/raid1/www/Hosts/bankrupt/TCRLA_Public/151230.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, December 30, 2015, Vol. 16, No. 256
Headlines
A R G E N T I N A
ARGENTINA: New President Moves Swiftly to Shake Up the Economy
B R A Z I L
BRAZIL: Analysts Expect Economy to Contract 2.81% in 2016
MINERVA SA: Fitch says Capital Increase Neutral to Credit Profile
C A Y M A N I S L A N D S
FABBRICA OPPORTUNITIES: Placed Under Voluntary Wind-Up
HAMAYA HOLDING: Commences Liquidation Proceedings
HAMAYUMI HOLDING: Commences Liquidation Proceedings
KEFRET MULTIHEDGE: Commences Liquidation Proceedings
KENSON INC: Placed Under Voluntary Wind-Up
SAPIC-98 REFERENCE (55): Commences Liquidation Proceedings
SAPIC-98 REFERENCE (56): Commences Liquidation Proceedings
SEASHORE ENTERPRISES: Placed Under Voluntary Wind-Up
SILVER STAR: Placed Under Voluntary Wind-Up
SLEEP, ZAKARIA: Placed Under Voluntary Wind-Up
VOLGA INVESTMENTS: Shareholders Receive Wind-Up Report
WANTHORPE OPPORTUNITY: Commences Liquidation Proceedings
WR MARKET MASTER: Commences Liquidation Proceedings
WR MARKET OFFSHORE: Commences Liquidation Proceedings
WR MASTER: Commences Liquidation Proceedings
C O L O M B I A
PACIFIC EXPLORATION: S&P Lowers CCR to 'CCC+' & Puts on Watch Neg.
H A I T I
* HAITI: IDB OKs $41 Million Loan for Industrial Park
M E X I C O
MEXICO: Oil Exports Plunge 50.2% in November
V E N E Z U E L A
PROVINCIAL DE REASEGUROS: Fitch Affirms 'CCC' Int'l. IFS Rating
V I R G I N I S L A N D S
BERNARD L MADOFF: Jan. 26 Hearing on Kingate Disclosure Bid
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: New President Moves Swiftly to Shake Up the Economy
--------------------------------------------------------------
Jonathan Gilbert at The New York Times reports that Mauricio Macri
clinched Argentina's presidency last month by tapping into voters'
fatigue with a leftist political movement that had governed for
more than 12 years. Campaigning on a platform of change, and
promising to unite feuding factions while largely dodging specific
policy proposals, Mr. Macri took 51 percent of the vote, according
to The New York Times.
But now, just three weeks into his four-year term, Mr. Macri's
sweeping economic changes are roiling Argentina, accentuating the
divide he wanted to bridge and leading some Argentines to doubt
whether he will be a change for the better, the report notes.
"They voted for him to get the government out, but they didn't
think about what was going to come," said Damian Raspa, 36, a
machine worker at an electronics factory from La Matanza, a
working-class district of greater Buenos Aires where Mr. Macri
lost heavily to his main rival in the election, Daniel Scioli, the
report discloses.
The report says that Mr. Raspa, a father of two who earns about
$615 a month, said he would now have to make his salary stretch
because Mr. Macri's government devalued the peso by nearly 30
percent in mid-December, to more than 13 pesos to the dollar from
9.8; it later strengthened slightly.
The devaluation and a slashing of export taxes favored influential
farmers on Argentina's Pampas lowlands who had speculated about
such moves by hoarding their grain harvests, the report relays.
They struck an agreement with Mr. Macri's government to
immediately sell billions of dollars of grain stocks, like soy, to
ease the shortage of funds at the Central Bank, the report notes.
But while these agricultural exports are now more profitable for
the farmers, for people like Mr. Raspa, the devaluation is eroding
their salaries and fueling price increases as imports become more
expensive, the report discloses.
In his first days in office, Mr. Macri has made quick-fire,
market-oriented changes meant to reinvigorate the economy after
sluggish business investment and growth in recent years, the
report relays.
In contrast, his predecessor, Cristina Fernandez de Kirchner, who
had bruising clashes with the farmers, preferred driving demand
through policies like energy subsidies for consumers, the report
says.
The New York Times says that paving the way for the devaluation,
Mr. Macri scrapped most of Mrs. Kirchner's currency controls, an
unpopular measure that had thwarted foreign investment because
businesses were unable to repatriate their profits. He is also
expected to end bureaucratic procedures that prevented
manufacturers from importing needed equipment and parts, the
report notes. As the government seeks to reduce the largest
budget deficit in three decades, Juan Jose Aranguren, the energy
minister, has said the costly energy subsidies are being reviewed,
the report discloses.
Many Argentines welcome the changes. Daniel Alvarez, 57, who
works at a hardware store in La Matanza, said that under the
Kirchner administration, precarious Central Bank foreign reserves
were being hemorrhaged to shore up the peso. "They didn't leave a
buck," Mr. Alvarez said, the report discloses. "Both Macri and
Scioli were going to devalue. There was no other option to get
dollars in. Yes, it directly favors the farmers, but the idea is
that indirectly it favors us," Mr. Alvarez added.
By cutting export taxes for farmers -- and manufacturers, too --
Mr. Macri wants to increase business profits; easing import
restrictions will provide greater scope to reinvest these profits,
driving production and, subsequently, economic growth, his
advisers say, the report relays. Mario Blejer, a former Central
Bank president who was an adviser to Mr. Scioli, said Mr. Macri
was on the correct path. "Without growth, the redistribution of
income is impossible," Mr. Blejer said, notes The NY Times. "And
to grow, you need investment."
But in the short term, there is the danger of fueling inflation,
which is already about 25 percent, according to unofficial
estimates frequently used because the national statistics
institute's figures have not been trustworthy, the report
discloses. In turn, if real wages do not keep up, battles could
break out between the government and powerful trade union leaders,
the report notes. Political and social organizations are already
panicked about Mr. Macri's moves, the report adds.
"We're very angry and worried," said Juan Grabois, a lawyer for
the Confederation of Workers of the Popular Economy, which
represents workers in Argentina's gray economy, like recyclers and
street hawkers, the report notes. "This is the false theory of
trickle-down economics that will only result in the destruction of
Argentina's social fabric."
The report relays that Eduardo Levy Yeyati, an economics professor
at Torcuato di Tella University and a visiting professor of public
policy at the Kennedy School of Government at Harvard, said Mr.
Macri, who had tiptoed around his plans during the campaign, now
faced the hard political task of following through with
adjustments even though the economy, boosted by the government's
pre-election spending, improved this year. "There's a
disconnection between perceptions and the economic reality," said
Professor Levy Yeyati, emphasizing the unsustainability of a large
budget deficit and an overvalued currency, the report relays.
"It's impossible to explain these things to the public when they
feel like they're doing O.K."
The report notes that Mr. Macri must also tread carefully,
analysts said, because of his small margin of victory in the
election. A decision to temporarily appoint Supreme Court judges
by decree, bypassing Congress during its summer recess, was
criticized as an overreach of executive power. This, together
with moves viewed as steps toward the dismantling of a media law
that is strongly endorsed by Mrs. Kirchner's supporters, has left
him less room for unpopular measures, the report discloses.
Mr. Macri has already moved to cool the simmering economic
tensions, keeping Mrs. Kirchner's price control programs in place
for now and offering a small one-time payment to around eight
million recipients of state pensions or child benefits, the report
relays.
Still, repercussions are already being felt. "It's the workers
who always pay for these crises," said Raul Lemos, 54, who manages
a downtown paint store, as he clicked through an online price list
showing that the price of some products had risen by 25 percent
overnight, the report notes. "Sales are going to drop."
Similarly, Sergio Camerucci, 52, who manufactures trophies and
sells them to sports leagues, said the price of the plastic he
needed to make the trophy bases rose by 20 percent after the
devaluation, Mr. Lemos added.
The report discloses that most economists expect the devaluation -
- and the accompanying raising of interest rates to anchor the
peso -- to result in anemic growth or a recession in 2016 before a
rebound in 2017, with perhaps growth of 3.5 percent, according to
Sebastian Vargas and Pilar Tavella, Barclays economists in New
York. This year, growth will be 0.4 percent, according to the
International Monetary Fund; other economists predict it will be
higher, the NY Times relays.
Supporters of Mr. Macri seem to understand this progression, says
the NY Times. "The last 12 years were terrible," Mr. Camerucci
said of Mrs. Kirchner's political movement, pointing to his
falling sales over the last three years and the import
restrictions, which made it difficult to buy the machinery he
needed, the report adds. "We have to be patient, but we are on a
good path."
Daniel Scatilazzi, 44, who was selling homemade pies and
sandwiches from a stall, said he would suffer as prices jumped but
understood Mr. Macri's motives, the report relays. "I'll put up
with it," said Mr. Scatilazzi, a former supporter of Mrs. Kirchner
who voted for Mr. Macri because he wanted change, the report
notes. "We have to give him time to work. Let's see in six months
if this bears any fruit," Mr. Scatilazzi adds.
* * *
The Troubled Company Reporter-Latin America reported in Nov. 27,
2015, Moody's Investors Service has changed the outlook on
Argentina's Caa1 issuer rating to positive from stable. The
outlook on Argentina's (P)Caa2 foreign legislation and
restructured local legislation foreign currency obligations is
also changed to positive from stable. The outlook change is based
on Moody's view that the accession of president-elect Mauricio
Macri of the Cambiemos ("Let's Change") coalition will raise the
probability of credit positive policies being implemented,
including arriving at a resolution with holdout creditors, one of
Argentina's key credit constraints.
On Aug. 1, 2014, reported that Argentina defaulted on some of its
debt late July 30 after expiration of a 30-day grace period on a
US$539 million interest payment. Earlier that day, talks with a
court- appointed mediator ended without resolving a standoff
between the country and a group of hedge funds seeking full
payment on bonds that the country had defaulted on in 2001. A
U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago.
As a result, reported the TCR-LA on Aug. 1, Standard & Poor's
Ratings Services lowered its unsolicited long-and short-term
foreign currency sovereign credit ratings on the Republic of
Argentina to selective default ('SD') from 'CCC-/C'.
The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings
downgraded Argentina's Foreign Currency Issuer Default Rating
(IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency
Issuer Default Rating to 'RD' from 'C'.
Meanwhile, Moody's Investors Service affirmed Argentina's Caa1
issuer rating, which also applies to domestic law bonds, confirmed
the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca
rating on the original defaulted bonds. The long-term issuer
rating was placed on negative outlook, reported the TCR-LA on Aug.
5, 2014.
On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America
Agente de Calificacion de Riesgo affirmed the deposit, debt,
issuer and corporate family ratings on Argentina's banks and
financial institutions, both on the global and national scales.
The outlook on these ratings has been changed to negative from
stable. At the same time, the rating agency has affirmed the
banks' Caa2 foreign-currency deposit ratings and Not-
Prime short-term ratings. The banks' standalone E financial
strength ratings corresponding to caa1 baseline credit assessments
(BCA) have also been affirmed.
The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has
downgraded Argentina's long-term foreign currency issuer rating
from CC to Selective Default (SD). The short-term foreign
currency rating has been downgraded to Default (D), from R-5. The
long-term and short-term local currency issuer ratings have been
confirmed at B (low) and R-5, respectively. The trend on the
long-term local currency rating is Negative, and the trend on the
short-term local currency rating is Stable.
On Nov. 3, 2014, the TCR-LA reported that Fitch Ratings downgraded
Argentina's rating on Par Bonds issued under Foreign Law to 'D'
from 'C' as Argentina has not been able to cure the missed coupon
payments on its par bonds issued under foreign law after the
expiration of the 30-day grace period on Oct. 30. According to
Fitch's criteria, this constitutes an event of default and Fitch
has downgraded the affected securities to 'D'. In addition, Fitch
has affirmed:
-- Foreign Currency Issuer Default Rating (IDR) at 'RD';
-- Local Currency IDR at 'CCC';
-- Short-term Foreign Currency IDR at 'RD';
-- Country Ceiling at 'CCC'.
-- Performing Foreign Law Exchanged Securities (Global 17) at
'C';
-- Local Currency exchanged bonds under Argentine Law at 'CCC';
-- Foreign and Local Currency non-exchanged securities under
Argentine Law at 'CCC';
-- Discount Bonds issued under Foreign Law at 'D'.
On April 22, 2015, Moody's Investors Service expanded the portion
of Argentina's debt that is rated (P)Caa2. The (P)Caa2 rating
reflects the higher risk of default for both Argentina's
restructured foreign legislation debt (as before) and,
additionally now, its restructured local legislation foreign
currency obligations, as compared with the risk of default on
other debt instruments issued by Argentina. Argentina's local
currency debt and its non-restructured foreign currency debt are
rated Caa1. The debt that remains in default since Argentina's
2001 default is rated Ca.
===========
B R A Z I L
===========
BRAZIL: Analysts Expect Economy to Contract 2.81% in 2016
---------------------------------------------------------
EFE News reports that analysts expect Brazil's economy to contract
by 2.81 percent in 2016 after contracting by 3.70 percent this
year, marking the biggest drop in economic output in 25 years, the
Central Bank said.
Economists are forecasting an inflation rate of 10.72 percent this
year, the highest rate in 13 years, and 6.86 percent in 2016,
according to EFE News.
The gross domestic product (GDP) and inflation forecasts come from
the Boletin Focus, a weekly Central Bank survey of analysts from
about 100 private financial institutions on the state of the
national economy, the report notes.
The report discloses that the government started using the survey
in preparing its own forecasts this year.
If the forecasts turn out to be accurate, Brazil will go through
two consecutive years of negative GDP growth for the first time
since 1948, the report relays.
Analysts maintained their GDP forecast for this year unchanged
from last week, while they revised the projected contraction for
2016 upward from 2.80 percent to 2.81 percent, the report says.
Brazil, in a technical recession with GDP contracting for three
consecutive quarters, has had its sovereign debt lowered to junk
status by Standard & Poor's and Fitch Ratings in recent months,
the report notes.
Those downgrades have occurred even though analysts note that
Brazil's foreign currency reserves are far in excess of its
international liabilities, the report discloses.
The South American giant's economic growth has been hampered by
spending cuts implemented by President Dilma Rousseff's
administration to reduce the budget deficit and control inflation,
the report notes.
Joaquim Levy resigned as Brazil's finance minister on Dec. 18 amid
the struggling economy and a push by some in Congress to impeach
Rousseff, the report says.
His replacement -- Nelson Barbosa, who had been heading up the
Planning Ministry -- was critical of some of the austerity
measures implemented by his predecessor, the report adds.
MINERVA SA: Fitch says Capital Increase Neutral to Credit Profile
-----------------------------------------------------------------
Fitch Ratings views a proposed capital increase to Minerva S.A. to
be neutral for the company's credit profiles. If completed under
current terms, the private equity fund Salic (UK) Ltd. will
subscribe and pay in new common shares to be issued by Minerva,
corresponding to 19.95% of Minerva's total shares in a transaction
valued at BRL746 million.
Fitch rates Minerva 'BB-' / 'A-(bra)' / Stable Outlook. A
positive rating action continues to be based on additional
geographic and protein diversification, recurring positive free
cash flow generation, and substantial decreases in gross and net
leverage to below 4x and 3x, respectively, on a sustained basis.
As of Sept. 30, 2015, Minerva's net leverage was 4.8x; Fitch
believes that pro forma for the transaction, Minerva will present
a net leverage ratio of 3.4x by year-end 2015 and this metric will
remain close to 3.5x during the expansion plan.
Fitch views this transaction as positive from a business
perspective as it will provide Minerva with a healthier capital
structure in the short term, enabling it to develop its strategy
to grow and diversify geographically. Fitch believes that as a
result of this growth strategy, the company will continue to
present a net debt-to-EBITDA ratio consistently above 3.0x.
==========================
C A Y M A N I S L A N D S
==========================
FABBRICA OPPORTUNITIES: Placed Under Voluntary Wind-Up
------------------------------------------------------
On Nov. 4, 2015, the sole shareholder of Fabbrica Opportunities
Ltd. resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 21, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Morval Bank & Trust Cayman Ltd.
Telephone: +1 (345) 949-9808
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
HAMAYA HOLDING: Commences Liquidation Proceedings
-------------------------------------------------
On Oct. 30, 2015, the shareholder of Hamaya Holding Limited
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:
Stephen Nelson
Collas Crill & CARD
Willow House, Cricket Square
P.O. Box 709 Grand Cayman KY1-1107
Cayman Islands
Telephone: (345) 949.4544
Facsimile: (345) 949.8460
HAMAYUMI HOLDING: Commences Liquidation Proceedings
---------------------------------------------------
On Oct. 30, 2015, the shareholder of Hamayumi Holding Limited
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:
Stephen Nelson
Collas Crill & CARD
Willow House, Cricket Square
P.O. Box 709 Grand Cayman KY1-1107
Cayman Islands
Telephone: (345) 949.4544
Facsimile: (345) 949.8460
KEFRET MULTIHEDGE: Commences Liquidation Proceedings
----------------------------------------------------
On Oct. 30, 2015, the members of Kefret Multihedge Fund LDC
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:
David Griffin
FTI Consulting (Cayman) Limited
Suite 3212, 53 Market Street, Camana Bay
P.O. Box 30613 Grand Cayman KY1-1203
Cayman Islands
c/o Kieran Linton
Telephone: +1 (345) 743 6830
KENSON INC: Placed Under Voluntary Wind-Up
------------------------------------------
On Nov. 3, 2015, the sole shareholder of Kenson 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:
Probitas Limited
Equitas Limited
Clifton House, 75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
SAPIC-98 REFERENCE (55): Commences Liquidation Proceedings
----------------------------------------------------------
On Nov.2, 2015, the members of Sapic-98 Reference Fund (55)
Limited resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 22, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Matthew Wright
c/o Omar Grant
P.O. Box 897 Windward 1, Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
SAPIC-98 REFERENCE (56): Commences Liquidation Proceedings
----------------------------------------------------------
On Nov.2, 2015, the members of Sapic-98 Reference Fund (56)
Limited resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 22, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Matthew Wright
c/o Omar Grant
P.O. Box 897 Windward 1, Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
SEASHORE ENTERPRISES: Placed Under Voluntary Wind-Up
----------------------------------------------------
On Nov. 4, 2015, the sole shareholder of Seashore Enterprises Inc.
resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 21, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Morval Bank & Trust Cayman Ltd.
Telephone: +1 (345) 949-9808
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
SILVER STAR: Placed Under Voluntary Wind-Up
-------------------------------------------
On Nov. 4, 2015, the sole shareholder of Silver Star Enterprises
Ltd. resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 21, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Morval Bank & Trust Cayman Ltd.
Telephone: +1 (345) 949-9808
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
SLEEP, ZAKARIA: Placed Under Voluntary Wind-Up
----------------------------------------------
On Oct. 30, 2015, the sole shareholder of Sleep, Zakaria And
Company (Cayman), Ltd. 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:
Avalon Ltd.
Reference: GL
Telephone: (+1) 345 769 4422
Facsimile: (+1) 345 769 9351
Landmark Square, 1st Floor, 64 Earth Close
P.O. Box 715 Grand Cayman KY1-1107
Cayman Islands
VOLGA INVESTMENTS: Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of Volga Investments Fund Limited received on
Dec. 10, 2015, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Victor Murray
MG Management Ltd.
Landmark Square, 2nd Floor
64 Earth Close, Seven Mile Beach
P.O. Box 30116, Grand Cayman KY1-1201
Cayman Islands
Telephone: +1 (345) 749 8181
Facsimile: +1 (345) 743 6767
WANTHORPE OPPORTUNITY: Commences Liquidation Proceedings
--------------------------------------------------------
On Nov. 3, 2015, the shareholder of Wanthorpe Opportunity Fund SPC
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:
Shi Lanjiang
Intertrust Corporate Services (Cayman) Limited
190 Elgin Avenu, George Town
Grand Cayman KY1-9005
Cayman Islands
WR MARKET MASTER: Commences Liquidation Proceedings
---------------------------------------------------
On Oct. 30, 2015, the members of WR Market Neutral Master Fund,
Ltd resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 22, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Matthew Wright
c/o Omar Grant
P.O. Box 897 Windward 1, Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
WR MARKET OFFSHORE: Commences Liquidation Proceedings
-----------------------------------------------------
On Oct. 30, 2015, the members of WR Market Neutral Offshore Fund,
Ltd resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 22, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Matthew Wright
c/o Omar Grant
P.O. Box 897 Windward 1, Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
WR MASTER: Commences Liquidation Proceedings
--------------------------------------------
On Oct. 30, 2015, the members of WR Master Fund SPV #1, Ltd
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 22, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Matthew Wright
c/o Omar Grant
P.O. Box 897 Windward 1, Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
===============
C O L O M B I A
===============
PACIFIC EXPLORATION: S&P Lowers CCR to 'CCC+' & Puts on Watch Neg.
------------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit and issue-level ratings on Pacific Exploration
and Production Corp. to 'CCC+' from 'BB-'. S&P placed the ratings
on CreditWatch with negative implications.
The downgrade reflects S&P's view that Pacific's capital structure
is unsustainable in the long term and that its liquidity is weak.
S&P believes that Pacific's likely free operating cash flow (FOCF)
shortfall in 2016 will hamper its ability to meet its debt
maturities due in early 2017. Furthermore, Pacific has been
unable to sell non-core assets to reduce its debt leverage. It
has remained in violation of its financial covenants, which is
markedly different from S&P's original expectations.
Pacific is currently negotiating its financial covenants under its
revolving credit facilities with its lenders, which have granted
waivers for 61 days. The waivers will expire on Feb. 26, 2016 ,
subject to the satisfaction of certain terms and conditions,
including an agreement on or before Jan. 14, 2016 with respect to
a covenant providing for the minimum amount of unrestricted cash
to be retained by the company throughout the waiver period. The
company needs to comply with a debt-to-EBITDA ratio of 4.5x,
consolidated net worth of $1 billion, and with unadjusted interest
coverage of 2.5x. These metrics are very tight under S&P's base-
case scenario.
The CreditWatch placement reflects the potential for a further
downgrade if Pacific fails to obtain waivers beyond the next 61
days and if it fails to modify of its financial covenants. An
announcement of a debt exchange that S&P sees as distressed would
also lead to a downgrade.
=========
H A I T I
=========
* HAITI: IDB OKs $41 Million Loan for Industrial Park
-----------------------------------------------------
The Inter-American Development Bank (IDB) has approved a $41
million grant for the fifth and last phase of the Caracol
Industrial Park (CIP), the main manufacturing hub in northern
Haiti.
The CIP contributes to economic development in the north of the
country, a priority for the Haitian government, by offering
attractive conditions for companies to invest and generate formal
employment.
The current stage of the project aims to create 5,400 new jobs, of
which about two-thirds will be filled by women. By end-September
CIP employed 7,620 workers, and its goal is to reach 20,000
positions by 2020. The industrial park also helps strengthen
Haiti's economic diversification and export profile.
The latest grant from the IDB, which has contributed a total
$200.5 million to the project since 2011, will finance
construction of factory shells and other infrastructure at the
CIP. It will also support SONAPI, the Haitian government agency in
charge of industrial parks, in its efforts to monitor and enforce
environmental, social, health, and safety rules. SONAPI will also
develop a business plan to ensure its long-term sustainability.
During the project's initial stages, industrial buildings,
internal roads, a wastewater treatment plant and water
purification plant were built. The U.S. government donated a power
plant that provides energy to CIP factories as well as to some
9,000 households in nearby communities.
The IDB is Haiti's leading multilateral donor. Since the 2010
earthquake it has approved more than $1.25 billion in grants for
agriculture, water and sanitation, energy, education, transport,
private sector development, and employment projects, as well as
for strengthening governmental institutions.
===========
M E X I C O
===========
MEXICO: Oil Exports Plunge 50.2% in November
--------------------------------------------
EFE News reports that Mexico's oil exports fell 50.2 percent from
a year earlier in November, a month in which the country's trade
deficit totaled $1.57 billion, the National Institute of
Statistics and Geography, or INEGI, said.
Total exports amounted to $31.02 billion last month, down 4.1
percent from November 2014, the INEGI said in a statement,
according to EFE News.
Oil exports plunged 50.2 percent to $1.57 billion, while non-
petroleum exports rose 0.9 percent to $29.46 billion, the report
notes.
Imports totaled $32.59 billion in November, down 2.4 percent from
the same month of 2014, the report relays.
Petroleum imports came in at $2.32 billion last month, down 36.1
percent compared with November 2014, while non-petroleum imports
totaled $30.28 billion, up 1.7 percent, the report discloses.
Mexico's trade deficit widened to $13.53 billion in the year's
first 11 months, compared with a $3.13 billion trade deficit for
the January-November 2014 period, the INEGI said, the report says.
The report relays that exports totaled $349.81 billion over that
period, down 3.6 percent compared with the first 11 months of
2014.
Petroleum exports plunged 44.6 percent over that 11-month period
to $22.22 billion, while non-petroleum exports rose 1.5 percent to
$327.59 billion, the report notes.
Over that same period, Mexico's imports declined by 0.8 percent to
$363.35 billion, the report relays.
Petroleum imports came in at $30.61 billion in the January-
November 2015 period, down 19.6 percent, while non-petroleum
imports amounted to $332.73 billion, an increase of 1.4 percent
over the first 11 months of 2014, the report says.
Mexico posted a trade deficit of $2.44 billion in 2014, up 106
percent from the deficit of $1.18 billion registered in the prior
year, the INEGI said, adds the report.
=================
V E N E Z U E L A
=================
PROVINCIAL DE REASEGUROS: Fitch Affirms 'CCC' Int'l. IFS Rating
---------------------------------------------------------------
Fitch Ratings has affirmed Provincial de Reaseguros, C.A.'s (Pro
Re) International Insurer Financial Strength (IFS) rating at 'CCC'
and its National IFS rating at 'A-(ven)' with a Stable Outlook.
KEY RATING DRIVERS
The affirmation of the ratings reflects Pro Re's adequate
technical performance with a combined ratio consistently below
100%, the robust growth in premiums collected, the new capital
contributions and its adequate liquidity position.
However, Fitch expects Pro Re's performance will remain highly
influenced by their operating environment, which could deteriorate
due to macro-economic imbalances and political uncertainty in the
country. In Fitch's opinion, given that 99.7% of its premium
income comes from Venezuela and 12% of its assets are invested in
sovereign debt, Pro Re's credit profile is vulnerable to
deteriorations in the credit quality of the sovereign.
Pro Re reached 175% growth in premiums as of June 2015 (June 14:
+61%). This is mainly due to the significant revaluation of
insured property in the country, influenced by its high inflation.
This affects the sustained growth of the Venezuelan insurance
sectors' premiums (June 15: +99%), which remains Pro Re's main
market. The company is a small competitor globally, although its
participation in the local reinsurance sector is 36.3% of gross
premiums.
However, Pro Re's capital levels are pressured by the fast growth
in its operations and unrealized gains due to real estate
revaluations (June 15: 65% vs. June 14: 37%). By excluding these
gains, the net written premiums to adjusted assets ratio grew to
4.6x (June 14: 2.9x), above the average of its local peers of
4.3x. However, Fitch views positively Pro Re's new capital
contributions (with a new contribution waiting for authorization
from the regulator) and its adoption of a conservative dividend
policy.
Fitch estimates that Pro Re's performance will remain favored by
an adequate loss ratio that compares favorably to the market's
average as of June 2015 (44.4%). It has resulted in a combined
ratio that is persistently below 100% and below its local peers'
average (June 15: 89.2%). However, Fitch will observe closely the
impact of inflation levels in its operation, which led to a higher
growth in its balance sheet (+136% in assets) than their
profitability (+3%) as of June 2015.
Pro Re benefits from a favorable proportion of cash, bank deposits
and government securities in its investment portfolio (54%) and
within total assets (46%) as of June 2015. This allows the
company to reflect adequate liquidity coverage ratios on reserves
(175%) and total liabilities (104%). The coverage of their claims
paid with cash and bank deposits remains above 100% (June 15:
122%), and higher than the average of their local peers of 96%.
RATING SENSITIVITIES
Key rating triggers that could lead to a downgrade include a
decline in its operating performance, with a combined ratio above
100%; an operating leverage level above 3.0x, and a liquid assets
coverage to net reserves below 1.0x.
Fitch believes there is limited potential for increasing Pro Re's
Rating in the short term, given the current operating environment.
FULL LIST OF RATING ACTIONS
Fitch has taken these rating actions:
Provincial de Reaseguros, C.A.
-- International IFS rating at 'CCC';
-- National IFS rating at 'A-(ven)'; Stable Outlook.
==========================
V I R G I N I S L A N D S
==========================
BERNARD L MADOFF: Jan. 26 Hearing on Kingate Disclosure Bid
-----------------------------------------------------------
The joint liquidators of Kingate Euro Fund Ltd. and Kingate Global
Fund Ltd. ask the High Court of the British Virgin Islands to
direct that documents containing information regarding identities
and transactions with the funds may be disclosed to Irving H.
Picard, the trustee of the liquidation estate of Bernard L. Madoff
Investment securities LLC, in order to comply with U.S. Federal
Rules of Civil Procedures and any order of the U.S. Bankruptcy
Court in the Matter of SIPC v. Bernard L. Madoff Inv. Secs. LLC
No. 08-1789 (SMB), Picard V. Ceretti, et al., Adv. Proc. No. 09-
1161 (SMB) (Bankr. S.D.N.Y.)
The application will be heard by the High Court of British Virgin
Islands on Jan. 26, 2016. Further information of the application,
contact equiries@kingateeuro-liquidation.vg
***********
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 * * *