/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160318.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 Friday, March 18, 2016, Vol. 17, No. 55 Headlines A R G E N T I N A ARGENTINA: Lawmakers Back Debt Settlement Deal PETROBRAS ARGENTINA: S&P Lowers Rating on $300MM Notes to 'B+' B R A Z I L HYPERMARCAS SA: Moody's Affirms Ba2 GS CFR, Outlook Now Negative JIVE INVESTMENTS: Out of Lehman's Ashes, Fund Returns 115% a Year MINAS GERAIS: Deficit May Widen Beyond Forecast, Moody's Says SAMARCO MINERACAO: Moody's Cuts Corporate Family Rating to Caa2 USINAS SIDERURGICAS: Capital Increase is Credit Pos., Moody's Says USINAS SIDERURGICAS: Fitch Cuts Issuer Default Ratings to 'C' C A Y M A N I S L A N D S AUBISQUE UK: Shareholder Receives Wind-Up Report BELLINGHAM INVESTMENTS: Placed Under Voluntary Wind-Up BOR COMPANY: Placed Under Voluntary Wind-Up DANYORI CAPITAL: Shareholders Receive Wind-Up Report DIARY INVESTMENTS: Members Receive Wind-Up Report DUBAI ENVIRONMANTAL: Shareholders Receive Wind-Up Report GP MANAGEMENT III: Shareholders Receive Wind-Up Report INTERNATIONAL INVESTMENT: Members Receive Wind-Up Report KEYSTONE LIMITED: Shareholders Receive Wind-Up Report MACQUARIE SPECTRUM: Members Receive Wind-Up Report MIDSHIPS CAPITAL: Placed Under Voluntary Wind-Up MIDSHIPS CAPITAL MASTER: Placed Under Voluntary Wind-Up MYOLD INC: Placed Under Voluntary Wind-Up NOVATO CORP: Placed Under Voluntary Wind-Up RBS SPECIAL: Shareholders Receive Wind-Up Report RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due Today RIPALA INVESTMENT: Members Receive Wind-Up Report SONICA INTERNATIONAL: Placed Under Voluntary Wind-Up WOODS FURNITURE: Commences Liquidation Proceedings YTAM OVERSEAS: Members Receive Wind-Up Report J A M A I C A JAMAICA: Consumers Face Largest Hike in Gas Prices in Over a Year M E X I C O MEXICO: Foreign Reserves Drop by $4 Million P U E R T O R I C O MORGANS HOTEL: Reports $5.45 Million Net Income for 2015 NORFE GROUP: Schedules $17.3M in Assets, $31.4M in Debt VILLAGE DEVELOPMENT: Case Summary & 15 Top Unsecured Creditors T R I N I D A D & T O B A G O ARCELOR MITTAL: TTMA Hits Firm for Closing Operations & Job Cuts - - - - - ================= A R G E N T I N A ================= ARGENTINA: Lawmakers Back Debt Settlement Deal ---------------------------------------------- BBC News reports that Argentina's lower house of Congress has approved a repayment deal which aims to put an end to a 14-year battle with holdout creditors. After 20 hours of debate, a majority of 165 to 86 lawmakers voted in favor of repealing two bills which stood in the way of the agreement with creditors, according to BBC News. It is a victory for President Mauricio Macri who struck the deal after his election win in November, the report relays. It will now go to the Senate, where it will likely face stiffer opposition, the report says. 'Vulture Funds' The debate in the Senate, where opposition parties have a majority, is scheduled to start later, the report relays. Time is of the essence: under the terms of the deal struck by President Macri with US creditors in New York, Argentina only has until April 14 to pay the holdouts, BBC News says. These are the creditors who refused to agree to a restructuring of Argentina's debt after it defaulted on nearly $100 billion (GBP71 billion) in 2001, the report discloses. At the heart of President Macri's deal is a cash payment of $4.7 billion, about 75% of what Argentina owes, to the funds which sued the South American country in a US court over non-payment, says the report. The previous government of President Cristina Fernandez de Kirchner refused to negotiate with the holdouts, whom it called "vulture funds," the report relays. The long-standing dispute has restricted Argentina's access to international credit markets. While its Latin American neighbours can borrow with interest rates of about 5%, Argentina has been forced to pay at least double, leaving the country without much-needed financial help, the report notes. President Macri had warned lawmakers that a "no" vote would condemn Argentina to continue being a "financial pariah" shunned by global credit markets, 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. PETROBRAS ARGENTINA: S&P Lowers Rating on $300MM Notes to 'B+' -------------------------------------------------------------- Standard & Poor's Ratings Services corrected its issue-level rating on Petrobras Argentina S.A.'s (PESA; B-/Stable/--) $300 million Series S notes due 2017 by lowering it to 'B+' from 'BB'. This rating is now the same as the corporate credit rating on the company's parent, Petroleo Brasileiro S.A. - Petrobras (Petrobras; B+/Negative/--) due to its full and unconditional payment guarantee. The rating error occurred on Feb. 17, 2016, when S&P downgraded Petrobras to 'B+' from 'BB' and didn't process the same rating action on PESA's $300 million Series S notes due 2017. RATINGS LIST Petrobras Argentina S.A. To From $300M Series S notes due 2017 B+ BB =========== B R A Z I L =========== HYPERMARCAS SA: Moody's Affirms Ba2 GS CFR, Outlook Now Negative ---------------------------------------------------------------- Moody's Investors Service has affirmed Hypermarcas S.A.'s Ba2 global scale and A1.br national scale corporate family ratings, as well as the Ba2 ratings of its senior unsecured notes due 2021. The outlook for the ratings was revised to negative from stable. The change in outlook follows Moody's downgrade on February 24, 2016 of Brazil's government bond rating to Ba2 from Baa3 with a negative outlook. Ratings affirmed: Issuer: Hypermarcas S.A. Corporate Family Rating: Ba2/A1.br USD 400 million senior unsecured notes due 2021: Ba2 Outlook actions Revised to negative from stable RATING RATIONALE The change in outlook to negative follows the downgrade of Brazil's sovereign ratings to Ba2 from Baa3, with a negative outlook. Hypermarcas generates 100% of its revenues in the local market and, although it operates in the more resilient pharmaceutical segment, the company is exposed to domestic fundamentals. The Ba2/A1.br ratings are supported by the company's good credit metrics driven by its focus on core business assets, organic growth and deleveraging in the last years. After the announced divestitures of several businesses in the consumer segment and expected reduction of debt, Hypermarcas will have very comfortable leverage and liquidity ratios, despite the more narrow business portfolio and loss in absolute EBITDA (although pharma's margins are higher than those of the consumer portfolio). In addition, the ratings incorporate the good prospects of the pharmaceutical industry in Brazil, supported by the increase in the population's age, greater availability of generic and branded generic drugs, and potential for increased per capita consumption over time. Conversely, the ratings are constrained by Hypermarcas' historically acquisitive profile and by the possible margin pressure from the generics and branded-generics segments as the market matures. Finally, Moody's expects the current macroeconomic deterioration in Brazil to negatively impact even resilient industries such as pharma, despite its high growth longer term prospects. With the recent downgrade of the government of Brazil on the global rating scale and other issuers whose risk profiles are affected by related credit considerations, the distribution of national scale ratings (NSRs) among issuers in Brazil has become compressed. As a result, the current mapping of global scale ratings to national scale ratings may no longer be adequately serving one of its intended purposes, which is to provide greater credit differentiation among issuers in Brazil than is possible on the global rating scale. However, if Moody's NSR methodology is revised as proposed in the Request for Comment (RFC) entitled "Mapping National Scale Ratings from Global Scale Ratings" published on January 20, the resulting new Brazilian scale would likely imply that many Brazil global scale ratings would be remapped to higher ratings on the national scale. While the RFC included a new proposed national scale map for Brazil, given the aforementioned ratings changes, the new map design for Brazil will likely differ from the specific map proposal included in the RFC. In addition to the proposed Brazilian map, the RFC comprised a proposed update to our methodology for mapping national scale ratings from global scale ratings, including guidelines for the design of new national scale maps and changes to existing maps, as well as proposed new national scale maps for each of the other countries in which we currently offer NSRs. The comment period for this RFC closed on February 22. The negative outlook on Hypermarcas' ratings mirrors the negative outlook for Brazil's sovereign ratings. Although unlikely in the short term, an upgrade would depend on an upgrade of Brazil's sovereign rating. Positive pressure on the rating would also require the maintenance of positive free cash flow, consistent organic growth and maintained and/or improved profitability. This will be the case if free cash flow to debt consistently exceeds 10% and if EBIT/Interest Expense is over 3.2 times. Finally, positive rating pressure depends on company deleveraging to below 3.5x Debt/EBITDA (all figures considering Moody`s standard adjustments) and financial and liquidity policies that remain conservative. The ratings could be lowered in the case of a weakening in the company's operating performance, resulting in EBITDA margin consistently below 20% and negative free cash flow generation on few consecutive quarters. Moreover, pressure on the ratings would arise if the company proves unable to sustain leverage below 4.0x or if liquidity deteriorates. Additional negative actions on Brazil's sovereign ratings would also trigger a downgrade of Hypermarcas' ratings. Hypermarcas, founded in 2001 and headquartered in Sao Paulo, Brazil, is currently one of the largest pharmaceutical companies in the country, enjoying leading positions in the domestic OTC, generic and branded generic markets. In 2015, the company reported total revenues of BRL 3.0 billion (approximately USD 900 million considering the average exchange rate for the period) and adjusted EBITDA margin of 33.2%, these figures consider continued operations only. JIVE INVESTMENTS: Out of Lehman's Ashes, Fund Returns 115% a Year ----------------------------------------------------------------- Paula Sambo and Josue Leonel at Bloomberg News report that back in 2014, Jive Investments Holding Ltd. was knocking at the doors of U.S. hedge funds trying to create a partnership to invest in Brazilian distressed assets. "They just weren't interested in coming here," said Guilherme Ferreira, Jive's 37-year-old co-founder, according to Bloomberg News. The market was simply too small. Bloomberg News notes that these days, Jive is the biggest independent buyer of distressed assets in Brazil, and those same funds that passed over the chance to team up are hunting for opportunities, he said. While Mr. Ferreira declined to name the firms, he said the motivation behind their change of heart is obvious: Delinquencies are surging amid Brazil's worst-in-a- century recession, prompting banks to unload non-performing loans for pennies on the dollar, Bloomberg News says. "Brazil as a whole is distressed," Mr. Ferreira said, Bloomberg News discloses. "Things that didn't look like they were in trouble suddenly are. Investments that were once considered investment grade have turned into high yield," he added. Jive, which got its start snapping up bad corporate loans and distressed bonds after Lehman Brothers went bust in 2008, has posted an internal rate of return that tops 115 percent in each of the past five years, Mr. Ferreira said, Bloomberg News notes. Bloomberg couldn't independently confirm that figure. In August, Jive struck the kind of deal it was hunting for all those years ago, raising BRL500 million ($138 million) from Credit Suisse Group AG's private-banking clients, according to statements from both firms, Bloomberg News notes. Distressed asset funds such as Jive acquire credit portfolios at aggressive discounts, usually from large banks, and then earn a profit by collecting on the loans, renegotiating with the borrowers or repackaging the debt and issuing securities, Bloomberg News says. Jive bought Lehman's Brazil portfolio -- whose face value was BRL816 million -- for just BRL27 million in a 2010 court-approved sale, Mr. Ferreira said, Bloomberg News notes. The firm has already collected 16 percent of the principle and is aiming for 30 percent -- or about BRL244 million -- in the next five years, he said, Bloomberg News adds. With most economists agreeing that Brazil isn't any closer to turning a corner on its recession, Jive estimates that banks and others could be sitting on at least BRL400 billion in bad loans, Bloomberg News discloses. In 2014, buyers of that debt closed deals with a face value of BRL15 billion, Mr. Ferreira said. Jive plans to boost its headcount to 85 employees by year-end from 67 now to tackle more distressed debt and expand into private equity. It's also negotiating states' liabilities and looking into the real estate sector, says Bloomberg News. According to the report, Brazil's economy is poised to shrink 3.5 percent in 2016, according to a central bank survey, adding to a 3.8 percent contraction last year. Meanwhile, annual inflation is running above 10 percent and unemployment in Brazil's six biggest metropolitan areas has surged to 7.6 percent from 4.3 percent at the start of last year, data compiled by Bloomberg show. All of that is making it harder for consumers and businesses to pay their bills, Bloomberg News notes. Personal delinquency rates soared to 6.2 percent in January from 5.3 percent a year earlier, the central bank said, Bloomberg News relays. And the number of companies filing for bankruptcy protection in the first two months of the year doubled, according to Serasa Experian, a Sao Paulo- based credit-rating company, says the report. In February, Jive bought a portfolio valued at BRL2.2 billion from Itau Unibanco Holding SA, Latin America's biggest bank by market value, according to three people familiar with the transaction who asked not to be named because they're not authorized to speak publicly on the matter, Bloomberg News recalls. "From one day to the next, Brazil became a huge opportunity for buyers of distressed assets," said Mr. Ferreira, who declined to confirm the Itau portfolio acquisition, Bloomberg News notes. "Banks that never thought about selling loan portfolios are now selling," he added. MINAS GERAIS: Deficit May Widen Beyond Forecast, Moody's Says ------------------------------------------------------------- The Brazilian state of Minas Gerais (Ba3 negative) may struggle to contain its deficit this year as spending remains elevated, while Brazil's recession crimps tax revenues, says Moody's Investors Service. Minas Gerais is projecting a budget deficit for 2016 that is on a par with the shortfall of 13 percent of total revenues that it reported last year. However, that expectation is based on a projected 1.4 percent decline in Brazil's GDP a forecast that Moody's believes is too optimistic. "The state is particularly vulnerable to Brazil's economic downturn due to its reliance on the automotive and steel sectors," said Paco Debonnaire, an Analyst at Moody's. "Minas Gerais is also hampered by persistently high spending, driven mainly by personnel and pension costs." The state has cut spending, raised taxes and won concessions on its federal debt since the start of last year, but the resulting savings haven't been sufficient to materially reduce the deficit. Alternative options, such as restructuring its federal debt will help to a certain extent although its timing remains unclear. Ultimately, the state could cover the shortfall by deferring the payment of some of its expenses to 2017, a move which would undermine the state's recovery prospects. Minas Gerais is also contending with the uncertainty of a legal challenge on its use of private judicial deposits. In 2015, the state registered deposits paid by private legal disputants, pending the outcome of their cases, as revenue representing around 7% of the state's total revenue in that year. This practice is being contested in the courts and could overtime lead to an additional liability, which weighs negatively on the state's credit profile. The state also faces rising debt servicing costs on its foreign debt in case of a further drop in the value of the Brazilian real, according to the report "Minas Gerais squeezed by high costs, falling revenues." The report is available to Moody's subscribers at: https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_1019217 SAMARCO MINERACAO: Moody's Cuts Corporate Family Rating to Caa2 --------------------------------------------------------------- Moody's Investors Service has downgraded to Caa2 from Caa1 the corporate family rating of Samarco Mineracao S.A. ("Samarco") and the ratings of its senior unsecured notes due 2022, 2023 and 2024. The outlook remains negative. Ratings Downgraded: -- Issuer: Samarco Mineracao S.A. Corporate Family Rating: to Caa2 (from Caa1 ) $US1,000 million Senior Unsecured Notes due 2022: to Caa2 (from Caa1) $US700 million Senior Unsecured Notes due 2023: to Caa2 (from Caa1) $US500 million Senior Unsecured Notes due 2024: to Caa2 (from Caa1) -- Outlook is negative for all ratings RATINGS RATIONALE The downgrade to Caa2 reflects mainly the continued uncertainty about Samarco's ability to resume operations and, therefore, our concerns over liquidity pressures, as resources available to meet its financial obligations diminish overtime. In the absence of cash generation, the company's cash position of $US711 million as of June 2015 is tight to meet with its financial obligations as well as capex, costs and operating expenses, including payment of suppliers, wages, and taxes. We estimate that, combined with the BRL 2 billion 2016 portion of the remediation agreement signed with Brazil's government on March 2 (at least 50% of it already disbursed for remediation efforts and penalties), total outflows may reach over BRL 2 billion in the year. On March 2, 2016 Samarco and its shareholders (Vale and BHP Billiton) signed an agreement with key authorities (Federal Government, State Governments of Minas Gerais and Esp¡rito Santo, environmental authorities, the National Department of Mining Production -- DNPM, among others) setting the financial terms that Samarco will need to comply with until 2030 for the environmental, social and economic remediation or recovery of the areas affected by the accident. The agreement sets a total amount of BRL 4.4 billion to be paid from 2016 to 2018, and annual payments between BRL 0.8 to 1.6 billion from 2019 to 2021. Amounts will be defined from 2022 onwards, based on the targets set by the agreement. Although the agreement is a positive development as it sets the amounts that Samarco -- or Vale and BHP, in case Samarco cannot meet these obligations -- will need to pay over the next few years, there is additional risk coming from law suits and claims from parts not involved in the settlement. Besides, Samarco has covenants under part of its outstanding debt, and debt acceleration from a covenant breach remains a risk. Since the accident, Samarco's operations at the mines and beneficiation plants are suspended and the company's final products' (pellets) inventories have been sold. While operations are suspended, the company contemplates alternatives that include the sale of energy and logistics services, but the proceeds may not be sufficient to meet all the aforementioned obligations Samarco will have during 2016. On the other hand, if Samarco is able to resume production in the short term, it will immediately benefit from its fully-integrated operations, which has supported its solid profitability through the years. The negative outlook reflects pressure on the company's rating that will persist until its operational and liquidity risks are resolved. An upward rating movement would require Samarco to resume production, or find alternatives that could avoid a liquidity shortfall, including support from shareholders. Although Samarco's shareholders have indicated their support to the company in the response effort and are committed with the environmental remediation of affected areas, it is highly uncertain whether there could be additional financial support other than helping to meet the obligations set under the agreement signed on March 2, 2016 in case of need. The ratings could suffer additional negative pressure if Samarco is unable to resume operations over the next couple of quarters, if there is material deterioration in the company's liquidity position or if Samarco is unable to meet its financial obligations on a timely basis or fails to renegotiate existing covenants on its debt instruments. The principal methodology used in these ratings was Global Mining Industry published in August 2014. Please see the Ratings Methodologies page on www.moodys.com for a copy of this methodology. Samarco Mineracao S.A. ("Samarco") is one of the largest exporters of seaborne iron ore pellets worldwide with operations located in Esp¡rito Santo and Minas Gerais, in the Southeast region of Brazil. The company has a fully integrated business model with an installed capacity to produce 30.5 million pellets annually. In the last twelve months ended June 2015, Samarco had BRL 7.3 billion ($US2.7 billion) in revenues spread across clients in North America, Middle East, North Africa, Asia and Europe, with a 21% global market share. In the afternoon of November 5, 2015, an accident occurred with two dams next to the industrial operations at the Germano beneficiation units and next to Samarco's iron ore mines, releasing mine tailings, flooding one nearby community and impacting many other communities downstream. Operations at the site are suspended since the accident. USINAS SIDERURGICAS: Capital Increase is Credit Pos., Moody's Says ------------------------------------------------------------------ Moody's Investors Service comments that the proposed capital increase by Usinas Siderurgicas de Minas Gerais S.A. (Caa1 - RuR Down) shareholders, approved by the Board of Directors, is credit positive but does not fully address the company's liquidity issues. USINAS SIDERURGICAS: Fitch Cuts Issuer Default Ratings to 'C' ------------------------------------------------------------- Fitch Ratings has downgraded the foreign and local currency Issuer Default Ratings (IDRs) of Usinas Siderurgicas de Minas Gerais S.A. (Usiminas) to 'C' from 'B-' and the National rating to C(bra)' from 'BBB-(bra)'. In addition, Fitch has removed the IDRs from Rating Watch Negative. Fitch also downgraded Usiminas' senior unsecured notes to 'C/RR4' from 'B-/RR4'. The downgrades reflect an expectation that Usiminas will likely enter into an agreement with its creditors that will allow for sufficient time to receive a capital injection, as per the company's Notice to the Market dated March 11, 2016. The high probability of Usiminas entering into a standstill agreement with its creditors is commensurate with a rating of 'C'. However, Fitch views the BRL1 billion capital increase approved by Usiminas' board of directors to be insufficient for curtailing the company's level of cash flow burn in the long term. The company's capital structure is unsustainable, in our view, and would likely need additional resources to survive a prolonged period of stagnant demand. A debt restructuring would be unavoidable if Usiminas is unable to refinance its bank maturities and complete its capital injection in the near term. KEY RATING DRIVERS Unmanageable Liquidity Position: Usiminas' cash on hand as of Dec. 31, 2015, cannot cover maturities through 2016. Usiminas' plans for an equity injection and refinancing of its bank debt are absolutely necessary in order to manage its financial obligations. Usiminas breached its net debt / EBITDA covenant of 3.5x at year- end 2015 based on its bank debt, which the company was able to negotiate waivers on. Fitch does not believe Usiminas will be able to comply with this covenant requirement over the next two years, resulting in additional waivers required. Unsustainable Leverage: Fitch projects Usiminas' net leverage will increase well above 14x during 2016 despite the company's plan to raise BRL1 billion of equity to offset its high level of cash flow burn. Weakening credit metrics will go unabated unless Usiminas receives additional equity and/or completes asset sales during 2016 and 2017. 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 current market conditions. The company's current credit profile is untenable, as Fitch expects EBITDA generation to remain dismal in 2016 and 2017. Cashflow to Remain Under Pressure: Fitch project Usiminas will generate negative free cash flow (FCF) during the next two years. Declining international steel prices, increased energy prices, high tax and interest rate burdens have all put downward pressure on the company's operating cash flow generation and will persist through 2016. The company's expectations of lower capex requirements and improved working capital management will likely not lead to any material changes in FCF generation over the short term. Progressive Deterioration of Domestic and Worldwide Steel Markets: Flat steel consumption in Brazil was down 18% during 2015 with limited expectations for recovery over the near term. Brazil's industrial sector has unrelentingly decreased its demand for steel with continued weakening in the automotive, household appliances, and civil construction sectors. The global steel market was negatively impacted by Chinese steel producers who increased their exports by approximately 20% to 112 million tons and accounted for over one-third of global exports in 2015. Increased Chinese exports have put significant downward pressure on global steel prices and driven down global installed capacity utilization levels. Brutal Operating Environment: Usiminas reported a 21% decline in domestic steel volumes sold as weaker demand levels were experienced across many of the company's 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 2015, an increase from 17% from the prior year. However, the offset in volumes sold in the domestic market compared to the export market will likely lead to further profitability deterioration due to lower pricing power and increased working capital needs for exports. Unprofitable Iron Ore Business: Usiminas has no ability to generate cashflow 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. KEY ASSUMPTIONS Fitch's base case for the issuer includes these 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 would downgrade Usiminas' ratings to Restricted Default (RD) if the company is unable to meet its financial obligations following the standstill. An upgrade of the ratings for Usiminas could occur following the completion of its standstill with creditors, successful refinancing of its bank debt to beyond 2018, and receipt of its expected equity injection. LIQUIDITY Usiminas' consolidated liquidity position has declined to BRL2 billion as of Dec. 31, 2015, compared to BRL2.9 billion as of Dec. 31, 2014, and Fitch expects further erosion. Usiminas reported BRL319 million of cash and cash equivalents at the holding company level as of Dec. 31, 2015, compared to BRL800 million as of Dec. 31, 2014. The company's cash-to-short-term debt ratio was 1.1x as of Dec. 31, 2015, compared to 1.7x as of Dec. 31, 2014. Usiminas will face refinancing issues for its amortization profile during 2016 and beyond if it does not lengthen its maturity schedule. The company's debt profile consists of BRL1.9 billion of maturities due in 2016 and BRL1.8 billion of maturities due in 2017. FULL LIST OF RATING ACTIONS Fitch has downgraded Usiminas' ratings as: -- Foreign currency Long-term IDR to 'C' from 'B-'; -- Local currency Long-term IDR to 'C' from 'B-'; -- National scale rating to 'C(bra)' from 'BBB-(bra)'; -- US$400 million notes due 2018 to 'C/RR4' from 'B-/RR4'. Fitch has removed the ratings from Rating Watch Negative. ========================== C A Y M A N I S L A N D S ========================== AUBISQUE UK: Shareholder Receives Wind-Up Report ------------------------------------------------ The shareholder of Aubisque UK Investments Limited received on Feb. 26, 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 BELLINGHAM INVESTMENTS: Placed Under Voluntary Wind-Up ------------------------------------------------------ On Jan. 22, 2016, the sole shareholder of Bellingham Investments Fund resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: John S. Sullivan c/o Tim Cone Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 BOR COMPANY: Placed Under Voluntary Wind-Up ------------------------------------------- At an extraordinary general meeting held on Jan. 19, 2016, the sole shareholder of Bor Company Ltd resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman KY1-1107 Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 DANYORI CAPITAL: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Danyori Capital Limited received on Feb. 29, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Summit Management Limited c/o David Egglishaw Suite # 4-210, Governors Square P.O. Box 32311 Grand Cayman KY1-1209 Cayman Islands Telephone: 945 7676 DIARY INVESTMENTS: Members Receive Wind-Up Report ------------------------------------------------- The members of Diary Investments Ltd. received on Feb. 29, 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. P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands Telephone: +1 (345) 949-9808 DUBAI ENVIRONMANTAL: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Dubai Environmantal Services International US Ltd. received on Feb. 29, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Krys Global VL Services Limited KRyS Global, Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 c/o Christopher Smith Telephone: (345) 947 4700 GP MANAGEMENT III: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of GP Management III Ltd received on Feb. 23, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Jan. 22, 2016. The company's liquidator is: E. Andrew Hersant Christopher Humphries Stuarts Walker Hersant Humphries 36A Dr. Roy's Drive, George Town P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949 3344 Facsimile: (345) 949 2888 INTERNATIONAL INVESTMENT: Members Receive Wind-Up Report -------------------------------------------------------- The members of International Investment Management Group received on Feb. 29, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands KEYSTONE LIMITED: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Keystone Limited received on Feb. 23, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Fear c/o Ryan Charles P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7364 Facsimile: (345) 945 3902 MACQUARIE SPECTRUM: Members Receive Wind-Up Report -------------------------------------------------- The members of Macquarie Spectrum Holdings No.1 Limited received on March 11, 2016, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Darren Riley c/o Summit Management Limited Governors Square, Suite # 4-210 23 Lime Tree Bay Avenue P.O. Box 32311 Grand Cayman KY1-1209 Cayman Islands MIDSHIPS CAPITAL: Placed Under Voluntary Wind-Up ------------------------------------------------ On Jan. 22, 2016, the sole shareholder of Midships Capital Fund Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Hilltop Park Associates LLC c/o Justin Savage Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 MIDSHIPS CAPITAL MASTER: Placed Under Voluntary Wind-Up ------------------------------------------------------- On Jan. 22, 2016, the sole shareholder of Midships Capital Master Fund Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Hilltop Park Associates LLC c/o Justin Savage Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 MYOLD INC: Placed Under Voluntary Wind-Up ----------------------------------------- On Jan. 8, 2016, the sole shareholder of Myold Inc resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman KY1-1107 Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 NOVATO CORP: Placed Under Voluntary Wind-Up ------------------------------------------- On Jan. 6, 2016, the sole shareholder of Novato Corp resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman KY1-1107 Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 RBS SPECIAL: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of RBS Special Opportunities General Partner (Cayman) Limited received on Feb. 24, 2016, 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 RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due Today ------------------------------------------------------------ The creditors of Residential Reinsurance 2011 Limited are required to file their proofs of debt today, March 18, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Jan. 19, 2016. The company's liquidators are: James Trundle Kevin Poole 171 Elgin Avenue, Willow House P.O. Box 10233 Grand Cayman Cayman Islands Telephone: 914-2270/ 949-5263 Facsimile: 949-6021 RIPALA INVESTMENT: Members Receive Wind-Up Report ------------------------------------------------- The members of Ripala Investment Ltd. received on Feb. 29, 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. P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands Telephone: +1 (345) 949-9808 SONICA INTERNATIONAL: Placed Under Voluntary Wind-Up ---------------------------------------------------- On Dec. 21, 2015, the sole shareholder of Sonica International Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Sonica Capital LLC c/o Ridhiima Kapoor Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 WOODS FURNITURE: Commences Liquidation Proceedings -------------------------------------------------- On Jan. 15, 2016, the shareholders of Woods Furniture & Design Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by March 1, 2016, will be included in the company's dividend distribution. The company's liquidators are: Russell Smith Derek Larner Telephone: (345) 815 4555 BDO CRI (Cayman) Ltd. Governors Square, Floor 2-Building 3 23 Lime Tree Bay Ave P.O. Box 31229 Grand Cayman, KY1 1205 Cayman Islands YTAM OVERSEAS: Members Receive Wind-Up Report --------------------------------------------- The members of YTAM Overseas Ltd. received on Feb. 29, 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 ============= J A M A I C A ============= JAMAICA: Consumers Face Largest Hike in Gas Prices in Over a Year ----------------------------------------------------------------- RJR News reports that the price of gasoline is to record its biggest increase in just over a year. Petrojam will this week hike the price of gasoline by $3.43 -- the increase takes the price to the highest in two months, according to RJR News. The price of regular diesel increases as well, going up 81 cents while low sulphur diesel increases by $1.58, the report relays. Kerosene will cost $1.68 more. Propane cooking gas goes up 52 cents while butane increases by 37 cents. Meanwhile, the price of oil rose sharply on Wednesday, March 16. Oil for delivery in April rose 6 per cent or $2.12 cents to $38.46 cents a barrel, 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: Foreign Reserves Drop by $4 Million -------------------------------------------- Latin American Herald reports that Mexico's foreign reserves fell by $4 million to $176 billion last week, the Bank of Mexico said. Gold and foreign currency reserves fell in the week ending March 11 due to purchases of dollars by the government from the central bank, the Bank of Mexico said in a statement, according to Latin American Herald. Foreign reserves have fallen by $642 million since the end of 2015, the Bank of Mexico said, notes the report. The M1 money supply, which includes currency, coins and demand deposits, fell by MXN725 million (about $41 million) to nearly MXN1.2 trillion (some $67.23 billion) last week, the central bank said, the report notes. The money supply has contracted by MXN48.23 billion ($2.71 billion) since Jan. 1, the report adds. ====================== P U E R T O R I C O ====================== MORGANS HOTEL: Reports $5.45 Million Net Income for 2015 -------------------------------------------------------- Morgans Hotel Group Co. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net income attributable to common stockholders of $5.45 million on $220 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $66.6 million on $234 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Morgans Hotel had $562 million in total assets, $771 million in total liabilities and a $209 million total deficit. As of Dec. 31, 2015, the Company had approximately $45.9 million in cash and cash equivalents. The Company also had $12.9 million of restricted cash as of Dec. 31, 2015, which consisted primarily of cash held in escrow accounts for debt service or lease payments, capital expenditures, insurance programs, and taxes. "Our ability to pay interest and dividends on, and the outstanding balances of, our debt and our Series A preferred securities, fund our operations, and make anticipated capital expenditures depends upon our future operating performance and our ability to monetize the Hudson and Delano South Beach hotels. Prevailing economic conditions, our ability to consummate the monetization of our owned real estate assets, if at all, and financial, business and other factors, many of which are beyond our control, will affect our ability to make these payments and fund operations." "Currently, we do not intend to invest in new development projects until we ascertain the expected net proceeds we could receive from the sale of the Hudson and Delano South Beach hotels. In addition, we may need to reduce operating expenses or delay certain capital expenditures in the event that operating results are below expectations, further additional restructuring and non- operating costs are incurred, or the closing of the contemplated Hudson and Delano South Beach asset sales or the termination of certain management agreements, and related receipt of termination fees, are delayed." "We believe that based on current and anticipated levels of operations and conditions in our industry and markets, a combination of cash on hand, proceeds from the planned asset sales and internally generated funds will be adequate to fund our current level of operational needs for the next twelve months." A full-text copy of the Form 10-K is available for free at: http://is.gd/b7ec1U About Morgans Hotel Group Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) -- http://www.morganshotelgroup.com/-- is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico. Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York and Palm Springs, California. NORFE GROUP: Schedules $17.3M in Assets, $31.4M in Debt ------------------------------------------------------ Norfe Group Corp. filed with the U.S., Bankruptcy Court for the District of Puerto Rico amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $14,500,000 B. Personal Property $2,769,436 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $6,842,181 E. Creditors Holding Unsecured Priority Claims $2,838 F. Creditors Holding Unsecured Non-priority Claims $24,596,571 ----------- ----------- TOTAL $17,269,436 $31,441,591 The Debtor disclosed total assets of $14.9 million and debt of $25.4 million in the previous iteration of the schedules. A copy of the company's amended schedules is available without charge at http://is.gd/9VcSDO About Norfe Group Norfe Group Corp. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-00285) in Old San Juan, Puerto Rico, on Jan. 20, 2016. The petition was signed by David Efron, president. The Debtor tapped Charles Alfred Cuprill, Esq., at Charles A Cuprill, PSC Law Office, as counsel. VILLAGE DEVELOPMENT: Case Summary & 15 Top Unsecured Creditors -------------------------------------------------------------- Debtor: The Village Development Corporation PO Box 191427 San Juan, PR 00919 1427 Case No.: 16-02021 Chapter 11 Petition Date: March 15, 2016 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: William M Vidal Carvajal, Esq. WILLIAM VIDAL CARVAJAL LAW OFFICES MCS Plaza 255 Ponce De Leon Ave Suite 801 San Juan, PR 00917 Tel: 787-764-6867 - 399-6415 Fax: 787-764-6496 E-mail: william.m.vidal@gmail.com Total Assets: $84,862 Total Liabilities: $1.24 million The petition was signed by Rafael E. Rodriguez Torres, president. A list of the Debtor's 15 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb16-02021.pdf ================================ T R I N I D A D & T O B A G O ================================ ARCELOR MITTAL: TTMA Hits Firm for Closing Operations & Job Cuts ---------------------------------------------------------------- Trinidad and Tobago Newsday reports that the Trinidad and Tobago Manufacturers' Association (TTMA) chided global steel giant, Arcelor Mittal, for firing its local workforce ahead of shutting down operations, and offered to help the 644 employees get new jobs. "It is most unfortunate that a company that has received so much from the government and people of Trinidad and Tobago would treat its people with such an apparent lack of concern," slammed the TTMA, according to Trinidad and Tobago. The Association invited the dismissed workers to explore new jobs in the manufacturing sector, the report notes. "Affected persons seeking employment may also register with the TTMA careers website so that their skills may be searched for by employers who may not have jobs posted but are nonetheless looking for skilled citizens," TTMA said, the report relays. The TTMA also proposed to work with the State to hold a job fair soon for the displaced workers to learn of job opportunities in the manufacturing sector, 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 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 * * *