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/raid1/www/Hosts/bankrupt/TCRLA_Public/150625.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 25, 2015, Vol. 16, No. 124 Headlines A N T I G U A & B A R B U D A LIAT: Expected to be Denied Tortola-San Juan Route B R A Z I L BRAZIL: May Current Account Deficit Smaller Than All Forecasts C A Y M A N I S L A N D S BLACKSTONE SEN: Shareholders' Final Meeting Set for July 2 CHINA MEGA: Members Receive Wind-Up Report CONTINENTAL HOLDING: Members Receive Wind-Up Report EQUIPMENT ASSURANCE: Shareholders' Final Meeting Set for July 7 GPB-DI HOLDINGS: Shareholder to Hear Wind-Up Report on July 13 LIONGATE RECOVERY: Shareholders' Final Meeting Set for July 17 MILLBROOK INTERNATIONAL: Members' Final Meeting Set for July 23 MSGP LIMITED: Shareholders' Final Meeting Set for July 10 RAM RATIONAL: Members' Final Meeting Set for July 23 SOJITZ INTERNATIONAL: Shareholders' Final Meeting Set for June 30 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Power Firms Reiterate 'Worrisome' Debt DOMINICAN REPUBLIC: Haiti Government to 'Ban Several Products' M E X I C O MEXICO: Foreign Reserves Fall by $57 Million T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Signs Energy MOU, TT$4.5 Million Grant Approved - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Expected to be Denied Tortola-San Juan Route --------------------------------------------------- The Daily Observer reports that aviation consultant Lesroy Browne said he expects US authorities to reject the request of LIAT, operating as Leeward Islands Air Transport, for a license to fly between San Juan, Puerto Rico and Tortola, British Virgin Islands, after a US airline objected. Cape Air said LIAT included the request in an otherwise routine annual license renewal with the US Department of Transportation, according to the Daily Observer. Cape Air objected to the airline's bid saying three US airlines already flew the route, the report notes. "I would imagine that the US government will probably not allow LIAT to operate the route," Mr. Browne who worked for over a decade with LIAT, including as a commercial director, director of scheduling, director of ground operations and finally as advisor to the CEO, said, the report relates. "I don't think it will affect LIAT services too much. I think LIAT recently included in their summer schedule a flight very late at night continuing from Tortola to San Juan and very early in the morning from San Juan to Tortola. They are going to be obliged to leave those routes out of the summer schedule if they do not receive approval," the report quoted Mr. Browne as saying. According to the Barbados Nation, on May 18, LIAT's legal representative in Washington DC, Lee A Bauer, of law firm Roller & Bauer, submitted a 13-page application for the renewal of LIAT's exemption, authorizing it to "engage in scheduled foreign air transportation of persons, property and mail" to and from destinations including Barbados and some US territories, the report notes. However, on June 1, Andrew Bonney, senior vice president of planning at Cape Air, a US airline based in Hyannis, Massachusetts, formally objected to what, he said, was LIAT's request for the exemption to include service between San Juan, Puerto Rico and Tortola, British Virgin Islands, the report relays. "LIAT is obliged to request relief from the US government to fly between points in the US, which are mainly the US Virgin Islands and San Juan to and from points in the Eastern Caribbean. For years, we have been obliged to do this, it's now on an annual basis," Mr. Browne said, the report notes. The Barbados Nation reported that in his objection letter, Bonney said Cape Air, which "has been serving the San Juan to Tortola non-stop market since 1999", had a problem with LIAT flying that route when three American carriers were plying it, the report discloses. In addition to this airline, he mentioned San Juan-based Seaborne Airlines, with its "multiple daily frequencies" and Air Sunshine, which "operates scheduled service in the San Juan to Tortola market as well," the report notes. "For a relatively small market, the San Juan to Tortola route has robust competition," he said. Bonney also complained that LIAT was a "government-owned and subsidized" carrier and that any competition provided "cannot be expected to be fair," the report notes. "Permitting . . . LIAT is decidedly not in public interest, because it would materially disrupt the healthy competitive market between San Juan and Tortola, which already has unusually vibrant service for a small market. . . ," Mr. Browne said, the report discloses. "If LIAT removes that portion of their request for exemption authority and suspends sales activity in such markets, Cape Air would have no further objection," he said, the report relays. The report notes that Mr. Browne said, "I don't think it's the first time LIAT has received an objection from Cape Air, and I think Cape Air is basically making the case that there are three US carriers operating between San Juan and Tortola and hence there is no need for a foreign carrier, which as they claim is subsidized by governments. This is certainly not the case." "All it does it is basically saying we don't want you to fly passengers between Tortola and San Juan, it has nothing else to do with the rest of what LIAT is doing," Mr. Browne added, notes the report. 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 May 8, 2015, the Daily Observer reports that LIAT, operating as Leeward Islands Air Transport, is attempting to lose excess baggage as part of measures to make the carrier "a smaller airline in 2015." In a document, signed by Director of Human Resources Ilean Ramsey, eligible employees were asked to opt to apply for voluntary separation or early retirement packages to avoid being made redundant, according to The Daily Observer. TCRLA reported on Dec. 2, 2014, Caribbean360.com said that chairman of the shareholder governments of the financially troubled regional airline LIAT, Dr. Ralph Gonsalves said while he is unaware of the details regarding any possible retrenchment of employees, the airline needs to deal with its high cost of operations. The TCR-LA on March 10, 2014, citing Caribbean360.com, reported that LIAT said it will take "decisive action" to deal with unprofitable routes as the Antigua-based airline seeks to make its operations financially viable. On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday, reported that there's much upheaval at the highest levels of LIAT -- the Board and the Executive. Following the sudden resignation of Chief Executive Officer Captain Ian Brunton, David Evans replaced Mr. Brunton as chief executive officer =========== B R A Z I L =========== BRAZIL: May Current Account Deficit Smaller Than All Forecasts -------------------------------------------------------------- Mario Sergio Lima at Bloomberg News reports that Brazil's current account deficit in May was narrower than economists estimated, as the trade surplus grew from the month before. The deficit in the current account, the broadest measure of trade in goods and services, narrowed in May to $3.4 billion from $6.9 billion a month earlier, the central bank said in a report distributed in Brasilia, according to Bloomberg News. The gap was smaller than estimated by all 19 economists surveyed by Bloomberg, whose median forecast was for a deficit of $4.6 billion. Foreign investment in Brazil during the month rose to $6.6 billion from $5.8 billion, Bloomberg News relates. Bloomberg News says that the narrower current account gap comes as the real has fallen the most among emerging market currencies since January, helping to boost exports. The central bank expects the annual deficit to narrow by the end of the year on the back of higher commodity prices and slower economic growth that will lower imports, notes Bloomberg News. Swap rates on the contract due in January 2016, the most traded in Sao Paulo June 22, fell four basis points, or 0.04 percentage point, to 14.19 percent at 10:43 local time, Bloomberg News relays. The real strengthened 0.8 percent to 3.0724 per U.S. dollar and has dropped 13.5 this year, Bloomberg News notes. The current account gap through May totaled $35.8 billion, down from a $44.9 billion deficit in the same period last year, Bloomberg News discloses. Foreign direct investment reached $25.5 billion through May, compared with $39.3 billion during the same period of 2014, Bloomberg News relays. The central bank lowered its estimate for the current account to a gap of $81 billion this year from $84 billion, and left its forecast for foreign investment unchanged at $80 billion, Bloomberg News notes. Inflation in the month through mid-June accelerated more than economists estimated, as the central bank says advances in fighting higher prices are insufficient even after six rate increases in a row, Bloomberg News says. Analysts forecast Latin America's largest economy in 2015 will record the worst recession in 25 years, contracting by 1.45 percent, Bloomberg News notes. Unemployment is expected to reach 6.6 percent in May, as the economy shed more than 240 thousand formal jobs through that month, Bloomberg News adds. ========================== C A Y M A N I S L A N D S ========================== BLACKSTONE SEN: Shareholders' Final Meeting Set for July 2 ---------------------------------------------------------- The shareholders of Blackstone Sen Offshore Fund II Ltd. will hold their final meeting on July 2, 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: Patrick Agemian Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 CHINA MEGA: Members Receive Wind-Up Report ------------------------------------------ The members of China Mega Trend Fund received on June 30, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicholas Ng Suite G-06B, Ground Floor Menara Zurich 12 Jalan Dewan Bahasa 50460 Kuala Lumpur Malaysia CONTINENTAL HOLDING: Members Receive Wind-Up Report --------------------------------------------------- The members of Continental Holding Company received on June 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Charalambos Michaelides Telephone: (357) 22 555800 Facsimile: (357) 22 555801 5 Themistokli Dervi Street, Elenion Building P.C. 1066 Nicosia Cyprus EQUIPMENT ASSURANCE: Shareholders' Final Meeting Set for July 7 --------------------------------------------------------------- The shareholders of Equipment Assurance Limited will hold their final meeting on July 7, 2015, at 2:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. Stuart Jessop is the company's liquidator. GPB-DI HOLDINGS: Shareholder to Hear Wind-Up Report on July 13 -------------------------------------------------------------- The shareholder of GPB-DI Holdings (Cayman) Limited will hear on July 13, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Constantinos Meivatzis Telephone: 0035722749000 20 Spyrou Kyprianou, Chapo Central 3rd Floor, CY 1075, Nicosia Cyprus LIONGATE RECOVERY: Shareholders' Final Meeting Set for July 17 -------------------------------------------------------------- The shareholders of Liongate Recovery Fund Ltd will hold their final meeting on July 17, 2015, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited c/o Jo-Anne Maher 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 814 9255 Facsimile: (345) 949 4647 MILLBROOK INTERNATIONAL: Members' Final Meeting Set for July 23 --------------------------------------------------------------- The members of Millbrook International Fund, Ltd. will hold their final meeting on July 23, 2015, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands MSGP LIMITED: Shareholders' Final Meeting Set for July 10 --------------------------------------------------------- The shareholders of MSGP Limited will hold their final meeting on July 10, 2015, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Ltd. c/o Lisa Thoppil Telephone: (345) 949 0880 Facsimile: (345) 949 0881 One Capital Place, 4th Floor P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands RAM RATIONAL: Members' Final Meeting Set for July 23 ---------------------------------------------------- The members of Ram Rational Asset Management (Cayman) Ltd will hold their final meeting on July 23, 2015, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands SOJITZ INTERNATIONAL: Shareholders' Final Meeting Set for June 30 ----------------------------------------------------------------- The shareholders of Sojitz International Finance Cayman Limited will hold their final meeting on June 30, 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: Stuart Sybersma c/o Mike Green Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Cayman Islands Telephone: +1 (345) 814 2223 Facsimile: +1 (345) 949 8258 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Power Firms Reiterate 'Worrisome' Debt ---------------------------------------------------------- Dominican Today reports that Dominican Republic's power companies grouped in the ADIE reiterated that the country's debt with the electricity sector exceeds US$800.0 million and that the authorities have yet to provide an installment. ADIE Executive Vice President Milton Morrison said the debt with the power companies is higher this year than previous years, according to Dominican Today. "The government has yet to respond to this very worrisome situation, since this debt has a significant impact on the power companies, one way or another it's something which merits attention," the report quoted Mr. Morrison as saying. "If the country pays those bills on time, it could save significant amounts of money that could be used in other social areas," Mr. Morrison said, the report notes. Mr. Morrison said AIDE has proposed several measures to the Government to settle the debt on several occasions and wants to disclose to apprise the country since it can impact the service at any time, the report relates. "If there comes a time when resources are not sufficient to buy fuel to generate power, it will make the power supply difficult," Mr. Morrison added. DOMINICAN REPUBLIC: Haiti Government to 'Ban Several Products' -------------------------------------------------------------- Dominican Today reports that Haiti government officials reportedly announced a ban on the entry of several products from Dominican Republic to their country starting June 26. A source with knowledge of the meeting said Haiti Prime minister Evans Paul announced the ban after a meeting at Haiti Customs offices in Ouanaminthe, Haiti, with officials of his country. Among the products which could be banned from entering Haitian territory figure green bananas (plantains), eggs, chicken, cabbage, lettuce and other vegetables, according to the source. =========== M E X I C O =========== MEXICO: Foreign Reserves Fall by $57 Million -------------------------------------------- EFE News reports that Mexico's foreign reserves fell by $57 million to $193.18 billion, the Bank of Mexico said. Gold and foreign currency reserves fell in the week ending June 19 mainly due to the daily auctions of $52 million with no minimum price aimed at slowing the depreciation of the Mexican peso against the U.S. currency, the central bank said, according to EFE News. Reserves have fallen by $57 billion since Jan. 1, the Bank of Mexico said in a statement obtained by the news agency. The M1 money supply, which includes currency, coins and demand deposits, fell by MXN8.31 billion (about $542 million) to MXN1.06 trillion (some $68.93 billion), the central bank said, the report notes. The money supply has contracted by MXN5.47 billion ($357 million) since Jan. 1, adds the report. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Signs Energy MOU, TT$4.5 Million Grant Approved ------------------------------------------------------------------ Kim Boodram at Trinidad Express reports that a TT$4.5 million grant has been approved for extraction and heavy oil research and development through the University of Trinidad and Tobago (UTT), as the Ministry of Energy looks to maximise these aspects of local resources and conservation. Energy Minister Kevin Ramnarine and Tertiary Education Minister Fazal Karim signed a Memorandum of Understanding (MOU) to seal the partnership at Karim's Tower C, Port of Spain Waterfront office, according to Trinidad Express. 34 Active Contracts The report notes that Minister Ramnarine said the funding comes from reserves accumulated by production sharing contracts signed with the Government by energy companies who are obligated to set aside a portion for local research and development. There are at least 34 active contracts of that nature at this time, Minister Ramnarine said, notes Trinidad Express. It was time to begin accessing some of that funding for investment in the future of local energy, Minister Ramnarine said, adding that Trinidad still has a lot of ground reserves that haven't been tapped by conventional extracting methods, the report relates. At the same time, this country's status as the world's second largest emitter of carbon dioxide, which climate change watchers argue is the main contributor to the greenhouse effect, is not desirable, the report says. The research and development grant, which will fund two projects, will look not only at the use of heavy oil but also at innovative extraction methods that include the capture, use and confinement of carbon dioxide, notes the report. Steady Daily Output Steam and CO2 injections to eject ground oil are being used in countries like Canada and neighboring Venezuela, Minister Ramnarine said, and the new methods show promise for controlling to some effect the impact of energy producers, the report says. Locally, the production of ammonia is the most prolific contributor of CO2, Ramnarine said, while the industry as a whole puts out up to 53 million tons of the gas annually, the report discloses. Minister Ramnarine added that this country has for the past three- and-a-half years maintained a steady daily output of 81,000 barrels of oil but left alone, it will decline. He said the country is still seeing investors in energy, the report says. *********** 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 * * *