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/raid1/www/Hosts/bankrupt/TCRLA_Public/150710.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, July 10, 2015, Vol. 16, No. 135 Headlines B R A Z I L GALVAO PARTICIPACOES: Fitch Withdraws 'D' Issuer Default Ratings C A Y M A N I S L A N D S FIVE STAR: Shareholders' Final Meeting Set for July 23 HIGHCLERE HOLDINGS: Shareholders' Final Meeting Set for July 14 HIGHCLERE LIMITED: Shareholders' Final Meeting Set for July 14 HSBC NOMINEES: Shareholders' Final Meeting Set for July 17 HYPERION CAPITAL: Shareholders' Final Meeting Set for Aug. 6 JPT SCARLETT: Shareholder to Hear Wind-Up Report on July 24 LIBERTAS PREFERRED: Shareholder to Hear Wind-Up Report on July 24 LSV LOW: Shareholders' Final Meeting Set for July 17 TIPTOE COMMODITY: Shareholder to Hear Wind-Up Report on July 15 YANAIS HOLDINGS: Members' Final Meeting Set for July 20 C H I L E SOCIEDAD DE INVERSIONES: S&P Lowers Rating to 'B'; Outlook Neg. D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Big Business Questions High Energy Cost DOMINICAN REPUBLIC: Food Imports Jump 17% in March to US$220.5MM J A M A I C A JAMAICA: Parliament Approves Increase in Income Tax Threshold M E X I C O OHL MEXICO: Recordings Appear to Show More Wrongdoing P A N A M A PANAMA: Real GDP slowed to 6.2 percent in 2014, IMF Says T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: To Upgrade Passenger Service System - - - - - =========== B R A Z I L =========== GALVAO PARTICIPACOES: Fitch Withdraws 'D' Issuer Default Ratings ---------------------------------------------------------------- Fitch Ratings has withdrawn these ratings for Galvao Participacoes S.A. (GalPar) and its fully-owned engineering and construction subsidiary, Galvao Engenharia S.A. (GESA): GalPar -- Foreign currency Issuer Default Ratings (IDRs) 'D'; -- Local currency Issuer Default Ratings (IDRs) 'D'; -- National Long-Term Rating 'D(bra)'; -- BRL300 million 3rd debentures issuance due 2020 'D(bra)'. GESA -- National Long-Term Rating 'D(bra)'. Fitch has withdrawn the companies' ratings because they have entered into bankruptcy proceedings. Accordingly, Fitch will no longer provide ratings or analytical coverage for GalPar and GESA. ========================== C A Y M A N I S L A N D S ========================== FIVE STAR: Shareholders' Final Meeting Set for July 23 ------------------------------------------------------ The shareholders of Five Star Investment Limited will hold their final meeting on July 23, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lyndsey McGillivray c/o Blake Applegate Citron 2004 Limited Telephone: + 44 1534 282276 Facsimile: + 44 1534 282400 23-25 Broad Street St Helier, Jersey JE4 8ND Telephone: 01534 282345 HIGHCLERE HOLDINGS: Shareholders' Final Meeting Set for July 14 --------------------------------------------------------------- The shareholders of Highclere Holdings Limited will hold their final meeting on July 14, 2015, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands HIGHCLERE LIMITED: Shareholders' Final Meeting Set for July 14 -------------------------------------------------------------- The shareholders of Highclere Limited will hold their final meeting on July 14, 2015, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands HSBC NOMINEES: Shareholders' Final Meeting Set for July 17 ---------------------------------------------------------- The shareholders of HSBC Nominees (Cayman) Limited will hold their final meeting on July 17, 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: Jonathan Cooper c/o Barnaby Gowrie Telephone: +1 (345) 914 6365 HSBC Cayman Services Limited 68 West Bay Road P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands HYPERION CAPITAL: Shareholders' Final Meeting Set for Aug. 6 ------------------------------------------------------------ The shareholders of Hyperion Capital Ltd. will hold their final meeting on Aug. 6, 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 JPT SCARLETT: Shareholder to Hear Wind-Up Report on July 24 ----------------------------------------------------------- The sole shareholder of JPT Scarlett Holdings Inc. will hear in July 24, 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 LIBERTAS PREFERRED: Shareholder to Hear Wind-Up Report on July 24 ----------------------------------------------------------------- The shareholder of Libertas Preferred Funding I, Ltd. will hear on July 24, 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 LSV LOW: Shareholders' Final Meeting Set for July 17 ---------------------------------------------------- The shareholders of LSV Low Volatility Fund, Ltd. will hold their final meeting on July 17, 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: LSV Advisors, LLC 540 Madison Avenue 33rd Floor New York, New York 10022 United States of America Telephone: +1 (212) 378 3700 e-mail: notices@lsvfinancial.com TIPTOE COMMODITY: Shareholder to Hear Wind-Up Report on July 15 --------------------------------------------------------------- The sole shareholder of Tiptoe Commodity Offshore Fund, Ltd. will hear in July 15, 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: Alexander Gansch c/o Ridhiima Kapoor Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 YANAIS HOLDINGS: Members' Final Meeting Set for July 20 ------------------------------------------------------- The members of Yanais Holdings will hold their final meeting on July 20, 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 ========= C H I L E ========= SOCIEDAD DE INVERSIONES: S&P Lowers Rating to 'B'; Outlook Neg. --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Sociedad de Inversiones Pampa Calichera S.A. (Pampa) to 'B' from 'B+'. The outlook is negative. The downgrade reflects the group's narrower covenant cushion, which weakened to 15% from 40% in mid-2014. This stems from the sharp decline in Sociedad Quimica y Minera de Chile S.A.'s (SQM; BBB/ Negative/--) stock price during the past few months, particularly in light of the recent investigations of SQM over allegations of financing political campaigns and the dispute with Chilean state development agency, Corporacion de Fomento de la Produccion, over the lease of the Atacama salt mine. In addition, S&P expects Pampa's refinancing risk to rise because it faces a $50 million maturity in 2016 and $220 million in 2017. Although S&P expects SQM's dividend payout ratio to remain at 50%, its net income would be probably lower than it originally expected. This in turn could hinder the group's annual dividend inflow, which S&P now expects at about $50 million. The group has to meet annual operating and financial costs of $45 million. Therefore, S&P expects some financial constraints by the end of 2016 and during 2017 if Pampa can't refinance its bank loans or partly divest SQM shares. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Big Business Questions High Energy Cost ----------------------------------------------------------- Dominican Today reports that the National Business Council (Conep) reminded the CEO of the State-owned electric utility (CDEEE) that the current cost to generate power has fallen to an average of 12 cents per kilowatt from an average of 16 cents in 2014, a reduction resulting from lower global oil prices. It said it's inconceivable that the government debt is higher than it was in 2014, when the price of oil was higher, the price per kWh was higher and the profit of the distributors was lower with their sales price, according to Dominican Today. Concern The country's leading business organization said it's concerned with the indifference with how, it says the government has dealt with a debt of more than US$850 million and stressed that the situation instills uncertainty in potential investors in Dominican Republic's electricity sector, the report notes. The Conep also questions the solution to the lack of payment voiced by utility CEO Ruben Jimenez Bichara, who said the coal- fired plants would lead to lower costs, the report relates. Power Companies The Conep said it agrees with the call by the power companies grouped in the ADIE to find a solution to the debt because if it goes unpaid, it jeopardizes its capacity to supply the energy contracted, the report relays. "We propose issuing short-term local bonds and the issuance of discountable promissory notes, and other funding sources which the State has proven to have access to competitive rates," the ADIE said on June 23, the report discloses. DOMINICAN REPUBLIC: Food Imports Jump 17% in March to US$220.5MM ---------------------------------------------------------------- Dominican Today reports that the Dominican Republic imported US$220.5 million FOB in foods in March, a 17% jump compared with February, with 230,400 tons mostly from 82 countries. Industry and Commerce deputy minister Anina M. Del Castillo said 50.04% (RD$110.4 million) of all imports were corn, wheat, soybean oil, biscuits and other solid soybean derivatives, such as animal feed, and beef and pork from the US, according to Dominican Today. Ms. Del Castillo said at US$8.8 million (3.99%), Colombia is the second market, with crude palm oil, non-alcoholic beverages, sweets, biscuits and canned fish, the report relates. Mexico is third with US$8.4 million or 3.84%, on imports of milk formula, biscuits, sweets and cereals; Netherlands ranks fourth with US$6.73 million (3.05%) on milk formula, cheese, powdered milk, processed foods and processed potatoes; Norway stood at US$6.16 million (2.79%) with salted codfish and salmon, Del Castillo said in the Internal Commerce monthly report, Dominican Today adds. ============= J A M A I C A ============= JAMAICA: Parliament Approves Increase in Income Tax Threshold ------------------------------------------------------------- RJR News reports that the House of Representatives approved an amendment to the Income Tax Act, effectively raising the threshold amount at which a person begins to income tax. The amendment has moved the income tax threshold from J$507,000 per annum to J$557,000, according to RJR News. It was passed by the Senate as well. Finance Minister Dr. Peter Phillips led the motion in the House, after provisionally announcing the change last year, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on June 5, 2015, Standard & Poor's Ratings Services raised its long- term foreign and local currency sovereign credit ratings on Jamaica to 'B' from 'B-'. In addition, S&P affirmed the 'B' short-term ratings on Jamaica. The outlook on the long-term ratings is stable. S&P also raised the transfer and convertibility assessment to 'B+' from 'B'. =========== M E X I C O =========== OHL MEXICO: Recordings Appear to Show More Wrongdoing ----------------------------------------------------- EFE News reports that newly released clandestine recordings appear to show that OHL Mexico paid for a vacation for Communications and Transportation Secretary Gerardo Ruiz Esparza and received privileged information from that department about highway projects. One of the audio recordings, which allegedly took place in February and March and were uploaded to YouTube, purportedly shows former OHL Mexico executive Pablo Wallentin telling a company secretary that he's going to "kick (her) butt" for having charged the minister for his stay at one of the group's hotel complexes, according to EFE News. "They're our guests," the ex-executive with the highway builder and operator, a unit of Spanish construction and engineering giant OHL, said, instructing the secretary to find out "how much the (hotel) stay was and who paid for it," the report notes. "If it was paid with (Ruiz's) credit cards, reimburse him immediately and charge it to mine," Mr. Wallentin said, the report relates. The report discloses that a separate audio recording, dated just before the other one, allegedly shows the executive asking the same secretary, identified as Adriana, to handle the matter. "I categorically deny that the company OHL (Mexico) paid for some vacation, or any other type (of expense)," Mr. Ruiz said, the report relays. In early May, a first batch of audio recordings involving purported senior OHL Mexico executives appeared to show wrongdoing in connection with a 30 percent hike in the toll motorists are charged to use the Viaducto Bicentenario, a highway built and operated by OHL Mexico in the central state of Mexico, the report notes. The report says that persons on one of the taped conversations, which purportedly took place in January, said the toll hike is based on construction costs for future highway phases and discuss ways to trick authorities into approving the increases. In one of the other initial leaked recordings, Mr. Wallentin appears to offer to pay for a family vacation of the communications secretary of Mexico state, Apolinar Mena, apparently as a favor for authorizing the toll hike, the report notes. Mr. Wallentin and Mr. Mena both resigned after being implicated in the scandal, which continued to unfold with recordings revealing alleged bribes paid by the company to Mexican judges, the report discloses. Those revelations led Ruiz, the federal communications and transportation chief, to ask the Public Administration Secretariat to conduct audits of all of its contracts with OHL Mexico, the report says. In another clandestine recording, Mr. Wallentin purportedly tells the chairman of OHL Mexico, Jose Andres de Oteyza, that an official with the Communications and Transportation Secretariat, Carlos Bussey, gave him a CD with information about two highway projects, the report discloses. One of them was located in the southeastern resort city of Ciudad del Carmen and the other in Indios Verdes, in Mexico City's northern outskirts, the report relays. "He gave me the CD with all the information . . . and how they will be auctioned off," Mr. Wallentin appears to say, the report notes. OHL Mexico has repeatedly denied that it made illegal payments or engaged in wrongdoing, saying the recordings have been manipulated and that it is a victim of a "groundless" campaign aimed at discrediting the company, the report adds. =========== P A N A M A =========== PANAMA: Real GDP slowed to 6.2 percent in 2014, IMF Says -------------------------------------------------------- On June 10, 2015, the Executive Board of the International Monetary Fund concluded the Article IV consultation1 with Panama. Panama's economic performance is expected to remain strong. Real GDP slowed to 6.2 percent in 2014, reflecting a slower pace of public investment, continued weakness in Colon Free Zone activity, and delays in the Canal expansion. Growth is expected to remain stable in 2015. Lower oil prices and the U.S. recovery will be positive forces but these will be offset by U.S. dollar appreciation and some lags in new public investment. Over the medium term, the expanded Canal and the new copper mine should help maintain growth at 6-7 percent. Inflation moderated to 2.6 percent in 2014 as a result of lower oil prices and price controls on certain food items. Inflation is expected at around 1 percent in 2015, taking into consideration the January increase in electricity tariffs, and assuming a slow upward trajectory for oil prices and the elimination of price controls in July. The 2014 fiscal deficit reached 4.3 percent of 1996-base GDP. Revenues increased by 1.1 percent while current primary expenditures grew by 13 percent. Going forward, the fiscal framework envisaged in the Social and Fiscal Responsibility Law (SFRL) aims at removing the effects on government spending of cyclical fluctuations in Canal contributions. Accordingly, the overall fiscal deficit can exceed the SFRL deficit ceilings up to the amount that budget contributions from the Canal are below 3.5 percent of GDP (if above, the difference would instead be credited to the Sovereign Wealth Fund). In line with the framework, the 2015 fiscal deficit is expected at 3.8 percent of 1996-base GDP in order to accommodate past commitments on capital expenditures as well as a projected weak revenue performance. Total gross debt of the public sector (including the Canal Authority debt) increased to about 46 percent of GDP in 2014, reversing the declining trend seen since 2005. Nonetheless, public debt is projected as sustainable. Under the planned policies, total gross public debt is projected to decline by about 5 percentage points of GDP by 2019. However, additional liabilities encompass unfunded pension liabilities, other outstanding public liabilities, and the contingent liabilities linked to public companies. The current account deficit remained elevated in 2014, at 12 percent of GDP, owing in part to strong investment-related imports, but should moderate over time as investment projects wind down and exports increase. This deficit is expected to continue to be financed by buoyant foreign direct investment inflows (including in the mining, logistics and energy sectors). The authorities and the Financial Action Task Force (FATF) agreed on a plan to address the deficiencies related to Panama's Anti- Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework, to bring the framework in line with the international standard. The authorities have made substantial progress, including the passing of new AML/CFT legislation. Near-term risks mostly relate to a weaker global economy or to possible delays in enhancing financial transparency. Slower-than- expected global growth and weaker trade represent downside risks. An abrupt surge in global financial market volatility or an upward shift in U.S. interest rates would feed quickly into the local financial system, with spillover effects on the local economy. However, strong fundamentals and the room to implement a countercyclical fiscal response would mitigate the impact of such external shocks. The potential negative impact from delays in concluding the measures to tackle financial transparency shortcomings could be significant. Conducting international transactions has become somewhat more difficult due to concerns over transparency and weaknesses of the AML/CFT framework, including through increased due diligence by correspondent banks. Delaying reforms to financial integrity and transparency could have negative implications for the economy through higher costs of trade settlements, difficulty in obtaining cross-border borrowing and potential decline in FDIs. Executive Board Assessment Executive Directors commended Panama's robust macroeconomic performance and continued solid economic growth. Noting Panama's exposure to external shocks in global growth, trade, and financial markets, Directors stressed the importance of enhancing the fiscal framework and fostering resilience through strengthened fiscal buffers, while maintaining financial stability and sustaining strong and inclusive growth. Directors encouraged the authorities to strengthen the fiscal framework for the medium term. They advised revising the threshold for canal contributions in line with average expected contributions, while adopting a more comprehensive definition of net debt in the Social and Fiscal Responsibility Law (SFRL). Directors also recommended continued efforts to enhance revenue mobilization through capacity building and administrative reforms. They welcomed the progress in reducing electricity subsidies, and encouraged further efforts to improve the targeting of subsidies and streamline current spending. Directors underscored the importance of reforming the pension system to address large unfunded liabilities, while curbing other contingent liabilities. They looked forward to full implementation of the Single Treasury Account and progress on other initiatives to improve public financial management. Directors commended the authorities for the progress in enhancing the financial integrity and transparency frameworks, including the recent passage of AML/CFT legislation and ongoing implementation of the action plan agreed with the Financial Action Task Force (FATF). They called for expeditious resolution of the remaining deficiencies to bring the financial integrity and transparency frameworks fully in line with the international standard. Directors noted that Panama's banking system remains stable, well capitalized and highly liquid, but advised continued efforts to strengthen bank supervision and risk monitoring. They encouraged swift implementation of the remaining 2011 FSAP recommendations, and called for further progress on a well-designed liquidity facility for banks. Directors also recommended better monitoring of financial risks and macrofinancial linkages, and further development of the macroprudential policy framework. Directors agreed that improvements in productivity and human capital are key to sustainable, equitable, and inclusive growth. This will require efforts to further enhance the quality of public education and healthcare, upgrade skills, stimulate youth employment and female labor force participation, and strengthen institutions. They also recommended that the authorities take advantage of the current benign inflation environment to phase out price controls. Directors encouraged the authorities to improve the quality and coverage of statistics, which would help close gaps in data that are relevant for conducting sound macroeconomic policy and risk assessment. ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN AIRLINES: To Upgrade Passenger Service System ------------------------------------------------------- RJR News reports that Caribbean Airlines Limited selected international IT group AMADEUS as the provider to upgrade its Passenger Service System. The airline is promising that the combined reservations, airport check-in, ticketing, inventory management system and e-Commerce will usher in a new era for CAL and its customers, as part of its "customer-centric" strategy, according to RJR News. By unifying the systems, every customer touch point will be consolidated with the ability to provide comprehensive real-time information, at a lower cost to the airline than its existing system, the report relates. About Caribbean Airlines Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on March 19, 2015, RJR News said that Caribbean Airlines Limited is still facing an acute shortage of pilots. Trinidad's Newsday newspaper said the airline is still reeling from the loss of close to a dozen pilots from its Jamaican operations last year, forcing it to send Trinidadian pilots to operate some of the Jamaican routes to US destinations, according to RJR News. The TCRLA reported on Sept. 24, 2014, that Trinidad Express said Caribbean Airlines Limited will get a total of TT$1.8 billion support from the Government during the period 2013 and 2015. Finance Minister Larry Howai stated that the Caribbean Airlines management had informed him that the company expects to break-even in three years time. Mr. Howai, however, said that government would have to provide funds for CAL in 2015, 2016 and 2017. On July 11, 2014, the TCRLA citing Trinidad and Tobago Newsday, said that Caribbean Airlines is facing a loss. Minister Howai was hopeful the loss could be narrowed down to less than TT$100 million. Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. In 2011, CAL had recorded losses of US43.7 million, the TCRLA reported on May 20, 2013. *********** 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 * * *