/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/161221.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, December 21, 2016, Vol. 17, No. 252 Headlines A R G E N T I N A AEROPUERTOS ARGENTINA: Moody's Raises Corp. Family Rating to B2 AEROPUERTOS ARGENTINA: Moody's Upgrades Global Scale CFR to B2 ARGENTINA: Transit Strike Affects Commuters B E R M U D A FLOATEL INTERNATIONAL: S&P Affirms 'B-' CCR; Outlook Negative B R A Z I L BRASKEM SA: Payment of BRL3.1BB in Fines Credit Neg., Moody's Says GAFISA S/A: Moody's Puts B2 CFR on Review for Downgrade MAPPIN LOJAS: Wins U.S. Recognition of Brazilian Proceedings C A Y M A N I S L A N D S EMERGING MARKETS: Shareholders Receive Wind-Up Report DIRECT STRATEGIES: Shareholders Receive Wind-Up Report FRIENDOU INTERNATIONAL: Shareholders' Meeting Set for Dec. 22 GINGER CAPITAL: Shareholders' Final Meeting Set for Dec. 22 GINGER CAPITAL FEEDER: Shareholders' Final Meeting Set for Dec. 22 GOLDMAN SACHS: Shareholders Receive Wind-Up Report HEARTSTRINGS FUND: Shareholder to Hear Wind-Up Report on Jan. 11 MULLER CAPITAL: Shareholder to Hear Wind-Up Report on Dec. 22 NAVISTAR SPECIAL: Shareholders Receive Wind-Up Report RGM TRADING: Shareholder Receives Wind-Up Report SPROTT OFFSHORE: Shareholder Receives Wind-Up Report SPROTT OFFSHORE II: Shareholder Receives Wind-Up Report SUNFUN INFO: Shareholders' Final Meeting Set for Dec. 22 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Power Firms 'Lose US$250.0MM' on Upfront Taxes DOMINICAN REPUBLIC: Fungus Threatens Banana Crops G U Y A N A * GUYANA POWER: Workers on Strike, Demands Higher Wage J A M A I C A DIGICEL GROUP: Cutting Costs M E X I C O * MEXICO: Central Bank Hikes Interest Rate by More Than U.S. Fed P E R U BANCO INTERNACIONAL: S&P Raises Rating on Sub. Debt to 'BB+' - - - - - ================= A R G E N T I N A ================= AEROPUERTOS ARGENTINA: Moody's Raises Corp. Family Rating to B2 -------------------------------------------------------------- Moody's Investors Service has upgraded Aeropuertos Argentina 2000 S.A. corporate family and senior unsecured debt ratings to B2 from B3. The outlook for all ratings is stable. RATINGS RATIONALE The rating upgrade takes into consideration AA2000 strong traffic and revenue trends that, in spite of the local economic recession in recent years, translated into very strong credit metrics for the rating category. The rating upgrade also considers the significant proportion of revenues originated by international travel into Argentina, that Moody's estimate account for approximately 20% of AA2000 total revenues, that help de-link the credit quality of the issuer from local economic conditions, coupled with the fact that most of the issuer's revenues are denominated or linked to the US dollar. In Moody's opinion, the strong performance of the issuer (grid indicated rating at Baa), the generation of revenues tied to the US dollar, coupled with improved liquidity, and expectation of more favorable macroeconomic conditions allow a rating differentiation from the sovereign, currently rated at B3, stable. AA2000 rating is supported by the airport's dominant market position in its business sector, long established traffic and passenger trends as well as the nature and length of the concession agreement, with all the key assets managed by AA2000 until the end of the concession in 2028. "AA2000 historical credit metrics are very strong, with an average FFO to debt ratio of 50%, interest coverage (FFO + interest / interest) of 6 times and DSCR equal to 4 times. While we expect the company will increase leverage and start making dividend payments to shareholders, we don't foresee an aggressive financial policy. As a result, we anticipate that credit metrics will remain strong over the rating horizon. We expect interest coverage at around 5 times, FFO to debt over 30% and DSCR over 2.5 times," Moody's says. Liquidity & Debt Profile AA2000 has adequate liquidity, with strong internal cash generation. As most of Argentine companies, AA2000 lacks committed credit facilities although it has access to local and international banks financing and capital markets. While all of AA2000's debt is dollar denominated, the company produces most of its revenues either in dollars or are dollar denominated, providing therefore a natural hedge against devaluation risk. Moody's note however that convertibility risk remains in place, given that revenues are generated in Argentina. Rating Outlook The stable outlook for AA2000 mainly reflects the stable outlook of the sovereign, given that the current constraints on the B2 ratings are mainly related to the linkages the company shares with the sovereign. What Could Change the Rating - Up AA2000's B2 rating is constrained by Argentina's B2 sovereign ceiling. The ratings could be upgraded if Argentina's rating is upgraded. Upward pressure could result from expansion of AA2000's market size or geographic diversification, as well as from an improving business environment in Argentina that leads to growth of both its aeronautical and non-aeronautical revenues. What Could Change the Rating - Down Given the strong fundamentals of the company, the stable outlook and current constraining factors, a rating downgrade is not likely in the short term. Nevertheless, developments that include passenger traffic flows that are substantially less than projected on a sustained basis, deterioration in the regulatory framework that could result in a prolonged inability to adjust rates and tariffs as needed going forward, and/or unfavorable changes to the terms of the Concession Agreement could have negative implications for the rating. The principal methodology used in these ratings was Privately Managed Airports and Related Issuers published in December 2014. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology. Aeropuertos Argentina 2000 S.A. was incorporated in January, 1998 after winning the national and international bid for the concession rights related to the "Group A" airports of the Argentine National Airport System. The concession consist of 33 airports that handle over 90% of Argentina's arriving and departing passengers, and include the two airports which serve the capital city of Buenos Aires, Ezeiza (EZE) and Jorge Newbery (JN) Airports. Located 38 km. from the city of Buenos Aires, EZE is the 8th largest airport in Latin America. On an aggregate basis, EZE and JN airports would constitute the third busiest airport in Latin America after Sao Paulo (if also aggregated) and Mexico City. AEROPUERTOS ARGENTINA: Moody's Upgrades Global Scale CFR to B2 -------------------------------------------------------------- Moody's Latin America has upgraded Aeropuertos Argentina 2000 S.A. (AA2000) Global Scale corporate family and senior unsecured debt ratings to B2 from B3 and National Scale corporate family and senior unsecured debt ratings to A2.ar from Baa1.ar. The outlook for all ratings is stable. RATINGS RATIONALE The rating upgrade takes into consideration AA2000 strong traffic and revenue trends that, in spite of the local economic recession in recent years, translated into very strong credit metrics for the rating category. The rating upgrade also considers the significant proportion of revenues originated by international travel into Argentina, that Moody's estimate account for approximately 20% of AA2000 total revenues, that help de-link the credit quality of the issuer from local economic conditions, coupled with the fact that most of the issuer's revenues are denominated or linked to the US dollar. In Moody's opinion, the strong performance of the issuer (grid indicated rating at Baa), the generation of revenues tied to the US dollar, coupled with improved liquidity, and expectation of more favorable macroeconomic conditions allow a rating differentiation from the sovereign, currently rated at B3, stable. AA2000 rating is supported by the airport's dominant market position in its business sector, long established traffic and passenger trends as well as the nature and length of the concession agreement, with all the key assets managed by AA200 until the end of the concession in 2028. "AA2000 historical credit metrics are very strong, with an average FFO to debt ratio of 50%, interest coverage (FFO + interest / interest) of 6 times and DSCR equal to 4 times. While we expect the company will increase leverage and start making dividend payments to shareholders, we don't not foresee an aggressive financial policy. As a result, we anticipate that credit metrics will remain strong over the rating horizon. We expect interest coverage at around 5 times, FFO to debt over 30% and DSCR over 2.5 times," Moody's says. Liquidity & Debt Profile. AA2000 has adequate liquidity, with strong internal cash generation. As most of Argentine companies, AA2000 lacks committed credit facilities although it has access to local and international banks financing and capital markets. While all of AA2000's debt is dollar denominated, the company produces most of its revenues either in dollars or are dollar denominated, providing therefore a natural hedge against devaluation risk. Moody's note however that convertibility risk remains in place, given that revenues are generated in Argentina. Rating Outlook The stable outlook for AA2000 mainly reflects the stable outlook of the sovereign, given that the current constraints on the ratings are mainly related to the linkages the company shares with the sovereign. What Could Change the Rating - Up AA2000's ratings are constrained by Argentina's B2 sovereign ceiling. The ratings could be upgraded if Argentina's rating is upgraded. Upward pressure could result from expansion of AA2000's market size or geographic diversification, as well as from an improving business environment in Argentina that leads to growth of both its aeronautical and non-aeronautical revenues. What Could Change the Rating - Down Given the strong fundamentals of the company, the stable outlook and current constraining factors, a rating downgrade is not likely in the short term. Nevertheless, developments that include passenger traffic flows that are substantially less than projected on a sustained basis, deterioration in the regulatory framework that could result in a prolonged inability to adjust rates and tariffs as needed going forward, and/or unfavorable changes to the terms of the Concession Agreement could have negative implications for the rating. The principal methodology used in these ratings was Privately Managed Airports and Related Issuers published in December 2014. Please see the Rating Methodologies page on www.moodys.com.ar for a copy of this methodology. Aeropuertos Argentina 2000 S.A. was incorporated in January, 1998 after winning the national and international bid for the concession rights related to the "Group A" airports of the Argentine National Airport System. The concession consist of 33 airports that handle over 90% of Argentina's arriving and departing passengers, and include the two airports which serve the capital city of Buenos Aires, Ezeiza (EZE) and Jorge Newbery (JN) Airports. Located 38 km. from the city of Buenos Aires, EZE is the 8th largest airport in Latin America. On an aggregate basis, EZE and JN airports would constitute the third busiest airport in Latin America after Sao Paulo (if also aggregated) and Mexico City. ARGENTINA: Transit Strike Affects Commuters ------------------------------------------- EFE News reports that a nationwide strike launched by Argentine public transit unions affected hundreds of thousands of people who depend on trains, buses and other means of passenger transport to commute to work. In Greater Buenos Aires, the strike against income taxes for low- income workers led to long lines of people trying to access public transport at main traffic hubs, such as the Once and Retiro stations, according to EFE News. * * * On Oct. 17, 2016, the Troubled Company Reporter-Latin America reported that Fitch Ratings has affirmed Argentina's sovereign ratings as: -- Long-term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B', Outlook Stable; -- Senior unsecured Foreign Currency bonds at 'B'; -- Country Ceiling at 'B'; -- Short-Term Foreign and Local Currency IDRs at 'B'. As previously reported by the TCR-LA, Argentina defaulted on some of its debt late July 30, 2014, after expiration of a 30-day grace period on a US$539 million interest payment. Earlier that day, talks with a court-appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. On March 30, 2016, after more than 12 hours of debate in the Senate, Argentina's Congress passed a bill that will allow the government to repay holders of debt that the South American country defaulted on in 2001, including a group of litigating hedge funds that won judgments in a New York court. The bill passed by a vote of 54-16. ============= B E R M U D A ============= FLOATEL INTERNATIONAL: S&P Affirms 'B-' CCR; Outlook Negative ------------------------------------------------------------- S&P Global Ratings affirmed its 'B-' long-term corporate credit rating on Bermuda-based accommodation rig owner Floatel International Ltd. The outlook remains negative. S&P also affirmed its issue rating on Floatel's $650 million term loan at 'B-'. The recovery rating on this loan is unchanged at '3', indicating S&P's expectation of meaningful recovery prospects at the lower end of the 50%-70% range in the event of a payment default. The company has restored its liquidity to a level S&P considers adequate by securing $230 million in new financing for the delivery payment of its new "Floatel Triumph" vessel and successfully negotiating a covenant reset with its lenders. The affirmation reflects this, and S&P's forecast that Floatel's credit measures will remain weak, but that free operating cash flow (FOCF) will turn positive as investments are phased out and material backlog remains. The Triumph will fully contribute to operating earnings starting from 2017. Although S&P expects debt to EBITDA to fall to about 6x in 2017 (from about 7.5x in 2016) as a result, it is still unclear whether Floatel will be able to secure new contracts and revenue streams in 2018 and beyond. "Our assessment of Floatel's business risk is largely determined by the highly competitive and cyclical nature of the offshore oilfield services industry in which the company operates. With a fleet of five accommodation vessels, Floatel draws its revenues and cash flows from a relatively concentrated asset base. We expect the Floatel Triumph, which was delivered in 2016, to contribute close to 40% of EBITDA in 2017. Geographic and customer diversification is limited by the low number of vessels. We do not view this as a major constraint, however, given the high quality of Floatel's fleet of semisubmersible units, and its strong commercial relationships with blue-chip exploration and production companies. In addition, there are fewer than 30 operational semisubmersible units in the global fleet," S&P said. The operating environment remains very weak--oil companies globally continue to delay and cancel projects in the oil and gas industry as they adjust to the lower price environment. Therefore, S&P expects demand for accommodation rigs to remain low, which will weigh on day rates and, thus, profitability. Floatel had a backlog of $496 million firm contracts and $131 million of options as of September 2016, which S&P considers a satisfactory degree of cash flow visibility. In S&P's view, Floatel is also less exposed to project cancellation than most peers. These factors are critical supports to S&P's assessment of Floatel's business profile. Floatel's financial risk profile has been damaged by its weakening cash flow generation capability in an operating environment that has deteriorated materially. The $230 million it obtained in 2016 from its Singapore-based 50%-shareholder Keppel Corporation has weakened its credit metrics in the short term--its debt burden has increased but the new Triumph will not immediately have an effect on EBITDA and cash flows. The financing was raised as a new tranche under the existing new vessel facility. S&P regards the entire amount as debt, although S&P notes the new tranche is effectively subordinated to the existing "Endurance" tranche, and comes with favorable terms--Floatel pays no cash interest or cash amortization payments. Instead, the loan is subject to a 2% payment-in-kind interest. Weak prospects of a market recovery over the next two years make it uncertain whether the company will be able to secure sufficient work in 2018 and beyond. This could increase pressure on Floatel over time, potentially leading S&P to reassess its view of the sustainability of its capital structure in relation to the market environment. Nevertheless, S&P anticipates positive FOCF after the delivery of Triumph as the company has no committed capital expenditure thereafter. In S&P's base case, it assumes: -- Strong utilization for contracted rigs, in line with historical levels; -- The lay-up of the Reliance vessel for a lengthy period given that no contract has been agreed at present; -- EBITDA generation of about $150 million in 2016 and about $175 million in 2017, compared with $188 million in 2015; -- No dividends; after the amendment for new vessel facility (NVF), dividends are subject to consent from the NVF lenders; and -- Very low capital expenditure (capex) of about $10 million per year starting 2017, mainly related to maintenance requirements. Based on these assumptions, S&P arrives at these credit measures: -- Adjusted debt to EBITDA close to 7.5x for the full year 2016 and about 6x in 2017; -- Funds from operations (FFO) to debt of about 8% and 10% in 2016 and 2017, respectively; and -- Negative FOCF in 2016 of about $190 million, after reported negative FOCF of about $250 million in 2015. FOCF should nevertheless turn positive in 2017 because capex is forecast to drop to low levels--there are no new orders on the books. The negative outlook reflects S&P's view that Floatel's credit measures are likely to remain weak, given the difficult operating environment. Although S&P anticipates an improvement in credit metrics in 2017, it is concerned about the company's ability to regenerate its backlog by securing new contracts in 2018 and beyond. S&P could lower the ratings on Floatel by at least one notch if contracts were to be amended or cancelled to such an extent that S&P would not consider cash flow generation to be sufficient, leading to even higher leverage than in S&P's base case and an unsustainable capital structure. A liquidity squeeze and covenant constraints could also weigh on the rating, although as a result of the financing structure for the new vessel and the covenant reset, S&P anticipates that Floatel will have sufficient leeway for at least the next 12 months. The lack of new contracting activity in the first half of 2017, combined with S&P's view that debt to EBITDA would remain above 7x in 2018 and thereafter, could lead to a downgrade. Any debt repurchase offer or similar offers could also put pressure on the rating. S&P would likely revise its outlook to stable if it saw substantial improvement in the company's operations and cash generation prospects, supported by new long-term contracts for its units. This would require improved visibility over 2018 earnings and a stable or improving backlog trend. A reduction in debt over the course of 2017 could also lead to an outlook change. This could happen if S&P was to anticipate debt to EBITDA approaching 5x toward year-end 2017, with good prospects for maintaining such leverage over the mid-term. =========== B R A Z I L =========== BRASKEM SA: Payment of BRL3.1BB in Fines Credit Neg., Moody's Says ------------------------------------------------------------------ Moody's Investors Service comments that the leniency agreement Braskem S.A. (Ba1 negative) signed on December 14 with Brazilian federal prosecutors over certain corruption charges in the context of Lava Jato investigations is credit negative, as it will impact Braskem's liquidity in the short-term. Under the settlement, Braskem accepts fines totaling USD957 million (BRL3.1 billion), with about BRL1.6 billion to be paid at the homologation of the agreements, and the remaining balance in 6 annual installments. GAFISA S/A: Moody's Puts B2 CFR on Review for Downgrade ------------------------------------------------------- Moody's America Latina has placed Gafisa S/A's B2 (global scale) and Ba2.br (national scale rating) corporate family ratings and all related ratings on review for downgrade. The rating action follows the announcement of the sale of 50% of Construtora Tenda S.A. ("Tenda", unrated) for a total deal value of up to BRL 320 million and the spin-off of the remaining 50% to Gafisa's shareholders. The review process will focus on the resulting capital structure at Gafisa after the conclusion of the spin-off of the Tenda business unit and on Gafisa's credit metrics on a standalone basis. Ratings placed on review for downgrade: Issuer: Gafisa S/A ("Gafisa") -- Corporate Family Rating: B2 (global scale); Ba2.br (national scale) -- BRL600 million (BRL492 million outstanding) secured debentures due in 2017 (7th Issuance): B2 (global scale); Ba2.br (national scale) -- BRL70 million (BRL62 million outstanding) secured debentures due in 2024 (10th Issuance): B2 (global scale); Ba2.br (national scale) RATINGS RATIONALE The review process of Gafisa's ratings was prompted by the announcement of the sale of 50% of the Tenda unit for a potential deal value of up to BRL 320 million and the spin-off of the remaining 50% to Gafisa's shareholders. The transaction includes (i) the distribution of 50% of Tenda's shares to Gafisa's current shareholders; (ii) the sale of up to 30% of Tenda's shares to Jaguar Real Estate Partners, LP ("Jaguar", a subsidiary of Jaguar Growth Asset Management, LLC, unrated) for BRL 231.7 million -- of which BRL 131.7 million will be received in cash until the end of the second quarter of 2017 and BRL 100 million will be received from a capital reduction at Tenda (BRL 50 million will be received in December 2018 and BRL 50 million in December 2019, both adjusted by the Selic rate); and (iii) the offer of an additional 20% stake of Tenda to Gafisa's shareholders at similar conditions to those offered to Jaguar, which could bring additional BRL 88 million in proceeds, depending on investor's adherence. The deal is still subject to certain approvals and conditions including a capital reduction at Tenda, the distribution of 50% of Tenda's shares to Gafisa's shareholders and the conclusion of the exercise of the preemptive rights of Gafisa's shareholders to acquire up to 50% of Tenda's shares. Accordingly, the review process will focus on the final structure of the transaction and its impacts on Gafisa's capital structure, credit metrics and operating profile after the sale, in particular to the company's ability to generate sufficient cash at the Gafisa unit to cover debt maturing over the next 12-18 months. Even though pro forma to this transaction Gafisa's standalone cash balance could increase by up to BRL 320 million, the company would still need to address short term debt maturities of BRL 948 million (including project loans that will be paid upon the successful mortgage take-out of receivables from completed units) with a lower operating asset base. In this sense, further improvement in liquidity and in the corporate debt maturity profile would depend on liability management initiatives or additional liquidity events throughout 2017. Also, Tenda's projects rely on financing loans that include the anticipated take out of receivables during construction, which reduces pressure on working capital and financial leverage. As such, the review process will also focus on Gafisa's cash flow generation on a standalone basis and the resulting impact on the company's liquidity profile. In addition, the sale of Tenda evidences Gafisa's continued downsizing and reduces its product and price point diversity, increasing some of the risks associated with localized down cycles, and limiting additional opportunity for market share expansion and revenue growth over the medium term. Headquartered in Sao Paulo, Brazil and founded in 1954, Gafisa is one of the largest fully integrated homebuilders in the country and one of the most diversified companies through its subsidiaries Tenda and a 30% interest in the capital of Alphaville. The company is currently present in 120 cities, mainly in the states of Sao Paulo and Rio de Janeiro and virtually all price segments. During the last twelve months ended September 30, 2016, Gafisa reported net revenues of BRL2.0 billion (USD 548 million) and net loss of BRL163 million (USD 45 million). MAPPIN LOJAS: Wins U.S. Recognition of Brazilian Proceedings ------------------------------------------------------------ Carolina Bolado, writing for Bankruptcy Law360, reported that the trustee of Mappin Lojas de Departamento SA got a green light from Florida Bankruptcy Judge Robert A. Mark to chase assets of the company's owner, who he claims drained its coffers to fund a lavish lifestyle, first in London and now in Miami Beach. In a ruling from the bench, Judge Mark approved the Chapter 15 proceeding of Mappin Lojas de Departamento SA and two affiliated companies -- Mappin Telecomunicacoes Ltda. and Casa Anglo Brasileira -- and granted a preliminary injunction. About Mappin Lojas Massa Falida de Mappin Lojas de Departamento S.A., Mappin Telecomunicoes Ltda. and Casa Anglo Brasileira S.A., sought protection under Chapter 15 of the Bankruptcy Code (Bankr. S.D. Fla. Case Nos. 16-25541 to 16-25543) on Nov. 20, 2016, seeking recognition in the U.S. courts of an insolvency proceeding in Brazil that started more than 15 years ago. Afonso Henrique Alves Braga, the court-appointed trustee responsible for foreign asset recovery and duly-authorized foreign representative of the Debtors, filed the petitions. The Chapter 15 cases are pending before Judge Robert A Mark. Kobre & Kim LLP serves as the petitioner's counsel. The Mappin chain of department stores was founded in 1774 in England. On Nov. 29, 1913, two brothers, Walter and Herbert Mappin, opened the first Mappin department store in Brazil. Mappin Telecomunicacoes is an affiliate of Mappin Lojas. Mansur indirectly owns Mappin Lojas and Mappin Telecomunicacoes through Casa Anglo. In July 1999, Mappin Lojas was placed into a formal Brazilian insolvency process by the Court of Justice of the State of Sao Paulo, Central Civil Court, 18th Civil Division pursuant to Brazilian Bankruptcy Decree-Law, number 7.661 of 1945 under the laws of the Federative Republic of Brazil. Subsequently, on March 23, 2000, the bankruptcy was extended to Mappin Telecomunicacoes and Casa Anglo. As disclosed in Court documents, the Debtors' fall into financial distress and eventually insolvency was widely suspected to have been the result of a fraud perpetrated by CEO Ricardo Mansur. Due to Mappin Lojas's failure to pay its debts as they fell due, a large number of creditors had petitioned for Mappin Lojas to be declared bankrupt and placed into insolvency proceedings. In October 1996, Mansur, a Brazilian businessman and bank owner, acquired Mappin Lojas and became its CEO. At that time, Mappin Lojas had approximately 9,000 employees and annual sales in excess of 1 billion Reais per year (approx. US$300,000,000). Mr. Braga concluded that Mansur had fraudulently misapplied assets based on among other evidence, a report from the Central Bank, which conclusion was corroborated by contemporaneous press coverage reporting that Mansur was a fraudster. On July 6, 2011, Mr. Braga applied to the Brazilian Court for an ex parte order, for among other relief, to pierce the corporate veil of the Debtors to hold Mansur and his assets personally liable for the debts of the Debtors pursuant to Article 50 of Law number 10.406, dated of 2.002, as amended. He also requested the Brazilian Court to reverse pierce the corporate veil of other, non-debtor entities owned and controlled by Mansur so that those assets would also be subject of the bankruptcy. Mr. Braga's application was granted by the Brazilian Court on Aug. 6, 2011. CEO's Extravagant Lifestyle According to Mr. Braga, despite the demise of the Debtors, Mansur continues to maintain an extravagant lifestyle through strategic asset planning and multiple relocations to avoid enforcement of his liability to Mappin creditors in the Brazilian Proceeding. "Despite being the majority shareholder and CEO of a company that had thrived for nearly a century in Brazil, only to become woefully insolvent after three years of his ownership and control, Mansur has continued to maintain a lavish lifestyle following the Debtors' demise," maintained Mr. Braga. Mr. Braga disclosed that following the commencement of the Brazilian Proceeding, Mansur relocated to London, England, where he continued to lead an abundant lifestyle, which included living in a multi-million dollar house in Kensington and maintaining a polo center. Most recently, Mansur once again moved himself and his assets from London to Miami Beach, Florida, shortly before Mr. Braga obtained orders from the Chancery Division of the English High Court that enabled him to commence an asset recovery campaign against Mansur in the UK. On Aug. 12, 2011, following shortly upon the issuance of the Aug. 6, 2011, Veil Piercing Order, the Brazilian Court issued an order authorizing Mr. Braga to take action abroad to identify and retrieve the assets of the Debtors' estate. On May 14, 2015, Mr. Braga applied to the UK Court to open proceedings to have the Brazilian Proceeding recognized under Article 15 of the UNCITRAL Model Law on Cross-Border Insolvency as adopted into UK law in Schedule 1 to the Cross-Border Insolvency Regulations 2006. On July 6, 2015, the UK Court recognized the Brazilian Proceeding under Articles 15 and 17 of the CBIR, and entrusted Mr. Braga with the administration, realization and distribution of the Debtors' assets located in the UK. Brazilian Proceeding Based on the last report from Dr. Nelson Carmona, the court-appointed trustee responsible for the local asset recovery in Brazil, dated as of Jan. 28, 2016, at least 1,092 claims against Mappin have been admitted to proof in the sum of R$361,538,176 (approximately US$109,226,035). Of this sum, R$51,123,805 or US$15,445,258 of the total debt was already paid by the estate, leaving a balance of R$310,414,371 (approximately US$93,780,776) yet to be paid. Mr. Carmona is still considering claims which have been made by other ordinary unsecured creditors of Mappin. In addition, Mr. Carmona has been considering the claims submitted by the Brazilian tax authorities. Those claims, if admitted, will have preferential status. At a minimum, these are worth R$350,000,000 (approximately US$105,740,181). The total of the estimated debts of Mappin are, at a minimum, therefore, approximately R$700,000,000 (approximately US$211,480,000). The value of the assets of Mappin collected by the Trustees in Bankruptcy to date is approximately R$131,123,805 (approximately US$39,614,442). As such, the total of the estimated debts of the Debtors are, at a minimum, approximately R$380,000,000 (approximately US$114,803,625). By contrast, the value of the assets of the Debtors collected by the Trustees in Bankruptcy to date is approximately R$131,123,805 (approximately US$39,614,442). "The prospect of any further substantial recovery becoming available to the Debtors' creditors is largely dependent upon finding and retrieving valuable assets outside of Brazil that I have the right to recover for the benefit of the Debtors' Estate and their creditors," said Mr. Braga. "To that end, the value I will be able to realize post-recognition on behalf of the Debtors' creditors and Brazilian liquidation estate is highly dependent upon preventing Mansur from transferring assets in this District outside of the territorial jurisdiction of the United States following notice of these proceedings," he continued. Accordingly, Mr. Braga is seeking pre- and post-recognition relief entrusting him with the administration and realization of all assets of the Debtors located in the United States and suspending the right of Mansur or anyone else to transfer, encumber or otherwise dispose of any such assets. Mr. Braga is asking the Bankruptcy Court to recognize and enforce the Brazilian Court's Veil Piercing Order, and confirm that all assets within the territorial jurisdiction of the United States that are owned by Mansur are "assets of the debtor" that can and should be entrusted to Plaintiff for the benefit of the Debtors' Brazilian liquidation estate. ========================== C A Y M A N I S L A N D S ========================== EMERGING MARKETS: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Emerging Markets (Quantitative) Offshore Ltd received on Dec. 15, 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 DIRECT STRATEGIES: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Direct Strategies (Quantitative) Offshore L Holdings Ltd received on Dec. 15, 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 FRIENDOU INTERNATIONAL: Shareholders' Meeting Set for Dec. 22 ------------------------------------------------------------- The shareholders of Friendou International Inc. will hold their final meeting on Dec. 22, 2016, at 11:00 a.m., to receive 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 Telephone: (345) 949-9710 #31 The Strand 46 Canal Point Drive P.O. Box 2075 Grand Cayman KY1-1105 Cayman Islands GINGER CAPITAL: Shareholders' Final Meeting Set for Dec. 22 ----------------------------------------------------------- The shareholders of Ginger Capital Multi-Strategies Fund, Inc. will hold their final meeting on Dec. 22, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michael Wai-Kwong Chan c/o Richard Bennett Telephone: +852 3656 6069 Facsimile: +852 3656 6001 GINGER CAPITAL FEEDER: Shareholders' Final Meeting Set for Dec. 22 ------------------------------------------------------------------ The shareholders of Ginger Capital Multi-Strategies Offshore Feeder Fund, Inc. will hold their final meeting on Dec. 22, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michael Wai-Kwong Chan c/o Richard Bennett Telephone: +852 3656 6069 Facsimile: +852 3656 6001 GOLDMAN SACHS: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Goldman Sachs Direct Strategies Quantitative Fund Offshore, Ltd. received on Dec. 15, 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 HEARTSTRINGS FUND: Shareholder to Hear Wind-Up Report on Jan. 11 ---------------------------------------------------------------- The sole shareholder of Heartstrings Fund will hear on Jan. 11, 2017, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jeffrey Stower c/o Georgina Williams P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands Telephone: +1 (345) 914-4398/ +1 (345) 949-4800 Facsimile: +1 (345) 949-7164 MULLER CAPITAL: Shareholder to Hear Wind-Up Report on Dec. 22 ------------------------------------------------------------- The sole shareholder of Muller Capital will hear on Dec. 22, 2016, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ka Ho Wong c/o Richard Bennett Telephone: +852 3656 6069 Facsimile: +852 3656 6001 NAVISTAR SPECIAL: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Navistar Special Situation Fund, Ltd. received on Dec. 14, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: James MacFee c/o Estera Trust (Cayman) Limited Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands Telephone: +1 (345) 640 0540 RGM TRADING: Shareholder Receives Wind-Up Report ------------------------------------------------ The shareholder of RGM Trading International Limited received on Dec. 14, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: RGM Trading, LLC c/o Jody Powery-Gilbert 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 SPROTT OFFSHORE: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Sprott Offshore Fund, Ltd. received on Dec. 13, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Samgenpar, Ltd. c/o Joanne Huckle Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 SPROTT OFFSHORE II: Shareholder Receives Wind-Up Report ------------------------------------------------------- The shareholder of Sprott Offshore Fund II, Ltd. received on Dec. 13, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Samgenpar, Ltd. c/o Joanne Huckle Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 SUNFUN INFO: Shareholders' Final Meeting Set for Dec. 22 -------------------------------------------------------- The shareholders of Sunfun Info Co., Ltd. will hold their final meeting on Dec. 22, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Chang, Li No.7, Aly. 7, Ln. 197, Shangren St. Xinfeng Township, Hsinchu County 304 Taiwan (R.O.C.) =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Power Firms 'Lose US$250.0MM' on Upfront Taxes ------------------------------------------------------------------ Dominican Today reports that Dominican Republic's power companies grouped in ADIE expressed concern to the Government over the advance payment mechanism for the selective fuel tax, with ensuing losses of US$250.0 million per year on, hobbling their cash flow, fuel purchases, operating expenses and compliance with other tax obligations. The sector's fear that the system to reimburse the tax created by Executive Order 275-16 will not work is reflected in at least four letters sent to the Government officials in charge of the fiscal, revenue, economic and electricity areas, according to Dominican Today. The Finance Ministry has responded to ADIE's concern, promising a fast draw back mechanism within 10 days. But the ADIE considers that the procedures established in the executive order are complicated and could lead to repayment hurdles, with which the power companies risk illiquidity, the report notes. The Executive Order creating the selective fuel tax reimbursement system was issued on November 9, 2012, to comply with the Law that seeks to improve the government's tax-collecting capacity, the report relays. "Regarding the mechanism to follow for taxpayers to submit a claim, the decree establishes a definitive approval and eventual rectification, after reimbursement," says a December 2, 2016, letter from Finance minister Donald Guerrero to ADIE president Roberto Herrera, quoted by listin.com.do, the report relays. The missive respond to previous letter dated November 21, 2016, Herrera had communicated to Guerrero, with a copy to other officials of the economy and the electric sector, the material impossibility of ADIE companies to assume the advance payment of the tax on fossil fuels and petroleum products, in accordance with Executive Order 275-16, the report adds. "We don't have the financial resources to comply with this commitment", since each month, ADIE says, "We commit our capital in the advance payment of other taxes." As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Fitch Ratings has taken the following rating actions on the Dominican Republic: -- Long-Term Foreign Currency Issuer Default Rating (IDR) upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Senior unsecured Foreign and Local Currency bonds upgraded to 'BB-' from 'B+'; -- Short-Term Foreign Currency IDR affirmed at 'B'; -- Short-Term Local Currency IDR affirmed at 'B'. DOMINICAN REPUBLIC: Fungus Threatens Banana Crops ------------------------------------------------- Dominican Today reports that after the National Association of Agricultural Professionals (ANPA) warned that Black Sigatoka is posing a threat to thousands of south region banana plantations, Agriculture minister Angel Estevez has called the situation controllable and normal. "There's absolutely nothing to worry about," Estevez said, quoted by diariolibre.com. "Every time there's a lot of rain the fungus multiplies, but once the rain falls, it disappears," the official said, according to Dominican Today. The report notes that Mr. Estevez noted that Black Sigatoka, (Mycosphaerella fijiensis), is a disease that has been in the Dominican Republic for many years. Mr. Estevez said technicians will start distributing a fungicide to control it and affirmed that they are already working to deliver it to affected farmers, the report relays. Mr. Estevez added that there shouldn't be concern of shortages. "There's banana by the bundles here to sustain the entire national population and to spare, in four or five months we will have the country planted again," the report notes. As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Fitch Ratings has taken the following rating actions on the Dominican Republic: -- Long-Term Foreign Currency Issuer Default Rating (IDR) upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Senior unsecured Foreign and Local Currency bonds upgraded to 'BB-' from 'B+'; -- Short-Term Foreign Currency IDR affirmed at 'B'; -- Short-Term Local Currency IDR affirmed at 'B'. =========== G U Y A N A =========== * GUYANA POWER: Workers on Strike, Demands Higher Wage ------------------------------------------------------ Trinidad Express reports that workers with the Guyana Power and Light (GPL) began strike action in support of their demands for higher wages. The workers, represented by the National Association of Agricultural, Commercial and Industrial Employees (NAACIE), are seeking an eight per cent wage increase, while the company is offering a two per cent wage hike, according to Trinidad Express. NAACIE President, Kenneth Joseph told the Guyana-based on line publication, Demerara Waves Online News, that the union did not call the strike, the report notes. "Whenever the workers feel to stop the strike, it is their decision. It is not a strike that the union called, it was the workers who took the matter in their own hands," he said, adding that the union was willing to negotiate even lower than the eight percent, the report notes. "We are willing to negotiate even that." The lowest paid worker earns a gross salary of GUY$60,000 (One Guyana dollar = US$0.004 cents), the report relays. The strike action comes as consumers experience several blackouts during the Christmas Season, the report adds. ============= J A M A I C A ============= DIGICEL GROUP: Cutting Costs ---------------------------- RJR News reports that Digicel Group has embarked on a cost-cutting plan. One financial analyst has expressed doubt, however, about the likely impact on the company, according to RJR News. The Irish Times newspaper reported that Digicel Group has hired financial consultants McKinsey and Goetzpartners to help cut its massive debt burden as the mobile phone group grapples with declining earnings, the report notes. Michael Chakardjian, an analyst with US credit research firm, CreditSights, said at a conference in London that Digicel's EUR6.2 billion debt is at an unsustainable high level at six times the earnings of the group. Mr. Chakardjian also said the company's cost-cutting plan was ambitious and it faces near-term refinancing risks, the report relays. Digicel said that it disagreed with the conclusions and has a positive outlook, the report notes. Mr. Chakardjian said Digicel's cost-cutting plan, known as Project Swan, includes changing internal process and structure, such as back office functions as well as technology and management, has never sought to extract savings from these measures before, the report discloses. Mr. Chakardjian said Digicel's debt level is so high that it has no equity cushion and this gives it little wiggle room for poor performance, the report notes. The Irish Times reported on November 30 that Digicel executives had pitched a plan to investors and analysts earlier that month to cut its debt ratio by March 2019, the report relays. Digicel, which operates in 32 markets in the Caribbean and South Pacific regions, is in the middle of a third year of earnings decline, with its latest quarterly figures, to the end of September, hit particularly by currency weakness in several of its markets, the report adds. As reported in the Troubled Company Reporter-Latin America on May 27, 2016, Fitch Ratings has affirmed the ratings of Digicel Group Limited (DGL) and its subsidiaries Digicel Limited (DL) and Digicel International Finance Limited (DIFL), collectively referred to as 'Digicel' as follows. DGL -- Long-Term Issuer Default Rating (IDR) at 'B'; Stable Outlook; -- $US 2.0 billion 8.25% senior subordinated notes due 2020 at 'B-/RR5'; -- $US 1 billion 7.125% senior unsecured notes due 2022 at 'B-/RR5'. DL -- Long-Term IDR at 'B'; Stable Outlook; -- $US 250 million 7% senior notes due 2020 at 'B/RR4'; -- $US 1.3 billion 6% senior notes due 2021 at 'B/RR4'; -- $US 925 million 6.75% senior notes due 2023 at 'B/RR4'; DIFL -- Long-Term IDR at 'B'; Stable Outlook; -- Senior secured credit facility at 'B+/RR3'. The Rating Outlook is Stable. =========== M E X I C O =========== * MEXICO: Central Bank Hikes Interest Rate by More Than U.S. Fed ---------------------------------------------------------------- Reuters reports that Mexico's central bank raised it benchmark interest rate on Dec. 15, outgunning the U.S. Federal Reserve in a bid to cool quickening inflation after Donald Trump's U.S. election win took the peso to record lows. The Banco de Mexico hiked interest rates by 50 basis points to 5.75 percent, more than the median forecast by a Reuters poll of economists, according to Reuters. ======= P E R U ======= BANCO INTERNACIONAL: S&P Raises Rating on Sub. Debt to 'BB+' ------------------------------------------------------------ S&P Global Ratings raised its long-term issuer credit rating on Banco Internacional del Peru-Interbank (Interbank) to 'BBB' from 'BBB-'. At the same time, S&P revised the bank's SACP to 'bbb-' from 'bb+'. S&P has also raised its ratings on the bank's subordinated debt to 'BB+' from 'BB-'. The two notch upgrade on the subordinated debt is because the SACP on the bank is now investment grade. S&P raised the ratings and revised upward its SACP on Interbank mainly because it has consistently strengthened its capitalization, in S&P's view, due to sound internal capital generation, while it maintains solid asset quality metrics. "We now estimate the bank's risk-adjusted capital (RAC) ratio before diversification and concentration adjustments at about 7.3% in the next 18-24 months. Our RAC projections for Interbank incorporate our assumption of loan growth of about 6% in 2016 and 15% in 2017, relatively stable net interest margins (NIMs), low expense growth in 2016 due to cost-cutting initiatives, significantly lower trading gains than in 2015, and slightly higher provisions resulting in stable profitability metrics. We expect an increase in market risk charges in line with what we saw in September 2016 and a dividend payout ratio of about 45% of net income. The bank's quality of capital is healthy, with total adjusted capital consisting of common equity and earnings quality as sound. Net interest income accounted for about 80% of operating revenue and banking fees for about 8% as of September 2016, levels which have been fairly stable in the past three years. The rating on Interbank's subordinated debt is now two notches below the credit rating because the starting point for notching is the bank's 'bbb-' SACP, and we deduct one notch for subordination because SACP is now investment grade," S&P said. The rating on Interbank reflects its adequate business position as the fourth-largest financial institution in Peru with a special focus on retail lending with a market share in terms of loans and deposits of 11.2% and 11.9% as of September 2016, respectively. The rating also reflects the bank's adequate capital and earnings with a forecasted RAC ratio of about 7.3%; adequate risk position with asset quality metrics in line with the industry with nonperforming loans to total loans of about 2.59% and net charge- offs of 2.57% as of September 2016; average funding with a stable funding ratio of 124.6% and adequate liquidity with broad liquid assets 3.6x, which is also in line with the industry average. The rating on the bank also reflects one-notch uplift due to government support. S&P believes there's a moderately high likelihood that the government would provide extraordinary and timely support to Interbank in the case of credit stress. The credit rating on Interbank is now two notches above the corporate credit rating on the bank's ultimate parent, Intercorp Peru Ltd. (BB+/Stable/--). However, S&P believes that Interbank is insulated from its ultimate parent because it's a regulated entity and S&P expects the financial regulator to intervene to protect the subsidiary if the parent is under financial stress. Capital reductions require regulatory approval and there are limits on related party exposures. *********** 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 commercial 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 * * *