/raid1/www/Hosts/bankrupt/TCRLA_Public/140828.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
Thursday, August 28, 2014, Vol. 15, No. 170
Headlines
A R G E N T I N A
ARGENTINA: Bondholders Keep Faith Seeking Waiver of Clause
ARGENTINA: Revokes BNY Mellon's Operating Approval
B R A Z I L
AGROPECUARIA NOSSA: Moody's Confirms B3 Corporate Family Rating
GOL LINHAS: S&P Revises Outlook to Stable & Affirms 'B' CCR
C A Y M A N I S L A N D S
BALAMAT CAYMAN: Creditors' Proofs of Debt Due Sept. 22
BERRYWOOD LTD: Placed Under Voluntary Wind-Up
BOTANY CAYMAN: Creditors' Proofs of Debt Due Sept. 22
CONOCOPHILLIPS RUSSIA: Placed Under Voluntary Wind-Up
FUNDAMENTAL MARKET: Creditors' Proofs of Debt Due Sept. 22
GLENMEADOWS LIMITED: Creditors' Proofs of Debt Due Sept. 16
IPM MAC: Creditors' Proofs of Debt Due Sept. 22
POT MARIGOLD: Commences Liquidation Proceedings
VAN ECK: Creditors' Proofs of Debt Due Sept. 22
WHITNEY CAYMAN: Creditors' Proofs of Debt Due Sept. 22
C H I L E
AES GENER: Fitch Affirms 'BB' International Jr. Sub. Debt Rating
INVERSIONES ALSACIA: Extends Sr. Sec. Notes Forbearance Agreement
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Has High Level of Debt, President Says
E C U A D O R
* ECUADOR: IMF Board Concludes 2014 Article IV Consultation
J A M A I C A
UC RUSAL: Completes Restructuring of US$10 Billion Loan
S T. V I N C E N T & G R E N A D I N E S
* ST. VINCENT & GRENADINES: IMF Concludes Article IV Consultation
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Bondholders Keep Faith Seeking Waiver of Clause
----------------------------------------------------------
Katia Porzecanski at Bloomberg News report that Kyle Bass, founder
of hedge fund Hayman Capital Management LP, said Bank of New York
Mellon Corp. is failing in its duties to holders of Argentine
bonds by refusing to pass along debt payments.
Mr. Bass and a group of investors including George Soros's Quantum
Partners LP are suing BNY Mellon in London for failure to
distribute EUR226 million ($298 million) of interest on Argentine
debt, according to Bloomberg News. The group, which also includes
Knighthead Capital Management LLC and RGY Investments LLC, holds
more than EUR1.3 billion of Argentina's euro-denominated bonds,
according to Aug. 21 court documents obtained by Bloomberg News.
The lawsuit names BNY Mellon's London unit, which the group said
is required to pass along funds despite a court ruling in the U.S.
that bars the trustee from doing so until Argentina has also paid
holders of defaulted bonds from 2001, including billionaire Paul
Singer's hedge fund Elliott Management Corp, Bloomberg News notes.
The ruling shouldn't apply to debt issued outside of U.S.
jurisdiction, Mr. Bass said, Bloomberg News relays.
"They failed to transfer the euro funds in accordance with their
trust obligations," Mr. Bass said in a telephone interview from
New York with Bloomberg News. "Our interest payment is governed
by U.K. law, which hasn't ruled on this. Until there's a similar
injunction in the U.K., they owe us our interest payments," Mr.
Bass added.
On June 26, Argentina deposited $539 million into an account at
BNY Mellon for an interest payment due four days later, without
also making a $1.5 billion payment on defaulted bonds from 2001,
Bloomberg News recalls. A judge in New York called the payment
"illegal" and blocked BNY Mellon from passing the funds along,
Bloomberg News relays. They remain at the bank's account in
Buenos Aires.
'Without Merit'
Bloomberg News discloses that a default was triggered July 30,
after the government failed to reach a settlement with the
holdouts by the end of a grace period for making the interest
payments.
"The suit is without merit," Ron Gruendl, a spokesman for New
York-based BNY Mellon, said in an Aug. 22 statement obtained by
Bloomberg News. "BNY Mellon has consistently followed the binding
court orders that govern its actions as trustee in this matter."
Bloomberg News discloses that the government sent a bill to
Congress to attempt to remove BNY Mellon as trustee and continue
making payments locally through state-run Banco de la Nacion
Argentina.
* * *
The Troubled Company Reporter-Latin America, on Aug. 1, 2014,
reported that Argentina defaulted on some of its debt late July 30
after expiration of a 30-day grace period on a $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 $1.5 billion they
claimed. The country hasn't been able to access international
credit markets since its $95 billion default 13 years ago.
As a result, reported the TCR-LA on Aug. 1, Standard & Poor's
Ratings Services lowered its unsolicited long-and short-term
foreign currency sovereign credit ratings on the Republic of
Argentina to selective default ('SD') from 'CCC-/C'.
The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings
downgraded Argentina's Foreign Currency Issuer Default Rating
(IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency
Issuer Default Rating to 'RD' from 'C'.
Meanwhile, Moody's Investors Service affirmed Argentina's Caa1
issuer rating, which also applies to domestic law bonds, confirmed
the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca
rating on the original defaulted bonds. The long-term issuer
rating was placed on negative outlook, reported the TCR-LA on Aug.
5, 2014.
On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America
Agente de Calificacion de Riesgo affirmed the deposit, debt,
issuer and corporate family ratings on Argentina's banks and
financial institutions, both on the global and national scales.
The outlook on these ratings has been changed to negative from
stable. At the same time, the rating agency has affirmed the
banks' Caa2 foreign-currency deposit ratings and Not-
Prime short-term ratings. The banks' standalone E financial
strength ratings corresponding to caa1 baseline credit assessments
(BCA) have also been affirmed.
The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has
downgraded Argentina's long-term foreign currency issuer rating
from CC to Selective Default (SD). The short-term foreign
currency rating has been downgraded to Default (D), from R-5. The
long-term and short-term local currency issuer ratings have been
confirmed at B (low) and R-5, respectively. The trend on the
long-term local currency rating is Negative, and the trend on the
short-term local currency rating is Stable.
ARGENTINA: Revokes BNY Mellon's Operating Approval
--------------------------------------------------
Ken Parks, writing for Daily Bankruptcy Review, reported that
Argentina has revoked Bank of New York Mellon's permission to
operate a local representative office after the bank, acting as a
trustee of some Argentine bonds, refused to transfer interest
payments owed to bondholders last month due to a U.S. court order.
According to the report, citing a statement, the central bank
justified its decision to revoke BNY Mellon's authorization to
operate a representative office because the U.S.-based bank hadn't
provided credit and other financial services to Argentine
residents since the end of 2012. Argentine President Cristina
Kirchner's government is already seeking to remove BNY Mellon as
the trustee of its bonds governed by U.S. and U.K. law through a
bill submitted to Congress, the report related.
* * *
The Troubled Company Reporter-Latin America, on Aug. 1, 2014,
reported that Argentina defaulted on some of its debt late July 30
after expiration of a 30-day grace period on a $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 $1.5 billion they
claimed. The country hasn't been able to access international
credit markets since its $95 billion default 13 years ago.
As a result, reported the TCR-LA on Aug. 1, Standard & Poor's
Ratings Services lowered its unsolicited long-and short-term
foreign currency sovereign credit ratings on the Republic of
Argentina to selective default ('SD') from 'CCC-/C'.
The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings
downgraded Argentina's Foreign Currency Issuer Default Rating
(IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency
Issuer Default Rating to 'RD' from 'C'.
Meanwhile, Moody's Investors Service affirmed Argentina's Caa1
issuer rating, which also applies to domestic law bonds, confirmed
the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca
rating on the original defaulted bonds. The long-term issuer
rating was placed on negative outlook, reported the TCR-LA on Aug.
5, 2014.
On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America
Agente de Calificacion de Riesgo affirmed the deposit, debt,
issuer and corporate family ratings on Argentina's banks and
financial institutions, both on the global and national scales.
The outlook on these ratings has been changed to negative from
stable. At the same time, the rating agency has affirmed the
banks' Caa2 foreign-currency deposit ratings and Not-
Prime short-term ratings. The banks' standalone E financial
strength ratings corresponding to caa1 baseline credit assessments
(BCA) have also been affirmed.
The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has
downgraded Argentina's long-term foreign currency issuer rating
from CC to Selective Default (SD). The short-term foreign
currency rating has been downgraded to Default (D), from R-5. The
long-term and short-term local currency issuer ratings have been
confirmed at B (low) and R-5, respectively. The trend on the
long-term local currency rating is Negative, and the trend on the
short-term local currency rating is Stable.
===========
B R A Z I L
===========
AGROPECUARIA NOSSA: Moody's Confirms B3 Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has confirmed Agropecuaria Nossa Senhora
do Carmo S.A. ("GVO")'s B3 corporate family rating and senior
unsecured debt ratings, as well as its B2 senior secured debt
ratings. The confirmation reflects the company's improved
liquidity profile after liability management initiatives that
lengthened the amortization schedule and reduced liquidity risks.
This rating action concludes the review for downgrade initiated on
April 17, 2014.
Ratings confirmed as follows:
Issuer: Agropecuaria Nossa Senhora do Carmo
- Corporate Family Rating: B3 (global scale)
Issuer: Virgolino de Oliveira Finance Limited
- USD 300 million senior unsecured notes due 2018: B3 (global
scale)
- USD 300 million senior unsecured notes due 2022: B3 (global
scale)
Issuer: Virgolino de Oliveira Finance S.A.
- USD 135 million senior secured notes due 2020: B2 (global scale)
The outlook for all ratings is stable
Ratings Rationale
The confirmation of GVO's B3 ratings reflects primarily the
improvement in the company's liquidity profile after the issuance
of USD 135 million bonds in June 2014 and use of proceeds to
reduce short term debt. Furthermore, the company pursued
additional liability management initiatives amounting to BRL 207.5
million that extended debt maturities to April and November of
2017 (from December 2015 and July 2016) and lengthened the
company's amortization schedule. Pro forma to the events, Moody's
estimates that cash coverage of short term debt (principal only)
will be of approximately 1.5 times and that the increase in the
company's annual interest expense and expectations of a lower
volume harvest in 2014/15 will be partially offset by higher sugar
and ethanol prices, thus helping GVO to sustain its credit
profile. This concludes the review process initiated in April 17,
2014.
The B3 rating reflects the good medium-term prospects for the
sugar-ethanol industry due to still-constrained global inventories
as a consequence of constantly increasing consumption and a less
steady global supply growth. In our view, despite the recent
decline in international sugar prices, the industry's fundamentals
remain unchanged and sugar prices should remain at historically
high levels for the next years, especially when translated into
Brazilian Reais. The ratings also take into account the benefits
from the exclusivity partnership Virgolino has with Copersucar,
which assures the sale of all sugar and ethanol produced and
generates more stable cash flows, while reducing logistics costs.
Offsetting some of the positive rating attributes is the company's
weak liquidity profile, high leverage and relatively small size
when compared to large Brazilian companies operating in this
industry. Although Virgolino benefits from the advantages of
operating in one of the world's highest yielding sugar cane
regions, the rating reflects its raw material concentration in the
state of Sao Paulo, which increases the risks related to plant
diseases and weather-related events. Moreover, the region's good
climate and better soil are reflected in its higher lease, which
translate into a high operational leverage that negatively affects
the company's performance in low production years.
The USD 135 million secured notes were rated at B2, one notch
above GVO's CFR, due to its higher recovery prospects compared to
unsecured debt instruments. The notes' security package includes a
first-priority security interest in the Moncoes Mill and a first-
priority security interest in funds on deposit from time to time
in a Brazil and US collection account. Pro forma to the
transaction, approximately 26% of the company's reported debt will
be secured, in line with current levels.
The stable outlook reflects Moody's expectation that Virgolino
will be able to sustain operating performance near current levels,
and that management will remain focused on improving its debt
maturity profile, reducing leverage and improving cash flow
metrics.
Virgolino's ratings could be upgraded if the company manages to
improve its liquidity profile, increasing its minimum cash
cushion. The company would also need to maintain debt to EBITDA
below 4.0x, CFO to Net Debt above 20% and EBITA to interest
expense above 1.0x, on a sustained basis.
Negative pressure could develop on the rating if liquidity were to
deteriorate or free cash flow remains negative, CFO to Net Debt
falls below 10% and EBITDA margin was reduced to below 20% on a
sustainable basis. Although unlikely in our view, if Virgolino
were to exit the Copersucar partnership for any reason, it would
also pressure the rating.
Headquartered in Sao Paulo, Brazil, Agropecuaria Nossa Senhora do
Carmo S/A ("Virgolino") is a privately-held sugar and ethanol
producer. The company founded in the 1920s by Comendador Virgolino
de Oliveira is still controlled by the family, while higher
management positions are filled by family and professionals. With
annual sugarcane crushing capacity close to 12.0 million tons,
Virgolino posted revenues of BRL 1.5 billion (approximately USD
629 million converted by the average exchange rate) for the fiscal
year ending in April, 2014.
GOL LINHAS: S&P Revises Outlook to Stable & Affirms 'B' CCR
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Gol Linhas Aereas Inteligentes S.A. (GOL) to stable
from negative. At the same time, S&P affirmed its global scale
'B' and national scale 'brBBB-' corporate credit ratings on GOL.
The outlook revision reflects GOL's improved operating results by
cutting excess capacity and through cost control initiatives and
additional sales efforts, coupled with less aggressive competition
in Brazil. At the same time, GOL has been extending its debt
maturity profile and lowering debt cost through refinancing, such
as the tender offer for the prepayment of remainder of the 2017,
2020, and 2023 bonds. These factors partly counter the drag from
the company's higher leverage than those of its industry peers,
concentration of revenues in a single market, and significant
exposure to currency variations because most of its cash is in
Brazilian reais (R$), while part of its costs and most of its debt
are denominated in dollars, thus causing greater volatility of
cash flows and financial metrics. Also, the company is exposed to
the intrinsic risks of the airline industry, which S&P views as
"high" risk due to its cyclicality, intense competition, and
exposure to fuel prices and economic cycles, resulting in volatile
demand and credit metrics.
The ratings on GOL reflect S&P's view of the company's "weak"
business risk profile and "aggressive" financial risk profile.
S&P still views GOL's business risk profile as "weak," mainly due
to its concentration of revenues in a single market and Brazil's
sluggish economy. However, the partly mitigating factors are the
company's improving operating efficiency and low-cost business
model. GOL has maintained a significant presence in the Brazilian
aviation market, despite cutting its capacity in recent years by
returning excess aircraft and focusing on more profitable routes.
Furthermore, the company's strong presence at the country's
busiest airports and greater sales efforts improved its load
factors to about 75% and increased passenger revenues per
available seat-kilometer (PRASK). These factors, combined with
efforts to reduce costs, strengthened operating and financial
metrics, despite higher jet fuel prices and additional expenses
for restructuring GOL's fleet and routes. S&P expects the
company's strategy to improve its operating metrics, resulting in
load factors of more than 75% by year-end 2014 and close to 80% in
2015, higher yields and PRASK and greater control on costs per
available seat-kilometer (CASK) not including jet fuel costs. The
company's EBITDA margins (adjusted by operating leases) were about
16% in the 12 months ended June 2014, up from about 9% in a year-
earlier period.
S&P views GOL's financial risk profile as "aggressive", but with
credit metrics currently more in line with that category. GOL's
improved operations have reduced cash flow pressures and allowed
the company to fund its cash needs internally. Furthermore, GOL's
refinancing activities reduced its operating lease adjusted (OLA)
debt to R$8.6 billion in June 2014 from R$8.78 billion in Dec.
2013. This, combined with stronger EBITDA, significantly improved
debt to EBITDA to 5.5x from 10.7x and funds from operations (FFO)
to debt to 8.7% from 0.5%. Also, as part of GOL's efforts to
reduce debt cost, the company plans to repay the outstanding
amount on the 2017, 2020, and 2023 senior unsecured notes through
a tender offer.
In S&P's base-case scenario, it assumes the company will continue
to reduce capacity measured by available seat-kilometer (ASK), at
a gradual pace during the next two years, while benefitting from
more resilient air travel demand despite Brazil's sluggish
economy. S&P's base-case scenario also includes the following
assumptions:
-- Brazil's GDP growth of about 1.2% in 2014 and 2015;
-- A 1% decrease in GOL's ASK in 2014 and 0.6% in 2015;
-- Load factor reaching 75% in 2014 and about 80% in 2015;
-- Exchange rate fairly stable at around R$2.40 per $1.00 for
2014 and 2015;
-- Growth in CASK (minus jet fuel) in line with Brazil's
expected inflation rate of about 6% in 2014 and 2015;
-- The fleet's reduction by four aircraft in 2014 and increase
of three in 2015; and
-- Fairly stable debt levels in 2014 and some decrease in 2015.
As a result, S&P projects the company's RASK to increase slightly
for the next two years, while controlling CASK, allowing for
EBITDA margins to reach 17% by the end of 2014 and 18.5% in 2015.
Also, debt to EBITDA should be 5.2x and close to 4.5x,
respectively, and EBITDA interest coverage above 2.0x in the next
two years. Furthermore, S&P expects cash generation to improve,
resulting in FFO to debt close to 12% in 2014 and about 15% in
2015.
GOL's liquidity is "strong." The company continues to have
significant cash position of R$2.8 billion as of June 2014, while
short-term debt totals R$532 million. Also, S&P believes
liquidity sources will exceed uses by more than 1.5x during the
next 12 months. S&P's assumptions include:
Sources of liquidity:
-- Cash position of R$2.8 billion
-- FFO of about R$1 billion in 2014
-- R$540 million in freed-up resources due to the capital
reduction at Smiles (GOL's frequent flyer program)
-- R$600 million of new debt issued at Smiles to fund the
capital reduction
Uses of liquidity:
-- Short-term debt of R$532 million,
Expected capital expenditure of about R$300 million
-- A drop of about R$1 billion in capital at Smiles
GOL has also renegotiated the covenants to which the company is
subject to under its current debentures issues. S&P now expects
the company to fully comply with these covenants, with about 30%
of headroom. GOL also has significant obligations for aircraft
acquisitions due to orders with Boeing, with a smooth payment and
delivery schedule. S&P also expects the company to continue
financing aircraft acquisitions mainly through operating and
financial leases.
"In our credit assessment, we have a "negative" score for GOL's
capital structure modifier, because about 75% of its total debt is
in dollars with little natural hedge from dollar-denominated
revenues, which increases volatility of credit metrics and can
weaken the interest coverage ratios if the Real depreciates.
Therefore, we render a one-notch downward adjustment from GOL's
anchor. The mitigating factor is GOL's high cash position,
compared with the uses of cash, resulting in a one-notch upward
adjustment. Finally, we believe GOL compares negatively to
similarly rated companies, as it's still in middle of an
aggressive restructuring of its operations, with exposure to a
slowing economy, which exacerbates the intrinsic risks of the
airline industry," S&P said.
"The stable outlook reflects our expectations that GOL will
continue to improve its profitability by reducing costs and
increasing PRASK and load factors by focusing on profitable routes
and business travelers, despite Brazil's stalled economy.
Furthermore, we also expect the company to continue refinance its
debt to extend its debt maturity profile and reduce debt costs.
These factors will result in stronger credit metrics, such as
total debt to EBITDA of about 5.0x by the end of 2014 and close to
4.5x in 2015," S&P added.
An upgrade is possible if the company can strengthen its operating
metrics, due to more efficient cost control or higher-than-
expected demand, leading to sustainably higher load factors and
yields and debt to EBITDA of less than 4.0x and FFO to debt of
20%. S&P can also raise the ratings if GOL reduces its exposure
to foreign currency exchange rates either by improving the natural
hedge from its dollar-denominated revenues or by reducing dollar-
denominated debt, resulting in more stable cash flows.
S&P could downgrade GOL if its results weaken due to
inefficiencies in its operations, or weaker-than-expected market
conditions, resulting in debt to EBITDA of more than 5x and FFO to
debt of less than 10%. Also, S&P could lower the ratings if the
company's liquidity deteriorates due to weaker cash flows.
==========================
C A Y M A N I S L A N D S
==========================
BALAMAT CAYMAN: Creditors' Proofs of Debt Due Sept. 22
------------------------------------------------------
The creditors of Balamat Cayman Fund Limited are required to file
their proofs of debt by Sept. 22, 2014, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 8, 2014.
The company's liquidators are:
Keiran Hutchison
Robin Lee Mcmahon
c/o Barry MacManus
Telephone: (345) 814 8997
Facsimile: (345) 814 8529
Ernst & Young Ltd
62 Forum Lane Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
BERRYWOOD LTD: Placed Under Voluntary Wind-Up
---------------------------------------------
On Aug. 5, 2014, the shareholders of Berrywood Ltd. resolved to
voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Trident Liquidators (Cayman) Ltd
c/o Eva Moore
One Capital Place, 4th Floor
P.O. Box 847, George Town
Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 0880
Facsimile: (345) 949 0881
BOTANY CAYMAN: Creditors' Proofs of Debt Due Sept. 22
-----------------------------------------------------
The creditors of Botany Cayman Fund Limited are required to file
their proofs of debt by Sept. 22, 2014, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 8, 2014.
The company's liquidators are:
Keiran Hutchison
Robin Lee Mcmahon
c/o Barry MacManus
Telephone: (345) 814 8997
Facsimile: (345) 814 8529
Ernst & Young Ltd
62 Forum Lane Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
CONOCOPHILLIPS RUSSIA: Placed Under Voluntary Wind-Up
-----------------------------------------------------
On July 30, 2014, the shareholders of Conocophillips Russia
Ventures Ltd. resolved to voluntarily wind up the company's
operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Trident Liquidators (Cayman) Ltd
c/o Eva Moore
One Capital Place, 4th Floor
P.O. Box 847, George Town
Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 0880
Facsimile: (345) 949 0881
FUNDAMENTAL MARKET: Creditors' Proofs of Debt Due Sept. 22
----------------------------------------------------------
The creditors of Fundamental Market Neutral Mac 81 Ltd are
required to file their proofs of debt by Sept. 22, 2014, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Aug. 8, 2014.
The company's liquidators are:
Keiran Hutchison
Robin Lee Mcmahon
c/o Barry MacManus
Telephone: (345) 814 8997
Facsimile: (345) 814 8529
Ernst & Young Ltd
62 Forum Lane Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
GLENMEADOWS LIMITED: Creditors' Proofs of Debt Due Sept. 16
-----------------------------------------------------------
The creditors of Glenmeadows Limited are required to file their
proofs of debt by Sept. 16, 2014, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Aug. 7, 2014.
The company's liquidator is:
Appleby Trust (Cayman) Ltd
c/o Richard Gordon
Telephone: +1 (345) 949 4900
75 Fort Street, PO Box 1350
Grand Cayman KY1-1108
Cayman Islands
IPM MAC: Creditors' Proofs of Debt Due Sept. 22
-----------------------------------------------
The creditors of IPM MAC Cayman Fund Limited are required to file
their proofs of debt by Sept. 22, 2014, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 8, 2014.
The company's liquidators are:
Keiran Hutchison
Robin Lee Mcmahon
c/o Barry MacManus
Telephone: (345) 814 8997
Facsimile: (345) 814 8529
Ernst & Young Ltd
62 Forum Lane Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
POT MARIGOLD: Commences Liquidation Proceedings
-----------------------------------------------
On Aug. 7, 2014, the sole shareholder of Pot Marigold Investment
(Cayman) Ltd resolved to voluntarily liquidate the company's
business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Yang Ning
Tower Two, Flat C, 57th Floor
The Merton, 38 New Praya
Kennedy Town
Hong Kong
VAN ECK: Creditors' Proofs of Debt Due Sept. 22
-----------------------------------------------
The creditors of Van Eck Hard Assets Cayman Fund Limited are
required to file their proofs of debt by Sept. 22, 2014, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Aug. 8, 2014.
The company's liquidators are:
Keiran Hutchison
Robin Lee Mcmahon
c/o Barry MacManus
Telephone: (345) 814 8997
Facsimile: (345) 814 8529
Ernst & Young Ltd
62 Forum Lane Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
WHITNEY CAYMAN: Creditors' Proofs of Debt Due Sept. 22
------------------------------------------------------
The creditors of Whitney Cayman Fund Limited are required to file
their proofs of debt by Sept. 22, 2014, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 8, 2014.
The company's liquidators are:
Keiran Hutchison
Robin Lee Mcmahon
c/o Barry MacManus
Telephone: (345) 814 8997
Facsimile: (345) 814 8529
Ernst & Young Ltd
62 Forum Lane Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
=========
C H I L E
=========
AES GENER: Fitch Affirms 'BB' International Jr. Sub. Debt Rating
----------------------------------------------------------------
Fitch Ratings has affirmed AES Gener S.A.'s (Gener) ratings as
follows:
-- Foreign and local currency Issuer Default Ratings (IDRs) at
'BBB-';
-- International Senior unsecured debt at 'BBB-';
-- International Junior subordinated debt at 'BB';
-- National long-term ratings at 'A+(cl)';
-- Domestic Senior unsecured debt at 'A+(cl)';
-- National equity rating at 'Nivel 2(cl)'.
The Rating Outlook is Stable.
Gener's ratings are supported by the company's solid liquidity
given significant capex needs in the short to medium term, a
balanced contractual position and a diverse portfolio of
generation assets. The ratings also recognize that its major
plants operate under constructive regulatory environments in Chile
and Colombia. Credit risks include possible environmental and/or
political issues, which could result in cost overruns or
additional modifications in new and/or existing projects. The
credit risks also include the regulatory uncertainties in
Argentina related to Termoandes S.A., though these are mitigated
given Argentina represented 6% of consolidated EBITDA during the
first half of 2014. In addition, the company could face pressure
from the controlling shareholder AES Corp. ('BB-'/Outlook Stable)
to increase dividends above those forecast by Fitch.
Key Rating Drivers
Difficult 2014: In the last 12 months (LTM) June 2014 period,
Gener reported consolidated adjusted EBITDA of USD574 million,
which was 8% weaker versus 2013 results and down 15% versus 2012.
The results have so far come in below Fitch's expectations and the
main drivers for the weakness seen so far in 2014 are: 1) lower
availability of AES Gener's efficient coal plants due to a
scheduled maintenance at the Ventanas coal complex during the
first quarter of 2014; 2) lower contract prices in Chile; 3) lower
energy sales in Argentina. Fitch expects results to improve in
the second half of the year given the full availability of the
company's coal plants during this period. The plants under
maintenance in the Ventanas Complex are now back in service after
maintenance work in 1Q14. In addition, contract prices in Chile
re-set at the end of the second quarter of 2014, which will help
provide tailwinds for Gener's 2H14 results. Fitch expects
Argentina sales to continue to be negatively impacted by a
continued currency devaluation and economic slowdown.
Aggressive Expansion: The company has embarked on an aggressive
expansion phase which brings with it significant execution risk
(i.e., construction delays, accidents, cost-overruns, etc.). In
addition, the expansion plan has resulted in additional pressure
on the company's cash flow generation and credit metrics.
Positively, the company has extensive history of finishing major
projects on time and on budget. Gener's first phase of expansion
took place between 2007-2013 in which the company successfully
expanded its generation capacity by 48% to reach 5,081 MW of
installed capacity at a total investment cost of USD3 billion.
The company is in the midst of what it has termed a second phase
of expansion, which involves four major projects under
construction that will increase installed capacity by 24%. Total
investment cost for the second phase will total USD4 billion with
project finance debt of USD2.5 billion executed in 2013. The
Guacolda V Project will cost USD450 million (152 MW coal-fired
with estimated operation date of 3Q15) while Tunjita in Colombia
(20 MW run of the river) will cost USD68 million (estimated
operation date 1H15). Gener also recently received the Notice to
Proceed for the construction of the first phase of the Solar Andes
Project (21 MW) whose investment will total USD45 million with an
expected operation date in 1H15.
The largest projects to be executed are Cochrane (USD1.35 billion)
and Alto Maipo (USD2.05 billion). Gener initiated construction in
March of 2013 of its 532MW Cochrane coal project in the SING
(Sistema Interconectado del Norte Grande), with an estimated
investment of approximately USD1.35 billion. In the Cochrane
project, Gener has incorporated Mitsubishi Corporation as a
shareholder with a 60%:40% equity stake, respectively. For Alto
Maipo , Gener incorporated Antofagasta Minerals S.A., a Chilean
mining company, as a 40% shareholder. Non-recourse financing has
been closed for both projects and the company will use funds from
the recently-issued junior subordinated notes (USD300 million) and
USD150 million capital increase to fund the equity investments in
both projects.
NEGATIVE FCF: Primarily due to cash outflows to fund the Cochrane
and Alto Maipo projects, Fitch expects the company to generate
negative FCF in the 2015-2018 period, with peak capex forecast for
2014-2015 and a return to positive FCF generation in 2019. Fitch
estimates that Cochrane will become a positive cash flow
contributor in 2017 while Alto Maipo should do so in 2019. The
company's financial strategy revolves around maintaining a balance
between continuity of funding and financial flexibility through
internally generated cash flows, bank loans, bonds, short-term
investments, committed credit lines and uncommitted credit lines.
Pressured Credit Metrics: Given Gener is in the midst of an
aggressive expansion plan, Fitch expects a weakening of the
company's credit quality measures in the short to medium term.
For the LTM ended June 30, 2014, the company's consolidated debt-
to-EBITDA and EBITDA coverage metrics were 4.7x and 3.4x ,
respectively. These ratios are weaker versus leverage levels of
4.3x and 3.6x in 2013 and 2012 respectively and coverage ratios of
4.0x and 4.5x during the same periods. Excluding the non-recourse
debt of the Angamos, Alto Maipo and Cochrane power plants, Gener's
debt-to-EBITDA for the LTM June 2014 period was 2.9x. Fitch
expects the company's consolidated leverage levels to remain in
the 4.5x-5x range during 2014 and 2015, which is on the weak side
for the rating category. Leverage levels should slowly decline to
the 4x level starting in 2016 as Cochrane comes on-line and begins
generating meaningful cash flows in 2016-2017.
Sufficient Liquidity: Fitch believes Gener has adequate liquidity
to support its financial needs during the peak capex period in
2014-2015. The company's liquidity is supported by reported cash
on hand of USD566 million as of June 30, 2014, which compares
favorably with short-term maturities totaling USD362 million. The
company's definition of reported cash on hand totals USD576
million as it also adds USD8 million in other financial assets
comprised of short-term investments by subsidiary AES Chivor which
are restricted given they serve as a guarantee for its bond.
Gener also classifies USD35 million in investments with short-term
maturities as cash and equivalents. In calculating a pro forma
cash and equivalents figure, Fitch conservatively takes a 30%
haircut of both investment assets, arriving at a still solid pro
forma cash and cash equivalents figure of USD561 million which is
1.5x the level of short-term maturities.
The company's liquidity is further buoyed by access to undrawn
committed credit lines totaling USD261 million. Gener also has
access to unused uncommitted credit lines of approximately USD246
million. Positively, the company's debt outstanding does not have
major maturities coming due in the next five years, which cushions
the company for the aggressive build-out taking place.
High Dividend Payment: Gener has a track record of high dividend
payments. Fitch is estimating that the company will continue to
payout 100% of Net Income going forward. Cash flow could be
further pressured in the upcoming expansion phase should this
dividend policy be increased to a payout rate above 100% of net
income during peak capex periods.
Rating Sensitivities
A change in Gener's commercial policy that results in an
imbalanced long-term contractual position would be viewed
negatively by Fitch. In addition, a material and sustained
deterioration of credit metrics reflected in total consolidated
debt-to- EBITDA ratios above 4.5x-5x and total non-recourse debt-
to-EBITDA ratios above 3x-3.5x on a sustained basis could result
in a negative rating action.
Fitch believes that a positive rating action is limited at this
time due to the expected capacity expansion over the next few
years.
INVERSIONES ALSACIA: Extends Sr. Sec. Notes Forbearance Agreement
-----------------------------------------------------------------
Inversiones Alsacia S.A. and Express de Santiago Uno S.A. on
disclosed that they and an informal group of holders that,
collectively, holds more than 60% of the principal amount of the
Company's 8% senior secured notes due 2018 have agreed to extend,
for a period of up to 7 days, the forbearance agreement entered
into on Aug. 18, 2014. The extension of the forbearance will
allow the parties to complete the negotiation and documentation of
the agreement in principle that the Company reached with the
Informal Group, as previously announced on Aug. 18, 2014, as well
as the related restructuring documents.
About Alsacia
Alsacia, together with its affiliate, Express de Santiago Uno
S.A., are collectively the largest operator in the Transantiago
Transportation System, transporting approximately 800,000
passengers every day, throughout 35 communities in Santiago,
Chile, which accounts for more than 30% of the passengers in
Transantiago.
Alsacia and Express belong to an international holding company
with interests in public passenger transportation, environmental
solutions, outsourcing services and real estate development in
Chile, Colombia, Panama, Peru and the United States of America.
* * *
As reported by the Troubled Company Reporter-Latin America on
Oct. 18, 2013, Moody's Investors Service downgraded the senior
secured rating of Inversiones Alsacia S.A. to Caa2 from B2.
Moody's said the rating continues on review for possible
downgrade.
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Has High Level of Debt, President Says
------------------------------------------------------------
Dominican Today reports that President Danilo Medina said that the
Dominican state has a very high level of debt, because it is
dragging a vital execution deficit with the income it receives and
has to spend, which has prevented the economy from recovery over
the past few years.
"When a country does not receive enough resources to fund its
spending, the only way of financing it is to use state money. In
all these years the country's average fiscal deficit since 2000 to
date has been 4.5% of the annual Gross Domestic Product," the
report quoted President Medina as saying.
The report notes that President Medina said the state will have to
pay US$11 billion in debt between 2013 and 2015, and for the
deficit to be reduced an effort must be made to reduce its
essence, in order to take it to 2.8% of GDP.
President Medina warned that this reduction is behind the
importance of building coal-fired plants to supply the country
with energy, and that he does not understand why "there is a
conspiracy against these plants that should be defended by the
whole country, if we want sustainability in public finances," says
the report.
The report relays that President Medina said these plants, which
will come into operation in 2017, would mean the state would save
1.7% of the GDP, by paying the Dominican Corporation of State
Electricity Companies (CDEEE) debt, thus putting the national
economy on a good path within a few years.
The report discloses that when President Medina was asked where he
would obtain the resources for governing over the next years, he
answered, "God will provide."
President Medina said that the budgetary spending restructuring
meant the government was investing where people needed it and that
this was being reflected in economic development, the report adds.
=============
E C U A D O R
=============
* ECUADOR: IMF Board Concludes 2014 Article IV Consultation
-----------------------------------------------------------
On July 30, 2014, the Executive Board of the International
Monetary Fund (IMF) concluded the Article IV consultation with
Ecuador.
Ecuador has made significant economic and social progress over the
last decade. Economic growth has averaged about 4.5 percent since
2001, and inflation has gradually declined to around 3 percent a
year. Financial stability, achieved with dollarization, was
preserved and together with low inflation, sustained growth, and
higher social spending, helped reduce poverty and improve social
indicators. High oil prices in the last several years have
generated a windfall income that supported the balance of payments
and fiscal accounts, facilitating higher public spending.
After rebounding strongly from the impact of the global financial
crisis, growth moderated somewhat over the last two years. Real
GDP growth leveled out at 4.5 percent in 2013 from 5 percent in
2012, reflecting less buoyant domestic demand, but remains
slightly above potential. Inflation fell to 2.7 percent in 2013,
from 4.2 percent in 2012, owing to the unwinding of supply side
shocks. The unemployment rate fell to a historic low while real
wages continue rising. A fiscal deficit has re-emerged despite
buoyant tax revenue collection. Higher capital spending widened
the fiscal deficit to 4.7 percent of GDP, financed mainly by loans
from China. Ecuador's gross public debt stood at 24.4 percent of
GDP at the end of 2013, which is low by regional standards. The
current account deficit widened to 1.3 percent of GDP in 2013 from
0.4 percent in 2011-12. Credit to the private sector and banks'
profitability declined but the financial system remains healthy.
The economy is expected to grow at 4 percent in 2014-15 but the
outlook is less favorable than in the past as oil prices are
expected to fall and interest rates in the U.S. are expected to
rise over the medium-term. Risks to the outlook are broadly
balanced. The ability to respond to these risks is limited given
the absence of monetary policy in a fully dollarized economy and
the limited ability to react on the fiscal side. On the downside,
a more pronounced increase in U.S. dollar interest rates (and
additional strengthening of the dollar) could jeopardize growth
prospects and competitiveness. On the upside, geopolitical
tensions could increase oil prices which would support growth and
improve the fiscal position.
While the public sector was an important engine of growth over the
past several years, the private sector needs a larger role to
avoid potential fiscal and external imbalances. The emergence of
sizeable fiscal deficits calls for restraint in public spending
plans, and moderation in current spending is necessary to
accommodate the scaling-up of the public sector investment program
(PSIP). The rationale of the PSIP is to eventually reverse the
expected decline in oil revenues, not only by increasing oil
production, but also by replacing fuel imports and diversifying
energy resources. In the financial system, it would be important
for new banking legislation and regulation to support growth
prospects. Given the economy's need to attract U.S. dollars as
currency, consideration should be given to have alternative
controls on the external flows to the financial system and to
gradually phase out restrictions on foreign exchange transactions.
Executive Board Assessment
Executive Directors agreed with the thrust of the staff appraisal.
They welcomed the authorities' reengagement with the Fund through
the Article IV consultation and commended the significant
improvements in Ecuador's social and economic indicators over the
past decade. They noted that Ecuador's growth prospects are
generally favorable and risks are broadly balanced.
However, a potentially less favorable external environment,
reduced financial buffers, and limited policy flexibility in the
context of dollarization could complicate macroeconomic management
going forward. Accordingly, Directors called on the authorities
to restore policy space, continue to strengthen the financial
system, and pursue further reforms to boost competitiveness and
sustain high growth.
Directors encouraged the authorities to address emerging fiscal
imbalances. In this regard, they welcomed the authorities'
intention to moderate current spending and prioritize capital
expenditure to accommodate large planned and ongoing public
investments. They noted that implementation of these projects
under strict economic criteria will improve the economy's
productive capacity and reduce dependence on oil over the medium
term. More broadly, Directors emphasized the need to create
additional fiscal space. They agreed that a carefully planned
overhaul of fuel subsidies which safeguards the welfare of the
poor is needed to reduce the drain on the budget. They also
recommended improving revenues further, focusing on achieving
better enforcement of tax laws and greater efficiency in tax
administration. Some Directors saw merit in saving oil revenue
windfalls in a fiscal stabilization and wealth fund.
Directors underscored the importance of an efficient and well-
regulated banking sector in supporting growth and the private
sector's participation in the economy. They noted that banks
remain well capitalized and liquid but that profitability has
declined. Accordingly, they recommended a gradual lifting of
interest rate caps and greater competition in the determination of
interest rates. Directors encouraged the authorities to better
communicate the provisions of the new financial code, and welcomed
their clarification that more directed lending is not envisaged
under the framework. They also encouraged the authorities to
phase out restrictions on foreign transactions; instead,
macroprudential measures could be considered to better control
cross-border capital flows. Strengthening the anti-money
laundering regime remains an urgent policy priority.
Directors considered that dollarization has played an important
role in securing macroeconomic stability and has served the
country well. They took note of the staff assessment that
Ecuador's real effective exchange rate appears to be broadly in
line with medium-term fundamentals.
Directors underscored the importance of deeper structural reforms
to raise productivity and sustain high economic growth. Further
efforts should focus on improving the business climate, increasing
labor market flexibility, upgrading human capital, and
strengthening institutions and the legal framework.
The next Article IV consultation with Ecuador is expected to be
held in Quito on the standard 12-month cycle.
=============
J A M A I C A
=============
UC RUSAL: Completes Restructuring of US$10 Billion Loan
-------------------------------------------------------
RJR News, citing the Financial Times, said that UC Rusal, which
has a major stake in Jamaica's bauxite/alumina sector, has
completed the restructuring of its US$10 billion debt after
negotiations with creditors that lasted a year.
Financial Times reported that the deal will remove the financial
uncertainty hanging over the firm, according to RJR News. The
report relates that UC Rusal had been negotiating with creditors
since last year to change the terms of its debts, with its
profitability weighed down by years of low aluminum prices.
While its Russian lenders early this year approved a restructuring
to waive mandatory repayments on its debt until 2016, it struggled
to achieve unanimous support for changes in the terms of about US$
5.2 billion in credit lines from international banks, the report
discloses.
Earlier this month the final holdout lender, Royal Bank of
Scotland, approved the deal after the company had prepared to go
to court to attempt to force it through, the report notes. UC
Rusal said the deal would strongly improve its debt profile, the
report adds.
UC Rusal controls 65 per cent of Jamaica's alumina production
capacity and operates three of the island's four alumina
refineries.
* * *
As reported in the Troubled Company Reporter-Europe on July 14,
2014, Itar-Tass noted that UC RUSAL said in a statement the
London High Court was convening a meeting of creditors of Russia's
aluminum giant to vote on a scheme of arrangement of
restructuring the company's US$5.15 billion debt.
RUSAL has earlier applied to the London and Jersey courts for
debt restructuring after failing to win unanimous support from
its creditors. At that time, RUSAL's request for debt
restructuring has received support from 94% of the company's
creditors and the aluminum giant was negotiating the deal with the
remaining 6%.
As reported in the Troubled Company Reporter-Latin America on
March 31, 2014, RJR News said that UC Rusal reported a massive
increase in net losses in the year to December 31. This was due
mainly to a large impairment cost and one-off restructuring
charges combined with lower production and a fall in aluminum
prices, according to RJR News.
The report said the company reported a net loss of US$3.2
billion. It suffered a US$528 million loss in 2012.
===========================================
S T. V I N C E N T & G R E N A D I N E S
===========================================
* ST. VINCENT & GRENADINES: IMF Concludes Article IV Consultation
-----------------------------------------------------------------
On February 6, 2013, the Executive Board of the International
Monetary Fund (IMF) concluded the Article IV consultation with St.
Vincent and the Grenadines.
The economy of St. Vincent and the Grenadines shows signs of
recovery, but at a slower pace than expected in 2011. After three
consecutive years of negative growth, reflecting the impact of the
global financial crisis, higher commodity prices and natural
disasters, real GDP grew by about 1/2 percent in 2011. Economic
activity indicators for the first six months of 2012 suggest a
modest pick-up in tourism arrivals, manufacturing, and
agricultural activity. Real GDP growth is expected to be around
1/2 percent this year, as weak construction activity partly
offsets the modest upticks in manufacturing and tourism.
Pressures on prices have eased, consistent with declining
commodity prices, with year-on-year inflation reaching a low of
0.9 percent in September 2012, after peaking at 4.7 percent at the
end of 2011.
The external current account deficit remains high at around 30
percent of GDP, largely reflecting higher than expected imports
relating to foreign direct investments (FDI), fuel, and
international airport construction. Private sector credit growth
remains sluggish and continues to drag on growth. While this
reflects a tightening of lending standards by banks in the wake of
the financial crisis and high non-performing loans (NPLs), it also
shows banks' hesitation to lend to private businesses despite
excess liquidity.
The fiscal deficit is expected to narrow by about one percentage
point compared to last year to about 2 3/4 percent of GDP, as
lower-than-projected revenues were offset by cuts in capital
expenditure due to financing constraints. That said, spending on
wages and salaries is expected to be somewhat higher given the
recent announcement of a retroactive wage increase of 1« percent
for civil service workers for 2011 and 2012. Earlier in the year,
the government issued a EC$40 million 10-year bond on the Regional
Government Securities Market (RGSM) to help finance the deficit.
Weak growth performance has taken a toll on the financial sector.
NPLs at banks remain in the 7-7 1/2 percent range, almost twice
their pre-crisis level, with considerable variation across banks.
Similarly, bank profitability has declined significantly since
2009. While capital adequacy ratios at around 20 percent are
relatively high, inadequate provisioning against NPLs (less than
30 percent) calls for caution in interpreting these ratios.
Non-bank financial institutions endure low profitability and their
balance sheets continue to come under stress with average NPLs at
credit unions broadly similar to those at banks. Available data
on NPLs at the Building and Loan (B&L) Association indicate that
half of its loan portfolio was overdue in 2011. Although
exposures to BAICO and CLICO were partly written off in 2011 by
two credit unions and the B&L association, a considerable amount
remains on their books and a further write-off could worsen their
balance sheets.
Regional efforts to resolve the fallout from the BAICO/CLICO
failure are underway. In addition to the establishment of the
Medical Support Fund last year to address the needs of medical
policyholders, negotiations for selling BAICO's life insurance
portfolio to a regional insurance company are well advanced. It
is also expected that with the help of the money committed by
Trinidad and Tobago, annuity holders may start receiving partial
payments by the end of 2012.
Growth is expected to improve over the medium term, albeit
gradually, on the back of projected improvements in economic
activity in advanced economies and the expected completion of the
international airport, which is expected to boost tourism.
Executive Board Assessment
Executive Directors noted that the St. Vincent and the Grenadines'
economy is showing signs of recovery following a series of
negative shocks. Nevertheless, the near-term outlook for growth
is challenging due to the high level of public debt and weaknesses
in the financial sector. Directors considered that continued
commitment to prudent macroeconomic and financial policies as well
as structural reforms to improve competitiveness are key to
sustaining growth and enhancing the economy's resilience to
shocks.
Directors welcomed the authorities' commitment to fiscal
consolidation and to the realization of primary surpluses in the
medium term. They emphasized that ensuring fiscal and debt
sustainability, making room for growth-enhancing capital
expenditures, and building buffers against potential future shocks
will require further efforts to increase revenues and reduce
current expenditure. To this end, Directors encouraged steps to
contain the wage bill, limit transfers to state-owned enterprises,
and reform of public pensions system. They also called for
elimination of discretionary exemptions, strengthening
administrative capacity, and improving tax compliance. While
recognizing the need for commercial borrowing for the
international airport project, Directors urged the authorities to
continue to pursue a prudent debt policy to safeguard fiscal and
debt sustainability.
Directors underscored the need to monitor the bank and the non-
bank financial sectors and to address the vulnerabilities by
strengthening supervisory and regulatory standards. In this
context, they welcomed the recently established Financial Services
Authority and encouraged expeditious resolution of issues at any
domestic financial institutions, drawing on technical assistance
from international financial institutions.
***********
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
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than a balance sheet solvency test.
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***********
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
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is US$775 per half-year,
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contact Peter A. Chapman at 215-945-7000 or Nina Novak at
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* * * End of Transmission * * *