/raid1/www/Hosts/bankrupt/TCRLA_Public/160218.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, February 18, 2016, Vol. 17, No. 34
Headlines
A R G E N T I N A
ARGENTINA: Grain Exports Rise 57% After Taxes Are Scrapped
MENDOZA: Moody's Rates 2016 ST Treasury Note Program Caa1
B R A Z I L
BRAZIL: 5,500 Bankruptcies in 2015 Signal Deeper Credit Crisis
BRAZIL: Homebuilding Industry to Remain Under Pressure
BRAZIL: Recession Drive Neg. Outlook for Insurers, Moody's Says
SETE BRASIL: Lenders Said to Tap $1 Billion State-Backed Fund
C A Y M A N I S L A N D S
ACHIEVEMENT CONCENTRATED: Shareholders Receive Wind-Up Report
ARENA CAPITAL: Shareholders Receive Wind-Up Report
BROADWAY GATE: Shareholders Receive Wind-Up Report
EP PARTNERS: Shareholders Receive Wind-Up Report
ETON PARK 1: Shareholders Receive Wind-Up Report
ETON PARK 2: Shareholders Receive Wind-Up Report
FLORIDA PROPERTIES: Shareholders Receive Wind-Up Report
GENUITY MASTER: Shareholders Receive Wind-Up Report
RIO CAPITAL: Shareholders Receive Wind-Up Report
SMITH BREEDEN: Shareholders Receive Wind-Up Report
T ASIA L HOLDINGS: Shareholders Receive Wind-Up Report
TAO L HOLDINGS: Members Receive Wind-Up Report
TE CALEL: Shareholders Receive Wind-Up Report
TE CALEL PORTFOLIO: Shareholders Receive Wind-Up Report
D O M I N I C A N R E P U B L I C
DOMINICAN REP: No New Trade Pacts Until Old Ones are Reviewed
M E X I C O
COBRE DEL MAYO: Moody's Affirms Ca CFR; Outlook Stable
SERVICIOS CORPORATIVOS: S&P Raises Corp. Credit Rating to 'BB-'
P U E R T O R I C O
PUERTO RICO: House of Reps Passes Bill to Restructure $9BB in Debt
STANDARD REGISTER: Court Spares Directors Over Ch. 11 Claims
T R I N I D A D & T O B A G O
* TRINIDAD & TOBAGO: Jobless Rate Could Jump to 15%
- - - - -
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A R G E N T I N A
=================
ARGENTINA: Grain Exports Rise 57% After Taxes Are Scrapped
----------------------------------------------------------
EFE News reports that Argentina's grain exports surged 57 percent
between December and January, thanks to the elimination of the
taxes on wheat, corn, sorghum and barley, and the reduction of the
duty on soy exports, the Agroindustry Ministry said.
"Between Dec. 21, 2015, and Jan. 31, 2016, 3,359,082 tons were
exported, or about 57 percent more than in the same period in the
previous year, when 2,140,225 tons were sold abroad," the ministry
said in a statement obtained by the news agency.
Argentina's exports started rising after Dec. 14, when President
Mauricio Macri said he would scrap the taxes on grain exports and
cut the duties on foreign sales of soy, EFE News notes.
Exports received "a strong boost" when the government decided to
eliminate quotas in late December, the ministry said, the report
relates.
The measures were taken to increase output and help regional
producers develop, the Agroindustry Ministry said, the report
adds.
* * *
The Troubled Company Reporter-Latin America reported in Nov. 27,
2015, that 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.
MENDOZA: Moody's Rates 2016 ST Treasury Note Program Caa1
---------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned a (P)Caa1 (Global Scale, local currency) and Baa3.ar
(Argentina National Scale) ratings to the 2016 Short-Term Treasury
Note Program of the Province of Mendoza. The ratings are in line
with the province's long term local currency issuer ratings, which
carry a positive outlook.
RATINGS RATIONALE
The 2016 program was created by Governor's Decree N 2633/16 and
considers a maximum issuance amount of ARS922.5 million. The
issuances under this program will present a maximum maturity of
365 days and the total amount to be issued under this program
represents approximately 1.6% of the province's 2016 expected
total revenues.
The assigned debt ratings reflect Moody's view that the
willingness and capacity of the Province of Mendoza to honor these
short-term treasury notes is in line with the provincial's long-
term credit quality as reflected in the Caa1/Baa3.ar domestic
issuer ratings and the fact that the terms and conditions of these
short-term notes do not significantly differentiate them from the
general solvency of this province.
The assigned ratings are based on preliminary documentation
received by Moody's as of the rating assignment date. Moody's
does not expect changes to the documentation reviewed over this
period or anticipates changes in the main conditions that the
notes will carry. Should issuance conditions and/or final
documentation of any of the classes under this program deviate
from the original ones submitted and reviewed by the rating
agency, Moody's will assess the impact that these differences may
have on the ratings and act accordingly.
WHAT COULD CHANGE THE RATING UP/DOWN
Given the strong macroeconomic and financial linkages between the
Government of Argentina and Sub-sovereign's economic and financial
profiles and ratings, and upgrade of Argentina's sovereign bonds
ratings and/or the improvement of the country's operating
environment could lead to an upgrade of the Province of Mendoza's
ratings. Conversely, a downgrade in Argentina's bond ratings
and/or further systemic deterioration or idiosyncratic risks
arising in this Province --such as an additional deterioration of
its financial results or significantly higher debt levels- could
exert downward pressure on the ratings assigned and could
translate in to a downgrade in the near to medium term.
===========
B R A Z I L
===========
BRAZIL: 5,500 Bankruptcies in 2015 Signal Deeper Credit Crisis
--------------------------------------------------------------
Ben Bartenstein and Filipe Pacheco at Bloomberg News report that
in his two decades covering Brazil, Fitch Ratings's Joe Bormann
says he's never seen the nation's companies in such a dire state.
Bloomberg News says to appreciate just how bad things are,
consider this: Brazilian courts granted more than 5,500 bankruptcy
filings in 2015, the most since 2008, according to Sao Paulo-based
credit rater Serasa Experian.
Brazil's deepest two-year recession in more than a century and
plummeting commodity prices are leaving businesses in industries
from steel to air travel among the most at risk of default,
according to Fitch, Bloomberg News relays. And more pain is
looming in Latin America's biggest economy as borrowing costs
soar, predicts Mr. Bormann, who oversees a team of 60 analysts
responsible for rating more than 500 companies in the region,
Bloomberg News notes.
"It's legitimately a credit crisis," the report quoted Mr. Bormann
as saying.
No Brazilian company has raised financing in overseas bond markets
since June as an unprecedented corruption scandal at the state-
owned oil producer and ratings downgrades have prompted investors
to shun the nation's financial assets, Bloomberg News says. Fitch
and Standard & Poor's cut Brazil's bond rating to junk last year.
The local currency, which declined 33 percent last year, has
slipped 0.8 percent this year, Bloomberg News notes.
"Nothing has gotten better," said Wilbert Sanchez, founding
partner and managing director at TCP Latin America, a financial
firm in Sao Paulo, Bloomberg News says. "Now, they're just
throwing in the towel," Mr. Sanchez added.
BRAZIL: Homebuilding Industry to Remain Under Pressure
------------------------------------------------------
Brazil's weak economy will continue to hamper the nation's home
building industry this year, with no recovery likely before the
middle of 2017 at the earliest, says Moody's Investors Service.
Liquidity will be the biggest credit concern for the industry
until then.
Homebuilders' revenues are projected to decline by 10 percent in
2016, compared with a year earlier, and gross margins will remain
flat, according to the report, "Homebuilding -- Brazil; Economic
Downturn Will Delay Industry Recovery Until at Least Mid-2017."
Brazil's homebuilding industry has been experiencing a cyclical
slowdown since 2012 following a period of rapid growth. In the
past, housing supply has eventually caught up to demand, however
in this cycle the ongoing deterioration in industrial activity, as
well as political uncertainties, have exacerbated the stresses on
the market.
Home prices fell last year further delaying any recovery. The
average asking price fell almost 9 percent in real terms in 20
cities in Brazil in 2015. Moody's estimates that the actual drop
in prices is even larger, at 15 to 20 percent, because asking
prices do not reflect effective closing prices.
"These price declines stem mainly from a sharp contraction in
consumer confidence, which is grounded in Brazil's economic
uncertainties, including faltering employment and high inflation
rates," said Cristiane Spercel, a Vice President and Senior
Analyst.
Liquidity is currently the most critical credit concern for
Brazil's homebuilders, as companies try and adjust their costs
while preserving their revenues and earnings. Despite some
homebuilders having already adjusted their commercial strategies,
the prolonged weakness of the industry could lead to changes in
the companies' liquidity and capital structures. This in turn
could increase losses for the industry's existing secured and
unsecured creditors.
Cyrela (Ba2 negative) has the best liquidity profile among the
rated public Brazilian homebuilders, with almost twice as much
available cash as short-term debt. Restructurings and distressed
exchanges will become more frequent in 2016, following such moves
by PDG Realty (Caa3 negative) and Viver (Caa3 negative) in 2015.
BRAZIL: Recession Drive Neg. Outlook for Insurers, Moody's Says
---------------------------------------------------------------
Brazil's prolonged economic recession and elevated inflation will
continue to weigh on the country's asset managers and insurers,
said Moody's Investors Service. The rating agency said the
challenging macroeconomic environment supports a negative outlook
for both sectors over the next 12 - 18 months.
The significant weakening of Brazil's macroeconomic environment
and sustained reduction in economic growth will adversely affect
demand for insurance products and weigh on the investment flows.
In addition, earnings for insurers and asset managers will be
constrained as they adjust to the 5% increase in financial
institutions' social contribution tax, which will limit the firms'
ability to generate equity capital, thereby, weakening capital
adequacy and raising operating leverage.
"While Brazilian asset managers and insurers face a challenging
operating environment, bank-affiliated firms' focused on offering
fixed income and pension funds will continue to appeal to risk-
averse investors, giving them an advantage over independent ones,"
said Moody's Managing Director Marc Pinto.
Moody's expects pressure on Brazilian asset managers to worsen as
the downturn weighs the savings capacity for both individuals and
investors. While tax-exempt vehicles will continue to be an
important investment alternative, savings accounts may not fare as
well, as retail investors face increased inflation and
indebtedness along with decreased real returns.
"The difficult economic conditions are going to challenge Brazil's
asset managers' ability to beat benchmarks and reduce the
performance fees they're able to retain while deteriorating their
financial strength," said Moody's Vice President Jose Montano.
Moody's said the rising risks related to the country's softening
labor market, high inflation, and fiscal adjustments, will also
dampen the Brazilian insurance industry's growth prospects.
Additionally, insurers' high sovereign exposure -- approximately
90% of total invested assets industrywide -- also limits insurers'
risk-adjusted profitability and capitalization.
"The improved income distribution and better living standards of
the past decade for lower-income households supported demand for
insurance products in Brazil," said Moody's Vice President Diego
Kashiwakura. "Now, with the country weathering a weakened
macroeconomic environment, that demand has started to fade."
SETE BRASIL: Lenders Said to Tap $1 Billion State-Backed Fund
-------------------------------------------------------------
Francisco Marcelino at Bloomberg News reports that Sete Brasil
Participacoes SA's creditors, including Banco do Brasil SA and
Itau Unibanco Holding SA, received BRL2.68 billion ($670 million)
from a government-backed fund and will likely tap about BRL1.58
billion more, according to a person familiar with the matter.
Creditors withdrew the money from the fund created with government
assets in 2008 after Sete Brasil couldn't repay $3.8 billion in
outstanding debt, said the person, who asked not to be identified
because the matter is private, according to Bloomberg News. Data
from Brazil's securities regulator show the fund reported a
BRL2.11 billion withdrawal on Feb. 10 and an additional BRL566.5
million on Feb. 12, Bloomberg News notes.
Bloomberg News says that the group of six creditors will soon take
out the remaining balance to cover part of Sete's debt, the person
said. The fund, which was created to guarantee lending for ship
and oil-rig construction in Brazil, had assets of about BRL1.58
billion on Feb. 12, regulatory data show.
By tapping the money, the banks are essentially transferring the
onus of collecting the debt to the naval fund, which is operated
by state-controlled lender Caixa Economica Federal, the person
said, Bloomberg News relays.
Banco Bradesco SA, Banco Santander Brasil SA, Caixa and Brazilian
workers fund FI-FGTS are among other creditors benefiting from the
move, Bloomberg News notes. Sete Brasil had planned to build the
world's biggest deep-water drilling fleet for Petroleo Brasileiro
SA before the oil giant and the rig builder were engulfed in
Brazil's biggest-ever corruption scandal, Bloomberg News relays.
Representatives for Itau, Bradesco, Banco do Brasil, Santander,
Sete Brasil and FI-FGTS declined to comment. Caixa declined to
comment saying the transaction is protected by bank secrecy.
Last month, Sete Brasil's shareholders, including Grupo BTG
Pactual and Santander, discussed a plan for the rig builder to
file for bankruptcy protection, the person said, Bloomberg News
discloses. Instead, creditors agreed to renew a standstill loan
for four months in exchange for being able to get access to the
naval fund, according to the person, Bloomberg News adds.
==========================
C A Y M A N I S L A N D S
==========================
ACHIEVEMENT CONCENTRATED: Shareholders Receive Wind-Up Report
-------------------------------------------------------------
The shareholders of Achievement Concentrated Fund Ltd. received on
Jan. 14, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Achievement Asset Management LLC
c/o Donna MacDonald
141 West Jackson Boulevard
Suite 800, Chicago
Illinois 60604
United States of America
Telephone: + 312 444 8707
ARENA CAPITAL: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Arena Capital Limited received on Jan. 21,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
BROADWAY GATE: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Broadway Gate Offshore Fund, Ltd. received on
Jan. 28, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Pennant Capital Management, LLC
c/o Tim Cone
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949 9877
EP PARTNERS: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of EP Partners SPC received on Jan. 14, 2016, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
ETON PARK 1: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Eton Park CLO Management 1 received on
Jan. 14, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
ETON PARK 2: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Eton Park CLO Management 2 received on
Jan. 14, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
FLORIDA PROPERTIES: Shareholders Receive Wind-Up Report
-------------------------------------------------------
The shareholders of Florida Properties Ltd. received on Jan. 19,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
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
GENUITY MASTER: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Genuity Master Fund SPC received on Jan. 12,
2016, 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
RIO CAPITAL: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Rio Capital Fund Ltd. received on Jan. 21,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor,
P.O. Box 1344, Grand Cayman KY1-1108
Cayman Islands
SMITH BREEDEN: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Smith Breeden Investment Grade Core Bond
Master Ltd. received on Jan. 14, 2016, the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
Amundi Smith Breeden LLC
c/o Barnaby Gowrie
Telephone: +1 (345) 914 6365
T ASIA L HOLDINGS: Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of T Asia L Holdings, Ltd. received on Jan. 21,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
TAO L HOLDINGS: Members Receive Wind-Up Report
----------------------------------------------
The members of Tao L Holdings, Ltd. received on Jan. 21, 2016, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
TE CALEL: Shareholders Receive Wind-Up Report
---------------------------------------------
The shareholders of Te Calel Investors, Ltd. received on Jan. 14,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
TE CALEL PORTFOLIO: Shareholders Receive Wind-Up Report
-------------------------------------------------------
The shareholders of Te Calel Portfolio, Ltd. received on Jan. 14,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REP: No New Trade Pacts Until Old Ones are Reviewed
-------------------------------------------------------------
Dominican Today reports that Inter-American Businesses Association
(Asine) President Leonel Castellanos said the Dominican Republic
must reformulate its foreign trade policy in the heels of what he
calls unfavorable results from the free trade agreements inked
with other Central American and Caribbean nations.
Mr. Castellanos supports the positon by the Haina Industries and
Companies Association, which opposes entering into more free trade
pacts until the country reviews those it already signed, according
to Dominican Today.
The report notes that Mr. Castellanos, interviewed by newspaper
Hoy, said Dominican Republic's trade balance is still unfavorable
because the country lacks a foreign trade policy that promotes
exports and makes productive sectors competitive compared with its
rivals, despite similar economies.
Mr. Castellanos said it's a "shame" the country has a trade
deficit with other nations despite having posted the highest
economic growth in the Latin American region, the report relays.
"That forces us to examine ourselves within," Mr. Castellanos
added.
Among the factors Mr. Castellanos says make the country
uncompetitive the business leader listed problems of transport, a
failed electricity service, expensive fuels, obsolete Labor Code
and the lack of regulation to verify the quality of products
entering the country, the report says.
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'. The Rating Outlooks on the long-term IDRs are revised to
Positive from Stable. The issue ratings on the Dominican
Republic's senior unsecured foreign and local currency bonds are
affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the
short-term foreign currency IDR at 'B'.
===========
M E X I C O
===========
COBRE DEL MAYO: Moody's Affirms Ca CFR; Outlook Stable
------------------------------------------------------
Moody's Investors Service has affirmed Cobre del Mayo, S.A. de
C.V.'s Ca Corporate Family Rating. The affirmation follows the
completion and settlement of the company's tender offer for its
USD 217 million, 10.75% senior unsecured global notes due in 2018.
The outlook is stable.
RATINGS RATIONALE
The affirmation of Cobre del Mayo's Ca rating reflects the
settlement, on Feb. 9, 2016, of the tender offer for its USD 217
million notes due 2018. The exchange resulted in the retire of
around 95% of the total outstanding amount, in which bondholders
of the notes consented and tendered faced a 45% loss. Given the
significant discount to par, Moody's considered the transaction as
a distressed exchange and an event of default. The new notes are
senior secured obligations due in 2021. In addition to the USD
113 million related with the tender offer, Cobre del Mayo also
converted around USD 18 million in accrued interests and a loan
from shareholders into the 2021 notes. Therefore, Moody's
estimates that some USD130 million are now outstanding under the
2021 senior secured notes. Additionally, the company still has
about USD 11.8 million in remaining notes due 2018.
After the exchange, Cobre del Mayo significantly reduced its
leverage, to an adjusted pro-forma 5.0 times debt/EBITDA from 9.1
times as of September 2015, but bondholders still face probability
of default and recovery prospects commensurate with the Ca rating
category. Given the challenging operating environment for global
mining companies and Cobre del Mayo's high cost structure, there
are still uncertainties around the company's ability to generate
cash and internally fund operating cash needs, including interest
payments. Moreover, the company's asset base continues to be weak
and, under a liquidation scenario, bondholders would still face
significant losses despite the recent improvements in capital
structure. Cobre del Mayo's ability to generate cash will also be
affected by a challenging operating environment for the overall
mining sector. Slowing growth in China, which consumes and
produces at least half of base metals, is weakening demand for
these commodities and driving prices to multi-year lows. China's
outsized influence on the commodities market, coupled with the
need for significant recalibration of supply to bring the industry
back into balance indicates that this is not a normal cyclical
downturn, but a fundamental shift that will place an unprecedented
level of stress on mining companies.
The stable outlook reflects our expectation that potential losses
for creditors in case of a default will not be greater than those
associated with a Ca rating.
An upgrade is unlikely in the short term given Cobre del Mayo's
very tight liquidity and weak operating performance. Upward
pressure on the rating would require evidence that the company is
able to internally fund cash needs including interest payments.
For example if initiatives to improve efficiency result in a
material increase of cash from operations despite the challenging
operating environment for the global mining industry.
A downgrade would be considered if further deterioration in
liquidity and credit metrics imply estimates of deeper losses to
creditors in case of default.
Cobre del Mayo, S.A. de C.V. is a Mexican mining company that
operates the Piedras Verdes (PV) open-pit copper mine in Mexico.
It is 71.2% owned by Invecture Group S.A. de C.V. and 28.8% by
Lawrie Associates LLP. In October 2014, CDM's owners acquired 40%
of Kupari Metals, the operator of the flotation plant at Piedras
Verdes; and contributed them to CDM as fresh equity. Cobre del
Mayo is currently producing LME grade A copper cathode and sells
refractory and vein type ore for processing into concentrate.
Mineral reserves are 1.3 million tons of copper and the mine life
is estimated at more than 15 years. For the twelve months ended
Sept. 30, 2015, Cobre del Mayo had revenues of USD179 million.
SERVICIOS CORPORATIVOS: S&P Raises Corp. Credit Rating to 'BB-'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Servicios Corporativos Javer, S.A.B. de C.V. to
'BB-' from 'B+'.
S&P also raised its issue-level rating on the company's senior
unsecured notes due 2021 to 'BB-' from 'B+'. In addition, S&P
revised its recovery rating on this debt to '3H' from '4H',
indicating S&P's expectation of meaningful (50%-70%; higher band
of the range) recovery prospects for the bondholders in the event
of a payment default.
At the same time, S&P removed the ratings from CreditWatch
positive, where it had placed them on Jan. 14, 2016, following the
announcement that Javer would use the proceeds of its IPO to
prepay part of its senior unsecured notes due 2021. The outlook
is stable.
The upgrade reflects Javer's successful debt reduction following
the closing of its IPO on the Mexican stock exchange on Jan. 13,
2016. Through this transaction, Javer was able to raise
approximately MXN1.8 billion, considering the issuance of 94.8
million shares at an offering price of MXN19.00 per share. On
Jan. 19, 2016, Javer used the net proceeds of the IPO, together
with part of its cash reserves, to prepay $136 million of its
outstanding senior unsecured notes due 2021. The prepayment
strengthened the company's credit metrics, reduced its exposure to
dollar-denominated debt, and lowered borrowing costs.
S&P has consequently revised its assessment on Javer's financial
risk profile to significant from aggressive. In line with S&P's
previous publication, Javer's credit metrics will gradually
improve because S&P expects healthy top-line growth--stemming from
our view of the favorable industry fundamentals in Mexico--should
bolster housing titling in 2016. S&P also expects the company to
continue focusing on cash flow generation through its strategy to
improve profitability and to maintain an efficient working capital
cycle. Moreover, following the completion of IPO, S&P
incorporates in its analysis the change in the company's dividend
distribution policy because Javer is now required to pay at least
50% of its free operating cash flow on an annual basis to its
shareholders.
Javer's weak business risk profile continues to reflect its high
concentrationin Mexico's northern region, particularly the state
of Nuevo Leon. Moreover, Javer continues to rely heavily on
government-owned mortgage lender, Infonavit, and subsidy programs
for low-income homebuyers. However, S&P believes that the company
will gradually reduce its reliance on subsidies and diversify its
sales mix by offering products to the middle-income homebuyers.
======================
P U E R T O R I C O
======================
PUERTO RICO: House of Reps Passes Bill to Restructure $9BB in Debt
------------------------------------------------------------------
Mary Williams Walsh, writing for The New York Times' DealBook,
reported that a plan to restructure about $9 billion of Puerto
Rico's debt, hailed as a model for the rest of the island's debt-
laden government, moved toward the desk of Gov. Alejandro Garcia
Padilla to be signed into law, after winning approval by Puerto
Rico's House of Representatives.
According to the report, the Puerto Rico Senate, which approved a
similar bill, was still working to iron out differences between
the two bills. The restructuring deal was set to expire at
midnight on Feb. 16 if not signed by the governor, but a person
with knowledge of the proceedings who spoke on the condition of
anonymity, said the lawmakers were within striking distance of
agreement and the creditors were not inclined to enforce the
deadline.
STANDARD REGISTER: Court Spares Directors Over Ch. 11 Claims
------------------------------------------------------------
Matt Chiappardi at Bankruptcy Law360 reported that a Delaware
bankruptcy judge on Feb. 8, 2016, threw out adversary claims from
the Standard Register Co. estate liquidating trust that directors
played a role in tanking the company by approving the prepetition
merger with debt-ridden rival WorkflowOne LLC, but will allow the
trustee a second swing at their bonus compensation.
During a hearing in Wilmington, U.S. Bankruptcy Judge Brendan L.
Shannon said the trustee hadn't presented any facts to show that
directors of document manager Standard Register were not acting
within the best interests of the company.
About Standard Register
Standard Register provided market-specific insights and a
compelling portfolio of workflow, content and analytics solutions
to address the changing business landscape in healthcare,
financial services, manufacturing and retail markets. The Company
had operations in all U.S. states and Puerto Rico, and had 3,500
full-time employees.
The Standard Register Company and 10 affiliated debtors sought
Chapter 11 protection in Delaware on March 12, 2015, with plans to
launch a sale process where its largest secured lender would serve
as stalking horse bidder in an auction.
The cases are pending before the Honorable Judge Brendan L.
Shannon and are jointly administered under Case No. 15-10541.
The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young
Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery &
Transformation Services U.S., LLC, as restructuring advisors; and
Prime Clerk LLC as claims agent.
The Official Committee of Unsecured Creditors tapped Lowenstein
Sandler LLP as its counsel and Jefferies LLC as its exclusive
investment banker.
* * *
Assets of Standard Register and its affiliates were sold to Taylor
Corp., a privately held company. The sale to Taylor closed on
July 31, 2015.
SRC Liquidation Company, f/k/a The Standard Register Company, and
its affiliated debtors on Nov. 19, 2015, won confirmation of their
Second Amended Chapter 11 Plan of Liquidation. The Effective Date
of the Plan occurred on Dec. 18, 2015. The Plan proposes to pay
1% of the allowed claims of general unsecured creditors.
================================
T R I N I D A D & T O B A G O
================================
* TRINIDAD & TOBAGO: Jobless Rate Could Jump to 15%
---------------------------------------------------
Trinidad Express reports that the University of the West Indies'
Prof Karl Theodore has warned that the country's unemployment rate
could jump to as high as 15 per cent during the present recession,
given that employment is strongly dependent on the energy sector.
Speaking at the first meeting of the Trinidad and Tobago Bipartite
Forum, at the Kapok Hotel, Maraval, Prof. Theodore pointed out
that during the last recession the unemployment rate jumped from
11 per cent in 1982 to 20 per cent in 1992, according to Trinidad
Express.
Prof. Theodore said applying this logic to the present recession
period would mean that in ten years' time the rate would increase
from four per cent to eight per cent, the report relays.
Prof. Theodore is of the belief, though, that this figure would be
much higher and that the country must brace itself for an
unemployment rate that could rise to 15 per cent, 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.
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