/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150925.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, September 25, 2015, Vol. 16, No. 190 Headlines B R A Z I L BANCO DO ESTADO: S&P Affirms 'BB/B' Ratings; Outlook Negative BANCO INDUSVAL: Moody's Withdraws B2 LC and FC Deposit Ratings BRASIL PHARMA: Moody's Cuts Global Scale CFR to Caa1 BRAZIL: Exchange Rate Volatility Temporary, Finance Minister Says GENERAL SHOPPING: Moody's Lowers CFR to B2; Outlook Negative HAITONG BANCO: Moody's Affirms 'B2' Sr. Unsecured Debt Rating PARANAPANEMA S.A: Moody's Cuts Corporate Family Rating to B1 RIO DE JANEIRO: Fitch Lowers IDR to 'BB+'; Outlook Negative C A Y M A N I S L A N D S 1OAK INVESTMENT: Shareholders' Final Meeting Set for Sept. 30 CHARTER LIMITED: Members' Final Meeting Set for Sept. 30 GMPIM EQUITY: Shareholder to Hear Wind-Up Report on Oct. 16 ITAU LATINAMERICA: Member to Hear Wind-Up Report on Sept. 28 ITAU LATIN AMERICA: Member to Hear Wind-Up Report on Sept. 28 NESOI LIMITED: Members' Final Meeting Set for Sept. 30 PRUPIM VIETNAM: Shareholders Receive Wind-Up Report PYRAMIS GLOBAL: Member Receives Wind-Up Report PYRAMIS GLOBAL MASTER: Member Receives Wind-Up Report PYRAMIS GLOBAL FUND: Member Receives Wind-Up Report PYRAMIS GLOBAL HEALTH: Member Receives Wind-Up Report YSPOLIN GP: Shareholders' Final Meeting Set for Sept. 30 C O L O M B I A * COLOMBIA: Low Oil Prices Lead to Rising Corp. Taxes, Fitch Says D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Foreign Investment Tops US$7.3BB in 3 Years * DOMINICAN REPUBLIC: Businesses Waylay 200 Labor Unions J A M A I C A DIGICEL GROUP: Expects More Competition UC RUSAL: Plans to Cut Further Aluminum Production M E X I C O MEXICO: Foreign Reserves Fall by $479 Million P U E R T O R I C O CERTENEJAS INCORPORADO: Case Summary & 7 Top Unsecured Creditors PUERTO RICO ELECTRIC: Reaches Deal w/ Lenders to Restructure Debt STANDARD REGISTER: Court Approves WilliamsMarston to Provide CRO - - - - - =========== B R A Z I L =========== BANCO DO ESTADO: S&P Affirms 'BB/B' Ratings; Outlook Negative ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB/B' global scale and 'brAA-/brA-1' Brazilian national scale ratings on Banco do Estado do Para S.A. The ratings on Banpara reflect its "weak" business position, "adequate" capital and earnings, "moderate" risk position, "above average" funding, and "strong" liquidity. BANCO INDUSVAL: Moody's Withdraws B2 LC and FC Deposit Ratings -------------------------------------------------------------- Moody's Investors Service has withdrawn all ratings assigned to Banco Indusval (BI&P), including the long and short-term local and foreign currency deposit ratings of B2 and Not Prime, respectively, as well as the Brazilian national scale deposit ratings of Ba2.br and BR-4, for long and short-term. Moody's has also withdrawn its b2 baseline credit assessment and the counterparty risk assessment of B1(cr) and NP(cr) assigned to BI&P. Before the withdrawal, the outlook on all ratings was negative. RATINGS RATIONALE Moody's has withdrawn the ratings for its own business reasons. Moody's took its last of rating action on BI&P was on 31 August 2015, when Moody's downgraded the bank's long-term global local and foreign currency deposit ratings to B2 from B1, as well as its baseline credit assessment to b2 from b1 and its long and short- term Brazilian national scale deposit ratings, to Ba2.br from Baa2.br and BR-4 from BR-3, respectively. At the same time, the short-term global ratings were affirmed at Not Prime. At the same time, Moody's changed the outlook on all ratings to negative from stable. Banco Indusval S.A. is headquartered in Sao Paulo, Brazil and had consolidated assets of BRL4.5 billion (USD1.4 billion) and equity of BRL538.2 million (USD173.3 million) as of June 30, 2015. BRASIL PHARMA: Moody's Cuts Global Scale CFR to Caa1 ---------------------------------------------------- Moody's America Latina downgraded Brasil Pharma's corporate family rating to Caa1/B3.br from B3/B1.br. The outlook remains negative. Ratings downgraded as follows: Issuer: Brasil Pharma S.A. Corporate Family Rating: to Caa1 from B3 (global scale); B3.br from B1.br (national scale) The outlook for the ratings is negative. RATINGS RATIONALE The downgrade of Brasil Pharma's CFR to Caa1/B3.br was prompted by its currently unsustainable liquidity and capital structure, coupled with a longer than initially anticipated time horizon for its operational recovery and the deterioration in the Brazilian macroeconomic environment. The Caa1 rating continues to reflect primarily the company's high liquidity risk and very weak credit metrics resulted from a longer than expected restructuring process and slow return to profitability following challenges faced during 2013 and 2014. On the other hand, the strong support received from its controlling shareholder Banco BTG Pactual S.A. (Baa3, Negative), as evidenced by continued capital injections and lending to the company, is one of the key factors supporting Brasil Pharma's rating. The lack of financial flexibility is a constraint to the ratings as it prevents the company to take full advantage of its geographic footprint, with large presence in the North, Northeast and Midwest regions of Brazil, curtailing its competitive position and growth opportunities in the near-term. Over the long term, the company should continue to benefit from good fundamentals of the drugstore retail industry in Brazil such as aging of the population, low penetration of healthcare plan beneficiaries and increase in the offering of generic drugs. In terms of liquidity, Brasil Pharma has been completely dependent on the support provided by BTG Pactual. The bank acquired BRL 214 mm in debentures issued by the company during 2015 and has an active role in the relationship with creditor banks. As of June 2015, Brasil Pharma's cash position of BRL 51 million would compare modestly with short-term debt levels of BRL 841 million (including the totality of the debentures raised with BTG and accounts payable related to acquisitions). Following the last rating action, in January 2015, the company has been able to renegotiate its short term, but no individual line for a term longer than 180 days. Additionally, no definite solution for its inadequate liquidity and capital structure has been presented. All these developments contrast with a deterioration of the Brazilian political and macroeconomic scenarios, which created a more restrictive credit environment and will hurt retail sales in the short-term. Despite the improvements in operational trends observed in the 2Q15 results, credit metrics are still very weak. Accordingly, we view adequate capital structure and debt amortization profile as key conditions for a sustainable turnaround into more adequate metrics, which is likely to take a number of quarters. In 2015 the company announced a new CEO and hired consulting firm En‚as Pestana & Associados to initiate the second phase of its operational restructuring. Future actions include the integration of Big Benn -- one of the acquired chains -- and transfer of best practices among business platforms. The company expects to have a new business plan with detailed actions to improve its capital structure, including the likelihood of a new capital increase by BTG Pactual. Nevertheless, the uncertainty related to the timing and adequacy of the proposed plan, as well as its execution risk, weight negatively on the rating. The negative outlook reflects Brasil Pharma's operational challenges and the risks associated with the company's unsustainable capital structure. The outlook also incorporates the lack of an adequate solution to improve liquidity and reduce the amount of short-term debt. The ratings could be downgraded if the perceived support from BTG Pactual diminishes or if there is no adequate solution presented for the company's weak capital structure (such as a capital injection or sale of assets) in the near-term. The ratings could experience upward pressure in case of a substantial improvement in liquidity, operating performance, capital structure and overall credit metrics. Founded in 2009 and headquartered in the state of Sao Paulo, Brasil Pharma S.A. has the BTG Pactual bank as its main shareholder. The company is among the three largest drugstore chains in the country in terms of sales and had 695 owned stores in the south, northeast, north and central-west regions of the country as of June 30th, 2015. Brasil Pharma also runs a franchise business under the "Farmais" brand, with 484 stores. Net revenues for the LTM period ended June 30th 2015 amounted to BRL 3.5 billion (approximately USD 1.3 Billion converted by the average exchange rate for the period), with adjusted EBITDA margin of - 3.6% (including the capitalization of operating leases). BRAZIL: Exchange Rate Volatility Temporary, Finance Minister Says ----------------------------------------------------------------- EFE News reports that Brazilian Finance Minister Joaquim Levy said that the marked volatility the country's currency is experiencing is temporary, despite the fact that the real continues to decline and touched the historic low of 4.13 to the U.S. dollar. "I think we're going to have greater stability of the dollar," although "it's difficult, impossible, to pinpoint what the level will be," said Mr. Levy after participating in an economic seminar on the precipitous devaluation of the real, which on Sept. 22 fell 1.83 percent against the dollar, closing at BRL4.05, the report relays. That was the highest quote for the greenback since Brazil adopted the real in 1994, and the trend remains in place on Sept. 23 with the Brazilian currency trading at 4.13 at mid-session, the report discloses. The report notes that Mr. Levy told reporters that the exchange rate turbulence "is not a problem only for Brazil," but he said he hoped that the fiscal adjustment measures adopted by the government will help to bring more "tranquility" to the country's financial markets. The minister praised the decision by the national Congress to maintain a series of vetoes by President Dilma Rousseff on several bills approved by the legislature to increase public spending, which the government is trying to keep to a minimum, the report says. "Elements such as that will allow us to reap the fruits of what's being done," said the minister, who again expressed his confidence that the "adopted measures," which run from spending cuts to a significant tax increase, "will have an effect," the report relays. Brazil is facing a delicate situation, one that has led the government to revise downward its projections for this year, now calculating that 2015 will close with an economic contraction on the order of 2.44 percent, although private analysts say it will be 2.70 percent, the report notes. In addition, the Rousseff government is going through a delicate political crisis stemming in part from the corruption scandals in the state-run Petrobras oil company, all of which Levy admitted is creating a "certain insecurity" in the markets, the report discloses. For these reasons, Standard & Poor's (S&P) reduced Brazil's risk rating to BB+, which is considered to be "junk bond" status, and many experts fear that the decision could be followed by similar moves by other risk rating agencies, the report relates. Mr. Levy met privately with representatives of the Fitch agency, which is keeping the country's risk rating at a higher level than S&P, and he said that the firm has guaranteed him that it will not revise Brazil's status in the near term, notes the report. "I'm fully convinced that once the uncertainty is overcome" regarding Brazil, both in the political and economic areas, "the recovery will be very rapid," the minister said, the report adds. GENERAL SHOPPING: Moody's Lowers CFR to B2; Outlook Negative ------------------------------------------------------------ Moody's America Latina Ltda. downgraded the global scale, foreign currency corporate family rating of General Shopping Brasil S.A. to B2 from B1 (national scale, local currency corporate family rating to Ba1.br from Baa2.br). The rating outlook was revised to negative from stable. RATINGS RATIONALE The downgrade reflects General Shopping's strained liquidity position in light of its recently announced capital structure management strategy, which includes, but is not limited to: a) a deferral of interest payments on the 12% subordinated, US dollar denominated perpetual bonds; b) a tender offer for a portion of its 10% senior unsecured, US dollar denominated perpetual bonds to investors outside of Brazil; c) a common equity issuance to investors in Brazil and d) potential asset sales in the future. General Shopping's credit metrics have weakened due to a heavy debt load and higher financing expenses. Additionally, there is uncertainty regarding the company's future financial flexibility and earnings power to address the accrual of deferred interest. The negative outlook reflects Moody's expectation that the company's liquidity position and credit metrics will remain under pressure in the short-term as it opportunistically implements its strategic initiatives, exacerbated by both the current political and macroeconomic challenges in Brazil and a weakening retail sector. The B2 rating reflects the company's current credit metrics and portfolio quality. As of 2Q15, Debt + Preferred Equity as a percentage of Gross Assets, and its Net debt/EBITDA were 54% and 8.5X, respectively. Fixed charge coverage, has weakened to 1.0X or below for several consecutive quarters, eroding any cushion against unexpected EBITDA declines or increases in interest expenses. Positively, General Shopping owns and operates a good quality and resilient portfolio that has consistently maintained high occupancy and has generated solid EBITDA margins. The company has a proven track record as an owner, developer and operator of shopping centers with a strong presence in the state of Sao Paolo. Although an upward rating movement is unlikely in the near term, it would be predicated upon General Shopping maintaining a fixed charge coverage closer to 1.5X, effective leverage below 50% (excluding the effect of foreign exchange fluctuations); Net debt to EBITDA below 7.0X, and secured debt levels below 20% (as a percentage of gross assets) on a consistent basis. A stabilization of the rating outlook would also require more clarity on the company's liquidity position to address the accrual of deferred interest as well as the outcome of the tender offer and equity issuance. Downward rating movement would likely result from a fixed charge coverage consistently below 1.0X; effective leverage above 55% (excluding the effect of foreign exchange fluctuations) and/or Net debt to EBITDA consistently above 8.0X. Any difficulty or failure in the company's execution of its capital structure plan and/or any other strategic initiatives would place additional downward pressure on the ratings. Additionally, a meaningful increase in the proportion of the secured debt or a decreased in the amount of unencumbered assets that could be used for debt repayment would also result in a downgrade of General Shopping's unsecured ratings. This rating was downgraded with a negative outlook: General Shopping Brasil S.A. -- global scale, foreign currency corporate family rating to B2 from B1 (national scale, local currency corporate family rating to Baa1.br from Baa2.br) The last rating action with respect to General Shopping Brasil S.A. was on May 9, 2014, when Moody's downgraded the corporate family rating to B1 from Ba3 (global scale, local currency) and to Baa2 from A3.br (national scale, local) with a stable outlook. General Shopping Brasil S.A. [BOVESPA: GSHP3] is headquartered in Sao Paulo, Brazil. The company owns interests in 16 shopping centers in which it has a proportional interest of approximately 75%. These shopping centers have an aggregate of 342,524 square meters (m2) of gross leasable area (GLA) and focuses on serving the class B and C consumer. At June 30, 2015, General Shopping reported total assets of approximately R$3.4 billion. HAITONG BANCO: Moody's Affirms 'B2' Sr. Unsecured Debt Rating -------------------------------------------------------------- Moody's America Latina Ltda. upgraded Haitong Banco de Investimento do Brasil S.A. (Haitong Brazil)'s long-term Brazilian national scale senior unsecured debt rating to Baa3.br from Ba2.br. At the same time, Moody's affirmed Haitong Brazil's long- term global scale senior unsecured debt rating of B2 and revised its outlook to positive from developing. This rating action follows the 7 September 2015 announcement of the conclusion of the sale of Banco Espirito Santo de Investimentos S.A. (unrated), which owns an 80%-stake on Haitong Brazil, to Haitong Securities Company Limited (unrated). Haitong Brazil was previously known as BES Investimento do Brasil S.A.. The following ratings assigned to Haitong Banco de Investimento do Brasil S.A. were upgraded: Long-term national scale senior unsecured debt rating to Baa3.br from Ba2.br The following rating was affirmed: Long-term local currency senior unsecured debt rating of B2; positive outlook RATINGS RATIONALE The upgrade of Haitong Brazil's national scale debt rating and the positive outlook of the global scale debt rating reflect the elimination of funding risk resulting from the intervention of its former parent. In the last 18 months the bank's management was almost entirely dedicated to defensive liquidity management. The conclusion of the ownership change will enable the bank to re- direct its focus towards new business generation. Please refer to the 23 September 2015 rating action press release, "Moody's upgrades Haitong Brazil's national scale rating to Baa3.br; revises outlook to positive", at https://www.moodys.com/research/Moodys-upgrades-Haitong-Brazils- national-scale-rating-to-Baa3br-revises--PR_334421 The positive outlook also acknowledges that the business opportunities that Haitong Brazil's investment banking business will derive from its relationship with its parent, Haitong Securities Company Limited (unrated), one of China's largest securities firms. This transaction represents an important step in Haitong Securities' pursuit of an enhanced global footprint. Haitong Brazil hopes to be able to leverage its parent's business relationships with Chinese corporations doing business in Brazil. It faces little direct competition in this regard, as other Chinese banks operating in the country do not engage in investment banking activities. Nevertheless, the bank faces significant execution risks with its new business strategy, and it remains to be seen how substantial the opportunities it is targeting really are. The bank's businesses were significantly impacted during the ownership transition period, as evidenced by the 27% shrinkage of total assets in the twelve months ended in June 2015. The resulting lower business volumes and focus on preserving liquidity meaningfully reduced Haitong Brazil's profitability, as shown by its return on assets close to zero. In the short-term, we expect profitability will remain very limited, and the bank may generate net losses. As the bank recovers its ability to generate businesses, its revenue stream should improve, but progress will be gradual given the weak economic environment and time needed for synergies with its new parent to materialize. Haitong Brazil's b2 BCA is positively influenced by its high capitalization, with a 16% tangible common equity to risk-weighted assets ratio. The long-term local currency senior unsecured debt rating of B2 derive from Haitong Brazil's BCA of b2, and do not incorporate any affiliate support uplift from Haitong Securities, nor do they incorporate government support uplift given the bank's modest market share of domestic deposits. LAST RATING ACTIONS The last rating action on Haitong Brazil was on 19 December 2014, when Moody's confirmed its senior unsecured local currency debt rating of B2 and its National Scale debt rating of Ba2.br. Moody's has also changed the outlook to developing from review for downgrade. The principal methodology used in these ratings was Banks published in March 2015. Please see the Credit Policy page on www.moodys.com.br for a copy of this methodology. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in June 2014 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings". Haitong Banco de Investimento do Brasil S.A. is headquartered in Sao Paulo, Brazil and had total consolidated assets of BRL5.4 billion (USD1.7 billion) and shareholders' equity of BRL655 million (USD211 million), as of June 30, 2015. PARANAPANEMA S.A: Moody's Cuts Corporate Family Rating to B1 ------------------------------------------------------------ Moody's Investors Service downgraded Paranapanema S.A. Ratings downgraded: Paranapanema S.A. Corporate Family Rating: to B1 from Ba3 The outlook for the ratings is negative RATINGS RATIONALE The downgrade of Paranapanema's CFR to B1 reflects the prolonged period of weak market fundamentals in Brazil and the observed increase in the company debt levels (in BRL) over the last few quarters, which may constrain its credit profile. With the sharp slowdown in Brazil's economy, key consuming industries for copper and copper products - energy, construction, refrigeration, industrial machinery, automotive - will continue to be challenged through at least 2016. Besides, the current (at the end of 2Q2015) debt structure poses an additional risk to the company in an environment of tighter liquidity in Brazil's financial system. Paranapanema's B1 rating reflects the company's leading position in the Brazilian copper market, as well as its large scale and partially-integrated operations that include access to high-grade copper, its efficient logistics, and its long-term relationship with copper suppliers and clients. The rating also reflects Paranapanema's exposure to the cyclicality of global copper markets and foreign exchange, which has historically resulted into margins and cash flows volatility, although we recognize that the company has been revisiting its hedging policy in order to mitigate future price and FX volatility. The ratings incorporate our expectations that challenging fundamentals in the copper industry may pressure smelters' premiums and Paranapanema's credit metrics. Also constraining the ratings is the negative perspective for Brazil's economic growth and industrial activity, which should impact Paranapanema's domestic sales. Imports remain a threat, but the devaluation of the local currency (BRL) should continue to help hinder imported copper products. Exposure to premiums on copper and copper products and foreign exchange volatility also constrain the ratings. Besides, the high concentration of debt in the short term (65% of total reported debt at the end of 2Q2015) poses an additional risk to Paranapanema's credit profile, although we acknowledge the export financing nature of the majority of these lines and the company's strategy of extending debt maturities. Despite the deterioration in the domestic market fundamentals in the 1H2015, total sales volumes have not been strongly affected as exports (especially of primary copper) have offset the decline in sales of copper products in the domestic market. Besides, Paranapanema's working capital management resulted in a stronger cash balance of near BRL1.2 billion at the end of June 2015. Going forward challenges remain on export markets, with slowdown in economic growth in Latin America and the competitive nature of these markets, and more prolonged negative effects of China's economic deceleration on commodity prices. The ratings could be upgraded if Paranapanema is able to improve operating performance such that adjusted EBITA to interest expense is sustained above 2.5x and EBITA margin above 5% on a sustained basis. An improved liquidity profile and a lower concentration of debt in the short term could support positive rating actions. All ratios incorporate Moody's standard adjustments. On the other hand, the ratings could be downgraded if Paranapanema's liquidity profile deteriorates or if its capital structure weakens, with adjusted Total Debt to Ebitda above 5.5x for a continued period. Performance falling below our expectations, indicated by free cash flow to debt below 3%, could also lead to negative rating actions. Paranapanema S.A. ("Paranapanema") is the sole refined copper producer in Brazil, with an annual smelting production capacity of 280,000 tons. The company is also a leading producer of semi- finished copper products, including wires, tubes, rolling, rods and bars. In the last twelve months ended June 2015, Paranapanema reported consolidated revenues of BRL 4.9 billion (USD 1.7 billion converted by the average foreign exchange rate for the period). The company has three industrial facilities in Brazil -- one in the state of Bahia, one in Espirito Santo and one in the state of Sao Paulo. RIO DE JANEIRO: Fitch Lowers IDR to 'BB+'; Outlook Negative ----------------------------------------------------------- Fitch Ratings has downgraded the Brazilian state of Rio de Janeiro's Long-term Issuer Default Rating (IDR) to 'BB+' from 'BBB-'. Fitch has also downgraded the National long-term rating to 'A+(bra)' from 'AA-(bra)'. The Rating Outlook remains Negative, which reflects the Negative Outlook assigned to Brazil on April 9, 2015. KEY RATING DRIVERS The downgrade reflects Fitch's belief that the State of Rio de Janeiro (ERio) is no longer able to present operating margins compatible with historical values since pension payment should consume an increasing portion of the state's revenues in the coming years. Moreover, the state has committed to relevant debt increases until 2017, undermining its capacity to service the outstanding debt. The state has been resorting to non-recurring revenues to cover for operating expenditures. ERio posted a thin operating margin of 0.4% in 2014, following the worse than expected value-added tax-ICMS tax collection growth. For 2015, operating margins should be distorted by the inclusion of non-recurring revenues. As a response, ERio has launched a refinance agreement with marginal increases in tax collections and some measures to control expenditures that may not be sufficient to provide a sustainable fiscal trajectory. ERio projects that the pace of personnel expenditure growth should moderate to an annual average of 7% over the next three years, which is lower than the 9.2% posted in 2014. This is challenging considering the political costs involved. ERio's personnel expenditures reached BRL34.6 billion in 2014, which corresponds to a high 51.8% of operating revenues in a growing historical trend. Given the high demand for investments in urban mobility and infrastructure associated with the World Cup and the Olympic Games to be held in 2016, ERio has entered into significant credit agreements. The state obtained BRL7.6 billion in 2014, and another BRL8.6 billion is expected to be added to the state's debt structure until 2017, according to the latest Fiscal Adjustment Program signed with the Federal Government in 2014. ERio's debt burden increased 5.5% in 2014, reaching BRL83.2 billion, considered higher when compared to other large states in Brazil. In 2015, Rioprevidencia should receive some BRL6.2 billion from the usage of judicial deposits held by the state. Rioprevidencia can also enter into additional oil securitization since it holds a USD5 billion. In 2014, Rioprevidencia issued the equivalent to USD3.1 billion, which is considered as 'net indirect debt'. Although some corrective initiatives were adopted a few years ago to improve its pension's actuarial deficit, ERio allocates a large amount of resources to its proprietary pension system. RATING SENSITIVITIES Downgrade Factors: Any further negative action affecting the Brazilian sovereign ratings could have a direct corresponding effect on the state's ratings. The ratings could be reviewed should ERio suffer from any adverse change in its regulatory environment such as, but not limited to, changes in oil royalty regulation and dynamics. Upgrade Factors: Despite unlikely in the short run, the ratings could benefit from an overall improvement in budgetary performance coupled with a larger tax-contribution base, despite this being constrained by the increased debt levels. A decline in indebtedness levels could also positively affect the ratings. Located in the southeastern region of Brazil, Rio de Janeiro is the second largest state in Brazil in terms of economic stature, with about average infrastructure level in relation to other states in Brazil. KEY ASSUMPTIONS The ratings and Outlooks are sensitive to these assumptions: -- Fitch assumes a strong level of sovereign support for Rio de Janeiro given that the state's most relevant creditor is the Federal Government. -- Global assumptions are consistent with Fitch's published 'Global Economic Outlook', including the subdued outlook for commodity prices. Fitch has taken these rating actions on ERio: -- Foreign and Local Currency Long-Term IDR downgraded to 'BB+' from 'BBB-'; Outlook Negative -- Foreign and Local Currency Short-Term IDR downgraded to 'B' from 'F3'; -- National Long-term downgraded to 'A+(bra)' from 'AA-(bra)'; Outlook Negative; -- National Short-term rating downgraded to 'F1(bra)' from 'F1+(bra)'. ========================== C A Y M A N I S L A N D S ========================== 1OAK INVESTMENT: Shareholders' Final Meeting Set for Sept. 30 ------------------------------------------------------------- The shareholders of 1OAK Investment Strategies Limited will hold their final meeting on Sept. 30, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Giovanni Bonaccorso 51 Hays Mews London W1J 5QJ UK Telephone: +44 2070167979 CHARTER LIMITED: Members' Final Meeting Set for Sept. 30 -------------------------------------------------------- The members of Charter Limited will hold their final meeting on Sept. 30, 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 Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands GMPIM EQUITY: Shareholder to Hear Wind-Up Report on Oct. 16 ----------------------------------------------------------- The shareholder of GMPIM Equity Opportunities Feeder Fund, Ltd will hear on Oct. 16, 2015, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue George Town Grand Cayman, KY1-9005 Cayman Islands c/o Kim Charaman Telephone: (345) 943-3100 ITAU LATINAMERICA: Member to Hear Wind-Up Report on Sept. 28 ------------------------------------------------------------ The member of Itau Latin America Long Short Master Fund will hear on Sept. 28, 2015, at 10:10 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Anna Cummings Telephone: +1 (345) 949 9876 or 815 1858 Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands ITAU LATIN AMERICA: Member to Hear Wind-Up Report on Sept. 28 ------------------------------------------------------------- The member of Itau Latin America Long Short (Offshore) Fund will hear on Sept. 28, 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: Elian Fiduciary Services (Cayman) Limited c/o Anna Cummings Telephone: +1 (345) 949 9876 or 815 1858 Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands NESOI LIMITED: Members' Final Meeting Set for Sept. 30 ------------------------------------------------------ The members of Nesoi Limited will hold their final meeting on Sept. 30, 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 Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands PRUPIM VIETNAM: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Prupim Vietnam Property Fund Limited received on Sept. 22, 2015, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Jonathan Culshaw Telephone: +852 3195 7200 Facsimile: +852 3195 7200 Harneys Services (Cayman) Limited Harbour Place, 4th Floor 103 South Church Street P.O. Box 10240 Grand Cayman KY1-1002 Cayman Islands PYRAMIS GLOBAL: Member Receives Wind-Up Report ---------------------------------------------- The member of Pyramis Global Market Neutral Fund, Ltd. received on Sept. 24, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Piers Dryden Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 PYRAMIS GLOBAL MASTER: Member Receives Wind-Up Report ----------------------------------------------------- The member of Pyramis Global Market Neutral Master Fund, Ltd. received on Sept. 24, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Piers Dryden Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 PYRAMIS GLOBAL FUND: Member Receives Wind-Up Report --------------------------------------------------- The member of Pyramis Global Health Care Long/Short Fund, Ltd. received on Sept. 24, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Piers Dryden Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 PYRAMIS GLOBAL HEALTH: Member Receives Wind-Up Report ----------------------------------------------------- The member of Pyramis Global Health Care Long/Short Master Fund, Ltd. received on Sept. 24, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Piers Dryden Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 YSPOLIN GP: Shareholders' Final Meeting Set for Sept. 30 -------------------------------------------------------- The shareholders of Yspolin GP Limited will hold their final meeting on Sept. 30, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Liliya Vidanova Unit No: 30-01-1659 Jewellery & Gemplex 3 Plot No: DMCC-PH2-J&GPlexS Jewellery & Gemplex Dubai United Arab Emirates Telephone: +971 55 868 06 98 =============== C O L O M B I A =============== * COLOMBIA: Low Oil Prices Lead to Rising Corp. Taxes, Fitch Says ----------------------------------------------------------------- Fitch Ratings expects Colombian corporates cash flows to continue seeing pressure from rising taxes as the Colombian government seeks to offset declines in tax revenues from the oil sector. This pressure could be alleviated if the government gains the ability to expand its tax base. Consumers' disposable income has been also hit by higher personal income tax rates and inflation pressure caused by the sharp currency depreciation. Increasing corporate exports will not be a short term solution for the woes faced by issuers. Corporates will need time to rebuild export channels following the sharp appreciation of the U.S. dollar against the Colombian peso during 2015. Fitch revised its previous expectations of GDP growth down to 3.0% in 2015 and 3.5% in 2016. Weakening terms of trade and low oil prices have hurt the economy. Economic growth will continue to depend upon the country's fourth generation infrastructure projects (4G) and a dynamic construction sector. The Rating Outlook for Colombian corporates is Stable, despite challenging economic conditions. Most corporates continue to maintain conservative credit profiles despite increasing leverage trends. Refinancing risk remains manageable due to robust liquidity position and access to diverse funding sources. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Foreign Investment Tops US$7.3BB in 3 Years ----------------------------------------------------------------- Dominican Today reports that Dominican Republic Export and Investment Center (CEI-RD) director Jean Alain Rodriguez said direct foreign investment (FDI) in the country topped US$7.3 billion during the last three years, or 37% of the total received by the Caribbean. Mr. Rodriguez said most of the FDI flowed to retailers, industry, mining and real estate, an average of 57% of the country's total during that period, according to Dominican Today. "The Dominican economy is more dynamic and increasingly diversified, increasing investment in non-traditional economic sectors such as renewable energy, infrastructure and logistics," the report quoted Mr. Rodriguez as saying. Speaking in a working breakfast of the young business leaders grouped in ANJE, Rodriguez said around US$67.6 million have been invested in exports, which created 40,000 jobs nationwide, the report notes. "And we have a projection of 7,000 jobs this year," Mr. Rodriguez added. The official added that exports grew an average of 5% yearly, from US$5.9 billion to US$9.9 billion from 2004 to 2014, a jump of 67%, the report relays. * DOMINICAN REPUBLIC: Businesses Waylay 200 Labor Unions -------------------------------------------------------- Dominican Today reports that Dominican Republic's business sector has eliminated around 200 workers organizations, collective bargaining committees in the last 10 years, Rafael Pepe Abreu, president of the labor unions grouped in CNUS revealed. Mr. Abreu said management has committed the actions via layoffs, firings, transfers, forced resignations or isolation of workers who have sought to form a union, according to Dominican Today. The report notes that Mr. Abreu said the practices are more common in hotels, free zone companies, manufacturing, suppliers and retail, among others. Mr. Abreu said marked interests between capital and labor jeopardize the unions, which even despite progress around the world in that aspect, is reflected in the major rift between the two sectors, the report relates. "A business leader may be the most democratic person in the world and even touts it, but if you tell him to allow their workers to form a union, that's where democracy ends," Mr. Abreu said, the report discloses. Nonetheless Mr. Abreu acknowledged having accomplished the traditional collective agreements, but noted that it's not the same as a union and cited the cases of food processing companies, sugar mills, soft drink makers among others, the report relays. ============= J A M A I C A ============= DIGICEL GROUP: Expects More Competition --------------------------------------- RJR News reports that Digicel Group Limited has told its potential shareholders that it faces the risk of more competition in many of its markets. In regulatory filings, the telecoms company said additional licenses may be awarded to new entrants, especially in markets with only two providers, according to RJR News. Digicel did not identify any of the markets in which it could face increased competition from a new entrant, the report discloses. The company, which started in Jamaica in 2001, now operates in 31 countries in the Caribbean and the Pacific region. It has more than 13 million subscribers in those markets, offering mobile, business solutions, cable television and broadband services. * * * As reported in the Troubled Company Reporter-Latin America on May 25, 2015, Fitch Ratings has affirmed the ratings of Digicel Group Limited (DGL) and its subsidiaries Digicel Limited (DL) and Digicel International Finance Limited (DIFL), collectively referred to as 'Digicel' as follows. DGL -- Long-term Issuer Default Rating (IDR) at 'B' with a Stable Outlook; -- USD 2.5 billion 8.25% senior subordinated notes due 2020 at 'B-/RR5'; -- USD 1 billion 7.125% senior unsecured notes due 2022 at 'B -/RR5'. DL -- Long-term IDR at 'B' with a Stable Outlook; -- USD 250 million 7% senior notes due 2020 at 'B/RR4'; -- USD 1.3 billion 6% senior notes due 2021 at 'B/RR4'; -- USD 925 million 6.75% senior notes due 2023 at 'B/RR4'; DIFL -- Long-term IDR at 'B' with a Stable Outlook; -- Senior secured credit facility at 'B+/RR3'. UC RUSAL: Plans to Cut Further Aluminum Production --------------------------------------------------- RJR News reports that a senior executive at UC Rusal has conceded that weak aluminum prices are likely to result in production cuts of as much as a further 3.5 million tons globally by the end of the year. UC Rusal, which has mining operations in Jamaica, is assessing the implications, according to RJR News. Oleg Mukhamedshin, Rusal's deputy CEO, said there have already been cuts of around 1.5 million tonnes of capacity this year, to date, the report notes. The report relates that the majority of the new cuts will come from China, where more than 60 per cent of capacity is unprofitable at current prices. Rusal expects two-to-three million tonnes of cuts in China. * * * As reported in the Troubled Company Reporter-Latin America on June 24, 2015, RJR News said Jamaica Mining Minister Phillip Paulwell, who returned to Jamaica from his trip to Russia, has declared that all is well with the arrangements that have been made for full restoration of operations at the Alumina Partners of Jamaica (Alpart) bauxite/alumina plant at Nain in St. Elizabeth. After being closed for six years, work resumed at the plant earlier this year, but only in respect of mining of the ore for shipment to Russia, in the first instance, according to RJR News. The phased resumption plan should see the resumption of alumina refining towards the end of 2016, the report said. TCRLA, citing RJR News, reported on April 30, 2015, that UC Rusal has re-ignited its war of words with the London Metal Exchange, saying it has allowed financial speculators to distort prices. Vladislav Soloviev, Chief Executive Officer of the heavily indebted Russian group, said the price of aluminum traded on the LME has been depressed by as much as 30 per cent by the actions of money-market players, according to RJR News. UC Rusal has been involved in a bitter legal wrangle with the LME over plans to reform the exchange's warehousing system and introduce rules to tackle long queues that built up in the aftermath of the global financial crisis, the report said. =========== M E X I C O =========== MEXICO: Foreign Reserves Fall by $479 Million --------------------------------------------- EFE News reports that Mexico's foreign reserves fell by $479 million to $182.99 billion, the Bank of Mexico said. Gold and foreign currency reserves fell in the week ending Sept. 18 mainly due to the daily auctions of dollars without a minimum price, the central bank said, according to EFE News. Foreign reserves have fallen by $10.24 billion since the end of 2014, the Bank of Mexico said in a statement, the report notes. The M1 money supply, which includes currency, coins and demand deposits, rose by MXN548 million (about $32.8 million) to MXN1.08 trillion (some $64.55 billion), the central bank said, the report relays. The money supply has increased by MXN15.89 billion ($951.5 million) since Jan. 1, the report discloses. ====================== P U E R T O R I C O ====================== CERTENEJAS INCORPORADO: Case Summary & 7 Top Unsecured Creditors ---------------------------------------------------------------- Posted on September 23, 2015 by jhonas_author Debtor: Certenejas Incorporado PO Box 1753 CIDRA, PR 00739 Case No.: 15-07313 Nature of Business: Short-term guest house Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Charles Alfred Cuprill, Esq. CHARLES A CUPRILL, PSC LAW OFFICES 356 Calle Fortaleza, Second Floor San Juan, PR 00901 Tel: 787 977-0515 E-mail: cacuprill@cuprill.com Total Assets: $4.6 million Total Liabilities: $4.8 million The petition was signed by Luis J. Meaux Vazquez, president. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/prb15-07313.pdf PUERTO RICO ELECTRIC: Reaches Deal w/ Lenders to Restructure Debt ----------------------------------------------------------------- Nick Brown, Megan Davies and Jessica DiNapoli at Reuters report that Puerto Rico's power authority PREPA said it reached a deal with lenders to restructure $700 million in matured debt, a key step in turning around the utility after it secured a similar deal with bondholders earlier in September. Reducing PREPA's $9 billion in debt has been seen as a critical test for the U.S. territory as it tries to forge a broader restructuring of $72 billion in total debt, according to Reuters. The report notes that the deal means PREPA can turn its full attention to bond insurers, the only creditor class yet to agree to restructure. In a statement, PREPA said the deal with fuel-line lenders -- a syndicate of Puerto Rican banks and asset manager Solus -- would give the lenders the option to convert existing credit either to term loans or new securitization bonds, the report discloses. The banks include Banco Popular, First Bank Puerto Rico and units of the Bank of Nova Scotia and Oriental Bank, the report relates. The term loans would carry a fixed interest rate of 5.75 percent over 6 years, while the new securitization bonds would mean a 15 percent haircut on principal, the report discloses. The bond option would be on the same terms as the new bonds PREPA offered its bondholders when they agreed to an exchange earlier this month, PREPA said, the report says. Marcelo Gomez-Wiuckstern, a spokesman for Scotiabank, praised the deal, telling Reuters he was "pleased that the syndicate of fuel line lenders and PREPA have reached a mutually beneficial agreement." A consensual resolution at PREPA would set a positive tone as Puerto Rico tries to restructure debt from myriad public issuers throughout the island, the report discloses. The alternative -- a default, likely followed by litigation -- could prove costly and spook investors, the report notes. Though it now has deals in place with two of three main creditor bodies, PREPA is not out of the woods, Reuters says. The last holdouts -- bond insurers including National Public Finance Guarantee Corp and Assured Guaranty -- recently refused to extend an expiring forbearance agreement that had barred them from pursuing legal remedies while the sides hashed out a restructuring, the report relays. Since then, NPFG has commissioned the Puerto Rico Energy Commission to force PREPA to raise its rates to service its debt, the report says. A source close to the insurers told Reuters they are set on avoiding a haircut, and are prepared to "go to the mat," even if it means litigation or pursuing a receiver to control PREPA's finances. * * * 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. STANDARD REGISTER: Court Approves WilliamsMarston to Provide CRO ---------------------------------------------------------------- SRC Liquidation Company and its debtor-affiliates sought and obtained permission from the Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware to employ WilliamsMarston LLC to provide interim management services, and designate Landen C. Williams as replacement Chief Restructuring Officer and Treasurer to the Debtors, nunc pro tunc to August 26, 2015. The Debtors anticipate that during these Chapter 11 Cases, in addition to the ordinary course duties of a chief restructuring officer that typically arise post-sale in a liquidation context, Mr. Williams and the WilliamsMarston Staff will perform a broad range of services, including, without limitation, the following: (a) maintaining a short-term cash flow forecasting process and implementing cash management strategies to maintain the wind-down budget; (b) supporting the Debtors' counsel with the execution of strategies and initiatives to wind-down the Debtors' estates; (c) participating in stakeholder discussions, negotiations and diligence meetings along with the Debtors' counsel; (d) participating in claims processing, estimation, analysis and reporting to support the pursuit of a plan of liquidation; and (e) assisting with all such other liquidation matters and wind- down activities as may be requested by the Debtors' counsel. WilliamsMarston will be paid at these hourly rates: Landen C. Williams, CRO $350 Jonathan T. Marston, Partner $350 Joseph Furnari, Managing Director $300 Paul Poirier, Director $275 Meg Macumber, Manager $250 Euan Milne, Consultant $225 Lynette Tsai, Consultant $225 Partner $350 Managing Director $300 Director $275 Manager $250 Consultant $225 WilliamsMarston will also be reimbursed for reasonable out-of- pocket expenses incurred. Landen C. Williams, co-founder and partner of WilliamsMarston, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. WilliamsMarston can be reached at: Landen C. Williams WILLIAMSMARSTON LLC 800 Boylston Street, 16th Floor Boston, MA 02199 Tel: (617) 306 - 0951 E-mail: landen@williamsmarston.com About Standard Register Standard Register provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. The Official Committee of Unsecured Creditors tapped Lowenstein Sandler LLP as its counsel and Jefferies LLC as its exclusive investment banker. *********** 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 * * *