/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/151014.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, October 14, 2015, Vol. 16, No. 203 Headlines A R G E N T I N A CORDOBA: Moody's Assigns Caa1 Rating to ARS200MM Notes B R A Z I L BRAZIL: ETF Halts Six-Day Advance as Corruption Scandal Expands BRAZIL: Real Posts Best Week Since 2011 as Fiscal Debate Eases SAO MARTINHO: S&P Affirms 'BB+' CCR; Outlook Stable USINAS SIDERURGICAS: S&P Lowers CCR to 'B+'; Outlook Negative C A Y M A N I S L A N D S ABSOLUTE RETURN: Creditors' Proofs of Debt Due Oct. 20 ALPINE SWIFT: Creditors' Proofs of Debt Due Oct. 29 CHININO INVESTMENT: Creditors' Proofs of Debt Due Oct. 26 CRESTLINE EVENT: Commences Liquidation Proceedings EAST STREET 2002-I: Commences Liquidation Proceedings EAST STREET 2004-I: Commences Liquidation Proceedings HBC CAYMAN: Creditors' Proofs of Debt Due Oct. 20 JELLICOE INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 26 MAXAM INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 19 ODEBRECHT OFFSHORE: Fitch Cuts Senior Secured Notes Rating to 'B-' OPTIMAL AUSTRALIA: Commences Liquidation Proceedings PLANE ENGINEERING: Creditors' Proofs of Debt Due Oct. 26 TOP WORLD: Commences Liquidation Proceedings TRIBAL FINANCE: Creditors' Proofs of Debt Due Oct. 19 C H I L E GEOPARK LATIN AMERICA: S&P Affirms 'B' Rating; Outlook Negative D O M I N I C A N R E P U B L I C AES DOMINICANA: Seaweed Snarls Power Company DOMINICAN REP: Drought's Impact on Foods Pace 1.72% Higher Prices DOMINICAN REP: World Bank Grants US$50MM Loan to Boost Education P U E R T O R I C O PUERTO RICO: May Not Be Able to Avoid Defaults, Adviser Says - - - - - ================= A R G E N T I N A ================= CORDOBA: Moody's Assigns Caa1 Rating to ARS200MM Notes -------------------------------------------[---------- Moody's Latin America Agente de Calificacion de Riesgo has assigned Caa1 -- Global Scale local currency debt rating -- and Baa3.ar rating -- on Argentina National Scale in local currency -- to the 2015 Notes for up to ARS200 million, to be issued by the Municipality of Cordoba. The ratings are in line with the municipality's long term local currency ratings, which carry negative outlook. RATINGS RATIONALE The new 2015 Notes, authorized by Law N§12.378 and Mayor's Decree N§3.084/15 consider a maximum issuance amount of up to ARS200 million. According to Decree N§3.084, the proceeds of this new debt will be used to improve the City's debt maturity profile. The Notes will have final tenure of 18 months and will amortize in four equal and quarterly installments starting nine months after the issuance date. They will be backed by the "Contribution over Commerce, Industry, and Service Companies" and unlike the other bonds already issued by this City they will not count with a reserve fund as a liquid guarantee. The assigned debt ratings reflect Moody's view that the terms and conditions of these Notes do not differentiate their credit quality from the general solvency and credit quality of this Municipality's reflected in its long-term issuer ratings in local currency of Caa1/Baa3.ar. The total amount authorized represents an estimated 2.3% of the municipality's 2015 expected total revenues. After this debt issuance, Moody's expects that the ratio of total debt as percentage of total revenues will increase to 10% from 8% reported at the end of 2014 FY. The assigned ratings are based on preliminary documentation received by Moody's as of the rating assignment 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 these Notes 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 issuer ratings, Moody's does not expect upward pressures in the Municipality of Cordoba'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 Municipality of Cordoba. Conversely, a sharp deterioration of the City's financial results, coupled with higher debt levels could add downward pressure to the assigned ratings. The Municipality of Cordoba could also be downgraded if the negative outlook on the sovereign rating materializes into a rating downgrade. =========== B R A Z I L =========== BRAZIL: ETF Halts Six-Day Advance as Corruption Scandal Expands --------------------------------------------------------------- Emma Orr at Bloomberg News reports that Brazil's biggest exchange- traded fund fell, ending a six-day advance, after local media reported that an investigation into corruption at the state- controlled oil producer had grown to include kickbacks allegedly received by the head of the lower house. The iShares MSCI Brazil Capped ETF slumped 2.2 percent in New York after the nation's three largest newspapers reported that lawmaker Eduardo Cunha allegedly used accounts in Switzerland to receive kickbacks from a Petroleo Brasileiro SA contract in Africa, according to Bloomberg News. Mr. Cuhna denied any wrongdoing. Petrobras's American depositary receipts sank 4.4 percent as oil declined. Local markets were closed for a holiday. The newspaper reports added to the turmoil in Brazil's already fractured political landscape, sending the country's equities lower even as most stocks from developing nations gained Oct. 12, Bloomberg News relates. President Dilma Rousseff is struggling to win support for austerity measures she says are needed to shore up the budget and stave off further cuts to the country's credit rating, Bloomberg News says. The Ibovespa is the worst performing major stock gauge this year in dollar terms as forecasts call for the country to post its longest recession since the 1930s, Bloomberg News notes. "I always characterize the situation in Brazil as a Russian roulette with a fully-loaded pistol," Juan Carlos Rodado, the director of Latin America research at Natixis North America LLC, said from New York, Bloomberg News relays. "We have a lot of domestic noise," Mr. Rodado added. The Ibovespa stock gauge extended a nine-day advance on Oct. 9 and the real climbed as the political debate over measures to revive the nation's finances eased and speculation the U.S. will refrain from raising interest rates spurred an advance in emerging markets, Bloomberg News discloses. A cabinet reshuffle spurred optimism the government was making progress on strengthening the country's fiscal accounts, Bloomberg News adds. BRAZIL: Real Posts Best Week Since 2011 as Fiscal Debate Eases -------------------------------------------------------------- Denyse Godoy and Paula Sambo at Bloomberg News report that Brazil's real extended its best weekly rally since 2011 and stocks gained as the political debate over measures to shore up the budget eased and speculation the U.S. will refrain from raising interest rates spurred an advance in emerging markets. The currency climbed to a one-month high after President Dilma Rousseff on Oct. 2 announced a cabinet reshuffle as she tries to rebuild the nation's finances to avoid another credit-rating downgrade, according to Bloomberg News. The advance accelerated as signs of weakness in the American economy sparked bets the Federal Reserve won't boost borrowing costs this year, Bloomberg News relates. The benchmark stock gauge gained for a ninth day, posting its longest winning streak in two years, Bloomberg News discloses. "There's some sort of relief after so much anxiety," Lauro Vilares, an analyst at brokerage Guide Investimentos, said from Sao Paulo, Bloomberg News notes. "It's good to see some real action by the government. Meanwhile, the Fed speculation helps with the overall mood," Mr. Vilares added. The real added 0.6 percent to 3.7633 per dollar on Oct. 9, bringing last week's gain to 4.5 percent. The Ibovespa advanced 0.5 percent to 49,338.41, Bloomberg News discloses. Miner Vale SA rose with commodities, while lender Itau Unibanco Holding SA dropped, Bloomberg News relays. Brazil's Congress passed most of the budget cuts, pension reforms and tax increases designed by Rousseff's economic team to rein in government spending and curb above target inflation, Bloomberg News notes. Mauro Leos, a senior analyst at Moody's Investor Service, said that the government is showing intention to make progress on strengthening the country's fiscal accounts, Bloomberg News relays. Still, President Rousseff moved a step closer to impeachment when an audit court recommended that Congress reject her 2014 budget accounting amid allegations her government broke fiscal laws to hide a deficit, Bloomberg News notes. The government will demonstrate she did nothing wrong, the presidency said in an e- mailed statement after the ruling was announced, Bloomberg News relays. The next day, Lower House President Eduardo Cunha said he had received two new impeachment requests, bringing the total to eight, Bloomberg News says. "When we assess events over the past few weeks, there has been no substantive shift on fundamentals, it is somewhat of a debate on whether the impeachment/resignation risk is credit positive or negative," Siobhan Morden, the head of Latin America fixed income at Jefferies Group LLC in New York, said in a report obtained by Bloomberg News. A regime change "could provide some political capital and commitment for policy re-balancing and potential for an important shock to investor sentiment," she wrote, Bloomberg News relays. In the next few weeks, the political situation in Brazil will still set the trend for stocks, according to Pedro Paulo Afonso, an investments director at brokerage TOV Corretora, Bloomberg News relays. "There's a lot of uncertainty hanging over the market," he said from Sao Paulo, Bloomberg News adds. SAO MARTINHO: S&P Affirms 'BB+' CCR; Outlook Stable --------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB+' global scale and 'brAA+' Brazil national scale corporate credit ratings on Sao Martinho S.A. (SMO). The outlook is stable. S&P do not rate any of the company's debt. The ratings affirmation reflects Sao Martinho's relevant sugar export operations, which reduce its exposure to the Brazilian domestic market and should allow the company to improve its margins and overall EBITDA amid Brazil's currency depreciation. Sao Martinho's operations are cost-efficient compared with its industry peers, providing for sound free cash flow (FCF) generation. In addition, S&P expects the company to maintain its fairly stable leverage levels and its liquidity position. S&P could rate Sao Martinho above the sovereign foreign currency rating on Brazil because of its resilience, visible in its FCF generation and its limited exposure to the effect of the currency depreciation on its debt payments, due to its efficient hedging strategy. The stable outlook reflects S&P's view that Sao Martinho will continue to generate stable FOCF despite the current environment of low international sugar prices, mostly due to its strong operating efficiency. In addition, given the company's commitment to reducing leverage, S&P expects that most of the cash generated will be used to pay debt, which should also result in the maintenance of an "adequate" liquidity position over the next 12 to 18 months. S&P expects SMO to maintain debt to EBITDA less than 3.5x and FOCF to remain positive annually. S&P could downgrade the ratings if adverse weather conditions undermine its sugarcane crushing output, which in turn increases its idle capacity and lowers operating efficiency. This scenario, coupled with low sugar and ethanol prices, inflationary pressures, and inefficient working capital management and high capex, would result in negative FOCF generation, and debt to EBITDA approaching 4x or FFO to debt less than 20% on a consistent basis. A more- aggressive growth strategy through debt-funded acquisitions could also pressure ratios and liquidity, resulting in a negative rating action. The company's inability to sustain the liquidity cushion to pass the sovereign stress scenario could also trigger a downgrade. An upgrade is less likely in the short term, but possible if the company succeeds in reducing debt levels while it maintains sound EBITDA and FCF generation, resulting in debt to EBITDA consistently below 3.0x, FFO to debt consistently above 30%, and FOCF to debt consistently above 15%. USINAS SIDERURGICAS: S&P Lowers CCR to 'B+'; Outlook Negative ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Usinas Siderurgicas de Minas Gerais S.A., including global scale corporate credit and issue-level ratings to 'B+' from 'BB-'. S&P also lowered its Brazilian national scale corporate credit and issue-level ratings on the company to 'brBBB-' from 'brA'. The outlook on the corporate credit ratings is negative. S&P has also revised its recovery rating on Usiminas' senior unsecured debt to '3L'--reflecting lower recovery expectations, in the 50%-70% range--from '3H'. The downgrade reflects weak market conditions in Brazil and intense competition in the global markets, resulting in low steel prices and margins. The downgrade also reflects the weaker Brazilian real that will raise Usiminas' debt, which should result in "highly leveraged" credit metrics for the next several quarters. In addition, uncertainty over recovery in volumes and a consistent breach in financial covenants will continue to pressure cash flows and liquidity. Despite the company's efforts to increase steel exports, which now account for about 30% of revenues, cash generation continues to diminish, mainly reflecting still depressed domestic steel demand. This has led Usiminas to shut down two of its blast furnaces, which were less efficient. In addition, the low global iron ore prices have also led Usiminas to reduce its iron ore production to consumption levels of about 4.7 million tons in 2015. S&P expects market conditions to remain challenging and highly uncertain for the next several quarters, which should continue to limit the company's ability to generate cash. The real's depreciation, which has been highly volatile, should push up Usiminas' debt. Interest expenses have also increased due to the strengthening dollar and spike in Brazil's interest rates, weakening its funds from operations (FFO). Those factors, combined with the lower-than-expected cash generation, should weaken credit metrics further than S&P expected. ========================== C A Y M A N I S L A N D S ========================== ABSOLUTE RETURN: Creditors' Proofs of Debt Due Oct. 20 ------------------------------------------------------ The creditors of Absolute Return Management International Limited are required to file their proofs of debt by Oct. 20, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 17, 2015. The company's liquidator is: Rosana Hollins Telephone: +350 200 76173 Sovereign Trust (Gibraltar) Limited Suite 2B, 143 Main Street Gibraltar ALPINE SWIFT: Creditors' Proofs of Debt Due Oct. 29 --------------------------------------------------- The creditors of Alpine Swift Ltd are required to file their proofs of debt by Oct. 29, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 15, 2015. The company's liquidator is: Andrea Nogueira Rua dos Pinheiros 498 8a Andar CJ 81 Sao Paulo- SP- Brasil- Cep 05 422-010 CHININO INVESTMENT: Creditors' Proofs of Debt Due Oct. 26 --------------------------------------------------------- The creditors of Chinino Investment Ltd. are required to file their proofs of debt by Oct. 26, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 16, 2015. The company's liquidator is: Morval Bank & Trust Cayman Ltd. Appleby Tower, 4th Floor 71 Fort Street, George Town P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands Telephone: +1 (345) 949-9808 CRESTLINE EVENT: Commences Liquidation Proceedings -------------------------------------------------- On Sept. 4, 2015, the sole shareholder of Crestline Event Arbitrage Offshore Fund, Ltd. passed a resolution to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 EAST STREET 2002-I: Commences Liquidation Proceedings ----------------------------------------------------- On Sept. 7, 2015, the sole shareholder of East Street Referenced Linked Notes, 2002-I Limited passed a resolution to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 EAST STREET 2004-I: Commences Liquidation Proceedings ----------------------------------------------------- On Sept. 7, 2015, the sole shareholder of East Street Referenced Linked Notes, 2004-I Limited passed a resolution to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 HBC CAYMAN: Creditors' Proofs of Debt Due Oct. 20 ------------------------------------------------- The creditors of HBC Cayman Holdings Inc. are required to file their proofs of debt by Oct. 20, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 17, 2015. The company's liquidator is: Gene Dacosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands JELLICOE INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 26 ------------------------------------------------------------- The creditors of Jellicoe International Ltd. are required to file their proofs of debt by Oct. 26, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 16, 2015. The company's liquidator is: Morval Bank & Trust Cayman Ltd. Appleby Tower, 4th Floor 71 Fort Street, George Town P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands Telephone: +1 (345) 949-9808 MAXAM INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 19 ---------------------------------------------------------- The creditors of Maxam International Ltd. are required to file their proofs of debt by Oct. 19, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 28, 2015. The company's liquidator is: Amicorp Cayman Fiduciary Limited The Grand Pavilion Commercial Centre, 2nd Floor 802 West Bay Road P.O. Box 10655 Grand Cayman KY1-1006 Cayman Islands c/o Nicole Ebanks-Sloley Telephone: (345) 943-6055 ODEBRECHT OFFSHORE: Fitch Cuts Senior Secured Notes Rating to 'B-' ------------------------------------------------------------------ Fitch Ratings downgrades the senior secured notes issued by Odebrecht Offshore Drilling Finance Ltd. (OODFL) to 'B-' from 'B+' and the senior secured notes issued by Odebrecht Drilling Norbe VIII/IX Ltd. to 'B' from 'BB-'. The ratings remain on Rating Watch Negative. A full list of rating actions follows at the end of this release. Fitch's downgrades reflect the following: (i) the termination of the ODN Tay IV charter and services agreements by the off-taker, Petroleo Brasileiro S.A. (Petrobras, 'BBB-', Negative Outlook), (ii) the impact of Petrobras' additional reduction in capital expenditures (capex) on its willingness to honor existing contracts upon a performance breach or bankruptcy of the operator, and (iii) the impact of the ODN Tay IV contract terminations on the credit quality of the sponsor. The Negative Watch reflects the potential direct impact on OODFL if the notes are either accelerated or restructured as a result of the cancellation of the Tay IV charter and service agreements and the sponsor's inability to re-charter the vessel or replace the asset by December 23. The Negative Watch on Odebrecht Drilling Norbe VIII/IX Ltd. reflects the potential impact of the ODN Tay IV contract terminations, and the potential acceleration of the OODFL notes, on the credit quality of the sponsor which could affect the sponsor's ability to support the Norbe VIII/IX transaction if needed. Additionally, the charter and services agreements have termination clauses that include bankruptcy of the sponsor; this risk may be heightened if the credit quality of the sponsor deteriorates. KEY RATING DRIVERS Tay IV Contract Terminations Petrobras cancelled the charter and services agreement for ODN Tay IV. Cancellation of the Tay IV contracts further reduces cash flows to OODFL and renders the transaction more dependent on cash reserves and sponsor support to make future debt service payments. Continued depletion of cash reserves will also increase the size of the balloon payment, heightening refinancing risk. Failure to enter into a new contract or replace the asset within 90 days may trigger an event of default and a potential acceleration of the notes that could lead to the disposition of the collateral. In contrast, Norbe VIII and Norbe IX, the assets within Odebrecht Drilling Norbe VIII/IX Ltd, continue to perform well, enabling the transaction to pay expenses and timely debt service from cash flow generated by contract payments. Petrobras' Willingness to Honor Existing Contracts As a response to depressed oil prices, currency devaluations and increasing financial costs, Petrobras recently revised its business plan. These new revisions include additional expense reductions of 11% and 30% for 2015 and 2016, respectively. These are in addition to the 37% reduction announced in June 2015. As part of the measures, Petrobras expects to reduce its active rig fleet to approximately 35 units from the current 45 by releasing rigs coming off charter, releasing rigs that have not met the performance thresholds, and placing a few rigs on stand-by (while paying a reduced rate). In this regard, Petrobras will continue to prioritize the most strategic and best operating assets within the chartered fleet, which could potentially affect its willingness to honor existing contracts. Deteriorating Sponsor Credit Quality The performance issues experienced by some of the rigs during 2014 and 2015 led to lower revenues and breach of performance triggers, trapping cash within the OODFL transaction and preventing dividends from being released to the sponsor. With the cancellation of the Tay IV contracts, this is magnified and could add more pressure to OOG's liquidity position, affecting its ability to support the transactions if needed and increasing the reliance on OOG's shareholder support. RATING SENSITIVITIES The ratings are sensitive to changes in the credit quality of Petrobras as offtaker, implications of the ongoing investigations into the Odebrecht Group and resolution by the Office of the Controller General of the Union (Controladoria Geral da Uniao - CGU) of the temporary ban, changes in the credit quality of Odebrecht, and the operating performance of the underlying assets. The ratings are also sensitive to a potential acceleration or restructure of the OODFL notes and its potential impact on the sponsor's financial profile and any potential impact to the remaining contracts. Additionally, the ratings are sensitive to changes in the Brazilian oil and gas industry dynamics and Fitch's perception of Petrobras' willingness to honor the existing conditions under the contracts. DUE DILIGENCE USAGE No third party due diligence was provided or reviewed in relation to this rating action. TRANSACTION SUMMARY The Odebrecht Drilling Norbe VIII/IX Ltd notes are backed by the flows related to the charter and services agreements signed with Petrobras for the use of the dynamically positioned ultra- deepwater (UDW) drillships Norbe VIII and Norbe IX. The transaction also benefits from a naval mortgage on the vessels. The OODFL notes are currently backed by the flows related to the charter and services agreements signed with Petrobras for the use of the dynamically positioned UDW drillships ODN I and ODN II and the UDW semi-submersible Norbe VI. The transaction also benefits from a naval mortgage on the vessels, including the ODN Tay IV. OOG is the operator of the drilling rigs and primary sponsor of the transactions. OOG is the largest Brazilian operator of UDW rigs chartered to Petrobras, with seven UDW rigs in its fleet. Odebrecht Oleo e Gas (OOG, NR), the transaction's sponsor, may approach the OODFL noteholders to renegotiate the terms of the notes as an alternative to avoid an acceleration of the notes and in order to preserve the integrity of the other three contracts. Fitch notes that any potential exchange or restructure of the notes to avert probable payment default and that may affect the economic terms, even if agreed upon by the noteholders, may be considered by Fitch as a Distressed Debt Exchange as described in Fitch's 'Global Structured Finance Distressed Debt Exchange Criteria' Fitch has downgraded the following ratings: OODFL -- Series 2013-1 senior secured notes to 'B-' from 'B+'; -- Series 2014-1 senior secured notes to 'B-' from 'B+'. The ratings remain on Rating Watch Negative Odebrecht Drilling Norbe VIII/IX Ltd. -- Series 2010-1 senior secured notes to 'B' from 'BB-'. The ratings remain on Rating Watch Negative. OPTIMAL AUSTRALIA: Commences Liquidation Proceedings ---------------------------------------------------- On Sept. 17, 2015, the members of Optimal Australia Absolute Fund passed a resolution to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: George Colman Optimal Australia, Level 2 121 Flinders Lane, Melbourne VIC 3000 Australia PLANE ENGINEERING: Creditors' Proofs of Debt Due Oct. 26 -------------------------------------------------------- The creditors of Plane Engineering Consulting Ltd. are required to file their proofs of debt by Oct. 26, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 16, 2015. The company's liquidator is: Morval Bank & Trust Cayman Ltd. Appleby Tower, 4th Floor 71 Fort Street, George Town P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands Telephone: +1 (345) 949-9808 TOP WORLD: Commences Liquidation Proceedings -------------------------------------------- On Sept. 14, 2015, the sole shareholder of Top World Funds passed a resolution to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Cathlin Rossiter c/o Genesis Trust & Corporate Services Ltd. Midtown Plaza, Elgin Avenue, George Town P.O. Box 448 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 945 3466 Facsimile: (345) 945 3470 TRIBAL FINANCE: Creditors' Proofs of Debt Due Oct. 19 ----------------------------------------------------- The creditors of Tribal Finance Ltd. are required to file their proofs of debt by Oct. 19, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 11, 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 ========= C H I L E ========= GEOPARK LATIN AMERICA: S&P Affirms 'B' Rating; Outlook Negative --------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B' ratings on GeoPark Latin America Limited Agencia en Chile (GeoPark). The outlook remains negative. The rating affirmation reflects S&P's view that the company's announced capex cuts in 2015 and 2016, along with its improved cost structure, will somewhat offset the lower funds generation amid weaker oil prices. The negative outlook reflects the likelihood of weaker-than- expected credit metrics because of lower oil prices. A downgrade is possible if the company's FFO to debt drops to less than 12% in 2015 and 2016, which could result from, for example, lower EBITDA generation (consistent with scenarios of Brent oil prices of $50/bbl, combined with cash costs of $18/bbl in 2016). S&P could revise the outlook to stable if the company's FFO to debt improves to 30% on a sustained basis, alongside recovering hydrocarbon prices, enabling it to resume its investment, expansion, and diversification plans. =================================== D O M I N I C A N R E P U B L I C =================================== AES DOMINICANA: Seaweed Snarls Power Company -------------------------------------------- Dominican Today reports that AES Dominicana said encroaching seaweed have severely affected its two major power plants, but noted that the situation isn't related to the latest spate of rolling blackouts as long as six hours nationwide. It said two of its four plants near the capital, which supply 610 megawatts to the national grid, are located on the country's south coast, where the seaweed has been piling up since mid-July, according to Dominican Today. AES Dominicana notes nonetheless that two of its other plants have come online at full capacity since Oct. 8, "and the fact that its units are undergoing these problems wouldn't be the reason to create the gap attributed to generation," the report notes. In an emailed statement, the power company said a total of 570 metric tons of seaweed has been arriving at its facilities during the last 28 days thus far this year, with high amounts occurring on June 10, July 27 and October 7, "when the flow exceeded the extraction capacity of the specialized equipment for waste management in general," the report relays. It said as many as 28 divers and 20 assistants and cranes and other equipment are working each day to deal with the influx of the seaweed, the report notes. "During these peaks and to avert further consequences the Itabo management has been forced to take at least one of the units off line, leaving the other at partial load to protect equipment that are cooled by seawater," the e-mail added. DOMINICAN REP: Drought's Impact on Foods Pace 1.72% Higher Prices ----------------------------------------------------------------- Dominican Today reports that the Central Bank January said September prices posted a "remarkable" increase of 1.72%, paced by foods and non-alcoholic beverages. "The drought in the country this year, considered the most intense since 1997, has been affecting the prices of the food and non- alcoholic beverage group," with a 7.6% jump at the end of September, according to the Bank, Dominican Today says. It also reports a significant climb on the price of fresh chicken (4.08%), plantains (6.82%), and cassava (yuca) (12.84%), adding that Sept. posted the highest jump in inflation this year, Dominican Today notes. DOMINICAN REP: World Bank Grants US$50MM Loan to Boost Education ---------------------------------------------------------------- Dominican Today reports that the World Bank loaned the Finance Ministry US$50 million to support the National Education Pact, staring with disbursement of US$10.0 million this year. Finance Minister Simon Lizardo, who signed the contract with World Bank Resident representative Benjamin McDonald, thanked the multilateral organization for its support to bolster investment through the loan, according to Dominican Today. Mr. Lizard said the funds will "help stimulate Dominican Government policy related to the National Development Strategy to benefit a relevant niche for the country's progress, such as the education, and specifically, the quality of teaching," Dominican Today relays. Mr. Lizard stressed the World Bank's importance as a collaborating partner on the country's commitment to the UN's Millennium Development Goals, Dominican Today adds. ====================== P U E R T O R I C O ====================== PUERTO RICO: May Not Be Able to Avoid Defaults, Adviser Says ------------------------------------------------------------ Michelle Kaske at Bloomberg News reports that Puerto Rico, at risk of running out of cash as soon as November, may be unable to pay investors as it looks to restructure $73 billion of debt, said Steven Rhodes, the former U.S. bankruptcy judge who is advising the island's government. Puerto Rico faces a $354 million principal and interest payment on Dec. 1 for Government Development Bank debt, including securities that the commonwealth backs with its general-obligation guarantee, according to bond documents, according to Bloomberg News. Officials have said the government may run out of cash in November unless it can get a short-term loan or renegotiate its debts, notes the report. A $357 million interest payment on general- obligation bonds is due Jan. 1. "I'm not sure that Puerto Rico will have any choice on the issue of default," Mr. Rhodes, who presided over Detroit's record bankruptcy, said in a television interview on Bloomberg with David Westin and Stephanie Ruhle, reports Bloomberg News. "Its financials suggest that it is going to run out of money very soon. It is suffering a liquidity crisis, and I'm not sure it will have any choice in the issue of default." Puerto Rico and its agencies racked up $73 billion of debt by borrowing for years to balance budgets as the economy struggled to grow. Officials are negotiating with investors and insurance companies about what's owed by the development bank, and Governor Alejandro Garcia Padilla's administration plans to push for a broader restructuring of Puerto Rico's bonds, Bloomberg News relays. The price of Puerto Rico's bonds has slid this year amid speculation over how much debt will be affected, Bloomberg News notes. Securities due in 2035, the most frequently traded, changed hands Oct. 9 at an average of 74.5 cents on the dollar to yield 11.2 percent. They were first sold to investors for 93 cents in March 2014, the report discloses. The Electric Power Authority, the island's main electric utility, has struck a tentative deal with some of its bondholders and lenders to restructure the $8.3 billion it owes, Bloomberg News relays. Bond insurance companies have balked at the proposed agreement and are still negotiating. The outcome could serve as a model for how to deal with other Puerto Rico debts, Tom Wagner, co-founding partner of hedge fund Knighthead Capital Management, said during a Bloomberg Television interview. Knighthead owns the utility's bonds. "A constructive and collaborative approach between the debt issuer and the debt holders is oftentimes the best way to approach these situations," Bloomberg News quoted Mr. Wagner as saying. Mr. Rhodes said he disagrees. Given how many Puerto Rico agencies have sold bonds and the number of creditors involved, the island needs a way to swiftly tackle its fiscal crisis and avoid talks that could drag on for years, Mr. Rhodes added. Puerto Rico has been pushing for Congress to give some agencies the power to file for bankruptcy, though a bill to do so has stalled for lack of Republican support, Bloomberg News relays. "How long is it going to take if there are 17 entities and we do them one year at a time?" Mr. Rhodes said, notes the report. "We don't have that time. We're closing schools. Seniors need their pensions in order to buy their medicines." If Puerto Rico fails to repay the development-bank bonds due Dec. 1, it would be the first default on debt guaranteed by the commonwealth. While one of its agencies, the Public Finance Corp., has skipped payments on its bonds since August, those securities were only backed by legislative appropriations, which lawmakers didn't authorize, Bloomberg News says. *********** 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 * * *