/raid1/www/Hosts/bankrupt/TCRLA_Public/160601.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
Wednesday, June 1, 2016, Vol. 17, No. 107
Headlines
A R G E N T I N A
CABLEVISION SA: Moody's Assigns B3 Rating to USD500MM New Notes
CABLEVISION SA: Moody's Affirms B3 Corporate Family Rating
CMA ARGENTINA: Moody's Affirms B-bf Global Scale Bond Fund Rating
CORDOBA: Moody's Assigns B3 Rating to USD700MM Sr. Notes Issuance
RIO NEGRO: Moody's Assigns 'B3' First Time Issuer Rating
B E L I Z E
BELIZE: IMF Says Economy is Slowing, Vulnerabilities are Rising
B R A Z I L
BRAZIL: Regain Investors' Confidence to Recover, Minister Says
RIO DE JANEIRO: S&P Lowers ICR to 'B-' & Puts on CreditWatch Neg.
C A Y M A N I S L A N D S
BEI KAI: Commences Liquidation Proceedings
BROOKFIELD INTERNATIONAL: Placed Under Voluntary Wind-Up
ELAH CAPITAL: Creditors' Proofs of Debt Due June 13
HATHAWAY TRADING: Creditors' Proofs of Debt Due June 23
JAPAN TK: Creditors' Proofs of Debt Due June 19
MAPLE PROPERTIES: Creditors' Proofs of Debt Due June 12
OCP CLO 2012-1: Creditors' Proofs of Debt Due June 15
STRUCTURED INVESTMENTS: Creditors' Proofs of Debt Due June 23
TSINGDA EEDU: Creditors' Proofs of Debt Due June 2
ULYSSE MANAGEMENT: Placed Under Voluntary Wind-Up
G U Y A N A
GUYANA: IMF to Help Country in Move to Reduce VAT
M E X I C O
ARENDAL S DE RL: Defaults on $100MM Bond After Pemex Defers Plans
P A N A M A
PANAMA: At Least 5 Weeks to Repair Damage to Canal Locks
P U E R T O R I C O
EYL INVESTMENT: Wants Exclusive Plan Filing Extended by 60 Days
V E N E Z U E L A
VENEZUELA: LATAM Airlines Drops Venezuela Route
VENEZUELA: Trade Talks Continue With Trinidad and Tobago
- - - - -
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A R G E N T I N A
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CABLEVISION SA: Moody's Assigns B3 Rating to USD500MM New Notes
---------------------------------------------------------------
Moody's Latin America has assigned a B3 Global Scale rating and
Baa1.ar national scale rating to Cablevision S.A.'s USD500 million
new notes. The outlook is stable.
Proceeds will be used to refinance existing debt and for corporate
purposes.
RATINGS RATIONALE
"The B3 and Baa1.ar ratings are principally supported by
Cablevision's position as the major player in the local media
industry, with the largest base of subscribers and an a dominant
market position in the Pay TV industry as well as broadband
services" said Moody's VP-Senior Analyst Veronica Amendola. The
ratings also reflect Cablevision's strong credit metrics for its
rating category, adequate financial position and the company's
advantage, derived from having presence in the most populated and
profitable areas of the country.
The B3/Baa1.ar ratings are mainly constrained by Cablevision's
high competition coming from both main businesses, the cable and
internet industry, and the highly changing environment and
regulatory risk and political interference in the local media
industry. Finally, the ratings reflect Cablevision's currency
mismatch with most of its debt denominated in foreign currency,
while its cash flows are entirely generated in local currency.
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. For further
information on Moody's approach to national scale credit ratings,
please refer to Moody's Credit rating Methodology published in May
2016 entitled "Mapping National Scale Ratings from Global Scale
Ratings". While NSRs have no inherent absolute meaning in terms
of default risk or expected loss, a historical probability of
default consistent with a given NSR can be inferred from the GSR
to which it maps back at that particular point in time. For
information on the historical default rates associated with
different global scale rating categories over different investment
horizons, please see:
https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_
189530
The stable outlook reflects Moody's expectation that Cablevision
will be able to increase revenues and earnings over the near term
based on its efficiency program and commercial initiatives. The
rating outlook also reflects Moody's expectation that Cablevision
will continue to successfully implement its business model, thus
allowing the company to preserve adequate access to external
financing sources to meet its short-term debt obligations while
maintaining adequate levels of cash generation in relation to
debt.
Ratings and/or outlook could experience upward pressure if
Argentina's sovereign rating were to be upgraded. In addition, an
upgrade of the ratings could result from a continued strengthening
of Cablevision's revenues during 2016-17 while improving its
operating margins and profitability. Additionally, a more
predictable outlook for economic activity in Argentina would be
important for a ratings upgrade.
A downgrade of the sovereign would likely result in negative
rating actions for Cablevision in order to maintain the issuers'
current notching gap relative to the sovereign in the absence of
any significant change in their underlying credit quality.
Indications of a weakening market position in the domestic cable
market could also place pressure on the ratings, especially if
Cablevision is unable to remain among the leader cable and
internet players.
Headquartered in Buenos Aires, Argentina, Cablevision is a leading
provider of Pay TV and Internet Services in Latin America based on
the amount of subscriptions. Mainly focused on the City of Buenos
Aires, cities in Greater Buenos Aires, 12 provinces, and Uruguay,
Cablevision is dedicated to the installation, operation and
broadcasting of data transmission through cable and video.
Showing an ongoing expansion, the company reports total revenues
of USD 2.1 billion for the twelve month period ended on March 31,
2016.
CABLEVISION SA: Moody's Affirms B3 Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has assigned a B3 Global Scale rating to
Cablevision S.A.'s USD500 million new notes. At the same time
Moody's affirmed Cablevision's Corporate Family Rating and Senior
Unsecured rating of B3 on its Global Scale. The outlook is
stable.
Proceeds will be used to refinance existing debt and for corporate
purposes.
RATINGS RATIONALE
"The B3 rating is principally supported by Cablevision's position
as the major player in the local media industry, with the largest
base of subscribers and a dominant market position in the Pay TV
industry as well as broadband services" said Moody's VP-Senior
Analyst Veronica Amendola. The ratings also reflect Cablevision's
strong credit metrics for its rating category, adequate financial
position and the company's advantage, derived from having presence
in the most populated and profitable areas of the country.
The B3 rating is mainly constrained by Cablevision's high
competition coming from both main businesses, the cable and
internet industry, and the highly changing environment and
regulatory risk and political interference in the local media
industry. Finally, the ratings reflect Cablevision's currency
mismatch with most of its debt denominated in foreign currency,
while its cash flows are entirely generated in local currency.
The stable outlook reflects Moody's expectation that Cablevision
will be able to increase revenues and earnings over the near term
based on its efficiency program and commercial initiatives. The
rating outlook also reflects Moody's expectation that Cablevision
will continue to successfully implement its business model, thus
allowing the company to preserve adequate access to external
financing sources to meet its short-term debt obligations while
maintaining adequate levels of cash generation in relation to
debt.
Ratings and/or outlook could experience upward pressure if
Argentina's sovereign rating were to be upgraded. In addition, an
upgrade of the ratings could result from a continued strengthening
of Cablevision's revenues during 2016-17 while improving its
operating margins and profitability. Additionally, a more
predictable outlook for economic activity in Argentina would be
important for a ratings upgrade.
A downgrade of the sovereign would likely result in negative
rating actions for Cablevision in order to maintain the issuers'
current notching gap relative to the sovereign in the absence of
any significant change in their underlying credit quality.
Indications of a weakening market position in the domestic cable
market could also place pressure on the ratings, especially if
Cablevision is unable to remain among the leader cable and
internet players.
Headquartered in Buenos Aires, Argentina, Cablevision is a leading
provider of Pay TV and Internet Services in Latin America based on
the amount of subscriptions. Mainly focused on the City of Buenos
Aires, cities in Greater Buenos Aires, 12 provinces, and Uruguay,
Cablevision is dedicated to the installation, operation and
broadcasting of data transmission through cable and video.
Showing an ongoing expansion, the company reports total revenues
of USD 2.1 billion for the twelve month period ended on
March 31, 2016.
CMA ARGENTINA: Moody's Affirms B-bf Global Scale Bond Fund Rating
-----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
upgraded the national scale bond fund rating of CMA Argentina FCI
(the Fund) to A-bf.ar from Baa-bf.ar. Moody's has also affirmed
the Fund's B-bf global scale bond fund rating. This rating action
concludes Moody's review for upgrade of CMA Argentina FCI which
began on May 13, 2016. The Fund is a medium-term Argentine bond
fund domiciled managed by Capital Markets SGFCI. SA.
These rating actions were taken:
-- National scale bond fund rating: A-bf.ar from Baa-bf.ar
(RUR UPG)
-- Global scale bond fund rating: affirmed at B-bf
RATINGS RATIONALE
The upgrade of CMA Argentina FCI's national scale bond fund rating
to A-bf.ar reflects the sustained improvement in the Fund's credit
profile over the last six months. The improved credit profile has
been primarily driven by an increase in the Fund's allocation to
higher quality central bank securities. The subsequent decrease
in the Fund's maturity-adjusted weighted average expected loss has
resulted in a stronger B-bf global scale rating which now more
appropriately maps to a national scale rating of A-bf.ar. The
upgrade of the national scale rating also incorporate Moody's
expectation that the portfolio manager will maintain the current
credit profile going forward.
"Based on our observations of the fund's portfolio over the last
six months, the Fund's credit quality profile is now more
comparable to that of bond funds rated B-bf/A-bf.ar", said
Assistant Vice President Carlos de Nevares.
Capital Markets S.G.F.C.I S.A., is a mid-size asset manager in the
Argentinean mutual fund industry with 0.5% market share. As of
April 2016, Capital Markets managed approximately AR$1,068.4
billion in assets under management.
CORDOBA: Moody's Assigns B3 Rating to USD700MM Sr. Notes Issuance
-----------------------------------------------------------------
Moody's Investors Service has assigned a B3 (Global Scale foreign
currency) rating to the Senior Unsecured Notes to be issued by the
Province of Cordoba for up to USD700 million. The ratings are in
line with the Province's long term foreign currency issuer rating,
which carry a stable outlook.
RATINGS RATIONALE
The proposed Notes issuance have been authorized by the
Provincial's Laws N 9.086 and 10.340 whereas Governor's Decree
N519 approved the documentation related to the Notes issuance. The
Province of Cordoba will use the proceeds of the Notes for two
objectives. Firstly, it will offer to purchase up to USD200
million of outstanding principal of its 12.375% Senior Notes due
2017. Secondly, the province will an amount up to USD500 million
to finance infrastructure projects other than the provincial's gas
pipeline and electricity infrastructure projects which will have
their own independent financing.
The Notes will constitute direct, general, unconditional and
unsubordinated obligations of the Province. They will be
denominated and payable in US dollars with an expected maximum
maturity of 10 years and fixed interest rate on a semi-annual
basis. The Notes will be subject to the State of New York Law.
After the issuance of these Notes and coupled with planned new
debts with other funding sources, Moody's anticipates that the
ratio of total outstanding debt relative to total revenues will
grow up to 45% approximately -from the 28% calculated at the end
of 2015 fiscal year- which is still consistent with the assigned
rating. The assigned debt ratings are in line with the Province's
long term foreign currency issuer rating because they do not
present any credit enhancements that differentiate them from the
general solvency of the province already reflected in its current
issuer rating level.
The assigned ratings are based on preliminary documentation
received by Moody's as of the rating assignment date. Moody's
does not expect changes to the documentation reviewed over this
period nor anticipates changes in the main conditions that the
Notes will carry. Should issuance conditions and/or final
documentation of these Notes deviate from the original ones
submitted and reviewed by the rating agency, Moody's will assess
the impact that these differences may have on the ratings and act
accordingly.
WHAT COULD CHANGE THE RATING UP/DOWN
Given the strong macroeconomic and financial linkages between the
Government of Argentina's and Sub-sovereigns an upgrade in the
Argentine sovereigns ratings and/or a systemic improvement coupled
with lower idiosyncratic risks arising from this Province -for
instance with a sustained record of cash financing and operating
surpluses in the two digits range- could exert an upward pressure
in Cordoba's current ratings.
Conversely, a downgrade in Argentina's bond ratings and/or further
systemic deterioration or idiosyncratic risks arising in this
issuer -i.e. a rapid and sharp growth in the ratio of debt to
total revenues- could exert downward pressure on the ratings
assigned and could translate into a downgrade in the near to
medium term.
The principal methodology used in this rating was Regional and
Local Governments published in January 2013.
RIO NEGRO: Moody's Assigns 'B3' First Time Issuer Rating
--------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo assigned
first time issuer rating of B3 (Global Scale, local currency) and
Baa3.ar (Argentina National Scale, local currency) to the Province
of Rio Negro ("Rio Negro"). In the same rating action Moody's has
assigned provisional (P)B3 and Baa3.ar ratings on Global/National
scales respectively to the ARS700 million Treasury Bills Program
to be launched by this Province. The rating outlook on its global
scale issuer rating is stable, whereas all of its Baa3.ar ratings
are placed on review with direction uncertain.
RATING RATIONALE
The B3 issuer and (P)B3 debt ratings assigned to the Province of
Rio Negro and it's Treasury program respectively, reflects a
number of characteristics. The key credit strengths, firstly: the
low declining debt levels and; secondly a well-diversified
economy. Its debt to total revenues declined from 75% in 2008 to
26% at the end of last fiscal year, which is very low debt level
compared to peers. This debt profile is further strengthened by
the province's debt having limited exposure to foreign currency
obligations. Secondly, Rio Negro's key economic activities are
well diversified, ensuring the province is not overly dependent on
the fortunes of any one industry.
"On the credit challenges, we note the provice has a record of
flucuating operating and financial performance. Rio Negro's gross
operating balances to total revenues have fluctuated between an
adequate surplus of 7% reported in 2014 and a deficit of 3% in
past 2013. These flucuations are contributed to by the rigidities
in constraining expenditure, particularly personnel expenses.
Another credit weakness is the slightly higher reliance of Federal
Transfers, compared to peers, which stood at 54% of its total
revenues during 2015 FY, compared to an average of approximately
50%, making the province more dependent on the decisions of the
sovereign government."
The assigned issuer and debt ratings also reflect the weak
operating environment in Argentina. The intrinsic financial
characteristics of the Province of Rio Negro are constrained by
the lack of consistent and predictable policies at the national
level which affect the institutional framework under which the
province operates and, in Moody's view, anchors its credit quality
to that of the Sovereign.
Commenting on the debt ratings of the planned Treasury Bills
Program, Moody's said that they carry the same ratings than Rio
Negro's issuer rating since they do not present any special credit
enhancement to differentiate them from the issuer rating levels.
The program was created by Governor's Decree Nß147 and authorized
by Resolution Nß43 of the Secretary of Finance.
Rio Negro's outlook, it is stable, reflecting the stable outlook
of the Argentine sovereign bonds ratings.
Finally, Moody's explained that Rio Negro's recently assigned
issuer and debt ratings on Argentina's national scale, are under
review with direction uncertain . This mirrors the national scale
ratings (NSRs) of all the rated sub-sovereigns are being placed
under review direction uncertain pending a potential revision of
the Argentina's NSR map.
WHAT COULD CHANGE THE RATINGS UP/DOWN
Given the strong macroeconomic and financial linkages between the
sovereign and sub-sovereign entities, an upgrade or an outlook
change to positive of Argentina's sovereign bonds ratings could
lead to an upgrade or to an outlook change of the Province of Rio
Negro ratings.
Conversely, a downgrade in Argentina's bond ratings or outlook
change to negative and/or deterioration in the idiosyncratic risk
profile arising in this Province could exert downward pressure on
the ratings and could translate into a downgrade.
===========
B E L I Z E
===========
BELIZE: IMF Says Economy is Slowing, Vulnerabilities are Rising
---------------------------------------------------------------
An International Monetary Fund (IMF) team led by Jacques Bouhga-
Hagbe visited Belize during May 11-25 to hold discussions in the
context of the country's 2016 Article IV Consultation. At the
conclusion of the visit, Mr. Bouhga-Hagbe issued the following
statement:
"The economy is slowing and fiscal and external vulnerabilities
are rising. Falling oil production and multiple shocks in the
primary sector reduced GDP growth to 1 percent in 2015. The
decline in prices of energy and other commodities led to deflation
in 2015, although the increase in fuel tax restored positive
inflation, at 0.1 percent in March. The current account deficit
widened to 9.8 percent of GDP as exports fell by 9 percent (mainly
oil and marine products) and imports continued to grow, partly due
to investment projects. Following partial compensation payments
for the two nationalized companies, international reserves fell to
4.6 months of imports in March 2016. The fiscal deficit widened to
8 percent of GDP due to a one-off payment related to a settlement
of a loan to one of the nationalized companies, an increase in
public sector wages and transfers, and a large overrun in capital
expenditure. As a result, the stock of public debt climbed to 82
percent of GDP. The banking system continued to strengthen,
although the challenges posed by loss of correspondent banking
relationships with international banks have increased since the
2015 Article IV Consultation.
"The economic outlook has worsened further since the 2015 Article
IV Consultation and is subject to significant downside risks.
Growth is projected to decline further to 0.5 percent in 2016 and
average less than 2 percent in the medium term. In the absence of
fiscal measures, rigid current spending would fuel high fiscal
deficits and add to the already high public debt burden. The
current account deficit would slowly improve due to recovery of
exports, but would still remain high, putting downward pressure on
international reserves. These vulnerabilities could be exacerbated
by both domestic and external risks, such as a the end of
PetroCaribe financing, protracted period of weak growth in trading
partners, and challenges posed by withdrawal of correspondent
banking relationships.
"Sustained fiscal consolidation, supported by strong structural
reforms, is required to put public finances on a more sustainable
footing. Placing public debt path firmly on the downward path is
the foremost priority, which requires raising the primary fiscal
surplus to 4-5 percent of GDP by 2021. This can be achieved by a
combination of strong revenue and expenditure measures, including
broadening the tax base and implementing other tax reforms,
containing the public sector wage bill, initiating a parametric
reform of the public pension system and strengthening controls in
multiple areas of public financial management system.
"The authorities' determination to keep the financial system under
tight supervision is welcome. The mission supports the
authorities' prudent provisioning requirements and recommends
raising them to 100 percent given uncertainties on the collateral
values. Further strengthening the Anti-Money Laundering/Combating
Financing of Terrorism (AML/CFT) framework may assist in
preventing further loss of correspondent relationships with global
banks. This particularly includes strengthening AML/CFT risk-based
supervision of banks, registered agents, and company service
providers, and enhancing the transparency of legal persons and
arrangements.
"The structural reforms are needed to improve potential growth and
improve competitiveness, which are needed to reduce the external
vulnerabilities. The adoption of the Growth and Sustainable
Development strategy is a welcome development. It should be
complemented by reforms increasing labor market flexibility,
further development of the financial markets, and developing a
well-designed framework for public private partnerships. There is
also room for improvement in areas such as starting a business,
getting credit, cross-border trade, timely resolution of contract
disputes, and strengthening small business."
During its visit, the IMF team met with Prime Minister Dean
Barrow, Financial Secretary Joseph Waight, Central Bank Governor
Glenford Ysaguirre, other government and central bank officials,
representatives of the private sector and members of the
opposition. The mission thanks the authorities for their
cooperation and openness.
===========
B R A Z I L
===========
BRAZIL: Regain Investors' Confidence to Recover, Minister Says
--------------------------------------------------------------
EFE News reports that Finance Minister Henrique Meirelles told a
group of business leaders that Brazil must regain investors'
confidence to pull the economy out of a deep recession and get it
back on track.
Confidence will rise "to the extent that we carry out" the
measures proposed by interim President Michel Temer's economic
team, which wants sharp cuts to public spending, Meirelles said,
according to EFE News.
As reported in the Troubled Company Reporter-Latin America on
March 29, 2016, severe contraction that was preceded by several
years of below-trend growth has impaired Brazil's (Ba2 negative)
underlying economic strength, despite the country's large and
diversified economy, says Moody's Investors Service. The
country's credit rating is also coming under pressure from the
government's high level of mandatory spending.
RIO DE JANEIRO: S&P Lowers ICR to 'B-' & Puts on CreditWatch Neg.
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
the State of Rio de Janeiro (Rio) to 'B-' from 'BB-'. At the same
time, S&P Global Ratings lowered its national-scale rating on the
state to 'brB-' from 'brA'. S&P has placed the ratings on
CreditWatch with negative implications.
RATIONALE
The downgrade and CreditWatch placement reflect S&P's view of a
rapid and continued fiscal deterioration in the first months of
2016, a weak cash position, and unlike what had S&P observed in
the past few months, uncertainties over the state's willingness to
prioritize the timely payment of debt service. The rating action
also reflects S&P's view that Rio is likely to receive support
from the central government to repay its debt obligations under
this situation of fiscal stress. Within the next 90 days, S&P
will assess under what circumstances the federal government will
keep supporting Rio, as well as the state's overall fiscal
measures in light of a weak cash position.
Rio has continued to accumulate material delays in payment to
suppliers, and has carried on with the payment of public salaries
in installments. Because of Rio's slumping liquidity, on May 23,
the state missed an $8 million debt service payment of a loan from
the French Development Agency (AFD). The money instead paid
public wages. The loan, which has a 30-day grace period, is to
fund urban mobility projects in the state and is guaranteed by
Brazil's central government.
Although the majority of Rio's borrowing base comes from Brazilian
public banks and the Treasury, the state also has borrowings from
the AFD, Inter-American Development Bank, International Bank for
Reconstruction and Development, Corporacion Andina de Fomento, and
Japan Bank for International Cooperation. These loans, which need
the approval from the National Treasury, are 100% guaranteed by
the central government. In case of nonpayment, the Treasury acts
as a guarantor, and the central government freezes its transfers
to the state. In this case, the central government froze
transfers from Fundo de Participacao dos Estados e Municipios, and
Imposto sobre Produtos Industrializados.
S&P believes the National Treasury will repay Rio's debt service
to AFD on time. The state has also a R$1.05 billion loan from
Credit Suisse, which will start to amortize in November 2016. S&P
expects that the central government will honor Rio's guaranteed
debt.
However, and in a change from the past few months, S&P believes
there are now uncertainties over the state's willingness to
prioritize the timely payment of its debt obligations. S&P
believes that Rio will keep prioritizing salary payments over debt
obligations. Because of payment culture issues, S&P assess the
state's financial management as very weak, and this is likely to
continue until S&P has evidence of a material policy change.
S&P expects Rio to continue posting high fiscal deficits during
the next 12-18 months, maintaining very weak budgetary
performance. S&P estimates that the state's operating deficit
will reach at least R$8 billion or more, or 15% of operating
revenues in 2016 and maintain similar deficits over the next 12-18
months, depending on Rio's capacity to implement reforms.
Deficits after capital expenditures are likely to be close to 20%
of operating revenues, so the state will continue delaying
payments to suppliers.
S&P views Rio's budgetary flexibility as weak. Although own-
source revenues account for 90% of the state's operating revenues,
the state has limited ability to cut expenditures due to high
level of operating spending as well as large-scale infrastructure
projects. According to S&P's base-case scenario for 2016, the
state's budgetary flexibility will remain weak due to difficulties
in levying new taxes amid a recession and controlling operating
spending.
Rio's direct debt will remain high, at about 200% of consolidated
revenues in 2016. The state owes 64% of its debt to the federal
government. In addition to the nonpayment to the AFD, the state
reports delays in payments to other official financial
institutions. Under S&P's criteria, it do not consider these
delayed payments a default.
Even during a recession, Rio's GDP per capita continues to be
higher than that of other Brazilian states such as Minas Gerais.
Overall, S&P considers Rio's economy as weak compared with that of
international peers. GDP per capita is an estimated $17,296 for
fiscal 2014, according to a local statistical institute.
Rio has moderate contingent liabilities because most government-
related entities (GREs) are part of the state's budget and debt.
Companhia Estadual de Aguas e Esgotos, a sewage and water utility,
is Rio's largest-owned entity and S&P considers as self-
supporting.
As with the rest of the rated LRGs in Brazil, Rio has an
institutional framework that S&P considers evolving but
unbalanced, and weakening, given the fiscal and political dynamics
in the country.
Liquidity
S&P views the state's liquidity as weak because its average cash
reserves--including S&P's estimates for cash--will likely cover
about 5.5% of projected debt service in 2016. Because of Rio's
weak liquidity position, the state's capacity to pay the estimated
R$4.34 billion in interests and R$3.65 billion in amortization
payment as of year-end 2016 is doubtful. Although most of Rio's
debt is with government institutions and the federal government
guarantees those debts, the federal government would likely repay
Rio's debt using the state's federal transfers.
CREDITWATCH
S&P aims to resolve the CreditWatch placement within the next
three months.
Upside scenario
S&P could affirm its ratings on Rio if S&P assess that the state
could receive support from the sovereign, and that the support is
sufficiently predictable and enough to cover Rio's 2016 debt
service; and if the state comes up with a sustainable fiscal plan
for the next 12 months.
Downside scenario
Conversely, S&P could lower its global ratings on Rio if S&P
believes there is not sufficient evidence of support coming from
the sovereign, which could lead to a potential credit or payment
crisis. The nonpayment of commercial debt service with Credit
Suisse would lead S&P to lower the ratings to 'D'.
KEY STATISTICS
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
RATINGS LIST
Downgraded; On CreditWatch Negative
To From
Rio de Janeiro (State of)
Issuer credit rating
Global scale B-/Watch Neg/-- BB-/Negative/--
Brazil national scale brB-/Watch Neg/-- brA/Negative/--
==========================
C A Y M A N I S L A N D S
==========================
BEI KAI: Commences Liquidation Proceedings
------------------------------------------
On May 11, 2016, the sole shareholder of Bei Kai Investments II
Limited resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Frances Holiday
c/o Cate Babour Walkers
6 Gracechurch Street
London EC3V 0AT
Telephone: +44 2072204970
e-mail: cate.barbour@walkersglobal.com
BROOKFIELD INTERNATIONAL: Placed Under Voluntary Wind-Up
--------------------------------------------------------
On May 13, 2016, the sole shareholder of Brookfield International
Funds, 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:
Brookfield Investment Management (Canada) Inc.
c/o Justin Savage
c/o Ogier
89 Nexus Way, Camana Bay
Grand Cayman KY1-9009
Cayman Islands
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
ELAH CAPITAL: Creditors' Proofs of Debt Due June 13
---------------------------------------------------
The creditors of Elah Capital Group Offshore Feeder Ltd. are
required to file their proofs of debt by June 13, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on May 2, 2016.
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
HATHAWAY TRADING: Creditors' Proofs of Debt Due June 23
-------------------------------------------------------
The creditors of Hathaway Trading Limited are required to file
their proofs of debt by June 23, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on May 6, 2016.
The company's liquidator is:
Wardour Management Services Limited
Telephone: (345) 945-3301
Facsimile: (345) 945-3302
P.O. Box 10147 Grand Cayman KY1-1002
Cayman Islands
JAPAN TK: Creditors' Proofs of Debt Due June 19
-----------------------------------------------
The creditors of Japan TK Investor I (Cayman) Holdings Inc. are
required to file their proofs of debt by June 19, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on April 27, 2016.
The company's liquidator is:
Christopher Smith
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
Cayman Islands
Telephone: (345) 947 4700
MAPLE PROPERTIES: Creditors' Proofs of Debt Due June 12
-------------------------------------------------------
The creditors of Maple Properties Ltd. are required to file their
proofs of debt by June 12, 2016, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 1, 2016.
The company's liquidator is:
Perry Levy
Governor's Square, 2nd Floor
23 Lime Tree Bay Avenue Grand
Cayman KY1-1110
Cayman Islands
e-mail: plevy@caymanmanagement.ky
Telephone: +1 (345) 949 4018
Facsimile: +1 (345) 949 7891
OCP CLO 2012-1: Creditors' Proofs of Debt Due June 15
-----------------------------------------------------
The creditors of OCP CLO 2012-1, Ltd. are required to file their
proofs of debt by June 15, 2016, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on May 10, 2016.
The company's liquidator is:
Andre Slabbert
Estera Trust (Cayman) Limited
c/o Estera Trust (Cayman) Limited
75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
Telephone: +1 (345) 949 4900
STRUCTURED INVESTMENTS: Creditors' Proofs of Debt Due June 23
-------------------------------------------------------------
The creditors of Structured Investments Corporation II are
required to file their proofs of debt by June 23, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on May 6, 2016.
The company's liquidator is:
Ellen J. Christian
c/o BNP Paribas Bank & Trust Cayman Limited
P.O. Box 2003 Grand Pavilion Commercial Centre
802 West Bay Road Grand Cayman KY1-1104
Cayman Islands
TSINGDA EEDU: Creditors' Proofs of Debt Due June 2
--------------------------------------------------
The creditors of Tsingda Eedu Group are required to file their
proofs of debt by June 2, 2016, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on May 3, 2016.
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
ULYSSE MANAGEMENT: Placed Under Voluntary Wind-Up
-------------------------------------------------
On April 29, 2016, the sole shareholder of Ulysse Management
Limited 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:
Avalon Trust & Corporate Services Ltd.
Telephone: +1 (345) 769 4422
Facsimile: +1 (345) 769 9351
Landmark Square, 1st Floor
64 Earth Close
P.O. Box 715 Grand Cayman KY1-1107
Cayman Islands
===========
G U Y A N A
===========
GUYANA: IMF to Help Country in Move to Reduce VAT
-------------------------------------------------
Caribbean360.com reports that the Guyana government is considering
reducing the Value Added Tax (VAT) in a move that could see the
expansion of the tax base. But changes are not likely before the
next budget.
At a media conference, Minister of Finance Winston Jordan said the
International Monetary Fund (IMF) has been approached for
assistance, and a team from the institution's Barbados-based
Caribbean Regional Technical Assistance Centre is expected to
arrive soon to begin its work, according to Caribbean360.com.
"They (CARTAC) are going to send a one or two-person mission to do
a complete assessment of our VAT, where it is today, including
options for changes in the system, so it is on the cards," the
report quoted Minister Jordan as saying. "I don't see it
happening before the next budget. It would be extremely difficult
to just bring in a VAT reduction in the middle or half of the
year, when our budget anyhow is not based on that."
During the visit, the CARTAC team is expected to conduct an
assessment and examine the quantitative work of the Tax Reform
Committee, the report relays.
Back in January, that committee had recommended that VAT be
lowered by two percent to 14 percent, along with the introduction
of an intermediate rate of seven percent, the report discloses.
The finance minister said the matter is being carefully examined
and changes could affect water and electricity services on which
VAT is not currently paid, the report notes.
"In doing the reduction, we will have to expand the base on which
the VAT is being applied to recoup lost revenues from the
reductions," Jordan told the media, pointing to Trinidad as an
example where the base was broadened when the VAT was reduced,
says the report.
"Now there are various options for reducing this VAT. What we will
want to do is to have the widest possible consultation because
some of the options will involve putting the VAT on some things
that could cause trouble," Minister Jordan added.
===========
M E X I C O
===========
ARENDAL S DE RL: Defaults on $100MM Bond After Pemex Defers Plans
-----------------------------------------------------------------
Sebastian Boyd at Bloomberg News reports that pipeline builder
Arendal S de RL has become the latest casualty of Mexico's state-
owned oil producer.
The company defaulted on a $100 million bond that was due last
week after Petroleos Mexicanos deferred plans to build two
pipelines and delayed payments to suppliers, according to
Bloomberg News. Arendal depends on Pemex, as the oil giant is
known, for about 80 percent of its income. In February, Fitch
Rating said that Pemex owed Arendal MXN1.8 billion ($97.4
million), Bloomberg News notes.
Battered by low oil prices and sinking output, Pemex owed
suppliers $7.2 billion at the end of the first quarter, more than
any other company in Latin America, Bloomberg News relays. It has
extended the amount of time it takes to pay suppliers to 180 days
from 20 as it cuts costs in the wake of 14 straight quarterly
losses, Bloomberg News notes. Pemex, which has $95 billion of
debt, has also slashed the day rates it pays to rent rigs, a move
that triggered a default by supplier Oro Negro last year,
Bloomberg News relays. The notes of fellow rig operator Offshore
Drilling Holding SA fell to a record 29.5 cents on the dollar May
23, signaling investors are concerned it will struggle to repay
the debt, notes the report.
"The delays in accounts receivable pressured their working
capital," Francisco Gutierrez, an analyst at S&P Global Ratings,
said, referring to Arendal, Bloomberg News notes. "About 90
percent of Arendal's projects are with Pemex, which shows how
vulnerable they are," Mr. Gutierrez added.
On May 16, Pemex said it had cut its debt to suppliers by MXN92
billion, notes Bloomberg News. The oil producer said it
prioritized payments to companies it owed less than MXN85 million
each, which covered 90 percent of the companies it was indebted
to, Bloomberg News adds.
As reported in the Troubled Company Reporter-Latin America on
May 26, 2016, S&P Global Ratings lowered its corporate credit
rating on Mexico-based engineering and construction company
Arendal, S. de R.L. de C.V. to 'D' from 'CC'. S&P also lowered
its issue-level rating on the company's $100 million senior
unsecured notes due May 23, 2016 to 'D' from 'CC'. At the same
time, S&P affirmed the '4' recovery rating on the senior unsecured
notes, reflecting its expectation of average (lower end of the 30%
to 50% range) recovery for lenders in the event of a payment
default. S&P is also taking the ratings off CreditWatch with
negative implications.
===========
P A N A M A
===========
PANAMA: At Least 5 Weeks to Repair Damage to Canal Locks
--------------------------------------------------------
EFE News reports that the Panama Canal Authority, or ACP, said
that the repairs to a wall in the southern section of the
Miraflores lock that collapsed over the weekend is progressing at
a steady pace, but will take at least five weeks to complete.
"All the canal's operations are continuing in an absolutely normal
way. It is estimated that the first phase of the work will be
completed in four or five weeks," the ACP said, according to EFE
News.
A number of experts studied the lock and concluded that it is
"solid, secure and stable," the ACP said, adds the report. "That
wall is not part of the basic structure of the lock; it was
originally built as a containing wall to hold back earth from the
original slopes along the banks."
The Panama Canal, through which 6 percent of the world's trade is
shipped, was built by the United States between 1904 and 1914, and
was managed by Washington until Dec. 31, 1999, when the Torrijos-
Carter Treaty took effect that had been signed in 1977, the report
notes.
To be held on June 26 will be the inauguration of the canal's
first enlargement, which was begun in 2007 for an initial cost of
$5.25 billion and will allow three times more freight to pass
through the canal than at present, says the report.
The expansion of the route, constructed by an international
consortium led by Spain's Sacyr infrastructure company, will be
inaugurated with a ceremony to which heads of state and government
from all over the world are invited, as well as representatives of
the principal shipping lines, the report adds.
======================
P U E R T O R I C O
======================
EYL INVESTMENT: Wants Exclusive Plan Filing Extended by 60 Days
---------------------------------------------------------------
EYL Investment Corp. asks the U.S. Bankruptcy Court for the
District of Puerto Rico to extend by 60 days the exclusivity
period for the Debtor to file a plan of reorganization and
accompanying disclosure statement. The Debtor also wants a term
of 60 days after the order approving the Disclosure Statement is
entered to procure the votes for the Plan.
According to the Debtor, there are pending negotiations with the
creditors that need to be resolved prior to the filing of the
Disclosure Statement and Plan.
The Debtor's principal is outside of Puerto Rico for business
matters. Therefore, the Debtor will need the extension of the
exclusivity period.
The Debtor assures the Court that it is meeting its obligations as
debtor-in-possession. Monthly Operating Reports have been filed
or are in the process to be filed in the next five days and
quarterly fees have been paid.
San Juan, Puerto Rico-based EYL Investment Corp. filed for Chapter
11 bankruptcy protection (D. P.R. Case No. 15-02622) on April 8,
2015, estimating its assets at between $500,000 and $1 million and
liabilities at between $1 million and $10 million. The petition
was signed by Eduardo Hernandez Ramirez, president.
Mary Ann Gandia, Esq., at Gandia-Fabian Law Office serves as the
Debtor's bankruptcy counsel.
=================
V E N E Z U E L A
=================
VENEZUELA: LATAM Airlines Drops Venezuela Route
-----------------------------------------------
Trinidad Express reports that Latin America's largest airline,
Chile-based LATAM Airlines, said it would suspend its flights to
Venezuela due to the "economic scenario", following a similar
decision by Lufthansa over the weekend.
"Owing to the current complex macroeconomic scenario in the
region, LATAM Airlines has announced adjustments to its
destination network . . . . it will suspend temporarily and for
an undefined time its operations to Caracas airport," the company
said in a statement, according to Trinidad Express.
German airline Deutsche Lufthansa AG also said it was halting
Caracas-bound operations, the report relays. It is owed more than
US$100 million in ticket revenue, it said, the report notes.
International airlines have for years struggled to repatriate
billions of dollars in revenue held in Venezuela's local bolivar
currency, as the cash-strapped government failed to convert it to
hard currency amid tight exchange controls, the report relays.
This has prompted many airlines to limit service to Venezuela and
require that passengers pay fares in hard currency, the report
notes. But a deep recession and rocketing inflation have put
foreign travel out of the reach of many citizens, the report says.
Economic woes in the region are also spurring LATAM to shift
flight routes away from struggling areas like Brazil and Venezuela
towards places like still-growing Peru, the report notes.
Flights between Sao Paulo and Caracas will stop at the end of May,
and those from Santiago and Lima will end in July, the company
said, adding that it would work to restart operations "as soon as
conditions permitted," the report relays.
Tony Tyler, the chief executive of airline industry body IATA, had
warned in March that the few remaining airlines still operating in
Venezuela "may throw in the towel," the report discloses.
"You can sense the frustration, some have said to us privately
that they are thinking seriously about whether they can afford to
keep these operations going," he said on the sidelines of an
airline conference in the Chilean capital Santiago, the report
notes.
Venezuela has promised to settle its US$50 million debt to State-
owned Caribbean Airlines Ltd (CAL), the report adds.
VENEZUELA: Trade Talks Continue With Trinidad and Tobago
--------------------------------------------------------
Trinidad and Tobago Newsday reports that Trinidad and Tobago Trade
and Industry Minister Paula Gopee-Scoon will meet with a high
powered team of officials from Venezuela's Trade and Commerce
Ministry from Tuesday (May 31) to continue discussions on a US$50
million trade agreement, following bilateral discussions between
Trinidad and Tobago Prime Minister Dr. Keith Rowley and Venezuelan
President Nicolas Maduro at the Diplomatic Centre in St Ann's.
A statement issued by the TT ministry said the six member
Venezuelan delegation will visit TT as a follow up to Maduro's
commitment that Venezuelan will purchase goods from TT using a
US$50 million revolving fund established by his government,
according to Trinidad and Tobago Newsday.
The report notes that TT Minister Gopee-Scoon will lead the
discussions, which will be focused on finalizing the list of
manufactured products and the modalities of the export
arrangements to Venezuela to facilitate easy passage of the goods
from TT to Venezuela, and also payment for goods shipped.
Speaking with reporters following the bilateral talks, TT Minister
Gopee-Scoon identified chicken, butter, ketchup, rice and black
beans as some items which could be going to Venezuela under this
agreement, the report notes.
The TT delegation at this week's talks will include
representatives from the Ministry of Foreign and CARICOM Affairs;
Ministry of Agriculture, Land and Fisheries; TT Chamber of
Industry and Commerce; TT Manufacturers' Association; Export-
Import Bank of TT and exporTT Limited, the report relays.
The Venezuelan delegation is also scheduled to visit various
manufacturers' plant operations to see firsthand their
capabilities, the report notes.
At the post-Cabinet news conference at the Office of the TT Prime
Minister in St Clair, Rowley said the US$50 million revolving fund
which forms part of the new trade agreement reached with
Venezuela, provides local manufacturers with an opportunity to
maintain employment in their factories and penetrate the
Venezuelan market in a way that has not been done before, the
report says. The TT Prime Minister was confident the agreement
would benefit local manufacturers, the report adds.
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 * * *