/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130722.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 Monday, July 22, 2013, Vol. 14, No. 143 Headlines A N T I G U A & B A R B U D A LIAT: Caribbean Dev't OKs US$65MM Loan for Purchase of Aircraft A R G E N T I N A * BUENOS AIRES: Fitch Affirms 'B-' Long-Term Currency Ratings * ARGENTINA: IMF Should Ask U.S. to Review Case B A R B A D O S * BARBADOS: S&P Revises Outlook to Negative & Affirms 'BB+' Rating B E R M U D A ARNOLD'S EXPRESS: Closes Central Hamilton Outlet C A Y M A N I S L A N D S ADEIM LIMITED: Creditors' Proofs of Debt Due Aug. 5 CONSOLIDA: Commences Liquidation Proceedings BMB TECHNOLOGY: Creditors' Proofs of Debt Due Aug. 31 ELMORE AMSA: Creditors' Proofs of Debt Due Aug. 14 HELIUM LIMITED: Creditors' Proofs of Debt Due Aug. 14 INUIT INVESTMENTS: Creditors' Proofs of Debt Due Aug. 15 LOVAT FUNDING: Creditors' Proofs of Debt Due Aug. 12 MARATHON BAJA: Creditors' Proofs of Debt Due Aug. 16 MISERO INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 15 MMIP INTERNATIONAL: Court to Hear Wind-Up Petition on Aug. 7 MONASTERY INVESTMENT: Creditors' Proofs of Debt Due Aug. 15 MOUSETRAP INVESTMENT: Creditors' Proofs of Debt Due Aug. 15 THAMES RIVER: Creditors' Proofs of Debt Due Aug. 15 USISSIMO LIMITED: Creditors' Proofs of Debt Due Aug. 30 VINTRY FUNDING: Creditors' Proofs of Debt Due Aug. 12 C O S T A R I C A BANCO NACIONAL: Fitch Affirms 'BB+' Issuer Default Ratings J A M A I C A UC RUSAL: Brady Corp to Manage Risk Management Requirements V I R G I N I S L A N D S PIONEER FREIGHT: Files For Ch. 15 In New York V E N E Z U E L A * Venezuela's Foreign Exchange Policy Faces Challenges, Fitch Says X X X X X X X X * BOND PRICING: For the Week From July 15 to 19, 2013 - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Caribbean Dev't OKs US$65MM Loan for Purchase of Aircraft --------------------------------------------------------------- Caribbean360.com reports that Leeward Islands Air Transport, known as LIAT, said the Barbados-based Caribbean Development Bank (CDB) is providing US$65 million in loans to the four shareholder governments of the company. LIAT said the loan, approved on July 18, to Antigua and Barbuda, Barbados, St. Vincent and the Grenadines, and Dominica will assist with the purchase of aircraft in the context of a fleet modernization project, according to Caribbean360.com. The report notes that LIAT said the loan agreements "provide for the loans to be on lent-to and repaid by LIAT over a 13-year period following a grace period of two years". The report relates that it said co-financing for the project is being provided by shareholder equity contributions and from the sale of LIAT's existing aircraft. The report says that the fleet modernization project involves the replacement of LIAT's aging fleet through a combination of lease and purchase of aircraft; the transition costs associated with the changeover; the upgrade of maintenance facilities and other institutional strengthening activities. "The project provides LIAT with the most cost-effective means of improving the reliability of its service and consequently its contribution to the socio-economic development of the region. It will have significant impact on the operational efficiency and financial performance of the airline. Realization of these results will require the involvement of all stakeholders," LIAT said, the report says. "This project is consistent with CDB's strategic objective of supporting regional cooperation and integration and contributes to CDB's overall mandate of reducing poverty in the region through social and economic development," the airline said in its statement obtained by the news agency. As reported in the Troubled Company Reporter-Latin America on Jan. 3, 2012, Antigua Caribarena related that former Antigua Aviation Minister Robin Yearwood wants to see a merger between Leeward Islands Air Transport (LIAT) and the Trinidad and Tobago- owned Caribbean Airlines Limited, as he believes this is the only way the Antigua-based regional carrier can survive. Mr. Yearwood's call came against the background of media reports out of Port of Spain that suggested CAL's management may be eyeing expansion into the OECS territories, according to Antigua Caribarena. About LIAT Headquartered in V. C. Bird International Airport in Saint George Parish, Antigua, Leeward Islands Air Transport, known as LIAT, operates high-frequency interisland scheduled services serving 22 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. ================= A R G E N T I N A ================= * BUENOS AIRES: Fitch Affirms 'B-' Long-Term Currency Ratings ------------------------------------------------------------- Fitch Ratings has affirmed the ratings on the City of Buenos Aires (the CBA) as follows: -- Long-term foreign and local currency ratings at 'B-'; -- Short-term and local currency short-term ratings at 'B' -- National long-term rating at 'AA(arg); -- National short-term rating at 'A1+(arg)'. The Rating Outlook on the long-term ratings is Negative. In addition, Fitch has affirmed the outstanding issues of the CBA. Key Rating Drivers The fiscal and budgetary performance of the City of Buenos Aires (CBA) is adequate, with certain stability in the generation of sound operating margins over the last years. Despite the slowdown in revenues and a context of prevailing pressures on the operating expenditures' side, at year-end 2012 the city recorded a good operating margin of 11%, slightly lower than that reached at year- end 2011 (12.8%). Fitch expects that this operating margin level will be sustained in 2013. The CBA's a high financial flexibility; the 87.3% of total revenues are collected and administered locally. This shows a low reliance of the city's revenues on federal transfers, comparing very favorably with the provincial average (43%), although its revenue structure is exposed to economic fluctuations. Regarding debt, the data on CBA shows a low level of indebtedness. Despite the considerable nominal debt increase over the last years, leverage and sustainability ratios are still very adequate compared with peers. In 2012 the consolidated debt accounted for 20.9% of current revenues and 2.1x the current balance. Fitch expects the city's debt indicators will be adequate, even considering the use of the credit budgeted for 2013 and the new debt instruments issued in 2013. It is estimated that debt will represent 22% of the current revenues forecast for 2013 and 1.7x the current balance. The CBA is the country's major economic and financial center. In 2011 the city's contribution to Argentina's GDP reached 24.1%, mainly driven by the real estate and commerce sectors whose contributions to the City's GDP are proportionally higher than to the national GDP. Fitch does not expect significant changes in the city's production structure and its social and economic indicators. The main risk or limitations for CBA is the structure of debt. Despite the city's low level of indebtedness, its debt structure is largely composed of debt in foreign currency. In March 2013, foreign currency debt accounted for 96.5% compared to 95.5% in 2012 and 88.8% in 2011. This constitutes one of the major rating weaknesses given the high exposure to the foreign exchange rate risk. Rating Sensitivities CBA's Negative Outlook reflects a high correlation between the credit risk of subnationals and the sovereign. A sovereign downgrade might lead to negative rating action. In addition, a sharp deterioration in fiscal and financial indicators along with an aggressive and unsustainable borrowing policy might have an adverse impact on ratings. Fitch affirms the following ratings: Euro Medium-Term Note Programme (EMTN) up to USD1400 million: -- Series 7 for USD 50 million: long-term rating at 'B-'/'AA(arg)'; -- Series 8 for USD 475 million: long-term rating at 'B-'/'AA(arg)'; -- Series 10 for USD 415 million: long-term rating at 'B-'/'AA(arg)'. Financing in Local Market Programme up to USD501 million: -- Bonds Class 1 for USD 100 million: National Long-term at 'AA(arg)'; -- Bonds Class 2 for USD 85 million: National Long-term at 'AA(arg)'; -- Bonds Class 3 for USD 100 million: National Long-term at 'AA(arg)'; -- Bonds Class 4 for USD 216 million: National Long-term at 'AA(arg)'. -- Programme of Short-Term Treasury Bills up to ARP 950 million: Short-term rating at 'B'/'A1+(arg)'. The Outlook for the Long-term ratings is Negative. * ARGENTINA: IMF Should Ask U.S. to Review Case ----------------------------------------------- Joshua Goodman and Ryan Chilcote at Bloomberg News report that a U.S. court ruling against Argentina in a decade-old legal battle over its defaulted debt could have "detrimental consequences" for global financial stability, said Christine Lagarde, managing director of the International Monetary Fund. Ms. Lagarde said in Moscow that she'll recommend that the IMF's board ask the U.S. Supreme Court to review a lower court ruling ordering Argentina to pay investors who refused to exchange bonds after its 2001 default on $95 billion of debt, according to Bloomberg News. Bloomberg News notes that the friend-of-the-court brief to the high court wouldn't be aimed at helping Argentina, whom the IMF censured in February for providing inaccurate inflation data, Lagarde said after a meeting of Group of 20 finance chiefs in the Russian capital. It would rather serve to warn of how the ruling could bolster the power of minority bondholders in future debt restructurings, she said, Bloomberg News relates. "We're not supporting one party against the other. . . . We're simply alerting the court to the detrimental consequence that the finding would have on our ability to discharge our mandate, which is intended to maintain financial stability in the world," the report quoted Ms. Lagarde as saying. Bloomberg News relates that Argentina, a G-20 member, claims that a federal appeals court in New York was wrong when it ruled in October that investors in restructured Argentine debt can't be paid unless holders of the nation's defaulted bonds, led by billionaire Paul Singer's Elliott Management Corp. and its NML Capital Ltd. unit, are also paid. Last month it asked the U.S. Supreme Court to review lower court rulings, Bloomberg News says. Complex Case Bloomberg News discloses that Ms. Lagarde declined to discuss details of the Argentine case, which she described as complex, except to say that it's in the interest of creditors as a group to reach agreement with debtors in a manner that ensures debt sustainability and fairness among creditors. "Our concern is that the lower court's decision would undermine the ability of the debtors and creditors to reach an agreement . . . . In that respect it could be a threat to financial stability," Ms. Legarde said, Bloomberg News relays. =============== B A R B A D O S =============== * BARBADOS: S&P Revises Outlook to Negative & Affirms 'BB+' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on its long-term rating on Barbados to negative from stable. At the same time, S&P affirmed its 'BB+' long-term and 'B' short-term sovereign credit ratings on Barbados. The outlook revision reflects the potential for a downgrade if the wider fiscal deficit is not reversed or if external pressures associated withsaaaaaa persistent current account deficits mount. The net general government debt burden is expected to rise to above 70% of GDP in fiscal 2013 from 67% in fiscal 2012 and 60% in fiscal 2011. Barbados uses more than 13% of general government revenues to pay interest on its debt. Barbados' economic fundamentals continue to weaken, reflecting not only the tough global economy, but also competitiveness and other structural shortcomings. Barbados' narrow and open economy continues to suffer from the 2008 global financial crisis. Results for the first half of 2013 show that Barbados has fallen back into recession after a very weak recovery in 2010-2012, with average annual real GDP growth of just 0.4% in those years. S&P expects a real GDP decline of about 0.5% in 2013 and a slow recovery in 2014-2015 thanks to tourism and construction (in both the private and public sectors). With a slow recovery, unemployment will likely remain high, after reaching 11.8% in 2012. The government's large fiscal deficits and high debt burden, as well as its limited fiscal flexibility and reliance on external financing, constrain the ratings. However, the country has a stable, predictable, and mature political system, which benefits from consensus on major economic and social issues, including support from the private sector and trade unions for the government's ongoing fiscal and structural adjustment program. 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 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. RATINGS LIST Ratings Affirmed; Outlook Action Rating Rating To From Barbados Sovereign Credit Rating BB+/Negative/B BB+/Stable/B Transfer & Convertibility Assessment Local Currency BBB- Senior Unsecured BB+ ============= B E R M U D A ============= ARNOLD'S EXPRESS: Closes Central Hamilton Outlet ------------------------------------------------ Rebecca Zuil at Royal Gazette Online reports that the Arnold's Express on the corner of Church and Queen Streets has closed. Arnold's Markets had a total of eight food stores until the closure of their Central Hamilton premises, according to Royal Gazette Online. The report notes that the large pane-glass windows are papered over, but there are small posters on the glass announcing the closure, and also advertising for new space. Arnold's Markets still has three outlets in the Hamilton area. Arnold's Family Market is located on St John's Road, Arnold's Discount and Warehouse is on Ewing Street while Arnold's Express is on Court Street. ========================== C A Y M A N I S L A N D S ========================== ADEIM LIMITED: Creditors' Proofs of Debt Due Aug. 5 --------------------------------------------------- The creditors of Adeim Limited are required to file their proofs of debt by Aug. 5, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 18, 2013. 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 CONSOLIDA: Commences Liquidation Proceedings -------------------------------------------- On June 21, 2013, a written resolution was passed to voluntarily liquidate the business of Consolida. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Mark Z. Chiba The Longreach Group Limited Suite 1508, Alexandra House 18 Chater Road Central Hong Kong BMB TECHNOLOGY: Creditors' Proofs of Debt Due Aug. 31 ----------------------------------------------------- The creditors of BMB Technology and Telecommunications Investment Company are required to file their proofs of debt by Aug. 31, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 1, 2013. The company's liquidators are: Michael Pearson Christopher Rowland Fund Solution Services Limited Harbour Centre, 2nd Floor 42 North Church Street George Town, Grand Cayman 10 Market Street, #769 Camana Bay Grand Cayman KY1-9006 Cayman Islands Telephone: +1 (345) 947 5854 ELMORE AMSA: Creditors' Proofs of Debt Due Aug. 14 -------------------------------------------------- The creditors of Elmore Amsa Fund Limited are required to file their proofs of debt by Aug. 14, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 2, 2013. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler/Kim Charaman Telephone: (345) 943 3100 HELIUM LIMITED: Creditors' Proofs of Debt Due Aug. 14 ----------------------------------------------------- The creditors of Helium Limited are required to file their proofs of debt by Aug. 14, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 17, 2013. The company's liquidator is: Charles Gary Hepburn Wardour Management Services Limited Telephone: (345) 945 3301 Facsimile: (345) 945 3302 P O Box 10147, Grand Cayman KY1-1002 Cayman Islands INUIT INVESTMENTS: Creditors' Proofs of Debt Due Aug. 15 -------------------------------------------------------- The creditors of Inuit Investments Ltd. are required to file their proofs of debt by Aug. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 4, 2013. The company's liquidator is: MBT Trustees Ltd. Telephone: 945 8859 Facsimile: 949 9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands LOVAT FUNDING: Creditors' Proofs of Debt Due Aug. 12 ---------------------------------------------------- The creditors of Lovat Funding (Cayman) Limited are required to file their proofs of debt by Aug. 12, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 15, 2013. The company's liquidator is: Robin Lee Mcmahon c/o Mr. Barry MacManus Telephone +1 (345) 814 8997 Ernst & Young Ltd, 62 Forum Lane Camana Bay PO Box 510 Grand Cayman KY1-1106 Cayman Islands MARATHON BAJA: Creditors' Proofs of Debt Due Aug. 16 ---------------------------------------------------- The creditors of Marathon Baja Limited are required to file their proofs of debt by Aug. 16, 2013, to be included in the company's dividend distribution. The company's liquidator is: Y.R. Kunetka 5555 San Felipe St. Houston, Texas 77056 U.S.A. MISERO INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 15 ----------------------------------------------------------- The creditors of Misero International Ltd. are required to file their proofs of debt by Aug. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 2, 2013. The company's liquidator is: MBT Trustees Ltd. Telephone: 945 8859 Facsimile: 949 9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands MMIP INTERNATIONAL: Court to Hear Wind-Up Petition on Aug. 7 ------------------------------------------------------------ A petition to continue the liquidation of MMIP International Fund Limited will be heard before the Grand Court of the Cayman Islands on Aug. 7, 2013, at 10:00 a.m. The company's liquidator is: Stephen Doran Doran & Associates Crescent House, 4th Floor Hartstonge Street, Limerick Ireland; and Kenneth Krys Krys Global, Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue PO Box 31237, Grand Cayman KY1-1205 Cayman Islands MONASTERY INVESTMENT: Creditors' Proofs of Debt Due Aug. 15 ----------------------------------------------------------- The creditors of Monastery Investment Ltd. are required to file their proofs of debt by Aug. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 2, 2013. The company's liquidator is: MBT Trustees Ltd. Telephone: 945 8859 Facsimile: 949 9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands MOUSETRAP INVESTMENT: Creditors' Proofs of Debt Due Aug. 15 ----------------------------------------------------------- The creditors of Mousetrap Investment Ltd. are required to file their proofs of debt by Aug. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 2, 2013. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands THAMES RIVER: Creditors' Proofs of Debt Due Aug. 15 --------------------------------------------------- The creditors of Thames River Africa Focus Fund Limited are required to file their proofs of debt by Aug. 15, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 26, 2013. The company's liquidator is: David A.K. Walker c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands USISSIMO LIMITED: Creditors' Proofs of Debt Due Aug. 30 ------------------------------------------------------- The creditors of Usissimo Limited are required to file their proofs of debt by Aug. 30, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 28, 2013. The company's liquidators are: Stuart Brankin Desmond Campbell Telephone: (345) 949 5586 c/o Aston Corporate Managers, Ltd. P.O. Box 1981 Grand Cayman KY1-1104 Cayman Islands VINTRY FUNDING: Creditors' Proofs of Debt Due Aug. 12 ----------------------------------------------------- The creditors of Vintry Funding (Cayman) Limited are required to file their proofs of debt by Aug. 12, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 25, 2013. The company's liquidator is: Robin Lee Mcmahon c/o Mr. Barry MacManus Telephone +1 (345) 814 8997 Ernst & Young Ltd, 62 Forum Lane Camana Bay PO Box 510 Grand Cayman KY1-1106 Cayman Islands ================== C O S T A R I C A ================== BANCO NACIONAL: Fitch Affirms 'BB+' Issuer Default Ratings ---------------------------------------------------------- Fitch Ratings has affirmed Banco Nacional de Costa Rica's (BNCR) Issuer Default Ratings (IDRs) at 'BB+', Outlook Stable. The bank's Viability Ratings (VR) and National Ratings were also affirmed. KEY RATING DRIVERS - IDRS, NATIONAL RATINGS BNCR's IDR and National Ratings are aligned with Costa Rica's Sovereign Ratings (long-term Foreign and Local Currency IDR rated 'BB+', Stable Outlook by Fitch), considering the explicit sovereign guarantees for all state-owned banks stated in Costa Rica's Banking Law (Ley Organica del Sistema Bancario Nacional). The Outlook is Stable as Fitch does not anticipate substantial changes in BNCR's risk profile over the next two years. RATING SENSITIVITIES - IDRS, NATIONAL RATINGS As the bank's main shareholder is the Costa Rican government, changes in the IDRs and National Ratings are contingent on sovereign rating actions. KEY RATING DRIVERS - VR BNCR's VR balances its strong local franchise, ample funding and adequate capital ratios with its weak loan portfolio quality and modest performance, relative to similarly Fitch rated international peers (emerging market commercial banks with a VR between 'bb-'and 'bb+'). BNCR is the largest bank in the country and holds a dominant market position in several business lines. The bank also benefits from wide geographic coverage and a diversified deposits base. BNCR's profitability ratios are below its international peers' median, pressured by slower economic activity and lower interest rates. The bank's ability to adjust to these economic conditions is limited by its rigid operating expenses and above-average credit costs. Fitch expects profitability metrics to improve over 2013, driven by adjustments in the bank's funding costs and stronger credit growth. However, year-end results remain sensitive to credit costs because increased loan loss and foreclosed assets provisions could offset the favorable impact of the tax provision reversal registered during the first six months. RATING SENSITIVITIES - VR Upgrades in the bank's VR are unlikely over the next two years. A downgrade in BNCR's VR could be triggered by a material deterioration of the bank's asset quality metrics that includes a significant deterioration in the bank's loan portfolio quality (Past due loans-to-total loans ratio above the international peers' median) or an unforeseen increase in loan loss and other provision expenses that reduces the bank's capacity to sustain growth while maintaining its current capital ratios. Fitch has affirmed the following rating: International ratings -- Long-term IDR at 'BB+', Outlook Stable; -- Short-term IDR at 'B'; -- Long-term local currency IDR at 'BB+', Outlook Stable; -- Short-term local currency IDR at 'B'; -- Viability Rating at 'bb+'; -- Support Rating at '3'; -- Support Rating Floor at 'BB+'. National ratings: -- Long-term national rating at 'AA+(cri)', Outlook Stable; -- Short-term national rating at 'F1+(cri)'; -- Long-term senior unsecured bonds at 'AA+(cri)'; -- Commercial paper at 'F1+(cri)'. ============= J A M A I C A ============= UC RUSAL: Brady Corp to Manage Risk Management Requirements ----------------------------------------------------------- RJR News reports that Russian aluminum giant UC RUSAL which has a major stake in Jamaica's bauxite sector has contracted Brady Corporation, the largest European provider of trading and risk management software. The firm, which is a major supplier to the global commodity and energy markets, will manage UC Rusal's risk management requirements for its aluminum sales, according to RJR News. RJR News discloses that RUSAL was in search of a solution that could manage all of the risk resulting from its aluminum sales and provide its managers with a complete picture of its risk exposure and financial position in one place. The report relates that the company operates the Alpart and Kirkvine alumina refineries in Jamaica. UC Rusal has a stake in the Alpart and Kirkvine alumina refineries in Jamaica. * * * As reported in the Troubled Company Reporter-Latin America on April 25, 2013, RJR News reported that UC Rusal said its financial losses for 2012 were bigger than initially reported. The company has revised its net loss to US$337 million from the US$55 million US dollar loss reported the previous month, according to RJR News. The report related that UC Rusal said the adjustment was made after reviewing its share of profit from its subsidiary Norilsk Nickel. UC Rusal, the report added, said the adjusted financial statements have been reviewed by its auditor. TCRLA reported on Sept. 28, 2012, that RJR News said UC Rusal expects to reach a deal with its lenders within six months to refinance part of an US$11 billion debt burden. It said it will agree to new loan conditions by the end of 2012 before its covenant holiday expires, according to RJR News. ========================== V I R G I N I S L A N D S ========================== PIONEER FREIGHT: Files For Ch. 15 In New York --------------------------------------------- Lance Duroni of BankruptcyLaw360 reported that Pioneer Freight Futures Co. Ltd., a defunct British Virgin Islands-based firm that traded shipping futures, filed for Chapter 15 bankruptcy to help further its liquidation by tracking down any assets that it may have in the U.S. According to the report, in a petition filed in New York bankruptcy court, Mark Richard Byers and Mark McDonald, the two liquidators charged with winding down Pioneer Freight, asked the U.S. court to recognize the company's liquidation proceeding in the British Virgin Islands, which has been underway for three years. ================= V E N E Z U E L A ================= * Venezuela's Foreign Exchange Policy Faces Challenges, Fitch Says ------------------------------------------------------------------ Venezuela's foreign exchange (FX) policy adjustments in 2013 could reduce fiscal imbalances and limit the need of continued external debt issuance. However, the room to stabilize creditworthiness could be constrained by weaker external buffers, limited upside for oil revenues and non-debt capital inflows, a rapidly decelerating economy, and political changes, according to a new Fitch Ratings report. As a pillar of economic policy over the past 11 years, Venezuela's exchange rate regime continues to weigh on the country's creditworthiness. In March 2013 Fitch affirmed Venezuela's Long- Term Foreign-Currency IDR at 'B+' with a Negative Outlook, partly reflecting the debilitating impact of exchange rate policy and the opaque administration of oil revenues, on the sovereign fiscal and external credit metrics. 'Exchange and capital controls allow the authorities to prevent destabilizing balance-of-payment pressures from building and favor the sovereign's financing flexibility in the face of external shocks,' said Erich Arispe, Director in Fitch's Latin America Sovereign Group. 'However, these mechanisms have been costly in terms of growth and macroeconomic stability as Venezuela appears to be trapped in the low growth-high inflation environment. Moreover, the public sector's increased role in the administration and use of FX receipts has shifted the burden of BOP adjustment to the private sector.' The expansionary policy stance heavily influenced by the 2012 electoral cycle and the costs of the two-tier official exchange rate system have led the government to devalue the bolivar and revamp the official parallel market in 2013. The changes have been implemented slowly and have so far failed to improve the effectiveness and transparency of the government's FX policy. 'Venezuela's reduced level of international reserves, the limited prospects of further oil price increases or positive production shocks, and the reduced operational liquidity of international reserves limit the capacity of the authorities to increase the FX flow to the economy,' added Arispe. Politics have delayed and influenced the implementation of necessary adjustments and constrained policy options. The effectiveness of the changed FX regime in reducing inflation, boosting investment and growth prospects is unlikely to be significant in the near term. Ultimately, a tighter monetary and fiscal stance consistent with the peg and increased supply of FX to the economy are necessary to strengthen macroeconomic stability and improve growth prospects. Still high oil prices, combined with a manageable debt service schedule and government liquidity position, reduce imminent balance of payment and fiscal risks as well as near-term financing pressures, with this being reflected in Venezuela's current rating level. =============== X X X X X X X X =============== * BOND PRICING: For the Week From July 15 to 19, 2013 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- Argentine Republic Government 7.82 12/31/2033 EUR 56 International Bond Argentine Republic Government International Bond 7.82 12/31/2033 EUR 55.5 Argentine Republic Government International Bond 8.28 12/31/2033 USD 55 Provincia de Buenos Aires/Argentina 10.9 1/26/2021 USD 69.8 Argentine Republic Government International Bond 8.28 12/31/2033 USD 57.5 Provincia de Buenos Aires/Argentina 9.38 9/14/2018 USD 68.4 Empresa Distribuidora Y Comercializadora Norte 9.75 10/25/2022 USD 51 Banco Macro SA 9.75 12/18/2036 USD 67.8 Provincia de Buenos Aires/Argentina 9.63 4/18/2028 USD 63 Capex SA 10 3/10/2018 USD 71 Cia Latinoamericana de Infraestructura & Servicios SA 9.5 12/15/2016 USD 63 Cia de Transporte de Energia Electrica en Alta 8.88 12/15/2016 USD 47.6 Tension Transe Provincia de Mendoza Argentina 5.5 9/4/2018 USD 74 Argentine Republic Government International Bond 1.18 12/31/2038 ARS 43.7 Argentine Republic Government International Bond 8.28 12/31/2033 USD 55 Argentine Republic Government International Bond 7.82 12/31/2033 EUR 45 Cia de Transporte de Energia Electrica en 9.75 8/15/2021 USD 50 Alta Tension Transe Argentina Bocon 2 3/15/2014 ARS 32.5 Empresa Distribuidora Y Comercializadora Norte 9.75 10/25/2022 USD 50 Argentine Republic Government International Bond 4.33 12/31/2033 JPY 36.5 Argentine Republic Government International Bond 8.28 12/31/2033 USD 59.9 Cia de Transporte de Energia Electrica en 9.75 8/15/2021 USD 45.4 Alta Tension Transe MetroGas SA 8.88 12/31/2018 USD 65.5 Provincia de Buenos Aires/Argentina 10.9 1/26/2021 USD 70 Empresa Distribuidora Y Comercializadora Norte 10.5 10/9/2017 USD 51.3 Argentine Republic Government International Bond 4.33 12/31/2033 JPY 36 Banco Macro SA 9.75 12/18/2036 USD 67.8 City of Buenos Aires Argentina 3.98 3/15/2018 USD 68.6 Capex SA 10 3/10/2018 USD 67.6 Provincia de Buenos Aires/Argentina 9.38 9/14/2018 USD 68.8 Provincia de Buenos Aires/Argentina 9.63 4/18/2028 USD 63 MetroGas SA 8.88 12/31/2018 USD 63.4 Argentine Republic Government International Bond 0.45 12/31/2038 JPY 8 Banco Macro SA 9.75 12/18/2036 USD 67.8 Provincia de Mendoza Argentina 5.5 9/4/2018 USD 73.5 Provincia del Chaco 4 11/4/2023 USD 53.8 Provincia del Chaco 4 12/4/2026 USD 25.5 Formosa Province of Argentina 5 2/27/2022 USD 61.9 Argentine Republic Government International Bond 8.28 12/31/2033 USD 61.8 Cia Energetica de Sao Paulo 9.75 1/15/2015 BRL 64.6 Gol Finance 8.75 USD 60 Banco Bonsucesso SA 9.25 11/3/2020 USD 73.5 Sifco SA 11.5 6/6/2016 USD 50.3 Gol Finance 8.75 USD 58.3 Banco Bonsucesso SA 9.25 11/3/2020 USD 72.5 Cia Sud Americana de Vapores SA 6.4 10/1/2022 CLP 69.8 Almendral Telecomunicaciones SA 3.5 12/15/2014 CLP 33 Cia Cervecerias Unidas SA 4 12/1/2024 CLP 58.2 Aguas Andinas SA 4.15 12/1/2026 CLP 72.5 Quinenco SA 3.5 7/21/2013 CLP 12.9 Talca Chillan Sociedad Concesionaria SA 2.75 12/15/2019 CLP 60.8 Empresa de Transporte de Pasajeros Metro SA 5.5 7/15/2027 CLP 4.58 Hidili Industry International Development Ltd 8.63 11/4/2015 USD 71.5 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 62.8 Renhe Commercial Holdings Co Ltd 11.8 5/18/2015 USD 63.1 China Forestry Holdings Co Ltd 10.3 11/17/2015 USD 37 JinkoSolar Holding Co Ltd 4 5/15/2016 USD 66.3 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 56 Hidili Industry International Development Ltd 8.63 11/4/2015 USD 71.8 Renhe Commercial Holdings Co Ltd 11.8 5/18/2015 USD 63.8 China Forestry Holdings Co Ltd 10.3 11/17/2015 USD 37 BES Finance Ltd 5.58 EUR 65.5 Bank Austria Creditanstalt Finance Cayman Ltd 1.61 EUR 49.7 ERB Hellas Cayman Islands Ltd 1.8 6/8/2017 EUR 55.2 Bank Austria Creditanstalt Finance Cayman Ltd 2 1.84 EUR 49.9 BCP Finance Co Ltd 5.54 EUR 41.7 ESFG International Ltd 5.75 EUR 50.8 BCP Finance Co Ltd 4.24 EUR 42.8 BES Finance Ltd 3.03 EUR 74.3 Banco Finantia International Ltd 2.46 7/26/2017 EUR 44.1 BES Finance Ltd 4.5 EUR 56.4 Caixa Geral De Depositos Finance 1.02 EUR 34.7 BCP Finance Bank Ltd 5.31 12/10/2023 EUR 66.3 ERB Hellas Cayman Islands Ltd 9 3/8/2019 EUR 31.9 Banif Finance Ltd 1.58 EUR 44 BCP Finance Bank Ltd 5.01 3/31/2024 EUR 63.5 Banco BPI SA/Cayman Islands 4.15 11/14/2035 EUR 41.6 Petroleos de Venezuela SA 5.38 4/12/2027 USD 60.2 Venezuela Government International Bond 7 3/31/2038 USD 67.3 Petroleos de Venezuela SA 5.5 4/12/2037 USD 58.8 Venezuela Government International Bond 7.65 4/21/2025 USD 74.6 Venezuela Government International Bond 6 12/9/2020 USD 74.2 Bolivarian Republic of Venezuela 7 3/31/2038 USD 66.8 *********** 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. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. 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, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2013. 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 202-241-8200. * * * End of Transmission * * *