/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150320.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, March 20, 2015, Vol. 16, No. 056 Headlines A N T I G U A & B A R B U D A ANTIGUA & BARBUDA: Transport Board GM Detained on Fraud B A R B A D O S BARBADOS: Economy Beginning to Show Signs of Growth, Sinckler Says B R A Z I L GOL LINHAS: Fitch Affirms 'B-' IDR; Outlook Stable MENDES JUNIOR: S&P Lowers Rating to CCC & Removes from Watch Neg. PARANA BANCO: S&P Affirms 'BB/B' Rating; Outlook Remains Negative PETROLEO BRASILEIRO: Swiss Freeze Bank Assets as Part of Probe C A Y M A N I S L A N D S CHEMICAL EQUITY: Creditors' Proofs of Debt Due April 13 CHEMICAL HOLDINGS: Creditors' Proofs of Debt Due April 13 CHEMICAL IIP: Creditors' Proofs of Debt Due April 13 CHEMICAL INVESTMENTS: Creditors' Proofs of Debt Due April 13 EQUITY ZSC: Creditors' Proofs of Debt Due April 13 FREMAR INVESTMENTS: Creditors' Proofs of Debt Due March 31 IBIZA BUSINESS: Creditors' Proofs of Debt Due March 31 JOVI INVESTMENTS: Creditors' Proofs of Debt Due March 31 MEME INVESTMENTS: Creditors' Proofs of Debt Due March 31 PETROASIA LIMITED: Creditors' Proofs of Debt Due April 10 STRATUS HOLDINGS: Creditors' Proofs of Debt Due April 23 STRATUS INVESTMENTS: Creditors' Proofs of Debt Due April 23 ZS ENTERPRISES: Creditors' Proofs of Debt Due April 13 ZS EQUITY: Creditors' Proofs of Debt Due April 13 ZS HOLDINGS: Creditors' Proofs of Debt Due April 13 ZS INVESTMENTS: Creditors' Proofs of Debt Due April 13 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Official Rejects that Labor Act Harms Economy G U A T E M A L A BANCO AGROMERCANTIL: Fitch Affirms 'BB' IDR; Outlook Stable H O N D U R A S * HONDURAS: "Met Quantitative Targets for December," IMF Says J A M A I C A JAMAICA: Cuba a Threat to Manufacturing Sector JAMAICA: "Credit Conditions Have Tightened," BOJ Says V E N E Z U E L A VENEZUELA: Allies Line up With Maduro on Faceoff With US - - - - - =============================== A N T I G U A & B A R B U D A =============================== ANTIGUA & BARBUDA: Transport Board GM Detained on Fraud ------------------------------------------------------- The Daily Observer reports that General Manager of the Antigua & Barbuda Transport Board Harry Josiah has been detained by police. Police sources told Observer media that Josiah was picked up March 17, 2015, according to The Daily Observer. Mr. Josiah is now in custody at the St John's Police Station. The report notes that Mr. Josiah is reportedly being investigated for fraud, but no charges have been laid against him. The GM was sent home last September without a date of return, pending the outcome of an investigation, the report relates. Mr. Josiah, however, returned to work in January but was placed in a room without the necessary materials to carry out his duties, the report discloses. Upon coming to office in 2014, the Labor Party government launched a probe into the Transport Board under Josiah's tenure, the report relays. Minister Robin Yearwood had indicated that more than 100 government vehicles were unaccounted-for and, others were seemingly auctioned for sums far below their values, the report notes. Hubert Jarvis has been acting general manager although Josiah remained on the job, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on September 23, 2014, The Daily Observer said that Antigua & Barbuda could soon find itself in the company of Japan, Zimbabwe, and Greece, the countries with the highest national debts. In the January 2014 budget presentation, the former administration indicated that the nation's debt was 87 per cent of GDP, according to The Daily Observer. However, Prime Minister Gaston Browne has disputed the figure, deeming it to be as high as 130 per cent, the report noted. Minister Browne said while his government's increased borrowing is pushing up the nation's debt-to-GDP ratio, it is necessary to solve the country's problems, the report related =============== B A R B A D O S =============== BARBADOS: Economy Beginning to Show Signs of Growth, Sinckler Says ------------------------------------------------------------------ Caribbean360.com reports that the Barbados government said the economy is showing signs of growth and that the sacrifices made by nationals over the past months have not been in vain. Finance Minister Chris Sinckler delivering the 2015-16 estimates of expenditure and revenue in Parliament, said that the home grown fiscal adjustment and stabilization program has started to bear fruit with the economy growth recorded in 2014 being 0.3 per cent and that the economy should grow between one and two per cent this year, according to Caribbean360.com. "At the end of this current financial year the primary balance will improve from negative BDS$385 million (One BDSs dollar = US$0.50 cents) to a surplus of BDS$56 million," Mr. Sinckler said as he led off the week long debate on the fiscal package, the report notes. Mr. Sinckler told legislators it would mean that for the first time since 2011, Barbados is running a primary surplus "and we are on our way to restoring the fiscal well-being of the country. "This will provide further evidence that the home grown growth and adjustment program is working. Our confidence in ourselves and our faith in our ability as a nation on the verge of our 50th anniversary of (political) independence is evidence that we can craft policies in Barbados by ourselves all be it with technical assistance from others as all do," Mr. Sinckler told Parliament, the report notes. Mr. Sinckler said the island's fiscal challenges are not over despite the encouraging situation, warning Barbadians that they would have to stay the course as outlined by the Freundel Stuart government for reviving the ailing economy, the report discloses. "The job is far from over, we must stay the course, maintain our discipline and keep and extend the fiscal gains we are making in 2014 into the next financial year and beyond," Mr. Sinckler said, the report relates. "As our economy returns to growth, the combination of robust growth and fiscal discipline argues well for our economic future," Mr. Sinckler said, adding that the stabilization measures embarked upon by the government including the decision to send home thousands of public servants have helped to reduce the high wages bill, notes Caribbean360.com. Mr. Sinckler said the measures also protected the Barbados dollar from devaluation. "The fiscal adjustment program has already shown success in attaining the preeminent objective of protecting the Barbados dollar and stabilizing the foreign exchange market," Mr. Sinckler said, adding "that is an empirical fact," the report notes. "The value of the dollar has been protected by the measures that contain spending in line with foreign exchange availability. The fiscal measures have achieved that most important objective to reduce the demand for foreign exchange in line with our ability to supply," the report quoted Mr. Sinckler as saying. Government's total expenditure for the financial year 2015-2016 is expected to be within the vicinity of BDS$4.3 billion with BDS$3.02 billion going towards current expenditure while BDS$1.2 billion represents capital expenditure and amortization, the report adds. =========== B R A Z I L =========== GOL LINHAS: Fitch Affirms 'B-' IDR; Outlook Stable -------------------------------------------------- Fitch Ratings has affirmed the ratings for Gol Linhas Aereas Inteligentes S.A.'s (GOL) and its fully owned subsidiaries as: Gol Linhas Aereas Inteligentes S.A. (GOL): -- Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B-'; -- Long-term national rating at 'BBB-(bra)'; -- USD200 million perpetual bonds at 'B-/RR4'. VRG Linhas Aereas S.A. (VRG): -- Long-term foreign and local currency IDRs at 'B-'; -- Long-term national rating at 'BBB-(bra)'; -- BRL500 million of local debentures due 2017 at 'BBB-(bra)'. GOL Finance, a company incorporated with limited liability in the Cayman Islands: -- USD225 million (USD84 million outstanding) of senior unsecured notes due 2017 at 'B-/RR4'; -- USD300 million (USD154 million outstanding) of senior unsecured notes due 2020 at 'B-/RR4'. GOL LuxCo S.A.: -- USD200 million (USD35 million outstanding) of senior unsecured notes due 2023 at 'B-/RR4'; -- USD325 million of senior unsecured notes due 2022 at 'B-/RR4'. The Rating Outlook is Stable. GOL's credit ratings are supported by its strong market position in the Brazilian domestic airlines industry and adequate liquidity. Key credit constraints include its limited geographic diversification and high adjusted gross leverage. Also factored into the ratings is the high degree of sensitivity of GOL's financial performance to several factors not controlled by the company such as competition, devaluation of the local currency versus the U.S. dollar, and fuel cost. The 'B-/RR4' rating of the company's unsecured public debt reflects average recovery prospects in the event of a default. The Stable Outlook for GOL's ratings incorporates the view that the company's consolidated adjusted gross leverage and liquidity, measured as total cash to LTM revenues, will remain in the 5.5x to 7x range and around 20%, respectively, during 2015. The ratings also factor in the expectation that the company will maintain neutral to slightly negative FCF during 2015. KEY RATING DRIVERS Rational Capacity Management to Continue GOL managed to reduce its capacity, measured as available seat kilometres (ASK), in the domestic market by approximately 7.4% and 1.7% during 2013 and 2014, respectively, closing 2014 with 43.4 billion of ASK in this segment. The company's EBIT margins were 3% and 4.9% during 2013 and LTM Sept. 2014, respectively, after reaching negative -11.2% in 2012. Margin recovery reflected an elevated pricing environment, which resulted from capacity reductions executed by the two main players, as well as a number of actions taken by the company to adjust its non-fuel costs. The ratings factor in the expectation that GOL will maintain a rational capacity management during 2015, resulting in flat to minimum capacity increases in the domestic market this year. High Operational Risk Add Volatility GOL's operational results are highly correlated to the domestic economy. The company is exposed to currency risk, as approximately 90% of the company's revenues are denominated in local currency, while approximately 60% of its cost structure is U.S. dollars denominated. In addition, about 60% of the company's debt denominated in U.S. dollars. Also factored in the ratings is the company's exposure to oil price volatility since fuel costs represent approximately 38%-40% of its cost structure. 2015 Revenue Growth Around 10% The company's demand (RPKs) increased by 9.8% during 2014. The current weak economic climate in Brazil will hurt results, as the business segment represents approximately 70% of the total traffic in the domestic market, which could lead to 6% to 9% demand growth during 2015. In terms of pricing, the company reached an important increase in yields of 19% in 2013, however during 2014 its yield only increased around 1.1%. In the current scenario, it is likely that yield increases remain difficult. High Adjusted Gross Leverage at 6.3x Fitch does not foresee GOL deleveraging materially during 2015. The company's adjusted gross leverage, measured as total adjusted debt to EBITDAR ratio, declined during 2013 and 2014 due to better cash flow generation (EBITDAR). GOL's adjusted gross leverage were 5.9x on Dec. 31, 2013 and 6.3x on Dec. 31, 2014. The company's EBIT margin during LTM Sept. 30, 2014 was 4.94%. The trends in Brazil's macroeconomic environment and the company's fuel hedge position are expected to limit the benefits from low international fuel price. Fitch expects the Brazilian economy to contract by 0.4% during 2015. The Brazilian real depreciation by 27% versus the U.S. dollar since January 28, 2015 also presents strong headwinds. Adequate Liquidity Positively factored in the ratings is the company capacity to maintain a strong liquidity position. GOL had a cash position of BRL2 billion as of Sept. 30, 2014, representing 20% of the company's LTM Sep. 2014 revenues. The company's exposure to Venezuela is estimated at around BRL300 million, which has been excluded for Fitch's cash calculation. GOL's short term debt increased during the second half of 2014 to BRL1.2 billion. The ratings incorporate the view that GOL will maintain adequate liquidity with cash/LTM revenue in the 15% to 20% range during 2015 and 2016. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- Brazilian GDP contracting by 0.4% in 2015; -- 2015 revenue per kilometers (RPK) increase - domestic market in the 6% to 9% range; -- Increase in the domestic market capacity of between 0% to 2% during 2015; -- 2015 Adjusted Gross Leverage in the 5.5x to 7x range; -- Cash and marketable securities over last twelve month (LTM) revenues around 20% during 2015-2016 period; -- Neutral to slightly negative 2015 free cash flow (FCF). RATING SENSITIVITIES Negative Rating Action: A negative rating action could be triggered by a deterioration of the company's credit protection measures - at levels not incorporated in the ratings - resulting from the some combination of the following factors: a fuel spike, significant devaluation of the local currency versus the U.S. dollar, excess capacity in the sector affecting pricing environment, and falling demand scenario affecting Brazil's domestic market. Positive Rating Action: Fitch could consider a positive rating action if GOL generates margins and FCF higher than the expected levels incorporated in the ratings, resulting in lower financial adjusted gross leverage while keeping current liquidity profile. MENDES JUNIOR: S&P Lowers Rating to CCC & Removes from Watch Neg. ----------------------------------------------------------------- Standard & Poor's Ratings Services downgraded Mendes Junior Trading e Engenharia (MJTE) to 'CCC' from 'CCC+' on global scale and to 'brCCC' from 'brCCC+' on national scale. At the same time, S&P removed the ratings from CreditWatch with negative implications where it placed them on Jan. 13, 2015. The outlook is negative. S&P subsequently withdrew all the ratings at MJTE's request. The company has no outstanding capital markets debt. The downgrade reflects S&P's expectation that the ongoing corruption investigations at Petroleo Brasileiro S.A. - Petrobras (BBB-/Stable/--) are jeopardizing MJTE's refinancing and cash flow generation. Although MJTE was able to refinance its most immediate bank obligations over the past few months, S&P still sees a high short-term debt concentration, while it expects its cash generation to be low and working capital swings to rise. Furthermore, MJTE's creditors have increased scrutiny in light of the ongoing investigations. At the time of the withdrawal, the negative outlook reflected MJTE's high short-term refinancing risk. PARANA BANCO: S&P Affirms 'BB/B' Rating; Outlook Remains Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB/B' global scale and 'brAA-' national scale ratings on Parana Banco S.A. The outlook remains negative. Standard & Poor's bases its ratings on Parana Banco's "weak" business position, "strong" capital and earnings, "adequate" risk position, "below-average" funding, and "adequate" liquidity, as S&P's criteria define these terms. S&P's bank criteria use our BICRA economic risk and industry risk scores to determine a bank's anchor, the starting point in assigning an issuer credit rating. The anchor for banks operating in Brazil is 'bbb-'. Brazil's economic risk reflects its low GDP per capita levels and only modest growth prospects that limit household credit capacity and the country's ability to withstand economic downturns. It also considers S&P's view that economic imbalances have increased as a result of rapid credit expansion amid a slowly growing economy that's likely won't pick up for the next two years, further increasing the household debt burden. In addition, S&P expects Brazil's external vulnerability to rise somewhat for the next several years, which also contributes to S&P's "high risk" assessment for economic imbalances. However, the corporate sector's moderate leverage and the limited portion of high-risk loans somewhat mitigate the higher risk factors in S&P's economic risk assessment. S&P's industry risk score of '5' reflects its belief that the industry risks in Brazil's banking sector have increased as well. In S&P's view, competitive dynamics have weakened as a result of increased risk appetite due to rapid credit growth among government-owned banks, despite sluggish economic conditions. Furthermore, S&P sees higher market distortions due to the public banks' increasing market share during the past two years and increasing spread differential between public and private banks. This has also resulted in the sector's falling profitability for the same period. However, the extensive coverage and effective supervision of the financial system, coupled with an adequate systemwide funding profile with low exposure to external funding, support S&P's industry risk assessment. "The negative outlook on Parana Banco reflects our view that there's certain pressure on Parana Banco's capital level under our RAC methodology," said Standard & Poor's credit analyst Guilherme Machado. S&P could lower the ratings if Parana Banco doesn't generate enough internal capital after dividends distribution to maintain the average RAC ratio above 10% for the next 24 months. On the other hand, if the bank continues to successfully diversify its business lines, or if the bank reduces its funding profile risk S&P could raise the ratings. PETROLEO BRASILEIRO: Swiss Freeze Bank Assets as Part of Probe -------------------------------------------------------------- The Guardian reports that authorities in Switzerland have frozen assets worth US$400 million as part of an investigation into alleged links between Swiss accounts and a sprawling corruption scandal in Brazil embroiling senior politicians and the state- owned oil company, Petroleo Brasileiro S.A. The Swiss attorney general has opened nine investigations into suspected links between Swiss accounts based on allegations of money laundering and other corrupt practices, according to The Guardian. Authorities said they have already repatriated more than US$120 million of the frozen assets to Brazil, the report relates. In a sign that Swiss and Brazilian investigators are cooperating closely, Swiss attorney general Michael Lauber flew to Brazil to meet with those charged with investigating the largest corruption scandal in Brazil's history, notes the report. Mr. Lauber said he has uncovered over 300 accounts at 30 Swiss banks allegedly used to process bribery payments under investigation in Brazil. In a statement, the attorney general's office said their action reflects a "clear intention to take a stand against the misuse of its financial center for criminal purposes," the report discloses. An ongoing investigation into the scandal, dubbed "Operation Car Wash", has been told that oil and construction executives skimmed millions from Petrobras contracts into Swiss bank accounts, the report relays. One former Petrobras executive, now a key prosecution informant, has testified that he channeled around US$100 million in bribes through a network of bank accounts, including in Switzerland, the report says. The disclosure comes as HSBC faces fresh revelations about its Swiss bank after scores of its accounts were linked to corruption scandals in Brazil and some of the country's most notorious organized crime figures, according to an investigation by the Brazilian newspaper O Globo and the UOL network, notes the report. Their analysis of the leaked banking files follows revelations about the Swiss bank reported by the Guardian, ICIJ, Le Monde and others last month. Brazil's tax authority said it would probe 6,600 undeclared accounts with HSBC's Swiss private bank linked to Brazil, including those linked to Operation Car Wash, the report discloses. HSBC has acknowledged past compliance and control failures at the Swiss division and said standards of due diligence were formerly significantly lower than they are at present, the report adds. About Petroleo Brasileiro Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. -- Petrobras (Brazilian Petroleum Corporation) -- explores for oil and gas and it produces, refines, purchases, and transports oil and gas products. The Company has proved reserves of about 14.1 billion barrels of oil equivalent and operates 16 refineries, an extensive pipeline network, and more than 8,000 gas stations. * * * As reported in the Troubled Company Reporter-Latin America on March 6, 2015, the deepening investigation into an alleged kickback scheme at Petroleo Brasileiro SA (Petrobras) has triggered concerns for the Brazilian banks with exposures not only to the state-controlled oil company, but also to its large base of suppliers, as well as the broader oil and gas (O&G) and construction industries, according to a new report from Moody's Investors Service. ========================== C A Y M A N I S L A N D S ========================== CHEMICAL EQUITY: Creditors' Proofs of Debt Due April 13 ------------------------------------------------------- The creditors of Chemical Equity Limited are required to file their proofs of debt by April 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands CHEMICAL HOLDINGS: Creditors' Proofs of Debt Due April 13 --------------------------------------------------------- The creditors of Chemical Holdings Limited are required to file their proofs of debt by April 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands CHEMICAL IIP: Creditors' Proofs of Debt Due April 13 ---------------------------------------------------- The creditors of Chemical IIP Limited are required to file their proofs of debt by April 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands CHEMICAL INVESTMENTS: Creditors' Proofs of Debt Due April 13 ------------------------------------------------------------ The creditors of Chemical Investments Limited are required to file their proofs of debt by April 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands EQUITY ZSC: Creditors' Proofs of Debt Due April 13 -------------------------------------------------- The creditors of Equity ZSC Limited are required to file their proofs of debt by April 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands FREMAR INVESTMENTS: Creditors' Proofs of Debt Due March 31 ---------------------------------------------------------- The creditors of Fremar Investments Limited are required to file their proofs of debt by March 31, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Jan. 30, 2015. The company's liquidator is: Lion International Management Limited Craigmuir Chambers Road Town Tortola VG 1110 British Virgin Islands c/o Mr. Philip C Pedro HSBC International Trustee Limited Compass Point 9 Bermudiana Road Hamilton HM 11 Bermuda Telephone: (441) 299-6482 Facsimile: (441) 299-6526 IBIZA BUSINESS: Creditors' Proofs of Debt Due March 31 ------------------------------------------------------ The creditors of Ibiza Business Inc. are required to file their proofs of debt by March 31, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Jan. 28, 2015. The company's liquidator is: Lion International Management Limited Craigmuir Chambers Road Town Tortola VG 1110 British Virgin Islands c/o Mr. Philip C Pedro HSBC International Trustee Limited Compass Point 9 Bermudiana Road Hamilton HM 11 Bermuda Telephone: (441) 299-6482 Facsimile: (441) 299-6526 JOVI INVESTMENTS: Creditors' Proofs of Debt Due March 31 -------------------------------------------------------- The creditors of Jovi Investments Limited are required to file their proofs of debt by March 31, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Jan. 28, 2015. The company's liquidator is: Lion International Management Limited Craigmuir Chambers Road Town Tortola VG 1110 British Virgin Islands c/o Mr. Philip C Pedro HSBC International Trustee Limited Compass Point 9 Bermudiana Road Hamilton HM 11 Bermuda Telephone: (441) 299-6482 Facsimile: (441) 299-6526 MEME INVESTMENTS: Creditors' Proofs of Debt Due March 31 -------------------------------------------------------- The creditors of Meme Investments Limited are required to file their proofs of debt by March 31, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Jan. 28, 2015. The company's liquidator is: Lion International Management Limited Craigmuir Chambers Road Town Tortola VG 1110 British Virgin Islands c/o Mr. Philip C Pedro HSBC International Trustee Limited Compass Point 9 Bermudiana Road Hamilton HM 11 Bermuda Telephone: (441) 299-6482 Facsimile: (441) 299-6526 PETROASIA LIMITED: Creditors' Proofs of Debt Due April 10 --------------------------------------------------------- The creditors of Petroasia Limited are required to file their proofs of debt by April 10, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 25, 2015. The company's liquidator is: Chris Narborough Telephone: 1-345-9253199 CN Cayman Law Ground Floor, DMS House, Genesis Place Dr. Roy's Drive, George Town Grand Cayman Cayman Islands STRATUS HOLDINGS: Creditors' Proofs of Debt Due April 23 -------------------------------------------------------- The creditors of Stratus Holdings Limited are required to file their proofs of debt by April 23, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 9, 2015. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands STRATUS INVESTMENTS: Creditors' Proofs of Debt Due April 23 ----------------------------------------------------------- The creditors of Stratus Investments Limited are required to file their proofs of debt by April 23, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 9, 2015. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands ZS ENTERPRISES: Creditors' Proofs of Debt Due April 13 ------------------------------------------------------ The creditors of ZS Enterprises Limited are required to file their proofs of debt by April 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands ZS EQUITY: Creditors' Proofs of Debt Due April 13 ------------------------------------------------- The creditors of ZS Equity Limited are required to file their proofs of debt by April 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands ZS HOLDINGS: Creditors' Proofs of Debt Due April 13 --------------------------------------------------- The creditors of ZS Holdings Limited are required to file their proofs of debt by April 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands ZS INVESTMENTS: Creditors' Proofs of Debt Due April 13 ------------------------------------------------------ The creditors of ZS Investments Limited are required to file their proofs of debt by April 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Official Rejects that Labor Act Harms Economy ----------------------------------------------------------------- Dominican Today reports that Immigration Director Jose Ricardo Taveras discarded affirmations that compliance with the Migration Act and other laws that protect local workers would harm the Dominican economy. The official responded to Housing Builders and Developers Association (ACOPROVI) President Fermin Acosta, who warned of the sector's collapse if all undocumented Haitian construction workers are repatriated, according to Dominican Today. The report notes that Mr. Acosta called impractical the enforcement of the Labor Code's ceiling of 20% foreign labor, and cautions that it could hobble the economy. "What we cannot do is continue to play along with the economic sectors that resist the formalization of their workforce, in violation of not only the Migration Act, but the Social Security Act and Labor Code," diariolibre.com quoted Mr. Taveras as saying, the report relates. The report adds that Mr. Taveras said the hiring of undocumented workers, the sidestepping of Social Security, as well as all costs associated with formalizing labor cannot continue, to "finally not pay them, and also benefit from the shadow of a rule which allows them to submit for tax purposes expenses payroll consisting of illegal aliens, among other advantages." ================= G U A T E M A L A ================= BANCO AGROMERCANTIL: Fitch Affirms 'BB' IDR; Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Banco Agromercantil de Guatemala's (BAM) long-term Issuer Default Rating (IDR) at 'BB'. The Rating Outlook is Stable. KEY RATING DRIVERS - BAM's IDRs & VR The bank's standalone creditworthiness, as indicated by its Viability Rating (VR) drives the IDR. The operating environment and sound capitalization highly influence the bank's ratings. BAM's ratings also reflect its stable liquidity and funding. In Fitch's view, the bank's limited pricing-power, above market average credit growth rates that can imply heightened risk appetite, loan concentration risks, modest profitability, and high exposure to the sovereign (2x Fitch Core Capital or FCC) weigh on BAM's ratings. Like all major local banks, BAM has a sizeable exposure to Guatemalan sovereign securities (LC and FC IDRs of 'BB'). Fitch does not expect this to change due to limited investment options in the country. BAM's sound capital buffers enhance its competitive positive relative to larger corporate-oriented banks. As Fitch expected, capitalization declined due to increasing business volumes, but it will likely remain above industry averages in the foreseeable future. BAM's capital is of high quality as it consists mostly of common equity and retained earnings. Fitch's base scenario is that the bank will maintain an FCC above 13% over the medium term as credit growth moderates. In the agency's opinion, maintaining sound loss-absorption cushions is necessary given high loan growth and concentration risks. A granular and stable base of retail, short-term deposits comprise the bulk of BAM's funding. To address liquidity gaps, the bank has been seeking to extend the maturity of its funding through a larger participation of wholesale funds. It successfully accessed international capital markets through the issuance of a senior unsecured loan participation note. Additionally, BAM had 19 credit lines approved from correspondent banks. Fitch views BAM's liquidity buffers, which consist of cash, due from banks and Guatemalan sovereign securities, as adequate. The expansion of borrowed funds drove an increase in the bank's loan to deposit ratio, but this should decrease to acceptable levels as credit growth slows down. Loan quality indicators are sound and impaired loan ratios have decreased consistently in recent years as the bank applied tighter underwriting criteria, more effective collection processes and stricter work-out tools, such as write-offs and loan restructuring. Fitch expects that the seasoning of recent fast loan growth will lead to credit quality deterioration, but this will be largely manageable for the bank. BAM applies conservative provisioning policies, where impairment trigger is set at loans overdue by 30 days, as per Colombian regulations. This has driven a material increase in coverage of impaired loans. Currently, the largest source of credit risk is the material obligor concentration, which increases sensitivity to sharp fluctuations in loan quality. Top 20 loans accounted 23% of gross loans and 1.71 times FCC; all of these exposures were performing and of good quality. Fitch does not expect concentration levels to decline in the short term given BAM's corporate orientation. Pressure on margins, due to increased funding costs and heightened competition in BAM's target segments, led to lower profitability indicators in 2014. Fitch expects that improving operating efficiency may provide a modest upside potential to improve core earnings in the short term, but convergence with peers is no longer the agency's base case. Although ratings do not factor explicit support, Fitch views Bancolombia's ('BBB'/Outlook Positive) 40% shareholding stake positively. Bancolombia has supported BAM's capitalization and is now in the process of integrating key risk management functions. Fitch believes Bancolombia has incentives to provide financial assistance to BAM if required, but potential mechanisms of support require approval from BAM's current majority shareholders. Therefore, the agency believes that support cannot be relied upon until Bancolombia increases its shareholding; this is expected within five years. RATINGS SENSITIVITIES - BAM'S IDR AND VR The Stable Outlook reflects Fitch's expectation of no substantial changes in BAM's risk profile in the foreseeable future. The IDR and VR are sensitive to bank maintaining a sound capitalization, as measured by a FCC ratio above 11.5%. Downward pressure to the ratings would occur if the bank increases its risk appetite in order to pursue more aggressive loan growth, which leads to a significant deterioration of asset quality and/or capitalization. BAM's IDRs and VR are at the same level as Guatemala's sovereign rating. Given the operating environment's high influence on BAM's VR, changes in the sovereign's ratings may result in a similar action on BAM's ratings. Potential for positive rating action in the VR is limited given the bank's moderate franchise and lower financial flexibility relative to peers. However, the IDRs could be upgraded if Bancolombia becomes the majority shareholder. Conversely, a breach in the shareholding agreement with Bancolombia that weakens capital and/or liquidity could result in a downgrade of BAM's ratings. KEY RATING DRIVERS - AGROMERCANTIL SENIOR TRUST (AST) Agromercantil Senior Trust's (AST) rating is in line with BAM's IDR reflecting that the senior unsecured obligations rank equally to the bank's unsecured and unsubordinated obligations. AST'S RATINGS SENSITIVITIES Changes in the notes' rating would move in tandem with those of BAM. KEY RATING DRIVERS & RATING SENSITIVITIES - SUPPORT RATING AND SUPPORT RATING FLOOR The Support Rating of '5' and Support Rating Floor of 'No Floor' reflect Fitch's view that while support from the authorities is possible, it cannot be relied upon given BAM's limited systemic importance. The Support Rating and Support Rating Floor are sensitive to any change in assumptions around the propensity or ability of the Guatemalan government to provide timely support to the bank. Fitch has affirmed these ratings: Banco Agromercantil de Guatemala, S.A. -- Long-term foreign currency IDR at 'BB'; Outlook Stable; -- Short-term foreign currency IDR at 'B'; -- Long-term local currency IDR at 'BB'; Outlook Stable; -- Short-term local currency IDR at 'B'; -- Viability rating at 'bb'; -- Support at '5'; -- Support Rating Floor at 'NF'; Agromercantil Senior Trust -- Long-term foreign currency loan participation notes at 'BB'. =============== H O N D U R A S =============== * HONDURAS: "Met Quantitative Targets for December," IMF Says ------------------------------------------------------------- An International Monetary Fund (IMF) mission, led by Lisandro Abrego, visited Tegucigalpa during March 9-17 to conduct the first review of Honduras' Fund-supported program, approved on December 3, 2014. At the conclusion of the visit, Mr. Abrego issued the following statement in Tegucigalpa: "The mission is encouraged by the progress made to stabilize the Honduran economy and return the public finances to a sustainable path. The staff team found that all quantitative targets for December 2014 were met, in most cases with ample margins. The structural benchmarks were also observed, while significant progress toward meetings March 2015 benchmarks has been made. "Macroeconomic performance in 2014 generally exceeded program expectations. Real GDP growth is estimated to have risen to a solid 3.1 percent while inflation ended at 5.8 percent -- well below the program projection -- owing mainly to lower fuels prices. The external current account deficit decreased from 9.5 percent of GDP in 2014 to 7.4 percent of GDP, reflecting fiscal consolidation, more favorable terms of trade, and strong growth of remittances. International reserves increased by about US$260 million, comfortably exceeding the program target and bringing reserve coverage to 4.3 months of imports. Fiscal performance was also significantly stronger than anticipated, with the deficit of the combined public sector declining to 4.3 percent of GDP, well below the program target of 5.9 percent of GDP. The overall deficit of Empresa Nacional de Energia Electrica (ENEE) was reduced to 1.3 percent of GDP (from 1.8 percent of GDP the previous year), in line with the program target. "For 2015, the mission and the authorities reached understandings on the quantitative targets and appropriate policies to buttress macroeconomic stability while supporting solid economic growth and the expansion of social programs. These understandings are subject to approval by the IMF's Management and Executive Board, which is expected to consider the first program review in May. "The 2015 outlook of the Honduran economy is more positive than envisaged previously as a result of the macroeconomic over performance in 2014, the lower oil prices and a steady US recovery. GDP growth is expected to increase to 3.3 percent while inflation is projected to fall to 4 3/4 percent. This year's fiscal program objective is to continue with fiscal consolidation to reduce the CPS deficit to about 3 percent of GDP. The authorities will also expand their poverty reduction programs. Monetary policy will continue to focus on keeping inflation under control and strengthening the external position while providing adequate support to economic growth. The external current account is also expected to improve, driven by lower fuel imports and more coffee exports, supporting an increase in international reserve coverage (projected to rise to 4.5 months of imports). The government will continue undertaking structural reforms in the electricity sector, including the establishment of a fully functional new regulator and the agreed measures to further strengthen the finances of ENEE. "The mission met with President Juan Orlando HernAndez, Minister Coordinator of the Government Jorge HernAndez Alcerro, Central Bank Governor and Head of the Economic Cabinet Marlon TAbora, Minister of Infrastructure Roberto Ordonez, Minister of Finance Wilfredo Cerrato, other senior government officials, members of congress, and private sector representatives. "The staff team would like to thank the authorities and private sector representatives for a cordial and productive dialogue, as well as for their excellent cooperation and hospitality." ============= J A M A I C A ============= JAMAICA: Cuba a Threat to Manufacturing Sector ---------------------------------------------- RJR News reports that a former Jamaican ambassador to Cuba is warning that the country could lose some of its manufacturers to the communist nation, as its economic and diplomatic relations with the United States improve. Ambassador Stewart Stephenson has expressed concern that the opening up of Cuba could cause some of the country's manufacturers to relocate to that country, according to RJR News. The report notes that Ambassador Stephenson said a manufacturer recently explained to him his rationale for considering a move of his operations to Cuba: "The labor costs are lower there, they are more efficient in terms of their efforts and their work, and we are being offered tremendous incentives by the Cuban Government to come and establish manufacturing interests there." It was a threat that Jamaica needs to take seriously, Ambassador Stephenson stressed, the report relates. Hitherto, there has been far more concern in Jamaica about the potential threat to Jamaica's tourism industry, emanating from the opening of Cuba to American visitors, the report discloses. Ambassador Stepehson is less concerned on that score, however, asserting that Cuba cannot compete with Jamaica in the area of customer service, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2015, Fitch Ratings has affirmed Jamaica's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B-'. The issue ratings on Jamaica's senior unsecured foreign and local currency bonds are also affirmed at 'B-'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The Country Ceiling is affirmed at 'B' and the short-term foreign currency IDR at 'B'. JAMAICA: "Credit Conditions Have Tightened," BOJ Says ----------------------------------------------------- RJR News reports that the Bank of Jamaica said credit conditions have tightened in Jamaica. The central bank released the results of survey for the December 2014 quarter and it showed the market for loans tightened as lending entities applied more restrictive policies to both secured and unsecured loans, according to RJR News. The report notes that those polices included hikes in interest rates and the requirements that have to be met before loans are disbursed. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2015, Fitch Ratings has affirmed Jamaica's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B-'. The issue ratings on Jamaica's senior unsecured foreign and local currency bonds are also affirmed at 'B-'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The Country Ceiling is affirmed at 'B' and the short-term foreign currency IDR at 'B'. ================= V E N E Z U E L A ================= VENEZUELA: Allies Line up With Maduro on Faceoff With US -------------------------------------------------------- ABC News reports that leftist allies of Venezuela rallied behind embattled President Nicolas Maduro in his faceoff with the U.S. government, which he has accused of trying to oust his socialist administration. In an emergency meeting of the ALBA bloc of regional governments, representatives from 12 nations decried what they called attempts by Washington to undermine President Maduro with its recent decision to sanction Venezuelan officials accused of violating human rights during anti-government protesters last year, according to ABC News. By far the strongest defense came from Cuban President Raul Castro, whose government is negotiating for the re-establishment of diplomatic relations with the U.S. after more than a half century of Cold War frictions, the report notes. "The U.S. needs to understand once and for all that it can't seduce or buy Cuba, just as it can't intimidate Venezuela," the report quoted Mr. Castro as saying. "Our unity is indestructible," Mr. Castro added, says the report. The meeting in Caracas came as tensions between Venezuela and the U.S. reached a fevered pitch after President Maduro this month claimed Washington is plotting to oust him and ordered the U.S. Embassy in Caracas to slash staffing levels, the report relays. The U.S. has denied the accusations and it applied sanctions on the seven Venezuelan officials over the crackdown on last year's protests, notes the report. In an ad in The New York Times, President Maduro's government declared that "Venezuela is not a threat" to U.S. security and urged Obama administration to immediately cease hostile actions, the report discloses. "Never before in the history of our nations has a president of the United States attempted to govern Venezuelans by decree," the ad said, the report notes. "It is a tyrannical and imperial order and it pushes us back into the darkest days of the relationship" between the U.S. and Latin America. In Washington, senior U.S. administration officials told the Senate Foreign Relations Committee that they will continue to press Venezuela and said concerns about the President Maduro government's human rights record would be one of Obama's top priorities when he travels next month to Panama to attend the Summit of Americas alongside President Maduro, Castro and 32 other regional leaders, notes the report. Alex Lee, the U.S. deputy assistant secretary of state for Latin America, said legislative elections expected to take place in Venezuela later this year offered the best chance to defuse a deepening political and economic crisis, the report relays. The oil-dependent economy had widespread food shortages and the world's fastest inflation even before the recent plunge in crude prices burned a hole in the government's finances, the report notes. The report adds that Mr. Lee said it is important for regional governments, almost all of which have criticized the U.S. sanctions as heavy handed, to mount a robust observation mission to ensure voting results are credible. *********** 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 * * *