/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150729.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 Wednesday, July 29, 2015, Vol. 16, No. 148 Headlines A R G E N T I N A CARBOCLOR SA: Moody's Assigns B1 Rating to Proposed ARS95MM Notes B R A Z I L BRAZIL: Analysts See Worsening Economic Picture BTG INVESTMENTS: Fitch Affirms 'BB+' Long-term Currency IDRs MRS LOGISTICA: S&P Affirms 'BB+' Global Scale Rating C A Y M A N I S L A N D S BREEZE HOLDING: Shareholder to Hear Wind-Up Report on Aug. 14 CENTURY ASSETS: Shareholders' Final Meeting Set for Aug. 10 FOUNDATION RE III: Shareholder to Hear Wind-Up Report on Aug. 6 GENPOWER HOLDINGS: Shareholders' Final Meeting Set for July 29 GS PEP 1999: Members' Final Meeting Set for July 31 LAXEY LIMITED: Members' Final Meeting Set for Aug. 10 LONGACRE SPV i: Shareholders' Final Meeting Set for July 30 MIDPOINT LIMITED: Members' Final Meeting Set for Aug. 3 NIMUE LEASING: Shareholder to Hear Wind-Up Report on July 29 PLATINUM ARBITRAGE: Shareholder to Hear Wind-Up Report on July 29 C H I L E AES GENER: S&P Affirms 'BB' Rating on Jr. Subordinated Bonds D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Must Build More Dams to Deal With Water Crises J A M A I C A DIAGEO: US SEC Starts Probe on Distribution Activities in America JAMAICA: Oil Price Plunging Again JAMAICA: Fitch Puts 'B-' Sr. Unsec. Debt Rating to USD2.0BB Bond JAMAICA: S&P Assigns 'B' Issue Rating to US$2BB Bonds M E X I C O PETROLEOS MEXICANOS: To Export 6 Million Barrels of Oil to Japan P U E R T O R I C O PETER WOJTKUN: Bid to Dismiss Suit vs. Wojtkun Partially Granted V E N E Z U E L A VENEZUELA: Won't Escape Default in '16, Harvard Professor Now Says - - - - - ================= A R G E N T I N A ================= CARBOCLOR SA: Moody's Assigns B1 Rating to Proposed ARS95MM Notes ----------------------------------------------------------------- Moody's Latin America assigned B1 global scale and Aaa.ar national scale ratings to Carboclor S.A's proposed ARS 95 million senior unsecured notes. The proposed notes will benefit from the guarantee of Carboclor's indirect holding company, Administracion Nacional de Combustibles, Alcohol y Portland (ANCAP), rated B1 stable. Simultaneously, Moody's downgraded Carboclor's Corporate Family Ratings to Caa1 and Baa3.ar from B3 and A3.ar. The outlook for all ratings is stable. The Caa1 and B1 ratings are historically associated with a default probability, over a 3-year horizon, of 23.8% and 10.6%, respectively. RATINGS RATIONALE Carboclor's ratings downgrade reflects weaker credit metrics that in Moody's view will persist over the medium term coupled with a fundamental deterioration of the credit profile of its parent company ANCAP. Carboclor's Caa1 and Baa3.ar Corporate Family Ratings (CFR) reflect its small size, narrow product line, limited operational and geographic diversity, as well as the commodity nature of its products and its significant exposure to volatile raw material inputs. Another constraint is the company's reliance on selling MTBE, an additive to gasoline and the second largest product in Carboclor's portfolio. Some countries have already banned the use of MTBE and its use in Argentina is likely to decline in the short term, as Moody's expects regulations that require the use of a 5% bio-fuel blend for gasoline, which will lead to substitutes for MTBE. Moody's believes that these weaknesses pose significant business risks to the company's operations. Also constraining the rating are Carboclor's highly volatile margins and weak margin protection during 2013 and 2014, when credit metrics deteriorated substantially, mainly as a result of lower revenues growth and inflation. Moreover, the company's small operating scale did not allow it to absorb external shocks namely labor strikes and production problems at one of its main suppliers' facilities. On the other hand, Carboclor's ratings take into consideration the strong support received by parent company ANCAP and further evidenced in the guarantee provided to the proposed notes. Accordingly, the rating factors an uplift from financial and operational support expected from ANCAP. The parent has historically provided financing to its subsidiary, and also operating support through provision of raw materials and acquisition at market prices of some of Carboclor's products, such as MTBE to use on its own refinery in Uruguay. Moody's expects the parent to continue providing such support as needed. Also supporting the ratings is the company's strong position in core oxygenated solvents in the Argentinean market. Carboclor's liquidity profile is weak. Historically, the company's main sources of liquidity have been intercompany loans from its parent and uncommitted trade finance credit lines with local and international banks. The company does not maintain committed bank lending facilities but has long-established bank relationships. Moody's views the support Carboclor has received from its parent in recent years as a counterbalancing factor to its weak liquidity profile. In turn, ANCAP's B1 CFR is based on its Baseline Credit Assessment (BCA) of caa1, reflecting the moderate degree of correlation between factors that could lead to financial stress on ANCAP and the government of Uruguay (100% ownership) at the same time, and a high probability of extraordinary support from the government. The government of Uruguay's ability to provide support to ANCAP is measured by its Baa2 local currency rating with stable outlook. ANCAP's caa1 BCA reflects a weak stand-alone credit profile, derived mainly from the company's increased debt burden and persistent negative operating margins and cash generation. Because Uruguay does not have crude production, the company depends 100% on oil imports. In the last several years, the government of Uruguay had prevented ANCAP from passing on cost increases, especially of crude, to final prices, which caused losses and increase in debt. ANCAP's caa1 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. The stable outlook on Carboclor incorporates Moody's perception of continued support from its parent company going forward. It also reflects Moody's expectations that, during 2015, the company will be able to recover from the poor performance of the last couple of years. Moody's will closely monitor Carboclor's operating and financial results in the next few quarters. Moody's expects a substantial improvement in the company's profitability and longer term stabilization of its operating profits. If this scenario does not materialize and Carboclor is unable to efficiently apply cost controls, turn around the negative results in the last couple of years and margins continue deteriorating, the credit rating of Carboclor could be downgraded. An upgrade is unlikely in the near-term, given Carbloclor's weak operating metrics and business risks. Over the medium term, an upgrade would require that the company become a significantly larger and more diversified company, with demonstrated cost discipline and margin stability. A more balanced debt maturity profile would also be important for an upgrade. Quantitatively, a rating upgrade would require Carboclor's EBITDA margin to be consistently above 8% with less than 20% yearly variations. Carboclor is a 74% owned subsidiary ANCAP, Uruguay's state-owned oil company with a monopoly in refining and wholesale marketing within Uruguay and a dominant position in most other domestic markets in which it operates. The remaining 26% trades on the Buenos Aires stock exchange. Carboclor has been listed on the stock exchange since July 2004. The company generated USD107 million in revenues with an adjusted EBITDA margin of 1.34% for the last twelve months ended on March 31, 2015. ANCAP is Uruguay's state-owned oil company with a monopoly position in refining and dominant position in 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. =========== B R A Z I L =========== BRAZIL: Analysts See Worsening Economic Picture ----------------------------------------------- EFE News reports that analysts expect Brazil's economy to contract by 1.76 percent this year, marking its worst performance since 1990, with the inflation rate hitting 9.23 percent, the Central Bank said. The latest forecast is more pessimistic than the one released, when analysts said they expected the gross domestic product (GDP) to contract by 1.70 percent and inflation to come in at 9.15 percent, according to EFE News. The report notes that the GDP and inflation estimates come from the Boletin Focus, a weekly Central Bank survey of analysts from about 100 private financial institutions on the state of the national economy. Analysts' pessimism was fueled by the government's announcement that it would not meet the 1.1 percent primary fiscal surplus target it set for this year and that the goal was now to cut public spending by the equivalent of 0.15 percent of GDP, the report notes. The government plans to slash the budget by BRL8.6 billion ($2.66 billion), a move that will further slow economic activity and deepen the contraction, the report says. Brazil's economy grew by just 0.10 percent in 2014, the report adds. BTG INVESTMENTS: Fitch Affirms 'BB+' Long-term Currency IDRs ------------------------------------------------------------ Fitch Ratings has affirmed the ratings of Banco BTG Pactual S.A. (BTG Pactual) and its related parties: BTG Investments LP (BTGI) Banco Pan S.A. (PAN), Brazilian Finance & Real Estate S.A. (BFRE), Brazilian Mortgages Cia Hipotecaria (BM) and Brazilian Securities Cia de Securitizacao (BS) and of its holding company BTG Pactual Holding S.A. (BTGH). The Rating Outlook is revised to Stable from Positive. KEY RATING DRIVERS IDRS, VR, NATIONAL RATINGS AND SENIOR DEBT - BTG Pactual The affirmation of BTG Pactual's ratings reflects its strong company profile as a leading investment bank in Latin America, strong track record in terms of profitability, adequate funding and capital and also the challenges imposed by its business model (investment banking). Per Fitch's criteria, this type of business model is typically constrained to the 'bbb' rating category and normally cannot be rated above the sovereign rating of its home country. BTG Pactual's ratings also consider the inherent volatility of some of the bank's revenue sources, higher market risk exposure and wholesale funding nature. The revision of the Outlook to Stable from Positive reflects a change in Fitch's view on the acquisition of BSI S.A. (BSI), a private bank headquartered in Switzerland, due to the significant deterioration in Brazil's operating environment, which is not expected to recover until late 2016. While Fitch expects this transaction to bring sizable and stable fee revenue to the bank, enhancing recurring income and providing less volatile revenue streams to BTG Pactual, the current operating environment hinders the expected benefits that the integration of the BSI acquisition could provide. As such, Fitch acknowledges that such benefits and the preservation of the bank's profitability and leverage may take longer than the normal timeframe implied by a Positive Outlook. In 2014 and the first quarter of 2015 (1Q15), loan impairment charges increased significantly due to the deterioration of a few names on the bank's loan book. While the loan book is relatively small as a proportion of assets (11.7%), the credit costs from increased loan deterioration could consume a significant portion of the bank's net income. Exposures to sensitive issuers and industries are aligned with that of its closest peers and the bank has a good track record in this segment. Given the concentrated nature of its loan portfolio and the current operating environment challenges, Fitch doesn't rule out additional pressures on asset quality metrics, even though the agency recognizes management's hands on approach to identifying potential problems and its more conservative approach toward lending since late 2014. The decision to scale back the group's own holdings in both its proprietary trading funds and private equity investments should bode well for the bank in the future. These investments largely carried under BTG are prone to more volatility in spite of the strong accumulated performance of proprietary trading funds and that the bulk of the group's private equity investment are still in the investment phase. So while on one hand, the group's proprietary trading business (Global Markets) had a weak performance in 2014, which was attributed to a combination of losses in specific exposures, the bank's private equity business (Merchant Banking) announced the sale of part of its stake in the hospital chain Rede D'Or in the 1H15, which should offset the negative performance of its proprietary trading funds. Historically, these investments have yielded significant gains to the bank and contributed to overall results, although, given its nature such profits may be volatile and also with long periods of maturation. The bank's search for more stable revenue sources explains the importance of the expansion of its asset and wealth management business, which will directly benefit from the conclusion of the BSI acquisition. The acquisition is expected to add a higher degree of stability to the bank's performance even though cost synergies will likely be limited as BSI's structure and team should be maintained. The continuity of a strong internal capital generation and maintenance of a contained risk appetite should help the bank to maintain its leverage and its capitalization should remain within adequate levels. Additionally, Fitch views the diversification brought by BSI, which should account for roughly 35% of BTG's total assets, will be another positive reducing the bank's heavy concentration in Brazilian assets and also expanding their lower risk segments of operations. Fitch considers a successful execution of BTG Pactual's capital plan and budget goals as fundamental to maintain its Fitch Core Capital and Regulatory Capital Ratios as well as its leverage metrics within comfortable ranges, one of the sensitivities for upgrading its ratings. In addition to the recent issuance of tier 1 securities, management expects to preserve a good level of earnings retention and expand its equity through the issuance of shares equivalent to 20% of the acquisition price of BSI (to be generated at the group level); while also reducing the size of its proprietary trading and private equity own investments. BTG Pactual's sound management execution should allow it to absorb BSI operation and increase its earnings generation given BTG Pactual's strong asset origination from its Latin American investment banking platform. Over the last years, the bank has been able perform well with sound profitability along the economic cycles. The successful acquisition and integration of subsidiaries in Latin America, though much smaller than BSI, are also indicators of the bank's ability to augment its franchise value and business scope. As with any other acquisition, integrations risks are present and Fitch will monitor the developments related to the culmination of the transaction. Fitch expects an uneventful transition under BTG Pactual management, though this will be a challenge considering the size of the acquisition and the changing nature of the private banking business in Switzerland. Measured on a consolidated basis, BTG Pactual's capital and leverage ratios may temporarily deteriorate after the acquisition is completed. However, if management's plans are achieved, the bank should be able to reverse such trend and achieve a leverage ratio not significantly higher than its current one. The bank's net adjusted leverage ratio should move from the current 9.7x level to around 11.0x once the acquisition is completed; but it should decline to around 10.0x during the first year. Regulatory capital ratios remain ample and well above the minimum required, albeit, these are benefited by the low risk weight of its large portfolio of government securities. SUPPORT RATING AND SUPPORT RATING FLOOR BTG Pactual's Issuer Default Ratings (IDRs) are driven by its VR. Given its nature of merchant/investment bank and relative small deposit base; Fitch believes that the probability of support from the government is unlikely; hence its Support Rating is a '5' and its Support Rating Floor remains at 'NF'. SUBORDINATED DEBT AND OTHER SECURITIES BTG Pactual's subordinated debt issuances are all notched down twice from the banks' VRs, including one notch lower for loss severity features and its subordinated status, and a one-notch deduction due to moderate non-performance risk. Perpetual non-cumulative junior subordinated notes (T1 Securities) are four notches below BTG Pactual's VR. The notching comprises two notches for loss severity and two notches for nonperformance risk, which are Fitch's typical notching for loss severity and nonperformance risk of AT1 securities. These T1 securities receive 50% equity credit for the purposes of assessing capital adequacy. The subordinated debt and hybrid capital ratings are primarily sensitive to any change in the VR of the bank. SUBSIDIARIES AND AFFILIATED COMPANIES IDRs and National Scale Ratings- BTGI, BTGH, PAN, BFRE, BM, BS The IDRs and National Scale ratings of its related parties: BTGI PAN, BFRE, BM and BS are driven by the expected support from BTG. Under Fitch's rating criteria, these companies are considered 'strategically important' to the parent, and its ratings are notched once from BTG's IDR. PAN is a midsize bank owned by BTG (51%) and Caixa (49%), which share its control through a shareholders agreement.. Pan acts on the auto loans, payroll deductible loans and real estate. The bank also counts on a growing SME platform that focuses on companies with annual revenues ranging from BRL100 million to BRL1 billion and offers basic financial products, such as working capital loans, overdrafts, guarantees and trade finance loans. Brazilian Finance & Real Estate S.A. (BFRE) was acquired by Pan during 2012 and has since been consolidated in PAN's financial Statements. Brazilian Securities (BS), a subsidiary acquired as part of the Brazilian finance deal, is also active in the securitization of real estate operations, while Brazilian Mortgages (BM) is focused on home equity loans, a segment still largely unexplored in the Brazilian market. BTGI's long-term IDR rating reflects its role as an integral BTG Pactual group and the implicit support BTGI receives from BTGH. According to Fitch's criteria, BTGI is deemed as a core part of BTG Pactual Group. Despite its evident links with the group (franchise, common management, relevance of its revenue stream and completely aligned business model); BTGI is not a direct subsidiary of BTGH; hence, its rating its notched once from the rating of BTGH, the primary source of support to the entity. BTGH's long-and short-term IDRs and National Scale Ratings are equalized to those of its sole operating subsidiary, Banco BTG Pactual S.A.'s (BTG Pactual, IDR 'BBB-'/Outlook Stable). BTGH is a pure holding company and its long- and short-term IDR's and National Scale Ratings are equalized to those of BTG thanks to its moderate leverage levels and favorable regulatory framework towards financial groups in Brazil. BTGH is a pure holding company and directly controls 73.5% of BTG Pactual. The equalization of the ratings is based on the high correlation between the probability of default for BTGH and the bank. Both are incorporated in the same jurisdiction, being overseen by Brazilian authorities. PAN Viability Rating (VR) PAN's VR remains limited by its still weak operating performance, even though some improvements in asset quality have been observed. Counterbalancing these aspects, the bank enjoys a stable funding base, explained by committed funding and liquidity lines from both its shareholders and an improved business model, derived from the experience of the new management appointed by BTG since 2011. Weaker economic prospects may limit credit expansion in the short- term, and might cause the bank to revise its growth plans and adjust its structure to a more challenging operational environment. RATING SENSITIVITIES BTG Pactual - VR AND IDR BTG Pactual VR and IDRs may be upgraded if the bank is able to maintain its consolidated net adjusted leverage within an acceptable range (net adjusted leverage below 10.0x); maintain its operating ROAA above 2%, reflecting continued revenue growth in line with the expansion of its asset base and an uneventful integration of BSI which will become an important contributor of stable revenue sources. A possible upgrade may be tempered by a potential downgrade of Brazil's sovereign ratings ('BBB'/Negative Outlook). In turn, sudden deterioration of the operating environment, an increase of net leverage above 12x, a sustained deterioration of profitability below the average of large Brazilian banks or a troublesome performance of one or some of its subsidiaries may negatively affect BTG Pactual's ratings. SUBORDINATED DEBT AND OTHER SECURITIES The subordinated debt and hybrid capital ratings are primarily sensitive to any change in the VR of the bank. BTGI Changes to the rating of BTG Pactual or BTGH may lead to changes to BTGI's ratings. A material deterioration of BTGI's financial profile where sustained losses and/or a significant increase of its leverage may hinder the overall financial profile of BTG Group, may trigger a rating downgrade. BTGH Changes to the rating of BTG Pactual may lead to changes to BTGH's ratings. Also, an increase of its double leverage ratio above 120% or a deterioration of its debt service metrics may result in a downgrade of BTGH's ratings. PAN, BFRE, BM and BS PAN, BFRE, BM and BS are 'strategically important subsidiaries' for BTG Pactual and hence, notched once from the parent IDR. Fitch believes that despite its current relative small size and incipient earnings generation compared to the parent revenue source; these entities are part of the business plan of BTG Pactual and the tools to implement their diversification plans in the medium term towards consumer banking, real estate financing and other capital market related activities. The IDRs and National Scale Ratings of Banco Pactual subsidiaries may be affected if their strategic importance and ability to provide support from BTG Pactual changes; even though this scenario has a low probability of occurrence. PAN'S VR PAN's VR may be upgraded after a sustained improvement of its operational results (operating ROAA above 0.5%), that helps to maintain its Fitch Core Capital Ratio in levels superior to 7% and its funding profile remains aligned with the tenor and characteristics of its assets. A negative rating action may be triggered by a longer than expected breakeven point of its operations and a backdrop of capital ratios reducing to low levels. Fitch has taken the following rating actions: BTG Pactual -- Long-term foreign and local currency IDRs affirmed at 'BBB-', Outlook revised to Stable from Positive; -- Short-term foreign and local currency IDRs affirmed at 'F3'; -- Viability Rating affirmed at 'bbb-'; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at 'No Floor'; -- Long-term National Rating affirmed at 'AA(bra)', Outlook revised to Stable from Positive; -- Short-term National Rating affirmed at 'F1+(bra)'; -- Senior unsecured notes, due in March 2016, foreign currency rating affirmed at 'BBB-'; -- Senior unsecured notes, due in July 2016, foreign currency rating affirmed at 'BBB-'; -- Senior unsecured notes, due in September 2017, foreign currency rating affirmed at 'BBB-'; -- Senior unsecured notes due in January 2020, foreign currency rating affirmed at 'BBB-'; -- Senior unsecured notes due in January 2034, foreign currency rating affirmed at 'BBB-'; -- Subordinated notes due in September 2022, foreign currency rating affirmed at 'BB'. -- Perpetual non-cumulative junior subordinated notes, foreign currency rating affirmed at 'B+'. BTGI -- Long-term foreign and local currency IDRs affirmed at 'BB+'; Outlook revised to Stable from Positive; -- Support Rating affirmed at '2'; -- Senior guaranteed notes affirmed at 'BBB-'. BTGH -- Long-term foreign and local currency IDRs affirmed at 'BBB-'; Outlook revised to Stable from Positive; -- Short-term foreign and local currency IDRs affirmed at 'F3'; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at 'NF'; -- Long-term National Rating affirmed at 'AA(bra)'; Outlook Revised to Stable from Positive; -- Short-term National Rating affirmed at 'F1+(bra)'. PAN -- Long-term foreign and local currency IDRs affirmed at 'BB+', Outlook revised to Stable from Positive; -- Short-term foreign and local currency IDRs affirmed at 'B'; -- Viability Rating affirmed at 'b'; -- Support Rating affirmed at '3'; -- Long-term National Rating affirmed at 'AA-(bra)', Outlook revised to Stable from Positive; -- Short-term National Rating affirmed at 'F1+(bra)'. BFRE -- Long-term foreign and local currency IDRs affirmed at 'BB+', Outlook revised to Stable from Positive; -- Short-term foreign and local currency IDRs affirmed at 'B'; -- Long-term National Rating affirmed at 'AA-(bra)', Outlook revised to Stable from Positive; -- Short-term National Rating affirmed at 'F1+(bra)'. BM -- Long-term foreign and local currency IDRs affirmed at 'BB+', Outlook revised to Stable from Positive; -- Short-term foreign and local currency IDRs affirmed at 'B'; -- Long-term National Rating affirmed at 'AA-(bra)', Outlook Revised to Stable from Positive; -- Short-term National Rating affirmed at 'F1+(bra)'. BS -- Long-term foreign and local currency IDRs affirmed at 'BB+', Outlook revised to Stable from Positive; -- Short-term foreign and local currency IDRs affirmed at 'B'; -- Long-term National Rating affirmed at 'AA-(bra)', Outlook revised to Stable from Positive; -- Short-term National Rating affirmed at 'F1+(bra)'. MRS LOGISTICA: S&P Affirms 'BB+' Global Scale Rating ---------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' global scale ratings and 'brAA+' Brazilian national scale ratings on MRS Logistica S.A. (MRS) and its debt. The outlook remains stable. The ratings on MRS reflects its stable business model, with high predictability of its main cargoes (iron ore), long-term contracts with its main clients, with minimum volumes (take-or-pay) and fuel cost pass-through clauses that support the company's strong and stable cash generation. The rating weakness is MRS's somewhat high annual capex needs to maintain its efficient operations, which it usually funds partly through new debt issuances. MRS remains the most efficient railroad operator in Brazil, with an operating ratio of about 68% (operating costs and expenses, including depreciation, as a percentage of revenues), compared with 75%-95% for its regional peers. Despite the sharp drop in iron prices, MRS's transport volumes have remained stable because the iron ore producers that MRS services are highly competitive. Nevertheless, as the low prices persist, S&P expects several mine closures in 2016, which should reduce MRS's transported iron ore levels by about 4% compared with 2015. Volumes, not commodities prices, affect MRS's revenues. In the intermediate term, S&P expects MRS to diversify loads into agricultural commodities, steel, and cement, although weak macroeconomic conditions in the region may diminish steel and cement demand. To fund its growth, MRS has historically relied on debt, but its incremental cash flows improved its leverage metrics over the years. Furthermore, MRS can postpone or cut its capex if necessary. Under S&P's base-case scenario, the company would continue to access the debt markets mainly for refinancing purposes because it can fund its lower investment levels through internal cash generation. ========================== C A Y M A N I S L A N D S ========================== BREEZE HOLDING: Shareholder to Hear Wind-Up Report on Aug. 14 ------------------------------------------------------------- The shareholder of Breeze Holding Corp. will hear on Aug. 14, 2015, at 9:00 a.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 CENTURY ASSETS: Shareholders' Final Meeting Set for Aug. 10 ----------------------------------------------------------- The shareholders of Century Assets Limited will hold their final meeting on Aug. 10, 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: Trident Liquidators (Cayman) Ltd. 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 FOUNDATION RE III: Shareholder to Hear Wind-Up Report on Aug. 6 --------------------------------------------------------------- The shareholder of Foundation RE III Ltd. will hear on Aug. 6, 2015, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Kevin Poole Edward Bodden Telephone: 914-2265/ 914-2250 Facsimile: 949-6021 PO Box 10233 171 Elgin Avenue, George Town Willow House, 3rd Floor, Cricket Square Grand Cayman KY1-1002 Cayman Islands GENPOWER HOLDINGS: Shareholders' Final Meeting Set for July 29 -------------------------------------------------------------- The shareholders of Genpower Holdings GP, Ltd. will hold their final meeting on July 29, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at the First Reserve Corporation at One Lafayette Place, Third Floor in Greenwich, Connecticut, 06830, USA. William R. Brown is the company's liquidator. GS PEP 1999: Members' Final Meeting Set for July 31 --------------------------------------------------- The members of GS PEP 1999 Offshore Advisors, Inc. will hold their final meeting on July 31, 2015, at 2:20 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 LAXEY LIMITED: Members' Final Meeting Set for Aug. 10 ----------------------------------------------------- The members of Laxey Limited will hold their final meeting on Aug. 10, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands LONGACRE SPV i: Shareholders' Final Meeting Set for July 30 ----------------------------------------------------------- The shareholders of Longacre SPV i, Ltd. will hold their final meeting on July 30, 2015, at 9:30 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 Peter Goulden 94 Solaris Avenue Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands MIDPOINT LIMITED: Members' Final Meeting Set for Aug. 3 ------------------------------------------------------- The members of Midpoint Limited will hold their final meeting on Aug. 3, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands NIMUE LEASING: Shareholder to Hear Wind-Up Report on July 29 ------------------------------------------------------------ The sole shareholder of Nimue Leasing Limited will hear on July 29, 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: Phang Thim Fatt 8 Shenton Way #18-01 Singapore 068811 PLATINUM ARBITRAGE: Shareholder to Hear Wind-Up Report on July 29 ----------------------------------------------------------------- The shareholder of Platinum Arbitrage Opportunities Fund Limited will hear on July 29, 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: Platinum Trading Management Ltd. c/o Piers Dryden Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 ========= C H I L E ========= AES GENER: S&P Affirms 'BB' Rating on Jr. Subordinated Bonds ------------------------------------------------------------ Standards & Poor's Ratings Services affirmed its 'BBB-' corporate credit and senior unsecured ratings on AES Gener. S&P also affirmed its 'BB' rating on its junior subordinated bonds due 2073. The outlook remains stable. The affirmation reflects S&P's view that AES Gener will continue to generate stable and strong cash flows in the upcoming years, while maintaining its main credit metrics at least at the current levels. In 2014 and the first quarter of 2015, the company's EBITDA continued strengthening thanks to the greater availability of its plants, the full-year operations of some recently incorporated projects, and higher spot sales volumes with better prices. The construction of the projects is on schedule: Cochrane was 84% complete as of March 2015; Alto Maipo (16%); and Guacolda V (more than 95%). As a result, the company's main credit metrics remained in line with our projections. S&P's view of AES Gener's business risk profile continues to be "satisfactory," reflecting the company's strong market position in Chile as a large, efficient, and reliable power generator with large long-term power purchase agreements (PPAs) with solid offtakers; its business diversification due to its presence in Colombia and Argentina; and its good operating performance. S&P assess AES Gener's financial risk profile as "intermediate" mainly based on its relatively strong and stable cash flow generation and main credit metrics. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Must Build More Dams to Deal With Water Crises ------------------------------------------------------------------ Dominican Today reports that the Dominican Republic government's medium and long term plans to conserve water for human consumption and agriculture must include construction of more dams, ponds, and reconstruction of reservoirs and irrigation canals. Dominican Milk Producers Association (Aproleche) President Eric Rivero and Agribusiness Board Chief Executive Officer Osmar Benitez agree that authorities should find ways to conserve water and confront climate change, which they blame for the drought across the country, according to Dominican Today. The report notes that President Rivero said new dams will not only conserve water but also supply energy and ensure supply to farms. He said despite that the current drought was forecast since last year, the authorities "did little to address it." Change of Model The report notes that Mr. Benitez said the government needs to spend on new dams, micro dams, ponds, reservoirs and other ways to store water. The report says that Mr. Benitez said farms areas in Peravia, Azua and San Juan provinces (south) need to build at least 10 giant reservoirs, five in the northwest, and others in the east region. Mr. Benitez also urged the government to work with farmers and banks to fund change from the normal irrigation model into a pressurized or drip system, the report adds. ============= J A M A I C A ============= DIAGEO: US SEC Starts Probe on Distribution Activities in America ----------------------------------------------------------------- RJR News reports that spirits maker Diageo is facing a probe by the US Securities & Exchange Commission (SEC) into its distribution activities in America. Diageo has a controlling interest in Desnoes & Geddes, according to RJR News. According to US media reports, Diageo is alleged to have sent more cases of alcohol to its clients than they required, allowing the company to report higher sales and shipments, the report relates. Diageo confirmed that it received a SEC inquiry and is working to respond fully to the Commission's requests for information, the report notes. Sales in the US have been falling since 2011, the report says. The inquiry comes at a sensitive moment for Diageo. In the second half of last year the world's biggest distiller of Scotch whisky reported a sharp fall in sales in some of its key markets, the report adds. JAMAICA: Oil Price Plunging Again --------------------------------- RJR News reports that the price of oil fell to a four-month low on July 27, influenced by continued fears that stock market issues in China could hit demand for the fuel in that country. Oil for delivery in September closed trading at a price of US$47.39 a barrel, according to RJR News. That's down 75 cents from July 24. At current prices, oil is the lowest it has been since late March, the report adds. JAMAICA: Fitch Puts 'B-' Sr. Unsec. Debt Rating to USD2.0BB Bond ---------------------------------------------------------------- Fitch Ratings has assigned 'B-' senior unsecured debt ratings to Jamaica's USD1.35 billion in bonds maturing on 28 April 2028 and USD650 million of bonds maturing on 28 July 2045. The government will use the proceeds to finance the buyback of bilateral sovereign external debt accumulated under the Petrocaribe concessional financing programme, and for budget financing. KEY RATING DRIVERS Jamaica's 'B-' rating is driven by its very high government debt burden, low growth, and fragile but improving external finances. The Outlook on the rating is Positive, as the government continues broadly to adhere to fiscal targets agreed with the IMF under a three-year Extended Financing Facility, the current account deficit has narrowed and there are signs of improved business confidence and growth prospects. RATING SENSITIVITIES The rating would be sensitive to any changes in the Jamaica's long-term foreign currency Issuer Default Rating (IDR). Fitch upgraded Jamaica's long-term foreign-currency IDR to 'B-' in February 2014 and revised the Outlook on the ratings to Positive from Stable in February 2015. JAMAICA: S&P Assigns 'B' Issue Rating to US$2BB Bonds ----------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' issue rating on Jamaica's up to US$2 billion in bonds issued in two tranches. The first tranche is for up to US$1,350 million due in 2028. The second tranche is for up to US$650 million due in 2045. The government will use the proceeds to purchase debt that Jamaica owes to Venezuela as well as to finance the government's 2015/2016 budget. S&P's 'B/B' sovereign credit ratings on Jamaica reflect its high level of general government debt and interest burden, which contributes to fiscal and monetary inflexibility. The country's weak economic structure, with a projected GDP per capita of about US$5,000 in 2015 and average negative GDP per capita growth of 0.4% annually over the past 10 years, increases its vulnerability to adverse economic developments. Jamaica also remains vulnerable to hurricanes because of its location in the hurricane belt. That said, Jamaica has met its challenging fiscal targets over the past two years, strengthening its fiscal credibility and stabilizing its debt trajectory. Jamaica's high primary surpluses of about 7.5% of GDP could lead to a gradual decline in its general government debt to less than 120% of GDP by 2018 from an estimated 128% this year. (Standard & Poor's deducts debt held by the public-sector National Insurance Fund.) The country's growing track record in meeting its fiscal targets also ensures continued inflows of official and other funding, strengthening the country's external outlook. The ratings also reflect Jamaica's stable democracy and open political system that sustain political stability and policy predictability. The government, led by Prime Minister Portia Simpson-Miller of the People's National Party, has a majority in Parliament and does not need to face elections until late 2016. RATINGS LIST Jamaica Sovereign Credit Rating B/Stable/B New Rating Jamaica US$1,350 mil. bonds due 2028 B US$650 mil. bonds due 2045 B =========== M E X I C O =========== PETROLEOS MEXICANOS: To Export 6 Million Barrels of Oil to Japan ---------------------------------------------------------------- EFE News reports that Mexican state-owned oil company Petroleos Mexicanos said it has reached an agreement to export 6 million barrels of crude to Japanese petroleum group JX Nippon Oil & Energy Corporation between August 2015 and January 2016. The shipment of light Isthmus crude will be carried out via six cargoes from the Salina Cruz Maritime Terminal in the southern state of Oaxaca, Pemex said in a statement obtained by the news agency. The contract is in addition to some 4 million barrels of occasional oil shipments delivered to JX Nippon during the first half of the year, the bulletin added, according to EFE News. The Japanese company has the capacity to process 1.3 million barrels per day at its seven refineries in Sendai, Kashima, Negishi, Osaka, Mizushima, Marifu and Oita, the report notes. "These operations help consolidate Mexico as an important crude supplier in the Far East," a region with strong growth levels and where Pemex offers a supply alternative through contracts with refinery companies in China and South Korea, the oil producer said, the report adds. As reported in the Troubled Company Reporter-Latin America on May 8, 2015, EFE News said that Petroleos Mexicanos, or Pemex, plans to not replace between 2,000 and 3,000 retiring workers in an effort to cut costs amid low oil prices, the state-owned energy company's chief financial officer, Mario Beauregard, said. The workers have met the requirements to retire -- age 55 and 25 years of service -- and will be leaving the company over the next few months, the CFO told Radio Formula, according to EFE News. ====================== P U E R T O R I C O ====================== PETER WOJTKUN: Bid to Dismiss Suit vs. Wojtkun Partially Granted ---------------------------------------------------------------- Judge William C. Hillman of the United States Bankruptcy Court for the District of Massachusetts, Eastern Division, granted in part and denied in part the motion to dismiss the case captioned JOSEPH G. BUTLER, TRUSTEE, Chapter 7, Plaintiff v. PETER WOJTKUN, SUSAN WOJTKUN, INDIVIDUALLY AND AS TRUSTEE OF THE SUSAN R. WOJTKUN LIVING TRUST, AND S.R.W. REALTY CORP., Defendants, ADVERSARY PROCEEDING CASE NO. 15-1016 (Bankr. D. Mass.). On January 13, 2015, the Trustee filed an adversary proceeding against Peter Wojtkun, his wife, Susan Wojtkun, individually and as trustee of the Susan R. Wojtkun Living Trust, and S.R.W. Realty Corp. The Defendants sought to dismiss 13 counts of the Trustee's complaint through which he sought: (1) a declaration that a resulting trust exists for an interest in the sale proceeds of real property in Georgetown, Massachusetts that Susan sold in 2014; (2) a declaration that a constructive trust exists for an interest in the sale proceeds of the Georgetown Property; (3) a declaration that a resulting trust exists in a condominium S.R.W. Realty Corp. holds title to in Puerto Rico; (4) a declaration that a constructive trust exists in the Condominium; (5) avoidance of transfers of income from the Debtor to Susan as actual fraud pursuant Section 548(a)(1)(A) of the Bankruptcy Code; (6) avoidance of transfers of income from the Debtor to Susan as constructive fraud pursuant to Section 548(a)(1)(B)(ii)(I); (7) avoidance of transfers of income from the Debtor to Susan as constructive fraud pursuant to Section 548(a)(1)(B)(ii)(IV); (8) avoidance of transfers of income from the Debtor to Susan pursuant to Mass. Gen Laws ch. 109A, Section 5(a)(1); (9) avoidance of transfers of income from the Debtor to Susan pursuant to Mass. Gen. Laws ch. 109A, Section 6(a); (10) avoidance of transfers of income from the Debtor to Susan pursuant to Mass. Gen. Laws ch. 109A, Section 6(b); (11) avoidance of transfers of income from the Debtor to Susan pursuant to Section 547(b); (12) equitable reach and apply of the Debtor's interest in the Condominium and the Georgetown Property or their sale proceeds; and (13) damages for grossly excessive compensation through a shareholder derivative action on behalf of Peter Wojtkun DMD P.C. against Susan for aiding and abetting a breach of fiduciary duty and unjust enrichment. The bankruptcy case is IN RE: PETER WOJTKUN, Chapter 7, DEBTOR, CASE NO. 13-12719-WCH (Bankr. D. Mass.). In a July 20, 2015 memorandum of decision, a copy of which is available at http://is.gd/CFgPGSfrom Leagle.com, Judge Hillman entered an order granting the Motion to Dismiss as to Counts II, III, IV, X, and XI, and denying it as to Counts I, V, VI, VII, VIII, IX, XII, and XIII. Joseph G. Butler is represented by: James M. Liston, Esq. HACKETT, FEINBERG, P.C. 155 Federal Street, 9th Floor Boston, MA 02110 Tel: (617) 422-0200 Fax: (617) 422-0383 Email: jml@bostonbusinesslaw.com Susan Wojtkun and S.R.W. Realty Corp. are represented by: John W. Moran, Esq. LECLAIR RYAN, P.C. One International Place, Eleventh Floor Boston, MA 02110 US Tel: (617) 502-8200 Fax: (617) 502-8201 Email: john.moran@leclairryan.com Peter Wojtkun is represented by: John F. Sommerstein, Esq. LAW OFFICES OF JOHN F. SOMMERSTEIN 98 N Washington St., Suite 104 Boston, MA 02114 Tel: (617) 523-7474 Fax: (617) 523-7484 ================= V E N E Z U E L A ================= VENEZUELA: Won't Escape Default in '16, Harvard Professor Now Says ------------------------------------------------------------------ Bloomberg News reports that Harvard University Professor Ricardo Hausmann last year questioned Venezuela's decision to keep paying bondholders as the country sank deeper into crisis and suggested it stop honoring the debt. Now, he's saying Venezuela will have no choice but to default next year, Bloomberg News relates. The report notes that Mr. Hausmann's comments come as a deepening collapse in oil prices and a shortage of dollars stoke concern Venezuela is fast running out of money to stay current on debt. The country's bonds plunged last year after Mr. Hausmann, who served as Venezuelan planning minister after Hugo Chavez's failed 1992 coup, raised the specter of default, saying he found "no moral grounds" for the government to pay debt at a time when Venezuelans were facing shortages of everything from basic medicine to toilet paper, Bloomberg News relates. "The markets have been right in saying this is a completely unsustainable situation," Mr. Hausmann, director of Harvard's Center for International Development, told Bloomberg News by phone from Madrid. "It's not that the government will plan to default. I think they will just stumble into one. They may get over the October payments but nobody's thinking they'll get over the 2016 payments," Mr. Hausmann added. Venezuela and its state oil company have about $5.6 billion in bond payments due in the last three months of this year and about $10 billion in 2016, according to Bank of America Corp. estimates, Bloomberg News says. Trading in credit-default swaps show an implied probability of default of 96 percent over the next five years, the highest in the world, CMA data show, Bloomberg News 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 * * *