TCRLA_Public/150611.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, June 11, 2015, Vol. 16, No. 114


                            Headlines



A R G E N T I N A

CAPEX S.A.: S&P Affirms 'CCC' Local Currency Rating; Outlook Neg.


B E R M U D A

BERMUDA GAS: Showroom Closes; Cuts 20 Staff


B R A Z I L

HSBC: Discloses Layoffs, Exit From Turkey and Brazil
PETROLEO BRASILEIRO: Real's Volatility Drop as Concern Eases


C A Y M A N  I S L A N D S

BABSON CLO 2004-II: Shareholder to Hear Wind-Up Report on July 3
DEKANIA CDO I: Shareholder to Hear Wind-Up Report on July 3
DELPHINUS CDO 2007-1: Shareholder to Hear Wind-Up Report on July 3
GS PEP: Shareholder to Hear Wind-Up Report on July 3
INVEST AD GP: Shareholder to Hear Wind-Up Report on June 16

INVEST AD II: Shareholder to Hear Wind-Up Report on June 16
MEGURO ENTERPRISES: Shareholder to Hear Wind-Up Report on July 3
SENSUS STRATEGY: Members' Final Meeting Set for June 16
TOWER FINANCE: Members' Final Meeting Set for June 16
VINTAGE '06 SERIES: Shareholders' Final Meeting Set for June 25


M E X I C O

GRUPO PAPELERO: Moody's B1 CFR Unaffected by Bio Acquisition


T R I N I D A D  &  T O B A G O

TRINIDAD & TOBAGO: Fraud Squad Reveals TT$85.4MM in Alleged Scams


X X X X X X X X X

LATIN AMERICA: Sharp Drop in Exports in 1Q of 2015, IDB Says


                            - - - - -


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A R G E N T I N A
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CAPEX S.A.: S&P Affirms 'CCC' Local Currency Rating; Outlook Neg.
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC' LC and
'CCC-' FC ratings on CAPEX S.A.  The outlook remains negative.

The 'CCC' LC rating reflects S&P's opinion that the company has
certain mitigating factors (existing liquidity sources including
liquid assets in foreign currency) that would allow it to meet its
financial obligations, at least for the next 12 months, while
withstanding weak economy.  As a result, the LC rating on CAPEX is
one notch above its FC rating, which is still capped by S&P's
transfer & convertibility assessment (T&C) on Argentina.

The ratings also reflect S&P's view of CAPEX's "vulnerable"
business risk profile that incorporates the high regulatory risk
the company faces in Argentina and lower electricity prices than
those across the region.


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B E R M U D A
=============


BERMUDA GAS: Showroom Closes; Cuts 20 Staff
-------------------------------------------
Raymond Hainey at Royal Gazette reports that more than 20 staff
face the axe at Bermuda Gas after the firm announced it was to
focus on its core business.

The firm said that retail appliance sales, parts and repair
services would end and the firm would now concentrate on its
original business of propane supply and delivery, according to
Royal Gazette.

The news means that the Bermuda Gas 2,850 square foot showroom on
Pembroke's Serpentine Road, which opened only three years ago,
will also close down, the report discloses.

The report notes that Walter Higgins, chief executive of Ascendant
Group, the parent of Bermuda Gas, said: "The final number is
likely to be between 14 and 21 people.

"The company will offer a redundancy package to all affected
individuals and will assist them during this transition," the
report quoted Mr. Higgins as saying.

Mr. Higgins added that government's department of workforce
development would also assist workers who lose their jobs, the
report notes.

Mr. Higgins said that its 2014 earnings forecast, released last
month, signaled that Ascendant, which also owns Belco, continued
to be affected by the recession, healthcare costs and increased
competition "across all lines of business," the report relays.

"Following a comprehensive review of the company's operating
model, Bermuda Gas has decided to focus exclusively on its core
business, the sale and delivery of propane gas in bulk and
cylinder sizes to commercial and residential customers and service
to commercial customers," Mr. Higgins said, the report notes.
"This should improve operational efficiency and increase customer
satisfaction in the process."

Mr. Higgins said the total number of people affected had yet to be
decided, but that some were eligible for early retirement, while
others could be transferred elsewhere in Ascendant and some could
opt to become self-employed contractors, the report relates.

Mr. Higgins added that domestic customer appliance warranties
would continue to be honored.


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


HSBC: Discloses Layoffs, Exit From Turkey and Brazil
----------------------------------------------------
Business Standard reports that HSBC disclosed a new strategic plan
that includes a restructuring of 10 percent of its global
workforce, review of the possibility of moving its headquarters,
its exit from markets in Turkey and Brazil, and an expansion of
its operations in Asia.

EFE News said the new business plan seeks to cut costs by
$5 billion and push the return on equity to over 10 percent by
2017, according to Business Standard.

In a statement to the Hong Kong stock exchange, the bank also
announced plans to step up investments in Asia with special focus
on China and Southeast Asia, the report discloses.

The bank is planning to expand asset management and insurance
operations in China's Pearl River delta region in addition to
pushing the internationalization of the yuan, the report says.

HSBC, the largest European bank with its headquarters in London,
will also be studying the possibility of relocating to Hong Kong
by the end of the year, experts say, the report discloses.

Several economic journals citing a presentation made by HSBC on
the internet reported that the company was planning to slash
22,000 jobs, thereby reducing its global force by 10 percent, the
report relates.

This is the second round of layoffs by the bank in the last four
years, the report notes.

In 2011, the company announced its decision to cut 30,000 jobs,
says the report.


PETROLEO BRASILEIRO: Real's Volatility Drop as Concern Eases
------------------------------------------------------------
Filipe Pacher at Bloomberg News reports that the Brazilian real's
swings between gains and losses eased last week as Petroleo
Brasileiro SA's return to overseas capital markets with a $2.5
billion sale of 100-year notes added to speculation that the worst
is over for the state-controlled oil company.

The drop in volatility from a three-year high since the end of
March has reduced the risk for investors wanting to take advantage
of Brazil's interest rates, according to Ipek Ozkardeskaya, an
analyst at London Capital Group, according to Bloomberg News.  The
central bank raised the target lending rate June 3 by a half-
percentage point to 13.75 percent, the highest among the Group of
20 nations, Bloomberg News notes.

Two-month historical volatility dropped 0.56 percentage point last
week to 17.77 percent in Sao Paulo, the lowest since May 21.  The
gauge of the currency's fluctuations surged to 21.87 percent March
30, the highest since November 2011, Bloomberg News notes.

Overseas holdings of futures contracts wagering against the real
fell to $36.2 billion as of June 3 after rising to a record $38.9
billion on May 28, Bloomberg News discloses.

"Among its higher-yielding emerging-market peers, the actual rate
differential and the anticipation for tighter monetary conditions
in Brazil place the real on a higher rank for carry," Mr.
Ozkardeskaya said in an e-mailed response to questions, Bloomberg
News says.  "The falling volatility on the currency markets also
offers an interesting return-to-risk metric," Bloomberg News
quoted Mr. Ozkardeskaya as saying.

In carry trades, investors get funds where borrowing costs are low
and buy assets in nations that offer higher yields, Bloomberg News
notes.  Borrowing the dollar to buy the real has lost 11 percent
this year amid concern that Latin America's largest economy is
contracting this year the most since 1990, Bloomberg News relates.

                        Petrobras Offering

The issuance by Petrobras last week was the first bond sale for
the oil driller since a kickback scandal erupted last year.  The
company sold notes due in 2115 to yield 8.45 percent, 0.4
percentage point less than the initial price guidance from
bankers, Bloomberg News says.  The offering attracted more than $7
billion of bids, according to a person familiar with the matter
who asked not to be identified because the information isn't
public, Bloomberg News discloses.

Volatility has also fallen since President Dilma Rousseff's
administration achieved a breakthrough last month when the Senate
supported efforts to reduce government budget deficits and avoid a
credit rating downgrade, Bloomberg News relates.

The real declined June 5 as U.S. job gains and the outlook for a
Federal Reserve increase in interest rates overshadowed wagers
that Brazil's policy makers will raise borrowing costs twice more
this year, Bloomberg News notes.

Bloomberg News relates the currency fell 0.3 percent to 3.1424 per
U.S. dollar, paring its advance last week to 1.2 percent.  Swap
rates on the contract maturing in January 2017, a gauge of
expectations for changes in borrowing costs, climbed 0.09
percentage point to 13.67 percent, Bloomberg News notes.  They
were up 0.35 percentage point since May 29, Bloomberg News relays.

Ukraine, Belarus and Moldova are the only other nations in a group
of 48 economies tracked by Bloomberg that are increasing rates
this year, Bloomberg News discloses.  China, India and Russia,
which together with Brazil form the BRIC group, have reduced
borrowing costs to revive growth, Bloomberg News relays.

In the U.S., employers added 280,000 jobs in May following a
revised 221,000 increase in the prior month, the Labor Department
reported June 5, Bloomberg News notes. That exceeded the median
forecast of economists surveyed by Bloomberg, which called for an
increase of 226,000.

                    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 12, 2015, Moody's Investors Service said 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.

On March 6, 2015, the TCLRA reported that the deepening
investigation into the alleged kickback scheme at 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, says Moody's Investors Service.

Moody's Investors Service downgraded all ratings for Petrobras,
including a downgrade of the company's senior unsecured debt to
Ba2 from Baa3, and assigned a Ba2 Corporate Family Rating to the
company, the TCRLA reported on Feb. 27, 2015.  Its failure to
estimate its losses from the alleged corruption scheme and produce
audited third-quarter results prompted Moody's to cut its rating
to junk, the report said.

Rival agency Standard & Poor's delivered a further blow on March
23 when it revised its outlook on the company from stable to
negative, the TCRLA reported on March 26, 2015.

On Feb. 10, 2015, TCRLA said Fitch Ratings has downgraded the
foreign and local currency Issuer Default Ratings (IDRs) and
outstanding debt ratings of Petrobras to 'BBB-' from 'BBB'.
Concurrently, Fitch has placed all of Petrobras' international and
national scale ratings on Rating Watch Negative.


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


BABSON CLO 2004-II: Shareholder to Hear Wind-Up Report on July 3
----------------------------------------------------------------
The shareholder of Babson CLO Ltd. 2004-II will hear on July 3,
2015, at 10:15 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Jennifer Chailler
          Telephone: (345) 943-3100


DEKANIA CDO I: Shareholder to Hear Wind-Up Report on July 3
-----------------------------------------------------------
The shareholder of Dekania CDO I, Ltd. will hear on July 3, 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


DELPHINUS CDO 2007-1: Shareholder to Hear Wind-Up Report on July 3
------------------------------------------------------------------
The shareholder of Delphinus CDO 2007-1, Ltd. will hear on July 3,
2015, at 10:30 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


GS PEP: Shareholder to Hear Wind-Up Report on July 3
----------------------------------------------------
The shareholder of GS Pep Offshore Advisors (NBK), Inc. will hear
on July 3, 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:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Jennifer Chailler
          Telephone: (345) 943-3100


INVEST AD GP: Shareholder to Hear Wind-Up Report on June 16
-----------------------------------------------------------
The shareholder of Invest AD GP Company Limited will hear on
June 16, 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:

          Hazem Ahmed Ali Zaidan
          Flat No. 1506, 15th Floor
          Al Siri Tower
          Hamdan Street
          Abu Dhabi
          United Arab Emirates


INVEST AD II: Shareholder to Hear Wind-Up Report on June 16
-----------------------------------------------------------
The shareholder of Invest AD Carry GP II Limited will hear on
June 16, 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:

          Hazem Ahmed Ali Zaidan
          Flat No. 1506, 15th Floor
          Al Siri Tower
          Hamdan Street
          Abu Dhabi
          United Arab Emirates


MEGURO ENTERPRISES: Shareholder to Hear Wind-Up Report on July 3
----------------------------------------------------------------
The shareholder of Meguro Enterprises Ltd. will hear on July 3,
2015, at 10:45 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


SENSUS STRATEGY: Members' Final Meeting Set for June 16
-------------------------------------------------------
The members of Sensus Strategy Depot II SPC Limited will hold
their final meeting on June 16, 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:

          Nicola Smith
          Telephone: +350 200 52545
          Facsimile: +350 200 52546
          Neptune House, Suite 207
          Marina Bay
          Gibraltar


TOWER FINANCE: Members' Final Meeting Set for June 16
-----------------------------------------------------
The members of Tower Finance Company will hold their final meeting
on June 16, 2015, at 10:10 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Stephen Nelson
          Telephone: 949-4544
          Facsimile: 949-7073
          Collas Crill & CARD
          Zephyr House, 2nd Floor, 122 Mary Street
          P.O. Box 709 Grand Cayman, KY1-1107
          Cayman Islands


VINTAGE '06 SERIES: Shareholders' Final Meeting Set for June 25
---------------------------------------------------------------
The shareholders of Vintage '06 Series - Japan Value Added II Ltd.
will hold their final meeting on June 25, 2015, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Jane Fleming
          c/o Jean Ebanks
          Telephone: (345) 945-2187
          Facsimile: (345) 945-2197
          P.O. Box 30464 Grand Cayman KY1-1202
          Cayman Islands


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M E X I C O
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GRUPO PAPELERO: Moody's B1 CFR Unaffected by Bio Acquisition
------------------------------------------------------------
Moody's said that the announcement made by Bio Pappel, S.A.B. de
C.V. (Pappel - unrated), that it successfully closed the
acquisition of Grupo Papelero Scribe, S.A. de C.V. (Scribe)'s
ultimate parent, Corporacion Scribe, is credit positive for
Scribe. But the completion of the transaction has no immediate
impacts on Scribe's B1 corporate family rating and B1 senior
unsecured rating on its global notes or stable outlook.

Grupo Papelero Scribe, S.A. de C.V. (Scribe) is Mexico's largest
producer of printing and writing paper and notebooks based on
sales volume, with MXN 6.4 billion of revenues in the last twelve
months ended in March 31, 2015 (LTM). Scribe markets its products
under a brand portfolio that offers different price point
categories and, among others, includes "Scribe", a brand that has
been a household name for notebooks in Mexico for more than 50
years.

The company operates four mills with an installed capacity of 450
thousand tons for paper (including tissue) and 98 thousand tons
for wood pulp. The company was formed in 2006, being currently
owned and controlled by Impulso de Desarrollos Estrat‚gicos, S.A.
de C.V. (IDESA), a privately-held Mexican company, and Eton Park
Capital Management, LP, a US-based financial investor. Since
August 2014, Grupo Bio Pappel (GBP -unrated) and its main
subsidiary, Bio Pappel, S.A.B. de C.V. (Pappel - unrated), reached
an agreement to acquire 100% of Scribe. The transaction is still
contingent on regulatory approval. Bio Pappel, S.A.B. de C.V.
(Pappel), a public company listed in the Mexican Stock Exchange,
is the largest paper manufacturer in Mexico. For the full year
ended in 2014, the company reported revenues and EBITDA of around
MXN 12 billion and MXN 2.0 billion, respectively.



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


TRINIDAD & TOBAGO: Fraud Squad Reveals TT$85.4MM in Alleged Scams
-----------------------------------------------------------------
Leag Sorias at Trinidad Express reports that the Fraud Squad
revealed alarming statistics which showed that for 2014 alone it
received 1,097 reports of alleged fraud involving TT$85.4 million.

Acting Senior Superintendent Totaram Dookie said 259 of these
reports were related to larceny and had a monetary value of
TT$13.8 million, according to Trinidad Express.

Others reports, Mr. Dookie said, were related to unauthorized
credit card use (111), unauthorized ABM card use (113), fraudulent
conversions (169) and obtaining property by fraudulent pretenses
(127), the report notes.

Mr. Dookie was speaking during day two of a fraud conference
hosted by the Trinidad and Tobago Coalition of Services Industries
(TTCSI) and the Global Forensic Institute at the Hilton Trinidad,
the report discloses.

Mr. Dookie noted that while there were 252 cases of fraud for the
first quarter of 2014, this figure dropped to 209 for the same
period this year, the report relays.

Wire transfer fraud, identity theft and internet fraud continue to
be of major concern, Mr. Dookie stated, the report notes.

"An example that the perpetrators have no respect for your status
or who you are is that recently one of the High Commissioners to
this country, I wouldn't want to identify which one, sent money
back to his homeland to his family and not once, but on three
occasions, the money was stolen.", the report quoted Mr. Dookie as
saying.

Mr. Dookie said four days ago a local bank with branches in Port
of Spain and San Juan was able to intercept a fraudulent wire
transfer of TT$50,000 from the account of a businessman, the
report discloses.

"Branch A got an e-mail to move TT$50,000 from his account to
Branch B in San Juan.  It was moved into an account owned by Mr C.
Then Mr. C got a call on the phone and on the other end was
someone with a foreign accent telling him to go to Branch B
because they have deposited money into his account.  They said you
have to take X per cent and the remaining Y per cent you have to
wire transfer to Ghana and several different locations.  Mr. C
hurried to the bank. But due to the brilliance of the teller, and
he should be commended, suspicion was raised, he alerted security,
security intervened and it was prevented." Mr. Dookie said, the
report relays.

Mr. Dookie said despite being short staffed the Fraud Squad has
had major successes, the report notes.

Mr. Dookie said there are currently 27 cases of money laundering
before the court, all of which originated from the predicate
offences initiated by the Fraud Squad, the report relays.

Mr. Dookie also pointed to a "tremendous" increase in the amount
of counterfeit currency in circulation in the local banking
system, the report notes.

"For the first quarter of 2014 there were TT$2,070 and for the
same period in 2015 there were TT$43,630," Mr. Dookie said, the
report adds.


=================
X X X X X X X X X
=================


LATIN AMERICA: Sharp Drop in Exports in 1Q of 2015, IDB Says
------------------------------------------------------------
Latin American exports suffered a year-over-year decline of 9.1
percent in the first quarter of 2015, reflecting deterioration in
export performance that has been observed since late 2014,
according to a study by the Inter-American Development Bank (IDB).

According to a quarterly update to the Latin American Trade Trends
regional exports fell 2.7 percent in 2014, and the decline
intensified in recent months, as exports fell sharply in the three
months ending March 31, yielding a year-over-year quarterly
decline of 9.1 percent.

The report reveals that the export contraction was felt in all but
three countries of the region in the first months of 2015.  The
Andean countries showed the most significant declines, averaging
19.2 percent.  MERCOSUR countries reached a year-over-year drop of
13.7 percent.  Central America and the Dominican Republic
witnessed a reversal of the trend, as growth of the previous
reading turned into a contraction of 4.6 percent.  Likewise,
Mexico's exports, which had grown substantially in 2014, began to
contract in the first quarter of 2015, yielding a year-over year
reading of -0.4 percent.

The report includes detailed data for 17 Latin American countries.

Several factors, such as the appreciation of the dollar and the
drop in commodity prices, primarily petroleum, led to the export
contraction in Latin America in the first quarter of 2015.

The dynamics of the region's foreign sales is in line with the
behavior of global trade which in January-March accumulated a
year-on-year decline of 11.6 percent.  In particular, imports of
Latin American goods by the region's three main trading partners
fell by 28 percent for China, 6 percent for the United States, and
3 percent for the European Union.


                            ***********


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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