/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/151210.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, December 10, 2015, Vol. 16, No. 244 Headlines B R A Z I L BRAZIL: Alternative Energy Projects Threatened by Abengoa's Woes SAMARCO MINERACAO: Bill for Brazil Dam Failure Could Grow C A Y M A N I S L A N D S BLACKSTONE CGFI: Commences Liquidation Proceedings COBRA CAYMAN: Commences Liquidation Proceedings CRABEL MAC 4: Commences Liquidation Proceedings EQUITYPROTECT LIMITED: Commences Liquidation Proceedings FRONT STREET: Commences Liquidation Proceedings GLOBAL ACTIVIST: Creditors' Proofs of Debt Due Today GLS OFFSHORE: Commences Liquidation Proceedings MAN PORTFOLIO: Commences Liquidation Proceedings NITON FUND: Chapter 15 Case Summary RABAR MAC 6: Commences Liquidation Proceedings RGSAF MAC: Commences Liquidation Proceedings SUPER BB: Commences Liquidation Proceedings THAMES FUND: Commences Liquidation Proceedings TRACTMANAGER CAYMAN: Placed Under Voluntary Wind-Up C H I L E CHILE: Fitch Says Challenges Persist for Chilean Corporates D O M I N I C A N R E P U B L I C BANCO DE RESERVAS: Fitch Affirms 'B+' Issuer Default Ratings J A M A I C A JAMAICA: More Unrest in the Petroleum Distributive Trade P A R A G U A Y PARAGUAY: IDB OKs $62 Million Loan for Rural Road Projects P U E R T O R I C O BTB CORP: Exit Plan Proposes to Pay Off Unsecureds in 5 Years T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Recession May Last Awhile, Says Energy Chamber * TRINIDAD & TOBAGO: Opposition Questions Borrowing Limit Increase V E N E Z U E L A VENEZUELA: Fitch Says Election Won't Resolve Policy Uncertainty X X X X X X X X X LATAM: Fitch Sees Increasing Divergence in Credit Quality in 2016 - - - - - =========== B R A Z I L =========== BRAZIL: Alternative Energy Projects Threatened by Abengoa's Woes ---------------------------------------------------------------- Marcelo Teixeira and Luciano Costa at Reuters report that spanish conglomerate Abengoa SA, teetering on the verge of bankruptcy, has halted construction of power transmission lines in Brazil, a potential setback for the South America nation's bid to emerge from its worst energy crisis in 14 years. Unions representing construction workers, a wind power industry group and Abengoa SA's sub-contractor on the new power lines said the Spanish company informed them of the interruption in recent days, according to Reuters. The report relays that Abengoa SA, which opened pre-insolvency proceedings last month in Spain, holds concessions to build and operate 6,300 kilometers of transmission lines in Brazil that are vital to connecting dozens of wind farms to the grid. It is also due to construct a line to transport power from the word's third-largest hydroelectric power dam, Belo Monte, in the Amazon state of Para to Brazil's power-hungry Northeast region starting in August, the report discloses. "Work was suspended suddenly and we don't have any information at this point about a possible resumption," said Janaina Voltolini, a director at ETS Energia, a company providing services for Abengoa on four out of 11 new lines under construction, the report notes. Abengoa declined to comment on the matter. Sources familiar with its restructuring in Spain said the company plans to stop all projects that are not yet operational and require additional investment, the report says. That decision would also affect Abengoa's operations in Chile, where the company won a $180 million contract last month to build two new power transmission cables, extend existing lines and construct a substation, the report discloses. In Brazil, years of below-average rains have sharply reduced power output from the country's extensive network of hydropowered dams, forcing the government to seek new sources of energy, from thermal to solar and wind, the report notes. Roberto Brandao, a power sector researcher at Rio de Janeiro Federal University (UFRJ), said Abengoa was the largest player in construction of power lines to connect to these power sources, alongside China's State Grid, the report relays. "We can expect all of them to be delayed," Mr. Brandao said, notes Reuters. "And possible solutions will be found on a line-by-line basis." The report notes that Elbia Gannoum, chief executive at Brazilian wind power lobbying group Abeolica, said the situation is worrying. "There is around 1.5 gigawatt of new power capacity from wind farms depending on those lines," Ms. Gannoum, said, an amount that could supply 3 million people with electricity in Brazil -- or roughly 1.5 percent of the population. The Brazilian transmission lines will require around 1 billion euros in investment, Abengoa executives said in a September presentation, notes the report. Reuters discloses that Brazil's electricity regulator Aneel held an emergency meeting to discuss the situation with Abengoa representatives but it later said no obvious solution had been found. Robertson Emerenciano, a lawyer who specializes in restructuring power companies in Brazil, said Abengoa would probably want to sell its concessions, an outcome local governments are likely to support, the report notes. "For the government it is very important to maintain those investments," the report quoted Mr. Emerenciano as saying. The bad news for Abengoa is that the timing for such sales could hardly be worse, the report relays. Available credit in Brazil has shrunk amid a harsh economic crisis, making infrastructure investments tough to finance, the report discloses. In a Nov. 18 auction for concessions to build and operate power lines, the government sold only four out of 12 lots on offer, the report says. SAMARCO MINERACAO: Bill for Brazil Dam Failure Could Grow --------------------------------------------------------- Paul Kiernan at The Wall Street Journal reports that Samarco Mineracao SA's bill for a catastrophic dam failure last month could be growing by the day, as it struggles to formulate an emergency plan demanded by local prosecutors in case of additional accidents. On Nov. 28, a judge in Minas Gerais state gave Samarco, a joint venture between mining giants Vale SA and BHP Billiton Ltd., three days to fulfill the requirement or else pay a fine of BRL1 million Brazilian a day ($262,536), according to the WSJ. Prosecutors asked the company to forecast potential scenarios of what could happen if the remaining dams at its mining complex were to break, and to provide "concrete emergency measures" to be adopted in each scenario, the report notes. The report notes that a Samarco spokeswoman said in an email that the company had hired a contractor to produce the emergency plan but had requested a deadline extension from prosecutors, citing the "extreme complexity" of the studies involved. She declined to comment on the fines, and the public prosecutors' office in Minas Gerais couldn't be reached because of a local holiday, the report relays. Samarco didn't respond to a request for additional details on its existing dam-break studies and contingency plans, the report notes. But Carlos Eduardo Ferreira Pinto, a member of the task force of Brazilian prosecutors that is working on the case, said that Samarco's dam-break analysis of the structure that failed was "conceptual and very precarious," the report discloses. The company's inability to formulate an emergency plan on time has added to concerns about the safety of its Germano and Santarem tailings dams, which were damaged when the nearby Fundao dam collapsed on Nov. 5, the report relays. The accident unleashed an avalanche of mud that killed at least 15 people, destroyed villages downstream, and polluted hundreds of miles of waterways in the Rio Doce basin, the report says. The larger Germano dam was built using a similar design to Fundao, prosecutors said, the report notes. As the reservoirs behind the dams filled up, Samarco raised both structures by building successive dikes on top of mine detritus known as tailings, the report notes. Engineers say this technique, known as the "upstream" method, is the cheapest way to build dams but is also the most prone to failure, the report discloses. Samarco said on Nov. 17 that it was taking emergency measures to stabilize the Germano and Santarem dams. The company said that it had installed sirens in communities that could be affected by a second dam break, the report notes. In addition to the contingency plans, a judge also ordered Samarco to cover the costs of preventively emptying a hydroelectric reservoir downstream from its tailings dams in case of another accident, the report adds. As reported in the Troubled Company Reporter-Latin America on Dec. 9, 2015, Moody's Investors Service has downgraded to Caa1 from Ba1 the corporate family rating of Samarco Mineracao S.A. and the ratings of its senior unsecured notes due 2022, 2023 and 2024. The outlook was changed to negative. This rating action concludes the review for downgrade initiated on Nov. 10, 2015, following the accident at the Germano site in Minas Gerais. ========================== C A Y M A N I S L A N D S ========================== BLACKSTONE CGFI: Commences Liquidation Proceedings -------------------------------------------------- On Oct. 29, 2015, the sole shareholder of Blackstone CGFI Offshore Fund Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Patrick Agemian Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 COBRA CAYMAN: Commences Liquidation Proceedings ----------------------------------------------- On Oct. 30, 2015, the sole shareholder of Cobra Cayman Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 CRABEL MAC 4: Commences Liquidation Proceedings ----------------------------------------------- On Oct. 30, 2015, the sole shareholder of Crabel Mac 4 Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 EQUITYPROTECT LIMITED: Commences Liquidation Proceedings -------------------------------------------------------- On Oct. 30, 2015, the sole shareholder of Equityprotect Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 FRONT STREET: Commences Liquidation Proceedings ----------------------------------------------- On Oct. 30, 2015, the sole shareholder of Front Street Resources Mac 78 Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 GLOBAL ACTIVIST: Creditors' Proofs of Debt Due Today ---------------------------------------------------- The creditors of The Global Activist Fund, Ltd. are required to file their proofs of debt today, Dec. 10, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 30, 2015. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Telephone: (345) 946 7665 Facsimile: (345) 949 2877 GLS OFFSHORE: Commences Liquidation Proceedings ----------------------------------------------- On Oct. 30, 2015, the sole shareholder of GLS Offshore Global Opportunities Mac 30 Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 MAN PORTFOLIO: Commences Liquidation Proceedings ------------------------------------------------ On Oct. 30, 2015, the sole shareholder of Man Portfolio Innovations SPC resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 NITON FUND: Chapter 15 Case Summary ----------------------------------- Chapter 15 Petitioner: Matthew James Wright, Christopher Barnett Kennedy Chapter 15 Debtor: Niton Fund SPC R&H Trust Co., Ltd. West Bay Road 897, Windward 1, Regatta Officer Park KY1-1103 Grand Cayman, Cayman Islands Chapter 15 Case No.: 15-13252 Chapter 15 Petition Date: December 7, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Chapter 15 Petitioners' Counsel: Warren E. Gluck, Esq. Barbra R. Parlin, Esq. HOLLAND & KNIGHT LLP 31 West 52 nd Street New York, NY 10019 Tel: 212-513-3200 Fax: 212-385-9010 warren.gluck@hklaw.com barbra.parlinu@hklaw.com Estimated Assets: Not Indicated Estimated Debts: Not Indicated RABAR MAC 6: Commences Liquidation Proceedings ---------------------------------------------- On Oct. 30, 2015, the sole shareholder of Rabar Mac 6 Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 RGSAF MAC: Commences Liquidation Proceedings -------------------------------------------- On Oct. 30, 2015, the sole shareholder of RGSAF Mac Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 SUPER BB: Commences Liquidation Proceedings ------------------------------------------- On Oct. 30, 2015, the sole shareholder of Super BB Macro (Cayman) Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 THAMES FUND: Commences Liquidation Proceedings ---------------------------------------------- On Oct. 30, 2015, the sole shareholder of Thames Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 TRACTMANAGER CAYMAN: Placed Under Voluntary Wind-Up --------------------------------------------------- On Oct. 30, 2015, the sole shareholder of Tractmanager Cayman GP Inc. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Tractmanager Global, Inc. c/o Justin Savage 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 ========= C H I L E ========= CHILE: Fitch Says Challenges Persist for Chilean Corporates ----------------------------------------------------------- Chilean corporates face challenging conditions due to weak GDP growth, low commodity prices, and cash flow pressures from corporates with exposure to Brazil, according to Fitch Ratings' Chilean Corporate Outlook Report. 'Credit metrics are expected to remain under pressure; nevertheless, downgrades should be limited in 2016 as most of these credits continue to improve their cost structures', according to Alejandra Fernandez, a Director at Fitch. Leverage has increased for the majority of the 28 Chilean corporates with international ratings over the past few years. The median adjusted net debt-to-EBITDAR ratio as of June 2015 was 3.9x, a decline when compared with 2.3x in December 2011. Negative operating cash flow trends have been a key driver of higher leverage. An important contributor to rising debt levels has been debt- funded M&A activity, which has expanded the presence of many corporates in Peru, Colombia and Brazil. Investments in Brazil remain as pressure points for Chilean corporates, with 10 issuers operating in that country. Positively, foreign exchange risk is largely manageable for the 28 Chilean corporates in aggregate. Derivatives are common and issuers can find instruments that match the terms of the bonds. Issuers have done a reasonable job balancing the currency of their debt versus the currency of their cash flow. =================================== D O M I N I C A N R E P U B L I C =================================== BANCO DE RESERVAS: Fitch Affirms 'B+' Issuer Default Ratings ------------------------------------------------------------ Fitch Ratings has affirmed Banco de Reservas de la Republica Dominicana, Banco de Servicios Multiples (Banreservas), and Banco Multiple BHD Leon, S.A.'s (BHD Leon) long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B+'. The Rating Outlooks on the Long-Term IDRs were revised to Positive from Stable. These actions follow Fitch's revision of the Dominican Republic's sovereign Rating Outlook to Positive from Stable, reflecting the continued favorable economic performance relative to peers, the reduction of external vulnerabilities, and progress on gradual fiscal consolidation. For additional details, see 'Fitch Revises Dominican Republic's Outlook to Positive; Affirms 'B+' Ratings', available on www.fitchratings.com. Fitch expects the current improvement in the Dominican operating environment to benefit the financial profiles of the banks. KEY RATING DRIVERS IDRs AND VRs Banreservas' IDRs ratings reflect Fitch's expectations of the support the bank would receive from its sole shareholder, the Dominican government (IDR rated 'B+'/Positive Outlook), if needed. The bank's Viability Rating (VR) reflects its weak, albeit improving capitalization, and still-high asset concentrations. Banreservas' VR also considers trends in profitability and private sector loan quality. BHD Leon's VR, or standalone creditworthiness, drives its long- term IDR. The bank's VR is highly influenced by the operating environment and asset quality. Additionally, BHD Leon's VR reflects its resilient profitability, adequate capitalization, reserve cushion, improving funding base, and strengthened franchise. SUPPORT AND SUPPORT RATING FLOOR Banreservas' systemic importance - its role as the government's main paying agent and provider of domestic loans - results in an equalization of its Support Rating Floor with the sovereign's LT IDR of 'B+'. Additionally, Fitch believes the government's willingness to support Banreservas should it be required is substantial given its 100% stake in the bank. However, the Dominican Republic's speculative-grade rating limits the sovereign's capacity of support, resulting in a Support rating of '4'. Despite BHD Leon's systemic importance, the government's inconsistent history of banking sector support for private sector institutions and the sovereign's speculative-grade rating result in a Support Floor of 'NF' and a Support Rating of '5'. SUBORDINATED DEBT Banreservas' international subordinated note rating is one notch below its supported IDR, reflecting one notch for loss severity, but no notches for incremental non-performance risk relative to the bank's IDR. In Fitch's view, given the gone concern characteristics of the security, the anchor rating is the IDR, even though there is no explicit government guarantee on the security. According to Fitch's methodology, the subordinated notes do not receive equity credit. RATING SENSITIVITIES IDRS AND VRs Banreservas' IDRs are sensitive to a change in Fitch's assumptions on potential sovereign support. Changes in the IDRs are also contingent on sovereign rating actions. A stabilization of private sector loan quality indicators, a stronger capital base, as well as a more established track record of meeting strategic objectives could lead to an upgrade of the Banreservas' VR. An unexpected deterioration in asset quality or profitability, or dividend disbursements to the government that pressures Banreservas' equity/assets ratio below 5.5%, could trigger a downgrade of its viability rating. BHD Leon's IDRs and VRs are contingent upon actions on the Dominican Republic's sovereign ratings, as its ratings are constrained by the sovereign's IDRs. If the bank sustains its current strong financial performance and adequate capitalization, this would be positive for BHDL's IDRs in the event of a sovereign upgrade. A deterioration in profitability or asset quality metrics that causes the bank's Fitch core capital to risk-weighted assets ratio to fall below 8% would be negative for creditworthiness. SUPPORT AND SUPPORT RATING FLOOR The SRs and SRFs for both banks are potentially sensitive to any change in assumptions around the propensity or ability of the Dominican government to provide timely support. In the case of Banreservas, this might arise in the event of a sovereign rating action. SUBORDINATED DEBT Banreservas' subordinated debt rating is sensitive to the same considerations that affect the banks IDR. Fitch has taken the following rating actions: Banreservas -- Foreign and local currency IDRs 'B+'; Outlook Revised to Positive from Stable; -- Short-term foreign and local currency IDRs affirmed at 'B'; -- Viability Rating affirmed at 'b'; -- Support Rating affirmed at '4'; -- Support Floor affirmed at 'B+'; -- Long-term subordinated notes affirmed at 'B'. BHD Leon -- Foreign and local currency long-term IDR 'B+', Outlook Revised to Positive from Stable -- Foreign and local currency short term IDR affirmed at 'B'; -- Viability Rating affirmed at 'b+'; -- Support Rating affirmed at '5'; -- Support Floor Rating affirmed at 'NF'. These ratings were unaffected: Banreservas -- National long-term rating 'AA+(dom)'; Outlook Stable; -- National short-term rating 'F1+(dom)'; -- National subordinated debt rating 'AA(dom)'. BHD Leon -- Long-term National rating 'AA+(dom)'; Outlook Stable; -- Short-term National rating 'F1+(dom)'. ============= J A M A I C A ============= JAMAICA: More Unrest in the Petroleum Distributive Trade -------------------------------------------------------- RJR News reports that there appears to be more unrest in the petroleum distributive trade. The Jamaica Gasolene Retailers Association (JGRA) disclosed that it is consulting with stakeholders in the sector to garner support for its fight against marketing companies, according to RJR News. The report notes that it has described the marketing companies' position as unfair and "strong-armed". According to the JGRA, the issue of contracts has also surfaced again, as the multi-national oil marketers have been putting dealers under duress to sign one-sided contracts, the report relays. The JGRA has declared that it is prepared to fight the marketing companies, the report adds. * * * As reported in Troubled Company Reporter-Latin America on July 29, 2015, Standard & Poor's Ratings Services assigned its 'B' issue rating on Jamaica's up to US$2 billion in bonds issued in two tranches. The first tranche is for up to US$1,350 million due in 2028. The second tranche is for up to US$650 million due in 2045. The government will use the proceeds to purchase debt that Jamaica owes to Venezuela as well as to finance the government's 2015/2016 budget. =============== P A R A G U A Y =============== PARAGUAY: IDB OKs $62 Million Loan for Rural Road Projects ---------------------------------------------------------- Paraguay will improve the connectivity of rural areas in the eastern region, and the access by productive zones to consumers, with a loan of $62 million approved by the Inter-American Development Bank (IDB). This loan will finance a program to restore and maintain rural roads and replace old wooden bridges with reinforced concrete. The program is specifically designed to reduce the costs of operating vehicles on rural roads in the area, cut the travel times required, allow all-weather transit and increase the average daily traffic. "This program will contribute in an important way to one of Paraguay's key priorities -- reducing poverty -- because it is an important tool for enhancing the infrastructure in rural areas and thereby improving connectivity and access to social services and reducing the logistical costs of products in the region," said IDB project team leader Rafael Acevedo. Paraguay has about 43,900 km of rural roads. The great majority is made up of dirt roads that lack proper drainage, and only about 23 percent is covered by any sort of maintenance or improvement program. The lack of adequate standards and maintenance, combined with the frequent rains and soil conditions in the eastern region, contribute to the fact that more than 65 percent of the dirt roads are in bad condition and frequently become impassable. The program is designed to improve 165 km of rural roads in five departments of the eastern region in order to guarantee all- weather transit and safety; replace 600 meters of wooden bridges with reinforced concrete; and perform routine maintenance on 713 km of roads already improved with previous IDB financing. Those programs, among other actions, have improved 1,570 km of rural roads, maintained another 2,780 km, built 1,420 meters of bridging and put in place new road safety standards. The new program will secure those advances and contribute to meeting the goals established in the National Plan for Rural Roads, reduce rural poverty and promote jobs with a focus on gender. The IDB loan for $62 million is for 25 years, with a grace period of 6.5 years and an interest rate based on LIBOR. Paraguay will improve the connectivity of rural areas in the eastern region, and the access by productive zones to consumers, with a loan of $62 million approved by the Inter-American Development Bank (IDB). This loan will finance a program to restore and maintain rural roads and replace old wooden bridges with reinforced concrete. The program is specifically designed to reduce the costs of operating vehicles on rural roads in the area, cut the travel times required, allow all-weather transit and increase the average daily traffic. "This program will contribute in an important way to one of Paraguay's key priorities -- reducing poverty -- because it is an important tool for enhancing the infrastructure in rural areas and thereby improving connectivity and access to social services and reducing the logistical costs of products in the region," said IDB project team leader Rafael Acevedo. Paraguay has about 43,900 km of rural roads. The great majority is made up of dirt roads that lack proper drainage, and only about 23 percent is covered by any sort of maintenance or improvement program. The lack of adequate standards and maintenance, combined with the frequent rains and soil conditions in the eastern region, contribute to the fact that more than 65 percent of the dirt roads are in bad condition and frequently become impassable. The program is designed to improve 165 km of rural roads in five departments of the eastern region in order to guarantee all- weather transit and safety; replace 600 meters of wooden bridges with reinforced concrete; and perform routine maintenance on 713 km of roads already improved with previous IDB financing. Those programs, among other actions, have improved 1,570 km of rural roads, maintained another 2,780 km, built 1,420 meters of bridging and put in place new road safety standards. The new program will secure those advances and contribute to meeting the goals established in the National Plan for Rural Roads, reduce rural poverty and promote jobs with a focus on gender. The IDB loan for $62 million is for 25 years, with a grace period of 6.5 years and an interest rate based on LIBOR. As reported in the Troubled Company Reporter-Latin America on June 18, 2015, Standard & Poor's Ratings Services revised its outlook on the Republic of Paraguay to positive from stable. At the same time, S&P affirmed its 'BB/B' long- and short-term foreign and local currency sovereign credit ratings on Paraguay. S&P also affirmed its 'BB+' transfer and convertibility assessment. ====================== P U E R T O R I C O ====================== BTB CORP: Exit Plan Proposes to Pay Off Unsecureds in 5 Years ------------------------------------------------------------- BTB Corporation has filed with the U.S. Bankruptcy Court for the District of Puerto Rico a proposed Chapter 11 Plan that offers to pay non-insider unsecured creditors in full within 5 years. Judge Mildred Caban Flores will convene a hearing to consider approval of the explanatory Disclosure Statement on Jan. 20, 2016, at 9:00 a.m. Objections to the form and content of the Disclosure Statement are due not less than 14 days prior to the hearing. According to the Disclosure Statement, the Debtor proposes to make payments to creditors through the Plan primarily consisting of: 1. Payment of all administrative expenses on the later of the Effective Date or as soon as feasible after the date any such claim becomes an allowed Administrative Claim. 2. Payment of 100% of allowed priority tax claims in the amount of $2,910 to be on the Effective Date. 3. Secured creditor Banco Santander will be paid in full from the payment of the accounts receivables that were foreclosed pre-petition and the sale of the inventory. The Debtor will continue to make monthly interest payments on the outstanding balance of the line of credit computed at the contractually agreed rate of 3.75% over the 30-day LIBOR. Also, as part of the agreement with the bank, Petroleum Products Supply, LLC, will make payments directly to the bank in order to cover the mortgage payments over the premises, which are owned by Debtor's subsidiary and guaranteed by Debtor. Debtor's affiliates will continue to make payments under their lines of credit to the bank and Debtor will continue to guarantee these lines of credit. Lastly, Debtor will continue to support the bank in the collection of the receivables that were foreclosed by the bank prepetition. All of the aforementioned will be subject of a stipulation and/or a plan supplement to be executed within the next 30 days. 4. Payment of the non-dischargeable debt owed to the United States under the same terms and conditions of the settlement agreement reached with the United States. 5. Payment of in full, plus an annual interest rate of 4%, of allowed unsecured claims of more than $3,000 in 60 equal monthly installments. 6. Payment in full of allowed unsecured claims of less than $3,000 on or before the Effective Date. 7. Unliquidated and contingent claims will not receive any distribution from Debtor but will retain their rights to continue their claims against Debtor's insurance company and if any of the objections to said claims is unsuccessful, said claim shall be deemed as a general unsecured claim. 8. All unsecured claims of Debtor's insiders will not receive any dividend under the Plan but will be considered as new equity value and shall receive common shares of the Debtor in the same proportion. 9. All equity interests in Debtor will be cancelled and equity holders will receive no distribution. However, as aforementioned, new common shares of the Debtor will be issued to the insiders holding unsecured claims in the same proportion of their claims. The Plan is to be funded by the Lease and Sub-Lease agreement reached with Petroleum Products Supply, LLC, which will produce $150,000 per month for a period of five years. According to the Debtor, a Chapter 7 liquidation of the Debtor's assets would produce 100% distribution to non-contingent unsecured creditors but without interest and after the successful sale of all assets. A copy of the Disclosure Statement filed Nov. 20, 2015, is available for free at: http://bankrupt.com/misc/BTB_Corp_211_DS.pdf About BTB Corporation BTB Corporation was organized in 2003 to be engaged in bitumen supply activities and the rendering of any other services which maybe complementary to such activities. Debtor initiated operations from a leased terminal and storage facility located in Penuelas, Puerto Rico. In 2007, BTB acquired 100% of the stock of The Placco Company of Puerto Rico, Inc., ("PLACCO"), a corporation organized under the laws of Puerto Rico on May 10, 1988 primarily to manufacture, produce, process and sell bitumen and other related or similar products. PLACCO became a wholly owned subsidiary of BTB, and is the owner of the bitumen terminal leased by BTB from where BTB operates its business in Guaynabo, Puerto Rico. In 2012, the current majority shareholders acquired BTB from IOTC Asphalt, LLC, retaining Mr. Juan Vazquez as President of the Company. BTB Corporation sought Chapter 11 protection (Bankr. D.P.R. Case No. 15-03681) in Old San Juan, Puerto Rico, on May 17, 2015. Samuel Lizardi signed the petition as interim president. The Debtor disclosed total assets of $16.5 million and total liabilities of $13.2 million. BTB said it sought bankruptcy protection as it is unable to meet obligations as they mature, and creditors are threatening suit and have threatened to undertake steps to obtain possession of its assets. The Debtor tapped Alexis Fuentes Hernandez, Esq., at Fuentes Law Offices, LLC, as its counsel. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Recession May Last Awhile, Says Energy Chamber ----------------------------------------------------------------- Trinidad and Tobago Newsday reports that while there are things that the country can do to alleviate the effects of the recession, it is likely that it will last a while given that global oil prices are likely to remain low for a while, according to chief executive officer and president of the Energy Chamber of Trinidad and Tobago, Thackwray Driver. Mr. Driver did not give a specified time for how long he thinks the recession will last, saying he did not want to speculate, according to Trinidad and Tobago Newsday. The report notes that Mr. Driver also commented on the recent layoff of hundreds of workers from ArcelorMittal, saying that though unfortunate, the layoffs were the reality of plummeting global steel prices. "With steel, with ArcelorMittal, what happened is that global steel prices have plummeted and that happened because China has moved from the best steel going into infrastructural development in China to them exporting steel to the rest of the world," Mr. Driver said, the report notes. "So that has pushed the price of steel all around the world downwards," Mr. Driver said. As a result, Mr. Driver added, you're seeing closure of steel parks all around the world, the report notes. "Obviously, for ArcelorMittal, its stock production is in Trinidad, so they have low revenue coming in. So they would have to obviously look at how they're going to restructure their plant," Mr. Driver said, the report relays. "They're taking that out of production. It's a terrible situation for people, but that's just the reality of the global economy at the moment," Mr. Driver said, the report notes. "Trinidad has traditionally been a low cost producer because of our low electricity prices, but there have been problems which all the plants at Point Lisas in terms of delivery of gas . . . . So that when they don't have that security of production, the labor productivity rates in Trinidad are not good; that means that Trinidad and Tobago will become one of the locations which they (ArcelorMittal Global) look to close. If we're not competitive, people are not going to invest in Trinidad. It has an impact on government revenue and foreign currency coming into the country as well." The report notes that Mr. Driver addressed the recession, reiterating that low oil prices and low productivity in the oil sector created the recession the country now finds itself in. Mr. Driver affirmed that the energy sector has been shrinking for a while. Furthermore, it is unlikely there will be a sudden spike in the oil price, which suggests a lengthy recession, the report relays. "I think that we're in a low oil price environment for a while, that's what all the indications are pointing to. So there are things which the country can do, but I don't think we should fool ourselves that there's going to be a sudden jump in prices and everything is going to be fine. I don't want to speculate times," Mr. Driver assured, notes the report. * TRINIDAD & TOBAGO: Opposition Questions Borrowing Limit Increase ------------------------------------------------------------------ Caribbean360.com reports that a plan by government to increase its borrowing limit by TT$50 billion (US$7.8 billion) has sparked a furor. Opposition leader Kamla Persad-Bissessar has declared this a cause for serious concern, according to Caribbean360.com. "This is most alarming, to increase borrowing limits to such a huge amount exceeding this fiscal year's budget," the report quoted Ms. Persad-Bissessar as saying. "Government needs to explain what specifically they will be using this money for and how they intend to manage this further proposed indebtedness." The report notes that the measure would be facilitated by three motions that are up for debate in Parliament. The report discloses that Minister of Finance Colm Imbert defended the move, saying it had become necessary. Minister Imbert had earlier warned that the country's development program would likely be affected by falling oil prices, the report relays. "Because of the borrowing done over the last five years, we are very close to the limits in all three (Acts) and without these increases, we would be unable to pursue T&T's Development Program or finalize a number of loan arrangements entered into by the previous government," Minister Imbert explained, the report notes. However, economist Indera Sagewan-Alli told local media that borrowing was the only option left for Government in light of its TT$63 billion (US$9.9 billion) budget, falling energy prices and declining revenue, the report discloses. "Government's cash cow of sorts, the National Gas Company, has instituted a wage freeze and that, to me, is an indication of how bad things are," Ms. Sagewan-Alli noted, the report relays. "Also, there's the worsening foreign exchange situation and TT currency depreciation. If you are at the lower end of the band, you will know the dollar has depreciated." However, while Ms. Sagewan-Alli said borrowing for development purposes was not necessarily bad, she was concerned about borrowing that involved incurring new expenditure, the report adds. ================= V E N E Z U E L A ================= VENEZUELA: Fitch Says Election Won't Resolve Policy Uncertainty --------------------------------------------------------------- The majority obtained by the Venezuelan opposition's Mesa de Unidad (MUD) in the National Assembly will not dispel uncertainty regarding the timing and nature of the government's policy response to the current economic crisis or reduce the risk of social instability and further political polarization, Fitch Ratings says. According to results released, MUD may have obtained between 107 (a qualified majority) and 112 seats (a two-thirds majority). A qualified majority allows for the introduction of Enabling Laws, removal of Ministers, and potentially the appointment of new members to the electoral court. A two-thirds majority would give MUD the power to introduce and change some laws, submit laws for referendum, make changes to the constitution, call a constituent assembly, remove members of the Supreme Justice Tribunal and appoint electoral court members. The Venezuelan opposition coalition's victory on Sunday represents a milestone in the recent history of Venezuelan's politics, as the Chavista government has lost a ruling majority in the legislative body for the first time in 15 years. The risk of increased political tension and polarization is material. While the government has acknowledged the electoral outcome, it remains to be seen whether the executive will work with the new National Assembly on a common agenda or maintain the level of confrontation seen in recent years. The challenge for the opposition is to use its electoral mandate to effectively address voters' concerns, especially on economic matters, maintain a united front within National Assembly and consolidate its political position to prepare for the next electoral cycle. It is also unclear whether the electoral outcome will prompt the Maduro Administration to undertake long-needed policy changes to adjust FX policy to the current oil price, address deepening macroeconomic distortions and increase fresh sources of FX financing for the economy. Political considerations in terms of internal government policy disagreements and the electoral cycle have delayed a comprehensive and credible policy response. Fitch's average (Brent) oil price forecast for 2015 is USD55/b and 2016. If oil prices stay in that range, Venezuela's FX liquidity position is likely to remain tight, in the absence of additional sources of FX. Reserves have declined by USD7.4 billion this year to USD14.6 billion, their lowest level since 2003. Moreover, the operational liquidity of international reserves is limited as they are mostly held in gold at Venezuela's central bank, which constrains the speed of reserve liquidity. The sovereign's sources of FX financing are also limited. Venezuela last issued a global bond in 2011, and significant multilateral funding is not expected in 2016. Bilateral loans from China beyond the roll-over of existing oil financing facilities are unlikely. The outcome of the election does not have an impact on Venezuela's LTFC IDR of 'CCC', which incorporates the real possibility of default. Key factors for the sovereign's creditworthiness continue to be its willingness to service debt, oil prices and access to FX financing sources. Venezuela has historically serviced its debt through periods of high political and financial stress. Sovereign FX debt amortizations are manageable at USD1.5 billion in 2016 with no external market payments in 2017. Nevertheless, contingent liabilities such as rulings from International Centre for Settlement of Investment Disputes could increase FX commitments. ================= X X X X X X X X X ================= LATAM: Fitch Sees Increasing Divergence in Credit Quality in 2016 ----------------------------------------------------------------- Overall credit quality of rated infrastructure assets in Latin America should continue to exhibit a steady performance in an increasingly divergent region, according to a Fitch Ratings report. "The 2016 outlook for Latin America infrastructure is stable for all sectors, with the exception of airports," said Senior Director Glaucia Calp. 'Mexico, Central America and the Caribbean's growth prospects are favored by ties with the U.S. economy, while deteriorated macroeconomic conditions in Brazil represent significant challenges to demand." The severe devaluation experienced by many countries' currencies has not had a significant effect in projects' performance, as unhedged FX exposure is not material. With toll roads consisting of mature roads, financial performance is generally not dependent upon high traffic growth rates. Toll roads in Mexico are likely to maintain favorable growth in line with the country's positive economic dynamics. Conversely, in Brazil, rated toll roads should continue to exhibit weak traffic performance for the following 12 to 18 months, pushing concessions into the trough of the economic cycle. With the exception of Brazil, rated airports are expected to continue exhibiting robust performances. The negative outlook on rated Brazilian airports reflects the potential for continued sluggish growth beyond 2016. Thermal power plants and wind farms in the region have performed in line with expectations, while, in Brazil, the enduring drought has led to negative operating cash flow in hydro projects, with ratings supported by corporate or financial guarantees. *********** 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 * * *