/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160408.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, April 8, 2016, Vol. 17, No. 69 Headlines A R G E N T I N A BANCO HIPOTECARIO: S&P Affirms 'B-' ICR; Outlook Remains Stable METROGAS SA: S&P Revises Outlook to Pos. & Affirms 'CCC' CCR B A R B A D O S BARBADOS: Most of Barbadians' Debt in Mortgages, Report Shows BARBADOS: On The Way to Being Financial Centre of Choice B R A Z I L DESENBAHIA-AGENCIA: Moody's Assigns Ba2 Rating; Outlook Negative C A Y M A N I S L A N D S ACHIEVEMENT CONCENTRATED: Shareholders Receive Wind-Up Report AD MOVIE: Shareholders Receive Wind-Up Report DQ LTD: Members Receive Wind-Up Report ENERGY RECOVERY: Shareholder to Hear Wind-Up Report on April 22 GOLDEN FUNDING: Shareholder to Hear Wind-Up Report on April 22 GREENWOOD CAPITAL: Members Receive Wind-Up Report HAMBURG FINANCE: Shareholders to Hear Wind-Up Report on April 20 HANDU ESELL: Shareholders Receive Wind-Up Report HAV3 (12): Shareholder to Hear Wind-Up Report on April 22 JKT HOLDINGS: Members to Hear Wind-Up Report on April 18 JSA INTERNATIONAL 4683: Shareholders Receive Wind-Up Report JSA INTERNATIONAL 36879: Shareholders Receive Wind-Up Report SEEED INC: Shareholders to Hear Wind-Up Report on April 20 TARA INVESTMENTS: Shareholder to Hear Wind-Up Report on April 19 WR LTD: Members Receive Wind-Up Report D O M I N I C A N R E P U B L I C DOMINICAN REP: Customs Revenue Jumps 9.6% to US$180.4MM in March M E X I C O MINERA FRISCO: Moody's Cuts CFR to B3/B1.mx; Outlook Stable P U E R T O R I C O ALLIED FINANCIAL: Seeks to Hire Ismael Isern Suarez as Appraiser ALLIED FINANCIAL: Employs Leomarie Pabon as Real Estate Broker DF SERVICING: Schedules $94.7M in Assets, $159.9M in Debt EMPRESAS OMAJEDE: Wins Approval of Reorganization Plan PUERTO RICO: Governor Signs Bill Allowing Halt to Debt Payments T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: To Allow Dollar to Fall to TT$7 to US$1 V E N E Z U E L A VENEZUELA: Eyes U.N. Certification of its Gold, Diamond Reserves - - - - - ================= A R G E N T I N A ================= BANCO HIPOTECARIO: S&P Affirms 'B-' ICR; Outlook Remains Stable --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' local currency and foreign currency issuer credit and debt ratings on Banco Hipotecario S.A. The outlook remains stable. S&P's ratings on Banco Hipotecario reflect its adequate business position, moderate capital and earnings, adequate risk position, and adequate liquidity, which is mitigated by its below-average funding profile. In addition, the local currency rating and the T&C assessment on Argentina continue to limit the local and foreign currency ratings on the bank. S&P rarely rates financial institutions higher than the sovereigns where the former operate because S&P considers it unlikely that these institutions would remain unaffected by developments in domestic economies. The foreign currency ratings on the bank are currently limited by the 'B-' T&C assessment on Argentina. This assessment reflects S&P's view of the likelihood of a sovereign restricting access to foreign exchange if a domestic entity needs to cover its debt service obligations. S&P also revised the bank's stand-alone credit profile (SACP) to 'b' from 'b+' following the revision of S&P's capital and earnings assessment on Banco Hipotecario to moderate from adequate. S&P's bank criteria use its Banking Industry Country Risk Assessment (BICRA) economic and industry risk scores to determine a bank's anchor, the starting point in assigning an issuer credit rating. S&P's anchor SACP for a commercial bank operating only in Argentina is 'b+'. The stable outlook on Banco Hipotecario mirrors the outlook on sovereign's local currency rating, which in turn reflects the newly elected government's market-friendly economic policies. S&P expects the government to implement policies that gradually rein in inflation and reduce its fiscal deficit, slowly strengthening the macroeconomic pillars of the economy. If Argentina cures the default on its foreign currency debt and S&P was to raise the foreign sovereign rating to 'CCC', it would lower the foreign currency rating on the bank to this level. In addition, an ongoing sovereign default on foreign currency debt, along with an unexpected deterioration in economic policy and political stability, could dim investors' confidence, prompting S&P to lower the sovereign local currency rating and consequently downgrade the bank. S&P could raise the ratings on Banco Hipotecario in the next 12-18 months if S&P was to raise the sovereign's local and foreign currency ratings because the bank's SACP is higher than its issuer credit ratings. METROGAS SA: S&P Revises Outlook to Pos. & Affirms 'CCC' CCR ------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Metrogas S.A. to positive from stable. At the same time, S&P affirmed its 'CCC' corporate credit and issue-level ratings on the company. The outlook revision follows Argentina's Department of Energy and Mines' (MINEM) recent request for the natural gas industry regulator (ENARGAS) to revise the rate-setting process within the next 12 months. MINEM also defined terms and conditions for the transition period (12 months) and provided new rate charts until the regulator completes the process. The natural gas rates increased, so Metrogas will have to comply with mandatory investments and service quality targets during the transition period while recovering the higher operating costs due to inflation. S&P believes the new price-setting process could improve the company's ability to recover its fixed and variable operating costs, and capital expenditures, reducing short-term financial pressures. In S&P's view, the proposed plan will increase cash flow predictability, lowering the company's dependence on discretionary monetary support from the government. During the past two years, ENARGAS established new rates for the natural gas paid by all customers, which boosted rates for gas transportation and distribution segments. However, the increases didn't include a pass-through mechanism for major expenses such as gas purchase cost, salary increases, and capital expenditures in the long term. Therefore, although Metrogas' profitability rose, it quickly dropped, resulting in an EBITDA shortfall and negative net worth. S&P believes the extraordinary rate hike and the pending price setting mechanism would improve Metrogas' finances because rates should more closely reflect the effective cost of gas distribution. However, S&P still believes that it would take more than 12 months for the company's operating performance to recover. Moreover, it remains uncertain to what extent the new regulatory framework and its implementation can bolster Metrogas' credit quality and its ability to improve its capital structure in the long term. =============== B A R B A D O S =============== BARBADOS: Most of Barbadians' Debt in Mortgages, Report Shows ------------------------------------------------------------- Caribbean360.com reports that the majority of Barbadians' debt with financial institutions is tied up in mortgages. This is one of the findings of the 2015 Financial Stability Report published by the Central Bank of Barbados and the Financial Services Commission, according to Caribbean360.com. According to the financial stability report, mortgages account for 43 per cent of commercial banks' total credit, 48 per cent in the case of credit unions and 85 per cent for trust and finance houses, Caribbean360.com notes. Moreover, 66 per cent of household debt is attributed to mortgages, especially those for locally based private residential dwellings, Caribbean360.com relays. On the performance of mortgages, the report notes that the increase in the proportion of banks' mortgages in Non-performing loans (NPLs) outpaced the growth of mortgages as a proportion of total loans, Caribbean360.com discloses. "Bank's mortgages in non-performing loans rose substantially from 17 per cent to 42 per cent between 2008 and 2015, while the growth of mortgages as a proportion of total loans rose from 27 per cent to 43 per cent," the report stated, Caribbean360.com says. At end-September 2015, banks' NPL ratio stood at 10.8 per cent, of which just under half (4.5 per cent) related to mortgages, Caribbean360.com notes. More Barbadians have defaulted on their mortgage payments in recent years: the default rate in the mortgage portfolio moved from 0.5 per cent in 2008 to around 4.5 per cent at September 2014, Caribbean360.com relays. The report noted, however, that many of the NPLs included in this figure are older loans that banks have already written off, Caribbean360.com reports. Their retention in the NPL ratio reflects the slow pace at a legal resolution to these defaults, Caribbean360.com says. However, while the impact of non-performing mortgages remains higher than desired, the elevated levels do not directly threaten the financial stability of the commercial banks, notes the report. This assertion is supported by stress tests which affirmed that banks are adequately capitalized, Caribbean360.com discloses. As reported in the Troubled Company Reporter-Latin America on April 5, 2016, Moody's Investors Service downgraded Barbados' government bond rating and issuer rating to Caa1 and changed the outlook to stable. BARBADOS: On The Way to Being Financial Centre of Choice -------------------------------------------------------- Caribbean360.com reports that Barbados' vision of becoming the international financial wealth management center of choice in the western hemisphere is closer to reality. That's the view of International Business Minister Donville Inniss, as the Barbados Stock Exchange (BSE) launched the International Securities Market (ISM), according to Caribbean360.com. Mr. Inniss said the move was in sync with his ministry's goals for the development of the country's international business and financial services sector, the report notes. An ISM is a market for the listing and trading of securities of issuers, which might or might not be incorporated in Barbados, that would otherwise be listed and traded on other exchanges around the world, the report relays. While commending the CEO and General Manager of the Stock Exchange, Marlon Yarde, and his team for piloting the initiative, Mr. Inniss made it clear that the work was not fully completed, the report relays. "As these products are activated here, they have the immediate impact of placing Barbados on the same or, rather, equal footing as many of our competitor jurisdictions such as the Bermuda Stock Exchange, and the Cayman Stock Exchange. We must therefore be aware that flexibility is a crucial component in the formulation of a successful matrix of products, the provision of services and legislation," the minister contended, the report discloses. The minister said it was anticipated that participants in the ISM, likely to be international offshore banks and international business companies, would continue to be subjected to prudential regulation by the Central Bank of Barbados, the report relays. "They would also continue to be regulated by the Financial Services Commission for takeovers, insider trading and market manipulation. This would enable the BSE to ensure a strong regulatory focus for the ISM which is absent in many less regulated offshore international centers," Minister Inniss explained, the report adds. As reported in the Troubled Company Reporter-Latin America on April 5, 2016, Moody's Investors Service downgraded Barbados' government bond rating and issuer rating to Caa1 and changed the outlook to stable. =========== B R A Z I L =========== DESENBAHIA-AGENCIA: Moody's Assigns Ba2 Rating; Outlook Negative ---------------------------------------------------------------- Moody's America Latina assigned global scale long and short-term local currency issuer ratings of Ba2 and Not Prime, and Brazilian national scale issuer ratings of Aa2.br and BR-1, for long and short-term respectively, to Desenbahia-Agencia de Fomento do Estado da Bahia S.A. (Desenbahia), owned by the state of Bahia (Ba2 negative). At the same time, Moody's assigned the entity a baseline credit assessment (BCA) of ba3. The outlook on the global scale issue rating is negative, in line with the negative outlook assigned to its controlling shareholder's rating. This is the first time Moody's assigns ratings to Desenbahia. These assessment and ratings were assigned to Desenbahia -- Agencia de Fomento do Estado da Bahia S.A.: Baseline credit assessment of ba3 Long-term local currency issuer rating of Ba2, negative outlook Short-term local currency issuer rating of Not Prime Long-term Brazilian national scale issuer rating of Aa2.br Short-term Brazilian national scale issuer rating of BR-1 RATINGS RATIONALE The Ba2 issuer rating incorporates Desenbahia's ownership by the state government of Bahia (Ba2 negative), as well as its policy role as the development agency for the state government, engaged in providing long-term financing to municipalities and to small and micro enterprises. Moody's noted that in accordance with its rating methodology for government related issuers (GRI), the ratings for Desenbahia reflect the combination of two inputs: (1) the agency's intrinsic financial profile, which is reflected in a baseline credit assessment (BCA) of ba3; and 2) the incorporation of the probability of a high support and very high dependence from its shareholder. Moody's support e assessment takes into account the agency's role as a financial arm of the government with full strategic alignment to the state's social and economic development initiatives. It also incorporates the consistent dividend reinvestment policy and conservative capital levels maintained by shareholders, indicative of the state government's commitment and willingness to support the agency's operations, while enhancing its financial flexibility. For that reason, Desenbahia's Ba2 issuer rating benefits from a one-notch uplift from its standalone ba3 assessment. In assigning an unsupported baseline credit assessment of ba3, Moody's notes that Desenbahia is a small regional franchise with limited business diversification and relative concentrated loan portfolio by borrower and by sector . While the asset quality indicators have historically remained better than the average presented by its peer development agencies, there are indications of deterioration over the past 12 months in the form of an increase in loan renegotiations and rising credit costs. About 34% of its loan book relate to agribusiness, an important economic segment for the state of Bahia. Desenbahia also lends to municipalities, which made roughly 16% of total loans in 2015, a portfolio that is predominantly guaranteed by tax transfers from the state government, and therefore, carry limited credit risk, as reflected in the agency's asset quality. The largely secured nature of the loan book also compensate the risks of relative loan concentration to a single class of borrowers or to specific segments. Future plans to enter private-public participation deals with large corporations investing in the state, such as in the energy sector, a strategy aligned to its policy role, could increase concentration risk. The ba3 BCA also reflects rapid loan growth pace in 2015, despite the rising risk conditions in Brazil, which, however, is supported by a robust capitalization of 52.75% as of December 2015, an important buffer against credit losses. While Desenbahia's high profitability in 2015 was boosted by non-recurring gains from the sale of its former headquarters, we note that the company's recurring earnings generation will remain pressured by higher credit costs on the back of the negative macro trends. The agency's plans to tap international credit facilities from multilateral banks is a positive diversification of its funding sources, however, these high cost resources may further strain its future profitability. By the same token, in its role as a policy entity, Desenbahia may be exposed to political interference from the local government in its asset allocation decisions, and despite its track record of good governance practices. Moody's views these challenges as constraining factors to the ratings. WHAT COULD MAKE THE RATING GO UP At this juncture, there is no upward rating pressure on Desenbahia's standalone ratings, particularly given Brazil's challenging operating environment. WHAT COULD MAKE THE RATING GO DOWN A weakening of entity's financial fundamentals, particularly resulting from a significant deterioration in the quality of the loan book, would have negative effect on the BCA. A downgrade of its shareholder's rating would also affect Desenbahia's supported issuer rating of Ba2. USED METHODOLOGIES The principal methodology used in rating Desenbahia was Government-Related Issuers published in October 2014. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. Desenbahia -- Agencia de Fomento do Estado da Bahia S.A. is headquartered in Salvador, Bahia and had total assets of BRL1,124 million ($284.1 million) and total equity of BRL570 million ($144.1 million) as of Dec. 31, 2015. ========================== C A Y M A N I S L A N D S ========================== ACHIEVEMENT CONCENTRATED: Shareholders Receive Wind-Up Report ------------------------------------------------------------- The shareholders of Achievement Concentrated Master Fund Ltd. received on April 7, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Achievement Asset Management LLC c/o Donna MacDonald 141 West Jackson Boulevard, Suite 800 Chicago, IL 60604 United States of America Telephone: +1 (312) 444 8707 e-mail: dmacdonald@achievem.com AD MOVIE: Shareholders Receive Wind-Up Report --------------------------------------------- The shareholders of Ad Movie Inc. received on April 6, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Maricorp Services Ltd. c/o Roger L. Nelson P.O. Box 2075, Grand Cayman, KY1-1105 Cayman Islands Telephone: 345-949-9710 DQ LTD: Members Receive Wind-Up Report -------------------------------------- The members of DQ Ltd. received on April 7, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Simon Conway c/o Kadie Prospere P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8745 Facsimile: (345) 945 4237 ENERGY RECOVERY: Shareholder to Hear Wind-Up Report on April 22 --------------------------------------------------------------- The shareholder of Energy Recovery (Cayman) Ltd. will hear on April 22, 2016, at 9:00 a.m., 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 Telephone: (345) 943-3100 GOLDEN FUNDING: Shareholder to Hear Wind-Up Report on April 22 -------------------------------------------------------------- The shareholder of Golden Funding Company will hear on April 22, 2016, at 9:30 a.m., 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 GREENWOOD CAPITAL: Members Receive Wind-Up Report ------------------------------------------------- The members of Greenwood Capital, Inc. received on April 5, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Camele Burke Duff & Phelps (Cayman) Limited The Harbour Centre 42 North Church Street P.O. Box 10387 Grand Cayman KY1-1004 Cayman Islands Telephone: (345) 623 9904 Facsimile: (345) 943 9900 HAMBURG FINANCE: Shareholders to Hear Wind-Up Report on April 20 ---------------------------------------------------------------- The shareholders of Hamburg Finance Company A.G. will hear on April 20, 2016, at 3:00 p.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gladys Patino Pineapple Grove #5 Lyford Cay P.O. BOX SP 64284 Nassau, Bahamas Telephone: (305) 372-0404 HANDU ESELL: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Handu Esell Holdings Limited received on April 6, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Maricorp Services Ltd. c/o Roger L. Nelson P.O. Box 2075, Grand Cayman, KY1-1105 Cayman Islands Telephone: 345-949-9710 HAV3 (12): Shareholder to Hear Wind-Up Report on April 22 --------------------------------------------------------- The shareholder of HAV3 (12) Limited will hear on April 22, 2016, at 9:15 a.m., 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 JKT HOLDINGS: Members to Hear Wind-Up Report on April 18 -------------------------------------------------------- The members of JKT Holdings will hold their final meeting on April 18, 2016, to receive 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 JSA INTERNATIONAL 4683: Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of JSA International Aircraft 4683, Ltd. received on April 7, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 JSA INTERNATIONAL 36879: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of JSA International Aircraft 36879, Ltd. received on April 7, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 SEEED INC: Shareholders to Hear Wind-Up Report on April 20 ---------------------------------------------------------- The shareholders of Seeed Inc. will hear on April 20, 2016, at 9:00-10:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Hao Pan 136 Ningxia Street Qingyang District Chengdu City Sichuan Province PRC TARA INVESTMENTS: Shareholder to Hear Wind-Up Report on April 19 ---------------------------------------------------------------- The shareholder of Tara Investments Ltd will hear on April 19, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 WR LTD: Members Receive Wind-Up Report -------------------------------------- The members of WR Ltd. received on April 7, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Simon Conway c/o Kadie Prospere P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8745 Facsimile: (345) 945 4237 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: Customs Revenue Jumps 9.6% to US$180.4MM in March ---------------------------------------------------------------- Dominican Today reports that Dominican Republic Customs Agency said March revenue jumped 9.6% to RD$8.3 billion (US$180.4 million), or RD$729.3 million more than the same month last year. It said the figure is also 100.8% of the revenue estimated in the National Budget of RD$ 8.2 billion, or RD$63.5 million higher, according to Dominican Today. "Until March 31, revenues totaled RD$22.15 billion, an increase of 9.0%, equivalent to an additional RD$1.8 billion, compared with the same period in 2015," Customs said in a statement obtained by Dominican Today. The total collected during the January-March 2016 period (RD$22.15 billion) correspond to 98.43% of the amount estimated in the General Budget Law, which was RD$ 22.5 billion," the report notes. Goal Customs added that its 2016 revenue goal is RD$103.1 billion, a 7.8% jump compared with the RD$95.6 billion collected in 2015, the report adds. As reported in the Troubled Company Reporter-Latin America on Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B+'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The issue ratings on the Dominican Republic's senior unsecured foreign and local currency bonds are affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the short-term foreign currency IDR at 'B'. =========== M E X I C O =========== MINERA FRISCO: Moody's Cuts CFR to B3/B1.mx; Outlook Stable ----------------------------------------------------------- Moody's de Mexico downgraded to B3/B1.mx from B2/Ba1.mx the ratings of Minera Frisco. S.A.B. C.V. (Minera Frisco). The rating outlook is stable. These actions reflect Moody's perception of increased credit risk for the mining sector, and also an effort to align ratings with the fundamental shift in the credit conditions of the global mining sector. These rating actions conclude the review initiated on January 21, 2016. The rating actions on Minera Frisco incorporate a deep deterioration in credit conditions for the global mining industry, with sharp price declines over the past year. Moody's believes that this downturn will be deeper and longer, and represent an unprecedented shift for the mining industry. China's slowing economic growth brings additional market imbalances and requires further adjustments in the industry, including in supply levels. In addition, the strong US dollar is a further factor contributing to weakening demand and driving prices lower since most metals are traded in dollars. Deteriorating industry fundamentals require a recalibration of the global mining portfolio rated by Moody's. Downgrades: -- Issuer: Minera Frisco, S.A.B. De C.V. -- Corporate Family Rating, Downgraded to B3/B1.mx from B2/Ba1.mx -- Long -Term Senior Unsecured Medium-Term Note Program, Downgraded to (P) Caa1/Caa1.mx from (P)B3/B1.mx -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1/Caa1.mx from B3/B1.mx Affirmations: -- Short-Term Senior Unsecured Medium-Term Note Program, Affirmed at MX-4 Outlook Actions: -- Issuer: Minera Frisco, S.A.B. De C.V. -- Outlook, Changed To Stable In addition, Moody's is correcting its database to reflect that the Senior Unsecured Short-Term portion of its Local dual Program of Minera Frisco, rated MX-4, was not placed on Review for Downgrade as noted in the January 21, 2016 press release. RATINGS RATIONALE "The downgrade of Minera Frisco's ratings reflects the pressure in the company's credit metrics from deteriorating market conditions, and the low likelihood that cash flows and credit metrics will improve meaningfully over the next 12 to 18 months. Despite our expectations of operational improvement during this period, financial results will continue to be affected by lower metals price, reducing the company's cash generation ability. Additionally, Minera Frisco's refinancing risk continues despite its recent efforts to de-lever and to improve its capital structure. Minera Frisco's B3/B1.mx corporate family ratings continue to reflect its good mine diversification and expected further metal diversification by 2017 once Tayahua mine doubles its copper production." As of December 2015, the bulk of Minera Frisco's MXN 23.9 billion outstanding debt was a syndicated facility with step up amortizations, including $US 80 million (around MXN 1.4 billion) in 2016 and $US 200 million (MXN 3.4 billion) in 2017. Such maturities compare with a modest cash balance position of MXN 117 million. Although Minera Frisco was able to reduce debt by MXN 3 billion in 2015 and generate free cash flow of MXN 1.2 billion, cash generation in 2016 will be pressured by capital expenditures of around $US 130 million (MXN 2.3 billion) related with an expansionary copper project. Under the current environment, Moody's considers it is uncertain whether the company will be able to cover its upcoming debt commitments with internal cash generation. Further pressuring liquidity is Minera Frisco's limited alternative sources of liquidity as it does not have committed credit lines. Minera Frisco's volume should gradually recover going forward. In 2015, gold and copper volume drop by 3% and 19%, respectively. Production was affected by intense rainfalls during the second half of 2015. Since then, output capacity has been resumed, being fully recovered in the first quarter of 2016. Also affecting production in 2015 were some mines with declining reserves in the Mar°a mine, lower grade and recovery of ore. The company continues to focus in increasing the ore recovery, looking to achieve a higher efficiency in the metallurgical recovery processes. It has also identified new objectives to restart operations in 2016 in the Mar°a mine. These measures should gradually result in higher volume, further supported by the start of the expansionary copper project by the end of 2016. Despite these improvements, credit metrics will not recover over the next 12 to 18 months due to the weak metal prices environment. For 2016, Moody's applies base price sensitivities for gold, silver and copper prices at $1,100/oz, $15/oz, and $2.15/lb, respectively. For the following years Minera Frisco's strategy of hedging most of its production should result in a slightly more resilient performance. "The (P)Caa1/Caa1.mx rating on Minera Frisco's senior unsecured debt dual program of local notes reflects its structural subordination to the company's existing guaranteed debt. The syndicated facility is guaranteed by operating subsidiaries. Considering capital structure as of December 31, 2015 around 80% of total debt is guaranteed. Although this portion could drop if the company issues debt under the rated local program, we consider that structural subordination will still be material." "The stable outlook reflects our expectation that the company will maintain stable credit metrics over the next twelve to eighteen months despite the weak operating environment due to measures taken to improve production and efficiency." An upgrade would require improvements in liquidity and credit metrics. Quantitatively, an upgrade would require leverage below 4.5 times and EBIT/interest expense above 2.0 times on a sustained basis, both as adjusted by Moody's. The ratings could be downgraded if Minera Frisco experiences any significant operational difficulties, substantial increase in operating costs, or further deterioration in liquidity position. A downgrade would also be considered should debt/ EBITDA increase to above 5.5x as adjusted by Moody's on a sustained basis and if the company's liquidity continues to deteriorate if it is not able to roll over debt maturities. Minera Frisco is dedicated to the exploration and exploitation of mining lots for the production and sale of mainly gold and silver dore bars, as well as copper cathode and copper concentrate, lead- silver and zinc concentrates. The company operated through nine mining units in Mexico: El Coronel, San Felipe, El porvenir, Concheno, Mar°a, Ocampo, Tayahua, Asientos, and San Francisco del Oro. Additionally, it has two developing projects. For the last twelve months ended in December 31, 2015, the company generated about MXN 13,611 in revenues. ====================== P U E R T O R I C O ====================== ALLIED FINANCIAL: Seeks to Hire Ismael Isern Suarez as Appraiser ---------------------------------------------------------------- Allied Financial, Inc., sought and obtained authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Ismael Isern Suarez from I.S. Appraiser Group, PSC, as appraiser. The Debtor says it seeks to employ Ismael Isern Suarez in order to emit an opinion related to the market value of each of the Debtor's real estate properties. The Appraiser's compensation for the work to be done will be as follows: (a) Non Residential Properties: * $800 for new appraisal; and * $200 for each additional property in the same project; (b) Update of a Non Residential Property: * 50% of the Original Report fee for the first year; and * 75% of the Original Report fee after the year; and (c) Residential Properties single unit: * $400 for each new appraisal; * $300 for an update of existing appraisal during the first year and $400 after the year; and * $100 each additional unit in the same lot. The Appraiser will submit the original appraisal and one copy in or within 30 calendar days after the inspection and the submittal of all the necessary information. The total amount to be paid by the Debtor is generated from the operation of its business. Approval by the Court of this application will constitute approval of the flat fee amount for the preparation of the appraisal and the described payment terms. Ismael Isern Suarez assures the Court that he is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. About Allied Financial Allied Financial, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D. Puerto Rico Case No. 16-00180) on Jan. 15, 2016. The petition was signed by Rafael Portela as president of the Board of Directors. The Debtor disclosed total assets of $10.28 million and total debts of $9.14 million. C. Conde & Assoc. represents the Debtor as counsel. Mildred Caban Flores has been assigned the case. ALLIED FINANCIAL: Employs Leomarie Pabon as Real Estate Broker -------------------------------------------------------------- Allied Financial, Inc., seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Leomarie Pabon, doing business as L Pabon Realty, as real estate broker to act as exclusive sales agent of the Debtor's property located at 309 Carmen Street, Urb. Cumbres de Mirandero, in Mayaguez, Puerto Rico. Leomarie Pabon, doing business as L Pabon Realty will receive a commission fee of 5% of the sale amount payable upon the execution of the corresponding deed of sale. Approval by the Court of this application will constitute approval of the commission fee amount and the payment terms. According to the pending closing statement attached to the application, the Property is proposed to be sold to David Velazquez and Malky Rivera for $175,000, less debits to the Debtor/Seller for a net proceed of $161,814. Leomarie Pabon assures the Court that she is a disinterested person and her employment is in the best interest of the estate. About Allied Financial Allied Financial, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D. Puerto Rico Case No. 16-00180) on Jan. 15, 2016. The petition was signed by Rafael Portela as president of the Board of Directors. The Debtor disclosed total assets of $10.28 million and total debts of $9.14 million. C. Conde & Assoc. represents the Debtor as counsel. Mildred Caban Flores has been assigned the case. DF SERVICING: Schedules $94.7M in Assets, $159.9M in Debt --------------------------------------------------------- DF Servicing, LLC disclosed $94,661,858 in assets and $159,898,325 in liabilities in its amended schedules of assets and liabilities: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $2,160,000 B. Personal Property $92,501,858 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $99,948,964 E. Creditors Holding Unsecured Priority Claims $798 F. Creditors Holding Unsecured Non-priority Claims $59,948,561 -------------- -------------- TOTAL $94,661,858 $159,898,325 A copy of the company's schedules is available without charge at http://is.gd/BhoWuO 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, CPA Luis R. Carrasquillo & Co, P.S.C. as financial consultant, AFS CPA Group, LLC, serves as auditor, and Salichs Pou & Associates, PSC, as special counsel. EMPRESAS OMAJEDE: Wins Approval of Reorganization Plan ------------------------------------------------------ Empresas Omajede, Inc., in mid-March 2016 won an order confirming its Plan of Reorganization dated Nov. 20, 2015. The Economic Development Bank for Puerto Rico's secured claim of $114,000 and Banco Popular de Puerto Rico's $2.50 million claim are unimpaired. Unsecured creditors are impaired -- they will be paid 100% of their claims, as fully determined and allowed by the Court, without interest, in deferred equal consecutive monthly installments commencing in June of 2016 and continuing on the 30th day of the following 55 months, with a balloon payment in the 57th month for the balance owed. Equity holders will retain their shares. A copy of the Amended Plan is available for free at: http://bankrupt.com/misc/American_Eagle_516_DS.pdf A copy of the Summary of Claims and Plan Payments filed together with the Plan is available for free at: http://bankrupt.com/misc/Empresas_O_331_Claims_Payment.pdf About Empresas Omajede Empresas Omajede, Inc., is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B) with principal assets located at La Ectronica Building, 1608 Bori St., in San Juan, Puerto Rico. Empresas Omajede filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-10113) in Old San Juan, Puerto Rico, on Dec. 21, 2012. The Debtor tapped G.A. Carlo-Altieri & Associates as counsel and Nelson E. Galarza as financial advisor. The Debtor disclosed $16,718,614 in assets and $4,935,883 in liabilities in its schedules. PUERTO RICO: Governor Signs Bill Allowing Halt to Debt Payments --------------------------------------------------------------- Mary Williams Walsh, writing for The New York Times' DealBook, reported that Gov. Alejandro Garcia Padilla of Puerto Rico has signed a bill that would allow him to declare a state of emergency and give him authority to halt payments on the island's crushing $72 billion debt. According to the report, the measures capped two days and nights of marathon debate in Puerto Rico's legislature, where lawmakers from the main opposition party called any unilateral debt moratorium dangerous and members of the governor's party insisted that doing nothing would be even worse. The report related that in Washington, House Republicans seeking to rescue Puerto Rico prepared to release a revised plan that includes a federal oversight panel. The proposal has been contentious on the island, where the governor and his top advisers are increasingly at odds with investors over how to restructure the debt, most of it in the form of municipal bonds, the report said. "This legislation provides us with the tools to address the highest priority of needs -- providing essential services to our people -- without fear of retribution," the DealBook cited the governor as saying. He accused Puerto Rico's creditors of hampering federal assistance by "misinforming the public and dissuading Congress from doing what is right for our 3.5 million American citizens," the report further related. As reported in the Troubled Company Reporter-Latin America on Dec. 28, 2015, Moody's Investors Service has downgraded $1.09 billion of Puerto Rico appropriation bonds issued by the Public Finance Corporation (PFC) to C from Ca, while maintaining other ratings assigned to the US territory's debt. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: To Allow Dollar to Fall to TT$7 to US$1 ------------------------------------------------------------ Trinidad and Tobago Express reports that Trinidad and Tobago will allow its dollar to fall to TT$7 to US$1 by the end of 2016, and to $7.50 to US$1 by the end of 2017, Scotiabank analysts in Canada have forecast in the bank's March executive briefing released in Canada and Port of Spain. "After maintaining the (TT dollar's) quasi-fixed exchange rate of 6.3-6.4 per US dollar (USD) for several years, the Central Bank of Trinidad and Tobago (CBTT) is open to greater currency flexibility," a team of Scotiabank analysts led by Pablo Breard said in the briefing, according to Trinidad and Tobago Express. "Indeed, foreign exchange reserves have declined by over 15 per cent since the end of 2014 to US$9.5 billion in February 2016 as policymakers have fought to defend the peg amidst the sharp downturn in global energy prices and USD strength on the back of a bias towards monetary tightening by the Fed," Mr. Breard added. As reported in the Troubled Company Reporter-Latin America on March 2, 2016, citing Trinidad Express, Prime Minister Dr. Keith Rowley said that Trinidad and Tobago is "certainly not bankrupt" but we do have "cash flow" problems. ================= V E N E Z U E L A ================= VENEZUELA: Eyes U.N. Certification of its Gold, Diamond Reserves ---------------------------------------------------------------- EFE News reports that Venezuela is looking to obtain U.N. certification of its reserves of diamonds, gold and other precious stones and minerals this year, a necessary step to ensure a "corresponding fair price," the Central Bank said. "This year, I hope in the first half of the year, we'll get the Kimberley certification; it's extremely important for the country to be certified by this global organization," Nelson Merentes, the bank's governor, said, according to EFE News. Members of the Kimberley Process Certification Scheme, or KPCS, which was set up by the United Nations to ensure that diamond purchases are not financing violence by rebel movements seeking to undermine legitimate governments, will arrive in Venezuela, Merentes said in a government event televised by state-run VTV, the report notes. Venezuela's deputy mining minister, Richard Lozada, said on Feb. 23 that the KPCS would certify that the South American country had diamond "reserves amounting to 33 million carats, but also a potential wealth" of up to 3 billion carats, the report relays. President Nicolas Maduro is promoting the so-called "Orinoco Mining Arc," an approximately 111,000-sq.-kilometer (42,850-sq.- mile) region of east-central Venezuela, south of the Orinoco River, that is rich in gold, coltan, diamonds, iron ore, bauxite and other minerals, the report discloses. In addition to the region's diamond potential, Venezuela estimates the mining arc also contains 14 billion tons of iron ore and 2 billion tons of bauxite, as well as potential coltan reserves valued at more than $100 billion, the report says. Venezuela's certified gold reserves amount to 4,000 tons, according to Lozada, who said "7,000 tons, equivalent to much more than $200 billion, could be incorporated," reports EFE. As reported in the Troubled Company Reporter-Latin America on March 8, 2016, 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. *********** 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 * * *