/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/140905.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 Friday, September 5, 2014, Vol. 15, No. 176 Headlines A R G E N T I N A ARGENTINA: Senate Begins Debate on Local Debt Payment Proposal ARGENTINA: Argentine Economist Says Bond Holdouts Should Be Paid ARGENTINA: Swaps Traders Set for US$532 Million Payout ARGENTINA: New Debt Plan Looks Like a Long Shot B E R M U D A ENERGY XXI: S&P Revises Outlook to Neg. & Affirms 'B+' CCR C A Y M A N I S L A N D S ATLANTIC INTERNATIONAL: Creditors' Proofs of Debt Due Sept. 25 CFG HOLDINGS: S&P Affirms 'B' Counterparty Credit Rating NAVIGATOR FIXED: Creditors' Proofs of Debt Due Sept. 24 R-ONE AKITA: Creditors' Proofs of Debt Due Sept. 24 R-ONE ASAKA: Creditors' Proofs of Debt Due Sept. 24 R-ONE IRUMA: Creditors' Proofs of Debt Due Sept. 24 R-ONE NAGANO: Creditors' Proofs of Debt Due Sept. 24 R-ONE NISHIKASUGAI: Creditors' Proofs of Debt Due Sept. 24 R-ONE SAGA: Creditors' Proofs of Debt Due Sept. 24 R-ONE SEVEN: Creditors' Proofs of Debt Due Sept. 24 R-ONE UTSUNOMIYA: Creditors' Proofs of Debt Due Sept. 24 J A M A I C A * JAMAICA: Slight Decrease in Food Imports M E X I C O COATZACOALCOS: Moody's Affirms Ba2 Issuer Rating; Outlook Stable DOCUFORMAS S.A.P.I.: S&P Affirms 'B+' Rating; Outlook Stable SANLUIS RASSINI: S&P Raises CCR to 'BB-'; Outlook Stable P U E R T O R I C O DORAL FINANCIAL: Settlement Falls Apart in US$229MM Tax Row PUERTO RICO ELECTRIC: Eyes AlixPartners, FTI for Restructuring T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Pays Millions in Outstanding Fees TRINIDAD CEMENT: In Talks With OWTU on Firm's Future - - - - - ================= A R G E N T I N A ================= ARGENTINA: Senate Begins Debate on Local Debt Payment Proposal -------------------------------------------------------------- Camila Russo at Bloomberg News reports that Argentina's Senate began debate on Sept. 3, a proposed law that would allow the government to pay international bonds through local banks. The bill would open the way for overseas investors to voluntarily swap their bonds into new debt issued under domestic laws, according to a draft released Aug. 19, reports Bloomberg News. Interest payments, currently handled by Bank of New York Mellon Corp., would be made by local banks. The government also intends to pay holders of defaulted bonds using the same terms as the rest of its restructured debt, regardless of whether they decide to accept the swap, Bloomberg News notes. The report says the measure is an attempt by President Cristina Fernandez de Kirchner to circumvent a U.S. judge's order for the nation to pay the full amount owed to holders of debt Argentina defaulted on in 2001, or about US$1.6 billion, at the same time it pays restructured bonds. U.S. District Judge Thomas Griesa on Aug. 21 said the move is illegal and banned third parties from aiding the government in carrying it out. "The government has enough support from senators to pass the law, and the big surprise would be if it doesn't get approved," Alejo Costa, a Buenos Aires-based strategist at Puente Hermanos Sociedad de Bolsa SA, told Bloomberg News in a telephone interview. "The market is already pricing in that this law means there's a smaller chance of a resolution with holdouts this year," Mr. Costa added. The ruling Frente Para la Victoria coalition has 32 senators out of the total 72. If passed, it would go to the lower house for approval, Bloomberg News relays. Legal Secretary Carlos Zannini met with pro-government lawmakers Sept. 3, and said Argentina will include the possibility to pay creditors in France, Ambito, a local news agency, reported, notes Bloomberg News. * * * 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 US$539 million interest payment. Earlier that day, talks with a court- appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. 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: Argentine Economist Says Bond Holdouts Should Be Paid ---------------------------------------------------------------- Landon Thomas Jr., writing for The New York Times' DealBook, reports that Domingo Cavallo, the architect of Argentina's first debt restructuring deal in 2001, advised the country that the solution for its worsening debt drama is to pay the holdouts. "Argentina should comply with Judge Greisa's decision," Mr. Cavallo said at a conference to commemorate the 70th anniversary of the Bretton Woods system of global financial cooperation, according to The New York Times' DealBook. Mr. Cavallo was very critical of how Cristina Fernandez de Kirchner, the president of Argentina, has handled the crisis, The New York Times' DealBook discloses. "It's a disaster," Mr. Cavallo said, referring to the inflation and capital flight that has afflicted the economy of late. "She wants to blame what is happening now on the vultures," Mr. Cavallo added. If a new government comes in and stabilizes the economy with responsible policies, Mr. Cavallo said, he thinks that billions of dollars of capital that has left the country will return, reports DealBook. Under these improved economic conditions, Mr. Cavallo added, the government should be able to pay the so-called vulture investors. * * * 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 US$539 million interest payment. Earlier that day, talks with a court- appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. 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: Swaps Traders Set for US$532 Million Payout ------------------------------------------------------ Sridhar Natarajan, Abigail Moses and Katia Porzecanski at Bloomberg News report that sellers of credit-default swaps insuring Argentina's debt will have to pay US$532 million to settle about $880 million of derivatives wagers after the nation failed to pay interest on its bonds, according to results of an auction Sept. 4. The settlement was determined after traders set a final price for the government's debt at 39.5 percent of face value, according to Markit Group Ltd. and Creditex Group Inc., which administer the auction, Bloomberg News relates. That means sellers of the swaps, who pay buyers face value less the bond price set at the auction, will have to dole out 60.5 percent of the amount wagered, Bloomberg News notes. Bloomberg News discloses that Argentina's default swaps are being settled after the government missed a July 30 deadline because a U.S. judge's ruling barred it from making a US$539 million payment without resolving a dispute with creditors from a previous default. It's the first nation to trigger contracts in the US$18.3 trillion market since Greece restructured its debt in 2012. Bloomberg News relates that the payout size was boosted by a decision to include two disputed yen-denominated notes in the auction. Those securities, which trade cheaper than most of the country's other obligations, were included in a list of so-called "deliverable obligations" after a panel of dealers and investors ruled they were eligible, according to the International Swaps & Derivatives Association, says the report. Cheapest Bonds The payout also increased as auction participants pushed down the price of the bonds in a second phase of trading Sept. 4. Dealers had set an initial value of 40.25 cents on the dollar after the auction's first round, according to Markit and Creditex, Bloomberg News notes. "The final price of the auction ended up being relatively lower than the actively trading Argentina bonds," Donato Guarino, a strategist at Barclays Plc in New York, said by e-mail, Bloomberg News relays. That suggests the price was dictated by the cheapest yen-denominated debt eligible to be sold in the auction, Mr. Guarino said. "The open interest to buy was relatively small and it appears that the total amount of yen bond available for physical settlement was relatively large and matched that," Mr. Guarino said. Argentine bonds rallied the most in a month after demand for the defaulted securities was stronger than investors anticipated in the auction, according to Luis Caputo, a Buenos Aires-based money manager at Noctua International LLC, Bloomberg News says. Euro- denominated bonds due 2038 surged 1.4 cents on the dollar to 47.3 cents, the most since July 30, while dollar-denominated bonds due 2033 rose 2 cents to 82.6 cents, prices compiled by Bloomberg show. Signaling Optimism "The demand for bonds in the auction showed the market is optimistic the situation with holdouts will get resolved," Mr. Caputo said, referring to the group of creditors remaining from the nation's previous default in 2001, Bloomberg News relates. Credit swaps are used by investors to hedge against or speculate on the ability of companies and governments to repay their debt. There were 2,903 outstanding swaps contracts insuring a net $880 million of Argentina's debt as of Aug. 29, according to data from the Depository Trust & Clearing Corp., which runs a central registry that captures most trades, notes Bloomberg News. Markit and Creditex said last month that it stripped Argentina from 27 versions of its CDX EM Index, the report added. "The default will hurt consumer confidence, investment, and employment and make it more difficult for the sovereign and non- sovereign entities to gain access to external funding," Standard & Poor's analysts led by Delfina Cavanagh in Buenos Aires wrote in an Aug. 29 note, says Bloomberg News. "It could also result in higher inflation and increased pressure on the exchange rate," the analysts added. * * * 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 US$539 million interest payment. Earlier that day, talks with a court- appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. 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: New Debt Plan Looks Like a Long Shot ----------------------------------------------- Stewart Bishop at Law360 reports that Argentina's latest plan to snub the U.S. legal system and pay bondholders outside the reach of U.S. courts faces a difficult path toward implementation, as experts say executing a successful debt swap without the participation of intermediaries restricted by court orders will be exceedingly hard. Argentine President Cristina Fernandez announced the plan last week, saying she had sent a bill to the nation's Congress that would allow the country to pay its bondholders who had agreed to debt restructurings through local channels and would make payments to holdout hedge funds under the same terms agreed to by these so- called exchange bondholders, according to Law360. Law360 notes that last week's proposal was immediately denounced by some of the holdouts, which together possess around $1.5 billion worth of Argentine bonds, as well as by the federal judge overseeing the dispute, who deemed the plan illegal. But experts say several other problems could prevent Argentina's latest idea from succeeding, the report relates. Argentina's plan would allow investors to swap their current bonds for new ones organized under Argentine law. The country's leaders say they will seek the removal of the Bank of New York Mellon Corp. as trustee for the bonds, to be replaced by Argentina's central bank, the report discloses. But it's unclear how such a swap could happen without the participation of BNY and clearinghouse Depository Trust Co., which are subject to the U.S. court's equal payment injunctions, according to W. Mark C. Weidemaier, an associate professor of law at the University of North Carolina at Chapel Hill, the report notes. Under normal circumstances, a debt swap would involve the cancellation of the original bonds in connection with the issuance of new debt, the report says. But by agreeing to essentially freeze the $539 million that Argentina tried to send to the exchange bondholders, BNY has already made it clear it intends to comply with the court's orders and is not likely to assist Argentina in evading full payment to the hedge funds, the report relates. One thing is clear, Mr. Weidemaier said: "Argentina will stop making deposits on the bonds to BNY," reports Law360. But Mr. Weidemaier said the problem is that in order to issue new bonds to investors, Argentina would need to verify that those investors were the holders of the New York law bonds, which would be difficult without the cooperation of BNY or Depository Trust, the report notes. "You've got to be able to identify that someone is a holder of exchange bonds, and that would require information from an intermediary," the report quoted Mr. Weidemaier as saying. "It's hard to see how you get around that first problem, making sure that someone is actually a bondholder," Mr. Weidemaier added. Argentina's plan to skirt U.S. jurisdiction appears to mirror advice purportedly given to the country by its U.S. attorneys at Cleary Gottlieb Steen & Hamilton LLP, according to a confidential document that surfaced in May on the Argentine news and opinion site Seprin, before the Supreme Court's cert denial, the report notes. Under what looks like letterhead from Cleary Gottlieb's New York office, the Spanish-language document spelled out options for Argentina depending on how it fared with the U.S. high court, the report relates. The letter said Argentina was a position where it looked like the courts were obligating it to fall into default, as there was no middle option to resolve the dilemma created when the courts gave each of the holdout hedge funds the power to interrupt the rest of the payments on the bonds, the report relays. "It's for this reason that we believe, not counting on a revision by the Supreme Court of the lower court's decision, that the best option for the republic would be to let the Supreme Court force a default and immediately after restructure the [outstanding] bonds in a way where the payment mechanism and the other related features lay outside of the jurisdiction of the North American courts," the document said, notes Law360. Cleary has repeatedly declined to answer questions by Law360 about the authenticity of this document. Meanwhile, Argentina has also petitioned the International Court of Justice at the Hague for leave to bring a lawsuit for alleged U.S. violations of its sovereignty stemming from decisions in the case. However, that would require the U.S. to consent to the international court's jurisdiction. A State Department official told Law360 at the time of the petition that the U.S. does not view the ICJ as an appropriate venue for addressing Argentina's debt issues. Professor Julian Ku of the Maurice A. Deane School of Law at Hofstra University said Argentina's move in taking its case to the world stage shows it clearly is not going to submit to the orders of the U.S. court, the report relays. "It's a sign that a sovereign government has a lot of leverage," Mr. Ku said. "Even though the hedge funds are seemingly all- powerful, Argentina can just walk away," Mr. Ku added. * * * 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 US$539 million interest payment. Earlier that day, talks with a court- appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. 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 E R M U D A ============= ENERGY XXI: S&P Revises Outlook to Neg. & Affirms 'B+' CCR ---------------------------------------------------------- Standard & Poor's Ratings Services said it revised its rating outlook on Energy XXI (Bermuda) Ltd. and recently acquired EPL Oil & Gas Inc. to negative from stable. At the same time, S&P affirmed its 'B+' corporate credit ratings on the companies. S&P affirmed its 'B' issue ratings on subsidiaries Energy XXI Gulf Coast Inc.'s and EPL's existing senior unsecured debt. The recovery ratings on these debt issues remain '5', indicating S&P's expectation for modest (10% to 30%) recovery in the event of a payment default. S&P also affirmed its 'B-' issue-level rating on Energy XXI (Bermuda) Ltd.'s convertible debt. The recovery rating remains '6', indicating S&P's expectation for negligible (0%-10%) recovery in the event of a payment default. "The negative outlook reflects higher capital spending and weaker production output in fiscal 2015 than expected, which we expect will result in weaker credit measures over the next year," said Standard & Poor's credit analyst Mark Salierno. "With recent performance issues and the debt-financed acquisition of EPL, credit measures have weakened, and under our revised forecast, we believe debt reduction will be limited during this time." Capital spending will be about $100 million higher than S&P previously expected in fiscal 2015, resulting in slightly negative cash flow. S&P now estimates the company's FFO to debt will be between 15% and 20% and that debt to EBITDA will be in the 4x area by the end of fiscal 2015. S&P could lower the ratings if the company continues to encounter additional operating disruptions in the Gulf of Mexico that further hinder production and lead to higher capital spending needs or if crude oil prices drop meaningfully. S&P believes any of the above scenarios could suppress cash flow and make debt reduction more difficult, potentially causing the company to burn cash and overall liquidity to weaken. S&P would also consider a lower rating if the company fails to proactively address its covenant issues to allow for covenant cushion, which would restrict the company's ability to borrow under its revolving credit facility. S&P could revise the outlook to stable if the company is able to successfully address its operating issues over the next year and if the commodity price environment remains favorable, putting the company on the path toward generating positive free cash flow that can be applied to debt reduction, enabling the company to restore key credit measures and maintain adequate liquidity. This includes total debt to EBITDA below 4x and FFO to total debt approaching 20% or more on a sustained basis. ========================== C A Y M A N I S L A N D S ========================== ATLANTIC INTERNATIONAL: Creditors' Proofs of Debt Due Sept. 25 -------------------------------------------------------------- The creditors of Atlantic International Finance Limited are required to file their proofs of debt by Sept. 25, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 8, 2014. The company's liquidator is: Simon Conway c/o Andrew Nembhard Telephone: (345) 914 8779 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands CFG HOLDINGS: S&P Affirms 'B' Counterparty Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' counterparty credit rating on CFG Holdings, Ltd. (CFGLTD). At the same time, S&P affirmed its 'B+' rating on the $178 million seven-year senior secured notes co-issued by CFG Holdings Ltd. (CFGLTD) and its Delaware-based subsidiary CFG Finance LLC (not rated). The outlook on the counterparty credit rating is stable. "Our ratings on CFGLTD reflect its concentrated funding structure, reliance on market debt, profitability metrics which are lower than its consumer finance peers, and its limited financial flexibility. On the other hand, the company's satisfactory business profile, still adequate asset quality metrics for its customer risk profiles, and good capitalization metrics are positive credit factors," said Standard & Poor's credit analyst Barbara Carreon. The 'B+' rating on the $178 million senior secured notes is based on an unconditional and irrevocable guarantee by Caribbean Financial Group Holdings L.P. (CFGLTD's parent), Caribbean Financial Group Inc. (an affiliate of CFGLTD), and CFGLTD's existing and future subsidiaries. The rating on the notes reflects the creditworthiness of the consolidated operating subsidiaries, while the rating on CFGLTD reflects its status as a non-operating holding company. NAVIGATOR FIXED: Creditors' Proofs of Debt Due Sept. 24 ------------------------------------------------------- The creditors of Navigator Fixed Income Total Return Fund Limited are required to file their proofs of debt by Sept. 24, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 8, 2014. The company's liquidator is: Ogier c/o Joanne Huckle Telephone: (345) 815 1895 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands R-ONE AKITA: Creditors' Proofs of Debt Due Sept. 24 --------------------------------------------------- The creditors of R-One Akita Holdings are required to file their proofs of debt by Sept. 24, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 11, 2014. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 R-ONE ASAKA: Creditors' Proofs of Debt Due Sept. 24 --------------------------------------------------- The creditors of R-One Asaka Holdings are required to file their proofs of debt by Sept. 24, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 11, 2014. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 R-ONE IRUMA: Creditors' Proofs of Debt Due Sept. 24 --------------------------------------------------- The creditors of R-One Iruma Holdings are required to file their proofs of debt by Sept. 24, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 11, 2014. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 R-ONE NAGANO: Creditors' Proofs of Debt Due Sept. 24 ---------------------------------------------------- The creditors of R-One Nagano Holdings are required to file their proofs of debt by Sept. 24, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 11, 2014. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 R-ONE NISHIKASUGAI: Creditors' Proofs of Debt Due Sept. 24 ---------------------------------------------------------- The creditors of R-One Nishikasugai Holdings are required to file their proofs of debt by Sept. 24, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 11, 2014. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 R-ONE SAGA: Creditors' Proofs of Debt Due Sept. 24 -------------------------------------------------- The creditors of R-One Saga Holdings are required to file their proofs of debt by Sept. 24, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 11, 2014. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 R-ONE SEVEN: Creditors' Proofs of Debt Due Sept. 24 --------------------------------------------------- The creditors of R-One Seven Properties Holdings are required to file their proofs of debt by Sept. 24, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 11, 2014. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 R-ONE UTSUNOMIYA: Creditors' Proofs of Debt Due Sept. 24 -------------------------------------------------------- The creditors of R-One Utsunomiya Holdings are required to file their proofs of debt by Sept. 24, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 11, 2014. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 ============= J A M A I C A ============= * JAMAICA: Slight Decrease in Food Imports ------------------------------------------ RJR News reports that there was little movement in Jamaica's food import bill during the first five months of this year. Imports were valued at US$409 million, roughly J$700,000 less than last year, according to RJR News. The report notes that the marginal decline was due to lower importation of items such as cereals, sugars, vegetables and fruits. =========== M E X I C O =========== COATZACOALCOS: Moody's Affirms Ba2 Issuer Rating; Outlook Stable ---------------------------------------------------------------- Moody's de Mexico affirmed the Ba2/A2.mx issuer rating of the Municipality of Coatzacoalcos and changed the outlook on the ratings to stable from negative. Ratings Rationale Rationale For Outlook Change After the Municipality of Coatzacoalcos posted negative cash financing results between 2009 and 2012, the current administration's policy of curbing current expenditures and increasing own-source revenues bore fruit in 2013, when it had positive operating results of 9.4% and positive financing results of 11.0%. In 2013, Coatzacoalcos' own source revenues increased to 27% of total revenues, up from 19% in 2012, reflecting an increase in property tax collection and other fees. Moody's expects Coatzacoalcos to continue to post positive results in 2014 and 2015, albeit lower than in 2013 as capital spending accelerates, driven by expenditure on public lighting. Rationale For Rating Affirmation The affirmation of Coatzacoalcos' rating reflects low levels of net direct and indirect debt, levels of net working capital in line with Ba2-rated municipalities, and the volatility in its financial results. Coatzacoalcos reduced its net direct and indirect debt levels to 11.1% of operating revenues in 2013, from 46.5% in 2010. A result of the federal government's zero coupon refinancing operation, the reduction leaves Coatzacoalcos with net debt levels that are currently below those of its Ba2-rated peers. Between 2009 and 2013, Coatzacoalcos' net working capital averaged 8.3% of operating expenditures, in line with its Ba2-rated peers. Finally, Coatzacoalcos' gross operating balance has been traditionally above that exhibited by Ba2 Mexican municipalities, although its consolidated results have been volatile over the past five years. What Could Change The Rating Up/Down Possible sources of upward pressure on Coatzacoalcos' issuer ratings are a continuing positive gross operating balance, an increase in net working capital, and growing financial surpluses. Conversely, a relaxation in fiscal consolidation, an increase in debt levels, and/or further deterioration of working capital could exert downward pressure on the issuer ratings. The principal methodology used in this rating was Regional and Local Governments published in January 2013. The period of time covered in the financial information used to determine Coatzacoalcos' rating is between 1 January 2009 and 31 December 2013. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in June 2014 entitled "Mapping Moody's National Scale Credit Ratings to Global Scale Credit Ratings". DOCUFORMAS S.A.P.I.: S&P Affirms 'B+' Rating; Outlook Stable ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B+' global scale and 'mxBBB/mxA-3' Mexican national scale ratings on Docuformas S.A.P.I. de C.V. The outlook remains stable. The ratings on Docuformas reflect its concentrated business risk profile, strong competition in the leasing market in Mexico, and its high reliance on market debt. On the other hand, its satisfactory asset quality, good profitability ratios, and adequate capitalization levels supported by internalcapital generation are positive factors for the rating. On June 30, 2014, Docuformas announced its intention to acquire Analistas de Recursos Globales SAPI de CV (ARG; not rated) for Mexican peso (MXN) 402 million. Shareholders will fund MXN150 million and the remainder will be funded with debt. The acquisition is pending regulatory approval. "If finalized, we don't believe the acquisition will have an immediate impact on the ratings on Docuformas, because, although some financial indicators could deteriorate, it will strengthen its business risk position," said Standard & Poor's credit analyst Ricardo Grisi. SANLUIS RASSINI: S&P Raises CCR to 'BB-'; Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on SANLUIS Rassini S.A. de C.V. (SANLUIS Rassini) to 'BB-' from 'B+'. The outlook is stable. The rating action reflects S&P's reassessment of SANLUIS Rassini's financial policy modifier to "neutral" from "negative." "In our view, this reflects the company's commitment to improve its credit metrics not only through stronger top line growth, but most importantly, through debt reduction," said Standard & Poor's credit analyst Luis Manuel Martinez. SANLUIS Rassini has benefited from the currently positive momentum in the U.S. auto industry, which has resulted in improved operating performance and cash flow generation. Moreover, the company prepaid a portion of its debt for approximately $80 million for the past two years, which mitigated the refinancing risk of its fourth-quarter 2014 debt maturity. In addition, S&P do not expect the company to significantly leverage its capital structure in the short to medium term, which is in line with its financial policy that the leverage ratio would remain below 2.0x at all time. ====================== P U E R T O R I C O ====================== DORAL FINANCIAL: Settlement Falls Apart in US$229MM Tax Row ----------------------------------------------------------- Brian Mahoney at Law360 reports Doral Financial Corp., in a regulatory filing, said that a US$229 million tax dispute between Doral Financial Corp. and the government of Puerto Rico will likely go to trial after the two sides failed to finalize a settlement agreement. Talks fell through after Puerto Rico requested changes to the deal and Doral rejected them, according to Doral attorney Matthew McGill -- mmcgill@gibsondunn.com -- of Gibson Dunn & Crutcher LLP, reports Law360. The report notes that Doral Financial said it is owed hundreds of millions of dollars in overpaid taxes. The proposed settlement agreement had called for Puerto Rico to grant Doral a tax asset, which it could then sell and convert to cash using vouchers, the report discloses. The government removed key terms regarding the tax asset, Mr. McGill said, notes the report. It offered Doral vouchers under a Treasury-provided revenue ruling which Doral said could be subject to revocation. "What the government of Puerto Rico did at the eleventh hour [is send] to Doral's side a mark-up of the settlement agreement that changed fundamental terms, after midnight on [Aug. 24]," Mr. McGill told reporters, the report relays. The Treasury of Puerto Rico, meanwhile, lobbed similar charges at Doral. Under Doral's amended proposal, the tax asset, dubbed the IO Asset, would be considered a security under local and federal laws, even though legislative approval is required for such an issuance, the report discloses. "Accordingly, on Friday, Aug. 22, Treasury presented Doral with its suggested changes to the contract," the department said in a statement obtained by the news agency. "The changes stipulated that the issuer of the voucher should be Doral, as the IO asset is a Doral asset, not an asset of the commonwealth. The government will vigorously defend its rights in the court," the statement added. Mr. McGill said a trial is set for Sept. 16 in Puerto Rico. Prior to that there will be a period of expedited discovery. Doral is set to depose major Puerto Rico government officials this week, including its Secretary of Treasury Melba Acosta Febo, the report notes The case dates back to 2006, when Doral claimed it had significantly overpaid its taxes for a period between 2000 and 2004, the report recalls. Puerto Rico then reached an agreement to give Doral a tax asset of more than US$880 million that it could amortize over 15 years, Mr. McGill said, the report relays. In 2012, Doral agreed to recharacterize that tax asset as a US$229 million tax overpayment that could be paid within five years, the report notes. Doral's current lawsuit, filed in June, now seeks that $229 million payment after it said Puerto Rico voided the deal. "That's what the case really is about," the report quoted Mr. McGill as saying. "The government owes Doral money and the government doesn't want to pay. And we'll go to court to make them pay," Mr. McGill added. The looming trial comes several months after Doral said in a filing with the U.S. Securities and Exchange Commission that the Federal Deposit Insurance Corp. had directed it to exclude about US$289 million of the bank's $679 million of Tier 1 capital, saying it could not include certain tax receivables from the government of Puerto Rico in its calculations. The determination meant Doral was no longer in compliance with its capital requirements under a prior consent order reached with the government, according to the company, which operates Puerto Rico's only community bank, the report relays. Doral has said it's working to create a revised capital plan, according to information on a company website. Doral is represented by Matthew McGill of Gibson Dunn & Crutcher LLP. The case is Doral Financial Corp., et al. v. Commonwealth of Puerto Rico in the Commonwealth of Puerto Rico, Civil Court of First Instance, San Juan Superior Division. * * * As reported in the Troubled Company Reporter on May 9, 2014, Standard & Poor's Ratings Services said it lowered its issuer credit rating on Doral Financial Corp. to 'CC' from 'CCC-' and placed the rating on CreditWatch with negative implications. Based in New York City, Doral Financial Corp. (NYSE: DRL) -- http://www.doralfinancial.com/-- is a diversified financial services company engaged in mortgage banking, banking, investment banking activities, institutional securities and insurance agency operations. Its activities are principally conducted in Puerto Rico and in the New York City metropolitan area. Doral is the parent company of Doral Bank, a Puerto Rico based commercial bank; Doral Securities, a Puerto Rico based investment banking and institutional brokerage firm; Doral Insurance Agency Inc. and Doral Bank FSB, a federal savings bank based in New York City. PUERTO RICO ELECTRIC: Eyes AlixPartners, FTI for Restructuring -------------------------------------------------------------- Nick Brown and Megan Davies, writing for Reuters, reported that turnaround experts from AlixPartners and FTI Consulting are among those being considered to lead the restructuring of Puerto Rico's troubled power authority PREPA, according to four people close to the matter, and an announcement could come this week. PREPA, whose debt troubles are a symbol of the wider troubles threatening the U.S. territory, must select a restructuring chief by Monday (Sept. 8) under a forbearance agreement with lenders and other creditors as it undertakes to restructure more than $9 billion in debt, notes the report. The officer will negotiate with creditors on PREPA's behalf and lead efforts to develop a business plan by March, the report adds. Reuters, citing the people who declined to be named because the hiring process is confidential, said AlixPartners' Lisa Donahue and FTI's Scott Davido are among the small group of candidates for the post of chief restructuring officer. One of the people said Joff Mitchell, of turnaround advisory firm Zolfo Cooper, was also being considered. All three candidates have experience restructuring companies in the energy sector, which could be key in a much-needed overhaul of the power authority's business, notes Reuters. An announcement could come this week, ahead of Monday's deadline, two of the people said, Reuters relates. PREPA called the appointment of a restructuring officer by Sept. 8 "the first key milestone" in its agreements with creditors. "The board is confident in its ability to meet the deadline specified in the agreement, but at this time, no decisions have been made," PREPA said in an emailed statement, the report added. * * * The Troubled Company Reporter - Latin America, on Aug. 4, 2014, reported that Standard & Poor's Ratings Services has lowered its rating on Puerto Rico Electric Power Authority's (PREPA) power revenue bonds two notches to 'CCC' from 'B-'. The rating remains on CreditWatch with negative implications, where S&P originally placed it June 18, 2014. S&P said the absence of an overarching solution to liquidity issues and the structural imbalance among its revenues, operating expenses and debt service commitments suggests an increasing likelihood that the authority will not be able to satisfy debt service obligations on time and will avail itself of the Puerto Rico Public Corporation Debt Enforcement and Recovery Act, signed into law June 28, 2014, and restructure all or portions of its debt. ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN AIRLINES: Pays Millions in Outstanding Fees ----------------------------------------------------- RJR News reports that Transport Minister Dr. Omar Davies said Caribbean Airlines Limited has paid over millions of dollars in outstanding fees, which were owed to several local agencies. "They have cleared their arrears. In terms of service level, there have been other airlines which have come in those instances where they have cut back. So, there's no shortage of airlift to Jamaica. But although there has been a change in Caribbean Airlines stroke Air Jamaica's share of that airlift," Dr. Davies told RJR News. RJR News notes that reports surfaced two years ago that Caribbean Airlines had racked up US$1.5 million in debt to the Jamaica Civil Aviation Authority and the Norman Manley International Airport. The money was for unpaid airport fees and outstanding taxes. About Caribbean Airlines Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on July 11, 2014, Trinidad and Tobago Newsday said that Caribbean Airlines is facing another loss. However, Finance Minister Larry Howai is hopeful the loss could be narrowed down to less than TT$100 million, according to Trinidad and Tobago Newsday. Mr. Howai noted the airline industry is not the easiest and many airlines have gone bankrupt at some point. Citing Caribbean360.com, the TCRLA on May 20, 2013, said Minister Howai said Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. In 2011, CAL had recorded losses of US43.7 million. TRINIDAD CEMENT: In Talks With OWTU on Firm's Future ---------------------------------------------------- Verne Burnett at Trinidad and Tobago Newsday reports that the Oilfields Workers Trade Union (OWTU) said it is optimistic of a bright future at Trinidad Cement Ltd following a two-hour exploratory meeting on Aug. 22, 2014. The meeting was between a union team led by OWTU President Ancil Roget, TCL New chairman Wilfred Espinet, and the company's acting group chief executive officer, Alejandro Alberto Ramirez. The meeting took place at TCL's Claxton Bay headquarters. In a brief telephone conversation with Trinidad and Tobago Newsday, Mr. Roget expressed satisfaction with the talks. Also attending the meeting was Edward Durity, the acting president of the OWTU branch at TCL. Mr. Durity said it was a very good meeting at which both sides exchanged views about the future of the company, according to the report. "And the key factor is that we, as workers, want to see the company do well. If the company falls, then we all will be out of a job. So in that light we are going forward talking about what part the workers can play. We have to get everybody on board and things will progress from there," the report quoted Mr. Durity as saying. The report notes that Mr. Espinet confirmed the meeting, telling Sunday Newsday that it was the company's move to open communications with the union. The report relates that Mr. Espinet said the meeting was "exceptionally well received on both sides," adding that "part of the process that we are committed to doing is mending fences and re-establishing some kind of respectful relationship between us and our stakeholders. Naturally, the employees are first and foremost on that list. So it was evident that we had to meet the union as a courtesy to at least introduce ourselves to them." The report discloses that Mr. Espinet said the objective of the meeting was to let the union know "who we are and some of what we believe in." Mr. Espinet added that it was essentially to assure the union that the company wanted to have a respectful relationship and open dialogue with its workforce "so there doesn't have to be this level of conflict in everything that we do." Mr. Espinet said that after the talks he was hopeful that the company and the union will be able to work together in the future to overcome a lot of the difficulties they will face, the report notes. Mr. Durity said the company also agreed to look at a proposal to have dismissed TCL workers return to work. The report recalls that Mr. Durity and nine union officers were suspended and subsequently dismissed by TCL in 2012 following strike action called by the OWTU. The strike began on February 27, 2012, after the union rejected the company's offer of a 6.5 percent wage increase for a three-year industrial agreement when the union was seeking a 16 percent increase, the report relates. Mr. Durity remained optimistic that all the dismissed workers would return to work under the new board. The report relays that Mr. Durity said the company undertook to have its lawyers consider the matter to see how it could be resolved without further expense on legal fees. The report notes that Mr. Espinet said there are a number of legal issues outstanding with a number of workers. "The board's resolution that was passed on that was that all of our legal engagements have to be addressed immediately as to how we are going to treat to disengage from them as quickly as possible in the most cost-effective way. And we put as a priority, of course, the staff which is in some legal tangle," the report quoted Mr. Espinet as saying. The report notes that Mr. Espinet said the company's legal advisers have been mandated to examine the matter and come up with a solution for dealing with those matters as a priority. Mr. Espinet said that as soon as the board is advised on how to move forward it will quickly find a way to resolve all those outstanding matters "which are easily resolvable," the report discloses. Mr. Espinet added that although the meeting with the trade union was a good meeting, the workers represent only one of the stakeholders which the new board has to deal with, the report notes. Mr. Espinet pointed out that there are the lenders and the shareholders to deal with as well as a number of other stakeholders, the report relays. Mr. Espinet said there is no schedule for when the new board will engage with those other stakeholders but observed that "it is an ongoing exercise. All of which have to be done so that we will be keeping the deadlines that we have set for ourselves. A lot of these things are going to be worked simultaneously," Mr. Espinet added, the report relays. The report notes that Mr. Espinet said when the financial and operational assessments are completed they will give the new board a sense of the company's position and they will then take that and prepare a roadmap for the future. Mr. Espinet added that "a plant of this nature does not come without a lot of difficulties and the condition that it is in is not an easy one," the report relays. Meanwhile, commenting on the recent movement in the price of the company's shares on the Trinidad and Tobago Stock Exchange, Mr. Espinet cautioned investors and prospective investors not to get carried away, the report relates. Mr. Espinet said there was "a lot of exuberance going around and I understand that but there are no miracles that are going to be worked here in any quick space of time. And there are great risks involved . . . so don't jump onto this as a bandwagon but please make the necessary cautious approach to investing," the report adds. The price of the stock remained unchanged at $2.85 at the end of Aug. 23's trading on the stock market. * * * As reported in the Troubled Company Reporter - Latin America on September 4, 2014, the Trinidad and Tobago Newsday said the newly elected board of directors of Trinidad Cement Limited has suspended TCL's Group Chief Executive Officer Dr. Rollin Bertrand, and long-standing director, Alejandro Alberto Ramirez, was appointed as acting CEO. Businessman Wilfred Espinet was appointed chairman of the company. On Aug 25, 2014, the TCRLA said prominent Jamaican businessman Chris Dehring was among seven new members appointed to the Board of TCL, according to the RJR News. Six directors of TCL including, Chairman Andy Bhajan resigned on Aug. 19, minutes before a special meeting by shareholders was due to be held to vote them out, said the report. The shareholders later voted in the new directors. The resignation of the directors, including Chief Executive Officer Dr. Rollin Bertrand came a few hours after Trinidad Cement lost an application in the Court of Appeal in Port of Spain for an injunction to block the meeting. At that time, Mr. Bertrand resigned as a director but maintained his position as chief executive officer. On May 8, 2014, the TCR-LA reported that Fitch Ratings assigned these initial ratings to Trinidad Cement Limited Group (TCL Group): --Foreign currency Issuer Default Rating (IDR) 'B-'; --Local currency IDR 'B-'; --Expected senior secured note issuance of up to USD325 million 'B-/RR4'. Trinidad Cement Limited is a cement company and is the parent company of Caribbean Cement Company Limited. *********** 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 * * *