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/raid1/www/Hosts/bankrupt/TCRLA_Public/140122.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, January 22, 2014, Vol. 15, No. 15 Headlines B R A Z I L ARALCO INDUSTRIA: S&P Lowers CCR to 'B-', Removes from CreditWatch OGX PETROLEO: Minority Bondholders to Battle Bankruptcy Plan C A Y M A N I S L A N D S CRABEL TWO: Shareholders Receive Wind-Up Report ENSIGN MUTUAL: Shareholder Receives Wind-Up Report FIFTH SQUARE: Shareholders Receive Wind-Up Report HCP BEIJING: Shareholders Receive Wind-Up Report HCP CRC: Shareholders Receive Wind-Up Report KROM RIVER FUND: Shareholders Receive Wind-Up Report KROM RIVER GENERAL: Shareholders Receive Wind-Up Report LASAIR OFFSHORE: Shareholder Receives Wind-Up Report PLATINUM NORDIC: Shareholder Receives Wind-Up Report PLATINUM RENAISSANCE: Shareholder Receives Wind-Up Report PRINCETON GLOBAL: Shareholders Receive Wind-Up Report QUADRUM INTERNATIONAL: Shareholder Receives Wind-Up Report QUADRUM MASTER: Shareholder Receives Wind-Up Report SEVEN BRAND: Shareholder Receives Wind-Up Report SPECTRA OPPORTUNITIES: Shareholder Receives Wind-Up Report SPECTRA OPPORTUNITIES MASTER: Shareholder Receives Wind-Up Report TRISTAN LIQUID: Shareholders Receive Wind-Up Report TRISTAN LIQUID MASTER: Shareholders Receive Wind-Up Report TRISTAN LIQUID PROPERTY: Shareholders Receive Wind-Up Report D O M I N I C A N R E P U B L I C XSTRATA NICKEL: We Need Guarantees to Continue, CEO Says * DOMINICAN REP: To Resume Egg, Chicken Exports to Haiti 'Soon' J A M A I C A * JAMAICA: Aluminum Glut Worrying for Local Industry T R I N I D A D & T O B A G O PETROLEOS DE VENEZUELA: Chamber Expects Firm to Schedule Payments - - - - - =========== B R A Z I L =========== ARALCO INDUSTRIA: S&P Lowers CCR to 'B-', Removes from CreditWatch ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its global scale corporate credit rating on Aralco Industria e Comercio S.A. (Aralco) to 'B-' from 'B' and removed it from CreditWatch where S&P placed it with negative implications on Oct. 28, 2013. S&P also lowered its Brazil national scale rating on the company to 'brB-' from 'brBBB-'. S&P lowered the issue-level rating on its $250 million bonds to 'CCC+'. The outlook on the corporate credit ratings is negative. The downgrade reflects Aralco's weaker-than-expected operating efficiency, which has led to negative free operating cash flow generation and has pressured its liquidity--which S&P now views as weak--while it has increased its refinancing risk. Moreover, the Brazilian sugarcane producer will crush significantly less volume than originally expected (down to five million tons from six million tons) due to low raw material availability. The high idle capacity (exceeding 30%) and low productivity (about 70 tons of cane per hectare) have led S&P to revise its assessment of the company's business risk profile from "fair" to "weak." The company's inability to start paying off its secured debt after the bond issuance in the first quarter of the 2013/2014 harvest and the limited likelihood that it will begin to do so, has lead S&P to lower the rating on Aralco's bonds, as total debt secured by real assets represents more than 22% of its total assets as of Sept. 30, 2013. OGX PETROLEO: Minority Bondholders to Battle Bankruptcy Plan ------------------------------------------------------------ Law360 reported that minority bondholders of OGX Petroleo e Gas Participacoes SA, the large Brazilian oil firm that went bankrupt in October, are preparing to fight the company's proposal to exit insolvency proceedings that they say leaves them high and dry, an attorney said on Jan. 17. According to the report, in December, OGX released the terms of a plan that, if approved by a court, would allow it to eliminate most of its debt and reorganize the company. Under the proposed terms, OGX's creditors would convert approximately $5.8 billion in pre-petition debt into equity. Luciana Magalhaes, writing for Daily Bankruptcy Review, reported that the group of bondholders of OGX, which is now known as Oleo e Gas Participacoes SA, say they were left out of the oil company's restructuring talks. About OGX Petroleo Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes S.A. is an independent exploration and production company with operations in Latin America. OGX filed for bankruptcy in a business tribunal in Rio de Janeiro on Oct. 30, 2013, case number 0377620-56.2013.8.19.0001. The bankruptcy filing puts $3.6 billion of dollar bonds into default in the largest corporate debt debacle on record in Latin America. The filing by the oil company that transformed Eike Batista into Brazil's richest man followed a 16-month decline that wiped out more than $30 billion of his personal fortune. The filing, which in Brazil is called a judicial recovery, follows months of negotiations to restructure the dollar bonds, in which OGX sought to convert debt to equity and secure as much as $500 million in new funds. OGX said Oct. 29 that the talks concluded without an agreement. The company's cash fell to about $82 million at the end of September, not enough to sustain operations further than December. ========================== C A Y M A N I S L A N D S ========================== CRABEL TWO: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of Crabel Two Plus Trading Limited received on Jan. 3, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ENSIGN MUTUAL: Shareholder Receives Wind-Up Report -------------------------------------------------- The shareholder of Ensign Mutual Funds Ltd. received on Dec. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marla Gibbs c/o Arcadia Group Ltd. P.O. Box 10300 Grand Cayman KY1-1003 Cayman Islands Telephone: (345) 945 1830 FIFTH SQUARE: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Fifth Square Tower B Co Ltd received on Dec. 24, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gerald Yung Harvest Capital Partners Limited China Resources Building, 37th Floor 26 Harbour Road, Wanchai Hong Kong HCP BEIJING: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of HCP Beijing Fifth Square Co Ltd received on Dec. 24, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gerald Yung Harvest Capital Partners Limited China Resources Building, 37th Floor 26 Harbour Road, Wanchai Hong Kong HCP CRC: Shareholders Receive Wind-Up Report -------------------------------------------- The shareholders of HCP CRC Guiyang Development Co Ltd received on Dec. 24, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gerald Yung Harvest Capital Partners Limited China Resources Building, 37th Floor 26 Harbour Road, Wanchai Hong Kong KROM RIVER FUND: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Krom River Commodity Systematic Fund Inc received on Dec. 2, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Clemens Hendrik Anton Heijman Slingerweg 3 2111 AH Aerdenhout Holland Netherlands KROM RIVER GENERAL: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Krom River Commodity Systematic General Partner Inc received on Dec. 24, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Clemens Hendrik Anton Heijman Slingerweg 3 2111 AH Aerdenhout Holland Netherlands LASAIR OFFSHORE: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Lasair Offshore Fund, Ltd received on Dec. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Kellian Hutchinson Telephone: (345) 815-1418 Facsimile: (345) 949-9877 PLATINUM NORDIC: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Platinum Nordic Fund Limited received on Dec. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815-1762 Facsimile: (345) 949-9877 PLATINUM RENAISSANCE: Shareholder Receives Wind-Up Report --------------------------------------------------------- The shareholder of Platinum Renaissance Futures Fund Limited received on Dec. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815-1762 Facsimile: (345) 949-9877 PRINCETON GLOBAL: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Princeton Global Holdings Ltd received on Dec. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 9 49 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands QUADRUM INTERNATIONAL: Shareholder Receives Wind-Up Report ---------------------------------------------------------- The shareholder of Quadrum International, Ltd. received on Jan. 6, 2014, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Roger Priaulx Edel Andersen c/o Genesis Trust & Corporate Services Ltd. Midtown Plaza, 2nd Floor Elgin Avenue, George Town Grand Cayman Cayman Islands KY1-1106 Telephone: (345) 945 3466 Facsimile: (345) 945 3470 QUADRUM MASTER: Shareholder Receives Wind-Up Report --------------------------------------------------- The shareholder of Quadrum Master Fund, Ltd. received on Jan. 6, 2014, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Roger Priaulx Edel Andersen c/o Genesis Trust & Corporate Services Ltd. Midtown Plaza, 2nd Floor Elgin Avenue, George Town Grand Cayman Cayman Islands KY1-1106 Telephone: (345) 945 3466 Facsimile: (345) 945 3470 SEVEN BRAND: Shareholder Receives Wind-Up Report ------------------------------------------------ The shareholder of Seven Brand International Holdings Limited received on Dec. 24, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Ben Hart Telephone: (345) 814 7770 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands SPECTRA OPPORTUNITIES: Shareholder Receives Wind-Up Report ---------------------------------------------------------- The shareholder of Spectra Opportunities Fund Ltd. received on Dec. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Kellian Hutchinson Telephone: (345) 815-1418 Facsimile: (345) 949-9877 SPECTRA OPPORTUNITIES MASTER: Shareholder Receives Wind-Up Report ----------------------------------------------------------------- The shareholder of Spectra Opportunities Master Fund Ltd. received on Dec. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Kellian Hutchinson Telephone: (345) 815-1418 Facsimile: (345) 949-9877 TRISTAN LIQUID: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Tristan Liquid Property Fund Ltd received on Dec. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Simon Conway c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands TRISTAN LIQUID MASTER: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Tristan Liquid Property Master Fund Ltd received on Dec. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Simon Conway c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands TRISTAN LIQUID PROPERTY: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of Tristan Liquid Property Fund GP Limited received on Dec. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Simon Conway c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== XSTRATA NICKEL: We Need Guarantees to Continue, CEO Says -------------------------------------------------------- Dominican Today reports that the Chief Executive Officer of Xstrata Nickel's Dominican Republic operation (Falcondo) reiterated that the company's presence in the country depends on a long term mining, with cheap electricity available, to produce and compete in world markets. Mr. Soares said they pin their hopes of extracting nickel at the controversial site of Loma Miranda, between La Vega and Bonao (central), for which they expect to get the mining permit, according to Dominican Today. But environmental and civil society groups could keep them from carrying out the project, after the Chamber of Deputies agreed with the protesters and passed a bill which declares Loma Miranda a protected area, arguing that much of the Cibao region's (north) water depends on it, the report relates. Interviewed by Diario Libre, Mr. Soares said although current conditions guarantee the company a "life of the mine" for five years, the large investment needed to install a plant to generate low cost energy prevents them from doing so at this time, the report says. "To make that kind of investment, to spur 300, 400 million dollars to invest in a power plant, we need to be assured in our life of the mine, and then with the fronts that we open today, we have a very short life of mine, which doesn't compensate an investment of this kind. Now, when we add the value of Loma Miranda's ore, we can rely on a 25 to 30 years mine life, and then there yes, we can be profitable, and support an investment of this magnitude. That's the reality," the report quoted Mr. Soares as saying. * DOMINICAN REP: To Resume Egg, Chicken Exports to Haiti 'Soon' --------------------------------------------------------------- Dominican Today reports that Agriculture Minister Luis R. Rodriguez disclosed that formal egg and chicken exports to Haiti will resume once the authorities from both nations agree to implement a sanitary protocol to regulate bilateral trade. Mr. Rodriguez said in addition to the protocol, Dominican poultry farms at Moca and La Vega, together with Haitian investors, are building a chicken farm in Haiti, to ensure the industry's strength, according to Dominican Today. "We received a missive from Haiti Agriculture minister Jacques Thomas informing us that there is no problem for Dominican Republic to export eggs and chickens to Haiti, provided they're free of bird flu," the report quoted Mr. Rodriguez as saying. However, the report notes, Mr. Rodriguez said that the country doesn't have bird flu and the Livestock Dept. plans to certify farms and packing plants so Dominican producers start exporting to Haiti soon. The official said the program to certify poultry is carried out jointly with producers, via which Dominican Republic can export poultry products to all parts of the world, the report relays. ============= J A M A I C A ============= * JAMAICA: Aluminum Glut Worrying for Local Industry ---------------------------------------------------- RJR News reports that there's more worrying news concerning the supply of aluminum on the world market which could have implications for Jamaica's mining sector. Reuters said aluminum inventories in warehouses registered by the London Metal Exchange (LME) have climbed to a record of nearly 5.5 million tons, according to RJR News. The report relates that LME said this is more evidence of a market weighed down by oversupply. The report discloses that the price of aluminum mainly used in transport and packaging, fell 13.2 percent last year and has extended its losses by nearly one percent so far this month. LME stocks have surged more than fourfold since the global financial crisis in 2008, with demand insufficient to absorb an output glut and producers reluctant to cut capacity, the report notes. Jamaica's bauxite and alumina exports are used by aluminum producers. =============================== T R I N I D A D & T O B A G O =============================== PETROLEOS DE VENEZUELA: Chamber Expects Firm to Schedule Payments ----------------------------------------------------------------- El Universal reports that the Venezuelan private oil sector hopes that in 2014 expansion plans of state-run oil holding Petroleos de Venezuela (PDVSA) will energize oil operations, in line with the projects contemplated both in Oil Sowing Plan and meetings between government authorities and businesses. The financial status of PDVSA's providers of goods and services willing to work with PDVSA on such projects is among the items in the agenda, according to El Universal. "We understand that PDVSA is determined to settle payments to providers. Priorities were set and that has been partially addressed. Obviously, though, all providers of goods and services await predictability, as there is a void on when payments will be received," the report quoted President of the Venezuelan Petroleum Chamber, Alfredo Hernandez Raffalli. While there are not official numbers yet on PDVSA's financial statements in 2013, PDVSA President Rafael Ramirez said last December that in 2013, US$12.7 billion were paid to providers "to go up to a next step for production" in 2014, the report discloses. The report notes that it was not explained whether such payments were made on account of contracting for that year or to honor previous debts, some of them accrued for years. This even caused problems and adversely affected exploration and production, the report says. Ending 2012, PDVSA's debt to providers amounted to US$14.6 billion, 41% above the previous year, the report relays. The report discloses that Hernandez Raffalli noted that PDVSA paid some companies with bonds. Nonetheless, a group of businesses did not receive such benefit, the report relates. The president of the Venezuelan Petroleum Chamber welcomed the meetings with authorities of the Orinoco Oil Belt to accommodate PDVSA's specific demand of goods and services, the report adds. Petroleos de Venezuela S.A. -- http://www.PDVSA.com/-- engages in the exploration, production, refining, transport, and commerce of hydrocarbons. The company was founded in 1975 and is based in Caracas, Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 20, 2013, Moody's Investors Service downgraded the foreign currency bond rating and global local currency rating of Petroleos de Venezuela (PDVSA) to Caa1 from B2 and B1, respectively, and maintained a negative outlook on the ratings. Moody's also downgraded CITGO Petroleum Corporation's Corporate Family Rating to B1 from Ba2; its Probability of Default rating to B1-PD from Ba2-PD; and its senior secured ratings on term loans, notes and industrial revenue bonds to B1, LGD3-43% from Ba2, LGD3-41%. Moody's also assigned a rating of Ba3, LGD3-30% to CITGO's senior secured bank credit facility. The rating outlook for CITGO is negative. CITGO is PDVSA's wholly-owned US-based refining subsidiary. *********** 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 2014. 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 * * *