/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150716.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, July 16, 2015, Vol. 16, No. 139 Headlines B R A Z I L BRAZIL: Budget Axe Falling Too Heavily on Us, Say Businesses BRAZIL: Drives Corporate Downgrades to Outpace Upgrades Says Fitch TONON BIOENERGIA: S&P Lowers Corporate Credit Rating to 'SD' C A Y M A N I S L A N D S GS CONCENTRATED: Commences Liquidation Proceedings GS DISTRESSED: Commences Liquidation Proceedings GS ENERGY: Commences Liquidation Proceedings GS HOLDINGS: Commences Liquidation Proceedings GS PEP 2000: Commences Liquidation Proceedings GS PEP 2002: Commences Liquidation Proceedings GS PEP HOLDINGS: Commences Liquidation Proceedings GS US MARKET: Commences Liquidation Proceedings GS US MIDDLE: Commences Liquidation Proceedings GS WLR: Commences Liquidation Proceedings D O M I N I C A N R E P U B L I C * DOMINICAN REP: Tenders, Not 'Whim' to Find Oil, Minister Says E L S A L V A D O R AES EL SALVADOR: Fitch Cuts Issuer Default Ratings to 'B+' J A M A I C A JAMAICA: Debt is Now J$2.046 Trillion M E X I C O ELEMENTIA SA: IPO No Impact on Moody's Ba2/A1.mx Sr. Sec. Rating HIPOTECARIA SU: S&P Affirms 'D(sf)' Rating of Class B Debt MEXICO: Foreign Reserves Fall by $388 Million P U E R T O R I C O ANNA'S LINEN: Meeting of Creditors Set for Aug. 7 COCO BEACH GOLF: Voluntary Chapter 11 Case Summary DORAL FINANCIAL: Gets More Time to Remove Suits DORAL FINANCIAL: Seeks Oct. 7 Extension of Plan Filing Date DORAL FINANCIAL: Needs Until Oct. 7 to Decide on Leases GOVERNMENT DEVELOPMENT: S&P Lowers ICR to 'CC'; Outlook Negative STANDARD REGISTER: Ct. Issues Restraining Order Against Ex-Workers T R I N I D A D & T O B A G O PETROTRIN: Gov't Wants New Pres. Before Elections, Roget Claims U R U G U A Y ADMINISTRACION NACIONAL: Moody's Lowers CFR to B1; Outlook Stable V E N E Z U E L A VENEZUELA: Needs Debt Refinancing, Not Default, Capriles Says - - - - - =========== B R A Z I L =========== BRAZIL: Budget Axe Falling Too Heavily on Us, Say Businesses ------------------------------------------------------------ Joe Leahy at The Financial Times reports that one of the more bizarre political debates in Brazil this year has been over whether Joaquim Levy, the country's hawkish finance minister, should be regarded as Judas or Jesus. President Dilma Rousseff started it by warning her left-leaning Workers' party not to treat the Chicago-trained economist as a "Judas", or traitor, for launching an austerity program to rebalance the government's budget after years of profligacy, according to The Financial Times. Her vice-president, Michel Temer, went further, likening him to "Jesus Christ" for trying to "save" Brazil, which is in danger of losing its investment-grade credit rating unless Mr. Levy can stabilize rising levels of public debt, The Financial Times notes. "It [Mr Levy's fiscal austerity program] looks like something difficult and complicated but it will deliver the best results," The Financial Times quoted Mr. Temer as saying. The Financial Times notes that for many in Brazilian business, which is suffering from a worsening recession, Mr. Levy ranks somewhere in between the two biblical figures. Most industrialists acknowledge the need to tackle the budget deficit, which at 7 per cent last year was the worst in a decade, The Financial Times relates. But many industries in Brazil are heavily dependent on government protection, subsidies and tax incentives to survive in an economy that the World Bank regards as one of the world's least competitive, says the report. The Financial Time notes that critics feel the axe is falling too heavily on the wrong areas, such as exports, investment and manufacturing. "The question mark is not whether to do the fiscal adjustment but how to do it in such a way as to produce a less negative effect on the Brazilian economy," said Roberto Giannetti da Fonseca, vice-president of the Brazilian Foreign Trade Association, the report relays. The Financial Times discloses that after years of prolonged fiscal stimulus to counter the end of the commodities supercycle and a consumer credit boom, Ms. Rousseff this year appointed Mr. Levy to restore the budget to a primary surplus, which is the balance before interest payments. Mr. Levy has set a primary surplus target of 1.2 per cent this year, compared with a deficit last year. This is to come from sharp cuts in public investment, reductions in some employment and pension benefits, the slashing of subsidies for energy and tax hikes on fuel, The Financial Times notes. It will also come from cutting tax breaks, such as those on exports and company payrolls, and reducing state-bank subsidised lending, note the report. The central bank, meanwhile, is trying to stymie inflation by sharply raising interest rates, The Financial Times notes. It has also allowed Brazil's currency, the real, to depreciate 45 per cent against the dollar over the past year, The Financial Times discloses. "Is it an emergency situation? Yes," said Paolo Dal Pino, president for South America at tyremaker Pirelli, of the economic slump, The Financial Times notes. "But is it a situation that can be turned around? Yes it is. If the government . . . takes the right measures we will suffer for 12-18 months and then see good results," Mr. Dal Pino added. But some businessmen complain about the types of measures that are being taken, The Financial Times relays. For instance, reimbursements under "Reintegra", a program under which the state compensates exporters for duplicate taxes that accumulate in the production chain, were cut from 3 percentage points of the value of goods to 1 percentage point, said the foreign trade association's Mr. Giannetti, The Financial Times notes. This undermined Brazil's competitiveness, he said. "You cannot export tax," he added. The Financial Times notes that Mr. Giannetti also criticised central bank intervention to cushion the depreciation of the exchange rate, which he said was to help it meet its inflation targets. Intervention had prevented the real from devaluing even more. "The exporters are being penalized," Mr. Giannetti added. Other businessmen decry Mr. Levy's reduction of tax breaks on company payrolls, The Financial Times relays. This tax is regarded as particularly regressive as it discourages hiring, The Financial Times notes. The Financial Times says that one senior executive of a large retailer complained industry and labor were bearing the brunt of austerity while Brazil's government, one of the world's largest as a share of gross domestic product, was hardly touched. "Public sector jobs are not being cut because that's their [the ruling coalition's] support base," he said, the report relays. Others said the government had its hands tied because Brazil's constitution and labor laws protected government jobs and confined the kind of budget cuts that could be made mostly to "discretionary spending" -- which is mainly investment, The Financial Times notes. Of nearly BRL70 billion ($22 billion) in cuts announced by the planning ministry recently, a big part was investment in infrastructure and logistics, says the report. "There is a sharp decline in public investment, which of course is not the ideal strategy because that has an indirect effect on private investment and the economy as a whole," said Carlos Langoni, former central bank governor and founder of consultancy Projeta, according to The Financial Times. But while they may differ over the details, most businessmen agree that the fiscal adjustment needs to be done as soon as possible to limit the pain, the report notes. It should then be followed by sweeping reform to stimulate investment and aid the recovery, The Financial Times relates. To this end, one of the most concerning things was political infighting over the adjustment, with Brazil's congress undermining austerity by recently increasing salaries for the judiciary, says the report. "What we need is the government and all stakeholders to act together," said Mr. Dal Pino, The Financial Times adds. BRAZIL: Drives Corporate Downgrades to Outpace Upgrades Says Fitch ------------------------------------------------------------------ Brazil's continued economic underperformance led non-financial corporate (corporate) downgrades to outpace upgrades during the second quarter 2015, according to Fitch Ratings. For 2Q15, corporate downgrades exceeded upgrades by 2.5 to 1.0. The downgrade-to-upgrade ratio attributed to changes in the operating/industry profile was 1.7 to 1.0 (1.4 for the six months ending June 2015). Brazilian issuers drove 28% of corporatewide and 83% of Latin American corporate downgrades. The food, beverage, and tobacco (FBT) sector led corporate downgrades in the second quarter with 21% of downgrades, primarily driven by weakness in Latin America. More than one-half of FBT downgrades were Brazilian sugar and ethanol issuers, including multiple downgrades of Tonon Bioenergia S.A. and U.S.J.-Acucar e Alcool S.A. Fitch expects prices for sugar and ethanol to remain under pressure despite improvements in ethanol industry dynamics in 2015 compared to 2014. In addition to the FBT rating actions, weak steel demand in the region and declines in ore prices affecting their own mines' sales contributed to downgrades of steel companies CSN and Usinas, although Gerdau's investment-grade ratings have been affirmed. A weak economic environment is expected to continue for the next two years, with Fitch projecting a contraction in Brazil's economy by 1.5% in 2015 before experiencing tepid growth of 0.7% in 2016. This will continue to lead to weak domestic demand across most corporate sectors. Independent of economic weakness in Brazil, we expect mergers and acquisition (M&A) activity to continue and potentially pick up as the year progresses, driving event risk (around 15% of downgrades and upgrades). M&A activity, including Dufry AG's announcement to acquire World Duty Free Group, Wisconsin Energy Corp.'s planned acquisition of Integrys Energy Group, and H.J. Heinz merger with Kraft Foods contributed to downgrades and upgrades in the quarter. Fitch expects consolidation activity in healthcare, energy, and FTB to continue driving event risk-related rating actions. TONON BIOENERGIA: S&P Lowers Corporate Credit Rating to 'SD' ------------------------------------------------------------ Standard & Poor's Ratings Services has lowered its corporate credit rating on Tonon Bioenergia S.A. to 'SD' (selective default) from 'CC'. S&P also lowered its issue-level rating on the company's $300 million senior unsecured notes to 'D' (default) from 'C'. At the same time, S&P placed the 'CC' rating on Tonon's $230 million senior secured notes on CreditWatch with positive implications. The downgrade follows Tonon's recent announcement that more than 95% of its noteholders approved the proposal for exchanging the amount of the $300 million corresponding to their share for new senior unsecured notes. The new notes will have the same maturity as the original notes, but lower interest rates (7.25% per year) for the first two years and will allow the company to defer interest payments at its sole discretion in this period. Afterwards, interest climbs back to the same levels of the original notes (9.25%), while interest payments will resume, as long as the company is able to maintain a minimum cash position of R$100 million. The outstanding amount and accrued unpaid interest will be fully paid at maturity. The noteholders that didn't agree with the proposed exchange will maintain the current notes with their original conditions, but covenant package will be removed and the notes won't have priority payment over the exchanged notes. According to S&P's criteria, it views this as a distressed exchange, especially because noteholders will receive less than originally expected, and S&P also views the company's liquidity as "weak" with an appreciable likelihood of a conventional default in case the exchange didn't occur. S&P expects to raise its ratings on Tonon to 'CCC-' or 'CCC' over the next few days. In S&P's view, the higher rating would result from Tonon's ability to improve and maintain liquidity at least to "less than adequate" over the next several quarters under its base-case scenario. ========================== C A Y M A N I S L A N D S ========================== GS CONCENTRATED: Commences Liquidation Proceedings -------------------------------------------------- On June 19 2015, the sole shareholder of GS Concentrated Energy Offshore Holdings Advisors, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GS DISTRESSED: Commences Liquidation Proceedings ------------------------------------------------ On June 19 2015, the sole shareholder of GS Distressed Opportunities Offshore Advisors, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GS ENERGY: Commences Liquidation Proceedings -------------------------------------------- On June 19 2015, the sole shareholder of GS Concentrated Energy Offshore Advisors, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GS HOLDINGS: Commences Liquidation Proceedings ---------------------------------------------- On June 19 2015, the sole shareholder of GS Distressed Opportunities Offshore Holdings Advisors, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GS PEP 2000: Commences Liquidation Proceedings ---------------------------------------------- On June 19 2015, the sole shareholder of GS PEP 2000 Offshore Advisors, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GS PEP 2002: Commences Liquidation Proceedings ---------------------------------------------- On June 19 2015, the sole shareholder of GS PEP 2002 Offshore Advisors, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GS PEP HOLDINGS: Commences Liquidation Proceedings -------------------------------------------------- On June 19 2015, the sole shareholder of GS PEP 2000 Offshore Holdings Advisors, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GS US MARKET: Commences Liquidation Proceedings ----------------------------------------------- On June 19 2015, the sole shareholder of GS U.S. Middle Market Buyout Offshore Advisors, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GS US MIDDLE: Commences Liquidation Proceedings ----------------------------------------------- On June 19 2015, the sole shareholder of GS U.S. Middle Market Buyout Offshore Holdings Advisors, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GS WLR: Commences Liquidation Proceedings ----------------------------------------- On June 19 2015, the sole shareholder of GS WLR Opportunities Advisors Offshore, Inc. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REP: Tenders, Not 'Whim' to Find Oil, Minister Says --------------------------------------------------------------- Dominican Today reports that Dominican Republic Energy and Mines minister Antonio Isa Conde said oil explorations will be carried out through a call for tenders and not simple concessions granted "at a whim," to make the process more transparent and efficient in keeping with the country's interests. Mr. Conde said the tenders will begin as soon as multinational contractor Schlumberger Surenco concludes the National Hydrocarbons Database currently being compiled across the country, according to Dominican Today. "What we'll do is that when we have that information and the defined blocks worth exploring, we'll tender the exploration contracts. No concessions are to be provided at a whim. Tenders will be based on, first, decide the profile of what we want and then the type of contract that we'll apply and that's what's going to be tendered," Mr. Conde said, the report notes. Schlumberger Surenco won the tender for the National Hydrocarbons Database in December 2014 and the work which began in March 2015 is slated to conclude in December, including the planning, scanning, raster, vectorization and indexing all relevant information relating to State-held oil, as well as process and reinterpret all 2D seismic information, the report adds. ===================== E L S A L V A D O R ===================== AES EL SALVADOR: Fitch Cuts Issuer Default Ratings to 'B+' ---------------------------------------------------------- Fitch Ratings has downgraded AES El Salvador Trust II's (AES El Salvador) foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'BB' and revised the Rating Outlook to Stable from Negative. In addition, Fitch has downgraded the company's USD310 million senior unsecured notes due 2023 to 'B+/RR4' from 'BB'. The downgrade is driven by Fitch's recent Sovereign rating downgrade of El Salvador to 'B+' from 'BB-' with Stable Outlook, along with the country ceiling downgrade to 'BB' from 'BB+'. The new Sovereign rating category highlights the credit profile deterioration of the subsidy payment source to electricity companies. AES El Salvador's rating considers the company's exposure to the sustained weakening macroeconomic conditions in El Salvador, which could affect electricity demand, collections and non-technical electric losses. KEY RATING DRIVERS AES El Salvador revenues and cash generation are likely to continue to rely on government subsidies. Currently the government subsidizes residential users with a monthly consumption of 99 kilowatt hours (kWh) or less. The country's users connected to the distribution system with energy consumption of 99 kWh or less represent 66.2% of total users, which accentuates the importance of the government subsidies to the country. Approximately 80% of AES El Salvador's customers received subsidies. AES El Salvador received subsidies of approximately USD136.1 million in 2014 and USD136.9 million in 2013, representing approximately 16% of total revenues. During the LTM ended March 2015 the company generated USD81.4 million in EBITDA, up from USD76.9 million in FY2014. Although the government has been paying subsidies in a timely manner, payment delays or a significant extension of the collection period may impact AES El Salvador's financial profile and pressure the ratings. Additionally, in the past the government implemented an extraordinary subsidy for users with consumption below 200 kWh, which was reviewed quarterly and represented between 15%-20% of total 2014 subsidies. Beginning April 15, 2015, this extraordinary subsidy was eliminated. Fitch expects that AES El Salvador subsidies for 2015 will be lower than in 2014 due to lower energy costs, while maintaining a debt-to-EBITDA ratio between 3.5x-4.0x and stable liquidity. AES El Salvador Trust II is a special-purpose vehicle (SPV) located in Panama that was created to issue USD310 million of notes on behalf of AES El Salvador Group. AES El Salvador's ratings are based on the combined credit strength of the operating companies that guarantee its debt and reflect the group's strong market position, low business risk profile, and its predictable cash flow generation. The ratings also reflect the exposure to high regulatory risk and to Sovereign risk through subsidies. RATING SENSITIVITIES -- AES El Salvador's ratings could be negatively affected by any combination of the following factors: a Sovereign downgrade; deterioration of the operating environment resulting from regulatory changes that may impact working capital requirements and increase exposure to subsidies that in turn leads to increased leverage above 4x; liquidity deterioration due to energy costs not recovered through government subsidies; or further political or regulatory intervention that negatively affects the company's financial performance. -- An upgrade is not likely in the near term due to the weakening macroeconomic conditions of El Salvador, and the strong reliance on government subsidies. AES El Salvador's ratings could be positively affected by improving macroeconomic conditions in El Salvador in conjunction with a sustainable leverage reduction (to below 3x); and regulatory stability. KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: -- Energy sales (GWh) growth of 1.0% from 2015-2018; -- AES El Salvador's distribution companies maintain its strong market share participation; -- No elimination of subsidies (below 99Kwh consumption); government subsidies continue to be paid in a timely manner; -- Capital Expenditures around USD35 million per year; -- Gross leverage around 3.5x in the next three years. ============= J A M A I C A ============= JAMAICA: Debt is Now J$2.046 Trillion ------------------------------------- RJR News reports that Jamaica's public debt has increased to a new record. The Ministry of Finance disclosed that the debt is now J$2.046 trillion, according to RJR News. Despite an increase in the debt, in dollar amount, however, it is expected that, in relative terms, it will have declined to be equivalent to 133 per cent of GDP by March next year, the report notes. * * * 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 =========== ELEMENTIA SA: IPO No Impact on Moody's Ba2/A1.mx Sr. Sec. Rating ---------------------------------------------------------------- Moody's said that Elementia's initial public offering is credit positive, but it does not impact the company's stable outlook or Ba2/A1.mx senior unsecured and corporate family ratings. Elementia, S.A. is a major manufacturer of semi-finished copper, alloy, fiber cement, cement, and plastic products with consolidated revenues of MXN15.8 billion (USD1.2 billion) for the 12 months ended March 31, 2015. The company has four business segments: metals, building systems (fiber cement products), plastics, and cement and operates in Mexico and in Latin America. HIPOTECARIA SU: S&P Affirms 'D(sf)' Rating of Class B Debt ---------------------------------------------------------- Standard & Poor's Rating Services affirmed its global and national (CaVal) scale ratings and Standard & Poor's underlying ratings (SPURs) on two Su Casita-originated residential mortgage-backed securities (RMBS) transactions. The two transactions, Hipotecaria Su Casita-Residential Mortgage Backed Notes' class A and B notes due 2035, and Hipotecaria Su Casita-Bursatilizaciones de Hipotecas Residenciales III's certificados bursatiles BRHCCB 07-2U and 07- 3U, have their senior tranches insured by MBIA Insurance Corp. ('B/Stable') and MBIA Mexico S.A. de C.V. ('B/Stable'; 'mxBB+/Stable'), respectively. The affirmations on the senior classes reflect the ratings on their respective bond insurance provider while the SPUR reflects the stand-alone capacity of the issue to pay debt service without its external enhancement, in this case without the protection of their respective bond insurance provider. The 'D (sf)' ratings on the subordinated classes (classes B and BRHCCB 07-3U) reflect that these continue missing interest payments. Under S&P's criteria, the issue rating on an insured bond reflects the higher of the rating on the bond insurer or SPUR on the security. Therefore, S&P's global scale rating on the senior class A notes reflects the rating on MBIA as the full financial guarantor, while S&P's global and national scale ratings on senior series BRHCCB 07-2U reflects MBIA Mexico's rating as the full financial guarantee provider. Hipotecaria Su Casita-Residential Mortgage-Backed Notes is a cross-border RMBS transaction issued on April 2, 2007, by Trust 430 constituted in CIBanco S.A. Institucion de Banca Multiple (formerly The Bank of New York Mellon S.A.) It was issued in two tranches: class A was issued for $232.53 million and pays monthly interest at a rate of one-month LIBOR plus 0.23%, and class B was issued for $226.5 million Mexican pesos (MXN) indexed to inflation linked units (MXV) and pays monthly interest at 6.47% over the MXV-indexed balance. Hipotecaria Su Casita-Bursatilizaciones de Hipotecas Residenciales III is a local RMBS transaction issued on Oct. 25, 2007, by Trust 234036, constituted in HSBC Mexico S.A. It was issued in three classes: BRHCCB 07U and BRHCCB 07-2U were issued as time-tranched senior classes for MXV283.47 million and MXV425.20 million, respectively, with monthly interest rates of 4.19% and 4.35%. The subordinated class BRHCCB 07-3U was issued for MXV64.85 million and pays monthly interest at 6.99%. BRHCCB 07U is no longer rated, as it was fully amortized on Aug. 26, 2013. RATINGS AFFIRMED Hipotecaria Su Casita - Residential Mortgage-Backed Notes Class Amount Tranche type Rating (mil.) Class A Senior B (sf) USD85.43 Class A SPUR CC (sf) USD85.43 Class B Sub. D (sf) MXN184.97 Hipotecaria Su Casita - Bursatilizaciones de Hipotecas Residenciales III Class Amount Tranche type Rating (mil. UDI) BRHCCB 07-2U Senior B (sf) 381.62 BRHCCB 07-2U Senior mxBB+ (sf) 381.62 BRHCCB 07-2U SPUR D (sf) 381.62 BRHCCB 07-3U Sub. D (sf) 64.85 USD--U.S. dollars. MXN--Mexican pesos. UDI-Inflation-linked units. MEXICO: Foreign Reserves Fall by $388 Million --------------------------------------------- EFE News reports that Mexico's foreign reserves fell by $388 million to $191.8 billion, the Bank of Mexico said. Reserves fell in the week ending July 10, with "the trend consistent with the seasonal pattern of money supply demand," the central bank said, according to EFE News. The figures still reflect "the temporary effects associated with" Mexico's June 7 midterm elections and "whose impact on the annual growth rate should continue to diminish" with time, 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 MXN2.18 billion (about $138.8 million) to MXN1.06 trillion (some $67.44 billion), the central bank said, the report relays. The money supply has contracted by MXN2.7 billion ($172 million) since Jan. 1, adds the report. ====================== P U E R T O R I C O ====================== ANNA'S LINEN: Meeting of Creditors Set for Aug. 7 ------------------------------------------------- The meeting of creditors of Anna's Linens Inc. is set to be held on Aug. 7, 2015, at 10:00 a.m. (Pacific Time), according to a filing with the U.S. Bankruptcy Court for the Central District of California. The meeting will be held at the Ronald Reagan Federal Building and U.S. Courthouse, Room 1-154, 411 West Fourth Street, in Santa Ana, California. The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. About Anna's Linens Anna's Linens is a specialty retailer offering home textiles, furnishings and decor at attractive prices. Headquartered in Costa Mesa, California, operates a chain of 268 company owned retail stores throughout 19 states in the United States (including Puerto Rico and Washington, D.C.) generates over $300 million in annual revenue and employs a workforce of over 2,500 associates. Anna's Linens sought Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 15-13008) in Santa Ana, California, on June 14, 2015. The case is assigned to Judge Theodor Albert. The Debtor tapped Levene, Neale, Bender, Yoo & Brill LLP as counsel. The Debtor estimated assets of $50 million to $100 million and debt of $100 million to $500 million. The U.S. trustee overseeing the Chapter 11 case of Anna's Linens Inc. appointed seven creditors to serve on the official committee of unsecured creditors. COCO BEACH GOLF: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Coco Beach Golf & Country Club, S.E. PO Box 21420 San Juan, PR 00928-1420 Case No.: 15-05312 Nature of Business: Golf Course and Club Chapter 11 Petition Date: July 13, 2015 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Charles Alfred Cuprill, Esq. CHARLES A CUPRILL, PSC LAW OFFICE 356 Calle Fortaleza Second Floor San Juan, PR 00901 Tel: 787 977-0515 Email: cacuprill@cuprill.com Total Assets: $9.2 million Total Liabilities: $78 million The petition was signed by Jorge Luis Diaz Irizarry, authorized individual. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. DORAL FINANCIAL: Gets More Time to Remove Suits ----------------------------------------------- U.S. Bankruptcy Judge Shelley Chapman extended the deadline for Doral Financial Corp. to remove lawsuits until the earlier of (i) the date an order is entered confirming a Chapter 11 plan in its bankruptcy case, or (ii) 60 days after the appointment of a Chapter 7 trustee. About Doral Financial Doral Financial Corporation is a holding company whose primary= operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The Debtor's Chapter 11 plan and Disclosure Statement are due July 9, 2015. The initial case conference is set for April 10, 2015. The U.S. trustee overseeing the Chapter 11 case of Doral Financial Corp. appointed five creditors of the company to serve on the official committee of unsecured creditors. DORAL FINANCIAL: Seeks Oct. 7 Extension of Plan Filing Date ----------------------------------------------------------- Doral Financial Corporation asks the United States Bankruptcy Court for Southern District of New York to extend (1) the time period during which the Debtor has the exclusive right to file a chapter 11 plan, through and including October 7, 2015, and (2) the period during which the Debtor has the exclusive right to solicit acceptances thereof through and including January 5, 2016. The Debtor explained that though it has made substantial progress in its case, it requires additional time to sell certain assets and negotiate a Chapter 11 plan that will best maximize value for creditors. Since the appointment of the Official Committee of Unsecured Creditors, the Debtor has worked closely with the UCC in exploring opportunities to maximize recoveries for the parties-in-interest. It is contemplated that this coordination and cooperation shall continue, the Debtor tells the Court. The Committee has indicated it does not oppose the extension sought. The extension of the Exclusive Periods will ensure that the Debtor is able to capitalize on the progress it has made to date towards its goal of successfully reorganizing, the Debtor tells the Court. The Bankruptcy Court will convene a hearing on July 23, 2015, at 10:00 a.m. (Eastern Time), to consider approval of the extension request. The Debtor is represented by: Mark I. Bane, Esq. Meredith S. Tinkham, Esq. ROPES & GRAY LLP 1211 Avenue of the Americas New York, NY 10036-8704 Tel: 212 596-9000 Fax: 212 596-9090 Email: mark.bane@ropesgray.com meredith.tinkham@ropesgray.com -- and -- James A. Wright III, Esq. ROPES & GRAY LLP Prudential Tower 800 Boylston Street Boston, MA 02199-3600 Tel: 617 951-7000 Fax: 617 951-7050 Email: james.wright@ropesgray.com About Doral Financial Doral Financial Corporation is a holding company whose primary= operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The Debtor's Chapter 11 plan and Disclosure Statement are due July 9, 2015. The initial case conference is set for April 10, 2015. The U.S. trustee overseeing the Chapter 11 case of Doral Financial Corp. appointed five creditors of the company to serve on the official committee of unsecured creditors. DORAL FINANCIAL: Needs Until Oct. 7 to Decide on Leases ------------------------------------------------------- Doral Financial Corporation asks the United States Bankruptcy Court for Southern District of New York to extend through and including October 7, 2015, the time by which it must assume or reject leases of nonresidential real property. The Debtor explains that the Unexpired Leases are one of its remaining assets that could generate value for its estate and creditors and it has not yet had time to formulate a plan or to appraise the potential value of the Unexpired Leases and the impact of that value on a potential plan. The Bankruptcy Court will convene a hearing on July 23, 2015 at 10:00 a.m. (Eastern Time) to consider approval of the extension request. The Debtor is represented by: Mark I. Bane, Esq. Meredith S. Tinkham, Esq. ROPES & GRAY LLP 1211 Avenue of the Americas New York, NY 10036-8704 Tel: 212 596-9000 Fax: 212 596-9090 Email: mark.bane@ropesgray.com meredith.tinkham@ropesgray.com -- and -- James A. Wright III, Esq. ROPES & GRAY LLP Prudential Tower 800 Boylston Street Boston, MA 02199-3600 Tel: 617 951-7000 Fax: 617 951-7050 Email: james.wright@ropesgray.com About Doral Financial Doral Financial Corporation is a holding company whose primary= operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The Debtor's Chapter 11 plan and Disclosure Statement are due July 9, 2015. The initial case conference is set for April 10, 2015. The U.S. trustee overseeing the Chapter 11 case of Doral Financial Corp. appointed five creditors of the company to serve on the official committee of unsecured creditors. GOVERNMENT DEVELOPMENT: S&P Lowers ICR to 'CC'; Outlook Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its long-term issuer credit rating on the Government Development Bank for Puerto Rico (GDB) to 'CC' from 'CCC-'. At the same time, S&P is affirming its 'C' short-term issuer credit rating on GDB. The rating outlook is negative. "This downgrade reflects our view that a default by GDB in the near term is a virtual certainty," said Standard & Poor's credit analyst Brendan Browne. GDB has announced its intent to purchase its outstanding senior notes in the open market and in privately negotiated transactions through cash or exchange with new securities at a price the bank expects to be "materially less than par." S&P would deem such an exchange as distressed and consider it a default under its criteria. S&P affirmed its short-term rating because it believes it already reflects its expectation for default in the near term. S&P continues to monitor GDB's financial performance and believe its fundamental credit quality, including its business position, risk position, and funding and liquidity, are very weak. Moreover, S&P expects credit metrics to continue to be weighed down by the commonwealth's inability to access funding markets, and the overall deteriorating business, financial, and economic conditions in Puerto Rico. GDB faces nearly $900 million of notes maturating in fiscal 2016, and it had net liquidity of roughly $778 million as of May 31, 2015. S&P believes, in light of its tight liquidity conditions and limited ability to raise capital, GDB will have difficulty meeting its debt service requirements. The rating outlook is negative, reflecting S&P's view that a default on GDB's debt is virtually inevitable. S&P expects it will lower the issuer rating to 'SD' if GDB executes a debt exchange, and S&P will also lower the issue-level rating on any exchanged debt to 'D'. When GDB has completed the planned restructuring of its debt, S&P expects to update its assessment of the banks stand-alone credit profile. STANDARD REGISTER: Ct. Issues Restraining Order Against Ex-Workers ------------------------------------------------------------------ Asicentral.com reports that the U.S. Bankruptcy Court for the District of Delaware has issued a restraining order against Standard Register Company's former sales employees Craig Stockmal and Lynn Smith. Asicentral.com relates that the Company sued Mr. Stockmal and Ms. Smith, accusing the two of breach of contract and misappropriation of trade secrets, among other counts. David Rich, Esq., the attorney for Ms. Smith and Mr. Stockmal said that the interim order prevents his clients from contacting Standard Register customers during that time, but "the Court had 'significant reservations' about the plaintiff's claims." The Company claims in documents filed with the U.S. Bankruptcy Court for the District of Delaware that Ms. Smith and Mr. Stockmal used trade secrets and customer contacts to start a similar company. According to Asicentral.com, the Company says the resulting loss of key customers could threaten its $307 million sale to Taylor Corp., the top bidder in its recent bankruptcy court auction. The Company states in court documents that "Stockmal and Smith are now leading Focused Impressions, having secretly served as its founders, officers, executives and operatives while still employees at Standard Register, and using this misappropriated information to attempt to steal key Standard Register customers." Ms. Smith and Mr. Stockmal, Asicentral.com relates, contend that Focused Impressions is solely a software company, and does not compete with their former employer. About Standard Register Standard Register provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. The Official Committee of Unsecured Creditors tapped Lowenstein Sandler LLP as its counsel, Polsinelli PC as Delaware counsel and conflicts counsel, Jefferies LLC as its exclusive investment banker, and Zolfo Cooper, LLC, as its financial and forensic advisors. ================================ T R I N I D A D & T O B A G O ================================ PETROTRIN: Gov't Wants New Pres. Before Elections, Roget Claims --------------------------------------------------------------- Trinidad Express reports that Oilfield Workers Trade Union (OWTU) president general, Ancel Roget, has accused the Kamla Persad- Bissessar-led Peoples Partnership Government of moving to install a new president at State-owned Petroleum Company of Trinidad and Tobago (Petrotrin) before the September 7 general election. Mr. Roget claimed that qualified applicants were being overlooked as the Government plans to hire United National Congress (UNC) supporters and financiers, according to Trinidad Express. The report notes that Mr. Roget was responding to advertisements for a new president. Speaking at a press conference outside Petrotrin's Pointe-a-Pierre refinery Mr. Roget said the company was in dire need of a new president, the report relates. Mr. Roget said current president Khalid Hassanali was a non-performer. "And not withstanding his nonperformance and the fact that the company took a dip in its profits margins and so on almost running into ruin and chaos, he has been given a two year extension. This is a country where they reward nonperformance. That is why you have Khalid Hassanali sitting as president there. The sad thing about that is that they are in desperate attempt to remove the president before election and install another non-performer, a party supporter, who cannot do anything to improve the performance of the company's operation. We have ample knowledge that there are persons within the confines of Petrotrin's operation who can properly run and manage the operations efficiently and do a job a thousand times better than Khalid Hassanali and any party hats that they choose to bring from outside," the report quoted Mr. Roget as saying. Thirteen workers marched around the Pointe-a-Pierre roundabout in the rain, holding up placards, calling on Government to refrain from selling out Petrotrin's port and marine operations to private contractors, the report notes. The report discloses that Mr. Roget said the union was calling for an investigation into the company's intention to contract out its bunkering services. Mr. Roget questioned why Petrotrin refused to fill out the structures in the port and marine operations with permanent workers, the report relays. The report notes that Mr. Roget also demanded the reinstatement of three workers, who were fired following an investigation into workers refusal to berth vessels transporting crude oil originating from offshore Gabon during the period October to November 2014 at the Port at Pointe-a-Pierre. Thirty-seven others have been issued suspensions and warning letters. "Those dismissals were not normal and did not take the normal disciplinary procedures. Those workers were victimized and dismissed. The root of all of that was the intention of the company to corruptly contract the jobs of those workers and to give away lucrative part of the operation which has to do with bunkering. From then to now we have seen unfolding a flurry of activity which confirm in our mind in this election season as this Government prepares to go out of office they are nailing down lucrative deals left right and center," Mr. Roget said, the report relays. Mr. Roget said the permanent workers were competent to do the job and Petrotrin should take advantage of an opportunity to cash in high profits since it held a monopoly in bukering fuel, the report notes. Mr. Roget said following studies in 2005 and 2012 recommendations were made to improve Petrotrin's bunkering operations. "Because of the lucrative nature of this activity the company can make enormous sums of money, that petrotrin should procure a badge and tugs to ramp up its activity in this area. Money was allotted in the budget for that but there was a complete turn around," Mr. Roget claimed, the report adds. About Petrotrin Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 2, 2014, Trinidad and Tobago Newsday said that in the face of falling global oil prices, which is beginning to impact on Trinidad and Tobago's earnings from its petroleum resources, Petroleum Company of Trinidad and Tobago has rolled out a plan to remain viable and to survive in the harsh global oil industry. Petrotrin said in a media release that it is forging ahead with objective cost management decisions imperative to secure its viability, according to Trinidad and Tobago Newsday. The report said Petrotrin's operations have also been severely impacted due to unfavorable margins. The TCRLA reported on Jan. 21, 2014 that Trinidad Express, citing Energy Minister Kevin Ramnarine, said Petrotrin will make a loss for its 2013 financial year. According to Mr. Ramnarine, Petrotrin was scheduled to make the loss even before the series of oil spills affecting Trinidad's southwestern peninsula since December, reports Trinidad Express. ============= U R U G U A Y ============= ADMINISTRACION NACIONAL: Moody's Lowers CFR to B1; Outlook Stable ----------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating on Administracion Nacional de Combustibles, Alcohol y Portland (ANCAP) to B1 from Ba2. Moody's also downgraded the company's Baseline Credit Assessment (BCA) to caa1 from b2. These rating actions reflect the company's weak credit metrics, which Moody's believes will not reverse rapidly. The outlook on the ratings is stable. RATINGS RATIONALE The downgrade of ANCAP's BCA (a measure of the issuer's intrinsic risk regardless of its controlling entity) to caa1 reflects a weaker stand-alone credit profile derived mainly from the company's increased debt burden and persistent negative operating margins and cash generation. ANCAP, owned by the government of Uruguay, is the only refiner in the country, responsible for supplying 100% of the domestic needs of oil products. Because Uruguay does not have crude production, the company depends 100% on oil imports. In the last years, the government of Uruguay had prevented ANCAP from passing on cost increases, specially of crude, to final prices, which caused losses and increase in debt. In the short to medium term, Moody's believes that, despite the new government's guideline for more independent SOEs (sovereign- owned enterprises), it will be difficult for ANCAP to get approval for sizable price increases that would materially and rapidly help reverse negative operating margins and cash flows, given high annual inflation rate, at about 8%. In addition, cost cuts may be difficult to achieve by a company with limited cash to invest further in equipment or technology upgrades and a strong workforce. As of December 2014, ANCAP's total adjusted debt amounted to approximately USD 875 million, the equivalent to USD 3,130 per complexity barrel; Moody's-adjusted debt amount in the same period includes USD 325 million owed to PDVSA for purchase of crude oil. Although ANCAP's leverage has increased substantially during 2012- 2014, above historical levels, Moody's expects the amount of debt to stabilize going forward, now that the works at the La Teja Refinery have finished and capex has declined. However, operating margins will remain under pressure over the medium to long term, especially as crude prices start to increase again, as Moody's expects will gradually happen in the next couple of years. ANCAP's caa1 BCA is supported by its monopoly position in refining and dominant position in wholesale marketing in Uruguay. However, the BCA also considers the company's relatively small size, particularly in the context of its exposure to volatile and cyclical commodity prices, dependence on crude oil imports, as well as its reliance on a single refinery. ANCAP's crude distillation capacity of 50,000 bpd at a single complex (La Teja) raises concentration and operating risk issues. Since ANCAP is 100% owned by the Uruguayan government, it is considered a government related issuer (GRI) under Moody's methodology for such entities. ANCAP's B1 Corporate Family Rating is based on its BCA of caa1, medium dependence, reflecting the moderate degree of correlation between factors that could lead to financial stress on ANCAP and the government at the same time, and a high probability of extraordinary support from the government. The government's willingness to support the company is based on its 100% ownership of ANCAP's, the company's monopoly status for refining activities in Uruguay, and its strategic importance to Uruguay's economy and national security. The high support level embedded in ANCAP's ratings was evidenced in early 2013 by the USD 500 million loan equivalent that the government granted to the company, which basically replaced half of ANCAP's total outstanding debt at the time; the government loan is denominated in local currency ("UI" or "unidades indexadas") and therefore reduced ANCAP's exposure to FX risk. In addition, the government of Uruguay's ability to provide support to ANCAP is measured by its Baa2 local currency rating with a stable outlook. ANCAP's liquidity position is weak. Its cash flow is subject to the volatility of commodity prices and it needs to constantly roll-over short-term bank loans, which represented close to 60% of total debt as of December 2014. Foreign exchange risk is also high for ANCAP since imports are 100% U.S. dollar denominated and 80% of its debt is in U.S. dollars. However, although the company does not have access to committed credit facilities, as a government owned entity it has ample access to local and international bank financing in Uruguay. The stable rating outlook reflects Moody's expectation that ANCAP's operating and financial performance over the short to medium term will be based on possible local prices increases, which the rating agency believes will not be enough to materially revert current weak credit protection metrics promptly. Given ANCAP's current debt levels and weak operating and credit metrics, an upgrade of its BCA is not likely in the short to medium term. However, an upgrade of Uruguay's ratings could add upward rating pressure on ANCAP's Corporate Family Rating. Conversely, if the company's operating margins and free cash flow do not turn positive during 2015 and its debt continues increasing, its ratings could be downgraded further. The principal methodology used in this rating was Global Refining and Marketing Rating Methodology published in December 2009. Other methodologies used include the Government-Related Issuers published in October 2014. Administracion Nacional de Combustibles, Alcohol y Portland (ANCAP) is Uruguay's state-owned oil company with a monopoly position in refining and wholesale marketing within Uruguay. ANCAP owns Uruguay's only refinery (La Teja), with a Nelson complexity rating of 8 and a crude distillation capacity of 50,000 barrels per day; it is also engaged in the production of cement. ANCAP is the largest company in Uruguay, with revenues and total assets of USD 2.1 billion and USD 2.1 billion, respectively, in 2014. ================= V E N E Z U E L A ================= VENEZUELA: Needs Debt Refinancing, Not Default, Capriles Says ------------------------------------------------------------- Deisy Buitrago at Reuters reports that Venezuela must refinance its foreign debt to improve government cash flow in the face of recession and soaring inflation, opposition leader Henrique Capriles said, but added a default would have "terrible consequences" for the country. The OPEC nation is struggling with the shrinking economy and chronic shortages of basic goods following last year's oil market rout, with bond payments taking up a growing portion of available hard currency, according to Reuters. "We must sit down immediately and seek better conditions for debt payment," Mr. Capriles told a news conference, the report relates. "However, we cannot opt for non-payment, because non-payment has terrible consequences for the republic. We're not talking about default," Mr. Capriles said, the report relays. Venezuela faces $6.44 billion in debt service between August and December, according to Thomson Reuters data, that is equivalent to about 40 percent of the central bank's international reserves. The country's economic malaise has boosted investor concerns about a possible debt default, leaving Venezuelan bonds yielding almost 30 percentage points more than comparable U.S. Treasury notes -- the highest of any emerging market nation, the report notes. The report discloses that Mr. Capriles, two-time presidential candidate and governor of Miranda state, said there was no reason for the International Monetary Fund to be involved in a debt refinancing deal. Mr. Capriles said the proposal was part of his own broader plan for economic recovery, the report relays. It was not immediately evident if either the government or the opposition coalition would back the idea. Venezuela could save $10 billion through a voluntary refinancing plan, an aide to Mr. Capriles said, the report says. Refinancing generally involves negotiating an agreement with creditors to improve the terms of a financing arrangement, while default implies that the borrower unilaterally refuses to make payments or does not do so as scheduled, the report discloses. The report notes that low oil prices together with a sputtering state-led economic model have pushed Venezuela into recession and spurred inflation that is believed to be in triple digits. The central bank this year has not published basic economic indicators, the report relates. Polls show that frustration over the economy, particularly with long supermarket lines and constant scrambling for consumer goods ranging from meat to medicine, could lead the ruling Socialist Party to lose the Dec. 6 parliamentary elections, the report says. President Nicolas Maduro dismisses default rumors as part of a right-wing smear campaign and insists the government will meet all debt commitments, noting that the Socialist Party has never missed a bond payment, the report adds. *********** 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 * * *