TCRLA_Public/141113.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

            Thursday, November 13, 2014, Vol. 15, No. 225


A N T I G U A  &  B A R B U D A



ARGENTINA: Tax Authorities Raid Banks, Currency Exchanges


COLUMBUS INT'L: CWC-Flow Deal Raises Questions, Says Gonsalves


BRAZIL: Incoming Government Faces Cash Crunch
PETROLEO BRASILEIRO: Overpaid by US$1.2BB, Tribunal Probe Shows

C A Y M A N  I S L A N D S

AMBI INVESTMENT: Shareholder to Receive Wind-Up Report on Nov. 17
BIH LIMITED: Shareholders Receive Wind-Up Report
BLUE BLUFF: Shareholder to Receive Wind-Up Report on Nov. 21
COLLARD GLOBAL: Shareholders Receive Wind-Up Report
DANOSO INVESTMENT: Members Receive Wind-Up Report

DV ABSOLUTE: Shareholders Receive Wind-Up Report
FUKUOKA PREFERRED: Members Receive Wind-Up Report
LANEKA INVESTMENTS: Shareholder Receives Wind-Up Report
LDK SOLAR: Court Sanctions Cayman Islands Schemes of Arrangement
RDM INSURANCE: Shareholder Receives Wind-Up Report

UPTON GREY: Shareholders to Receive Wind-Up Report Today


CHILE: Experts Cut Growth Forecast for 2014 to 1.8%

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Approves 2015 budget of US$14.3 Billion


NATIONAL COMMERCIAL BANK: Can Afford 16% Salary Increase, IDT Says
SAGICOR GROUP: Records Lower 3rd Quarter Profit


ELEMENTIA S.A.: Moody's Upgrades Corporate Family Rating to Ba2


LATAM: Corporates to Face Challenging Conditions, Fitch Says

                            - - - - -

A N T I G U A  &  B A R B U D A

Antigua Observer reports that all the services offered by the
Antigua Public Utilities Authority (APUA) to scores of residents
and guests of Jolly Harbor have been disconnected, leaving them
without light, water or telephone.

A number of guests have prematurely ended their stay at the
Caribbean Development Antigua Limited (CDAL)-owned property,
according to Antigua Observer.

While Antigua Observer is unable to ascertain when the
disconnections occurred, minister with responsibility for APUA
Robin Yearwood, who confirmed the withdrawal of the services, said
APUA is willing to reconnect them as soon as an agreement with
CDAL is reached.

"CDAL has a contract with APUA for the provision of services;
electricity, water, telephone; and APUA has disconnected these
services.  APUA is willing and able to turn those services back on
immediately as long as there is an agreement between CDAL and
APUA," Antigua Observer quoted Minister Yearwood as saying.

Minister Yearwood advises that residents should contact CDAL to
register their concerns and not the utility company, the report

In a notice sent to residents, dated November 6, and signed "CDAL
Management," the company said it was experiencing difficulties
with water and that residents should switch to pumping water from
personal cisterns, the report relays.

Despite the confirmation that APUA had pulled the plug on CDAL,
residents and businesses have not experienced any signs of
disconnection as the management company is using its own sources,
the report says.

However, a reliable source has informed Antigua Observer that
government will be looking into reports that Jolly Harbor has been
utilizing its own generator to provide power.

Under law, it is illegal for residents and businesses to procure
their own electricity whether via generator or other means without
permission from APUA, the report relates.

Meantime, the owner of Remax Antigua Ltd Ronald Chapman,
reportedly the largest real estate brokers for Jolly Harbour
properties, said that many guests and residents "are becoming near
the end of their breaking point," the report says.

Jolly Harbor has over 600 villas and properties, which are
occupied or rented from mere days to months.


ARGENTINA: Tax Authorities Raid Banks, Currency Exchanges
EFE reports that Argentina's AFIP revenue service carried out
searches at 71 banks, currency exchanges and other financial
entities suspected of money laundering, the government said.

More than 250 agents took part in the operation, which involved
institutions in this capital and in the provinces of Buenos Aires,
Mendoza and Cordoba, AFIP said in a statement obtained by EFE.

                          *     *     *

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.

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
   -- 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'.


COLUMBUS INT'L: CWC-Flow Deal Raises Questions, Says Gonsalves
Jamaica Gleaner reports that Prime Minister of St Vincent & the
Grenadines, Dr. Ralph Gonsalves, said the acquisition of Columbus
International Inc. by Cable and Wireless Communications Plc (CWC)
raises the specter of the monopolization of Internet services.

Last week, both companies announced the deal in a joint statement,
saying the proposed acquisition, valued at US$3.025 billion would
enable the combined company to significantly accelerate growth and
strengthen its position against competitors, according to Jamaica

During a press conference, Mr. Gonsalves said the Ministry of
Telecommunications as well as the National Telecommunications
Regulatory Commission and the Eastern Caribbean Telecommunications
Authority would advise the Cabinet ahead of its deliberations on
the deal and its implications, the report notes.

"But clearly, on the face of it, it raises questions, which have
to be satisfied, because we have a law, which we passed in 2001 in
the Parliament of St Vincent and the Grenadines, which opened the
door for competition to move away from Cable and Wireless having a
monopoly.  What we are now having is a monopoly in the country -
the Internet services," the report quoted Mr. Gonsalves as saying.

"So, on the face of it, some issues of a monopoly have entered the
picture and the regulatory authority would have to take this
matter into consideration in managing that - regulating that
monopoly as we are going forward. And I would suspect that you
would have similar instincts on the face of it," Mr. Gonsalves
told reporters, the report relates.


The prime minister said his comments were not to be taken as an
official position, but rather he was speaking generally about the
purpose of liberalization, notes the report.

"We still have competition with voice telephony, but we are now
going to have a monopoly in relation to the Internet, and,
therefore, in data?" queried Mr. Gonsalves, the report relays.

Mr. Gonsalves added that were such a monopoly to emerge, there
were legal avenues through which the interest of consumers could
be safeguarded, the report says.

"The law has provisions for monopolies, dominant providers, and
how to address those.  There is a legal framework and, if needs
be, we will strengthen the legal framework, to make sure that
dominant providers, and monopolies do not provide substandard
services and at prices which normally would not be competitive if
you had another provider in the marketplace," Jamaica Gleaner
quoted Mr. Gonsalves, who is also minister of legal affairs, as

CWC's main competitor, Digicel Group, has said it will be pushing
for a rigorous review of the deal by regulators, the report adds.

CWC trades in the Caribbean as LIME, while Columbus International
operates mainly as Flow and Columbus Business Solutions.

                  About Columbus International

Columbus International Inc. is a privately held diversified
telecommunications company based in Barbados. The Company provides
digital cable television, broadband Internet and digital landline
telephony in Trinidad, Jamaica, Barbados, Grenada, St. Vincent &
the Grenadines, St. Lucia and Curacao under the brand name Flow
and in Antigua under the brand name Karib Cable.

As reported in the Troubled Company Reporter-Latin America on Nov.
10, 2014, Standard & Poor's Ratings Services placed its 'B'
corporate credit and issue-level ratings on Columbus International
Inc. (Columbus) on CreditWatch with positive implications.


BRAZIL: Incoming Government Faces Cash Crunch
Global Insolvency citing The Wall Street Journal, reports that
Brazil's next finance minister, to be appointed within weeks, must
wrestle with a growing government problem: not enough money.

Shoring up Brazil's books is crucial for the nation to avoid a
potential credit rating downgrade, which would increase its costs
of borrowing, according to Global Insolvency.

But there are short-term economic pitfalls as well as political
challenges for President Dilma Rousseff, who faces a more
conservative and divided Congress than she did in her first term,
the report notes.

Among her first tasks is avoiding Brazil's version of the fiscal
cliff, the report relates.

In coming weeks, the nation's lawmakers must vote to loosen
legally binding requirements forcing Brasilia to end the year with
a fat government surplus, the report discloses.

According to this law, Brazil was supposed to post savings to pay
down public debt, the so-called primary surplus, of BRL99 billion
(US$38.6 billion) this year, or 1.9% of gross domestic product,
the report relays.

Figures through September show Brazil running a BRL15.3 billion
deficit, notes Global Insolvency.

Some economists project Brasilia will end 2014 with its first
primary deficit since the economy was stabilized from
hyperinflation in the mid-1990s, the report adds.

PETROLEO BRASILEIRO: Overpaid by US$1.2BB, Tribunal Probe Shows
Anna Edgerton at Bloomberg News reports that Petroleo Brasileiro
SA allowed suppliers in refinery projects and oil platforms to
over charge by about BRL3 billion (US$1.2 billion), according to
preliminary findings of a tribunal overseeing state spending.

The figure includes an estimated US$792 million in over billing at
the Pasadena refinery in the U.S. as well as surplus payments at
the Comperj and Abreu e Lima plants being built in Brazil, Augusto
Nardes, president of the TCU tribunal, told reporters in Brasilia,
according to Bloomberg News.

Bloomberg News notes that Petrobras is being investigated in
Brazil by a congressional committee, the federal police and the
TCU after a former director was arrested earlier this year for his
alleged involvement in a laundering operation.  Former head of
refining Paulo Roberto Costa has alleged that builders formed a
cartel to overcharge for projects and divert money to politicians,
Bloomberg News relates.

Mr. Nardes said he spoke with Ricardo Lewandowski, president of
Brazil's Supreme Court, about reviewing a 1998 executive decree
that allows Petrobras to skip the normal licensing process for
contracts, notes the report.  Willingness from President Dilma
Rousseff to examine the issue could signal that Brazil supports
greater transparency at the country's largest state-run company,
Mr. Nardes said, Bloomberg News relates.


"The Supreme Court should make a decision because this issue has
been costly for Brazil," Bloomberg News quoted Mr. Nardes as
saying.  "It facilitates, leaves room for graft and fraud, which
is why it's necessary for the Supreme Court to decide."

Bloomberg News notes that Petrobras will pay US$21.6 billion to
complete the Comperj complex that's scheduled to open in 2016,
Jose Jorge, a member of the TCU tribunal, said in documents
released last month.  Management has been "reckless" in skipping
technical analysis, overpaying for contracts and lacking effective
controls, according to the audit, says the report.

Petrobras said in an April 16 statement that, just like Abreu e
Lima, Comperj suffered a series of changes in its initial project,
Bloomberg News discloses.  The cost in that statement was US$13.5
billion, Bloomberg News adds.

                   About Petroleo Brasileiro

Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. --
Petrobras (Brazilian Petroleum Corporation) -- explores for oil
and gas and produces, refines, purchases, and transports oil
and gas products.  The Company has proved reserves of about 14.1
billion barrels of oil equivalent and operates 16 refineries, an
extensive pipeline network, and more than 8,000 gas stations.

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 23, 2014, Moody's Investors Service downgraded Petrobras
S.A.'s (Petrobras)'s Preferred Shelf (Foreign Currency) rating to
(P)Ba1 from (P)Baa3.

C A Y M A N  I S L A N D S

AMBI INVESTMENT: Shareholder to Receive Wind-Up Report on Nov. 17
The shareholder of AMBI Investment Management Ltd. will receive on
Nov. 17, 2014, at 12:00 p.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

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

BIH LIMITED: Shareholders Receive Wind-Up Report
The shareholders of BIH Limited received on Nov. 6, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Paul Sistare
          c/o Maples and Calder, Attorneys-at-law
          P.O. Box 309, Ugland House
          Grand Cayman KY1-1104
          Cayman Islands

BLUE BLUFF: Shareholder to Receive Wind-Up Report on Nov. 21
The shareholder of Blue Bluff Limited will receive on Nov. 21,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

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: Shareholders Receive Wind-Up Report
The shareholders of Collard Global Macro Fund received on Nov. 7,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Alric Lindsay
          Artillery Court
          Shedden Road
          P.O. Box 11371, George Town
          Grand Cayman KY1-1008
          Cayman Islands

DANOSO INVESTMENT: Members Receive Wind-Up Report
The members of Danoso Investment Company received on Nov. 3, 2014,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands

DV ABSOLUTE: Shareholders Receive Wind-Up Report
The shareholders of DV Absolute Return Fund received on Nov. 5,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Mark Bloom
          Telephone: +65 6223 2480
          6 Marina Boulevard
          #56-52 the Sail @ Marina Bay
          (Central Park Tower)
          Singapore 018985

FUKUOKA PREFERRED: Members Receive Wind-Up Report
The members of Fukuoka Preferred Capital 2 Cayman 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:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands

LANEKA INVESTMENTS: Shareholder Receives Wind-Up Report
The shareholder of Laneka Investments Limited received on Nov. 10,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

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

LDK SOLAR: Court Sanctions Cayman Islands Schemes of Arrangement
LDK Solar CO., Ltd. in provisional liquidation and its Joint
Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of
Zolfo Cooper (Cayman) Limited, announced on Nov. 10 that, on
November 7, 2014, the Grand Court of the Cayman Islands sanctioned
the Cayman Islands schemes of arrangement of LDK Solar and its
subsidiary, LDK Silicon & Chemical Technology Co., Ltd., each as
previously approved by scheme creditors at their class meetings
held on October 16, 2014.

"We are very pleased that the Grand Court of Cayman Islands has
sanctioned our Cayman Islands schemes of arrangement, and this
represents a significant step in our offshore restructuring,"
stated Xingxue Tong, Interim Chairman, President and CEO of LDK
Solar.  "We now focus on also obtaining sanction from the High
Court of Hong Kong with respect to our Hong Kong schemes of
arrangement, together with the recognition of our LDK Solar Cayman
scheme of arrangement and approval of the terms of our pre-
packaged plan of reorganization from the U.S. Bankruptcy Court.
We look forward to the completion of our restructuring
transactions as may eventually be approved through these judicial
processes.  While we are mindful of difficulties ahead, we remain
committed to rebuilding LDK Solar and repositioning ourselves in
the PV marketplace to grow our business," concluded Mr. Tong.

The U.S. Bankruptcy Court will hold a hearing on November 21, 2014
to consider confirmation of the prepackaged plan of reorganization
and recognition of the Cayman Island scheme of arrangement of LDK

                        About LDK Solar

LDK Solar Co., Ltd. -- based in Hi-
Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.

LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.

LDK Solar CO., Ltd. in provisional liquidation and its Joint
Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of
Zolfo Cooper (Cayman) Limited, on Oct. 22 disclosed that on
October 21, 2014 three U.S. subsidiaries of LDK Solar, LDK Solar
Systems, Inc., LDK Solar USA, Inc. and LDK Solar Tech USA, Inc.
filed voluntary petitions to reorganize under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware.  The lead case is In re  LDK
Solar Systems, Inc. (Bankr. D. Del., Case No. 14-12384).

The U.S. Debtors' General Counsel is Jessica C.K. Boelter, Esq.,
at Sidley Austin LLP, in Chicago, Illinois.  The U.S. Debtors'
Delaware   counsel is Robert S. Brady, Esq., Maris J. Kandestin,
Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt &
Taylor, LLP, in Wilmington, Delaware.  The U.S. Debtors' financial
advisor is Jefferies LLC.  The Debtors' voting and noticing agent
is Epiq Bankruptcy Solutions, LLC.

The U.S. Debtors commenced the Chapter 11 Cases in order to
implement the prepackaged plan of reorganization, with respect to
which the U.S. Debtors launched a solicitation of votes on
September 17, 2014 from the holders of LDK Solar's 10% Senior
Notes due 2014, as guarantors of the Senior Notes, and required
such holders of the Senior Notes to return their ballots by
October 15, 2014.  Holders of the Senior Notes voted
overwhelmingly in favor of accepting the Prepackaged Plan.

Contemporaneously with the filing of the Chapter 11 Cases, on
October 21, 2014, LDK Solar filed a petition in the same U.S.
Bankruptcy Court for recognition of the provisional liquidation
proceeding in the Grand Court of the Cayman Islands, as previously
announced by LDK Solar, as a foreign main proceeding under Chapter
15 of the United States Bankruptcy Code.  The Chapter 15 case is
In re LDK Solar CO., Ltd. (Bankr. D. Del., Case No. 14-12387).

RDM INSURANCE: Shareholder Receives Wind-Up Report
The shareholder of RDM Insurance Group, Ltd. received on Oct. 28,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

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

UPTON GREY: Shareholders to Receive Wind-Up Report Today
The shareholders of Upton Grey Holdings Limited will receive
today, Nov. 13, 2014, at 10:00 a.m., the liquidator's report on
the company's wind-up proceedings and property disposal.

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


CHILE: Experts Cut Growth Forecast for 2014 to 1.8%
EFE reports that experts lowered their forecast for Chile's growth
in 2014 to 1.8 percent, down from 1.9 percent in the previous
Central Bank survey.

They also cut their expectations for Chile's growth in 2015 by
one-tenth of a percentage point to 3 percent, according to
November's Monthly Survey of Economic Expectations, which polled
60 economists, academics and financial-sector executives,
according to EFE.

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Approves 2015 budget of US$14.3 Billion
Dominican Today reports that after several hours of debate, the
Chamber of Deputies approved the bill for the 2015 Budget, of
RD$630.0 billion (US$14 .3 billion), which had already passed in
the Senate.

The deputies of the ruling party PLD and of the pro-government
PRSC were enough to pass the legislation, which president Danilo
Medina is expected to sign into law, according to Dominican Today.

The report notes that the bill passed 101 votes to 50, with seven

The opposition PRM party's 50 deputies had voted against, after
having requested a RD$20.0 billion allocation to raise wages of
government workers who earn the minimum salary, and RD$500.0
million for the Santo Domingo State University, UASD, among other
entities, the report notes.


NATIONAL COMMERCIAL BANK: Can Afford 16% Salary Increase, IDT Says
Jamaica Observer reports that the Industrial Disputes Tribunal
(IDT) has awarded a pay increase to employees of the National
Commercial Bank (NCB) of 16 per cent, compounded over the two-year
period, October 1, 2012 to September 30, 2014.

The award is for an eight percent increase, effective October 1,
2012, and a further eight percent increase effective October 1,
2013, which means that the benefits, which also include a number
of allowances, will have to be paid retroactively, according to
Jamaica Observer.

The report notes that the workers were seeking a nine percent
increase each of the two years, while the bank had offered five
per cent and four per cent, respectively.

The IDT panel, which made the award after hearing from
representatives of both the NCB and the NCB Staff Association
(NCBSA), said it made the award on the basis that the bank has the
ability to pay the increases as it is enjoying increased profits
and all key performance indicators are pointing in the right
direction, the report relates.

The report discloses that the tribunal's award brought to an end
nearly two years of wage negotiations, which began in December,
2012 and included a brief work stoppage on May 27, 2013, which
ended after an urgent intervention by the Ministry of Labour and
Social Security.  However, the ministry was unable to conclude the
negotiations, and it was referred to the IDT, the report notes.

The report discloses that the panel looked closely at the issue of
the bank's ability to pay, based on the case made by the NCBSA
that NCB had the ability to pay the nine per cent increase, as it
would not impair its profitability.

The NCBSA also submitted that while the financial sector was
impacted by the global financial crisis, the impact was minimal,
as concluded by a "stress test" undertaken by the International
Monetary Fund (IMF), the Bank of Jamaica (BOJ) and the Ministry of
Finance and Planning, the report relays.

The NCBSA said that, in addition, the Jamaica Debt Exchange (JDX)
had no significant impact on the bank's profitability as a
financial sector stability fund, provided by the international
lending institutions, was not utilized by local banks as there was
no need for them to draw down on the fund, the report relays.

The report says that the NCBSA insisted that private sector wage
increases should be driven by ability to pay, as a wage freeze in
that sector could have a negative impact on the economy.

"The argument that a nine per cent salary increase could have a
negative impact on the bank, as it would be a "large increase" is
flawed, as that would translate into an increase below the rate of
inflation, and an increase below the rate of inflation could not
be considered excessive," the association argued, the report

The staff association also noted that, according to the BOJ
Prudential Indicators of Commercial Banks 2013, in terms of
"profitability, liquidity, asset quality and capital adequacy",
the banking sector is "extremely strong and resilient," the report

However, NCB claimed that the NCBSA's claims were "unreasonable",
and not in accordance with increases given within the financial
sector, and that the bank was not in a position to pay those
increases, which it saw as "contrary to the national interest,"
the report relates.

The bank said that its offer of five per cent in year one, and
four per cent in year two of a new contract, was made against the
background of a deteriorating environment, with net profit down,
ratios trending in the wrong direction, capital adequacy falling
and cost to income ratios increasing, the report notes.

The bank also said that the NCBSA's claim that it had the ability
to pay was made without any concern about actually confirming that
it had the ability to pay, and that it failed to seriously
consider the effect of the increase on customers and shareholders,
the report says.

Jamaica Observer relays that the NCB also insisted that both the
JDX and the National Debt Exchange (NDX), as well as the public
debt exchange, have had significant impact on its profitability.
It said that evidence of this was that between 2011 and 2013 its
share price declined on the Jamaica Stock Exchange and there was a
decline in net profit of 14.9 per cent n 2013 and a decrease in
earnings per stock unit, as well as an increase in cost to income
ratio from 47 per cent to 56 percent, notes the report.

However, the IDT sided with the NCBSA, stating that "the evidence
in this matter points to an institution which is enjoying
increased profits and, more importantly, all the key performance
indicators are pointing in the right direction," the report

The IDT panel was chaired by Norman Wright, and also included Rion
Hall and Trevor McNish.  The NCB was represented by attorneys-at-
law Walter Scott and Anna Gracie, and the NCBSA by Danny Roberts,
industrial relations consultant, and Paul Stewart, its chairman.

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.'

SAGICOR GROUP: Records Lower 3rd Quarter Profit
RJR News reports that there was a decline in third quarter profit
at Sagicor Group.  It amounted to a little over J$1 billion,
compared to J$1.52 billion during the corresponding period last

Sagicor Group said the latest results were affected by large costs
for re-branding as well as rationalizing operations following the
RBC Jamaica acquisition, higher taxes and lower unrealized foreign
exchange when compared to last year, according to RJR News.

The report notes that the 2013 results included the negative
impact of the National Debt Exchange (NDX).

Headquartered in St. Michael, Barbados, Sagicor Financial
Corporation -- is a financial
services company, and through its subsidiaries, offers life and
health insurance, annuities, pensions, property and casualty
insurance, and banking services in the Caribbean, Latin America,
the United Kingdom, and the United States.  Its Sagicor Life Inc
segment offers life and health insurance, annuities, and pension
investment administration services in Barbados, Eastern Caribbean,
Dutch Caribbean, Bahamas, Central America, and Trinidad and

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2013, Standard & Poor's Ratings Services said that the
'BB+' financial strength and counterparty credit ratings on
Sagicor Life Inc. (Sagicor) and its 'BB-' issue-level ratings on
Sagicor Finance Ltd. remain on CreditWatch with negative
implications where S&P placed them on Feb. 13, 2012.


ELEMENTIA S.A.: Moody's Upgrades Corporate Family Rating to Ba2
Moody's de Mexico upgraded to Ba2 from Ba3 Elementia, S.A.'s
corporate family rating. At the same time, Moody's upgraded to
Ba2/ from Ba3/ senior unsecured ratings on its
certificados burs tiles ELEMENT 10. The ratings outlook is stable.

Ratings Affected

- Corporate family rating: Rating upgraded to Ba2 from Ba3. Stable

- MXN 3,000 million certificados burs tiles due 2015: Rating
upgraded to Ba2 / from Ba3 / Stable outlook.

Rating Rationale

The upgrade reflects Elementia's improved credit profile following
a de-leveraging process after sizeable investments and
acquisitions. The reduction in leverage not only reflects the
company's ability to integrate new businesses but is also in line
with its commitment to quickly de-lever following acquisitions.
The rating is also supported by its solid market position in Latin
America, diverse product diversification and positive business
prospects in its region of operations. Balancing these positives
is the volatile nature of the construction segment and raw
materials, resulting in business cyclicality. Event risk given the
high acquisitive profile of the company also affects the rating.
Moody's expectation that cash generation will remain pressured by
additional capacity projects is also considered.

Elementia's credit metrics are adequate for the rating category
with Moody's adjusted leverage (debt/EBITDA) of 2.7x and EBITA /
Interest expense of 3.2x as of September 30, 2014. Moreover, the
company has been able to reduce leverage from 3.6x in 2011,
despite the challenging operating conditions in the Mexican market
and the sizeable acquisitions and high capital expenditures
related with the start up of its cement division. EBITA margin of
around 9.9% is adequate for the rating and Moody's expect to
continue to improve as the cement division increases its
contribution to overall results and efficiency weights in
Elementia's profitability.

Currently Elementia's liquidity is tempered by committed payments
to Lafarge following acquisition of its 47% stake in Fortaleza and
upcoming debt maturities. Internal cash needs are adequately
covered by the company's cash on hand of USD 100 million and free
cash flow of (USD 140 million for the last twelve months (LTM)
ended in September 2014), coupled by USD 300 million available
under committed lines. But by the end of 2014, Elementia will need
to pay USD 180 million to Lafarge and the following year USD 45
million. Also in 2015, the company will face the maturity of its
MXN 3 billion (around USD 230 million) local notes due in October.
These extraordinary cash needs pose liquidity pressures. Elementia
is currently planning a global placement. Use of proceeds will be
to fund the payments to Lafarge and to refinance debt.
Successfully placed, the issuance will result in a strong
liquidity profile given a comfortable maturity profile and
increased ability to conduct investment plans. The most relevant
plan includes the addition of a new cement line that will increase
capacity in 1.3 million tons, resulting in a 65% increase in
current capacity, and will allow Elementia to increase its market
share to 8% from 5%. The project's total investment amounts USD
273 million, with USD 82 million expected in 2015 and USD 139
million in 2016. Additionally, the company is planning to have an
IPO in the following year that could further improve its liquidity
supporting its ability to continue its growth strategies.

The stable rating outlook reflects Moody's expectation that
business prospects in Elementia's regions of operations will
remain strong in upcoming years, given large infrastructure
projects and positive housing fundamentals. These strong
fundamentals should help Elementia achieve its projected growth
and profitability improvement as well as its deleveraging plan.

Elementia's ratings could be upgraded if the company's
profitability improves beyond current expectations given stronger
than anticipated business fundamentals in the regions in which
operates with lower competitive pressures than currently
anticipated. Quantitatively, an upgrade would require adjusted
EBITA margin close to 14% and adjusted debt/EBITDA below 2.5 times
and interest coverage close to 5.0x.

The ratings could be downgraded if the company's margins
deteriorates such that EBITA margin falls below 10%, or if
leverage increases, for example due to a debt-finance acquisition,
above 3.5x on a sustained basis with no clear plan to de-lever. A
deterioration in liquidity or an acquisition that is not accretive
could also lead to a downgrade.

Elementia is a major manufacturer of semi-finished copper, alloy,
fiber cement, cement, and plastic products with consolidated
revenues of close to USD1.1 billion for the 12 months ended
September 30, 2014. The company has four business segments:
metals, building systems (fiber cement products), plastics, and
cement. Although the majority of Elementia's operations are in
Mexico, it also has presence in seven Latin American countries
(Peru, Colombia, Ecuador, Bolivia, Costa Rica, Honduras, El
Salvador and Colombia). Elementia is majority owned (51%) and
controlled by the Del Valle family through Grupo Empresarial Kaluz
(not rated). Grupo Carso (not rated) holds a 46% interest and the
remaining 3% is held by private investors.

The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014.

The period of time covered in the financial information used to
determine Elementia S.A.'s rating is between January 1, 2009 and
September 30, 2014 (source: Bolsa Mexicana de Valores (BMV)).


LATAM: Corporates to Face Challenging Conditions, Fitch Says
Latin American corporates are facing challenging conditions in
2015, according to a new Fitch Ratings report.

'Latin America corporate credit quality has been weakening during
the past two years.  A reversal of this trend is not on the
horizon for 2015,' said Joe Bormann, Managing Director at Fitch.
'Cash flow is expected to remain under pressure due to weak
domestic demand and soft commodity prices.  Downgrades will likely
outpace upgrades.  Refinancing risk is high for small issuers
rated in the 'B' category.'

Brazilian corporates face a difficult environment.  Downgrades
could outpace upgrades by a ratio of 2:1x in 2015.  Default risk
will remain high for corporates in the sugar and ethanol sector.
Domestic demand should remain weak as business and consumer
confidence are not projected to recover significantly.  Inflation
is projected to remain high in Brazil during 2015.  Energy
rationing is an outlying risk that could accelerate the level of
negative rating actions.  Scaling back capex and controlling costs
will be key corporate initiatives in the absence of growing

Downgrades are also expected to outpace upgrades during 2015 in
Chile and Peru.  In Chile, macroeconomic conditions remain
challenging and domestic demand should be subdued.  Energy costs
are elevated and will not decline in the near term.  Tax changes
will further pressure corporate cash flow.  Peruvian corporates
continue to adjust to slower growth than projected for 2014.  The
weak economic performance in 2014 has sapped the spending power of
middle and lower income Peruvian consumers.

The near-term outlook for Colombian corporates is stable.
Liquidity is strong and rollover risk is low.  The benign credit
environment is due to strong economic fundamentals.  Both consumer
and industrial confidence continue to be positive and slightly
higher than in the previous year.  Unemployment, while in the
neighborhood of 10%, has been trending lower.

Mexico stands out as the market where upgrades are likely to
outpace downgrades.  Macroeconomic conditions are improving.  Most
Mexican corporates have adequate liquidity positions to face
upcoming debt amortizations.  Fitch projects that corporate free
cash flow will remain mildly positive.  Corporate governance
remains a concern for many 'B' rated issuers.

The 2015 Argentine corporate outlook is negative.  Corporate
default risk is high.  The risk that companies will be prohibited
from transferring dollars abroad or converting pesos into U.S.
dollars or euros to service debt remains high, as capital controls
continue to increase.


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.
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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
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

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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,
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