many people have predicted that Argentina would take a turn toward 'rational' behavior only to see officials in Buenos Aires continue in the same radical and self-destructive decision-making," Elliot added. * * * TCRLA 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. On Nov. 3, 2014, the TCR-LA reported that Fitch Ratings downgraded Argentina's rating on Par Bonds issued under Foreign Law to 'D' from 'C' as Argentina has not been able to cure the missed coupon payments on its par bonds issued under foreign law after the expiration of the 30-day grace period on Oct. 30. According to Fitch's criteria, this constitutes an event of default and Fitch has downgraded the affected securities to 'D'. In addition, Fitch has affirmed: -- Foreign Currency Issuer Default Rating (IDR) at 'RD'; -- Local Currency IDR at 'CCC'; -- Short-term Foreign Currency IDR at 'RD'; -- Country Ceiling at 'CCC'. -- Performing Foreign Law Exchanged Securities (Global 17) at 'C'; -- Local Currency exchanged bonds under Argentine Law at 'CCC'; -- Foreign and Local Currency non-exchanged securities under Argentine Law at 'CCC'; -- Discount Bonds issued under Foreign Law at 'D'. =========== B R A Z I L =========== EVEN CONSTRUTORA: S&P Revises Outlook to Neg. & Affirms 'BB-' CCR ----------------------------------------------------------------- Standard & Poor's Ratings Services revised its ratings outlook on both global and national scale rating on Even Construtora e Incorporadora S.A. (Even) to negative from stable. S&P also affirmed its 'BB-' global scale and 'brA' national scale corporate credit ratings. Then S&P withdrew the ratings at issuer's request. The rating actions reflect the increased pressure on Even's leverage profile stemming from weaker-than-expected cash flows because business conditions in Brazil are deteriorating due to lower consumer confidence, rising inflation, and slower economic activity. As a result, Even would focus on streamlining execution and cash conversion cycle, which S&P believes could significantly mitigate these risks and eventually reduce debt. S&P believes that Even can achieve this by reducing annual launches to about R$1.8 billion, while keeping collection and mortgage transfers at current speed. Due to the increased financial risks, S&P revised its assessment of Even's financial risk profile to "aggressive" from "significant." This, combined with the company's "weak" business risk profile results in an anchor of 'b+'. However, S&P considers Even's credit quality to be in line with its global peers in the 'BB-' category because its competitive strengths enable the company to withstand the currently sluggish business conditions. Therefore, S&P believes its land bank (R$6.4 billion) is more resilient because it's concentrated in the Rio de Janeiro and Sao Paulo markets, where the company has good operating track record. Also, Even's proprietary broker unit generates the majority of the company's sales, helping reduce cancellation rates and allowing for a better fit of its products to demand. Those factors have resulted in less volatile operating margins. ========================== C A Y M A N I S L A N D S ========================== BIH LIMITED: Commences Liquidation Proceedings ---------------------------------------------- On Aug. 29, 2014, the shareholder of BIH 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: Paul Sistare c/o Maples and Calder P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands BLUE BLUFF: Placed Under Voluntary Wind-Up ------------------------------------------ At an extraordinary general meeting held on Sept. 22, 2014, the shareholder of Blue Bluff Limited 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: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 COLLARD GLOBAL: Placed Under Voluntary Wind-Up ---------------------------------------------- Collard Global Macro Fund commenced wind-up proceedings. 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: Alric Lindsay Telephone: (345)-926-1688 Artillery Court Shedden Road P.O. Box 11371 George Town Grand Cayman KY1-1008 Cayman Islands DANOSO INVESTMENT: Commences Liquidation Proceedings ---------------------------------------------------- On Sept. 22, 3014, the sole shareholder of Danoso Investment Company 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 LANEKA INVESTMENTS: Commences Liquidation Proceedings ----------------------------------------------------- On Sept. 22, 3014, the sole shareholder of Laneka Investments Limited 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: Fonseca Management Ltd. c/o Dr. Hans Bodmer Telephone: +41 44 711 7171 Facsimile: +41 44 711 7111 P.O. Box 958 Tortola British Virgin Islands LOMA REINSURANCE: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary general meeting held on Sept. 25, 2014, the shareholder of Loma Reinsurance Ltd. 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: Carl Gosselin Wilmington Trust (Cayman), Ltd. P.O. Box 32322, Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 640-6712 RDM INSURANCE: Placed Under Voluntary Wind-Up --------------------------------------------- On Sept. 22, 2014, the sole shareholder of RDM Insurance Group, Ltd. 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: William G. Rosier c/o Global Captive Management Ltd. Building 3, 2nd Floor, Governors Square 23 Lime Tree bay Avenue P.O. Box 1363 Grand Cayman KY1-1108 Cayman Islands Telephone: +1 (345) 949 7966 Facsimile: +1 (345) 949 8068 SHOAL BAY MARINA: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary general meeting held on Sept. 25, 2014, the shareholder of Shoal Bay West Marina Development LLC 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 liquidators are: Rebecca Eggleton Michael Eggleton Wilmington Trust (Cayman), Ltd. P.O. Box 32322, Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 640-6712 SHOAL BAY PROPERTIES: Commences Liquidation Proceedings ------------------------------------------------------- At an extraordinary general meeting held on Sept. 25, 2014, the shareholder of Shoal Bay West Properties LLC 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 liquidators are: Rebecca Eggleton Michael Eggleton Wilmington Trust (Cayman), Ltd. P.O. Box 32322, Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 640-6712 SHOAL BAY VILLAS: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary general meeting held on Sept. 25, 2014, the shareholder of Shoal Bay West Villas LLC 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 liquidators are: Rebecca Eggleton Michael Eggleton Wilmington Trust (Cayman), Ltd. P.O. Box 32322, Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 640-6712 UPTON GREY: Creditors' Proofs of Debt Due Nov. 6 ------------------------------------------------ The creditors of Upton Grey Holdings Limited are required to file their proofs of debt by Nov. 6, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 25, 2014. The company's liquidator is: Christopher Kennedy c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands ========= C H I L E ========= CHILE: Challenges Await Corporates in 2015, Fitch Says ------------------------------------------------------ Despite the Stable Outlooks for a bulk of the Chilean portfolio of international corporate ratings, downgrades are expected to outpace upgrades during 2015 and Negative Outlooks are likely to increase, according to Fitch Ratings. Macroeconomic conditions remain challenging and domestic demand should be subdued. Energy costs are elevated and will not decline in the near term. Prices for iron ore and pulp remain depressed, while copper prices are trending negative as supply is increasing. Tax changes will add additional pressure to 2015 corporate cash flows. Fitch projects that the median net leverage ratio of its portfolio of 27 internationally rated corporates will climb above 3.2x by the end of 2015. This projected leverage level is considerably worse than 2.2x at the end of 2009 and compares negatively versus 3.0x during 2013. If leverage increases as projected, a number of downgrades could occur, as several credits are considered weak within their rating categories. Only four corporates among the rated portfolio are not rated investment grade - Automotores Gildemeister ('CCC'), LATAM Airlines ('BB'), GeoPark ('B') and Masisa ('BB'). Cencosud ('BBB-') and LATAM Airlines remain on Outlook Negative at the end of 2014, while CFR's rating is on Rating Watch Positive following its acquisitions by Abbott Laboratories. Default risk is the highest for Automotores Gildemeister. The Rating Outlook for the other 23 corporates remains Stable. Debt amortizations are very manageable. Ten corporates have tapped the international debt capital markets during 2014 to take advantage of attractive market conditions, using the proceeds mostly to finance upcoming maturities. Only Arauco ('BBB'), Endesa ('BBB+') and Telefonica Moviles Chile ('BBB+') face international bond bullet payments in 2015. A wild card in rating activity is the direction and level of change in the Chilean peso, which floats more freely than other FX rates in the region and is a key component of profitability for corporates in the agriculture, mining, wine and pulp sectors. The FX rate also determines the competitiveness of manufacturing companies that compete versus imports. The Chilean economy is the most open to foreign trade in Latin America; exports plus imports are equivalent to nearly 70% of GDP. Management teams are expected to remain aggressive to the detriment of creditors in 2015. This is a continuation of philosophical changes with regards to the optimal capital structure that has occurred over the past few years and has contributed to several downgrades. Many Chilean finance teams do not feel they are compensated for maintaining capital structures in the 'BBB+' to 'A' rating range. Therefore, they are funding capex and acquisitions with more debt. This is in contrast to the 1990s, when growth was funded with equity. At that time, owners and managers were cautious about using debt due to high default levels in the 1980s. In addition, IPO's were prevalent as corporates began tapping international capital markets. Cash flow from operations growth for the group of credits has been anemic. The 27 Fitch-rated corporate issuers generated $18.8 billion of operating cash flow during 2013, which remains relatively unchanged from $18.1 billion in 2009. This lackluster level of cash generation growth occurred despite $68 billion of capital expenditures. Due to increasing capex during a period of flat operating performance, the median free cash flow ratio of these rated corporates fell to negative 2.2% in 2013 from positive 4.3% in 2009. Corporate cash generation should continue to be lethargic in 2015, as the outlook for revenue growth is poor and companies face rising costs. Prices for key international commodities such as iron ore and pulp are at cyclical lows despite growing demand due to a global glut of new projects. A surplus of copper supply is expected in 2015, which could soften prices for this crucial commodity. Business confidence has suffered from the approval of tax reforms, which dramatically changed the existing tax framework, and were particularly harsh on the treatment of retain earnings. Domestic demand has not grown as anticipated to offset external weakness. Fitch lowered its 2014 GDP expectation for the Chilean economy to 1.8% from 4.1% earlier in the year. Growth is predicted to pick up to 2.6% in 2015. High energy prices are not expected to abate in the near future. Chile faces significant challenges in securing reliable sources of power at competitive prices, as energy prices are driven by uncontrollable variables such as hydrology and international prices of fuels. Growing energy demand and a deceleration of generation investments continues to support high prices. Both the energy agenda and tax reform measures support the expansion of LNG capacity and renewable energy versus lower cost energy derived from coal and large hydropower investments. Taxes reform measures taken during 2014 will affect all companies negatively during 2015, although to varying degrees. The corporate tax rate will progressively increase from 20% in 2013 to 25% in 2017 for the companies that select to use the income attributed tax regime; for those that select the partially integrated tax regime, it will increase from 20% in 2013 to 27% in 2018. Certain tax changes related to the real estate sector could hurt construction companies during 2015. Alcohol and soft drink companies faced immediate increases in excise taxes. Consumer product companies will attempt to pass along higher taxes to their consumers. Companies in global industries such as mining, forestry, agriculture and fishing will face a slight weakening of their global competitiveness. Free cash flow will likely remain negative for the majority of companies during a period of weak operating performance. Dividends and capex won't decline to the level needed for positive free cash flow and declining leverage trends. In fact, the recently enacted tax reform measures now make it more likely that dividends will increase, not decrease. During the past five years, the median ratio of capex to depreciation for Chilean corporates has ranged between 1.4x to 1.7x. Declining business confidence could result in a scaling back of future projects. In addition, the approval process for new investments has increased its complexity. Public concern for environmental issues translated into greater judicial, political, and regulatory oversight of important projects. Companies need to seek increased participation of neighboring communities and engage in public debate on high impact projects, mainly those focused on extractive and energy industries. The risk of not managing these projects successfully is high and can be translated into the stoppage of projects and working operational units. ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN AIRLINES: Drops Fuel Surcharge as Oil Price Falls ----------------------------------------------------------- Trinidad Express reports that state carrier Caribbean Airlines Limited has disclosed the immediate removal of fuel surcharges on all routes between North America and the Caribbean, and within the Caribbean. The report notes that George Reeleder, vice-president of Commercial and Customer Service, said in a statement, "This is great news for Caribbean Airlines customers. With the reduction in jet fuel prices we have removed the surcharges as they were only ever planned to be of temporary nature," Trinidad Express relates. The fuel surcharge was introduced to cover additional costs when the price of fuel was over US$100 per barrel, CAL said, according to Trinidad Express. The report notes that United States oil prices have been hovering around US$80 a barrel. The report adds that CAL's surcharge on flights has been between US$20 and US$32 one way, depending on the destination. "We never wanted this surcharge to be a permanent feature of our fares. Thus, when our largest expense -- fuel, came down, we wanted our customers to benefit. As we approach the Christmas travel season, there could not be a better time to remove this surcharge," the report quoted Mr. Reeleder as saying. 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. FIRST CITIZENS BANK: Durham-Kissoon Resigns as Director ------------------------------------------------------- Trinidad and Tobago Newsday reports that Michelle Durham-Kissoon has resigned as a member of the board of directors of First Citizens Bank (FCB). This information was contained in a memorandum issued by the TT Stock Exchange (TTSE) in which it indicated that Ms. Durham- Kissoon's resignation took effect on November 1, according to Trinidad and Tobago Newsday. Ms. Durham-Kissoon is a Deputy Permanent Secretary at the Finance Ministry. No reasons were given for her resignation either by the TTSE. Efforts to contact FCB to find out why Ms. Durham-Kissoon resigned were unsuccessful, the report notes. Ms. Durham-Kissoon was one of six persons who were approved by Cabinet to be members of the board of FCB in May, the report relays. The others were former Attorney General Anthony Smart (the current FCB chairman), Witco managing director Jean Pierre Du Coudray, Joel Pemberton, Courtenay Williams and Hazar Hosein, the report discloses. The appointments were made following First Citizens' first annual general meeting as a public company at the National Academy for the Performing Arts (NAPA) in Port-of-Spain on May 12, the report notes. The report relays that at that meeting, Corporation Sole, represented by permanent secretary in the Ministry of Finance, Vishnu Dhanpaul, voted against the re-election of and refused to support directors Nyree Alfonso, Rishi Baddaloo, Shobee Jacelon and Marlene Juman. Mr. Alfonso was First Citizens chairman at the time, the report notes. Ms. Juman is the Permanent Secretary in the Ministry of the Attorney General. The report discloses that the need for new directors came about when former First Citizens group chief risk officer, Philip Rahaman purchased 659,588 bank shares costing TT$14 million during its Initial Public Offering (IPO) and sold 634,588 of those shares four months later on January 14, at a TT$12 million profit. The matter is currently under investigation by the Police Service, the Director of Public Prosecutions and the Securities Exchange Commission (SEC), the report adds. About First Citizens Bank First Citizens Bank Limited is headquartered in Port of Spain, Trinidad and Tobago, and is 82.64% owned by the Republic. The bank reported total consolidated assets of TT$ 35.8 billion (US$ 5.6 billion) and shareholders' equity of TT$6 billion (US$ 945 million) as of March 31, 2014. * * * As reported in the Troubled Company Reporter-Latin America on May 27, 2014, Moody's Investors Service has downgraded First Citizens Bank Limited (FCBL) standalone bank financial strength rating (BFSR) to D+ from C-, lowering the baseline credit assessment (BCA) to baa3 from baa1. The outlook has been revised to stable from negative. TRINIDAD CEMENT: Workers Reinstated After 2012 Strike ----------------------------------------------------- Carolyn Kissoon at Trinidad Express reports that Trinidad Cement Ltd (TCL) workers who were barred from returning to work, following a 90-day strike in 2012, were reinstated Nov. 2. Eleven workers were escorted by Oilfields Workers' Trade Union (OWTU) President General Ancel Roget and executive members through the gates of the Claxton Bay cement producer, according to Trinidad Express. The report notes that the workers were allowed back on the compound following discussions with the trade union and the company's new board of directors. They were among workers who faced disciplinary action after 600 employees walked off the job over stalled wage negotiations in 2012, the report relates. The report notes that the OWTU served strike notice on the company stating it had become necessary because the company failed to put a decent offer on the table. The reinstatement of the workers was described as historic in the OWTU calendar, the report relays. "We feel very vindicated this morning, the OWTU and the workers of TCL. This morning ten out of 11 workers returned to work. The only reason why it don't have all 11 going to work this morning is simply because one of those workers, I am informed, is out of the country," the report quoted Mr. Roget as saying. The report relays that Mr. Roget said the workers were within their rights to take strike action in 2012. "That the strike was aimed at proving to the company that without the workers, there would be no normalcy and no normal levels of production. As that matter went before the court, the court supported the union's call for a decent adjustment on wages and salaries and therefore the workers got their day in court and they got justice in court in respect of the strike," Mr. Roget said, the report notes. The report relays that Mr. Roget accused the company of victimising workers after the strike ended in June 2012. Mr. Roget said TCL's executive recognized that it was senseless to keep the remaining 11 workers out and therefore a decision was taken to have them return to work, the report notes. The report discloses Mr. Roget said all 70 workers who were locked out following the strike were back on the job. "These workers will be reinstated and they will receive all that was lost over the period of being kept out until Nov. 3. They are expected to go back into the same positions. We will be looking out closely for any acts of victimization," Mr. Roget said, the report relays. TCL Chairman Wilfred Espinet said the company was ready to continue its program to restructure the company, notes the report. Mr. Espinet said the company appreciated workers and was against victimization, the report says. "I think that surely the intention here is for us to build bridges and that is the purpose for the whole board that has come into TCL now, so thank you very much," Mr. Espinet added, the report discloses. TCL will hold its annual general meeting at the Hilton Trinidad on November 21, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 6, 2014, RJR News said Dr. Rollin Bertrand, Chief Executive Officer of Trinidad Cement Limited, the parent company for Jamaica's Caribbean Cement Limited, was sacked. The report noted that Dr. Bertrand, TCL Chairman Andy Bhajan, and four other directors, tendered their resignations minutes before a group of shareholders met to have them removed at an August 19 special meeting. Although he resigned as director at that meeting, Dr. Bertrand retained his position as Chief Executive Officer at that time, the report related. On Oct. 8, 2014, the TCRLA said that Standard & Poor's Ratings Services lowered its corporate credit rating on Trinidad Cement Limited Group (TCL) to 'D' from 'B'. The downgrade reflects TCL's missed debt service payments due Sept. 30, 2014. On Oct. 9, 2014, the TCRLA reported that Fitch Ratings downgraded Trinidad Cement Limited Group's (TCL) foreign and local Currency Issuer Default Ratings (IDRs) to 'D' from 'B-'. Trinidad Cement Limited is a cement company and is the parent company of Caribbean Cement Company Limited. TRINIDAD & TOBAGO: Local Banks Should Take More Risk Says Minister ------------------------------------------------------------------ Sasha Harrinanan at Trinidad and Tobago Newsday reports that Trinidad and Tobago Trade Minister Vasant Bharath said local banks "need to take a little more (investment) risk" in areas such as Information and Communication Technology (ICT) and tourism. Minister Bharath was responding to Newsday's questions Nov. 3 about foreign investors being able to access credit locally, based on Trinidad and Tobago's ranking of 36 out of 189 economies on the "Ease of getting credit" rating in the 'Doing Business 2015' report. Jamaica outranked Trinidad and Tobago at number 12 while the Dominican Republic ranked 89, which was 42 places above Grenada and Dominica, who both scored 131, according to Newsday. "Credit is the lifeblood of business," the report quoted Minister Bharath said, "particularly (for) organizations that may wish to expand," Newsday relays. "Our banks have traditionally been very conservative in their policies and that's stood us in good stead actually because they didn't go out and invest in all kinds of overseas equity assets, which is what created the financial disaster in 2008," Minister Bharath said, Newsday discloses. Newsday says that Minister Bharath noted however that TT banks "need to start taking a little more risk. Their profits are quite high and they seem content with that but I think that more and more, banks are starting to understand that to go after more business, they need to take a little bit more risk." Newsday notes that asked which sectors the banks should be more willing to approve loans/provide credit to clients in, Minister Bharath told Newsday, "I would like them to look at the areas that Government has identified for diversification of the economy." Minister Bharath listed financial services, tourism, the creative industries sector, agro-processing, the maritime sector and ICT, in which "Government has committed to spend TT$2.4 billion on ICT infrastructure to allow more entrepreneurial business to take place across the country rather than being concentrated in certain towns or sectors of the economy," Newsday relays. Trinidad and Tobago was hailed as one in the "top ten" economies which "improved the most in performance" in the 'Doing Business Report 2015', which was released last Wednesday, October 29, the report says. Doing Business report ranks economies in terms of the ease of doing business in a variety of categories, such as starting a business, registering of property, paying taxes and labor market regulations, Newsday relays. The Doing Business report stated that, "being recognized as top improvers shows that thanks to serious efforts in regulatory reform in the past year," TT, Tajikistan, Benin, Togo, Cote d'Ivoire, Senegal, the Democratic Republic of Congo, Azerbaijan, Ireland and the United Arab Emirates have all "made the biggest advances toward frontier in regulatory practice," Newsday adds. ================= X X X X X X X X X ================= LATAM: Faces Weak Demand, US Interest Rate Increase, Says Fitch --------------------------------------------------------------- Fitch Ratings says in a new report that external forces continue to pressure Latin America, but local risks are also on the rise. "Growth remains sluggish in the region, which when added to shaky global demand, slower growth in China, a potential US interest rate increase, and sluggish commodity prices, increases credit risk," said Peter Shaw, Regional Credit Officer for Latin America. Anemic domestic economies highlight the need for further reforms to bolster or build investor confidence. Colombia and Mexico remain bright spots, with the latter, in particular, poised to benefit from substantial reform momentum and renewed demand in the US. Personal indebtedness is increasing against a backdrop of slowing wage increases and higher unemployment. Corporate capex has seen little growth and revenues have slowed which, when combined with a difficult operating environment, led to a rising number of corporate downgrades during the last two years. International markets are less likely to be receptive to lower- rated Latam borrowers. Higher refinancing needs in 2016-17, and depreciating currencies, raise the FX risk inherent in foreign currency borrowing though maturities of LATAM corporate international bond debt in 2015 remain light. *********** 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 202-362-8552. * * * End of Transmission * * *