/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160308.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, March 8, 2016, Vol. 17, No. 47 Headlines B R A Z I L BRAZIL: Recovery Eludes Economy After Biggest Dive in 25 Years PETROLEO BRASILEIRO: Lula Meets with Rousseff Amid Probe C A Y M A N I S L A N D S ALCHEMY INDIA: Shareholders Receive Wind-Up Report BLACKPINE PRIVATE: Shareholder Receives Wind-Up Report CALLAWAY CAPITAL: Shareholders Receive Wind-Up Report COMMON SENSE: Shareholders Receive Wind-Up Report COMMON SENSE EVERGREEN: Shareholders Receive Wind-Up Report COMMON SENSE OFFSHORE: Shareholders Receive Wind-Up Report COMMON SENSE PARTNERS: Shareholders Receive Wind-Up Report COMMON SENSE PARTNERS SPV: Shareholders Receive Wind-Up Report CONDOR CAPITAL: Shareholders Receive Wind-Up Report CPC/WEETABIX SBS: Shareholders Receive Wind-Up Report DOUBLE HAVEN: Shareholders Receive Wind-Up Report JASMINE INVESTMENT: Members Receive Wind-Up Report MERIT INVESTMENTS: Members Receive Wind-Up Report OMAN HUNT: Shareholders Receive Wind-Up Report PLATINUM EQUITY: Shareholder Receives Wind-Up Report PWP ALPHA: Shareholder Receives Wind-Up Report PWP ALPHA MASTER: Shareholder Receives Wind-Up Report ST ALPHA: Shareholders Receive Wind-Up Report VOREDA WOODLANDS: Members Receive Wind-Up Report WANTHORPE OPPORTUNITY: Shareholders Receive Wind-Up Report J A M A I C A JAMAICA: JMA Wants Early Meeting with New Government M E X I C O MEXICO: Central Bank Cuts Growth Forecasts for 2016, 2017 SERVICIOS CORPORATIVOS: Fitch Hikes Issuer Default Ratings to 'B+' P U E R T O R I C O ANTILLES CARPET: Case Summary & 20 Largest Unsecured Creditors DF SERVICING: May Use Cash Collateral Until April 30 PUERTO RICO INVESTMENT: Case Summary & 4 Unsecured Creditors T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Not Bankrupt, Prime Minister Says V E N E Z U E L A VENEZUELA: Moody's Affirms Caa3 Ratings & Changes Outlook to Neg. - - - - - =========== B R A Z I L =========== BRAZIL: Recovery Eludes Economy After Biggest Dive in 25 Years -------------------------------------------------------------- David Biller at Bloomberg News reports that Latin America's largest economy shrank the most in a quarter century last year and no recovery is in sight as shriveling demand and political crisis pummel activity. Brazil's gross domestic product contracted 1.4 percent in the three months ended in December, after a 1.7 percent drop the previous quarter, the national statistics institute said in Rio de Janeiro, according to Bloomberg News. While the figure was better than the 1.6 percent decline estimated by 47 economists surveyed by Bloomberg, it wasn't enough to prevent Brazil's GDP from sinking 3.8 percent in 2015. That was the greatest plunge in 25 years, according to data from the government's economic research institute IPEA, Bloomberg News notes. "There's nothing to celebrate in these GDP figures," Luciano Rostagno, chief strategist at Banco Mizuho do Brasil, told Bloomberg News by phone. "There is no reason to expect the economy will rebound. Investment and industry activity are expected to remain weak, and the outlook for private consumption remains bleak on back of job and credit market conditions," he added. Bloomberg News notes that investors have been holding back as political uncertainty swirls amid a sweeping corruption investigation and the central bank holds interest rates at their highest since 2006. A weakened currency has helped improve the competitiveness of exporters, which the government has said will help spur Brazil's recovery, Bloomberg News relays. Still, joblessness is on the rise, inflation is in double-digits and both companies and the government are receiving downgrades, Bloomberg News says. Investment Plunge Bloomberg News notes that fourth-quarter investment plunged 4.9 percent -- its seventh consecutive drop -- as family consumption fell by 1.3 percent. The latter was slightly better than anticipated, according to Jankiel Santos, chief economist at Haitong in Sao Paulo, and Edward Glossop, emerging-market economist at Capital Economics Ltd, Bloomberg News relays. "Private consumption did fall at a slower pace, and that could be another reason why the economy performed better than it did in the previous quarter," Mr. Glossop told Bloomberg News by phone from London. "But it's still four consecutive quarters of decline, so nothing to cheer about," he added. Net exports also contributed positively to the fourth-quarter result, but mainly because of a 5.9 percent drop in imports, according to Banco Mizuho's Rostagno, Bloomberg News says. Exports fell 0.4 percent. The Finance Ministry said the economy may stabilize in the third quarter and rebound by the end of the year as the government focus on initiatives to boost investment, expand credit and keep jobs, Bloomberg News notes. "The main challenge at the moment is to recover internal demand," it said in a statement obtained by Bloomberg News. Elusive Recovery Consumer and investor confidence levels have rebounded this year from record lows, which would normally suggest that the economy is bottoming. However, private-sector credit problems signal there's no turnaround in sight just yet, Carlos Kawall, chief economist at Banco Safra, told Bloomberg News by phone from Sao Paulo. "This is a big difference compared to prior crises," Mr. Kawall said, Bloomberg News relays. "This will prevent the bottom from being as soon as the confidence indicators are suggesting, and poses downside risks." Brazilian courts granted more than 5,500 bankruptcy filings in 2015, the most since 2008, according to Sao Paulo-based credit rater Serasa Experian, Bloomberg News notes. Standard & Poor's, Fitch Ratings and Moody's Investors Service have handed out 133 downgrades to Brazilian non-financial companies so far this year, an average of more than three each business day, according to data compiled by Bloomberg. The prolonged recession has made it tougher for the government to shore up its finances, Bloomberg News notes. Fiscal consolidation plans were met with resistance from an opposition emboldened by proceedings to impeach President Dilma Rousseff, as well as from coalition lawmakers incensed by initiatives to cut spending, Bloomberg News relays. The nation's nominal budget deficit as a percentage of GDP reached 10.8 percent in January, its highest on record, as gross debt as a percentage of GDP climbed to 67 percent, Bloomberg News notes. Fourth-quarter data will also weigh down near-term performance due to a statistical quirk known as the carry-over effect, by which the previous quarter affects the subsequent period's result, Bloomberg News says. If 2016 GDP were to remain at the same level as recorded in the fourth quarter, it would decline 2.4 percent, according to Enestor dos Santos, principal economist at Banco Bilbao Vizcaya Argentaria SA in Madrid, said by phone, Bloomberg News relays. Brazil's economy will contract 3.45 percent this year, according to the median forecast from economists surveyed by the central bank, Bloomberg News discloses. The Organization for Economic Cooperation and Development forecasts the Brazilian economy to contract 4 percent this year, while the International Monetary Fund sees a 3.5 percent recession, Bloomberg News relays. Both forecast stagnation next year, which would mean no growth until 2018 when Brazilians elect a new leader, Bloomberg News notes. As reported in the Troubled Company Reporter - Latin America on Feb. 26, 2016, Moody's Investors Service has downgraded Brazil's issuer and bond ratings to Ba2 and changed the outlook to negative. PETROLEO BRASILEIRO: Lula Meets with Rousseff Amid Probe -------------------------------------------------------- EFE News reports that Brazilian President Dilma Rousseff visited her political mentor and predecessor, Luiz Inacio Lula da Silva, at his apartment in this southeastern city a day after he was detained for questioning as part of the probe into a massive corruption scheme centered on state-controlled oil company Petrobras. The head of state arrived at Mr. Lula's home in Sao Bernardo do Campo, a suburb of Sao Paulo, where some 300 people had gathered to show their support for the charismatic former president and co- founder of the Workers' Party, or PT, according to EFE News. The crowd also showed its backing for President Rousseff, chanting "No coup" in reference to the opposition's attempt to impeach her for allegedly massaging budget figures to disguise the size of the deficit, the report relays. Although she did not meet with people on the street, President Rousseff, Lula and the ex-president's wife, Marisa Leticia, later greeted the crowd from the balcony of the apartment, the report notes. President Rousseff raised her left fist to the crowd, while the supporters chanted "Lula, warrior of the Brazilian people" and waved red flags and shirts (the color of the center-left PT), the report says. Minutes earlier, Mr. Lula had greeted and mingled with his supporters, many of whom had camped out overnight to show their solidarity with the popular politician, at the entrance to the apartment building, the report discloses. Federal Police raided Mr. Lula's home in Sao Bernardo do Campo and then brought him in for three hours of questioning at a police station located at Congonhas Airport in Sao Paulo, the report notes. The ex-president, who governed Brazil from 2003 through the end of 2010, said afterward that he had felt like a "prisoner" and called his detention an "insult," the report notes. Prosecutors, for their part, said that the body of evidence against Lula was "quite significant" and that Mr. Lula's foundation had received nearly BRL20 million (some $5 million) in donations from the five engineering and construction companies most closely tied to the bribes-for-inflated contracts scandal centered on Petrobras, the report relays. The main focus of the Petrobras investigation has been on an alleged cartel of 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 notes. Mr. Lula was detained for questioning a day after Brazil's Supreme Court voted unanimously to allow prosecution of lower house speaker Eduardo Cunha for his alleged involvement in the Petrobras scandal, discloses the report. Numerous convictions have already been handed down in the $2 billion corruption scandal, with senior construction company officials among those sentenced to prison or house arrest, the report relays. President Rousseff, a former Petrobras chair who succeeded Mr. Lula as president in 2011, has not been implicated in the scandal, the report adds. As reported in the Troubled Company Reporter-Latin America on Feb. 26, 2016, Moody's Investors Service downgraded all ratings for Petroleo Brasileiro S.A. - PETROBRAS ("Petrobras")'s and ratings based on Petrobras' guarantee, including the company's senior unsecured debt and Corporate Family Rating to B3 from Ba3. The company's baseline credit assessment (BCA) was lowered to caa2 from b3. At the same time, Moody's downgraded Petrobras Argentina S.A. ("PESA")'s ratings, including its senior unsecured medium term note program and Corporate Family Rating to B3 from B2, in line with the senior unsecured rating of Petrobras. ========================== C A Y M A N I S L A N D S ========================== ALCHEMY INDIA: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Alchemy India Fund (Cayman) 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: Atul Sharma 78 Bayshore Road #05-22 Costa Del Sol 469991 Singapore Telephone: (+65) 6597-7082 Facsimile: (+65) 6410-9590 BLACKPINE PRIVATE: Shareholder Receives Wind-Up Report ------------------------------------------------------ The shareholder of Blackpine Private Equity SLP Limited received on Jan. 20, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lawrence Sheng Yu Chu Flat E3, Unicorn Garden, 3rd Floor 11 Shouson Hill Road East Shouson Hill Hong Kong Telephone: +852 3700 9700 Facsimile: +852 3579 1918 CALLAWAY CAPITAL: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Callaway Capital GP received on Jan. 29, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Susan Craig/Jennifer Chailler Telephone: (345) 943-3100 COMMON SENSE: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Common Sense Long-Biased Offshore, Ltd. received on Jan. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Fort Rock Asset Management, LLC c/o Mike Wietecki 15350 SW Sequoia Parkway Suite 250, Portland Oregon 97224 United States of America Telephone: +1 (503) 603 2516 e-mail: mwietecki@fort-rock.com COMMON SENSE EVERGREEN: Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of Common Sense Evergreen Fund, Ltd. received on Jan. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Fort Rock Asset Management, LLC c/o Mike Wietecki 15350 SW Sequoia Parkway Suite 250, Portland Oregon 97224 United States of America Telephone: +1 (503) 603 2516 COMMON SENSE OFFSHORE: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Common Sense Offshore, Ltd. received on Jan. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Fort Rock Asset Management, LLC c/o Mike Wietecki 15350 SW Sequoia Parkway Suite 250, Portland Oregon 97224 United States of America Telephone: +1 (503) 603 2516 COMMON SENSE PARTNERS: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Common Sense Partners BPI, Ltd. received on Jan. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Fort Rock Asset Management, LLC c/o Mike Wietecki 15350 SW Sequoia Parkway Suite 250, Portland Oregon 97224 United States of America Telephone: +1 (503) 603 2516 COMMON SENSE PARTNERS SPV: Shareholders Receive Wind-Up Report -------------------------------------------------------------- The shareholders of Common Sense Partners BPI SPV, Ltd. received on Jan. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Fort Rock Asset Management, LLC c/o Mike Wietecki 15350 SW Sequoia Parkway Suite 250, Portland Oregon 97224 United States of America Telephone: +1 (503) 603 2516 CONDOR CAPITAL: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Condor Capital Management Limited received on Jan. 25, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Arnaud Cayla 30 Place de Madeleine 75008 Paris France Telephone: +33 1 53 43 20 43 CPC/WEETABIX SBS: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of CPC/Weetabix SBS, Ltd. received on Jan. 26, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Royal W. Carson, III Harbour Place, 4th Floor 103 South Church Street P.O. Box 10240 Grand Cayman KY1-1002 Cayman Islands Telephone: +1 (214) 999-1000 Facsimile: +1 (214) 999-1022 DOUBLE HAVEN: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Double Haven Asia Credit OC Fund received on Jan. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kanwaljit Singh Bahra c/o Double Haven Capital (Hong Kong) Limited Level 41, 4104-08, 248 Queen's Road East Wan Chai Hong Kong JASMINE INVESTMENT: Members Receive Wind-Up Report -------------------------------------------------- The members of Jasmine Investment Company received on Feb. 4, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands MERIT INVESTMENTS: Members Receive Wind-Up Report ------------------------------------------------- The members of Merit Investments Limited received on Feb. 4, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands OMAN HUNT: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of Oman Hunt Oil Company received on Jan. 26, 2016, 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 PLATINUM EQUITY: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Platinum Equity Plus Fund Limited received on Jan. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: K.D. Blake c/o Jenna Nicholson Telephone: (345) 914-4494/ (345) 949-4800 Facsimile: (345) 949-7164 P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands Telephone: 345-949-4800 PWP ALPHA: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of PWP Alpha Europe Long Only Offshore Fund Ltd. received on Jan. 26, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Piers Dryden Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 PWP ALPHA MASTER: Shareholder Receives Wind-Up Report ----------------------------------------------------- The shareholder of PWP Alpha Europe Long Only Master Fund Ltd. received on Jan. 26, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Piers Dryden Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 ST ALPHA: Shareholders Receive Wind-Up Report --------------------------------------------- The shareholders of St. Alpha Event Fund Ltd. received on Jan. 26, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stone Toro Asset Management LLC 313 Commons Way Princeton New Jersey 08540 United States of America Telephone: +1 (609) 748 1936 e-mail: richard@stonetoro.com VOREDA WOODLANDS: Members Receive Wind-Up Report ------------------------------------------------ The members of Voreda Woodlands Holdco Limited received on Feb. 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian Robert Kingston Smith & Partners LLP Devonshire House 60 Goswell Road, London EC1M 7AD United Kingdom WANTHORPE OPPORTUNITY: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Wanthorpe Opportunity Fund SPC received on Jan. 26, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Shi Lanjiang Room 701, 24th Building No 5 Xiang Xi Road Xiangzhou District, Zhuhai City Guangdong Province People's Republic of China PRC 519000 ============= J A M A I C A ============= JAMAICA: JMA Wants Early Meeting with New Government ---------------------------------------------------- RJR News reports that the Jamaica Manufacturers' Association (JMA) will be seeking an early meeting with the new Jamaican Government to discuss issues related to the sector. Metry Seaga, President of the JMA, told RJR News that his organization hopes to meet with Prime Minister Andrew Holness and the relevant portfolio minister as soon as possible, "just to reiterate how important the manufacturing sector is . . . . to advise them of some of the issues we have been battling with over the years, and to see how we can help," according to RJR News. Arising from those discussions, the manufacturers and the government would then be better able to determine what policies should be put in place "to ensure that there is growth in our sector, which we feel will redound to growth in the entire economy," the report quoted Mr. Holness as saying. Sugar Cess Mr. Seaga asserted that, with the change in government, the proposed sugar cess will no longer be a problem for the manufacturing sector, the report notes. That issue, having been introduced by Derrick Kellier, the outgoing Minister of Agriculture he said he did not expect the new government will be pursuing it, and therefore, he said, the JMA will not even raise it during the meeting with the Prime Minister, "unless it is brought up," the report relays. Mr. Kellier last year disclosed that proceeds from the cess would be used to finance the sugar industry's transformation, the report notes. Mr. Kellier said then that the government would not allow imported refined sugar, meant for the manufacturing sector, to continue to be leaked to the retail trade, and undermine raw sugar production as well as rob the Government of Jamaica of revenue, the report adds. * * * As reported in Troubled Company Reporter-Latin America on July 29, 2015, Standard & Poor's Ratings Services assigned its 'B' issue rating on Jamaica's up to US$2 billion in bonds issued in two tranches. The first tranche is for up to US$1,350 million due in 2028. The second tranche is for up to US$650 million due in 2045. The government will use the proceeds to purchase debt that Jamaica owes to Venezuela as well as to finance the government's 2015/2016 budget. =========== M E X I C O =========== MEXICO: Central Bank Cuts Growth Forecasts for 2016, 2017 --------------------------------------------------------- Reuters reports that Mexico's central bank lowered its growth outlook for this year and next, adding that it expects inflation to approach its 3 percent target in 2016. The central bank, in its quarterly inflation report posted online, said it now saw growth in 2016 between 2 and 3 percent, below the 2.5-3.5 percent forecast in its last report, according to Reuters. The bank also lowered its growth expectations for 2017 to 2.5 to 3.5 percent from 3 to 4 previously, the report relays. SERVICIOS CORPORATIVOS: Fitch Hikes Issuer Default Ratings to 'B+' ------------------------------------------------------------------ Fitch Ratings has upgraded Servicios Corporativos Javer, S.A.B de C.V.'s (JAVER) local and foreign currency Issuer Default Ratings (IDRs) to 'B+' from 'B'; Fitch has also upgraded JAVER's outstanding $US159 million senior notes due 2021 to 'BB-/RR3' from 'B+/RR3'. The Rating Outlook is revised to Positive from Stable. The ratings upgrade reflects JAVER's strengthened financial profile after the company completed its Initial Public Offering (IPO) which consisted in selling among investors 34% of the company's equity. Proceeds from the IPO were used to reduce the company's indebtedness. The total amount of net proceeds obtained was MXN1.748 billion. Previously, the company launched on Dec. 18, 2015 a tender offer for its senior notes due in 2021 and became effective on Jan. 19, 2016, in which $US136 million of the notes outstanding were repurchased with the IPO funds and cash on hand. In addition, the company had repurchased in the open market around $US25 million of the senior notes, which represented a total debt reduction of $US161 million. The pro forma effects of these transactions results in a total debt of MXN2.539 billion from MXN4.795 billion registered at the end of December 2015. Total leverage (total debt at face value/EBITDA) and net leverage are estimated to be 3.0x and 2.6x respectively, which compares favourably to 5.6x and 4.4x as of fourth-quarter 2015. The Positive Outlook reflects the company's financial profile reconfiguration which should translate in additional operating flexibility in the form of lower interest expense, lower exposure to foreign currency debt mismatch with local currency cash flows, and stronger credit metrics. The IDRs could be upgraded if the company successfully refinances the remaining dollar-denominated debt with a new Mexican peso-denominated instrument, maintains its target of positive free cash flow (FCF) generation through the business cycle, in conjunction with a total debt to EBITDA approximating 2.5x. JAVER's ratings reflect the company's solid business position as the national leader in houses sold through Infonavit (17,501 units), land reserves equivalent to five years of production and focus on positive FCF generation. The ratings are limited by the company's limited geographic diversification and high dependency in Infonavit system. KEY RATING DRIVERS Leading Market Position: JAVER is the leading homebuilding company in Mexico based on the number of units sold through the Infonavit system. During 2015, the company sold 17,501 units through Infonavit, out of a total of 18,565 homes sold. The company holds a leading position on its main markets (states of Nuevo Leon and Jalisco). JAVER has presence in states with the highest income per capita (Nuevo Leon, Jalisco and Queretaro) and positive economic and population growth trends (Queretaro and Estado de Mexico) that have a positive relation with the number of available mortgages through the Infonavit system. Ability to Adjust Sales Strategy: The company has shown the ability to adjust its sales strategy according to market dynamics. JAVER has the ability to adapt the prices of its inventory of units ready to be sold. Given the uncertain market conditions regarding subsidies to low income houses, the company was able to change its sales strategy, changing the sales mix towards increased middle-income houses. By the end 2015, 62% of the company units sold were middle-income houses compared to 47% in 2014. Limited Geographic Diversification: Historically, total revenue has been concentrated in only two states. As of Dec. 31, 2015, 77% of the total revenue was generated in Nuevo Leon and Jalisco. This concentration increases the company's dependence upon specific local and municipal governments to secure land and permits, and translates into exposure to individual market dynamics. This concentration has been decreasing slowly as the company enters other markets such as Estado de Mexico and Quintana Roo. Focus on Positive FCF: JAVER strategy is focused in generating positive FCF. During the past four years, the company has managed the investment in working capital in order to generate FCF. Management initiatives include increased inventory rotation through price adjustments, which in turn can have an impact on profitability, but lowering the inventory levels. As of Dec. 31, 2015, JAVER's FCF was MXN235 million, which compares favourably with MXN71 million generated in 2014. Fitch expects that JAVER will continue with the strategy to maintain working capital days at current levels in the coming years. Improvement in Credit Metrics: The repurchase of $US136 million of the outstanding senior notes of the company has improved its leverage levels. As of Dec. 31, 2015 and due to the Mexican Peso depreciation in 2015, total leverage and net leverage increased to 5.6x and 4.4x respectively from 5.3x and 3.9x in 2014. The pro forma total leverage and net leverage of the company, after the debt reduction, are 3.0x and 2.6x respectively. The company is working to refinance the remaining $US159 million through the issuance of a peso denominated credit facility, in order to improve financial cost, eliminate foreign currency debt exposure and extend the debt maturity profile. Fitch estimates total adjusted leverage between 3.0x and 2.5x and adjusted net leverage ranging between 2.6x and 2.2x in the next 24 to 36 months. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for JAVER include: -- Sales volume (housing units) average growth of 9% for 2016- 2017; -- JAVER's low-income units sold in 2016 resume growth; -- EBITDA margin around 14%, similar to current levels; -- Land capex within historic levels needed to replace deployed land reserves; -- Dividend payments increase to up toMXN400 million per year. RATING SENSITIVITIES Considerations that could lead to a negative rating action include: -- Weak operational results with sales volume decreases and EBITDA margin reduction below current level of 14%; -- Land capex levels substantially above current expectations of investing to replace land reserves used; -- Consistent negative FCF generation driven by increasing working capital needs due to slow inventory rotation; -- Total debt to EBITDA consistently above 3.0x. Positive rating actions can derive from the combination of the following factors: -- Strong operational results, reaching targets of housing units sold in the near future, while maintaining EBITDA margin at current levels, and continued positive FCF generation; -- Strengthening of the company's leverage ratio (total debt/EBITDA) to 2.5x; -- Refinancing of the outstanding $US159 million notes due 2021 with a peso denominated credit facility and elimination currency mismatch between cash flows and debt. LIQUIDITY JAVER's liquidity related to debt maturities and projected investments remains strong. The company changed their financing strategy from short-term debt and bridge loans financing to longer-term debt with the issuance of the senior notes due in 2021. As a result of this strategy, as of Dec. 31, 2015, the company's short-term debt represented 0.5% of the total debt. The capex plan for the next years is expected to be funded with the internally generated cash flow and cash on hand. FULL LIST OF RATING ACTIONS Fitch has upgraded the following ratings: Servicios Corporativos Javer, S.A.B. de C.V. - -Long-term Issuer Default Rating (IDR) to 'B+' from 'B'; -- Local currency long-term IDR to 'B+' from 'B'; -- $US159 million due 2021 senior unsecured notes to 'BB-/RR3' from 'B+/RR3'. The Rating Outlook is revised to Positive from Stable. The Recovery Ratings are 'RR3', which indicates good recovery prospects given default. 'RR3' rated securities have characteristics consistent with securities historically recovering 51%-70% of current principal and related interest in an event of default. ====================== P U E R T O R I C O ====================== ANTILLES CARPET: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Antilles Carpet, Inc. 1173 Ave. 65 De Infanteria San Juan, PR 00924 Case No.: 16-01724 Chapter 11 Petition Date: March 3, 2016 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Judge: Hon. Brian K. Tester Debtor's Counsel: Carmen D Conde Torres, Esq. C. CONDE & ASSOC. 254 San Jose Street, 5th Floor San Juan, PR 00901-1523 Tel: 787-729-2900 Fax: 787-729-2203 Email: condecarmen@condelaw.com Total Assets: $224,281 Total Liabilities: $3.13 million The petition was signed by John Hernandez Vazquez, vice-president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb16-01724.pdf DF SERVICING: May Use Cash Collateral Until April 30 ----------------------------------------------------- The Hon. Enrique S. Lamoutte Inclan of the United States Bankruptcy Court for the District of Puerto Rico has entered an interim order authorizing DF Servicing, LLC, et al., to use cash collateral until April 30, 2016. Secured lender Bautista Cayman Asset Company has consented to the Debtors' use of the cash collateral to fund (i) working capital and general corporate purposes of the Debtors, and (ii) costs, fees, and expenses incurred in connection with the administration and prosecution of the cases. The Lender is entitled to adequate protection of its interests in the cash collateral and prepetition collateral in an amount equal to the aggregate post-petition diminution in the value of its interests in the cash collateral and prepetition collateral. A copy of the court order is available for free at: http://is.gd/BE6UWE As reported by the Troubled Company Reporter on Feb. 10, 2016, Judge Inclan entered an order prohibiting the Debtors from using any cash collateral of the Lender and the Debtors were directed to show cause in writing why a further order should not be entered. The Lender had asked the Court to prohibit the Debtors' use of cash collateral until they provide adequate protection against the diminution in value of the Lender's cash collateral and condition the Debtors' continued use of cash collateral on the adequate protection. About DF Servicing Engaged in the business of purchase and sale of construction projects, DF Servicing, LLC, DF Tier I, LLC, DF Investments, LLC, and DF Holdings LLC filed Chapter 11 bankruptcy petitions (Bankr. D.P.R. Case Nos. 15-10253 to 15-10256) on Dec. 24, 2015. The petitions were signed by Mark Mashburn, the president. Charles A Cuprill, PSC Law Office, serves as counsel to the Debtors. PUERTO RICO INVESTMENT: Case Summary & 4 Unsecured Creditors -------------------------------------------------------------- Debtor: Puerto Rico Investment, S.E. 1173 Ave. 65 De Infanteria San Juan, PR 00924 Case No.: 16-01734 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: March 3, 2016 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Judge: Hon. Mildred Caban Flores Debtor's Counsel: Carmen D Conde Torres, Esq. C. CONDO & ASSOC. 254 San Jose Street, 5th Floor San Juan, PR 00901-1523 Tel: 787-729-2900 Fax: 787-729-2203 E-mail: condecarmen@condelaw.com Total Assets: $2.58 million Total Liabilities: $2.92 million The petition was signed by John Hernandez Vazquez, vice president/treasurer. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt. =============================== T R I N I D A D & T O B A G O =============================== TRINIDAD & TOBAGO: Not Bankrupt, Prime Minister Says ---------------------------------------------------- Joel Julien at Trinidad Express reports that Trinidad and Tobago is "certainly not bankrupt" but we do have "cash flow" problems, Prime Minister Dr. Keith Rowley has said. Dr. Rowley made the statement during a news conference held at the Magdalena Beach and Golf Resort in Lowlands, Tobago after what he described as a "successful retreat" of the Cabinet at the hotel over the weekend, according to Trinidad Express. The report notes that Dr. Rowley said the retreat focused on financial management of the State's affairs, the prioritizing of projects and the treatment of Government's commitments, including arrears owed to public servants and other debtors. Finance Minister Colm Imbert made a presentation and he "brought the Cabinet up to date in how we are going so far and where we are with respect to his preparation in reporting to the Cabinet" in the next few weeks with respect to the national budget, Dr. Rowley said, the report relays. ================= V E N E Z U E L A ================= VENEZUELA: Moody's Affirms Caa3 Ratings & Changes Outlook to Neg. ----------------------------------------------------------------- Moody's Investors Service has affirmed Venezuela's Caa3 issuer and government bond ratings and changed the outlook to negative from stable. The government's senior secured and senior unsecured government bond ratings were affirmed at Caa3, as were the senior unsecured shelf and MTN program ratings at (P)Caa3. The negative outlook reflects Moody's view that increased uncertainty surrounding economic and political events in Venezuela could increase the loss severity bondholders could face in the event of a default, a development to which we assign a high probability of occurrence. RATINGS RATIONALE RATIONALE FOR NEGATIVE OUTLOOK Venezuela is highly dependent on hydrocarbons to drive economic growth and to finance government expenditure. Oil and gas account for over 90% of goods exports and roughly 32% of GDP. It also provides around 45% of consolidated government revenues. Between September 2014 and September 2015, the oil price roughly halved. Since then, it has fallen a further 40%. Moody's recently revised its oil price assumptions for Brent to US$33 per barrel in 2016 and US$38 per barrel in 2017, rising only slowly thereafter to US$48 by 2019. The government balance sheet remains under intense pressure as the sovereign continues to draw down its assets at an accelerated pace. Between 2013 and 2015, Moody's estimates that revenue as a percentage of GDP declined by 4.1 percentage points and the fiscal deficit increased from 1.8 % in 2013 to 3.0% last year. These figures pertain to central government finances, although when consolidating Petroleos de Venezuela's (PDVSA) finances, fiscal deficits reach levels above 15% of GDP. However, it is challenging to pinpoint the exact level as the government ceased publishing fiscal statistics in 2014. During the same period the country's current account balance relative to GDP moved from a surplus of 0.2% to a deficit of 6.6%. Given the authorities' weak policy response, and other factors being equal, the depressed oil prices for the coming years would eventually precipitate a credit event. The widening gap between the official exchange rate (VEF10 per dollar) and the "market" exchange rate (VEF1,050 per dollar), denotes higher inflation, which has risen from 68.5% in 2014 to 180.9% in 2015. In its efforts to manage pressure on the exchange rate and cover its external funding gap, Venezuela has run down its international reserves from US$22.1 billion in 2014 to an estimated US$13.5 billion today, reducing its external buffers against future shocks. Similarly, the reduction in government assets from an estimated US$17 billion to some US$5 billion over the same period has significantly eroded the government's financial buffers. Meanwhile, the economy is expected to contract by an average of 1.9% annually over the next four years, a fall of 1.2 percentage points from the average level in the same period up to end-2015. The negative outlook reflects Moody's view that while the loss bondholders would have to bear in the event of a default -- a credit development to which we assign a very high probability of occurrence -- is extremely difficult to assess with precision given Venezuela' highly volatile economic and political environment, Moody's anticipates that it could exceed 35%. WHAT COULD RESULT IN A DOWNGRADE Given that the current Caa3 rating incorporates a very high risk of default, Moody's would downgrade Venezuela's rating if it concluded that losses in the event of a default would probably exceed 35%, or if such losses were to materialize. WHAT COULD STABILIZE THE RATING AT THE CURRENT LEVEL Although currently less likely, Moody's would move the outlook back to stable if the likelihood of a credit event were to decrease over the next 12-18 months due to a strong recovery in oil prices. Although unlikely in the near future, the rating would face upward pressure if balance of payments prospects were to improve significantly provided that a sufficiently large increase of financing flows ensures a stabilization of external accounts, further decreasing the likelihood of a credit event. GDP per capita (PPP basis, US$): 17,759 (2014 Actual) (also known as Per Capita Income) Real GDP growth (% change): -5.7% (2015 Actual) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 180.9% (2015 Actual) Gen. Gov. Financial Balance/GDP: -3% (2015 Estimate) (also known as Fiscal Balance) Current Account Balance/GDP: -6.6% (2015 Estimate) (also known as External Balance) External debt/GDP: 118.6% (2015 Estimate) Level of economic development: Low level of economic resilience Default history: At least one default event (on bonds and/or loans) has been recorded since 1983. On March 1, 2016, a rating committee was called to discuss the rating of Venezuela, Government of. The main points raised during the discussion were: The systemic risk in which the issuer operates has materially increased. The issuer has become increasingly susceptible to event risks. Other views raised included: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutional strength/ framework, have not materially changed. The issuer's governance and/or management, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The principal methodology used in these ratings was Sovereign Bond Ratings published in Deember 2015. The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable. *********** 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 comillionercial 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 * * *