/raid1/www/Hosts/bankrupt/TCRLA_Public/141121.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, November 21, 2014, Vol. 15, No. 231
Headlines
A N T I G U A & B A R B U D A
ANTIGUA & BARBUDA: Unionist Says Workers Were Dismissed Unfairly
A R G E N T I N A
ARGENTINA: Moody's Says Caa1 Rating Balances Economic Development
B R A Z I L
BANCO DO BRASIL: To Form US$4.5 Billion Card Venture With Cielo SA
CAMARGO CORREA: Fitch Puts 'BB' IDR on CreditWatch Negative
CEMIG GERACAO: Moody's Downgrades Issuer Rating to Ba1
MARFRIG HOLDINGS: Moody's Assigns Ba2 Rating on USD600MM Notes
OAS SA: Moody's Affirms B1 CFR & Changes Outlook to Negative
SAO MARTINHO: S&P Affirms 'BB+' CCR; Outlook Stable
C A Y M A N I S L A N D S
AIDCO INTERNATIONAL: Placed Under Voluntary Wind-Up
BE PURRFECT: Placed Under Voluntary Wind-Up
BROMAC HOLDINGS: Placed Under Voluntary Wind-Up
CARAVAGGIO FUND: Placed Under Voluntary Wind-Up
CT SECRETARY: Placed Under Voluntary Wind-Up
DORSET INVESTMENTS: Placed Under Voluntary Wind-Up
GALLOWAY PROPERTIES: Placed Under Voluntary Wind-Up
LDK SOLAR: Hong Kong Court Sanctions Schemes of Arrangement
LDK SOLAR: Court Okays Joint Administration of 3 Chap. 11 Cases
LION PROPERTIES: Placed Under Voluntary Wind-Up
NBK PEP: Commences Liquidation Proceedings
PEP OFFSHORE CEDAR: Commences Liquidation Proceedings
PEP OFFSHORE ODYSSEY: Commences Liquidation Proceedings
PEP OFFSHORE SP II: Commences Liquidation Proceedings
SUNTECH POWER: Wins Ch.15 Recognition; Venue Transfer Bid Tossed
D O M I N I C A N R E P U B L I C
DOMINICAN REP: Senate Scrambles as Pension Fund Scandal Widens
H A I T I
HAITI: 2014 Economic Activity Advanced at a Pace of 3 1/2-4%
M E X I C O
GRUPO FERTINAL: S&P Affirms Then Withdraws 'CCC-' Rating
SIXSIGMA NETWORKS: S&P Assigns 'BB-' Corporate Credit Rating
T R I N I D A D & T O B A G O
NATIONAL PETROLEUM: Big Win for Strikers
PETROTRIN: Trims Budget After Sharp Drop in Crude Oil Prices
V E N E Z U E L A
VENEZUELA: US$4 Billion Boost to Reserves Wins Investor Approval
- - - - -
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A N T I G U A & B A R B U D A
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ANTIGUA & BARBUDA: Unionist Says Workers Were Dismissed Unfairly
----------------------------------------------------------------
The Daily Observer reports that trade unionist David Massiah said
the 20-plus Transport Board workers severed were victimized and
unfairly dismissed, and, as their bargaining agent, through the
Antigua and Barbuda Worker's Union, he's calling for an urgent
meeting with management.
Mr. Massiah said he and the workers are willing to "fight the
matter" at all levels if necessary, if management fails to
satisfactorily address the matter, according to The Daily
Observer.
The trade unionist said he's certain the workers were victimised
because, according to several of them, two of their colleagues who
are known supporters of the current administration, went to the
minister who allegedly sent them back to work, the report notes.
"That's why we are saying it is victimization. They have not
justified why those other workers were severed. They have not
done or provided the union with an appraisal of their performance
and they have hired new people, while those who were there from
2004, 2006 and onwards were sent home," Mr. Massiah charged, the
report notes.
The workers' advocate added that the Board breached the bargaining
agreement in several ways, including the last-in-first-out
principle when it comes to deciding who should be sent home in
times of financial difficulties, the report relays.
On Nov. 14, twenty two transport Board workers were severed and
Massiah said they were told the Board would address the issue of
the severance pay and benefits on November 20, the report
discloses.
Based on a letter to the union, from the Board, another 40 workers
are likely to be axed, the report relays. No timeframe was stated
with regards to when this would be done, the report adds.
* * *
As reported in the Troubled Company Reporter-Latin America on
September 23, 2014, The Daily Observer said that Antigua & Barbuda
could soon find itself in the company of Japan, Zimbabwe, and
Greece, the countries with the highest national debts.
In the January 2014 budget presentation, the former administration
indicated that the nation's debt was 87 per cent of GDP, according
to The Daily Observer. However, Prime Minister Gaston Browne has
disputed the figure, deeming it to be as high as 130 per cent, the
report noted.
Minister Browne said while his government's increased borrowing is
pushing up the nation's debt-to-GDP ratio, it is necessary to
solve the country's problems, the report related.
=================
A R G E N T I N A
=================
ARGENTINA: Moody's Says Caa1 Rating Balances Economic Development
-----------------------------------------------------------------
Argentina's Caa1 rating balances the country's economic
development and moderate government debt metrics with ongoing
weaknesses linked to the country's policy mix, political
volatility and the limited funding options, says Moody's Investors
Service in its latest annual report on the country. The Caa1
issuer rating applies to Argentina's domestic legislation debt;
its foreign legislation debt is rated one notch lower at (P)Caa2.
"Even though Argentina's economy is larger and wealthier than its
peers', the country is mired in an economic recession," says
Gabriel Torres, a Moody's vice president. "We expect a contraction
in GDP of 2% or more this year and a recovery that will at best be
modest, in 2015-16."
The economic slowdown has numerous causes, among them, weakening
investment, rising inflation, growing import constraints and
declining demand from Brazil, a key trade partner with its own
growth challenges. However, the bigger credit issue is the
weakening outlook for growth.
Argentina's economic growth has averaged 4.7% since 2007,
generally outpacing its rated peers, and almost double the Caa
media, but growth will be significantly lower because of high
inflation and price distortions. Unofficial estimates place
inflation as high as 40% a year, and price controls and broad-
based government interference have damaged investment prospects,
particularly in the energy sector, where a lack of investment has
led to a rise in energy imports, turning the country's overall
energy trade balance into a trade deficit.
At the same time, politics is having its effect. Haphazard
policymaking and a very contentious political process culminated
directly in the July 2014 default, which was unrelated to the
country's economic and fiscal fundamentals. Furthermore, the
replacement of the leadership of INDEC, the country's national
statistical office, has resulted in a profound lack of market
confidence in Argentina's official data, with the biggest concern
being the impact of underreporting on debt payments. Reliability
issues have also spread to other indicators, including national
income accounts and poverty metrics.
"The government's inconsistent economic policy decisions and
ongoing questions about the reliability of official statistics
make it extremely difficult for anyone to determine with certainty
what the country's economic conditions really are," adds Torres.
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B R A Z I L
===========
BANCO DO BRASIL: To Form US$4.5 Billion Card Venture With Cielo SA
------------------------------------------------------------------
Francisco Marcelino and Jonathan Roeder at Bloomberg News report
that Cielo SA will form a joint venture valued at BRL11.6 billion
(US$4.5 billion) to manage debit- and credit-card transactions of
Banco do Brasil SA, Latin America's largest lender by assets.
Cielo SA, Brazil's largest card-payment processor, will hold a 70
percent stake in the new company and the Brasilia-based lender
will have 30 percent, the companies said in separate statements
obtained by Bloomberg News. Cielo SA will invest BRL8.1 billion
in the operation, to be financed through a reduction in
shareholder dividends and the sale of bonds in the Brazilian
market, the Barueri-based company said, according to Bloomberg
News.
Cielo SA is seeking to diversify amid competition from newcomers
in the Brazilian card-payment market, Bloomberg News notes. In
April, Banco Santander Brasil SA agreed to pay BRL1.1 billion to
acquire Getnet Tecnologia em Captura & Processamento de Transacoes
H.U.A.H. SA. Citigroup Inc. and U.S. Bancorp's Elavon formed a
card-payment joint-venture in December 2010, Bloomberg News
relates.
"The initiative is aligned with Cielo SA's strategic plan to add
value to its shareholders boosting growth, diversifying revenues
from electronic revenues and improving operating efficiency,"
Cielo Chief Executive Officer Romulo Dias said in an e-mailed
statement obtained by Bloomberg News.
Cielo SA has risen 32 percent this year in Sao Paulo, compared
with 13 percent for Banco do Brasil.
Cielo SA is controlled by Banco do Brasil and Banco Bradesco SA,
Latin America's second-biggest bank by market value, Bloomberg
News. Cielo SA said it will call for an extraordinary shareholder
meeting to change its bylaws to reduce the minimum annual dividend
to 30 percent of its profit from the current 50 percent, Bloomberg
News adds.
As reported in the Troubled Company Reporter-Latin America on Oct.
1, 2014, Standard & Poor's Ratings Services has raised its rating
on Banco do Brasil S.A.'s (BdB) perpetual non-cumulative
subordinated bonds to 'BB-' from 'B+'. In addition, S&P affirmed
its 'BB' rating on the bank's $500 million 10-year subordinated
deferrable notes. In addition, S&P removed its "Under Credit
Observation" identifier from the ratings on these instruments.
CAMARGO CORREA: Fitch Puts 'BB' IDR on CreditWatch Negative
-----------------------------------------------------------
Fitch Ratings has placed the ratings of all Brazilian heavy
construction companies on Rating Watch Negative. This action
reflects Fitch's concerns about the financial and business impact
upon these corporates of corruption allegations regarding
contracts between Petrobras and multiple companies in the sector.
As the federal investigation continues, key areas of concern
include:
-- The financial impact upon the companies of a more
challenging operating environment due to the high
concentration of the backlog of several companies with the
government;
-- Potential suspensions, delays, or partial writedowns of
existing receivables and claims with Petrobras;
-- Potential restructuring, suspension, or delays under
existing contracts between Petrobras and certain corporates
in the sectors;
-- Increased scrutiny of any existing or future contracts with
Petrobras or any other government entity;
-- The inability of certain companies in the sector to
participate in future projects with government entities;
-- A reduction in access to funding from private banks, capital
markets, and government related entities such as BNDES;
-- A slowdown in the pace of private concession agreements,
since corporates in this sector often act as investors,
operators and/or contractors;
-- Probable financial penalties.
The degree of impact of the increasingly negative operating
environment will vary by company. More clarity on these issues is
expected within six months and individual ratings will be adjusted
accordingly.
Fitch has placed these ratings on Rating Watch Negative:
Camargo Correa S.A.:
-- Foreign currency Issuer Default Rating (IDR) 'BB';
-- Local currency IDR 'BB';
-- National long term rating 'AA-(bra)';
-- National short term rating 'F1(bra)';
-- BRL1 billion debentures 2nd issuance due 2014 'AA-(bra)'.
CCSA Finance Limited:
-- Foreign currency IDR 'BB';
-- Local currency IDR 'BB';
-- US$250 million senior unsecured bonds due 2016 'BB'.
Construtora Andrade Gutierrez S.A.
-- Foreign currency IDR 'BBB-';
-- Local currency IDR 'BBB-';
-- National scale rating 'AA(bra)'.
Andrade Gutierrez International S.A.
-- US$500 million senior unsecured bonds due 2018 'BBB-'.
Construtora Norberto Odebrecht S.A.:
-- Foreign currency IDR 'BBB';
-- Local currency IDR 'BBB';
-- National scale rating 'AAA(bra)'.
Odebrecht Finance Limited:
-- Foreign currency IDR 'BBB';
-- BRL500 million senior unsecured notes due 2018 'BBB';
-- USD500 million senior unsecured notes due 2020 'BBB';
-- USD600 million senior unsecured noted due 2022 'BBB';
-- USD800 million senior unsecured notes due 2023 'BBB';
-- USD550 million senior unsecured notes due 2025 'BBB';
-- USD500 million senior unsecured notes due 2029 'BBB';
-- USD850 million senior unsecured notes due 2042 'BBB';
-- USD750 million perpetual bonds 'BBB'.
OAS S.A.:
-- Foreign currency IDR 'B+';
-- Local currency IDR 'B+';
-- National scale rating 'BBB+(bra)';
-- BRL300 million debentures 3rd issuance due 2016 'BBB+(bra)';
-- BRL250 million debentures 4th issuance due 2027 'BBB+(bra)';
-- BRL300 million debentures 5th issuance due 2015 'BBB+(bra)'.
Construtora OAS S.A.:
-- Foreign currency IDR 'B+';
-- Local currency IDR 'B+';
-- National scale rating 'BBB+(bra)'.
OAS Investments GmbH:
-- Foreign currency IDR 'B+';
-- USD850 million senior unsecured notes due 2019 'B+'/'RR4'.
OAS Finance Ltd.:
-- USD500 million perpetual bonds 'B+'/'RR4'.
-- USD400 million senior unsecured noted due 2021 'B+'/'RR4'.
Construtora Queiroz Galvao S.A.:
-- National scale rating 'AA-(bra)'.
Galvao Participacoes S.A.:
-- Foreign currency IDR 'B+';
-- Local currency IDR 'B+';
-- National scale rating 'BBB+(bra)';
-- BRL300 million senior unsecured notes due 2020 'BBB+(bra)'.
Galvao Engenharia S.A.:
-- National scale rating 'BBB+(bra)'.
In conjunction with these actions, Fitch has downgraded the
foreign and local currency Issuer Default Ratings (IDR) of Mendes
Junior Trading e Engenharia S.A. (MJTE) to 'B-' from 'B' and its
national scale rating to 'BB(bra)' from 'BBB(bra)'. MJTE's
ratings also remain on Rating Watch Negative.
MJTE is the most vulnerable corporate in the sector to a
deterioration in the market's perception of the industry due to
its weak liquidity position. As of June 30, 2014, MJTE's cash
balance was BRL50 million and it had BRL189 million of short-term
debt.
CEMIG GERACAO: Moody's Downgrades Issuer Rating to Ba1
------------------------------------------------------
Moody's America Latina took the following rating actions related
to CEMIG Geracao e Transmissao S.A. (CEMIG-GT) and Companhia
Energetica de Minas Gerais (CEMIG, the Holding Company):
(i) CEMIG-GT: Downgraded issuer ratings to Ba1 (global scale) and
Aa2.br (Brazil national scale) from Baa3 and Aa1.br, respectively;
Downgraded senior unsecured guaranteed outstanding debentures to
Ba1 (global scale) and Aa2.br (Brazil national scale) from Baa3
and Aa1.br, respectively; Moody's also assigned a rating of Ba1
(global scale) and Aa2.br (Brazil national scale) to the proposed
BRL 1.4 billion senior unsecured guaranteed debentures due 2018;
outlook remains negative
(ii) CEMIG (Holding Company): Affirmed issuer ratings at Ba1
(global scale) and Aa2.br (Brazil national scale); outlook remains
negative
Ratings Rationale
The downgrade of CEMIG GT's issuer and debt ratings to Ba1 and
Aa2.br from Baa3 and Aa1.br, respectively, primarily reflects
Moody's forecast of deteriorating credit metrics of CEMIG-GT on a
stand-alone basis amid an expected material increase in the level
of debt and the payment of substantial dividend prior to the end
of the year. In addition, Moody's continue to expect a weakening
of CEMIG's consolidated financial position amid the increasing
level of uncertainties and challenges in the Brazilian electricity
sector as a whole due to the negative impact of the significant
decline in the level of the hydroelectric water reservoirs in the
Southeastern part of the country, the continuing negative impact
of high thermal power costs due to the persistent drought
conditions of the last two years, and the likely return of
concessions to the Federal Government which account for a
significant volume of CEMIG GT's physical energy.
The assignment of Ba1 and Aa2.br for the proposed BRL 1.4 billion
senior unsecured guaranteed debentures due 2018 reflect the stand-
alone credit quality of CEMIG GT's and the guarantee provided by
CEMIG to these debentures; it also reflects an increasing level of
uncertainty related to CEMIG-GT's credit metrics in Moody's
forward looking perspective given the increasing level of dividend
distributions and the recent request for comment by ANEEL-- the
National Electricity Regulation Agency -- from market participants
to alter the current calculation methodology of the electricity's
spot price (PLD) which could substantially reduce the high spot
prices that have existed and benefitted CEMIG GT for most of this
year. The proceeds of the new debentures will be used as follows:
(i) increase of cash reserves, reduced mainly due to recent equity
investments and acquisitions by CEMIG-GT (ii) repayment of
outstanding debt maturing in the first half of 2015.
The ratings could be downgraded further if (i) CEMIG and CEMIG-GT
do not adjust their respective dividend distributions and
operating costs in a substantial way to reflect the current
economic reality confronting the Brazilian electricity sector (ii)
the companies continue to make large equity investments or
acquisitions that are not expected to generate substantial
operating cash flows in the near term, or (iii) the companies fail
to secure long-term financing at reasonable terms that will allow
both companies to preserve an adequate level of liquidity and a
robust capital structure.
According to Moody's standard adjustments, from December 31, 2013
to September 30, 2014, CEMIG-GT's metrics: (i) CFO pre-W/C
decreased to BRL 261.9 million from BRL 2,253.2 million, an 88%
decrease driven primarily by acquisition of electricity at high
spot prices; (ii) CFO pre-W/C minus Dividends-to-Debt ratio
decreased to 8.9% from 36.8% driven primarily by additional
dividend distributions; (iii) CFO pre-WC Interest Coverage
decreased to 2.8x from 7.4x; (iv) CFO pre-WC-to-Debt increased to
46.6% from 45.6%; and (v) Debt/EBITDA increased to 1.6 times from
1.5 times. According to Moody's forward looking perspective, the
period of June 30, 2014 to 2016 reflect average (i) CFO pre-W/C of
BRL 1,477.4 million; (ii) CFO pre-W/C minus Dividends-to-Debt
ratio of 1.9%; (iii) CFO pre-WC Interest Coverage of 3.2x; (iv)
CFO pre-WC-to-Debt of 18.0%; and (v) Debt/EBITDA of 4.0x.
Ratings Outlook
The negative outlook on all ratings reflects the current negative
outlook for the State of Minas Gerais (Baa3/negative), which
controls CEMIG, and Moody's expectation that the electricity
sector overall in Brazil will continue to suffer a decline in
operating margins for the remainder of 2014 and likely well into
2015 given the drought conditions and the uncertainties regarding
the federal government's future actions with respect to cost
recoveries. Furthermore, the potential return of large generation
concessions by CEMIG-GT in the short to medium term could
potentially further weaken the Company's overall liquidity
position given the recently announced extraordinary dividends.
What Could Change the Rating -- Up/Down
As Moody's expect the credit metrics will further deteriorate over
the remainder of 2014 and potentially into 2015 and 2016, an
upgrade rating action is very unlikely in the short-to medium term
despite the high prices being realized by CEMIG-GT in the spot
market this year. A stabilization of the outlook could be
considered in the case of:
CEMIG: (i) Cash flow interest coverage ratio stays above 4.0x, and
(ii) Retained Cash Flow / Debt remains above 15% on a sustainable
basis.
CEMIG-GT: (i) Cash flow interest coverage ratio stays above 4.0x,
and (ii) Retained Cash Flow / Debt remains above 15% on a
sustainable basis.
Moody's would consider downgrading the ratings if there was a
material deterioration in the Company's credit metrics.
Quantitatively, there would be pressure for a downgrade action in
case of:
CEMIG: (i) Cash flow interest coverage ratio falls below 3.5x, and
(ii) Retained Cash Flow / Debt stays below 10% for an extended
period.
CEMIG-GT: (i) Cash flow interest coverage ratio falls below 4.0x,
and (ii) Retained Cash Flow / Debt staysd below 12% for an
extended period.
A downgrade of the State of Minas Gerais could also precipitate a
downgrade rating action for CEMIG's issuer ratings.
CEMIG is an integrated power utility group, with equity stakes in
more than 200 companies, operating in the electricity generation,
transmission and distribution sectors. CEMIG is publicly traded on
the local (BM&FBOVESPA), New York (NYSE) and Madrid (LATIBEX)
stock exchanges. The government of the State of Minas Gerais holds
50.96% of CEMIG's voting capital and 22% of its total capital.
CEMIG is currently the largest integrated electricity utility in
Brazil. CEMIG-D, the distribution company of CEMIG Group, is one
of the largest distribution companies in Brazil, with a total
concession area of 567,478 square kilometers (Km2), serving 774
cities, and 7.9 million consumers. As of 2013, after Moody's
standard adjustments, CEMIG-D accounted for 61% of CEMIG's
consolidated net sales, 35% of consolidated EBITDA, and 59% of
consolidated indebtedness. CEMIG-D is CEMIG's second largest
company in terms of EBITDA, following CEMIG-GT, which accounts for
approximately 61% of CEMIG's consolidated EBITDA. CEMIG is
currently one of the largest Brazilian electricity generation
groups, with total installed capacity of 7,468 MW. CEMIG controls
both CEMIG-D and CEMIG-GT owning 100% of their voting capital.
The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in December 2013. Other
methodologies used include the Government-Related Issuers
methodology published in October 2014.
MARFRIG HOLDINGS: Moody's Assigns Ba2 Rating on USD600MM Notes
--------------------------------------------------------------
Moody's Investors Service assigned a B2 foreign currency rating to
Marfrig's proposed USD 600 million senior unsecured notes due 2022
to be issued by Marfrig Holdings (Europe) B.V. and irrevocably and
unconditionally guaranteed by Marfrig Global Foods S.A.
("Marfrig") and by Marfrig Overseas Limited. The deal is part of
Marfrig's liability management strategy and net proceeds from the
issuance will be mainly used to tender part of the company's
outstanding notes due 2020. The rating outlook is stable.
The rating of the proposed notes assumes that the final
transaction documents will not be materially different from draft
legal documentation reviewed by Moody's to date and assume that
these agreements are legally valid, binding and enforceable.
Ratings unchanged:
Issuer: Marfrig Global Foods S.A.
- Corporate Family Rating: B2 (global scale)
Issuer: Marfrig Overseas Limited:
- USD 375 million 9.625% senior unsecured guaranteed notes due
2016: B2 (foreign currency)
- USD 500 million 9.500% senior unsecured guaranteed notes due
2020: B2 (foreign currency)
- USD 275 million 9.500% senior unsecured guaranteed notes due
2020: B2 (foreign currency)
Issuer: Marfrig Holdings (Europe) B.V.:
- USD 750 million 8.375% senior unsecured guaranteed notes due
2018: B2 (foreign currency)
- USD 600 million 9.875% senior unsecured guaranteed notes due
2017: B2 (foreign currency)
- USD 400 million 11.250% senior unsecured guaranteed notes due
2021: B2 (foreign currency)
- USD 850 million senior unsecured notes due 2019: B2 (foreign
currency)
Ratings assigned:
Issuer: Marfrig Holdings (Europe) B.V.:
- Proposed USD 600 million senior unsecured notes due 2022: B2
(foreign currency)
The outlook for all ratings is stable.
Ratings Rationale
Marfrig's B2 ratings are supported by its diversified portfolio of
animal proteins, as well as large geographic footprint and global
distribution capabilities. The company's diversity in terms of raw
material sourcing reduces risks related to weather and animal
diseases, while its large product portfolio helps to mitigate the
volatility inherent to commodity cycles and supply-demand
conditions for each specific protein. In addition, Moody's view
BNDES' (Brazilian National Development Bank) support to the
company and its improved liquidity and debt profile following the
divestiture of Seara and proactive liability management
initiatives as credit positives.
On the other hand, the ratings are constrained by Marfrig's still
elevated leverage, low interest coverage and historically
pressured operating performance and cash generation. Although in
the past there was a lack of clarity over the company's growth
strategy and in its financial policies, Moody's have observed
since early 2013 a clear focus to grow organically, pursue a lower
leverage and improve cash flow generation, which should lead to a
gradual improvement in credit metrics.
The divestiture of its poultry/processed food assets in Brazil in
June 2013 led to a meaningful improvement in the company's
liquidity profile. After the divestiture, annual working capital
needs were lowered by approximately BRL 800 million and cash
generation from operations has been improving and should allow for
neutral to positive free cash flow generation in the FY2014. As a
consequence, adjusted leverage was reduced to 6.0x in the 2Q14
from 6.6x in the 3Q13 and 8.1x in the 2Q13. At the same time,
short-term debt declined to around BRL 1 billion, from BRL 2.2
billion in June 2013.
As of September 2014, the company's total cash balance of BRL 3.0
billion was sufficient to cover reported short term debt by 2.5x.
Additionally, the company currently holds, through its subsidiary
Keystone, BRL 350 million in available committed facilities.
Throughout 2014, Marfrig reopened its 2020 notes, issuing
additional USD 275 million; issued USD 850 million in notes due
2019 and GBP 250 million in notes through its subsidiary Moy Park.
All issuances targeted a reduction in the company's annual
interest expense and the optimization of its liability allocation,
which should support a more adequate capital structure going
forward. The proposed deal is an additional liability management
initiative and proceeds will be mainly channeled to tender part of
the company's outstanding notes due 2020.
The stable outlook reflects Moody's view that Marfrig will be able
to maintain operating margins and liquidity near current levels
and improve credit metrics over the near term.
The ratings or outlook could be upgraded if Marfrig demonstrates
consistent and predictable execution of its financial policy with
the ability to improve liquidity and keep operating margins at
least near current levels. In addition, it would require a CFO/Net
Debt approaching 15% and a Total Debt / EBITDA below 4.5x.
Marfrig's ratings could be downgraded if a consistent and
predictable financial policy execution is not observed going
forward. A downgrade could also be triggered if liquidity were to
deteriorate in a way that unrestricted cash position would
represent less than 80% of short term debt. Quantitatively,
downward pressure on Marfrig's B2 rating or outlook is likely if
Total Debt / EBITDA is sustained above 6.0x, EBITA to gross
interest expense falls below 1.0x or if Retained Cash Flow to Net
Debt is below 10%. All credit metrics are according to Moody's
standard adjustments and definitions.
Marfrig, headquartered in Sao Paulo, Brazil, is one of the largest
protein players globally, with consolidated revenues of BRL 20.1
billion (approximately USD 8.8 billion) in the last twelve months
period ended in September, 2014. The company has significant scale
and is diversified in terms of sales, raw materials and product
portfolio, with operations in Brazil, US, UK and many other
countries and presence in the beef, poultry and food service
segments.
OAS SA: Moody's Affirms B1 CFR & Changes Outlook to Negative
------------------------------------------------------------
Moody's Investors Service has affirmed the B1 ratings assigned to
OAS S.A. (OAS) and its guaranteed debt issuances at OAS
Investments GmbH (OIG) and OAS Finance Limited (OFL). At the same
time, Moody's changed the rating outlook for all ratings to
negative from stable.
Ratings affirmed:
Company: OAS S.A. (OAS)
--Corporate Family Rating: B1
Issuer: OAS Finance Limited (OFL)
-- USD500 million Perpetual Notes: B1
-- USD400 million senior unsecured notes due 2021: B1
Issuer: OAS Investments GmbH (OIG)
--USD875 million senior unsecured notes due 2019: B1
The outlook for all ratings was changed to negative from stable.
Ratings Rationale
The change in the ratings outlook to negative was prompted by
Moody's perception of increased operating risk for OAS on the back
of corruption allegations that involve its main executives.
Although investigations are still ongoing and no conclusions have
been reached, Moody's believe that these events could negatively
affect the execution of OAS growth strategy in the near term.
The negative outlook also reflects prospectively weaker credit
metrics and persistent high leverage ratios for the company over
the next twelve-to-eighteen months, pressured by higher inflation
and interest rates. Brazil's soft macroeconomic environment and
fiscal challenges could result in lower investment rates and fewer
projects being placed for auction in 2015, as well as delays in
the approval of claims for margin recovery in public projects.
OAS's B1 rating reflects the company's large position in the
Brazilian construction market, solid track record of execution,
and strong construction backlog of BRL22.5 billion that provides
visibility for near term revenue generation. The rating also
considers the company's adequate liquidity position and enhanced
debt maturity profile. Constraining OAS' rating is its high
leverage resulting from the debt-funded business expansion and
evolving corporate governance practices.
OAS' ratings could be downgraded if Moody's anticipates a further
deterioration in the operating environment (stemming from economic
slowdown and/or judicial and administrative proceedings),
negatively impacting OAS' margins or its financing strategy and
liquidity profile. Quantitatively, the ratings may be downgraded
if there is no improvement in credit metrics, for example if its
retained cash flow to net debt remains below 5% (4.2% as of June
30, 2014) or the EBITA interest coverage remains below 1.0 times
(0.7 times as of June 30, 2014) for a prolonged period.
An upgrade of the ratings is unlikely at this time, but the
ratings outlook could be stabilized if the company is able to
sustain revenue growth and adequate operating performance, while
gradually improving its leverage ratios. Quantitatively a rating
stabilization would require the company's gross debt to adjusted
EBITDA to remain below 6.5x (7.4x as of June 30, 2014), along with
an adequate liquidity profile.
The principal methodology used in this rating was Global
Construction Methodology published in November 2010.
Headquartered in Sao Paulo, Brazil, OAS S.A. (OAS) is a major
engineering, construction and infrastructure investment company in
Brazil. The company has presence in 19 countries, with
construction works in 16 countries: Brazil, 10 countries in Latin
America and five countries in Africa. OAS also has 23
infrastructure projects in its portfolio. In the last twelve
months ended June 30 2014, the company generated consolidated net
revenues of about BRL8.1 billion (USD3.2 billion) and adjusted
EBITA of BRL900 million (USD360 million).
SAO MARTINHO: S&P Affirms 'BB+' CCR; Outlook Stable
---------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' global scale
and 'brAA+' Brazil national scale corporate credit ratings on Sao
Martinho S.A. (SMO). The outlook on both scale ratings remains
stable. S&P don't rate any of the company's debt.
The ratings affirmation reflects SMO's ability to withstand
currently difficult industry condition with a limited use of
additional debt, while it continues to expand. The company's
above-average profitability will enable it to generate sound
operating cash flows, fund its capex plan which includes the
recently acquired Santa Cruz mill and its related investments,
resulting in free operating cash flow of about R$100 million in
fiscal 2015. At the same time, its adequate investments in the
sugarcane plantations should mitigate the damage from the drought
in the state Sao Paulo. The drought has reduced the amount of
available sugarcane and output in that state, but S&P still
expects SMO to operate at more than 93% of its capacity.
S&P revised its assessment of SMO's business risk profile to
"satisfactory" rom "fair." Due to SMO's economies of scale in its
sizeable Sao Martinho mill, the positive track record of above-
average productivity levels, adequate investments in the
plantations, and a sound selling strategy, its profitability is
above those of its peers. Moreover, its capacity to cogenerate
and sell excess energy and some product diversification enable it
to generate fairly stable cash flows, even though the industry is
suffering from low global sugar prices. In addition, due to SMO's
proximity to the Santa Cruz mill, S&P believes that the company
will benefit from operating and logistic synergies, which will
further boost operating cash flows. On the other hand, the
company is exposed to unpredictable changes in climate, which
weakened its productivity in Sao Paulo this harvest, and to
commoditized sugar and ethanol prices, which can affect margins.
==========================
C A Y M A N I S L A N D S
==========================
AIDCO INTERNATIONAL: Placed Under Voluntary Wind-Up
---------------------------------------------------
At an extraordinary general meeting held on Oct. 9, 2014, the
shareholders of Aidco International 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
BE PURRFECT: Placed Under Voluntary Wind-Up
-------------------------------------------
At an extraordinary general meeting held on Oct. 8, 2014, the
shareholder of BE Purrfect 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:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
P.O. Box 694 Grand Cayman
Cayman Islands
BROMAC HOLDINGS: Placed Under Voluntary Wind-Up
-----------------------------------------------
At an extraordinary general meeting held on Oct. 8, 2014, the
shareholders of Bromac Holdings 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
CARAVAGGIO FUND: Placed Under Voluntary Wind-Up
-----------------------------------------------
At an extraordinary general meeting held on Oct. 7, 2014, the
shareholders of The Caravaggio Fund 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
CT SECRETARY: Placed Under Voluntary Wind-Up
--------------------------------------------
At an extraordinary general meeting held on Oct. 9, 2014, the
shareholders of CT Secretary 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:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
DORSET INVESTMENTS: Placed Under Voluntary Wind-Up
--------------------------------------------------
On Sept. 22, 2014, the shareholders of Dorset Investments Limited
resolved to voluntarily wind up the company's operations.
The company's liquidators are:
Probitas Limited
Equitas Limited
Clifton House, 75 Fort Street
Grand Cayman KY1-1108
Cayman Islands
GALLOWAY PROPERTIES: Placed Under Voluntary Wind-Up
---------------------------------------------------
On Sept. 22, 2014, the shareholders of Galloway Properties Limited
resolved to voluntarily wind up the company's operations.
The company's liquidators are:
Probitas Limited
Equitas Limited
Clifton House, 75 Fort Street
Grand Cayman KY1-1108
Cayman Islands
LDK SOLAR: Hong Kong Court Sanctions 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, disclosed that, on November 18,
2014, the High Court of Hong Kong sanctioned the Hong Kong schemes
of arrangement of LDK Solar and its subsidiaries, LDK Silicon &
Chemical Technology Co., Ltd. and LDK Silicon Holding Co.,
Limited, each as previously approved by scheme creditors at their
class meetings held on October 17, 2014.
"We are very pleased that the High Court of Hong Kong has
sanctioned our Hong Kong schemes of arrangement, and this
represents a further significant step towards completing our
offshore restructuring," stated Xingxue Tong, Interim Chairman,
President and CEO of LDK Solar. "We now turn our focus to
obtaining the recognition of our LDK Solar Cayman Islands scheme
of arrangement and approval of the terms of our pre-packaged plan
of reorganization from the U.S. Bankruptcy Court. As always, 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 today, November 21,
2014, to consider confirmation of the prepackaged plan of
reorganization and recognition of the Cayman Island scheme of
arrangement of LDK Solar.
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- 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 in February 2014 filed in the Cayman Islands for the
appointment of provisional liquidators, four days before it was
due to make a $197 million bond repayment. Its Joint
Provisional Liquidators are Tammy Fu and Eleanor Fisher, both of
Zolfo Cooper (Cayman) Limited, on Oct. 22.
In September 2014, LDK SOalr, LDK Silicon and LDK Silicon Holding
Co., Limited each applied to file an originating summons to
commence their restructuring proceedings in the High Court of Hong
Kong.
On Oct. 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).
On Oct. 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. The Chapter
15 case is In re LDK Solar CO., Ltd. (Bankr. D. Del., Case No. 14-
12387).
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.
LDK SOLAR: Court Okays Joint Administration of 3 Chap. 11 Cases
---------------------------------------------------------------
The Hon. Peter J. Walsh has approved the joint administration of
the Chapter 11 cases of LDK Solar Systems, Inc., LDK Solar USA,
Inc., and LDK Solar Tech USA, Inc. for procedural purposes.
The pleadings filed in the Debtors' Chapter 11 cases shall bear
consolidated caption in the following form:
In re Chapter 11
LDK SOLAR SYSTEMS, INC., et al., Case No. 14-12384 (PJW)
Debtors Jointly Administered
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- 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 in February 2014 filed in the Cayman Islands for the
appointment of provisional liquidators, four days before it was
due to make a $197 million bond repayment. Its Joint
Provisional Liquidators are Tammy Fu and Eleanor Fisher, both of
Zolfo Cooper (Cayman) Limited, on Oct. 22.
In September 2014, LDK Solar, LDK Silicon and LDK Silicon Holding
Co., Limited each applied to file an originating summons to
commence their restructuring proceedings in the High Court of Hong
Kong.
On Oct. 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).
On Oct. 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. The Chapter
15 case is In re LDK Solar CO., Ltd. (Bankr. D. Del., Case No. 14-
12387).
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.
LION PROPERTIES: Placed Under Voluntary Wind-Up
-----------------------------------------------
On Sept. 22, 2014, the shareholders of Lion Properties Limited
resolved to voluntarily wind up the company's operations.
The company's liquidators are:
Probitas Limited
Equitas Limited
Clifton House, 75 Fort Street
Grand Cayman KY1-1108
Cayman Islands
NBK PEP: Commences Liquidation Proceedings
------------------------------------------
On Oct. 9, 2014, the shareholder of NBK PEP Offshore Odyssey
Holdings Inc. resolved to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
Nov. 20, 2014, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
PEP OFFSHORE CEDAR: Commences Liquidation Proceedings
-----------------------------------------------------
On Oct. 9, 2014, the shareholder of PEP Offshore Cedar Inc.
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Nov. 20, 2014, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
PEP OFFSHORE ODYSSEY: Commences Liquidation Proceedings
-------------------------------------------------------
On Oct. 9, 2014, the shareholder of PEP Offshore Odyssey Holdings
Inc. resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Nov. 20, 2014, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
PEP OFFSHORE SP II: Commences Liquidation Proceedings
-----------------------------------------------------
On Oct. 9, 2014, the shareholder of PEP Offshore SP II Inc.
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Nov. 20, 2014, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
SUNTECH POWER: Wins Ch.15 Recognition; Venue Transfer Bid Tossed
----------------------------------------------------------------
U.S. Bankruptcy Judge Stuart M. Bernstein issued Findings of Fact
and Conclusions of Law granting the petition for Chapter 15
recognition of Suntech Power Holdings Co. Ltd.'s provisional
liquidation in the Cayman Islands as a foreign main proceeding.
David Walker and Ian Stokoe, the Joint Provisional Liquidators, or
JPLs, filed the Chapter 15 petition.
Judge Bernstein also overruled Solyndra Residual Trust's objection
to the petition for recognition, and denied the Trust's request to
transfer the venue of the chapter 15 case to the Northern District
of California.
A copy of Judge Bernstein's Nov. 17 Findings of Fact and
Conclusions of Law is available at http://bit.ly/1AfOsfNfrom
Leagle.com.
The JPLs are represented by:
Peter Friedman, Esq.
O'MELVENY & MYERS LLP
1625 Eye Street, NW
Washington, DC 20006
Tel: 202-383-5302
Fax: 202-383-5414
E-mail: pfriedman@omm.com
- and -
Daniel Shamah, Esq.
Matthew Kremer, Esq.
O'MELVENY & MYERS LLP
Times Square Tower
7 Times Square
New York, NY 10036
Tel: 212-326-2138
Fax: 212-326-2061
E-mail: dshamah@omm.com
mkremer@omm.com
- and -
Suzanne Uhland, Esq.
Jennifer Taylor, Esq.
O'MELVENY & MYERS LLP
Two Embarcadero Center, 28th Floor
San Francisco, CA 94111
Tel: 415-984-8941
Fax: 415-984-8701
E-mail: suhland@omm.com
jtaylor@omm.com
Solyndra Residual Trust is represented by:
John A. Morris, Esq.
Jason H. Rosell, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
780 Third Avenue, 34th Floor
New York, NY 10017-2024
E-mail: jmorris@pszjlaw.com
jrosell@pszjlaw.com
- and -
Debra I. Grassgreen, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
150 California Street, 15th Floor
San Francisco, CA 94111-4500
E-mail: dgrassgreen@pszjlaw.com
- and -
W. Gordon Dobie, Esq.
WINSTON & STRAWN LLP
26, Valovaya Street, 9th Floor
115054 Moscow IL
RU
Tel: +1 (312) 558-5691
Fax: +1 (312) 558-5700
E-mail: wdobie@winston.com
- and -
Eric E. Sagerman, Esq.
Justin E. Rawlins, Esq.
WINSTON & STRAWN LLP
333 S. Grand Avenue, 38th Floor
Los Angeles, CA 90071-1543
Tel: +1 (213) 615-1829
Fax: +1 (213) 615-1750
E-mail: esagerman@winston.com
jrawlins@winston.com
- and -
William C. O'Neil, Esq.
WINSTON & STRAWN LLP
35 W. Wacker Drive
Chicago, IL 60601-9703
Tel: +1 (312) 558-5308
Fax: +1 (312) 558-5700
E-mail: woneil@winston.com
About Suntech
Suntech Power Holdings Co., Ltd. (OTC: STPFQ) produces solar
products for residential, commercial, industrial, and utility
applications. Suntech has delivered more than 25,000,000
photovoltaic panels to over a thousand customers in more than 80
countries.
Suntech Power Holdings Co., Ltd., received from the trustee of its
3 percent Convertible Notes a notice of default and acceleration
relating to Suntech's non-payment of the principal amount of
US$541 million that was due to holders of the Notes on March 15,
2013. That event of default has also triggered cross-defaults
under Suntech's other outstanding debt, including its loans from
International Finance Corporation and Chinese domestic lenders.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are
represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP,
in White Plains, New York.
Suntech Power on Jan. 31, 2014, disclosed that it has signed a
Restructuring Support Agreement relating to the petition for
involuntary bankruptcy filed against it under chapter 7 of the
U.S. Bankruptcy Code. Under the RSA, the parties agreed that
chapter 7 proceedings will be dismissed following recognition of
the provisional liquidation proceeding previously filed by the
Company in the Cayman Islands under chapter 15 of the U.S.
Bankruptcy Code.
On Feb. 21, 2014, David Walker and Ian Stokoe, the joint
provisional liquidators of Suntech Power Holdings Co., Ltd.,
appointed by the Grand Court of the Cayman Islands, commenced a
Chapter 15 proceeding (Bankr. S.D.N.Y. Case No. 14-10383). The
Chapter 15 Petitioners are represented by Jennifer Taylor, Esq.,
and Diana Perez, Esq., at O'Melveny & Myers LLP. According to the
Chapter 15 petition, Suntech has more than $1 billion in both
assets and debts.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REP: Senate Scrambles as Pension Fund Scandal Widens
--------------------------------------------------------------
Dominican Today reports that Senate Social Security, Labor and
Pensions Committee chair Jose Maria Sosa revealed that the report
on the bill to establish a ceiling of the annual fee for the
Pension Fund Administrators (AFP) has yet to be debated, because
they expect to reach an agreement with the Executive Branch on the
hot issue.
"We believe that there should be a closer relationship between the
executive branch and Congress to reach a comprehensive delegation,
what we do with our legislation here and when the Executive Branch
I sending us a bill and we have approve the bill? . . . and for
that reason it's being shelved or however you want to call it,"
the report quoted Mr. Sosa as saying.
Mr. Sosa revealed that the commission met with Presidency chief of
staff Gustavo Montalvo two months ago, and agreed to seek
consensus with the AFPs, according to Dominican Today. But, it
was learned then that the senators decided to wait for the
Presidency's Commission created to review the legislation, include
that item 87-01 to avert placing "patches," the report relates.
The report discloses that Mr. Sosa said Congress must address the
issues to obtain a unified legislation. "It's being studied and
we haven't found any solution as yet," the report quoted Mr. Sosa
as saying.
"What we want is not what happened with Loma Miranda," Mr. Sosa
said in reference to the national park legislation vetoed by
President Danilo Medina, the report notes.
Mr. Sosa said Montalvo stated he is interested in taking into
account the Senate commission and expects to be summoned for a
meeting, the report relays.
The brouhaha over the Pension Fund managers emerged after local
media revealed their "exorbitant" profit of 35.20%, whereas
taxpayers obtained just 12.27% from their pension fund, the report
adds.
=========
H A I T I
=========
HAITI: 2014 Economic Activity Advanced at a Pace of 3 1/2-4%
------------------------------------------------------------
A mission from the International Monetary Fund (IMF) led by
Gabriel Di Bella visited Port-au-Prince, Haiti during November 3-
7, 2014, to complete discussions for the eighth and final review
under the 2010 Extended Credit Facility (ECF) arrangement.
The mission met with Minister of Economy and Finance Marie
Carmelle Jean-Marie, Governor of the Bank of the Republic of Haiti
(BRH) Charles Castel, other senior government officials,
representatives of the private sector, and development partners.
At the end of the visit, Mr. Di Bella issued the following
statement:
"Preliminary data for fiscal year 2014 (i.e. October 2013-
September 2014) suggest that economic activity (as measured by
gross domestic product, GDP), advanced in line with projections,
at a pace of about 3 1/2-4 percent. Inflation remained low, at
around 5 percent. The fiscal deficit was lower than prograed but
remained high, in part due to costly fuel subsidies. Monetary
policy was adequately geared towards protecting reserves while
ensuring a low and stable inflation.
"For fiscal year 2015, growth is expected to be in the 3-31/2
percent range, while inflation will remain contained. Reductions
in fuel subsidies (implemented together with programs to protect
the most vulnerable), and increased billing and collection in the
electricity sector should enable the authorities to reduce the
fiscal deficit towards sustainable levels. Although the recent
decrease in international oil prices would reduce the oil bill, it
also increases financing risks. The mission discussed deficit
reduction measures to mitigate this downside risk.
"The completion of remaining program measures, including with
respect to the operation of accounting centers, should permit the
Executive Board to consider this final ECF review in mid-December.
The authorities expressed their intention to request a successor
IMF arrangement.
"As we move to a successful conclusion of the ECF program, the
mission would like to commend the authorities for maintaining
sound macroeconomic policies in the difficult years following the
2010 earthquake. The hospitality and open discussions that
prevailed throughout this period continued during this visit".
===========
M E X I C O
===========
GRUPO FERTINAL: S&P Affirms Then Withdraws 'CCC-' Rating
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC-' ratings on
Mexico-based fertilizer producer Grupo Fertinal, S.A. de C.V.
(Fertinal). The outlook was negative. S&P then withdrew the
ratings at the company's request.
Prior to its withdrawal, the rating reflected S&P's opinion on the
company's weak liquidity as a result of a very weak operating
performance and the inherent volatility in fertilizer prices that
has been undermining Fertinal's cash flow generation. At the time
of the withdrawal, the negative outlook reflected the company's
vulnerable operating performance, resulting in very high
refinancing risk in the short term.
SIXSIGMA NETWORKS: S&P Assigns 'BB-' Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Sixsigma Networks Mexico, S.A. De C.V. (KIO
Networks). At the same time, S&P assigned its 'BB-' issue-level
and '4' recovery ratings to KIO Network's senior unsecured debt.
The '4' recovery rating indicates S&P's expectation of an average
(30%-50%) recovery in the event of default. The outlook is
stable.
"The company issued $500 million in notes due 2021 and $100
million in equity. Although the issued amount was lower than
originally expected, the company's financial metrics continue to
be in line with our current financial risk profile assessment,"
said Standard & Poor's credit analyst Fabiola Ortiz.
================================
T R I N I D A D & T O B A G O
================================
NATIONAL PETROLEUM: Big Win for Strikers
----------------------------------------
Sasha Harrinanan at Trinidad and Tobago Newsday reports that
thirteen months after 68 employees of State-owned National
Petroleum Marketing Company (NP) were fired in October 2013 for
taking part in what the company called "illegal work stoppages and
illegal industrial action," the Industrial Court ruled in the
workers' favor, saying they are to return to work.
Within hours of the ruling however, NP issued a statement
indicating its intention to "challenge" the ruling, making it
clear that it was "convinced that it has acted at all times in
accordance with professional industrial relations practices and
extremely sound legal advice, principles and precedents,"
according to Trinidad and Tobago Newsday.
The report relates that the company further stated that it "does
not believe that the rationale for the decision takes into account
all the facts and factors that constitute good industrial
relations, especially those advanced on its behalf by its
attorneys."
The energy company said, as such, it was "committed to defending
its actions since it believes it has acted in the best interests
of the company and of the country," the report notes.
NP's arguments in favor of an appeal were dismissed evening by
Ancel Roget, President General of the workers' representative
union, the Oilfields Workers' Trade Union (OWTU), who called on
management to "tender their resignations (immediately) or be
dismissed forthwith," the report discloses.
Speaking to reporters outside the Parliament, Tower D,
International Waterfront Centre, Port-of-Spain, Roget pointed out
that the court "ruled that the company was wrong, it was harsh and
overly oppressive, to dismiss those workers without just cause and
without reason, and that those workers have been reinstated
immediately," the report relates.
"That the court put those workers back on their jobs was the right
and just thing to do," Mr. Roget said, adding, "We have always had
all confidence that the workers would have their day in court and
that the matter was a matter that the workers would win, simply
because those workers did absolutely nothing (wrong)," the report
discloses.
Declaring that the 68 dismissed workers had gotten "justice" from
the Industrial Court, Mr. Roget noted that in addition to being
reinstated to their jobs, "The court also ruled that they should
be reinstated without loss of benefits; seniority, pay, whatever
they may have lost as a result of (not being on) the job for 13
months. In addition, the court stepped out and said they ought to
be paid damages of $40,000 each by December of this year," the
report relays.
Noting that the 68 men and women intend to report for duty
effective Nov. 20, Roget warned that the union "would be looking
out for any act of victimization because it is a dangerous and
vindictive management we are dealing with, backed by an
incompetent and vindictive Government, and we are prepared to
fight them at every single level. And that is why we are having a
march on December 5," the report notes.
On August 12, last year workers at NP's Pointe-a-Pierre gantry
walked off the job after two of their co-workers were sent home
for the day for refusing to train managers to operate the gantry
where fuel transport trucks are loaded, the report says. The
following day, workers at the Sea Lots compound took similar
action in a show of solidarity, the report relates.
NP subsequently held individual disciplinary hearings between
October 7 - 10, 2013 and each suspended employee was given the
opportunity to respond to three charges: refusing to perform job
functions, participation along with others in an illegal work
stoppage, and unauthorized absence from work stations, the report
notes. In the end, 68 workers were dismissed by NP for "illegal
work stoppages and illegal industrial action," which led to the
union taking the matter before the Industrial Court, whose ruling
was made, the report adds.
PETROTRIN: Trims Budget After Sharp Drop in Crude Oil Prices
------------------------------------------------------------
Sandhya Santoo at Trinidad Express reports that Petroleum Company
of Trinidad and Tobago President Khalid Hassanali said with the
sharp drop in crude oil prices, the State oil company's budget for
next year will now be based on an oil price of US$75 per barrel.
As a result of falling prices, President Hassanali said: "We've
had to trim expenditure, reduce our operating expenses, as well as
our capital cost, and we have to become more efficient," according
to Trinidad Express.
However, President Hassanali said the company expected an improved
performance next year since it was expecting increased production
from the southwest Soldado fields, the report notes.
"We are also going to be contracting another rig on land so we
going to be drilling, and we are also contracting another rig
offshore so we will get an increase in drilling," the report
quoted President Hassanali as saying.
President Hassanali spoke to reporters after an Energy Chamber
luncheon at Cara Suites Hotel, Claxton Bay, regarding the future
of Petrotrin.
President Hassanali said production levels on land had amounted to
12,000 barrels per day (bpd) and offshore at 22,000 bpd, with the
company's third party operators bringing in 12,000 bpd, the report
relates.
President Hassanali said regarding production levels, "we have
increased slightly, especially with our third party operations,"
the report discloses.
Over the last few months oil prices have come down by 30 per cent,
said President Hassanali, adding that prices had dropped "quite
alarmingly," the report relays.
The 2014/2015 national budget was pegged at a US$80 per barrel
price, the report discloses.
Asked if the company was operating at a loss, President Hassanali
said: "Our production from land and offshore are profitable but
our refinery operation, like many refineries in many parts of the
world, are marginal at this time."
About Petrotrin
Petroleum Company of Trinidad and Tobago is the major state-owned
oil company in Trinidad and Tobago. The company was established
in 1993 by the merger of Trintopec and Trintoc, two state-owned
oil companies. Petrotrin's main holdings are extensive, mature
onshore fields located across southern Trinidad. Large areas
have been leased out to small private producers who are able to
make a profit on wells that are unprofitable for Petrotrin,
giving it higher labor costs. The company operates a refinery at
Pointe-Pierre, just north of San Fernando in south Trinidad.
Most crude petroleum produced in Trinidad is exported without
being refined. The refinery depends on imported crude (mostly
from Venezuela), which is either used domestically or exported.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2013, Trinidad Express reports that production levels at
Petroleum Company of Trinidad and Tobago (Petrotrin)'s Trinmar
operations in Point Fortin have been affected by industrial action
involving employees of the company's marine transport contractors.
Petrotrin stated that it was informed of what it described as a
stand-off between its marine contractors and their employees, who
cited issues, including their current rates of remuneration,
according to Trinidad Express.
=================
V E N E Z U E L A
=================
VENEZUELA: US$4 Billion Boost to Reserves Wins Investor Approval
----------------------------------------------------------------
Katia Porzecanski at Bloomberg News reports that investors in
Venezuelan bonds are welcoming steps by President Nicolas Maduro
to bolster transparency in government accounts after concern
mounted that the country is running out of cash to service its
debt.
Venezuelan notes posted the biggest rally in three weeks after
President Maduro ordered that US$4 billion from Chinese loans be
added to foreign reserves, which had dwindled to an 11-year low,
according to Bloomberg News. At US$21.4 billion, including gold
assets, the central bank's holdings only cover about 60 percent of
debt due by the end of 2017, Bloomberg News relates. Venezuela's
borrowing costs are the highest in emerging markets at 21.4%,
Bloomberg News discloses.
While the loans are intended to pay for specific projects and
aren't supposed to be used to pay debt, the transfer from off-
budget funds to central bank accounts may allay concerns that the
country is teetering toward default, according to Goldman Sachs
Group Inc., Bloomberg News discloses. The move is a departure
from the opacity that often surrounds cash from Chinese loans,
which mostly remains in off-budget funds excluded from
parliamentary oversight, Caracas-based researcher ODH Grupo
Consultor said, Bloomberg News relates.
"It's a good first step only if it's followed by others," Anabella
Abadi, a public policy analyst at ODH, told Bloomberg News in a
telephone interview. "They now have to prove that the money won't
be used as arbitrarily as before and will stay in reserves,"
Bloomberg News quoted Ms. Abadi as saying.
While more than half of Venezuela's reserves are tied up in gold,
the nation has over US$15 billion in off-budget funds, according
to Credit Suisse Group AG, Bloomberg News relates. The funds,
including those holding money from Chinese loans, have spent $112
billion since 2005, according to the Finance Ministry's 2013
annual report, Bloomberg News says.
Ease 'Fears'
Bloomberg News notes that President Maduro, who also announced
measures to raise taxes on goods ranging from yachts to rum, said
he signed 28 laws using decree powers to restore growth and boost
fiscal revenue.
The government's benchmark dollar-denominated notes due in 2027
rose 2.15 cents Nov. 19 to 55.63 cents on the dollar. They're
still trading near the lowest price since 2009.
"The announced measures will have a negligible impact on
macroeconomic conditions," Mauro Roca, an economist at Goldman
Sachs, said in a note to clients, Bloomberg News relates.
"Nevertheless, the increased transparency that may ensue from the
centralization of hard currency funds under the orbit of the
central bank could help to ease some fears regarding the capacity
of the country to continue servicing its debt," Bloomberg News
quoted Mr. Roca as saying.
Venezuela, which imports three-quarters of the goods it consumes,
has seen export revenue slump as much as 30 percent in the past
month as oil prices tumbled, Bloomberg News relates. At its
current oil export price of about US$70 a barrel, Venezuela's
shortage of dollars will more than double to US$26.6 billion next
year, HSBC Holdings Plc economist Ramiro Blazquez wrote in a Nov.
7 report, Bloomberg News discloses.
Crude Prices
Latin America's largest crude producer needs the price of its oil
export basket at US$96.9 per barrel to continue paying its debts
at the present rate of imports and oil production, Credit Suisse
analysts Daniel Chodos and Casey Reckman wrote in a Nov. 19
report, Bloomberg News says.
Venezuela's reserves sank to US$19.4 billion last week.
"The measure seeks to assure investors that liquid reserves are
now in a much more solid position," Pedro Palma, an economics
professor at the Institute of Advanced Administrative Studies,
said by phone from Caracas, Bloomberg News 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 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 * * *