/raid1/www/Hosts/bankrupt/TCRLA_Public/150903.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, September 3, 2015, Vol. 16, No. 174
Headlines
A R G E N T I N A
BUENOS AIRES: Moody's Retains (P)Caa1 Rating on Program Increase
B R A Z I L
DAIMLER AG: Agrees to Cut Hours at Brazil Plants to Avoid Layoffs
JBS SA: Closes in on Australasia
MMX SUDESTE: Trafigura Beheer to Buy Batista's Iron Assets
OAS SA: To Meet U.S. Creditors This Week on Restructuring Plan
TONON BIOENERGIA: S&P Affirms 'CCC-' Corp. Rating; Outlook Stable
C A Y M A N I S L A N D S
AFRICA HORIZONS: Members' Final Meeting Set for Sept. 17
AHLI INVESTMENT: Shareholder Receives Wind-Up Report
AMERICAN MEDICAL: Shareholders Receive Wind-Up Report
BEDROCK BRAZIL: Members Receive Wind-Up Report
BEDROCK BRAZIL FEEDER: Members Receive Wind-Up Report
CANALI INVESTMENT: Creditors' Proofs of Debt Due Sept. 14
CS CAPITAL: Members Receive Wind-Up Report
CS STRUCTURED: Members Receive Wind-Up Report
FRAMMA INTERNATIONAL: Creditors' Proofs of Debt Due Sept. 14
OLD PARK: Shareholder to Hear Wind-Up Report on Sept. 3
SSS HOLDINGS: Members Receive Wind-Up Report
SUNAC CHINA: 1H 2015 Results Support B1 CFR, Moody's Says
SYMPHONY CLO: Members' Final Meeting Set for Sept. 17
TURCHIA SECONDA: Creditors' Proofs of Debt Due Sept. 14
WEST GATE: Creditors' Proofs of Debt Due Sept. 7
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Central Bank Keeps Benchmark Rate at 5.0%
DOMINICAN REPUBLIC: Haiti-Dominican Border Market Back to Normal
M E X I C O
CONNIE STEVENS: To Emerge from Bankruptcy With Millions
INDUSTRIAS UNIDAS: Incurs MXN801.8MM Net Loss in 6Mo Ended June 30
RASSINI AUTOMOTRIZ: Fitch Affirms 'B+' Issuer Default Ratings
P U E R T O R I C O
BANCO POPULAR: Moody's Lowers LT Bank Deposit Rating to Ba2
PUERTO RICO ELECTRIC: Said to Reach Tentative Debt Agreement
X X X X X X X X
LATIN AMERICA: Corp. Defaults Rose in Past Year, Moody's Says
- - - - -
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A R G E N T I N A
=================
BUENOS AIRES: Moody's Retains (P)Caa1 Rating on Program Increase
----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo said that
the (P)Caa1 - Global Scale local currency and Baa1.ar -
Argentina's National Scale ratings to the City of Buenos Aires's
2015 Short-Term Treasury Bills Program remain unchanged after the
increased amount of this program to ARS2,900 million from ARS1,900
million and in line with the City's long term local currency debt
ratings, which carry negative outlook.
RATINGS RATIONALE
The 2015 program, authorized by laws N§5.239 and 5.349 considers
now a maximum issuance of ARS2,900 million, which represents
approximately 3.5% of the City's 2015 expected total revenues vis
a vis 2.3% before.
This announcement reflects Moody's view that the willingness and
capacity of the City of Buenos Aires to punctually honor these
short-term treasury bills is in line with its current Caa1/Baa1.ar
debt ratings in local currency. The bills to be issued within
this expanded Program, will also carry the same terms and
conditions of the outstanding debts.
Moody's has based its analysis on preliminary documentation
received by Moody's to date. Moody's does not expect changes to
the documentation reviewed over this period or anticipates changes
in the main conditions that the notes will carry. Should issuance
conditions and/or final documentation of any of the series under
this program deviate from the original ones submitted and reviewed
by the rating agency, Moody's will assess the impact that these
differences may have on the ratings and act accordingly.
WHAT COULD CHANGE THE RATING UP/DOWN
Given the negative outlook on the City's ratings, Moody's does not
expect upward pressures in the City of Buenos Aires's ratings in
the near to medium term. However, a change in Argentina's
sovereign outlook back to stable could lead to a change in the
outlook back to stable of the City of Buenos Aires. Conversely, a
sharp deterioration of the City's financial results, coupled with
higher debt levels could add downward pressure to the assigned
ratings. The City of Buenos Aires could also be downgraded if the
negative outlook on the sovereign rating materializes into a
rating downgrade.
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B R A Z I L
===========
DAIMLER AG: Agrees to Cut Hours at Brazil Plants to Avoid Layoffs
-----------------------------------------------------------------
EFE News reports that German automaker Daimler AG said it would
reduce work hours at its plant in Sao Bernardo, Brazil, as it did
at factories in Germany in 2009, to avoid job cuts.
The 1,500 planned layoffs announced last week at the plant in
Brazil's Sao Paulo state are being rescinded, the automaker said,
according to EFE News.
Hours at the Sao Bernardo do Campo plant, which makes industrial
vehicles, will be slashed by 20 percent due to weak truck sales in
Brazil, Daimler AG said, the report notes.
The report relays that the government will compensate workers for
half of the lost wages, which amount to a 20 percent pay cut.
Workers also gave up the cost of living adjustment for 2016
previously agreed to with the company, the report discloses.
The deal takes effect on Sept. 1 and runs until May 2016,
preventing the job cuts that Daimler AG had announced, the report
relays.
Truck sales plunged 44 percent in Brazil during the first half of
the year, with Daimler's truck division posting a similar drop,
the report notes.
German truckmaker MAN, a unit of Volkswagen, posted a loss of
EUR46 million ($51.8 million) in the first half, down from a
profit of EUR92 million ($103.7 million) in the same period in
2014, due to the recession in Brazil, the report discloses.
MAN's orders fell 50 percent in Latin America in the January-June
period to EUR593 million ($668.8 million) due to Brazil's economic
woes, the report adds.
JBS SA: Closes in on Australasia
--------------------------------
Bridget Carter & Gretchen Friemann at Business Spectator report
that Brazil's JBS SA is closing in on Australasia, with the
company being named as a potential suitor for three of the
region's agricultural and consumer assets, up for almost AUD1.5
billion collectively.
JBS SA is considering a purchase of the NZ$1 billion (AUD904
million) New Zealand poultry company Tegel Foods, according to
Business Spectator.
The report notes that it's owned by Affinity and up for grabs via
a trade sale or public listing through advisers Goldman Sachs and
Deutsche.
The news comes as the company is also rumored to be among the
final candidates competing for the Kidman Family's sprawling
Australian pastoral empire, which could sell for AUD325 million,
and the NZ$400 million Silver Fern Farms meat processing center in
New Zealand's South Island, which is also subject to a Goldman
Sachs process, the report relays.
Sources said that Thai conglomerate Charoen Pokphand Group is also
circling Tegel, the report discloses.
However, some view the target as a more logical initial public
offering candidate for both the New Zealand and Australian listed
markets than a trade sale, the report notes.
Affinity is expected to start testing market appetite for a float
via a non-deal roadshow within days, with the likelihood that the
buyout firm will attempt to raise between AUD400 million and
AUD500 million for an initial public offering, the report says.
Tegel, which owns four major processing facilities, is involved
with the hatching, processing, marketing and distribution of
poultry products across both the North and South Islands, the
report notes.
Tegel was sold to Affinity by Pacific Equity Partners in 2011,
reportedly for NZ$600 million, the report adds.
As reported in the Troubled Company Reporter-Latin America on
June 24, 2015, Standard & Poor's Ratings Services said that it has
affirmed its 'BB+' global scale corporate credit and issue-level
ratings on JBS S.A. and its subsidiary, JBS USA. S&P also
affirmed its 'brAA+' national scale rating on JBS. The outlook
for all corporate ratings remains positive.
MMX SUDESTE: Trafigura Beheer to Buy Batista's Iron Assets
----------------------------------------------------------
Juan Pablo Spinetto at Bloomberg News reports that commodities
trading firm Trafigura Beheer BV plans to buy iron-ore assets from
former billionaire Eike Batista as a port it controls with
Mubadala Development Co. in Rio de Janeiro starts shipments.
Trafigura Beheer will acquire two mining and iron-ore processing
plants from Batista's MMX Sudeste Mineracao SA after creditors
accepted an offer as part of the Brazilian company's bankruptcy
protection plan, the company said in an e-mail, according to
Bloomberg News. The purchase, which involves MMX's Tico-Tico and
Ipe projects at the Minas Gerais state in southeastern Brazil, is
subject to certain conditions, said Amsterdam-based Trafigura,
without disclosing financial terms, the report notes.
"Trafigura and its subsidiaries operate in the ferrous mining
sector and these assets represent an opportunity to expand its
businesses, as well as complement the joint investment with
Mubadala at the Sudeste port," the company said in the statement
obtained by the news agency.
Trafigura and Mubadala, an Abu Dhabi sovereign wealth fund, bought
a controlling stake in the company developing the port in Rio
state last year from Batista, which developed the project,
Bloomberg News relates. The port will allow iron ore mined in
landlocked Minas Gerais to be exported to Asia and Europe. The
facility, located about 90 kilometers (56 miles) west of downtown
Rio, is loading a first 80,000 metric-ton iron-ore vessel bound
for China, Trafigura said in a separate statement, Bloomberg News
says. The company initially expected to start operations in
August 2014, almost a three-year delay from Batista's most
optimistic estimates, Bloomberg News discloses.
Bloomberg News relates that a second shipment of iron ore from
Sudeste is scheduled for September, Trafigura said, adding that it
expects to double the nominal capacity of the terminal to 50
million metric tons by the end of the year.
Creditors of MMX Sudeste, which filed for bankruptcy protection in
October after a collapse in iron-ore prices, approved a
reorganization plan Aug. 28, the company said in a filing,
Bloomberg News relates. The unit is one of the four startups
founded by Batista in the last decade that ended up seeking
protection from creditors amid mounting debt and missed targets,
after the tycoon's $30 billion-plus commodities empire collapsed
in 2013, Bloomberg News adds.
OAS SA: To Meet U.S. Creditors This Week on Restructuring Plan
--------------------------------------------------------------
Jonathan Levin at Bloomberg News reports that OAS SA, the
Brazilian builder that requested bankruptcy protection this year
with more than BRL9 billion ($2.5 billion) in debt, plans to visit
with creditors in New York to discuss its restructuring plan,
according to a person with knowledge of the matter.
The builder is trying to iron out details of a proposal to present
Sept. 22 at the creditors' general assembly, said the person,
according to Bloomberg News.
Bloomberg News notes that OAS SA is in the advanced stages of
efforts to sell oil, gas and water-treatment assets, while it
continues to work with its advisers to define a structure for the
sale of the Gremio soccer stadium, the person said.
The company is also planning to sell its 24 percent stake in
airport and tollroad operator Invepar, the biggest OAS asset
currently on the block, Bloomberg News relates. OAS SA said on
its website this month that it's reopening the data room -- a
digital collection of documents where would-be bidders can conduct
due diligence. Brookfield remains in the running for the asset,
Asset Management Inc. even though the reopening means it's no
longer in exclusive talks, the person said, Bloomberg News notes.
Bloomberg News relates that OAS SA and many of its Brazilian
construction peers have seen financing dry up after prosecutors
accused executives of paying kickbacks to state-run companies and
politicians to win contracts. The scandal has crippled an
industry that accounts for hundreds of thousands of jobs in Latin
America's biggest economy, Bloomberg News notes. The scandal and
subsequent collapse of some companies have also led some to
question -- like the U.S. did during the financial crisis --
whether the builders are too big to allow to fail.
About OAS S.A.
The OAS Group is among the largest and most experienced
infrastructure companies in Brazil, focusing on heavy engineering
and equity investments in infrastructure projects located in and
outside Brazil and abroad for both public and private clients.
The OAS Group provides services in 22 countries in Latin America,
the Caribbean and Africa.
Based in Sao Paulo, Brazil, OAS S.A. is the holding company at the
apex of the OAS Group. Its share capital is divided between CMP
Participacoes Ltda. (owned by Mr. Cesar de Araujo Mata Pires),
which has a 90% stake, and LP Participacoes e Engenharia Ltd.
(owned by Mr. Jose Adelmario Pinheiro Filho, which has a 10%
stake.
Amid an investigation into alleged corruption and money
laundering, and missed interest payments, OAS S.A. and its
affiliates Construtora OAS S.A., OAS Investments GmbH, and OAS
Finance Limited on March 31, 2015, commenced judicial
reorganization proceedings before the First Specialized Bankruptcy
Court of Sao Paulo pursuant to Federal Law No. 11.101 of February
9, 2005 of the laws of the Federative Republic of Brazil.
On April 15, 2015, OAS S.A., et al., filed Chapter 15 bankruptcy
petitions (Bankr. S.D.N.Y. Lead Case No. 15-10937) in Manhattan,
in the United States to seek U.S. recognition of the Brazilian
proceedings. Renato Fermiano Tavares, as foreign representative,
signed the petitions. The cases are assigned to Judge Stuart M.
Bernstein. White & Case, LLP, serves as counsel in the U.S. cases.
OAS S.A. listed at least US$1 billion in assets and liabilities.
TONON BIOENERGIA: S&P Affirms 'CCC-' Corp. Rating; Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'CCC-'
global scale corporate ratings on Tonon Bioenergia S.A. The
outlook remains stable. S&P has also affirmed the 'CCC-' ratings
on the senior secured bond and the 'CC' rating on the remaining
amount outstanding on its senior unsecured debt. S&P has also
revised the recovery rating on the secured bond to '4H' from '3L',
and affirmed the senior unsecured recovery rating at '5H'. S&P
removed all ratings from CreditWatch Positive.
The stable outlook reflects S&P's belief that the recent bond
restructuring and new loan gave Tonon some financial flexibility
that, in S&P's view, would enable it to meet interest payments in
the next six months. The additional flexibility stems from the
company's choice to accrue interest payments in the restructured
unsecured bond--which can help it to save up to Brazilian real
(R$) 100 million per year for its cash flows. Also, S&P assumes
low capex levels could increase FOCF, but could also damage
plantations for the next few harvests and would likely weaken its
business profile in the future. The current ratings also reflect
S&P's view that, absent positive financial or business conditions
that would help Tonon to extend its debt maturity profile and
acquire new funding (enabling it to reach an adequate capex
level), Tonon's ability to meet its financial obligations could be
unsustainable in a short term, which could reduce its willingness
to continue servicing its forthcoming debt service.
S&P could upgrade the ratings if Tonon is able to refinance its
short term debt maturities and build a longer-term funding
structure that would enable it to better invest in its sugarcane
fields. At the same time, Tonon would need to gradually increase
FOCF generation to meet interest payments and start to amortize
debt.
S&P could take a negative rating action in the absence of
favorable business, financial, or economic conditions, which could
likely trigger an event of default in Tonon's debt obligations in
the next 12 months. This would occur if the company is not able
to gradually extend its debt maturities and increase FOCF to meet
interest payments and invest adequate levels of capex to sustain
the productivity of the sugarcane fields.
==========================
C A Y M A N I S L A N D S
==========================
AFRICA HORIZONS: Members' Final Meeting Set for Sept. 17
--------------------------------------------------------
The members of Africa Horizons Manager Limited will hold their
final meeting on Sept. 17, 2015, at 4:00 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
c/o Nicola Cowan
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor,
P.O. Box 1344, Grand Cayman KY1-1108
Cayman Islands
AHLI INVESTMENT: Shareholder Receives Wind-Up Report
----------------------------------------------------
The shareholder of AHLI Investment Services Company Limited
received on Aug. 31, 2015, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
K.D. Blake
c/o Georgina Lowry
Telephone: (345) 914-4398/ (345) 949-4800
Facsimile: (345) 949-7164
P.O. Box 493 Grand Cayman KY1-1106
Cayman Islands
AMERICAN MEDICAL: Shareholders Receive Wind-Up Report
-----------------------------------------------------
The shareholders of American Medical Group Insurance Company, Ltd.
received on Aug. 31, 2015, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Strategic Risk Solutions (Cayman) Limited
North Building, 2nd Floor, Caribbean Plaza
878 West Bay Road
P.O. Box 1159 Grand Cayman KY1-1102
Cayman Islands
Telephone: +1 (345) 623 6611
Facsimile: +1 (345) 946 6612
BEDROCK BRAZIL: Members Receive Wind-Up Report
----------------------------------------------
The members of Bedrock Brazil Fund Ltd received on Aug. 31, 2015,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
CDL Company Ltd.
Grand Cayman KY1-1205
Cayman Islands
BEDROCK BRAZIL FEEDER: Members Receive Wind-Up Report
-----------------------------------------------------
The members of Bedrock Brazil Feeder Fund Ltd. received on
Aug. 31, 2015, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
Grand Cayman KY1-1205
Cayman Islands
CANALI INVESTMENT: Creditors' Proofs of Debt Due Sept. 14
---------------------------------------------------------
The creditors of Canali Investment Ltd. are required to file their
proofs of debt by Sept. 14, 2015, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on July 28, 2015.
The company's liquidator is:
Morval Bank & Trust Cayman Ltd.
Telephone: +1 (345) 949-9808
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
CS CAPITAL: Members Receive Wind-Up Report
------------------------------------------
The members of CS Capital Partners, Ltd. received on Aug. 31,
2015, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Hugh Dickson
c/o Felicia Connor
10 Market Street, Camana Bay
P.O. Box 765 Grand Cayman KY1-9006
Cayman Islands
Telephone: +1 (345) 949 7100
Facsimile: +1 (345) 949 7120
CS STRUCTURED: Members Receive Wind-Up Report
---------------------------------------------
The members of CS Structured Credit Fund, Ltd received on Aug. 31,
2015, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Hugh Dickson
c/o Felicia Connor
10 Market Street, Camana Bay
P.O. Box 765 Grand Cayman KY1-9006
Cayman Islands
Telephone: +1 (345) 949 7100
Facsimile: +1 (345) 949 7120
FRAMMA INTERNATIONAL: Creditors' Proofs of Debt Due Sept. 14
------------------------------------------------------------
The creditors of Framma International Ltd. are required to file
their proofs of debt by Sept. 14, 2015, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on July 28, 2015.
The company's liquidator is:
Morval Bank & Trust Cayman Ltd.
Telephone: +1 (345) 949-9808
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
OLD PARK: Shareholder to Hear Wind-Up Report on Sept. 3
-------------------------------------------------------
The shareholder of Old Park Limited will hear on Sept. 3, 2015, at
10:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Mr. Keiran Hutchison
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane Camana Bay
P.O. Box 510 Grand Cayman, KY1-1106
Cayman Islands
SSS HOLDINGS: Members Receive Wind-Up Report
--------------------------------------------
The members of SSS Holdings received on Aug. 25, 2015, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
SUNAC CHINA: 1H 2015 Results Support B1 CFR, Moody's Says
---------------------------------------------------------
Moody's Investors Service says that Sunac China Holdings Limited's
weak 1H 2015 results are in line with expectations and have no
impact on its B1 corporate family rating and B2 senior unsecured
ratings.
The ratings outlook is stable.
"Sunac's weak level of revenue recognition and financial metrics
in 1H 2015 are within our expectations, and we expect more
projects to be delivered in 2H 2015, further supporting revenue
recognition," says Franco Leung, a Moody's Vice President and
Senior Analyst.
Sunac reported a 40% year-on-year decline in revenue to RMB5.4
billion in 1H 2015 from RMB9.1 billion in 1H 2014.
In addition, its gross profit margin (pre-impairment) fell to
14.0% in 1H 2015 from 25.4% in 1H 2014.
Moody's estimates that adjusted gross profit margin -- including
the portion attributable to jointly controlled entities -- dropped
to around 18%-20% in 1H 2015 from 24% in 1H2014.
Moreover, Sunac's credit metrics remain weak even after taking
into account the portion attributable to these jointly controlled
entities, which recorded a significant rise in revenue and profit.
The company's adjusted EBIT/interest, including contributions from
its jointly controlled entities and associates, fell to around
1.8x-2.0x for the 12 months ended June 2015 from around 2.3x in
2014, based on Moody's estimates.
Moody's expects that adjusted EBIT/interest will stay around 2x in
the coming 12-18 months, as the company will control its average
borrowing costs.
In this context, it issued domestic corporate bonds of RMB5
billion in August 2015 at low interest rates of 4.5%-5.7%, and
most of the proceeds will be used to refinance higher-cost debt.
Moody's expects that the profit contributions from joint ventures
and associates will remain material in the coming 12-18 months.
While Sunac's project partners are mostly reputable developers,
Moody's notes that levels of joint venture disclosure are less
vigorous than in other markets and result in lower corporate
transparency.
At the same time, the company remains active in land acquisitions.
It announced on July 24, 2015, that it planned to conditionally
acquire 7 property projects in Chengdu with an aggregate gross
floor area of approximately 2.54 million sqm for a total
consideration of RMB3.2 billion.
Its land payments in 1H 2015 amounted to RMB4 billion and
committed land payments in the coming 6 months were RMB5.6
billion.
The funding required for its land payments and construction costs
will likely keep Sunac's debt leverage at high levels.
Accordingly, Moody's expects debt leverage -- as measured by
revenue/debt -- will remain around 70%-75% from around 73% in
2014. Such credit metrics are comparable to that of its B1-rated
industry peers.
On the other hand, Sunac's liquidity profile remains strong.
The company's cash to short-term debt remained robust at 134% at
end-June 2015, compared with 181% at end-2014. Its cash holdings
-- including restricted cash -- of RMB16.8 billion at end-June
2015, in addition to its operating cash flow, are sufficient to
cover maturing debt of RMB12.5 billion and committed land payments
over the next 12 months.
Sunac China Holdings Limited is an integrated residential and
commercial property developer, with ongoing or completed projects
in China's main regions of Beijing, Tianjin, Shanghai, Chongqing
and Hangzhou.
The company develops a wide range of properties, including high-
rise and mid-rise residences, detached villas, townhouses, retail
properties, offices and car parks.
Sunac was incorporated in the Cayman Islands on April 27, 2007,
and listed on the Hong Kong Stock Exchange on Oct. 7 2010. At
end-June 2015, it owned 84 projects and its land bank totaled
26.03 million square meters.
SYMPHONY CLO: Members' Final Meeting Set for Sept. 17
-----------------------------------------------------
The members of Symphony CLO Opportunities Fund will hold their
final meeting on Sept. 17, 2015, at 4:00 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
c/o Nicola Cowan
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor,
P.O. Box 1344, Grand Cayman KY1-1108
Cayman Islands
TURCHIA SECONDA: Creditors' Proofs of Debt Due Sept. 14
-------------------------------------------------------
The creditors of Turchia Seconda INV. Ltd. are required to file
their proofs of debt by Sept. 14, 2015, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on July 28, 2015.
The company's liquidator is:
Morval Bank & Trust Cayman Ltd.
Telephone: +1 (345) 949-9808
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
WEST GATE: Creditors' Proofs of Debt Due Sept. 7
------------------------------------------------
The creditors of West Gate Strategic Income Fund I Master Fund,
Ltd. are required to file their proofs of debt by Sept. 7, 2015,
to be included in the company's dividend distribution.
The company commenced liquidation proceedings on July 24, 2015.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
c/o Jo-Anne Maher
Telephone: (345) 814-9255
Facsimile: (345) 949-4647
94 Solaris Avenue Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Central Bank Keeps Benchmark Rate at 5.0%
--------------------------------------------------------------
Dominican Today reports that Dominican Republic's Central Bank on
Aug. 31 said it kept its monetary policy interest rate at 5.0%
annually, a decision adopted after analyzing inflation
projections, private sector expectations, domestic macroeconomic
outlook and the international ambiance relevant for the Dominican
economy.
It said the benchmark rate was set at its monetary policy meeting
in August, as annual of inflation rose to 0.50% in July, and stood
at 0.85% during the first seven months, according to Dominican
Today.
"Core inflation, an indicator that reflects the economy's monetary
conditions, stood at 2.11% inter-annually," the Central Banks
added, the report notes.
DOMINICAN REPUBLIC: Haiti-Dominican Border Market Back to Normal
----------------------------------------------------------------
Dominican Today reports that thousands of Haitian and Dominican
vendors and buyers took part in the binational market held Mondays
and Fridays, with dozens of tractor trailers and other trucks
resumed the haul of freight into Haitian territory after the
Fenatrado truckers union lifted its shut down that lasted 27 days.
At a meeting in Jimani (west) Haitian authorities agreed to ensure
the safety of Dominican drivers who enter that nation, said
Giovanny Escoto, head of Fenatrado's local affiliate, according to
Dominican Today.
Mr. Escoto said he's confident Haitian authorities will restore
security on their side of the border, noting that the economy for
Dominican and Haitian locals relies heavily on the weekly border
markets, the report notes.
Surveillance
Truckers started entering Haitian territory before 8:00 a.m. on
Sept. 1 as Immigration and Customs officials expedited security
checks, assisted by inspectors, police and military personnel, the
report notes.
Security measures were heightened to prevent disorder among the
large crowds and drivers who faced significant delays before
crossing the Masacre river bridge, the report adds.
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M E X I C O
===========
CONNIE STEVENS: To Emerge from Bankruptcy With Millions
-------------------------------------------------------
Bill Rochelle, a bankruptcy columnist for Bloomberg News, reported
that performer Connie Stevens will exit bankruptcy with several
million dollars in her pocket, plus a home in Puerto Vallarta,
Mexico, that has no mortgage.
According to the report, Stevens has an offer of $16.7 million for
her Los Angeles home. Taxing authorities will benefit from her
bankruptcy as she expects capital gains taxes of $150,000 on the
Wyoming home and not more than $4.25 million on the Los Angeles
property, the report related.
To minimize expense of Chapter 11, Stevens arranged a hearing in
Los Angeles bankruptcy court to seek permission to pay all claims
in full other than mortgages on the Los Angeles home, the report
further related. Claims total about $485,000, Bloomberg cited the
the actress and singer as saying.
The case is In re Connie Stevens, 14-bk-21156, U.S. Bankruptcy
Court, Central District of California (Los Angeles).
INDUSTRIAS UNIDAS: Incurs MXN801.8MM Net Loss in 6Mo Ended June 30
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Industrias Unidas, S.A. de C.V. disclosed its unaudited results
for the first six months ended June 30 of 2015.
The company's consolidated net loss for the first six months ended
June 30, 2015 was MXN801.8 million (US$51.1 million), compared to
a net loss of MXN448.0 million in the same period of 2014. This
change was due to an increase in the Comprehensive Financing
Result as a consequence of the Peso devaluation.
A full text copy of the company's financial results is available
free at:
http://is.gd/JTpm7O
About Industrias Unidas
Industrias Unidas, S.A. de C.V. is a Mexican diversified
industrial group, manufacturing a wide range of copper-based and
electrical products for the housing and electrical power sectors
mainly in Mexico and the U.S. As of September 2009, last twelve
month revenues were about US$1.3 billion.
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The company continues to carry Moody's "Caa3" long-term rating.
As reported in the Troubled Company Reporter-Latin America on
May 4, 2015, the company's consolidated net loss for the twelve
months ended December 31, 2014 was MXN896.7 million (US$60.8
million), compared to a net loss of MXN465.7 million in the same
period of 2013. This change is primarily due to an increase in
the Comprehensive financial result as consequence of peso
devaluation.
RASSINI AUTOMOTRIZ: Fitch Affirms 'B+' Issuer Default Ratings
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Fitch Ratings has affirmed Rassini Automotriz, S.A. de C.V's (RA)
foreign and local currency Issuer Default Ratings (IDRs) at 'B+'.
The Rating Outlook was revised to Positive from Stable.
The revision of the Outlook to Positive reflects Fitch's
expectations for a further strengthening of RA's business profile
over the intermediate term resulting from increased market
penetration in both suspension systems and brakes. It also
reflects a credit profile that should continue to strengthen from
debt repayment, enhanced liquidity, and growing funds from
operations (FFO) due to favorable demand for pickups and large
sport utility vehicles (as a result of low U.S. gasoline prices),
and the gravitation of auto manufacturing to Mexico.
The 'B+' ratings continue to reflect RA's business position as a
Tier-1 supplier of suspension and brake components, its geographic
diversification, efficient operations, low cost structure and
improved financial profile. The company's ratings are limited by
the cyclicality of the automotive industry as well as RA's
regional and customer concentration in North America, small scale
and credit track record. In Fitch's view, under a stress scenario
RA's financing options could be more limited than those available
to industry peers.
KEY RATING DRIVERS
Strong Business Position
RA, a subsidiary of Rassini, S.A.B. de C.V. (Rassini),
manufactures suspension and brake components for light and heavy
vehicles, with leading positions in North America and Brazil. The
company's main product line, leaf springs, which accounted for
approximately 59% of total sales in 2014, has historically had a
market share of over 90% in North America and an estimated share
in Brazil of 65%. This strong position results from the group's
specialization and technology development, close and longstanding
relationships with customers through product design and
development, its geographic location, and integrated operations.
Product Diversification Increasing
During 2014 Rassini was awarded new contracts totalling about
USD600 million for the next five years. Approximately 18% of these
agreements were related to Rassini's Brakes Division, where
revenue growth has been the fastest. During 2014, the Brakes
Division accounted for 28% of revenues, compared with 17% during
2012. Strong demand in 2015, as well as the downturn in the
company's Brazilian operations, resulted in this figure reaching
more than 31% in the first half of 2015 (1H15). Strong market
penetration should allow Rassini to reach 26% of the North America
brake market by 2016, which compares with 21% in 2014.
Customer and Regional Concentration
Rassini is considered an essential supplier to several original
equipment manufacturers (OEMs), including General Motors Co., Fiat
Chrysler Automobiles N.V. and Ford Motor Co. In 2014, Detroit's
Big Three OEMs represented 71% of Rassini's total revenues; North
America accounted for 80% and 88% of Rassini's total revenues and
EBITDA, respectively. Both regional and customer concentration as
percent of revenues increased as a result of organic growth in
North America as well as plummeting vehicle demand in Brazil.
Although Fitch expects the contribution from new contracts in
North America to fully offset shrinking profitability in RA's
Brazilian operations, the ability of the company to manage these
operations so that they are not a drain on cash flow would be
viewed positively for future upgrade considerations.
Leverage Reduction
Despite challenging conditions in Brazil, RA has continued to
reduce its leverage level since 2011 as a result of higher EBITDA
generation in North America as well as debt repayments. Total debt
as of 2Q15 was USD192 million which compares favourably to USD215
million as of the second quarter 2014 and to USD206 million at the
end of 2014. On a consolidated basis, Rassini's total debt/EBITDA
for the last 12 months (LTM) ended June 30, 2015 was 1.7x and its
net debt/EBITDA was 1.1x, which compare positively to year-end
levels of 2x and 1.4x in 2014 and 2.6x and 2.0x in 2013. The
company is evaluating multiple options to continue to grow,
including organic investments or potential acquisitions. RA's
ratings consider that the company's long-term capital structure
will remain around management's target of 2x total debt/ EBITDA.
Continued FFO Expansion, Low FCF Visibility
Recurring FFO has increased from USD55 million in 2013 to USD77
million as of the LTM June 30, 2015. Fitch is projecting that FFO
could grow to USD85 million in 2015 and USD92 million in 2016.
Recurring FCF has been approximately USD33 million per year during
the last few years as a result of low capex and no dividend
payments. This has represented about 4% FCF margin which is more
in line with those of higher-rated corporates. In coming years,
extraordinary tax payments, potential dividends beyond those of
2015, or organic capex initiatives could reduce FCF generation.
Fitch is projecting FCF will be around USD20 million in 2015 as a
result of USD16 million of dividend payments during July.
Continued positive FCF through the cycle would be viewed as
positive to RA's credit quality.
KEY ASSUMPTIONS
-- U.S. industry light vehicle sales rise in the low single
digits during 2015.
-- Beyond 2015, U.S. industry sales growth slows as sales levels
near the peak and Brazil vehicle sales stabilize their
downward trend before improving slowly.
-- Near-term above-industry-average volume growth tied primarily
to market share gains in North America for all product
segments.
-- Rassini's EBITDA margins rise significantly in 2015 as
production volumes grow, the company's cost discipline is
further enhanced by a strong USD and lower electricity costs
in Mexico, and profit increases on new and replacement
products.
RATING SENSITIVITIES
Negative rating actions could result from a combination of lower
volumes and profitability as a result of material deterioration in
North American light vehicle demand which translates into
sustained leverage significantly above management's target of 2x.
Weak operating cash flow and low cash balances, relative to short-
term debt, could also result in negative rating actions.
Positive rating actions could result from larger scale, increased
customer or geographic diversification, and sustained leverage
levels at or below management's target of 2x in conjunction with a
strong liquidity profile.
LIQUIDITY
Short-term debt of USD76 million is adequately covered by pro
forma cash balance (after July 2015 dividend) of USD50 million as
well as cash flow from operations of USD66 million. Debt
maturities for the next three years total USD154 million, which
accounts for 78% of Rassini's total debt. A more spread-out
maturity profile would be consistent with those of Fitch-rated
corporates with higher ratings and would be considered positive to
credit quality.
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P U E R T O R I C O
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BANCO POPULAR: Moody's Lowers LT Bank Deposit Rating to Ba2
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Moody's Investors Service took rating actions on three Puerto
Rican banks, including Popular, Inc. and its subsidiaries
(Popular), FirstBank Puerto Rico, and Banco Santander Puerto Rico
(BSPR). The rating actions were:
For Popular's lead bank, Banco Popular de Puerto Rico, Moody's
downgraded the long-term bank deposit rating to Ba2 from Ba1, the
issuer rating to B2 from B1, and the long-term counterparty risk
assessment (CRA) to Ba3(cr) from Ba2(cr). The bank's Not Prime
short-term deposit rating and Not Prime(cr) short-term CRA were
affirmed. These actions were a result of Moody's downgrade of the
bank's standalone baseline credit assessment (BCA) to b1 from ba3
(adjusted BCA to b1 from ba3). For the holding company and its
subsidiaries, Moody's downgraded all the long-term debt ratings by
one notch (senior unsecured to B2 from B1).
Moody's also assigned new shelf ratings to these entities within
the Popular banking group:
Popular Inc.: (P)B2 senior unsecured shelf, (P)B2 subordinate
shelf, (P)B3 junior subordinate shelf, (P)B3 cumulative preferred
shelf, and (P)Caa1 non-cumulative preferred shelf
Popular North America, Inc.: (P)B2 senior unsecured shelf, (P)B2
subordinate shelf, and (P)B3 junior subordinate shelf
Popular Capital Trust IV: (P)B3 cumulative preferred shelf
Popular North America Capital Trust II: (P)B3 cumulative preferred
shelf
Popular North America Capital Trust III: (P)B3 cumulative
preferred shelf
For FirstBank, Moody's downgraded the long-term bank deposit
rating to B1 from Ba3, the issuer rating to Caa1 from B3, and the
long-term CRA to B2(cr) from B1(cr). The bank's Not Prime short-
term deposit rating and Not Prime(cr) short-term CRA were
affirmed. These actions resulted from the downgrade of the bank's
standalone BCA to b3 from b2 (adjusted BCA to b3 from b2).
For BSPR, Moody's affirmed all the long- and short-term supported
ratings (deposits A2/issuer Baa2), the adjusted BCA at baa1, and
the CRA at A3(cr)/P-2(cr). However, Moody's downgraded the bank's
standalone BCA to ba3 from ba2.
Following the rating actions, the outlooks for Popular's and
FirstBank's ratings remain negative. The outlook for BSPR's
ratings remains stable because of the bank's connection with its
US affiliate, Santander Bank, N.A. (deposits A2/issuer Baa2
stable, BCA baa1), which has a stable outlook.
RATINGS RATIONALE
Moody's said the high likelihood of additional defaults on Puerto
Rico's public sector debt creates uncertainty and heightens the
banks' credit risk at a time when the banks are already severely
challenged by the ongoing economic contraction.
The recent default of Puerto Rico's debt is the first step in what
Moody's believes may be a large, long and disorderly debt
restructuring process, much of which could play out in the courts.
Given that there is no legal framework available through
bankruptcy law for Puerto Rico's restructuring, there is no
precedent on how it will ultimately be resolved.
The uncertainty around the debt restructuring process adds to
Puerto Rico's economic woes. Puerto Rico's economy has suffered
from recession or anemic growth trends since 2006, reflecting the
loss of employment in key manufacturing sectors, continued exodus
of citizens seeking jobs on the US mainland, low workforce
participation, and high poverty levels compared to the mainland.
Moreover, Puerto Rico lacks an obvious engine of economic
recovery, and so the prospects for future economic improvement are
very uncertain. A deeper recession and higher unemployment would
further weaken business and household balance sheets and have
negative implications for the banks in the form of higher non-
performing assets, higher provisions and capital erosion.
Notwithstanding today's downgrades, Moody's noted that the three
banks currently have strong capital positions, which will help
defend against credit costs resulting from future asset quality
deterioration, including losses on direct exposures to the public
sector. At June 30, BSPR, FirstBank, and Popular reported
consolidated common equity Tier 1 capital ratios of 25.7%, 16.4%
and 15.9%, respectively.
Moody's added that the three banks have significantly improved
their funding profiles since the onset of the recession through a
combination of smaller balance sheets and an increased focus on
raising core deposits. The banks' core deposit flows have
remained relatively steady in recent periods despite the island's
economic and fiscal challenges, which Moody's largely attributes
to the presence of FDIC deposit insurance. Nonetheless, greater
uncertainty with respect to Puerto Rico's fiscal situation could
put incremental negative pressure on the banks' funding positions.
FirstBank has the weakest funding profile of the three banks
because it is the most reliant on brokered deposits.
Moody's affirmed BSPR's supported deposit and debt ratings because
those ratings benefit from the bank's connection with its US
affiliate, Santander Bank, N.A. Moody's believes that the deposit
ratings of affiliates in a US banking family should be equalized
because of regulatory powers afforded by the cross-indemnification
provisions of the Federal Deposit Insurance Act.
The negative rating outlooks for Popular and FirstBank reflect the
two banks' vulnerability to further deterioration in Puerto Rico's
economy. BSPR is also vulnerable to the same economic
deterioration, but the rating outlook on its supported ratings is
stable because those ratings benefit from the bank's connection
with its US affiliate, which has a stable outlook.
The three banks' standalone BCAs could be lowered if Moody's
determines that the banks' capital or liquidity positions would
materially weaken as a consequence of Puerto Rico's economic or
fiscal challenges.
Given today's downgrades and the continued challenges in Puerto
Rico's operating environment, Moody's does not see upward rating
pressure developing for some time.
PUERTO RICO ELECTRIC: Said to Reach Tentative Debt Agreement
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Michelle Kaske at Bloomberg News reports that Puerto Rico's main
power utility has reached a tentative agreement with bondholders
to restructure the agency's almost $9 billion debt burden,
according to two people with direct knowledge of the talks.
Under the agreement, holders of Puerto Rico's Electric Power
Authority debt would exchange existing bonds for new securities at
a loss and agree to defer payments on the maturities, said the
people, who asked for anonymity because the debt-restructuring
plan isn't final, according to Bloomberg News. Rate payers would
be assessed a surcharge that would be dedicated to paying off the
bonds, one of them said, Bloomberg News relates.
Bloomberg News says that a restructuring of the utility known as
Prepa would be the largest-ever in the $3.6 trillion municipal-
bond market. Puerto Rico and its agencies owe $72 billion after
years of borrowing to delay debt payments and fill budget
deficits, Bloomberg News notes. The tentative Prepa agreement,
reached just before a midnight Tuesday deadline, comes days after
Governor Alejandro Garcia Padilla gave advisers more time to work
on what the administration calls an economic recovery and debt
adjustment plan that is expected to seek a reduction in the
commonwealth's payments, Bloomberg News discloses.
Prepa bondholders agreed to extend a forbearance agreement, which
keeps negotiations out of court, for a number of days, said one
person, Bloomberg News notes. Assured Guaranty also agreed to
extend the pact, another person with direct knowledge said. MBIA
Inc. decided not to renew the deal with Prepa, one of the people
said, Bloomberg News relays.
The agreement between Prepa and bond holders calls for a five-year
delay in principal payments and a reduction of $400 million in the
debt owed, newspaper El Nuevo Dia reported, citing two sources it
didn't identify, Bloomberg News notes. The accord was signed
Sept. 1 evening, it said, Bloomberg News relays.
Bloomberg News discloses that Prepa and its creditors originally
signed the forbearance agreement in August 2014 to work out how to
restructure the utility's debt load and modernize its plants,
which rely on oil to produce electricity. The parties have
exchanged dueling debt proposals since then, Bloomberg News notes.
The forbearance agreement had been extended six times, Bloomberg
News relays.
The utility's bonds maturing July 2042 traded Monday at an average
price of about 56 cents on the dollar, up from 50.4 cents at the
start of the year, according to data compiled by Bloomberg. The
average yield was 9.6 percent, Bloomberg News adds.
* * *
The Troubled Company Reporter on Feb. 4, 2015 reported that
Standard & Poor's Ratings Services said it maintained its 'CCC'
rating on the Puerto Rico Electric Power Authority's (PREPA) power
revenue bonds on CreditWatch with negative implications. S&P
originally placed the rating on CreditWatch on June 18, 2014.
On Dec. 15, 2014, TCRLA reported that Fitch is maintaining the
$8.6 billion of Puerto Rico Electric Power Authority (PREPA) power
revenue bonds on Negative Rating Watch. The bonds are currently
rated 'CC'.
As reported in the Troubled Company Reporter on Sept. 19, 2014,
Moody's Investors Service has downgraded the rating for Puerto
Rico Electric Power Authority's (PREPA) $8.8 billion of Power
Revenue Bonds to Caa3 from Caa2. This rating action concludes the
rating review that Moody's initiated on July 1, 2014. PREPA's
rating outlook is negative.
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LATIN AMERICA: Corp. Defaults Rose in Past Year, Moody's Says
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The speculative-grade issuer-weighted default rate for Latin
American corporates increased to 4.2% for the 12 months ended in
June 2015, up from 3.1% in the year-ago period, says Moody's
Investors Service.
"The 4.2% rate is based on ten defaults by Moody's-rated corporate
issuers, eight of which were from Brazil, which is suffering from
a recession," says John Kennedy, a Moody's Associate Analyst.
"Across sectors, four defaults originated in the Capital Industry
sector including construction and engineering companies OAS SA and
Sare Holding, S.A.B. de C.V., with OAS SA the largest company to
default to date this year," adds Kennedy. The Technology sector
accounted for another three defaults, all from one corporate
family -- NII Holdings Inc.
Looking forward, Moody's expects the default rate to range from
1.9% to 4.2% by the end of the first half of 2016 in the region.
In comparison, Moody's expects the global rate to rise from 2.3%
to 2.8% over the same timeframe. "The higher projection for Latin
America partly reflects a prolonged recession in Brazil as well as
a growth deceleration in most of the region," says Gersan Zurita,
a Moody's Credit Officer in the region.
Over the past year, rating downgrades outpaced upgrades in Latin
America. On average, Moody's has lowered senior unsecured
equivalent ratings by one-fifth of a notch in the region, compared
with one-twenty-fifth of a notch globally. Most of the companies
that Moody's downgraded are in Brazil.
Moody's ratings of Latin American corporates continue to be fairly
accurate in Latin America. The average position of Moody's
ratings in the region was 92.2%, compared with 92.8% globally.
Moody's had ratings on 348 corporate debt issuers in 21 Latin
American countries as of June 30, 2015, according to the report
"Latin American Corporate Default and Recovery Rates, 1990 to June
2015."
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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.
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