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/raid1/www/Hosts/bankrupt/TCRLA_Public/150312.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, March 12, 2015, Vol. 16, No. 050 Headlines A N T I G U A & B A R B U D A LIAT: St. Lucia Prime Minister Optimistic About Future B R A Z I L PETROLEO BRASILEIRO: Moody's Says Probe Weakens Brazil's Sectors C A Y M A N I S L A N D S COLONNADE INVESTMENTS: Members to Hear Wind-Up Report on March 20 DOVER OFFSHORE: Shareholders Receive Wind-Up Report EATON VANCE: Shareholders Receive Wind-Up Report EDDYSTONE OFFSHORE: Members to Hear Wind-Up Report on March 23 LION INVESTMENTS C: Shareholder to Hear Wind-Up Report on March 27 OLOOK LTD: Shareholders to Hear Wind-Up Report on March 19 P MANAGEMENT COMPANY: Members to Hear Wind-Up Report on March 18 PASSIONFRUIT TRADING III: Member to Hear Wind-Up Report on April 1 WASHINGTON LOAN: Shareholder to Hear Wind-Up Report on March 20 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Leader Wants Zero LatAm Trade Barriers T R I N I D A D & T O B A G O REPUBLIC BANK: To Pay Over US$.2MM for Breaching Takeover Code V E N E Z U E L A VENEZUELA: "Is Not Threatened by US Sanction," Ambassador Says X X X X X X X X X LATAM: Tax Revenues Remained Stable in 2013 says IDB - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: St. Lucia Prime Minister Optimistic About Future ------------------------------------------------------ The Daily Observer reports that St. Lucia Prime Minister Dr. Kenny Anthony has expressed optimism about plans by the regional airline, LIAT, operating as Leeward Islands Air Transport, to streamline operations to cut costs and become more efficient. "The changes do provide a basis for optimism. I think some courage is finally being applied to deal with the situation with LIAT," Anthony told reporters, according to The Daily Observer. The report notes that the airline recently announced plans to cut 180 jobs, dispose of its Dash 8 fleet and reduce the number of aircraft based in Antigua and Barbuda. The plans are aimed at putting more capacity into Barbados with two additional aircraft from the end of October 2015, resulting in fewer flights out of Antigua, the report relates. "Obviously it is not going to be easy for the government and people of Antigua, but they have to understand that governments cannot continue to pump money year after year into LIAT, despite the carrier's losses," the report quoted Dr. Anthony as saying. The report relays that Dr. Anthony said LIAT's shareholder governments have understood that the time has come to take "dramatic action" to deal in a deliberate way with the problems of the carrier. "Caribbean people need LIAT badly," Dr. Anthony said, adding that decisive action was necessary to restore the loss-making airline to viability, notes the report. LIAT recently announced that it would re-locate four of the airline's new ATR aircraft at the Grantley Adams International Airport in Barbados, while Antigua will have two, the report relays. The remaining two aircraft will be based in Trinidad. 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 Dec. 2, 2014, Caribbean360.com said that chairman of the shareholder governments of the financially troubled regional airline, LIAT, operating as Leeward Islands Air Transport, Dr. Ralph Gonsalves said while he is unaware of the details regarding any possible retrenchment of employees, the airline needs to deal with its high cost of operations. The TCR-LA on March 10, 2014, citing Caribbean360.com, reported that 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, David Evans replaced Mr. Brunton as chief executive officer. =========== B R A Z I L =========== PETROLEO BRASILEIRO: Moody's Says Probe Weakens Brazil's Sectors ---------------------------------------------------------------- The corruption investigation into Petroleo Brasileiro S.A. (Petrobras) will negatively affect parts of the public and private sectors, but government support for the company is likely to help contain the credit-negative impact, says a report from Moody's Investors Service. Petrobras' problems will negatively affect Brazil's oil and gas production chain, its construction and infrastructure sectors, real estate in Rio de Janeiro state and the companies that support these sectors. Petrobras' heightened liquidity risks as a result of the delays in delivering audited financial statements as well as its reduced spending will impact the engineering and construction companies under indictment, but also larger infrastructure investment groups, according to the report "Petrobras Setbacks Worsen Hazards in Brazil's Public and Private Sectors." "Low oil prices will exacerbate the deterioration in Petrobras' liquidity position in the mid-term," says Marianna Waltz, a Moody's Associate Managing Director. "It will also spread the negative effects down the supply chain, weakening the financial and operating performance of the vessels that are part of Petrobras' vital offshore production effort." To counter its weakening liquidity, Petrobras has implemented spending cuts that will also have widespread implications for a variety of sectors in Brazil, including the public finances of Rio de Janeiro state. Highly dependent on oil, the drop in tax revenue and royalties from oil would affect everything from engineering & construction and oil & gas companies to real estate development in the state. In addition, the probe could result in lower bank earnings, especially if public banks, already grappling with lackluster loan growth, have to support Petrobras to prevent wider economic fallout. Given Petrobras' influence on the economy, the federal government is likely to be willing to support the company, financially, though it is less clear whether the government would be able to muster the very large amounts that might be required in the short time needed to avoid default. "Petrobras plays a key role in long-term investment projects in Brazil," says Waltz. "A severe deterioration in its credit quality would put Brazil's banking sector, domestic capital markets and broader economy at risk." The immediate implications for the sovereign's credit profile are limited. Moody's does not expect that government support to Petrobras would lead sovereign debt to exceed 70% of GDP under any scenario. The implications for the sovereign would principally depend on the credibility of the government's fiscal and economic policy response. Moody's downgrade of all ratings on Petrobras on Feb. 24, 2015 and the agency's downgrade of the ratings on several Brazil E&C companies since November 2014 reflect these risks. ========================== C A Y M A N I S L A N D S ========================== COLONNADE INVESTMENTS: Members to Hear Wind-Up Report on March 20 ----------------------------------------------------------------- The members of Colonnade Investments Limited will hear on March 20, 2015, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Parsons Harneys Services (Cayman) Limited Harbour Place, 4th Floor 103 South Church Street P.O. Box 10240 Grand Cayman KY1-1002 Cayman Islands DOVER OFFSHORE: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Dover Offshore Fund II, Ltd. received on March 10, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited c/o Morna Chisholm Jo-Anne Maher Telephone: (345) 814-9255 Facsimile: (345) 949-4647 EATON VANCE: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Eaton Vance EMLIP Commodity Subsidiary, Ltd received on March 11, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Boston Management and Research c/o Barnaby Gowrie Two International Place, Boston, MA 02110 USA Telephone: +1 (345) 914 6365 EDDYSTONE OFFSHORE: Members to Hear Wind-Up Report on March 23 -------------------------------------------------------------- The members of The Eddystone Offshore Fund, Ltd will receive on March 23, 2015, at 11:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Maricorp Services Ltd. c/o J. Andrew Murray Telephone: 345-949-9710 P.O. Box 2075 Grand Cayman, KY1-1105 Cayman Islands LION INVESTMENTS C: Shareholder to Hear Wind-Up Report on March 27 ------------------------------------------------------------------ The shareholder of Lion Investments C Limited will hear on March 27, 2015, at 8:45 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 OLOOK LTD: Shareholders to Hear Wind-Up Report on March 19 ---------------------------------------------------------- The shareholders of Olook, Ltd. will hear on March 19, 2015, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Andre Nobre De Sousa Beisert c/o Campbells Corporate Services Limited Willow House, Floor 4, Cricket Square P.O. Box 268 Grand Cayman KY1-1104 Cayman Islands Telephone: +1 (345) 949 6258 Facsimile: +1 (345) 945 2877 P MANAGEMENT COMPANY: Members to Hear Wind-Up Report on March 18 ---------------------------------------------------------------- The members of P Management Company Ltd. will hear on March 18, 2015, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Charles Pilotaz Telephone: +41 79 137 1329 Harbour Place, 4th Floor 103 South Church Street P.O. Box 10240 Grand Cayman KY1-1002 Cayman Islands PASSIONFRUIT TRADING III: Member to Hear Wind-Up Report on April 1 ------------------------------------------------------------------ The sole member of Passionfruit Trading III (Cayman) Limited will receive on April 1, 2015, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Management Limited P.O. Box 71 Craigmuir Chambers Road Town, Tortola British Virgin Islands WASHINGTON LOAN: Shareholder to Hear Wind-Up Report on March 20 --------------------------------------------------------------- The shareholder of Washington Loan Funding Limited 2014-1 will hear on March 20, 2015, at 10:00 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 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Leader Wants Zero LatAm Trade Barriers ---------------------------------------------------------- Dominican Today reports that President Danilo Medina said the Central American Integration System (SICA) or any other Latin American integration initiative will succeed only if trade barriers within the region are eliminated, which in his view will help create wealth and jobs. The Dominican leader, speaking in the XLV SICA Summit of Heads of State and Government, also lauded Spain's push to consolidate integration, according to Dominican Today. "A good example of what's the way forward is our organization's collaboration with Spain, which has become one of the major contributors of our integration system," the report quoted Mr. Medina as saying. The report notes that Mr. Medina stressed SICA's key programs, such as support for tourism and for MSMEs to access regional market. "SICA's agenda also strengthens our information systems in tourism," he said. Public-Private Partnership Speaking to a group of business leaders from Central America, Spain and Dominican Republic, Mr. Medina said a public- private partnerships is the best way to deal with the challenges and opportunities of development, the report adds. ================================ T R I N I D A D & T O B A G O ================================ REPUBLIC BANK: To Pay Over US$.2MM for Breaching Takeover Code -------------------------------------------------------------- Trinidad Express reports that the Republic Bank has agreed to pay a settlement of US$285,000 for breaching Ghana's takeover code with regard to the bank's acquisition of shares of HFC Bank in the African country. Ghana's Securities and Exchange Commission cleared Republic Bank of allegations of insider trading even though it ordered the bank to pay GHS1 million for breaching the code, according to Trinidad Express. The report notes that the allegations surfaced last year when Republic was acquiring HFC shares from Union Bank of Nigeria. The report relates that the Republic Bank Managing Director David Dulal-Whiteway confirmed the bank will settle the claim but stressed that the bank "unintentionally" breached the takeover code. Republic owns 40 per cent of HFC Bank. In May 2014 HFC Bank took legal action against Republic and Ghana's SEC, claiming breaches of the SEC code, the report notes. The SEC on March 3 ruled that Republic unintentionally breached some rules of the takeover code, the report recalls. Mr. Dulal- Whiteway told the Express that the bank expects to get SEC approval and HFC remains a "good acquisition". ================= V E N E Z U E L A ================= VENEZUELA: "Is Not Threatened by US Sanction," Ambassador Says -------------------------------------------------------------- The Daily Observer reports that the Venezuelan Ambassador to Antigua & Barbuda, Carlos Perez is adamant that a recent US sanction on his country will not adversely affect relations with the nation. The United States declared Venezuela "a national security threat" and ordered sanctions against seven officials from the South American country, in the worst bilateral diplomatic fall out since socialist President Nicolas Maduro took office in 2013, according to The Daily Observer. The report notes that Ambassador Perez said the declaration by the United States threaten diplomatic ties with its affiliate countries. The report relates that Ambassador Perez said, "So far many countries in Latin America and the Caribbean have expressed support to Venezuela." The diplomat said the only foreseeable, international backlash will be weakened diplomatic relations with the US, the report notes. The report discloses that Ambassador Perez said the US's recent sanction, for what they call breached of the democratic processes among other accusations, "is clear interference." "We totally reject the executive order of the United States. . . . It's almost a kind of provocation to Venezuela, because what country has the right to qualify another one regarding internal issues," Ambassador Perez queried, the report relays. US government officials have indicated that declaring any country a threat to national security is the first step in starting a sanctions program. The same process has been followed with countries such as Iran and Syria, the report discloses. ================= X X X X X X X X X ================= LATAM: Tax Revenues Remained Stable in 2013 says IDB ---------------------------------------------------- Tax revenues in Latin America and the Caribbean (LAC) have remained stable in 2013 and continue to be considerably lower, as a proportion of national incomes, than in most OECD countries. Revenue Statistics in Latin America and the Caribbean 1990-2013 (fourth edition) shows that the average ratio of tax revenue to GDP in the 20 Latin American and Caribbean countries covered by the report was 21.3 percent in 2013, 0.1 percentage point above the ratio in 2012. The tax-to-GDP ratio rose from 19.5 percent to 21.2 percent over the 2009-12 period. The report, produced jointly by the Inter-American Centre of Tax Administrations (CIAT), the Economic Commission for Latin America and the Caribbean (ECLAC), the Inter-American Development Bank (IDB), the Organization for Economic Cooperation and Development (OECD) and the OECD's Development Centre, was launched during the XXVII Regional Seminar on Fiscal Policy,held at ECLAC headquarters in Santiago, Chile. It shows that tax revenues rose significantly across the region over the 1990-2013 period, pushing the average tax to GDP ratio up by 7 percentage points, from 14.4 percent to March 10's 21.3 percent level. While this revenue boost has provided governments in the region increased capacity to improve spending on social programs and physical infrastructure, the tax to GDP ratio is still 13 percentage points below the OECD average of 34.1 percent, according to the report. Wide national variations exist across LAC countries. In 2013, the tax to GDP ratios for the 20 LAC countries included in the report range from Brazil (35.7 percent), which is above the OECD average, and Argentina (31.2 percent), to 14 percent in the Dominican Republic and 13 percent in Guatemala. The corresponding range in OECD countries was from 48.6 percent in Denmark to 19.7 percent in Mexico. The share of tax revenues collected by local governments in Latin America is small in most countries and has not increased, reflecting relatively narrow fiscal autonomy compared with OECD countries. The report includes two special chapters. The first measures the usefulness of taking into account non-tax revenues from natural renewable and non-renewable resources, on top of all mandatory contributions to private health and pensions, in addition to tax revenues traditionally covered. The second describes trends since 2000 in revenues from non-renewable natural resources in the LAC countries whose economies are driven by natural endowments, with aggregate projections up to 2014. Falling crude oil prices in the second half of 2014 are expected to drag down revenues, by as much as 1-1.5 percent of GDP in Bolivia, Ecuador and Mexico. In general, fiscal revenues from non-renewable, natural resources continue to be very important as a percentage of the total revenues in many countries across the region, and in some cases, such as Venezuela and Ecuador, account for more than 30 percent of the total fiscal revenues. A full text copy of the press release is available free at: http://is.gd/ydTtaM *********** 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 2015. 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 * * *