TCRLA_Public/150409.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, April 9, 2015, Vol. 16, No. 069


                            Headlines



A N T I G U A  &  B A R B U D A

LIAT: Baldwin Spencer Blasts Antigua Prime Minister on Airline


B A R B A D O S

* BARBADOS: Barbados Dollar Devaluation Won't Support Econ. Growth


B R A Z I L

SCHAHIN PETROLEO: Seeks to Avert Bankruptcy


C A Y M A N  I S L A N D S

AQUARIUS LTD: Shareholder to Hear Wind-Up Report on May 4
BRIGHTIME VENTURES: Shareholders' Final Meeting Set for May 14
CLARITUS F SPC I: Shareholders' Final Meeting Set for April 27
CLARITUS F SPC II: Shareholders' Final Meeting Set for April 27
CLARITUS M SPC I: Shareholders' Final Meeting Set for April 27

CLARITUS M SPC II: Shareholders' Final Meeting Set for April 27
HCSP SPC: Shareholder to Hear Wind-Up Report on April 21
KIBOU LTD: Shareholder to Hear Wind-Up Report on May 7
MAGHREB VICTORY: Shareholders' Final Meeting Set for April 29
SKYDIVE COSTA: Shareholders' Final Meeting Set for April 22

YCG (2001): Creditors' Proofs of Debt Due April 20
YUKON RE: Shareholder to Hear Wind-Up Report on May 4


C H I L E

LATAM AIRLINES: LAN Air Faces Conflicts, Delays and Cancelations


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Expert Spreads Blame for Energy Crisis


                            - - - - -


===============================
A N T I G U A  &  B A R B U D A
===============================



LIAT: Baldwin Spencer Blasts Antigua Prime Minister on Airline
--------------------------------------------------------------
Caribbean360.com reports that Opposition Leader Baldwin Spencer
has accused Prime Minister Gaston Browne of being "bombastic" in
his approach to dealing with the problems facing the Antigua-based
regional airline, LIAT.

"I find that he is just arrogant and bombastic and is just
creating all sorts of problems in saying whatever he likes,
however he likes and just getting at individuals without sitting
down and thoroughly examining what is required to be done and how
we are going to get the cooperation and understanding of other
persons," the report quoted Mr. Spencer as saying.

"You can't deal with that LIAT matter from a point of view of
being arrogant and bombastic," Mr. Spencer told listeners to
Observer Radio, the report notes.

The report discloses that Prime Minister Browne said he would
treat as "treason' plans for a new airline to compete with LIAT.

Prime Minister Browne said that he would also be seeking the
resignation of the airline's chief executive officer, David Evans,
if the plans about the new carrier prove to be true, the report
notes.

The document, allegedly authored at LIAT senior management,
proposes that a Barbados air carrier be established with its own
Air Operators Certificate (AOC) and Route Licensing Authorization,
the report relates.

The new company would effectively replace the majority of existing
LIAT services throughout the region and would seek to develop new
markets, the report says.

Prime Minister Browne also called for a change in the chairmanship
of the airline, saying he doesn't "see why one prime minister
should control the chairmanship of LIAT" and that it should be
rotated, the report notes.

"These are some of the issues affecting LIAT, I mean only one
person has brains out of all of the shareholder governments.  I am
saying there ought to be changes at the level of the directorship,
even in terms of the share holding positions of the various
governments, I believe the shares of Barbados should be diluted
because they believe because they have the majority shares that
everything must move to Barbados," Prime Minister Browne added,
the report relays.

St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves
warned against making unflattering statements about the airline,
saying it could undermine confidence in the business operations of
cash-strapped carrier, the report notes.

Prime Minister Browne said that his predecessor had been "cordial"
with the other shareholders and as a result "they pulled the rug
from under him, the report says.

"I understand that he believed so much in them that whenever they
had discussions they allowed him to talk and he would say 'look I
accept the recommendations of the other prime ministers who
spoke," Prime Minister Browne said, the report relays.

"I don't think it was a case that he did not have a contribution
to make, he chuckled at them when they had their sinister
motives," Prime Minister Browne said, adding "I am saying here not
under my leadership," notes the report.

But Mr. Spencer dismissed the allegations saying that Prime
Minister Browne was trying to shift the blame from himself, says
Caribbean360.com.

"You are the government, you came to office in June (last year) it
is now your responsibility," Spencer said, adding that "it is
absolute rubbish" for the prime minister to now seek to put blame
on others," Mr. Spencer said, the report relays.

Former finance minister Harold Lovell was also critical of the
approach taken by Prime Minister Browne on the LIAT issue saying
that he should not have called publicly for the resignation of the
airline's chief executive over the matter, the report relays.

"If the CEO is talking out of turn and if the CEO is putting out a
proposals that are clearly not in the interest of LIAT, the same
CEO you may need to go and talk with him," Mr. Lovell added.

                          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 A R B A D O S
===============


* BARBADOS: Barbados Dollar Devaluation Won't Support Econ. Growth
------------------------------------------------------------------
Caribbean360.com reports that a study undertaken by the Central
Bank of Barbados (CBB) is supporting arguments that devaluation of
currencies will not improve price competitiveness in very small
open economies like those in the Caribbean.

"In small economies, devaluation is more likely to cause high
inflation and economic contraction, rather than economic growth,"
said the study undertaken by Dr. Winston Moore of the Department
of Economics at the Cave Hill campus of the University of the West
Indies (UWI), CBB Governor Dr. DeLisle Worrell and UWI graduate
Jamila Beckles, according to Caribbean360.com.

They said the study using 33 small countries and 32 large
countries demonstrated that the small economy has very limited
prospects for import substitution, if there is an increase in the
relative prices of imports relative to domestic production, notes
the report.

"Small countries tend to have smaller import substitution
possibilities, averaging about 16 percent, while larger countries
could on average substitute almost one-third of their imports with
domestic production.  The combination of high import content and
exchange rate depreciation has a severe impact on inflation in the
small open economy, far greater than the larger economies," they
added, the report relays.

"The combination of high export concentration, limited import
substitution potential, and a high import propensity, all of which
appear from the data to be common characteristics of small
economies, implies that devaluation in small economies is
inflationary, and is not growth-promoting," they wrote in the
study titled "Size, Structure and Devaluation," according to
Caribbean360.com.

The report said the authors argued that there are insufficient
domestic producers to substitute efficiently for imports, and
therefore there is no possibility to mitigate the inflationary
impact of devaluation or imports.

"Exports are constrained by supply because the country is an
atomistic producer, domestic consumption of exportables offers no
scope for expansion, and domestic production of non-tradeables
become less productive with devaluation, so there will be no
expansion of output as a result of devaluation," they noted, the
report relays.

The authors regarded small economies as those with a population
below 1.2 million and gross domestic product (GDP) of eight
billion US dollars or less, says Caribbean360.com.

They found that on average, small countries have domestic
substitutes for about 16 percent of imports, while larger
countries could on average substitute almost one-third of their
imports with domestic production, the report says.

Barbados, for example, can only substitute a maximum of 15 per
cent of the import bill for its top five goods, namely mineral
fuels, vehicles, pharmaceutical products, organic chemicals and
mechanical appliances, the report notes.

The authors found that the combination of high import content and
exchange rate depreciation has a significant impact on inflation
in the small open economy, far greater than for larger economies.
Together, the combination of high export concentration -- on
average 77 per cent -- limited import substitution potential, and
a high import propensity, mean that for small economies,
devaluation is inflationary, and is not growth-promoting, the
report relays.

"This study provides an empirical explanation of the reason why,
in small economies, devaluation invariably causes high inflation
and often results in economic contraction, rather than economic
growth," they noted, the report adds.


===========
B R A Z I L
===========


SCHAHIN PETROLEO: Seeks to Avert Bankruptcy
-------------------------------------------
Peter Millard, Francisco Marcelino, and Filipe Pacheco at
Bloomberg News report that Schahin Petroleo & Gas SA is seeking a
credit line to avoid filing for bankruptcy protection, said two
people familiar with the matter.  Bonds tumbled.

Schahin Petroleo, which supplies Petroleo Brasileiro SA with
offshore drilling rigs and production platforms, is temporarily
halting operations at five of the units it has leased to
Petrobras, it said in an e-mailed statement obtained by Bloomberg
News.  The company could file for bankruptcy protection, known as
judicial recovery in Brazil, as early as this week, said one of
the people, who asked not to be named because the information
isn't public, Bloomberg News notes.

Bloomberg News relates that the company's Schahin II Finance Co.
notes due in 2022 tumbled 11.92 cents to 48 cents on the dollar on
April 6.

That's the biggest drop and the lowest price since they were sold
in March 2012, Bloomberg News relates.  The $651.5 million in
notes are backed by flows related to a long-term charter and
services agreement signed with Petrobras for a drill ship called
Sertao, Bloomberg News relays.

Newspaper Estado de Sao Paulo reported the potential bankruptcy
filing earlier April 6.

Petrobras is working with Shahin to shut operations safely, and is
reviewing contractual measures it can take, it said, Bloomberg
News discloses.

Last month, Fitch Ratings cut Schahin II Finance by two notches to
BB-, three steps below investment grade, citing higher leverage
and more difficult credit conditions, Bloomberg News relays.

The group's engineering unit, Schahin Engenharia SA, is among more
than 20 companies that have been temporarily banned from bidding
on new Petrobras projects amid allegations that suppliers and
builders paid bribes to inflate contract values, Bloomberg News
notes.

HSBC Holdings Plc is suing Schahin Engenharia for BRL173.6 million
($56 million) related to unpaid promissory notes, Bloomberg News
adds.

Schahin Petroleo & Gas SA is a rig and platform supplier to
Brazil's state-run producer.  The company, a wholly owned
subsidiary of Schahin Holding S.A. for the operation of the
vessel, is unconditionally pledged to the payment of Schahin II
Finance Company Limited's notes to be issued in the amount of $730
million.

As reported in the Troubled Company Reporter on March 26, 2015,
Standard & Poor's Ratings Services lowered its ratings on  Schahin
II Finance Limited's (Schahin II) notes to 'B+' from 'BB'.  The
outlook is negative.

TCRLA reported on March 17, 2015, Fitch Ratings has downgraded the
following Schahin II Finance Company Limited's Series 2012-1
senior secured notes due 2023 downgraded to 'BB- 'from 'BB+' ($650
million outstanding).


==========================
C A Y M A N  I S L A N D S
==========================


AQUARIUS LTD: Shareholder to Hear Wind-Up Report on May 4
---------------------------------------------------------
The shareholder of Aquarius Ltd will hear on May 4, 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:

          Arcadia Group Ltd
          Telephone: (345) 945 1830
          Facsimile: (345) 945 1835
          P.O. Box 10300 Grand Cayman KY1-1003
          Cayman Islands


BRIGHTIME VENTURES: Shareholders' Final Meeting Set for May 14
--------------------------------------------------------------
The shareholders of Brightime Ventures Limited will hold their
final meeting on May 14, 2015, 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:

          Ian D. Stokoe
          c/o Sarah Moxam
          Telephone: (345) 914 8634
          Facsimile: (345) 945 4237
          P.O. Box 258 Grand Cayman KY1-1104
          Cayman Islands


CLARITUS F SPC I: Shareholders' Final Meeting Set for April 27
--------------------------------------------------------------
The shareholders of Claritus F SPC I will hold their final meeting
on April 27, 2015, to receive the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

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


CLARITUS F SPC II: Shareholders' Final Meeting Set for April 27
---------------------------------------------------------------
The shareholders of Claritus F SPC II will hold their final
meeting on April 27, 2015, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


CLARITUS M SPC I: Shareholders' Final Meeting Set for April 27
--------------------------------------------------------------
The shareholders of Claritus M SPC I will hold their final meeting
on April 27, 2015, to receive the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

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


CLARITUS M SPC II: Shareholders' Final Meeting Set for April 27
---------------------------------------------------------------
The shareholders of Claritus M SPC II will hold their final
meeting on April 27, 2015, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


HCSP SPC: Shareholder to Hear Wind-Up Report on April 21
--------------------------------------------------------
The shareholder of HCSP SPC will hear on April 21, 2015, at
9:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Gene Dacosta
          Telephone: (345) 814 7765
          Facsimile: (345) 945 3902
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands


KIBOU LTD: Shareholder to Hear Wind-Up Report on May 7
------------------------------------------------------
The shareholder of Kibou Ltd. will hear on May 7, 2015, at 9:00
a.m., the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Marsh Management Services Cayman Ltd
          Governors Square, Building 4, 2nd Floor
          23 Lime Tree Bay
          P.O. Box 1051 Grand Cayman, KY1-1102
          Cayman Islands


MAGHREB VICTORY: Shareholders' Final Meeting Set for April 29
-------------------------------------------------------------
The shareholders of MAGHREB Victory Ltd. will hold their final
meeting on April 29, 2015, 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:

          Paul Travers
          Harbour Centre, 42 North Church Street
          George Town,
          Grand Cayman KY1-1110,
          Cayman Islands
          Telephone: +1 (345) 949 4018
          Facsimile: +1 (345) 949 7891


SKYDIVE COSTA: Shareholders' Final Meeting Set for April 22
-----------------------------------------------------------
The shareholders of Skydive Costa Brava Limited will hold their
final meeting on April 22, 2015, 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:

          Mr. Abdel Hameed Mostafa Ahmed
          c/o Avalon Ltd.
          Landmark Square, 1st Floor
          64 Earth Close
          P.O. Box 715 Grand Cayman KY1-1107
          Cayman Islands
          Facsimile: +1 (345) 769-9351


YCG (2001): Creditors' Proofs of Debt Due April 20
--------------------------------------------------
The creditors of YCG (2001) Ltd. are required to file their proofs
of debt by April 20, 2015, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on March 9, 2015.

The company's liquidators are:

          Susan Craig
          Jo-Anne Stephens
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands


YUKON RE: Shareholder to Hear Wind-Up Report on May 4
-----------------------------------------------------
The shareholder of Yukon RE, SPC will hear on May 4, 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:

          RSM Cayman Ltd.
          Harbour Place, 2nd Floor George Town
          P.O. Box 10311 Grand Cayman KY1-1003
          Cayman Islands


=========
C H I L E
=========


LATAM AIRLINES: LAN Air Faces Conflicts, Delays and Cancelations
----------------------------------------------------------------
During the upcoming days, various airports in Latin America will
be confronting possible delays and cancellations due to labor
conflicts concentrated in Argentina, Chile, Colombia and Ecuador
where the workers are demanding the reinstatement of their
illegally fired union leader.

These are important connection points for flights throughout Latin
America and the industrial conflicts have already affected and may
continue affecting flights where LAN and TAM Airlines (owned by
the LATAM Airlines Group) fly in the upcoming days.

In Chile, the company is far from any dialogue with their workers
that will avoid a strike and the conflict is likely to affect
passengers.  The company has refused all of the proposals brought
forward by the Chilean union Sindilanex (Union of LAN Express
Workers) and has threatened to cut benefits.  The ground workers,
maintenance and passenger service voted 98% in favor of striking.
The vote has taken place at the headquarters of the Chilean
national federation of unions (CUT-Chile).  In addition to the
necessary and urgent improvements in their working conditions, the
Chilean union is demanding the reinstatement of Jimena Lopez,
leader of the Ecuadorian aviation union.

In Argentina: There was a national strike organized by various
transport unions.  LATAM Airlines was forced to paralyze all
domestic and regional operation from and to Argentina. Thousands
of passengers suffered delays, rerouting and cancellations. The
unions announced that these protests will continue.

In Ecuador, demonstrations and protests have not stopped since the
October 2014 firing of the founder and general secretary of the
first aviation union in the country, Jimena L¬Ępez.

In Colombia the company is firing mechanics and cargo workers with
the most experience. The union is fighting back.  Passengers in
Colombia are being advised about possible flight delays.

In Miami (USA), transport unions and community supporters are
notifying people attending the Sony Miami Tennis Championships,
sponsored by LAN Airlines, of upcoming possible delays and
cancellations.

In the face of these demonstrations in Chile, Colombia and
Ecuador, LAN and TAM Airlines have not sent communications
suspending their operations.

The ITF Civil Aviation Secretary, Gabriel Mocho Rodriguez has sent
letters to all Tourism Ministers of the Governments in the region
(among others) in order to warn them about the possible
disruptions that could seriously affect air passengers visiting
their countries.  He wrote: "We are concerned that tourism in the
country could be affected from the Easter holidays until the Copa
America football tournament. LAN and TAM Airlines are official
sponsors of the Copa America."

LATAM Airlines Group S.A. (LATAM Airlines) is a Chilean-based
airline holding company formed by the business combination of LAN
Airlines S.A. of Chile and TAM S.A. of Brazil in June 2012, which
remain operating as two separate brands. LATAM Airlines is the
larger airline group in South America with local presence in seven
countries (Brazil, Chile, Peru, Ecuador, Argentina, Colombia and
Paraguay). The company provides intra-regional and international
passenger services and it also has a cargo operation that is
carried out through the use of belly space on passenger flights
and dedicated freighter service. In 2014, LATAM Airlines generated
around USD12 billion in net revenues and carried over 67.8 million
passengers and 1.1 million tons.

As reported in the Troubled Company Reporter-Latin America on
April 6, 2015, Fitch Ratings has downgraded LATAM Airlines Group
S.A.'s (LATAM) foreign currency Issuer Default Rating (IDR) to
'BB-' from 'BB'.  In addition, Fitch has downgraded TAM S.A.'s
(TAM) foreign and local currency IDRs to 'BB-' from 'BB' and its
national long-term rating to 'A(bra)' from 'A+(bra)'.


===================================
D O M I N I C A N   R E P U B L I C
===================================


* DOMINICAN REPUBLIC: Expert Spreads Blame for Energy Crisis
------------------------------------------------------------
Dominican Today reports that the lack of timely investment in
generation, a culture of "no pay" and the governments' inability
to materialize the industry's last 20 expansion plans have
characterized Dominican Republic's decades-old electricity crisis.

The country has been nagged by deficits in generation, power lines
and electrification since the first bulb was lit in 1896,
according to Dominican Today.

"What has occurred with electricity defies rationality, the poor
vision at the political level affects investment in distribution
infrastructure, generation and transmission," said electricity
adviser Frederich Berges, the report notes.

Speaking in the release of a book on the country's energy history
by Dominican Electrical Industry Association (ADIE) Vice President
Milton Morrison, Mr. Berges said the lack of fulfillment of the
plans by several players in the sector has been the hey error
during the last 60 years, the report relays.


                            ***********


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.


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