/raid1/www/Hosts/bankrupt/TCRLA_Public/141126.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, November 26, 2014, Vol. 15, No. 234
Headlines
A N T I G U A & B A R B U D A
LIAT: Recent Dismissal of Two Pilots Anger Colleagues
A R G E N T I N A
ARGENTINA: Creditor Can't Keep Lawyer From Leaving US
ARGENTINA: Faces $4.7 Billion in Claims in New Bond Suits
B A H A M A S
COLUMBUS INT'L: Antigua & Barbuda to Hold Talks with C&W
B R A Z I L
GP INVESTMENTS: Fitch Affirms 'B+' Long-term Issuer Default Rating
REDE ENERGIA: Moody's Downgrades LT Corporate Family Rating to C
C A Y M A N I S L A N D S
ANA TZAREV: Shareholders' Final Meeting Set for Nov. 27
ATHENA STONEHORSE: Members to Receive Wind-Up Report on Dec. 4
DYMON ASIA: Shareholders Receive Wind-Up Report
EDMONTON HOLDING: Shareholders Receive Wind-Up Report
EVO CAYMAN: Shareholder Receives Wind-Up Report
GUNNERS HOLDINGS: Shareholders Receive Wind-Up Report
JAPAN REALTY: Shareholders Receive Wind-Up Report
LDK SOLAR: Bankruptcy Court Confirms U.S. Chapter 11 Plan
MEADOWLANDS HOLDINGS: Shareholders Receive Wind-Up Report
NEUBERGER BERMAN: Members Receive Wind-Up Report
OHA COAST: Shareholder to Receive Wind-Up Report on Nov. 28
PKU FOUNDER: Shareholders Receive Wind-Up Report
PRIME PROPERTIES: Shareholder Receives Wind-Up Report
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Fitch Raises LT IDRs to 'B+'; Outlook Stable
DOMINICAN REP: Mines, Quarries Pace 7% Growth by End of 3Q
E L S A L V A D O R
EL SALVADOR: IMF Sees Significant Progress on FSAP Implementation
G U A T E M A L A
CEMENTOS PROGRESO: S&P Affirms 'BB' CCR; Outlook Stable
J A M A I C A
CARIBBEAN CEMENT: Two New Board Members Appointed
M E X I C O
OFFSHORE DRILLING: S&P Affirms 'BB' CCR; Outlook Stable
SEGUROS AZTECA: Moody's Rates Global Local Currency IFS 'Ba1'
P E R U
CORPORACION PESQUERA: S&P Affirms 'B' CCR & Keeps on Watch Neg.
P U E R T O R I C O
AES PUERTO: Fitch Maintains Watch Neg. on CC Rated $161.87M Bonds
T R I N I D A D & T O B A G O
CARIBBEAN AIRLINES: New Strategic Plan to be Presented
CONSOLIDATED ENERGY: S&P Assigns 'BB' CCR, Notes Issuances 'BB-'
- - - - -
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A N T I G U A & B A R B U D A
===============================
LIAT: Recent Dismissal of Two Pilots Anger Colleagues
-----------------------------------------------------
The Daily Observer reports that pilots at LIAT, operating as
Leeward Islands Air Transport, are reportedly unhappy after two of
its pilots were fired on Nov. 20.
Jamie Hunt and Vincent Augustin were the pilots relieved of their
duties.
The airline reportedly took the action after an investigation into
an incident during the passage of Tropical Storm Gonzalo on
October 12, 2014, which led to an ATR aircraft being damaged,
according to The Daily Observer.
The report relates that the aircraft is understood to still be out
of operation and it's not clear when it will return to service.
Leeward Islands Airline Pilots Associations' (LIALPA) Chairman
Patterson Thompson would only say the union is not happy and will
be taking further steps, but said he will not comment further at
this time, the report relates.
The report discloses that the pilots feel the dismissal of their
two colleagues is being used as a scapegoat.
Meanwhile, reliable sources said another of LIAT's ATR aircraft is
out of operation after it was damaged and struck by a tug in St
Vincent two weeks ago, the report relays.
It's not clear how long the downed ATR's will be out of service
and how it will affect the airline's busy Christmas schedule, the
report adds.
About LIAT
LIAT, operating as Leeward Islands Air Transport, is an airline
headquartered on the grounds of V. C. Bird International Airport
in Antigua. It operates high-frequency inter-island scheduled
services serving 21 destinations in the Caribbean. The airline's
main base is VC Bird International Airport, Antigua and Barbuda,
with bases at Grantley Adams International Airport, Barbados and
Piarco International Airport, Trinidad and Tobago.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 10, 2014, Caribbean360.com said that Leeward Islands Air
Transport (LIAT) said it will take "decisive action" to deal with
unprofitable routes as the Antigua-based airline seeks to make its
operations financially viable.
On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday,
reported that there's much upheaval at the highest levels of LIAT
-- the Board and the Executive. Following the sudden resignation
of Chief Executive Officer Captain Ian Brunton, comes the news
from highly reliable sources that long time chairman Jean Holder
is all set to follow.
David Evans replaced Mr. Brunton as chief executive officer.
=================
A R G E N T I N A
=================
ARGENTINA: Creditor Can't Keep Lawyer From Leaving US
-----------------------------------------------------
Andrew Scurria at Law360.com reports that Paul Singer's Elliott
Management Corp. can't force a former World Bank director with
ties to Argentina to stay in the U.S. for questioning in the hedge
fund manager's quest to collect $3 billion over defaulted
Argentine sovereign debt, according to an order.
In harsh terms, a federal judge in Washington, D.C., refused a
request by Elliott-controlled NML Capital Ltd. to prevent Cesar
Guido Forcieri, a lawyer and associate of Argentine Vice President
Amado Boudou, from leaving the U.S. and returning to Argentina,
according to Law360.com.
The report notes that NML is one of a small number of tenacious
hedge funds waging a global campaign to collect on bonds that
Argentina repudiated after its 2001 sovereign default. In court
papers, the fund argued that Forcieri had failed to produce
documents or comply with a subpoena in its hunt for assets that
could be used to satisfy its judgments and claims against the
nation, the report relates.
"There is no reason that NML cannot gain access to the witness
after he returns to Argentina," U.S. District Judge Royce C.
Lamberth said, the report notes. "All of the draconian measures
requested by NML are unwarranted and unnecessary," Judge Lamberth
added.
The report relays that Argentina has found itself in default once
again after refusing to pay NML and its cohorts in defiance of a
New York federal judge's orders. The bondholders, which Argentina
invariably refers to as "vultures," refused to swap their debt out
at 30 cents on the dollar when the country restructured in 2005
and 2010, the report discloses.
Instead, they sued for full repayment and won rulings from U.S.
District Judge Thomas Griesa preventing Argentina from servicing
exchange bonds unless it also makes a ratable payment to the
holdouts -- something Argentina says it is incapable of doing, the
report notes.
The report says that Judge Griesa's equal payment orders have been
upheld by the Second Circuit, and the U.S. Supreme Court declined
to take up Argentina's appeal. The resulting impasse pushed the
nation into default on July 30 after Judge Griesa blocked a $539
million payment earmarked for the exchange bonds, the report
relates.
Separately, Judge Griesa allowed Citigroup Inc. temporary relief
from the orders, allowing the bank's branch in Argentina to
process a $85 million coupon payment scheduled for Dec. 31 on
bonds governed by Argentine law, the report notes.
Whether payments on those Argentine bonds can go forward is still
an open question that turns on whether the debt constitutes
"exchange bonds" caught up in Judge Griesa's broadly worded
injunction. The judge considers it a factual issue that requires
further discussion, with briefs on the issue due sometime in 2015,
the report discloses. A Dec. 9 hearing on the issue has been
vacated.
The report says that Citigroup has complained that it would face
criminal prosecution in Argentina if it wasn't allowed to make
payments on the bonds and tried to make an end run around Judge
Griesa at the Second Circuit. The appeals court, however, ruled
that it lacked jurisdiction over the dispute and returned it to
the lower court.
The report notes that Argentina, meanwhile, has continued thumbing
its nose at the U.S. courts, taking steps to strip Bank of New
York Mellon Inc. of its status as U.S. bond trustee and instead
pay off exchange bonds through local channels.
Judge Griesa called those plans illegal and found the nation in
contempt of court in September, a ruling Argentina has since
appealed, the report relays.
Mr. Forcieri and Mr. Boudou were both recently indicted in
Argentina in connection with the allegedly illicit takeover of
bankrupt printing company Ciccone Calcografica SA, which had
lucrative contracts to print Argentine currency, according to
NML's motion papers, the report notes. The indictments allege Mr.
Forcieri helped Mr. Boudou abuse his powers to place Ciccone under
business associates' control, court documents said, the report
relays.
If Argentina finds that Mr. Boudou illegally seized control of
Ciccone, it could confiscate any profits, funds or other property
tied to the takeover, according to NML, the report notes.
The plaintiffs, which also include Aurelius Capital Management LP,
bought Argentine debt at a discount after the country defaulted on
$100 billion in debt in 2001, the report says.
Mr. Forcieri is represented by Bruch Hanna LLP.
NML is represented by Dechert LLP and Stinson Leonard Street LLP.
Citibank is represented by Davis Polk & Wardwell LLP.
Argentina is represented by Cleary Gottlieb Steen & Hamilton LLP.
The case is NML Capital Ltd. v. The Republic of Argentina, case
number 1:14-mc-01237, in the U.S. District Court for the District
of Columbia.
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
'C';
-- Local Currency exchanged bonds under Argentine Law at 'CCC';
-- Foreign and Local Currency non-exchanged securities under
Argentine Law at 'CCC';
-- Discount Bonds issued under Foreign Law at 'D'.
ARGENTINA: Faces $4.7 Billion in Claims in New Bond Suits
---------------------------------------------------------
Igor Kossov at Law360.com reports that counsel for Argentina wrote
to a New York federal judge, warning him that an injunction
forcing the country to pay $1.7 billion to a group of hedge funds
before it can pay other restructured debt has spawned a swarm of
copycat suits that want $4.7 billion from Argentina, something the
country can't afford.
According to the letter filed by Argentina's representative,
Carmine D. Boccuzzi Jr. of Cleary Gottlieb Steen & Hamilton LLP,
plaintiffs in 52 actions who hold an aggregate $4.4 billion of
Argentine debt might soon ask for similar injunctions, according
to Law360.com. Also, the letter said that 25 new suits since June
demanded $4.7 billion, the report notes. Argentina can't possibly
handle such a steep obligation because its reserves only have
about $28 billion, the attorney said, the report relates.
"There can be no equitable basis for seeking to compel the
republic . . . to do the impossible by paying in full its holdout
debt, much of which was purchased at a deep discount in the
secondary market, with the aim of extracting through litigation
better terms than the vast majority of the republic's creditors
who participated in the republic's debt restructuring," Ms.
Boccuzzi Jr. wrote, the report relates.
After Argentina defaulted in 2001 and massively restructured its
debt, certain bondholders refused to swap their old bonds for new
ones. Argentina hasn't been paying these holdouts, prompting them
to sue, the report says. This led to a 2012 injunction from U.S.
Federal Judge Thomas P. Griesa, which said that Argentina must pay
the plaintiffs when it pays its obligations.
In September, Judge Griesa found Argentina in contempt of court
for taking steps to evade his orders that bondholders who agreed
to debt restructurings can only be paid if holdout hedge funds are
also compensated, the report notes.
The judge ruled that Argentina's moves to strip the Bank of New
York Mellon Corp. as the trustee for the bonds and its plans to
pay so-called exchange bondholders locally without any recognition
of the country's obligation to the hedge funds are unlawful and
must not be carried out, the report discloses. Argentina filed a
notice of appeal of that ruling.
Argentina defaulted on its sovereign debt on July 30 after Judge
Griesa blocked a $539 million bond payment. Argentina responded
by enacting legislation authorizing its economic ministry to take
steps to remove BNY as the bonds' trustee, allowing it to pay the
exchange bondholders through an affiliate of state-backed Banco de
la Nacion Argentina instead, the report says.
The bill also allowed for the possibility of payments to holdout
hedge funds demanding full repayment, but under the same terms
agreed to by the so-called exchange bondholders, the report notes.
The report discloses that one of the plaintiff hedge funds, NML
Capital Ltd., filed an emergency motion asking a D.C. federal
court to order a former World Bank director to remain in the U.S.
to help it trace assets that it says could be used to pay its $3
billion of judgments and claims against Argentina.
NML argued that Cesar Guido Forcieri, a close associate of
Argentine Vice President Amado Boudou, has failed to produce
documents or appear for a deposition in compliance with a subpoena
served upon him in September, the report notes. The fund asked
the court to enjoin Forcieri from leaving the U.S. and require him
to give up his passport until he complies with the subpoena, the
report relays.
Argentina is represented by Carmine D. Boccuzzi, Jonathan I.
Blackman and Christopher P. Moore of Cleary Gottlieb Steen &
Hamilton LLP.
NML is represented by Dennis H. Hranitzky and Debra D. O'Gorman of
Dechert LLP, and Steven K. White and Lawrence P. Block of Stinson
Leonard Street LLP.
The case is NML Capital Ltd. v. The Republic of Argentina, case
number 1:08-cv-06978, in the U.S. District Court for the Southern
District of New York.
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
'C';
-- Local Currency exchanged bonds under Argentine Law at 'CCC';
-- Foreign and Local Currency non-exchanged securities under
Argentine Law at 'CCC';
-- Discount Bonds issued under Foreign Law at 'D'.
=============
B A H A M A S
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COLUMBUS INT'L: Antigua & Barbuda to Hold Talks with C&W
--------------------------------------------------------
The Daily Observer reports that the Antigua Government is set to
hold talks shortly on the likely impact the Cable and Wireless'
acquisition of Columbus (Flow) will have on the local
telecommunications market.
Information and Broadcasting Minister Melford Nicholas said he
will be convening talks shortly with Prime Minister Gaston Browne
to assess the objectives of the US$1.85 billion deal, to see if it
fits with the vision of his ministry, according to the Daily
Observer.
"What we want to do is to take the time to evaluate the impact
that it will have and to ensure that, based on the vision we have
for telecommunications in this market, there is open and free
competition," the report quoted President Nicholas as saying.
When the business deal was announced, regional analysts argued
that the combination of Cable & Wireless and Flow would create a
virtual monopoly on high-speed fibre optics, the report notes.
But, LIME's General Manager Davidson Charles said, the company's
acquisition would not lead to unfair competition, notes the
report.
Mr. Charles also explained that the concerns being raised
regionally do not apply to Antigua & Barbuda, the report relays.
"The acquisition of Columbus, in Antigua, has absolutely no
implications from a monopolistic point of view because there is no
monopoly. We already have competition, and actually, it is a new
service that Cable & Wireless Antigua would be offering to our
customers, should regulatory approval be granted," the report
quoted Mr. Charles as saying.
Mr. Charles also said the proposed acquisition will translate into
improved services for customers.
The report says the Eastern Caribbean Telecommunications Authority
(ECTEL), of which Antigua & Barbuda is not a member, warned that
both Cable & Wireless and Columbus Communications could be in
breach of their licenses if they engage in activities, which can
unfairly prevent, restrict, or distort competition.
About Columbus International
Columbus International Inc. is a privately held diversified
telecommunications company based in Bahamas. 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.
===========
B R A Z I L
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GP INVESTMENTS: Fitch Affirms 'B+' Long-term Issuer Default Rating
------------------------------------------------------------------
Fitch Ratings has affirmed the ratings of GP Investments Ltd. (GP)
as follows:
- Long-term Issuer Default Rating (IDR) at 'B+';
- Perpetual bonds at 'B+/RR4'.
The Rating Outlook is Stable.
Rating Rationale
GP's ratings reflect its sound franchise and experienced
management, good capital base, ample sustained liquidity, and
adequate debt profile.
Fitch's view of GP's creditworthiness is tempered by its
concentrated portfolio, tight and sometimes negative recurring
cash flow, and weak debt service-to-cashflow ratios.
When compared to debt service, GP's cash flow generation is quite
tight, and the company relies on volatile investment revenues and
its ample liquidity cushion to fulfill its commitments. In
addition to that, the company resorts to using its volatile
success fees, valuation profits, financial revenues, and dividends
to meet its debt service. Fund management fees have been enough to
cover the company's operating expenses on a cash basis. Since
investment revenues fluctuate and depend on investment strategies
and market conditions, Fitch does not consider such income as
recurring, although recognizes the overall value of such in terms
of profitability and liquidity sources.
GP has historically maintained a very high liquidity position
(liquid assets after commitments equaled about USD225 million at
September 2014) that has consistently covered all of its financial
liabilities. From an operational standpoint, GP's current
liquidity fully covers its annual operational expenses, debt
service, and investment commitments for the next 24-30 months.
Such liquidity is regularly fed by the aforementioned investment
revenues. The company carries a conservative liquidity policy that
should preserve such cushion in the future in order to cover its
negative recurring income.
Given the size of the deals GP executes, concentration is
structurally high and likely to remain so and is a weakness that
results in volatility of its results. This is mitigated by the
thorough and conservative investment policies that have been
altered to target well-established companies that generate their
own cash flows and have significant growth potential. A mix of
mature and growing companies curbs execution risk, but
concentration exposes results to volatility and sudden changes.
Even so, Fitch recognizes that GP has a successful execution track
record in extracting value from its investment and good IRR over
time.
GP's leverage (debt-to equity ratio of 0.69x as of September 2014)
is deemed conservative given its profile (57.4% of financial debt
is a perpetual issuance), although it is higher than other
alternative asset manager's. GP's capital base allows the company
to pursue its investment plans while maintaining an adequate
cushion against unexpected losses, a very important feature given
the high volatility that affects the value of its investments.
GP's core liabilities are very long term and almost equally
divided between perpetual bonds and a long-term loan maturing in
2020. This structure leaves plenty of room for GP to manage its
short- to medium-term cash flows and focus on its investments,
whose realization is contingent in nature, thus creating little
short-term financial pressure.
GP's management has significant expertise in the private equity
(PE) business after 20 years and more than USD5 billion in
investments and is a top player in Brazil. Managed by
entrepreneurs, GP has the network, contacts, and business acumen
to be a top PE player in Brazil.
Rating Sensitivities
GP's ratings would benefit from a larger and more stable recurring
cash flow, and adequate debt and expense coverage metrics, as
would a more diversified investment base.
On the other hand, a significant increase in leverage,
deterioration in its recurring cash flow metrics, or dismal
performance of its investments could negatively pressure its
ratings.
REDE ENERGIA: Moody's Downgrades LT Corporate Family Rating to C
----------------------------------------------------------------
Moody's Investors Service has downgraded all ratings of Rede
Energia S.A.'s to C / C.br from Ca / Ca.br with the final approval
of its financial reorganization. The outlook is stable.
The one-notch downgrade of Rede Energia to C / C.br from Ca /
Ca.br reflects not only the conclusion of the company's debt
restructuring process but also a recovery of 25% on the company's
perpetual bonds which had a face amount of USD504 million that
were acquired by Energisa S.A. (Energisa, Ba2 negative) from the
existing bondholders for USD126 million on October 16, 2014.
Ratings Rationale
Rede Energia has been in judicial recovery since December 19,
2012. The recovery plan approved on November 20, 2013, involved
the restructuring of all Rede's indebtedness. As of October 16,
2014, with the acquisition of the perpetual bonds at the agreed
upon 75% discount on the face amount, the debt restructuring was
completed.
The following ratings have been downgraded:
LT Corporate Family Rating to C from Ca
NSR LT Corporate Family Rating to C.br from Ca.br
USD 504 million Perpetual Eurobonds to C from Ca
Rede Energia S.A., headquartered in Sao Paulo, Brazil, is a
holding company with interests in electricity distribution and
generation. Through majority-owned subsidiaries Companhia de
Energia Eletrica do Estado do Tocantins -- Celtins (Celtins, B2
positive), Centrais Eletricas Matogrossenses S.A. - Cemat (Cemat,
B2 positive) and Empresa Energetica do Mato Grosso Sul - Enersul,
the group operates concessions to distribute electricity in the
states of Tocantins, Mato Grosso and Mato Grosso do Sul,
respectively. In addition, Rede operates small power distribution
concessions in a number of municipalities in the states of Sao
Paulo, Minas Gerais and Parana. Overall, the group serves
approximately 3.4 million clients.
Rede Energia has been controlled by Energisa S.A. since April 11,
2014, when it officially acquired the capital of Rede Energia S.A
for just BRL 1.00.
The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in December 2013.
==========================
C A Y M A N I S L A N D S
==========================
ANA TZAREV: Shareholders' Final Meeting Set for Nov. 27
-------------------------------------------------------
The shareholders of Ana Tzarev Foundation (Cayman) will hold their
final meeting on Nov. 27, 2014, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Matthew Wright
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
ATHENA STONEHORSE: Members to Receive Wind-Up Report on Dec. 4
--------------------------------------------------------------
The members of Athena Stonehorse Fund, Ltd. will receive on
Dec. 4, 2014, at 4:00 p.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
DMS Corporate Services Ltd
c/o Nicola Cowan
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
DYMON ASIA: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of Dymon Asia Special Opportunities Fund received
on Nov. 12, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Keng Soon Tan
48 Bodmin Drive
Singapore 559647
EDMONTON HOLDING: Shareholders Receive Wind-Up Report
-----------------------------------------------------
The shareholders of Edmonton Holding Limited received on Nov. 11,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Stephen Nelson
Telephone: 949-4544
Facsimile: 949-7073
Charles Adams Ritchie & Duckworth
Zephyr House, 2nd Floor, 122 Mary Street
P.O. Box 709 Grand Cayman, KY1-1107
Cayman Islands
EVO CAYMAN: Shareholder Receives Wind-Up Report
-----------------------------------------------
The sole shareholder of Evo Cayman Holding Ltd. received on
Nov. 12, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Mark S. Kuskin
2678 Basil Lane
Los Angeles California 90077
United States of America
GUNNERS HOLDINGS: Shareholders Receive Wind-Up Report
-----------------------------------------------------
The shareholders of Gunners Holdings Limited received on Nov. 21,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Steering Group S.A
Telephone: +41 22 319 01 65
13, Quai de I'lle CH-1211
Geneva 11
Switzerland
Telephone: +41 22 319 01 65
JAPAN REALTY: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of Japan Realty Holding Company II received on
Nov. 11, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Stephen Nelson
Telephone: 949-4544
Facsimile: 949-7073
Charles Adams Ritchie & Duckworth
Zephyr House, 2nd Floor, 122 Mary Street
P.O. Box 709 Grand Cayman, KY1-1107
Cayman Islands
LDK SOLAR: Bankruptcy Court Confirms U.S. Chapter 11 Plan
---------------------------------------------------------
LDK Solar CO., Ltd. in provisional liquidation and its Joint
Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of
Zolfo Cooper (Cayman) Limited, on Nov. 24 disclosed that, on
November 21, 2014, Judge Peter J. Walsh of the United States
Bankruptcy Court for the District of Delaware entered an order
confirming the prepackaged plan of reorganization for the three
U.S. subsidiaries of LDK Solar -- LDK Solar Systems, Inc., LDK
Solar USA, Inc. and LDK Solar Tech USA, Inc. The U.S. Debtors
previously filed voluntary petitions in the U.S. Bankruptcy Court
on October 21, 2014 to reorganize under Chapter 11 of the United
States Bankruptcy Code.
In addition to entry of the Confirmation Order, the U.S.
Bankruptcy Court also entered an order recognizing LDK Solar's
provisional liquidation proceeding in the Grand Court of the
Cayman Islands as a foreign main proceeding under Chapter 15 of
the United States Bankruptcy Code, and an additional order
recognizing and giving full force and effect in the jurisdiction
of the United States to LDK Solar's Cayman Islands scheme of
arrangement.
"We are very pleased that the U.S. Bankruptcy Court has confirmed
our prepack plan for our U.S. subsidiaries and has recognized our
Cayman Islands scheme of arrangement. The U.S. Bankruptcy Court's
rulings, which follow favorable rulings from the Grand Court of
the Cayman Islands and the High Court of Hong Kong, are the final
court approvals necessary for us to execute the various documents
with our creditors to consummate the international restructuring
of our offshore liabilities," stated Xingxue Tong, Interim
Chairman, President and CEO of LDK Solar. "Now with more than
US$700 million in our offshore claims judicially approved for
restructuring, we can focus our attention on rebuilding LDK
Solar's position in the marketplace," concluded Mr. Tong.
Copies of the Chapter 11 Plan, Confirmation Order, Recognition
Order and Enforcement Order are available on the website of the
U.S. Debtors' agent, Epiq Bankruptcy Solutions, LLC, at
http://dm.epiq11.com/LDK
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.
MEADOWLANDS HOLDINGS: Shareholders Receive Wind-Up Report
---------------------------------------------------------
The shareholders of Meadowlands Holdings Ltd. received on Nov. 21,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Steering Group S.A
Telephone: +41 22 319 01 65
13, Quai de I'lle CH-1211
Geneva 11
Switzerland
Telephone: +41 22 319 01 65
NEUBERGER BERMAN: Members Receive Wind-Up Report
------------------------------------------------
The members of Neuberger Berman GTAA Pension Fund I Ltd. received
on Nov. 11, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Richard Fear
c/o Daniel Woolston
Telephone: (345) 814 7782
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
OHA COAST: Shareholder to Receive Wind-Up Report on Nov. 28
-----------------------------------------------------------
The shareholder of OHA Coast Hedging, Ltd will receive on Nov. 28,
2014, at 9:15 a.m., the liquidator's report on the company's wind-
up proceedings and property disposal.
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
PKU FOUNDER: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of PKU Founder Investment Ltd. received on
Nov. 12, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ting Zhou
1206 North Tower, Kerry Center
1 Guanghua Road, Chaoyang District
Beijing 100020
China
PRIME PROPERTIES: Shareholder Receives Wind-Up Report
-----------------------------------------------------
The shareholder of Prime Properties Japan Limited received on
Nov. 21, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
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
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Fitch Raises LT IDRs to 'B+'; Outlook Stable
----------------------------------------------------------------
Fitch Ratings has upgraded the Dominican Republic's Long-term
foreign and local currency Issuer Default Ratings (IDRs) to 'B+'
from 'B'. The Rating Outlook on the Long-term IDRs is Stable.
The issue ratings on the Dominican Republic's senior unsecured
foreign and local currency bonds are also upgraded to 'B+' from
'B'. The Country Ceiling is upgraded to 'BB-' from 'B+' and the
Short-term foreign currency IDR is affirmed at 'B'.
KEY RATING DRIVERS
The upgrade of the Dominican Republic's IDRs reflects these:
-- The Dominican Republic has demonstrated resilience through
adverse domestic and external conditions. A diversified
service-based economic structure and competitive business
climate support medium-term growth and investment prospects.
Based on revised GDP statistics, Fitch forecasts that real
growth will expand by 6.2% in 2014 and 5% in 2015-2016,
which is better than the 'B' median five-year average of 4%.
The country is well-positioned to benefit from the recovery
in the U.S., its main source market for family remittances,
exports and tourist arrivals.
-- The current account dynamics of the Dominican Republic are
improving due to the increasing diversity of its export
structure. The start of gold production along with
resilient tourism flows is expanding the country's export
base. This, combined with the fall in the fuel import bill
should reduce the current account deficit to an average of
3.3% of GDP during 2014-2016 compared with the average 6.8%
in 2007-2012. Lower current account deficits fully financed
by foreign investment and debt disbursements will allow the
central bank to meet its reserves target-coverage threshold
of three months of imports for the second consecutive year
in 2014. Reserve accumulation and lower external
amortizations could help bring the international liquidity
ratio above 100% in 2015-2016, although well below the 'B'
median of 171%.
-- Fiscal consolidation remains on track in the second year of
the Danilo Medina administration. The authorities brought
the deficit down to 2.8% of GDP in 2013-2014 from 6.7% in
the 2012, while honoring the legal mandate to allocate 4% of
GDP to education spending. Signalling policy continuity,
the 2015 budget calls for a further reduction in the deficit
to 2.4% and a primary surplus of 0.5%, the first since 2007.
The main downside risk to the fiscal outlook is a failure to
contain electoral spending in the run-up to the general
elections in May 2016.
The Dominican Republic's 'B+' IDRs also reflect these:
-- The economic expansion has not resulted in inflationary
pressures. Fitch expects consumer prices to fall to 3.4% in
2014 and hover around the mid-point of the official target
band of 3%-5% in 2015-2016. The central bank has room to
tighten in the event of external shocks given the healthy
pace of economic activity. However, large quasi-fiscal
losses at the central bank and active foreign exchange
intervention constrain monetary policy.
-- The size of the budget adjustment has not been enough to put
the public debt burden on a downward trajectory, limiting
the capacity to absorb economic shocks. Fitch's
sustainability analysis suggests that general government
debt will only stabilize at 41% of GDP by 2018 but is likely
to stay below the 'B' median of 45% even if the government
funds the construction of two coal-fired power generation
plants through external borrowing in 2015-2016. Public debt
is particularly sensitive to exchange rate devaluations, as
73% of liabilities are denominated in foreign currency.
-- Continued market access and multilateral support provide
sufficient financing flexibility. The Dominican Republic
has placed USD4.5 billion since its return to global markets
in 2010 and plans to raise an additional USD1.5 billion in
2015. High levels of non-resident participation in the
local bond market and preferential loans from Petrocaribe
expose the sovereign to tighter global financing conditions
and economic developments in Venezuela.
-- Structural features are a credit strength. The Dominican
Republic has higher per capita income, social development
and governance indicators than peers. The banking sector
benefits from adequate capitalization, liquidity and credit
quality. Nonetheless, high public sector participation in
the banking system increases the risks of contingent
liabilities to the government. The reform of the organic
law of the state-owned Banreservas could improve the bank's
capitalization, dividend policies, and corporate governance
practices in the medium term.
RATING SENSITIVITIES
The Stable Outlook reflects Fitch's assessment that upside and
downside risks to the rating are currently balanced. The main
factors that individually, or collectively, could trigger a rating
action are:
Positive:
-- Sustained improvements in the country's external liquidity
and solvency ratios;
-- Continued fiscal consolidation resulting in stabilizing
government debt ratios;
-- Progress on reforms to address fiscal rigidities,
electricity sector deficits and monetary policy constraints.
Negative:
-- Fiscal slippage and growth underperformance leading to a
material increase in government indebtedness;
-- Erosion of foreign reserves and increased macroeconomic
instability;
-- Emergence of financing constraints.
KEY ASSUMPTIONS
The ratings and Outlooks are sensitive to a number of assumptions:
-- Fitch forecasts that U.S. growth of 3% in 2015-2016 will
support Dominican Republic's economic performance, given the
strong trade, tourism and remittances linkages between the
two countries.
-- The Dominican Republic's growth, fiscal and external
forecasts assume that annual gold production is sustained at
1.1 million ounces and international prices average USD1,250
per ounce in 2015-2016. Fitch's latest projections also
factor in a 15% decline in international Brent oil prices to
USD95 per barrel by 2016.
-- Fitch assumes that the Dominican Republic will maintain
access to multilateral lending and global capital markets in
2015-2016.
DOMINICAN REP: Mines, Quarries Pace 7% Growth by End of 3Q
----------------------------------------------------------
Dominican Today reports that Dominican Republic Central Bank said
the country's economy grew 7.0% from January to September,
"significantly higher than the 3.7% observed in the same period
last year."
Citing preliminary figures, the Central Bank announced growth
rates of 7.7% in the first, 7.3% in the second and 6.0% in the
third quarter, "which leads us to conservatively project real GDP
growth of 6% for yearend 2014 considering that the basis of
comparison of GDP in the last quarter this year will be influenced
by the high growth of 7.4% in October-December 2013," according to
Dominican Today.
The report notes that the bank added that by looking at the
cumulative growth for the January-September 2014 period, "we can
see that all economic activities exhibited positive rates of
change, highlighting, mining and quarrying," of 24.1%.
====================
E L S A L V A D O R
====================
EL SALVADOR: IMF Sees Significant Progress on FSAP Implementation
-----------------------------------------------------------------
At the invitation of the Banco Central de Reserva (BCR), a team of
experts from the Monetary and Capital Markets Department of the
International Monetary Fund visited El Salvador to take part in a
Forum on Financial Stability on November 19, 2014. The mission
also met with senior officials of the BCR, the Ministry of
Finance, the Superintendency of the Financial System, and the
Institute for the Guarantee of Deposits; with members of the
Financial Commission of the Legislative Assembly; and with
representatives the financial sector.
At the conclusion of the visit, Hunter Monroe, the IMF mission
chief, made the following statement:
"The mission shared at the Forum on Financial Stability its
assessment of progress with the recommendations of the Financial
Sector Assessment Program (FSAP) in 2010 and provided
recommendations for further strengthening financial stability.
There has been significant progress in many areas with the
implementation of FSAP recommendations, including creation of a
single financial supervisor with stronger powers and autonomy;
progress toward implementing risk-based supervision; and the
issuance by the BCR of many norms to fill remaining regulatory
gaps. The BCR has also developed a Comprehensive Liquidity Policy
and made progress with its implementation, including creation of a
lender of last resort facility and a draft framework for a pooled
liquidity fund. A Systemic Risk Committee was created in 2013,
and work is underway on elaborating bank resolution manuals,
taking into account the lessons of a banking resolution simulation
exercise completed in 2011. Under the single supervisor,
securities supervision has benefited from additional powers and
clearer processes, from a stronger position within the financial
sector, and from signing the International Organization of
Securities Commissions' Multilateral Memorandum of Understanding.
"Nevertheless, there remain areas where improvements are needed to
strengthen the financial stability framework. Key steps to
reinforce the framework include:
Integrating and formalizing risk-based supervision in the context
of the existing regulatory framework; broadening the regulatory
perimeter; and amending the Banking Law to improve the definition
of capital and to protect former and not only current supervisors;
Reinforcing the capacity of the BCR to provide liquidity
assistance to commercial banks based upon a defined multi-year
financing strategy and creating a pooled liquidity fund;
Enacting comprehensive resolution and crisis management
legislation following a thorough diagnostic review; creating a
permanent Financial Sector Stability Committee with authority to
decide systemic cases, to issue prudential norms for systemic
institutions, and to require recovery and resolution plans even in
"normal" times; and addressing other important areas for
improvement in the general banking resolution framework; and
Overhauling the legal and regulatory framework for the securities
market to provide fundamental elements of corporate governance,
transparency and enforcement; removing the requirement to relist
foreign securities domestically; linking the payments and
settlements systems to allow Delivery versus Payment; developing
the secondary market and the yield curve; and relaxing limits on
pension portfolios.
"The mission expresses its appreciation for the opportunity to
share its views and for the open and constructive dialogue during
its visit, which underscore the commitment of the authorities and
other forum participants to strengthening financial stability."
=================
G U A T E M A L A
=================
CEMENTOS PROGRESO: S&P Affirms 'BB' CCR; Outlook Stable
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' global scale
corporate credit rating on Cementos Progreso S.A. (CemPro). S&P
also affirmed its 'BB' issue-level rating on CemPro's $350 million
senior unsecured notes due 2023. The outlook remains stable.
The ratings reflect S&P's assessment of CemPro's "fair" business
risk profile and "significant" financial risk profile.
CemPro's "fair" business risk profile reflects S&P's view of its
leading and stable market share of about 83% in Guatemala's cement
industry, strong brand recognition, and high pricing power.
Moreover, the company's cost-efficient operations--stemming from
its low-cost raw materials because of pozzolan's abundant
availability--result in above-average profitability compared with
that of its global rated peers, whose EBITDA margins are between
15% to 25%. "Guatemala's geological characteristics, such as vast
pozzolan reserves, significantly reduce CemPro's production costs
and accelerate the cement-making process, which is a key rating
strength," said Standard & Poor's credit analyst Fernanda
Hernandez. In S&P's view, CemPro's location in Guatemala somewhat
limits the rating due to high country risk, and geographic
concentration, which results in the company's limited scope of
operations.
In 2013, CemPro began the construction of its San Gabriel plant,
which will artially substitute the current operating facility by
2017. Although the company has deferred some capital expenditures
(capex), the project is on time and on budget. In addition to the
ongoing improvement in operating efficiencies at the company, S&P
believes the new plant will further improve CemPro's operating
efficiency and profitability as it will mothball less efficient
production lines and reduce energy costs, increasing EBITDA
margins to about 40% in 2017.
=============
J A M A I C A
=============
CARIBBEAN CEMENT: Two New Board Members Appointed
-------------------------------------------------
RJR News reports that more appointments have been made to the
board of Caribbean Cement Company Limited.
The company has advised the Jamaica Stock Exchange that Alejandro
Ramirez and Parasram Heerah joined the Board, effective November
18, according to RJR News.
The report notes that the appointments follow the resignation of
Lincoln Parmasar on November 5 and Dr. Rollin Bertrand in August.
Headquartered in Rockfort Kingston, Jamaica, Caribbean Cement
Company Limited manufactures and sells cement. The company is a
subsidiary of Trinidad Cement Limited.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2014, RJR News disclosed that company said it racked up a
loss of $89 million in the three months to the end of June,
compared to a $359 million profit in the corresponding period a
year ago. The report noted that Caribbean Cement said the loss
was due to the shutdown of a clinker line to facilitate
maintenance work.
According to a TCRLA report on Aug. 7, 2013, RJR News said that
Caribbean Cement Company Limited suffered a consolidated loss of
J$137 million for the first six months of 2013 down from J$1.2
billion during the corresponding period last year, according to
RJR News. The report related that the loss resulted from J$701
million of non-cash foreign exchange losses compared to J$136
million in 2012.
===========
M E X I C O
===========
OFFSHORE DRILLING: S&P Affirms 'BB' CCR; Outlook Stable
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on Offshore Drilling Holding S.A. (ODH). The
outlook is stable. S&P also affirmed the 'BB' issue-level rating
on the company's $950 million senior secured notes due 2020, and
assigned a recovery rating of '3' to the notes, indicating S&P's
expectation for a meaningful (50%-70%) recovery in the event of
default.
The ratings on ODH reflect its "somewhat uncertain" quality of
cash flow, high concentration and correlation of assets, and
ability to service its financial obligations. "This assessment
also reflects a moderate financial policy and the moderate risk of
recontracting the charter agreements when they expire in 2015 and
2016," said Standard & Poor's credit analyst Maria del Sol
Gonzalez. The rating also reflects ODH's exposure to a highly
competitive and cyclical industry, with potentially intense
competition. However, S&P believes this is mitigated by the high
likelihood that Mexico's national oil and gas company, Petroleos
Mexicanos (Pemex; BBB+/Stable/--), will recontract the vessels
given its plans to continue investing in oil exploration and
production activities in the Gulf of Mexico. In S&P's view, the
issuer enjoys adequate contractual foundations derived from the
three, five-year term charter agreements that the operator has
with Pemex Exploracion y Produccion (PEP; Pemex's exploration and
production arm), which eliminates market risk during the
contracted period. S&P's analysis also incorporates ODH's
experience in Mexico's oil & gas industry, its strong business
relationship with Pemex, and the strong collateral package which
benefits ODH's lenders.
SEGUROS AZTECA: Moody's Rates Global Local Currency IFS 'Ba1'
-------------------------------------------------------------
Moody's de Mexico S.A. de C.V. has assigned Ba1 global local
currency and Aa3.mx national scale insurance financial strength
(IFS) ratings to Seguros Azteca, S.A. de C.V. (Seguros Azteca) and
Seguros Azteca Danos, S.A. de C.V. (Seguros Azteca Danos). The
outlook for these ratings is stable. Both insurers are part of
Grupo Elektra (Ba3, long-term corporate family rating, stable
outlook), which is one of the leading companies in the Mexican
retail market. Grupo Elektra also encompasses banking activities
through Banco Azteca (rated Ba1 for global local currency bank
deposits, stable outlook) which is one of the leading consumer
banking institutions in Mexico, as well as several other
subsidiaries.
Ratings Rationale
The rating agency said the Ba1 and Aa3.mx IFS ratings of both
Seguros Azteca and Seguros Azteca Danos reflect the ownership and
support of Grupo Elektra, as well as the integration of the two
insurers with Banco Azteca and other affiliated companies. Seguros
Azteca and Seguros Azteca Danos share the same management, risk
controls, and corporate governance, and benefit from oversight by
Grupo Elektra and its affiliates. According to Moody's, both
companies also benefit from Elektra's store-based network as well
as Banco Azteca's branch distribution platform as they are focused
on the same niche of lower-income consumers. As a consequence,
both companies' distribution platform -- though concentrated in
its controlling ownership -- is one of the largest in the Mexican
financial system with more than 3,600 points of sale.
Seguros Azteca's ratings also reflect the life insurer's niche
participation in the Mexican credit life insurance market, its
investment-grade credit quality investment portfolio, its adequate
capital adequacy, as well as its sound profitability. "The ratings
also consider Seguros Azteca strong integration within Grupo
Elektra's complementary financial services", said Jos‚ Montano,
Moody's lead analyst.
Offsetting these strengths, the Ba1 and Aa3.mx IFS ratings also
consider Seguros Azteca's relatively limited distribution as the
company markets its products predominantly through Elektra and
Banco Azteca; the company's relatively limited product
diversification, given that credit life insurance products
comprise approximately 98% of total gross premiums written; and
the company's relatively modest scale in the Mexican insurance
industry. One particular concern noted by Moody's is the extent of
the insurer's loans to affiliates -- at approximately 44% of cash
and invested assets, or about 70% of total capital, as of 31
December 2013 -- which the rating agency considers to
significantly constrain asset quality and capital strength. The
high level of affiliate loans highlights concerns in terms of
potential corporate governance standards. Grupo Elektra has a
closely-held, family-based ownership structure, with corporate
governance practices still evolving.
For Seguros Azteca Danos, the Ba1 and Aa3.mx IFS ratings consider
the P&C insurer's complementary product offerings to Seguros
Azteca, the investment-grade credit quality of its investment
portfolio, and its adequate capital adequacy and profitability
metrics. The ratings reflect the company's integration with
Elektra's stores and Banco Azteca's branches as the distribution
point for Seguros Azteca Danos insurance products. Offsetting
these strengths are Seguros Azteca Danos' relatively high direct
catastrophic exposure -- amounting to approximately one-third of
its gross premiums written -- and its resulting high dependence on
reinsurance protection, as well as its relatively limited product
diversification and the high dependence of its business growth
from Grupo Elektra and Banco Azteca business activity. However,
Moody's considers Seguros Azteca Danos' high dependence on
reinsurance to not be a fundamental concern, due to the relatively
good credit quality of its counterparties.
Factors that could result in an upgrade of Seguros Azteca include
a combination of the following: 1) upgrade of either Grupo Elektra
or Banco Azteca; 2) improvement in the company's market position
in the Mexican life insurance industry (e.g. relative market share
above 0.3x); 3) enhanced product diversification, (e.g. lowering
its exposure to credit group life insurance to less than 70% of
premiums); 4) successful diversification of the company's
distribution platform; 5) reduction in affiliated loans to 20% or
lower of cash and invested assets; and 6) upgrade of the Mexican
government bond ratings, coupled with an improvement in the
country's operating environment. Factors that could lead a rating
downgrade of Seguros Azteca include the following: 1) downgrade of
Grupo Elektra or Banco Azteca or less integration with/divestiture
from Grupo Elektra; 2) deterioration in the company's market
position and franchise strength (e.g. relative market share below
0.1x); 3) deterioration of profitability, with sustained returns
on capital below 5%; 4) worsened capitalization metrics, with
equity/assets ratio below 10% (excluding loans to and investments
in affiliates); 5) deterioration in Mexican government bond
ratings and/or the country's operating environment's risk; 6)
continued trend of increasing loans to affiliates as percentage of
capital (e.g. sustained in excess of 75%).
Factors that could result in an upgrade of Seguros Azteca Danos
include a combination of the following: 1) upgrade of either Grupo
Elektra or Banco Azteca; 2) improvement in the company's market
position in the Mexican P&C insurance industry (e.g. relative
market share above 0.03x); 3) enhanced product diversification,
lowering its exposure to catastrophic risk on a gross basis; 4)
successful expansion of the company's distribution platform; and
5) upgrade of the Mexican government bond ratings, coupled with an
improvement in the country's operating environment. Factors that
could lead a rating downgrade of Seguros Azteca Danos include a
combination of the following: 1) downgrade of Grupo Elektra or
Banco Azteca or less integration with/or divestiture from Grupo
Elektra; 2) deterioration in the company's market position and
franchise strength; 3) deterioration of profitability, with
sustained returns on capital below 5%; 4) worsened capitalization
metrics, gross underwriting leverage above 3.0x; or 5)
deterioration in Mexican government bond ratings and/or the
country's operating environment's risk.
Seguros Azteca, S.A. de C.V. and Seguros Azteca Danos, S.A. de
C.V., headquartered in Mexico City, Mexico, provide life and
general Insurance, products, respectively. Seguros Azteca reported
net income of MXN 162 million for the first six months of 2014,
and had shareholders' equity of MXN 1,746 million as of June 30,
2014, whereas Seguros Azteca Danos reported net income of MXN 18
million for the same period and shareholders' equity of MXN 201
million as of June 30, 2014.
The principal methodology used in rating Seguros Azteca, S.A de
C.V. was Global Life Insurers published in December 2013. The
principal methodology used in rating Seguros Azteca Danos, S.A. de
C.V. was Global Property and Casualty Insurers published in
December 2013.
The sources and items of information used to determine Seguros
Azteca and Seguros Azteca Danos' ratings include June 2014
financial statements (source: Comision Nacional de Seguros y
Fianzas (CNSF)) and year-end 2013 audited financial statements
(source: Seguros Azteca and Seguros Azteca Danos, audited by
Castillo Miranda y Compania, S.C.)
The period of time covered in the financial information used to
determine Seguros Azteca Danos, S.A. de C.V.'s and Seguros Azteca,
S.A de C.V.'s rating is between 1/1/2008 and 12/31/13 (source:
Seguros Azteca and Seguros Azteca Danos and Moody's).
=======
P E R U
=======
CORPORACION PESQUERA: S&P Affirms 'B' CCR & Keeps on Watch Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit and issue-level ratings on Corporacion Pesquera Inca S.A.C.
(Copeinca). S&P is keeping the ratings on CreditWatch with
negative implications.
The rating action mirrors the action S&P took on its sole
shareholder, China Fishery Group Ltd. (China Fishery; B/Watch
Neg/--). S&P continues to view Copeinca as a "core" subsidiary of
China Fishery, based on the level of integration of the group's
fishmeal operations in Peru, which S&P' expects to increase after
China Fishery redeems Copeinca's $250 million outstanding notes in
March 2015. The significant contribution of Copeinca to the
group's cash flows and consolidated revenue base (almost 80% of
sales reported as of June 30, 2014) also supports S&P's
assessment.
If Copeinca remains as an integral part of the group's strategy,
and maintains its "core" entity status within China Fishery, S&P's
ratings on it will continue to move in tandem with those on its
immediate parent.
CREDITWATCH
S&P expects to resolve the CreditWatch placement in the next 90
days, which will depend on China Fishery's refinancing prospects
and liquidity profile. At the same time, S&P will closely monitor
Copeinca's operating performance amid volatile market conditions
for Peruvian fisheries.
======================
P U E R T O R I C O
======================
AES PUERTO: Fitch Maintains Watch Neg. on CC Rated $161.87M Bonds
-----------------------------------------------------------------
Fitch Ratings has maintained the Rating Watch Negative on the
following AES Puerto Rico L.P. (AES PR) securities issued through
Puerto Rico Industrial, Tourist, Educational, Medical &
Environmental Control Facilities Financing Authority:
-- $161.87 million cogeneration facility revenue bonds, series
A (tax-exempt bonds) due June 2026 'CC';
-- $33.1 million cogeneration facility revenue bonds, series B
(taxable bonds) due June 2022 'CC'.
The 'CC' rating reflects Fitch's view of the credit quality of
Puerto Rico Electric Power Authority (PREPA). PREPA is the
revenue counterparty under AES PR's power purchase agreement.
PREPA's 'CC' rating with a Rating Watch Negative constrains the
rating of AES PR.
===============================
T R I N I D A D & T O B A G O
===============================
CARIBBEAN AIRLINES: New Strategic Plan to be Presented
------------------------------------------------------
RJR News reports that a new strategic business plan is to be
presented regarding the operations of Caribbean Airlines Limited.
Airline Chief Executive Officer Michael DiLollo will submit the
plan to the Trinidad & Tobago government, according to RJR News.
The report notes that Trinidad and Tobago Finance Minister Larry
Howai said the plan will priorities areas on which the Government
should focus, in order to improve the fortunes of the airline.
The report adds that Mr. Howai said the document will outline a
clearer position in respect of what are the strategic initiatives
needed to deal with the many issues affecting the airline, in
which the Jamaican Government has a 16 per cent stake.
Salary
Meanwhile, Mr. Howai and Trade Minister Vasant Bharath have
defended Mr. DiLollo's US$33,000 a month salary, which has come
under scrutiny from Independent Liberal Party Leader Jack Warner,
the report relates.
Mr. Bharath, in response to the concern raised by the ILP, argued
that the airline's former CEOs received salaries equivalent to
that paid to Mr. DiLollo, the report notes.
The report discloses that Mr. Bharath said the airline industry is
under significant competitive pressure worldwide, with many
mergers and acquisitions aimed at reducing costs. Mr. Bharath
said it is necessary to pay what is expected to lure people with
the appropriate expertise to work at CAL, the report relates.
Mr. Bharath said it was clear that Trinidad and Tobago may not
have had the expertise and therefore the Board felt it was best to
source someone from abroad, the report notes.
And according to Mr. Howai, Mr. DiLollo has had a positive impact
on CAL in various ways, highlighting improvement in staff morale,
output, and the overall performance of the airline, the report
adds.
About Caribbean Airlines
Caribbean Airlines Limited -- http://www.caribbean-airlines.com/
-- provides passenger airline services in the Caribbean, South
America, and North America. The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods. In addition, it operates a duty
free store in Trinidad. Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.
As reported in the Troubled Company Reporter-Latin America on July
11, 2014, Trinidad and Tobago Newsday said that Caribbean Airlines
is facing another loss. However, Finance Minister Larry Howai is
hopeful the loss could be narrowed down to less than TT$100
million, according to Trinidad and Tobago Newsday. Mr. Howai
noted the airline industry is not the easiest and many airlines
have gone bankrupt at some point.
Citing Caribbean360.com, the TCRLA on May 20, 2013, said Minister
Howai said Caribbean Airlines Limited recorded losses estimated at
US$70 million in 2012. In 2011, CAL had recorded losses of US43.7
million.
CONSOLIDATED ENERGY: S&P Assigns 'BB' CCR, Notes Issuances 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' corporate
credit rating on Consolidated Energy Limited (CEL). At the same
time, S&P assigned its 'BB-' issue-level rating to CEL's notes
issuances: 144A five-year fixed-rate senior unsecured notes for up
to $1.05 billion, and 144A five-year floating-rate senior
unsecured notes for up to $200 million. CEL's wholly-owned
financing vehicle, Consolidated Energy Finance, S.A. (CEF) issued
the notes. The outlook on the issuer credit rating is positive.
"CEL successfully issued $1.25 billion in senior unsecured notes
to acquire the 56.53% remaining equity shares of Methanol Holding
(Trinidad) Ltd. through CEL's wholly-owned financing vehicle,
Consolidated Energy Finance," said Standard & Poor's credit
analyst Francisco Gutierrez. The Trinidadian government sold MHTL
to CEL for about $1.18 billion. S&P rates the senior unsecured
notes one notch below the corporate credit rating, reflecting the
subordination coming from the existence of secured debt for about
$700 million at the operating companies' level. According to the
company's Dec. 31, 2013, proforma financials, CEL's ratio of
priority obligations to net tangible assets is at about 40%,
creating a potential material disadvantage to noteholders under a
bankruptcy or liquidation scenario. This is partly mitigated by
the upstream guarantee from MHTL on the issuance and by S&P's
expectation that secured debt will be repaid during the next four
years. In the longer term, the bulk of the company's debt is
primarily made up of the issued notes.
The rating on CEL reflects its exposure to inherent commodity
price volatility, its industrial asset concentration in a single
site when compared with higher-rated peers, and certain product
concentration in methanol. The mitigating factors are the
company's leading market position, large scale of operations,
diversified customer base, and end industries of methanol. S&P
also incorporates its logistic capabilities, the natural hedge it
provides for its business divisions through contracts with the
National Gas Company of Trinidad and Tobago Ltd. (NGC; A-/Stable/
--), and benefits from the vertical integration that its
shareholders provide.
***********
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 * * *