/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160202.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 Tuesday, February 2, 2016, Vol. 17, No. 22 Headlines B E R M U D A BERMUDA COMMERCIAL: Moody's Lowers Rating to Ba3; Outlook Stable B R A Z I L BTG PACTUAL: Lays Off 18% of its Workforce COMPANHIA SIDERURGICA: S&P Lowers CCR to 'B+'; Outlook Negative USINAS SIDERURGICAS: Fitch Cuts Issuer Default Ratings to 'B-' USINAS SIDERURGICAS: S&P Cuts Rating to CCC+ & Puts on Watch Neg. * BRAZIL: A Bright Spot for Debt Restructuring Advisors C A Y M A N I S L A N D S ADM CREDIT: Shareholder Receives Wind-Up Report BINEC LIMITED: Shareholders Receive Wind-Up Report BINJAI HILL: Shareholders Receive Wind-Up Report CANCALE INVESTMENTS: Shareholders Receive Wind-Up Report CARNAC LIMITED: Shareholders Receive Wind-Up Report CHAUSEY LIMITED: Shareholders Receive Wind-Up Report CHEYNE MALACCA: Members Receive Wind-Up Report CHI WAVE: Shareholders Receive Wind-Up Report ESKE CAPITAL: Members Receive Wind-Up Report MOBIUS COMPANY: Shareholder Receives Wind-Up Report PD STAR: Shareholders Receive Wind-Up Report R OVERSEAS: Members Receive Wind-Up Report SIDERA CAPITAL: Members Receive Wind-Up Report SNOW PETREL: Shareholders Receive Wind-Up Report SPK 23 (CAYMAN): Members Receive Wind-Up Report C U B A CUBA: El Nino Causing Huge Losses in Agriculture E L S A L V A D O R BANCO DAVIVIENDA: S&P Affirms 'B+' ICR; Outlook Stable J A M A I C A NATIONAL COMMERCIAL BANK: Cuts Non-Performing Loans in 2015 M E X I C O CEMEX SAB: S&P Affirms 'B+' Global Scale Rating; Outlook Positive FINCOMUN SERVICIOS: S&P Affirms 'B+' LT ICR; Outlook Stable P U E R T O R I C O PUERTO RICO: Morgan Stanley Paid New Jersey Widow Over Losses U R U G U A Y * URUGUAY: Must Craft Long-term Oil & Gas Policy, President Says - - - - - ============= B E R M U D A ============= BERMUDA COMMERCIAL: Moody's Lowers Rating to Ba3; Outlook Stable ---------------------------------------------------------------- Moody's Investors Service has downgraded the long term deposit and issuer ratings of Bermuda Commercial Bank Limited (BCB) to Ba3, from Ba2, the bank's standalone baseline credit assessment (BCA) and adjusted BCA to ba3 from ba2, and counterparty risk (CR) assessment to Ba2(cr) from Ba1(cr). The bank's short term ratings and counterparty risk assessment of Not Prime and Not Prime(cr), respectively, were affirmed. The outlook for the ratings is now stable. This action concludes the rating review initiated on Sept. 28, 2015, following BCB's acquisition of 75% of UK-based finance house Private and Commercial Finance Group PLC (PCFG) from its parent holding, Somers Limited (unrated), a financial services investment holding company, see press release at: https://www.moodys.com/research/Moodys-Reviews-for-Downgrade- Bermuda-Commercial-Banks-Ba2-ratings--PR_335324) RATINGS RATIONALE The ratings downgrade reflects Moody's view that BCB has taken on increased asset risk through its acquisition of PCFG that has raised the bank's overall risk profile despite its strong capitalization. Moody's notes that the increased asset risk reflects the nature of PCFG's loan portfolio, consisting of high yield, high loan-to- value consumer auto finance and small and medium-sized enterprise business and leasing finance. These loans carry a much higher level of delinquent and impaired loans and a higher loss content than do BCB's commercial loans in Bermuda. While the PCFG portfolio offers diversification within the UK's stronger market as well as new asset classes, the venture brings higher risk costs and management challenges. The company's high growth profile and the cyclical nature of the auto lending business also expose the bank to asset quality deterioration during an economic downturn, said Moody's. Moody's noted that although the acquisition reduces the comparative dominance of the investment portfolio in BCB's balance sheet, the bank still maintains a significant concentration in a portfolio of non-investment grade or unrated securities, comprising almost one third of its securities holdings or 1.4 times tangible common equity as of September 2015. While the securities continue to provide income benefits, they also expose the bank to credit and market risks. Regarding funding, BCB's deposit base is highly concentrated in large wholesale deposits that tend to be less stable than retail deposits. To help mitigate this concern, and given that Bermudan banks do not have a lender of last resort, Moody's expects BCB to maintain its comparatively high level of liquid assets. Moody's noted that BCB's capital ratios are relatively high and expects the liquidity pool to remain strong. WHAT COULD CHANGE THE RATING UP Upward movement of the ratings is unlikely in the near term because of BCB's higher risk profile. Over the medium term, ratings could be revised upward with substantial improvement in the asset risk profile coupled with sustainable core earnings and strong capitalization. WHAT COULD CHANGE THE RATING DOWN Further downward pressure on the ratings could arise if asset quality, capital or liquidity weaken substantially from current levels. Further acquisition activity could also put downward pressure on the ratings. =========== B R A Z I L =========== BTG PACTUAL: Lays Off 18% of its Workforce ------------------------------------------ EFE News reports that Brazilian investment bank BTG Pactual has laid off 305 employees, or 18 percent of its workforce, as part of a scandal-triggered cost-cutting plan. The bank said in a securities filing that its goal was to reduce total costs by 25 percent, although it added that despite the layoffs it had no plans to discontinue any of its business lines, according to EFE News. The report notes that BTG Pactual has divested several assets since the November arrest of its then-chairman and Chief Executive Officer, Andre Esteves, who was accused in connection with a wide- ranging corruption scheme centered on Brazilian state-controlled oil company Petrobras. After his arrest, Mr. Esteves stepped down as chairman and chief executive and ceded financial control over BTG Pactual to a holding company made up of the group's top seven partners, the report notes. The billionaire banker was detained in the course of an operation that also led to the arrest of Sen. Delcidio Amaral, the report relays. Prosecutors say that Mr. Esteves provided financial assistance to Sen. Amaral so the senator could offer hush money to convicted former Petrobras executive Nestor Cervero, notes the report. The banker and the senator purportedly wanted to dissuade Mr. Cervero from testifying about bribes they allegedly paid him. The main focus of the Petrobras investigation has been on an alleged cartel of construction and engineering companies that purportedly overcharged the oil giant for contracts, splitting the extra money with corrupt Petrobras officials while setting aside some of the loot to pay off politicians who provided cover for the graft, the report adds. As reported in the Troubled Company Reporter-Latin America on Dec. 9, 2015, Fitch Ratings has downgraded Banco BTG Pactual S.A.'s (BTG Pactual) Issuer Default Ratings (IDRs) to 'BB-' from 'BBB-' and maintained it on Rating Watch Negative. COMPANHIA SIDERURGICA: S&P Lowers CCR to 'B+'; Outlook Negative --------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its global scale corporate credit and issue-level ratings on Companhia Siderurgica Nacional (CSN) to 'B+' from 'BB-'. At the same time, S&P lowered its Brazil national scale corporate credit rating on the company to 'brBBB-' from 'brA-'. The outlook on the corporate ratings remains negative. S&P's recovery rating of '4', with average recovery prospects of 30%-50%, in the high range of the band, remains unchanged. At the same time, S&P is lowering its ratings on National Steel S.A. to 'B' from 'B+'. The outlook on that rating is also negative. The downgrade reflects S&P's expectations that market conditions in Brazil will remain weak, while global steel prices will continue to reflect the supply and demand imbalances, resulting in pressured margins and cash generation for CSN. The company's limited ability to adjust prices in such a difficult environment resulted in significant margin decline, which has weakened S&P's view of CSN's overall business risk profile from "satisfactory" to "fair". The negative outlook reflects the chances of a further downgrade if weak domestic and international steel markets and the company's high interest burden continue to pressure CSN's ability to generate cash and deleverage, gradually depleting its "strong" liquidity. Furthermore, the slow economic activity in Brazil and generally negative environment may affect the company's ability to conclude, and/or the timing and final value of any potential asset sales, which can result in more persistent cash burn. Although S&P sees little pressure from short term debt coming due, CSN's liquidity may deteriorate if the company is not able to improve working capital. S&P still expects debt to EBITDA to remain above 8.0x in 2016 and neutral cash generation due to high interest expenses. Although an upgrade is unlikely in the short term, S&P could revise CSN's outlook back to stable if the company is able to capture any upside from a potential improvement in market conditions, or if its strategy of focusing on higher value-added products and plants results in stronger cash generation and some improvement in financial metrics. S&P would expect to see debt to EBITDA close to 5.0x and FFO to debt of about 12%, alongside "strong" liquidity. USINAS SIDERURGICAS: Fitch Cuts Issuer Default Ratings to 'B-' -------------------------------------------------------------- Fitch Ratings has downgraded the foreign and local currency Issuer Default Ratings (IDRs) of Usinas Siderurgicas de Minas Gerais S.A. (USIMINAS) to 'B-' from 'B+' and downgraded the national rating to 'BBB-(bra)' from 'BBB+(bra)'. Fitch has also placed the foreign and local IDRs of Usiminas on Rating Watch Negative. The downgrade reflects Usiminas' unsustainable credit profile amidst a scenario of weakening steel sector fundamentals in both the domestic and global markets. Factored into the downgrade is Usiminas' decision to suspend its primary steel production activities at its Cubatao Plant, which has a crude steel nominal capacity of 4.5 million tons. The downsizing of the company's steel production will result in some initial cash outlays related to the shutdown of its blast furnace, but should lower fixed costs thereafter. Fitch took into consideration Usiminas' vertically integrated steel operations coupled with its historically strong presence in the Brazilian flat steel market. While sector conditions will likely remain poor in both the domestic and export markets, Fitch believes Usiminas' degree of operating leverage is high and its low position on the steel cost curve would likely result in swift deleveraging under more normal market conditions. Usiminas was placed on Rating Watch Negative due to high cash flow burn and upcoming maturities due in 2016. The liquidity situation at Usiminas is dismal. Absent a refinancing of its short-term maturities the company will have extreme difficulty servicing its debt. Fitch believes Usiminas has strong relationships with its banks and will be successful in extending maturities. Fitch also believes shareholder support could be forthcoming. KEY RATING DRIVERS Dire Liquidity Position: Fitch believes Usiminas' current cash on hand as of Dec. 31, 2015 cannot cover maturities through 2016. Usiminas will have difficulty meeting its financial obligations during 2016 unless the company is successful in refinancing its bank debt, which constituted approximately 79% of total debt as of Sept. 30, 2015. Usiminas breached its net debt/EBITDA covenant of 3.5x at year-end 2015. Fitch does not believe Usiminas will be able to meet this covenant requirement over the next two years, resulting in additional waivers required. Leverage to Rise: Fitch projects Usiminas to report net leverage well above 10.0x for 2015 and to further decline over the coming quarters due to deteriorating operating cash flow and sustained free cash flow burn. Weakening credit metrics will go unabated unless Usiminas receives a significant equity injection and/or completes asset sales during 2016. Fitch expects Usiminas to have difficulty raising cash through asset sales, as the company has very limited non-strategic assets it could dispose of coupled with the inability to monetize any asset sales at maximum value given the current market conditions. The company's current credit profile is unsustainable as Fitch expects EBITDA generation to remain dismal in 2016. Cash flow To Remain Under Pressure: Fitch projects Usiminas' funds from operation (FFO) to be around BRL340 million and negative free cash flow (FCF) in 2015 compared to FFO and FCF of BRL1.2 billion and BRL110 million in 2014. Declining international steel prices, increased energy prices, high tax and interest rate burdens, and higher raw material costs have put downward pressure on the company's cash flow generation which will persist in 2016. The company's expectations of lower capex requirements and improved working capital management will likely not lead to any material changes in cash flow generation in the short term. Progressive Deterioration of Domestic and Worldwide Steel Markets: Usiminas' operating performance was negatively impacted by the continued decline for domestic steel in Brazil. Flat steel consumption in Brazil was down 18% for the first nine months of 2015 with limited expectations of recovery over the near term. Brazil's industrial sector has declined for the 18th consecutive month with continued weakening in the automotive, household appliances, and civil construction sectors. The excess supply of global steel production capacity was approximately 735 million tons as of September 2015, putting downward pressure on international market prices and making high cost producers economically unfeasible. China alone exported 130 million tons of steel annualized through September 2015, a key driver of the lowest global steel prices seen in a decade. Brutal Operating Environment to Continue to Challenge Profitability: Usiminas reported a material decline in financial results during the first nine months of September 2015, which Fitch expects to persist during 2016. Domestic steel sales volumes declined 24% as weaker demand levels were experienced across many of Usiminas' end markets. Partially offsetting the decline in domestic demand was an increase in steel exports, particularly to the U.S. and Argentina. Steel volumes exported represented 27% of total volumes sold during the nine months ended September 2015, an increase from 17% from the prior year period. However, the offset in volumes sold in the domestic market compared to the export market will likely further lead to profitability deterioration due to lower pricing power and increased working capital needs for exports. Unprofitable Iron Ore Business: Usiminas' has no ability to generate positive cash flow from its iron ore business due to lack of port access. Usiminas cancelled its contract with the Sudeste Port during June 2015 after the port failed to open after more than three years of delays. Other major ports are owned by Vale and CSN which export their own iron ore. Usiminas' cash cost per ton for iron ore was BRL51.3 in the third quarter of 2015 (3Q15), still well above current iron ore prices. Fitch believes it is not likely that Usiminas will gain port access in the near term. KEY ASSUMPTIONS -- 35% drop in steel volumes in 2016; -- 5% increase in domestic prices; -- 0% increase in export prices; -- 2016 EBITDA margin between 3%-5%. RATING SENSITIVITIES Fitch could downgrade Usiminas' ratings further if the company is unable to extend its debt maturities due in 2016 and 2017 to beyond 2018 and/or is unable to receive an equity injection in the next three months. An upgrade of the ratings for Usiminas is not likely in the near term. Fitch could remove the Rating Watch Negative if the company refinances its maturities due over the next two years, successfully receives an equity injection, performs asset sales, and/or there is material improvement in domestic steel demand in Brazil during 2017. LIQUIDITY Usiminas' liquidity position has declined to BRL2.4 billion as of Sept. 30, 2015 compared to BRL2.9 billion as of Dec. 31, 2015, which Fitch expects to further erode. The company's cash-to-short ratio was 1.3x as of Sept. 30, 2015 compared to 1.7x as of Dec. 31, 2015. Usiminas will face refinancing issues for its amortization profile during 2016 and beyond if it does not lengthen its maturity schedule. Usiminas breached its net debt/EBITDA covenant of 3.5x at year end on its bank debt, but received covenant waivers. FULL LIST OF RATING ACTIONS Fitch has downgraded Usiminas' ratings as follows: -- Foreign currency long-term IDR to 'B-' from 'B+'; -- Local currency long-term IDR to 'B-' from 'B+'; -- National scale long-term rating to 'BBB-(bra)' from 'BBB+(bra)'; -- $US 400 million notes due 2018 to 'B-/RR4' from 'B+/RR4'. USINAS SIDERURGICAS: S&P Cuts Rating to CCC+ & Puts on Watch Neg. ----------------------------------------------------------------- Standard & Poor's Ratings Services downgraded Usinas Siderurgicas de Minas Gerais S.A. (Usiminas) to 'CCC+' from 'B+' on global scale and to 'brCCC+' from 'brBBB-' on national scale. S&P also placed the ratings on CreditWatch negative. At the same time, S&P revised its recovery rating to '5H' from '3L', which reflects recovery prospects of 10% to 30%, in the high end of the band. The weaker recovery prospects prompted S&P to lower the unsecured debt ratings on the company to 'CCC' from 'B-' and to 'brCCC' from 'brBBB-'. The downgrade follows Usiminas' very weak operating results in the second half of 2015, which combined with higher leverage and interest burden, sharply weakened credit metrics and liquidity. S&P don't expect the Brazilian steel market to improve in 2016, which will continue to pressure Usiminas' cash flows. The CreditWatch placement reflects S&P's perception that risk of debt payment acceleration is increasing because free cash flow remains negative and the company consistently breached its financial covenants. Waiver negotiation tends to be more restrictive amid more expensive borrowing costs and weak steel market. Even if the company's covenants get waived in the next few weeks, the financial flexibility would remain pressured due to subpar operating performance and tepid operating cash flow generation. As a result, S&P changed its assessment of Usiminas' liquidity to weak and assigned a negative score to the company's capital structure. S&P believes Usiminas may miss debt payments in the next 12-18 months if market conditions don't sharply improve or if it doesn't refinance the term structure of its debt. Nevertheless, the company has a sound long-term relationship with banks. The poor operating performance in the mining and steel business, amid a soft demand in the domestic market, contracted Usiminas' EBITDA margins by 60% in 2015, with no clear signs of improvement in 2016. Therefore, S&P changed its assessment of Usiminas' business risk profile to weak from fair. S&P currently assess Usiminas' liquidity as weak. Although its cash position might cover most of cash needs in the next 12 months, refinancing risks for 2017 are mounting, with cash shortfalls totaling almost R$2 billion amid negative funds from operations and almost R$4 billion of debt maturing in the next 24 months. Furthermore, the company is likely to continue breaching financial covenants at least in the next 18 months, facing risks of debt acceleration. * BRAZIL: A Bright Spot for Debt Restructuring Advisors ----------------------------------------------------- Tatiana Bautzer and Guillermo Parra-Bernal at Reuters report that debt restructuring firms are poised to pull in record amounts of business in Brazil this year as the country's worst recession in decades and a corruption probe that has cast a shadow over dozens of companies leads to a surge in defaults. While a slump in prices is squeezing commodities producers -- from sugar mills to oil producers and miners -- the "Operation Car Wash" investigation into political kickbacks at state oil firm Petroleo Brasileiro SA is also hitting many of its suppliers, according to Reuters. The report notes that soaring consumer delinquencies as Brazil's interest rates hit their highest levels for nearly a decade are also putting some major retailers and homebuilders in line for painful reorganizations. Scenting an opportunity, U.S. restructuring shops including FTI Consulting Inc, Houlihan Lokey Inc, and Moelis & Co have set up shop in Brazil over the past three years to vie for mandates with local banks and independent advisors, the report relays. Last year, a record 1,287 Brazilian companies -- most of them oil equipment, construction and manufacturing firms -- requested court protection from creditors, about 55 percent more than in 2014, the report discloses. Fitch Ratings said last month that the risk of more firms facing cash crunches has risen a lot. "This will be a record year" for debt restructuring, said Salvatore Milanese, a former head of Latin America debt restructuring at KPMG International who recently set up his own advisory firm, Pantalica Partners, the report notes. "The biggest construction companies are restructuring, as are many in the oil and gas industry, and most of the ethanol sector." The report relays that Mr. Milanese said problems extended to mining firms, medium-sized banks and even soy producers. Mr. Milanese estimated Brazilian companies were preparing to renegotiate a total BRL150 billion ($37 billion) in debt, the report notes. To handle the workload, banks and law firms are boosting their corporate restructuring teams, the report discloses. Some shops are taking equity as payment, or charging higher retainers and success fees -- payable when they manage to pull a client out of bankruptcy or restructure debt without having to file for bankruptcy, the report relays. The average fee for a restructuring deal in Brazil is around $10 million, bankers said, the report relays. Raising capital can be particularly lucrative -- the advisors can charge a fee of up to 10 percent of the new funds, experts said, the report notes. "Moelis came to Brazil partly because of restructuring mandates," said Otavio Guazzelli, the local joint head of the boutique bank, which opened its office in Sao Paulo last year, the report relays. "It's natural that, with commodity prices going south, these companies will go through a process of readjustment." Avoiding Depression Ricardo Knoepfelmacher, one of Brazil's top restructuring advisors, says he believes out-of-court reorganizations are essential to revive ailing companies and prevent the ailing economy slipping further -- possibly even into a depression, the report discloses. After shrinking nearly 4 percent last year, Brazil's $2 trillion economy could contract a further 3.5 percent in 2016, according to the International Monetary Fund, putting it on track for its worst recession since 1901, the report relays. The Brazilian Corporate Recovery Institute estimates that half of the 1,287 companies that requested court protection last year may go bankrupt during their turnaround attempts, the report says. Part of the problem is the ineffectiveness of the formal bankruptcy process in Brazil for creditors and debtors alike, adds the report. A new law designed to spur faster turnarounds by emulating the Chapter 11 bankruptcy filing process in the United States was enacted in 2005, but it has not worked as expected, the report relays. Reuters says that debts to the tax authorities and to workers, including wages, take priority over other obligations, and court rulings can be easily appealed, meaning a bankruptcy can drag on for years. Making matters worse is the lack of bankruptcy courts outside the states of Sao Paulo and Rio de Janeiro, the report notes. U.S. law encourages new lending to companies in bankruptcy, with so-called "debtor-in-possession" loans, by guaranteeing lenders priority over other creditors, the report discloses. As these safeguards are hard to enforce in Brazil, lending to firms during bankruptcy remains virtually non-existent -- starving them of capital and making it far harder for them to recover, the report relays. Only a handful of the firms that have sought creditor protection under the law have managed to obtain DIP loans, said Renato Franco, founder of restructuring boutique Integra, the report notes. Last month, existing creditors foiled a plan by Canada's Brookfield Asset Management Inc. to lend BRL800 million to engineering conglomerate Grupo OAS SA. The money would have allowed it to emerge faster from bankruptcy, adds the report. Knoepfelmacher, who helped negotiate Brazil's largest ever restructuring -- the BRL46 billion in debt that was owed by former billionaire Eike Batista's Grupo EBX, said he avoids bankruptcy filings as much as possible, the report says. "Banks, bondholders, companies are all singing the same tune: don't to go to court," the report quoted Mr. Knoepfelmacher, who has overseen 44 major restructurings over the past two decades, as saying. Only six of his deals ended up in court. The report relays that bondholders of several companies that went through debt restructurings in formal bankruptcies in recent years lost almost all the value of their holdings after court rulings ordered that government-led creditors be repaid in full. When Equatorial Energia SA acquired electricity distribution firm Celpa SA during bankruptcy proceedings in 2012, state development bank BNDES received full payment for a 234 million-real debt through an equity issue while bondholders were forced to take a 83 percent haircut, the report says. Like many restructuring firms, Mr. Knoepfelmacher's RK Partners is expanding. It has moved to larger premises in Sao Paulo's upmarket Itaim neighborhood, and in the last year its workforce more than doubled to 41 from 17, with the number of partners rising by two to six, the report notes. Among those it is currently advising are engineering firms UTC Engenharia SA and Galvao Engenharia SA, which had access to bank lending cut because of the Car Wash scandal, the report relays. Legal firms are also boosting their staffing. Thomas Felsberg, who has worked on more than 100 restructurings, doubled the number of lawyers in his firm dealing with restructuring to 25 over the past couple of years, the report discloses. Debtors' concerns about major banks' potential conflicts of interest have opened the door to independent firms like Rothschild Group to oversee turnarounds, the report says. The bank clinched some of the largest mandates last year and is currently advising homebuilder PDG Realty SA and cement maker Tupi SA, the report relays. Lazard Ltd, Mr. Knoepfelmacher's RK Partners and Virtus BR Partners have also won dozens of mandates over competition from large banks. Uncharted Territory Fears of a full-blown crisis are encouraging banks to voluntarily rework loan terms to protect their balance sheets, bankers said, notes the report. Last year, the nation's banking system increased loan-loss provisions by 24 percent after defaults hit their highest levels in six years, central bank data showed, the report relays. Creditors helped steelmaker Cia Siderurgica Nacional SA refinance 6 billion reais in bank loans last year, the report notes. Port operator Log-In Logistica Intermodal SA and Odebrecht Agroindustrial SA, the ethanol unit of engineering conglomerate Grupo Odebrecht SA, are trying to extend their loan terms and get grace periods, adds the report. Bondholders are giving debtors a break too, worried that the highest borrowing costs in any major economy in the world may asphyxiate more companies, the report discloses. Concerns about an inflation rate that is running at the fastest pace in almost 13 years, led the central bank to keep its benchmark lending rate steady at 14.25 percent this month, the report notes. But with debt levels in some sectors running at 8 or 9 times operating profits, companies are fast draining their cash reserves, the report relays. "We're in uncharted territory because leverage is currently at levels not seen in prior crises," said Luiz Muniz, head of Latin America at Rothschild Group, the report adds. As reported in the Troubled Company Reporter-Latin America on Dec. 21, 2015, Fitch Ratings has downgraded Brazil's ratings: -- Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'BB+' from 'BBB-', Outlook remains Negative; -- Senior unsecured foreign and local currency bonds to 'BB+' from 'BBB-'; -- Short-term foreign currency IDR to 'B' from 'F3'. ========================== C A Y M A N I S L A N D S ========================== ADM CREDIT: Shareholder Receives Wind-Up Report ----------------------------------------------- The shareholder of ADM Credit Investments Limited received on Jan. 4, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alexander Shaik c/o Suite 1008 ICBC Tower 3 Garden Road, Central Hong Kong Telephone: (852) 2536 4567 Facsimile: (852) 2147 2813 BINEC LIMITED: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Binec Limited received on Dec. 30, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Helier Pirouet Ross Collins Citron 2004 Limited 23-25 Broad Street St Helier, Jersey JE4 8ND Telephone: +44 1534 282276 Facsimile: +44 1534 282400 BINJAI HILL: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Binjai Hill Capital Limited received on Dec. 30, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Justin Murray Guy Kendrick 4 Binjai Hill, 589921 Singapore CANCALE INVESTMENTS: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Cancale Investments Limited received on Dec. 30, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Helier Pirouet Ross Collins Citron 2004 Limited 23-25 Broad Street St Helier, Jersey JE4 8ND Telephone: +44 1534 282276 Facsimile: +44 1534 282400 CARNAC LIMITED: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Carnac Limited received on Dec. 30, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Helier Pirouet Ross Collins Citron 2004 Limited 23-25 Broad Street St Helier, Jersey JE4 8ND Telephone: +44 1534 282276 Facsimile: +44 1534 282400 CHAUSEY LIMITED: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Chausey Limited received on Dec. 30, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Helier Pirouet Ross Collins Citron 2004 Limited 23-25 Broad Street St Helier, Jersey JE4 8ND Telephone: +44 1534 282276 Facsimile: +44 1534 282400 CHEYNE MALACCA: Members Receive Wind-Up Report ---------------------------------------------- The members of Cheyne Malacca Asia Equity Fund Inc. received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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 CHI WAVE: Shareholders Receive Wind-Up Report --------------------------------------------- The shareholders of Chi Wave Limited received on Dec. 30, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Helier Pirouet Ross Collins Citron 2004 Limited 23-25 Broad Street St Helier, Jersey JE4 8ND Telephone: +44 1534 282276 Facsimile: +44 1534 282400 ESKE CAPITAL: Members Receive Wind-Up Report -------------------------------------------- The members of Eske Capital Ltd received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Ltd. Landmark Square, 1st Floor, 64 Earth Close P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: +1 (345) 769-9351 MOBIUS COMPANY: Shareholder Receives Wind-Up Report --------------------------------------------------- The shareholder of Mobius Company received on Jan. 11, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 PD STAR: Shareholders Receive Wind-Up Report -------------------------------------------- The shareholders of PD Star Fund received on Dec. 30, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands Telephone: +1 (345) 949 4900 R OVERSEAS: Members Receive Wind-Up Report ------------------------------------------ The members of R Overseas Ltd. received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Ltd. Landmark Square, 1st Floor, 64 Earth Close P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: +1 (345) 769-9351 SIDERA CAPITAL: Members Receive Wind-Up Report ---------------------------------------------- The members of Sidera Capital LLC received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Ltd. Landmark Square, 1st Floor, 64 Earth Close P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: +1 (345) 769-9351 SNOW PETREL: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Snow Petrel Limited received on Dec. 30, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Helier Pirouet Ross Collins Citron 2004 Limited 23-25 Broad Street St Helier, Jersey JE4 8ND Telephone: +44 1534 282276 Facsimile: +44 1534 282400 SPK 23 (CAYMAN): Members Receive Wind-Up Report ----------------------------------------------- The members of SPK 23 (Cayman) Inc. received on Dec. 29, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Sanjeev Dave c/o Campbells Willow House, Floor 4 Cricket Square Grand Cayman KY1-1103 Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 ======= C U B A ======= CUBA: El Nino Causing Huge Losses in Agriculture ------------------------------------------------ EFE News reports that the El Nino weather phenomenon is causing millions of dollars in losses in Cuban agriculture, affecting the island's crops of sugar cane, tobacco, rice, coffee and vegetables, local experts are reporting in state-run media. El Nino-Southern Oscillation, or ENSO, which was categorized as "very strong" between November 2015 and January 2016 -- a level reached only in 1982-1983 and 1997-1998 over the past 50 years -- has been adversely affecting the island since last summer with episodes of severe drought and heavy rains at the wrong times, the science supplement for the daily Juventud Rebelde said, according to EFE News. Although no specific value to the agricultural losses has been established, "they could amount to hundreds of millions of pesos," the article said, EFE News relays. As an example, the paper cites losses of almost 90,000 tons of rice in 2015 due to the drought affecting the rice fields, along with ironically heavy losses in vegetable and grain crops due to too much rain in recent months, EFE News discloses. The head of the agrometeorology information service with the island's Weather Institute, engineer Eduardo Perez Valdes, warned of the "great risk" posed by the weather during the early part of the year, the report notes. EFE News relays that Mr. Valdes told Juventud Rebelde that El Nino is at its "most capricious" from January to April, often dumping a huge amount of rain in Cuba that negatively affects the sugar cane and tobacco harvests, along with vegetables such as potatoes. Mr. Rebelde also said that the island's agricultural situation will not get back to normal quickly and the spring-summer period this year will, in all likelihood, be very hot with more drought, EFE News adds. ==================== E L S A L V A D O R ==================== BANCO DAVIVIENDA: S&P Affirms 'B+' ICR; Outlook Stable ------------------------------------------------------ Standard & Poor's Ratings Services said it affirmed its 'B+' long- term and 'B' short-term global scale issuer credit rating on El Salvador-based bank Banco Davivienda Salvadoreno S.A. The outlook is stable. S&P subsequently withdrew the ratings at the issuer's request. At the time of the withdrawal, the ratings on Banco Davivienda Salvadoreno S.A reflected its "adequate" business position, "adequate" capital and earnings, "adequate" risk position, "average" funding, and "adequate" liquidity. The bank's stand- alone credit profile was 'bb'. ============= J A M A I C A ============= NATIONAL COMMERCIAL BANK: Cuts Non-Performing Loans in 2015 ----------------------------------------------------------- RJR News reports that there was a reduction in non-performing loans at Jamaica's National Commercial Bank (NCB) in 2015. At the end of the year, non-performing loans amounted to J$8.4 billion, compared to $9.1 billion as at December 31, 2014, according to RJR News. This represented 4.8% of the gross loans, versus 5.6% in the previous year, the report notes. As reported in the Troubled Company Reporter-Latin America on June 8, 2015, Standard & Poor's Ratings Services raised its long- term issuer credit rating on National Commercial Bank Jamaica Ltd. to 'B' from 'B-'. S&P also affirmed its short-term 'B' issuer credit rating on the bank. The upgrade follows the same rating action on the sovereign, which in turn reflects the country's ability to meet its fiscal targets in the past two years, which has led improved fiscal credibility and stabilized its debt trajectory. NCBJ's 'b+' SACP remains unchanged. =========== M E X I C O =========== CEMEX SAB: S&P Affirms 'B+' Global Scale Rating; Outlook Positive ----------------------------------------------------------------- Standard & Poor's Ratings affirmed its 'B+' global scale and 'mxBBB' national scale ratings on CEMEX and its subsidiaries, CEMEX Espana S.A., CEMEX Mexico S.A. de C.V., and CEMEX Inc. S&P is affirming its '3H'recovery rating, which indicates that bondholders can expect a meaningful (50% to 70%, in the higher band of the range) recovery in the event of a payment default. The outlook remains positive. The ratings on CEMEX continue to reflect S&P's view that the company has the capacity to continue improving credit metrics in the next 12 months, in line with an "aggressive" financial risk profile. During 2015, the company faced increasing difficulties delivering top-line growth and cash flow generation because of a volatile exchange rate environment in emerging markets, infrastructure spending cuts in Mexico, and lower oil prices that reversed cement demand for energy projects in the U.S. However, CEMEX still managed to improve its key credit metrics close to S&P's previous expectations. In S&P's opinion, the performance of CEMEX in the U.S. market during 2016 is a critical trigger for a potential rating upgrade to materialize. S&P considers that sustained volume growth and incremental capacity utilization in the U.S. would boost free cash flow generation to at least $600 million and EBITDA margins above 20%, which would lead to a reassessment of the company's financial risk profile. In addition, the company has announced plans to implement asset divestments, which would result in additional cash for debt repayment that would further accelerate the deleveraging trajectory. The positive outlook on CEMEX continues to reflect S&P's belief that it could raise the ratings in the next 12 months, if the company continues to capture the positive momentum of demand fundamentals across the markets where it participates. Ultimately, its ability to do so will to improve cash flow generation, which would be used for debt repayment purposes. In S&P's opinion volume growth and incremental capacity utilization in the U.S. are most likely to trigger an upgrade. Under such a scenario, EBITDA margins improve to more than 20% for 2016, and contribute to a strengthening of the company's credit metrics. S&P could raise the ratings on CEMEX by one-notch if the positive industry trend in the U.S. holds, and demand growth in emerging markets maintains low to mid-single digit top-line growth. S&P also considers that an effective asset divestment plan that helps CEMEX raise additional cash to repay debt would further improve credit metrics and, eventually, contribute to a rating upgrade. More specifically, S&P would raise the ratings on CEMEX if incremental EBITDA and free operating cash flow (FOCF) accelerate deleveraging, and result in a debt to EBITDA ratio of 5.0x and FFO to debt in excess of 10%, consistent with an "aggressive" financial risk profile. S&P would revise the outlook back to stable within next 12 months if CEMEX is unable to capture its growth potential, and if it fails to successfully execute its asset divestment plan, leading to credit metrics that fall short of an "aggressive" financial risk profile. A debt to EBITDA ratio consistently above 5.0x would pose downside risks for CEMEX. FINCOMUN SERVICIOS: S&P Affirms 'B+' LT ICR; Outlook Stable ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' long- and 'B' short-term global scale issuer credit ratings on FinComun Servicios Financieros Comunitarios S.A. de C.V. Sociedad Financiera Popular (Fincomun). At the same time, S&P affirmed its 'mxBBB' long- and 'mxA-3' short-term national scale issuer credit ratings on the company. The outlook remains stable. The issuer credit ratings on Fincomun continue to reflect S&P's opinion about the company's business position as "moderate" because it's operating only two business lines. S&P also views its capital and earnings as "moderate" based on its forecasted RAC ratio of 5.4% on average for 2016 and 2017. In addition, S&P assess its risk position "weak" due to high credit losses that-- although have slightly improved in the past two years--have remained subpar. The ratings also incorporate S&P's assessment of its funding as "below average" and its liquidity as "adequate". The stand-alone credit profile (SACP) remains at 'b+'. ====================== P U E R T O R I C O ====================== PUERTO RICO: Morgan Stanley Paid New Jersey Widow Over Losses ------------------------------------------------------------- Michelle Kaske at Bloomberg News reports that Morgan Stanley paid a New Jersey widow $95,632 to compensate for her losses on Puerto Rico securities, in what may be the first case of its kind involving mainland investors and commonwealth debt. A Financial Industry Regulatory Authority arbitration panel decided in October that the bank must pay Morrisa Schiffman for compensatory damages, according to Bloomberg News. Ms. Schiffman asked for $157,267.17 for unsuitable recommendations, failure to disclose and negligent supervision, according to the case document, Bloomberg News notes. Seth Lipner, a lawyer at Deutsch & Lipner in Garden City, New York, who represented Schiffman, said that he knows of no other case where a mainland investor won compensation for Puerto Rico bond losses, Bloomberg News relays. "She's a widow who was using the income to supplement her retirement," Mr. Lipner said in a telephone interview. "I do anticipate seeing more people complaining as they come to realize that these bonds are not coming back to par," Mr. Lipner added. Commonwealth securities, which attracted investors because they're tax-exempt in all U.S. states, lost about 19 percent since the start of 2013, while the broader municipal-bond market gained nearly 11 percent, according to S&P Dow Jones Indices, Bloomberg News notes. Puerto Rico bonds fell in value and began trading at distressed levels in 2013 on investor concern that the island wouldn't be able to repay all of its obligations on time and in full, Bloomberg News relays. The commonwealth and its agencies racked up $70 billion by borrowing for years to fix budget shortfalls, Bloomberg News relays. UBS Settlement "Morgan Stanley is disappointed with the panel's decision, but has paid the award," Christy Jockle, a spokeswoman at the bank, said in a statement obtained by Bloomberg News. "The firm believes it has made appropriate disclosures regarding Puerto Rico. The arbitration involved a bond purchased in 2008," Mr. Jockle added. Bloomberg News relays that UBS Group AG agreed in September to pay about $34 million to settle regulatory claims that a Puerto Rico unit allowed a broker to sell risky municipal bond investments to conservative customers. Ray Pellecchia, a Finra spokesman, was unable to confirm if the Shiffman case is the first of its kind. Bloomberg News notes that Mr. Lipner said that he has filed for arbitration in three more cases of individual investors who've lost money on their Puerto Rico securities and involving Bank of America Merrill Lynch, Stifel Nicolaus & Co. and Hennion & Walsh Inc. Restructuring Talks "People didn't need the investments that they were put into," Mr. Lipner said, Bloomberg News notes. "Representatives need to know what they're recommending. And what we're finding across the board in the states is that they didn't," Mr. Lipner added. Puerto Rico is seeking to lower its debt stack by asking investors to accept less than the full value on their holdings or waiting longer to be repaid, Bloomberg News relays. The commonwealth is expected to present its first debt-restructuring proposal to advisers and lawyers for creditors, Bloomberg News adds. As reported in the Troubled Company Reporter-Latin America on Dec. 28, 2015, Moody's Investors Service has downgraded $1.09 billion of Puerto Rico appropriation bonds issued by the Public Finance Corporation (PFC) to C from Ca, while maintaining other ratings assigned to the US territory's debt. ============= U R U G U A Y ============= * URUGUAY: Must Craft Long-term Oil & Gas Policy, President Says ---------------------------------------------------------------- EFE News reports that Uruguay's government must develop a long- term policy for managing oil and gas discoveries, President Tabare Vazquez said. Vazquez plans to meet with four former presidents to discuss potential oil finds in the South American country, according to EFE News. In March, France's Total, U.S.-based ExxonMobil and Norway's Statoil will start drilling in Uruguay's continental shelf, located some 400 kilometers (249 miles) off Montevideo, the report notes. The project will drill what will be the world's deepest offshore well at a cost of $200 million, the report relays. "If gas and oil are found, handling the situation will be a task not just for the current administration but also for future governments and, therefore, a policy should be implemented that goes beyond one administration and one political party," President Vazquez told reporters during an appearance in the northern city of Artigas, the report discloses. "Consulting with those who have been presidents" during the current democratic process in Uruguay and "who have known from the inside what it is to handle very important responsibilities, was the best first step" toward an inclusive strategy, the president said, the report notes. The meeting at the Suarez y Reyes presidential residence in Montevideo will be attended by former Presidents Julio Maria Sanguinetti, who governed from 1985-1990 and 1995-2000; Luis Alberto Lacalle, who was in office from 1990-1995; Jorge Batlle, who served from 2000-2005; and Jose Mujica, who governed from 2010-2015, the report adds. *********** 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 2016. 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 * * *