/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/141009.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, October 9, 2014, Vol. 15, No. 200 Headlines A R G E N T I N A ARGENTINA: Vanoli Leaves Auction Rates Little Changed INDUSTRIAS METALURGICAS: S&P Cuts CCR to D on Missed Bond Payment INDUSTRIAS METALURGICAS: Pescarmona Sought Gov't Bailout for IMPSA B A H A M A S ULTRAPETROL (BAHAMAS): Board Taps Damian Scokin as CEO B R A Z I L BANCO PINE: S&P Affirms 'BB+/B' Rating; Outlook Negative COSAN LTD: S&P Affirms BB Rating & Alters Outlook to Developing C A Y M A N I S L A N D S AZIMUTH FUND: Creditors' Proofs of Debt Due Oct. 13 CHIMES MS FUND: Creditors' Proofs of Debt Due Oct. 13 CO-INVESTMENT LIMITED: Commences Liquidation Proceedings LDK SOLAR: To Hold Separate Meetings for Scheme Creditors OCTANT FUND: Creditors' Proofs of Debt Due Oct. 13 ORTHOGONAL FUND: Creditors' Proofs of Debt Due Oct. 13 PLURIMI (CAYMAN): Creditors' Proofs of Debt Due Oct. 22 PLURIMI GLOBAL: Creditors' Proofs of Debt Due Oct. 22 PLURIMI GLOBAL MASTER: Creditors' Proofs of Debt Due Oct. 22 SAAD INVESTMENTS: Creditors Meeting Set for Oct. 28 SEVEN SEAS: Creditors' Proofs of Debt Due Oct. 22 TITAN PETROCHEMICALS: Scheme Creditors to Meet on Oct. 22 VBT BANK: Shareholders Receive Wind-Up Report C H I L E GOLDCORP: Chilean Supreme Court Orders Halt to Mine LATAM AIRLINES: System Passenger Traffic Up by 5.5% in August LATAM AIRLINES: S&P Revises Outlook to Stable & Affirms BB Rating C O S T A R I C A BANCO POPULAR: Fitch Affirms 'BB+' Issuer Default Rating J A M A I C A AIR JAMAICA: Landlords Seek Takers for Office Space JAMAICA: Union Boss Wants Workforce Impact of Chikungunya Assessed P U E R T O R I C O AEROSTAR AIRPORT: Moody's Lowers Rating on $350MM Sr. Notes to Ba2 METROPISTAS: Moody's Downgrades Rating on $435MM Sr. Notes to Ba3 T R I N I D A D & T O B A G O TRINIDAD CEMENT: Fitch Lowers Issuer Default Ratings to 'D' - - - - - ================= A R G E N T I N A ================= ARGENTINA: Vanoli Leaves Auction Rates Little Changed ----------------------------------------------------- Camila Russo at Bloomberg News reports that Argentina's Central Bank President Alejandro Vanoli left interest rates little changed in the first peso note auction since he was appointed. According to the report, Argentina's monetary authority sold ARS11.9 billion (US$1.4 billion) of notes maturing in 98 to 357 days to yield 26.86 percent to 29.29 percent Oct. 7. Last week, before Mr. Vanoli was appointed, the bank sold ARS6.8 billion of 91 to 301-day notes at 25.58 percent to 29.15 percent. Central bank note yields are a benchmark for deposit and lending rates. Bloomberg News discloses that President Cristina Fernandez de Kirchner named former securities regulator Mr. Vanoli head of the central bank on Oct. 1 after Juan Carlos Fabrega resigned. Bloomberg News says that since Mr. Fabrega was appointed in November, he devalued the local currency by the most since 2002 and pushed interest rates on the peso notes, known as Lebacs, to the highest in a decade. While Mr. Fabrega's policies were aimed at boosting reserves, they also contributed to deepening the economic slowdown, said Carlos Planas, portfolio manager at Axis Inversiones, Bloomberg News notes. Mr. Vanoli's policies will probably seek to boost economic growth, Mr. Planas said. "The central bank will probably try to not generate big changes in policy; there won't be big increases in interest rates," Mr. Planas told Bloomberg News in an interview from Buenos Aires. "They don't want to affect the level of activity," Mr. Planas added. Bloomberg News relays that the central bank drained pesos from the economy with the auction as ARS9.7 billion came due. Policy makers have drained about ARS90 billion this year through the central bank's auction, Bloomberg News notes. Mr. Fabrega resigned after Fernandez publicly criticized the institution for allegedly leaking inside information. In his first meeting with bank executives, Mr. Vanoli called for financial institutions to boost lending, stimulate peso savings and said he'll apply a strict control over foreign currency rules, according to a statement from the monetary authority, Bloomberg News adds. * * * 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. INDUSTRIAS METALURGICAS: S&P Cuts CCR to D on Missed Bond Payment ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered the corporate credit rating on Industrias Metalurgicas Pescarmona S.A.I.C. y F. (IMPSA) and WPE International Cooperatief U.A. (WPEIC) to 'D' from 'CC'. S&P also lowered the issue-level rating on WPEIC's bullet 2020 bond to 'D' from 'CC'. At the same time, S&P affirmed the 'CC' issue-level rating on IMPSA's Series I notes. "The rating action reflects IMPSA's nonpayment on its series VIII and IX local bonds, which were due Sept. 26, 2014 and for which the 5-day grace period ended on Oct. 3, 2014," said Standard & Poor's credit analyst Cecilia Fullone. The downgrade also reflects S&P's expectation that the group won't make any payments on its remaining past due financial obligations within the applicable grace periods. S&P affirmed the rating on IMPSA's Series I bond due Oct. 22, 2014 at 'CC'. However, although the company has yet to default on this obligation, S&P believes default is a virtual certainty as the company already announced it planned to postpone the coupon and interest payments on all its financial obligations. INDUSTRIAS METALURGICAS: Pescarmona Sought Gov't Bailout for IMPSA ------------------------------------------------------------------ Pablo Gonzalez at Bloomberg News reports that Enrique Pescarmona, owner of Argentina's biggest renewable energy company, had sought government bailout as overdue payments from the group's biggest client in Venezuela left it short of cash for looming bond payments, according to two people with knowledge of the talks. Mr. Pescarmona, who owns turbine maker Industrias Metalurgicas Pescarmona SA (Impsa) through Luxembourg-based Venti SA, met Sept. 11, with Argentine authorities to discuss possible government assistance, the people said, asking not to be identified because an agreement may not be reached, according to Bloomberg News. Mr. Pescarmona met with President Cristina Fernandez de Kirchner in August, sources said. Bloomberg News notes that Argentina Economy Minister Axel Kicillof and Industry Secretary Debora Giorgi held meetings with Pescarmona, Buenos Aires-based daily Cronista reported. Bloomberg News relays that Mr. Pescarmona was struggling to get Venezuela's state-run power company to pay its bills as the group faced a US$20 million interest payment at the end of September on US$390 million of dollar bonds backed by his holding company Venti. Those notes have lost more than two-thirds of their value in the past three months. Mendoza-based unit Impsa also faced a Sept. 18 payment on ARS96.5 million (US$11.5 million) of local securities, Bloomberg News recounts. Venezuela's Corpoelec SA owes Venti about US$500 million. One proposal put forward by Impsa adviser Quantum Finanzas was for the government to take a non-controlling stake, one of the people said, Bloomberg News discloses. Impsa was late servicing its peso denominated bonds in July and was downgraded by Fitch to CCC from B+. It reported a ARS62.2 million net loss for the second quarter, compared with a loss of ARS317 million in the same year-ago period, Bloomberg News says. In the earnings statement, Impsa said Corpoelec, which represents 76 percent of its receivables, was expected to pay in full, allowing the company to continue operating, Bloomberg News adds. Industrias Metalurgicas Pescarmona S.A.I.C. y F. provides integrated solutions for power generation from renewable resources, equipment for the process industry, and environmental services. ============= B A H A M A S ============= ULTRAPETROL (BAHAMAS): Board Taps Damian Scokin as CEO ------------------------------------------------------ Ultrapetrol (Bahamas) Limited disclosed the completion of a share purchase transaction with respect to the sale of shares of Ultrapetrol between the major shareholders of the Company under terms previously announced on July 13, 2014. In the transaction, Sparrow Capital Investments Ltd., a subsidiary of Southern Cross Latin America Private Equity Funds III and IV, purchased all of the outstanding Ultrapetrol equity interests held by Hazels (Bahamas) Investments Inc., Inversiones Los Avellanos S.A. and certain entities affiliated with them, increasing Southern Cross' interest in the Company from 67% to 85%. Under the terms of the agreement, Sparrow acquired from Hazels, Los Avellanos, and certain entities affiliated with them, the rights to 25,326,821 shares of common stock of the Company at a price equivalent to US$4.00 per share of Common Stock. With the completion of the transaction, the equity capital of the Company is now comprised exclusively of shares with equal voting rights of one vote per share. As previously announced, as part of the transaction, Felipe Menendez and Ricardo Menendez will step down from their respective CEO and Executive Vice President positions, but remain with Ultrapetrol as directors. Simultaneously with Southern Cross' acquisition, the Company's Board of Directors announced that it has selected Damian Scokin to become Ultrapetrol's new Chief Executive Officer, starting November 2014. Until that time, Horacio Reyser, the Company's Chairman and a Partner at Southern Cross Group, will serve as Interim CEO. Damian Scokin has until now been the CEO of the International Businesses of Latam Airlines Group, the largest airline in South America. Prior to his almost ten years with Latam, he was a Partner at McKinsey & Company, where he worked for another ten years. Mr. Scokin was trained as an Industrial Engineer and Economist at Universidad de Buenos Aires and has an MBA from Harvard Business School. Horacio Reyser, Chairman of Ultrapetrol and a Southern Cross partner, said, "I would like to thank Felipe and Ricardo Menendez for their important contributions to Ultrapetrol over the years, from their vision in founding the Company in 1992, to creating a leading shipping company focused on attractive markets, and now for their guidance as Ultrapetrol moves into this new chapter of its history. "Southern Cross made its first investment in the Company in December 2012 and throughout the subsequent 20 months, we worked with management to reduce the Company's leverage, increase exposure to the growing deep-sea offshore segment and reduce the volatility of the river business operations. I am very optimistic about the Company's future outlook. As part of its investment strategy, Southern Cross plans to continue working alongside Ultrapetrol's management to further improve the operating efficiency and asset profitability of the Company's River business and to explore new and innovative alternatives to grow in the Offshore segment, both in Brazil and in other regions. We are also thankful for the strong support that we have received from shareholders and we are committed to engaging with investors in an open and transparent manner as we seek to unlock Ultrapetrol's full potential. "We look forward to having Damian Scokin join Ultrapetrol as our new CEO during an exciting time for the Company. His deep experience in Latin American transportation and logistics will serve Ultrapetrol well as we continue to focus on capitalizing on the compelling fundamentals and strong growth potential of the Company's core businesses and maximizing long-term value for all shareholders." Ultrapetrol (Bahamas) Limited, headquartered in Nassau, Bahamas, is a diverse international marine transportation company. The company operates in three segments: River, Offshore Supply, and Ocean. Last twelve months ended June 30, 2013, revenues totaled $369 million. * * * As reported in the Troubled Company Reporter-Latin America on May 22, 2014, Standard & Poor's Ratings Services raised its ratings on Ultrapetrol (Bahamas) Ltd., including the corporate credit rating to 'B' from 'B-'. The outlook is stable. =========== B R A Z I L =========== BANCO PINE: S&P Affirms 'BB+/B' Rating; Outlook Negative -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+/B' global scale and 'brAA' national scale ratings on Banco Pine S.A. (Pine). The outlook on remains negative. "We based our ratings on Pine's "strong" risk position reflected in its strong asset quality and conservative risk management, "adequate" liquidity, and "adequate" capital and earnings. The bank's "moderate" business position given its small scale in the Brazilian financial system and concentration in the corporate and small and medium enterprise (SME) segments, as well as its relatively concentrated funding profile compared to other Latin American banks, offset the positives. The bank's stand-alone credit profile (SACP) is 'bb+'," S&P said. "Under our bank criteria, we use our BICRA economic and industry risk scores to determine a bank's anchor, the starting point in assigning an issuer credit rating. Our anchor for a commercial bank operating only in Brazil is 'bbb-', based on the banking sector's economic risk score of '6' and industry risk score of '5'. The economic risk reflects Brazil's low GDP per capita levels and only modest growth prospects that limit household credit capacity and the country's ability to withstand economic downturns. It also considers our view that economic imbalances have increased as a result of rapid credit expansion amid a slowly growing economy, which isn't likely to pick up for the next two years, further increasing the household debt burden. In addition, we expect Brazil's external vulnerability to rise somewhat over the next several years, which also contributes to our "high risk" assessment for economic imbalances. However, the Brazilian corporate sector's moderate leverage and the absence of high-risk loans somewhat mitigate the higher risk factors in our economic risk assessment," S&P added. "Our industry risk score of '5' reflects our belief that the industry risks in Brazil's banking sector continued to increase. In our view, there are growing market distortions due to an increasing market share of loans from publicly owned banks during the past two years and an increasing spread differential between public and private banks, which have reduced the sector's profitability. Extensive coverage, effective supervision of the financial system, and an adequate and stable deposit base support our industry risk assessment," S&P added. "The negative outlook means that there is at least a one in three chance that we will lower the ratings on the bank in the next 18 months, which stems from pressure on the bank's capital under our RAC methodology," said Standard & Poor's credit analyst Vitro Garcia. S&P could lower the ratings if Pine doesn't generate enough internal capital to maintain an average RAC ratio above 7% for the next 24 months, or if S&P notices consistently lower revenues diversification, which could lead to a lower business position score. On the other hand, if the bank boosts its capital significantly above the 7% threshold for the next 24 months, S&P could change the outlook to stable. COSAN LTD: S&P Affirms BB Rating & Alters Outlook to Developing --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Cosan Ltd. (CZZ) and Cosan S.A. Industria e Comercio (Cosan S.A.) to developing from positive. At the same time, S&P affirmed its 'BB' rating on both companies. The developing outlook indicates that the ratings trajectory on both companies depends on the regulatory approvals for the merger of America Latina Logistica S.A. (ALL; not rated) with Cosan group's logistic subsidiary, Rumo, and its impact on the new company's capital structure. If the regulators won't approve the transaction, S&P could upgrade the Cosan group given its consistent debt reduction. However, if the merger is approved without restrictions and considering current capital structures, CZZ's credit metrics will likely weaken. In addition, S&P expects a slower debt reduction on a consolidated basis, given ALL's significant investment plan, limiting rating upside. "With the recently announced spin-off of Rumo to the newly created logistics holding company, Cosan Logistica, we view Cosan S.A. as a core subsidiary to CZZ, the ultimate non-operating holding company," said Standard & Poor's credit analyst Renata Lotfi. ========================== C A Y M A N I S L A N D S ========================== AZIMUTH FUND: Creditors' Proofs of Debt Due Oct. 13 --------------------------------------------------- The creditors of Azimuth Fund Limited are required to file their proofs of debt by Oct. 13, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 2, 2014. The company's liquidator is: Richard Fear c/o Daniel Woolston Telephone: (345) 814 7782 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands CHIMES MS FUND: Creditors' Proofs of Debt Due Oct. 13 ----------------------------------------------------- The creditors of Chimes MS Fund Limited are required to file their proofs of debt by Oct. 13, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 5, 2014. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands CO-INVESTMENT LIMITED: Commences Liquidation Proceedings -------------------------------------------------------- On Aug. 29, 2014, the shareholders of Co-Investment Limited XI (Da/Viterra) 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: Cititrust (Bahamas) Limited c/o Citigroup Fund Services (Cayman), Ltd. 27 Hospital Road, Fifth Floor Cayman Corporate Centre George Town Grand Cayman, KY1-1003 Cayman Islands c/o Schell Stubbs Telephone: (242) 302-8714 LDK SOLAR: To Hold Separate Meetings for Scheme Creditors --------------------------------------------------------- LDK Solar Co., Ltd, which is under provisional liquidation, will hold separate meetings for its scheme class creditors to consider and if thought fit, approve (with or without modification) a scheme arrangement pursuant to section 86 of the Companies Law proposed to be made between LDK Solar and LDK Silicon & Chemical Technology Co., Limited. Each scheme class meeting will be held at the offices of Campbells at Floor 4, Willow House, Cricket Square, in George Town, PO Box 884, Grand Cayman, Cayman Islands KYI-1103. The scheme class meetings will be held as: -- The preferred obligation scheme creditors will be entitled to vote at the LDK Silicon CI Preferred Meeting and the LDK Solar CI Preferred Meeting on Oct. 16, 2014, at 8:00 p.m., and 8:10 p.m., (Cayman Islands time) respectively; -- The Senior Note Scheme Creditors will be entitled to vote at the CI Senior Note Meeting on Oct. 16, 2014, at 8:20 p.m. (Cayman Islands time); -- The Ordinary Scheme Creditors will be entitled to vote at the LDK Solar CI Ordinary Meeting on Oct. 16, 2014, at 8:30 p.m. For further information, use these contacts: If you are Senior Note Scheme Creditors or CN Holder contact: Lucid Issuer Services Limited Leroy House 436 Essex Road London N+ 3QP United Kingdom Attention: Sunjeeve Patel/ David Shilson Telephone: +44 20 7704 0880 Facsimile: +44 20 7087 9098 If you are Preferred Obligation Scheme Creditors or Ordinary Scheme Creditor that is not a CN Holder, contact: Zolfo Cooper (Cayman) Ltd. 10 Market Street Camana Bay Grand Cayman P.O. Box 776 Cayman Islands KYI-9006 Attention: Iain Gow/ Emma Storry Telephone: +1 (345) 946 0081 Facsimile: +1 345 946 0082 OCTANT FUND: Creditors' Proofs of Debt Due Oct. 13 -------------------------------------------------- The creditors of Octant Fund Limited are required to file their proofs of debt by Oct. 13, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 2, 2014. The company's liquidator is: Richard Fear c/o Daniel Woolston Telephone: (345) 814 7782 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ORTHOGONAL FUND: Creditors' Proofs of Debt Due Oct. 13 ------------------------------------------------------ The creditors of Orthogonal Fund Limited are required to file their proofs of debt by Oct. 13, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 2, 2014. The company's liquidator is: Richard Fear c/o Daniel Woolston Telephone: (345) 814 7782 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands PLURIMI (CAYMAN): Creditors' Proofs of Debt Due Oct. 22 ------------------------------------------------------- The creditors of Plurimi (Cayman) GP Limited are required to file their proofs of debt by Oct. 22, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 1, 2014. The company's liquidator is: Victor Murray MG Management Ltd. P.O. Box 30116 Landmark Square, 2nd Floor, 64 Earth Close Seven Mile Beach Grand Cayman KY1-1201 Cayman Islands Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 PLURIMI GLOBAL: Creditors' Proofs of Debt Due Oct. 22 ----------------------------------------------------- The creditors of Plurimi Global Opportunities (No. 1) Feeder Fund Limited are required to file their proofs of debt by Oct. 22, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 1, 2014. The company's liquidator is: Victor Murray MG Management Ltd. P.O. Box 30116 Landmark Square, 2nd Floor, 64 Earth Close Seven Mile Beach Grand Cayman KY1-1201 Cayman Islands Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 PLURIMI GLOBAL MASTER: Creditors' Proofs of Debt Due Oct. 22 ------------------------------------------------------------ The creditors of Plurimi Global Opportunities Master Fund Limited are required to file their proofs of debt by Oct. 22, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 1, 2014. The company's liquidator is: Victor Murray MG Management Ltd. P.O. Box 30116 Landmark Square, 2nd Floor, 64 Earth Close Seven Mile Beach Grand Cayman KY1-1201 Cayman Islands Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 SAAD INVESTMENTS: Creditors Meeting Set for Oct. 28 --------------------------------------------------- Saad Investments Company Limited, which is in official liquidation, will hold a meeting for its creditors on Oct. 28, 2014, at 9:00 a.m. The meeting will be held at the offices of Grant Thornton Specialist Services (Cayman) Limited, 48 Market Street, 2nd Floor, Suite 4290, Canella Court, in Camana Bay, Grand Cayman, Cayman Islands. The company's liquidator is: Hugh Dickson c/o John Henry Telephone: +1 (245) 769 7213 SEVEN SEAS: Creditors' Proofs of Debt Due Oct. 22 ------------------------------------------------- The creditors of Seven Seas Capital Appreciation Offshore Fund Ltd. are required to file their proofs of debt by Oct. 22, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 3, 2014. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited c/o Mourant Ozannes Attorneys-at-Law for the Company Reference: JFL Telephone: +1 (345) 949 4123 Facsimile: +1 (345) 949 4647; or Mourant Ozannes Cayman Liquidators Limited Reference: Peter Goulden Telephone: +1 (345) 949 4123 Facsimile: +1 (345) 949 4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands TITAN PETROCHEMICALS: Scheme Creditors to Meet on Oct. 22 --------------------------------------------------------- The scheme creditors of Titan Petrochemicals Group Limited will hold a meeting on Oct. 22, 2014, at 10:00 a.m., at the offices of DLA Piper Hong Kong, 17th Floor of Edinburgh Tower, The Landmark in 15 Queen's Road, Central, Hong Kong. During the meeting, the scheme creditors will be asked to: -- To consider and, if thought fit, resolve that pursuant to and in accordance with section 99 of the Companies Act, the Scheme arranged between the Scheme Company and its Scheme creditors is agreed (with or without modification); and -- to consider any other business that maybe lawfully brought forward at the relevant scheme meeting. VBT BANK: Shareholders Receive Wind-Up Report --------------------------------------------- The shareholders of VBT Bank & Trust Ltd- Reddo received on Aug. 28, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. Margott Lares and Sinia Bodden of Grand Cayman were appointed as liquidators of the company. ========= C H I L E ========= GOLDCORP: Chilean Supreme Court Orders Halt to Mine --------------------------------------------------- BBC News reports that Chile's supreme court has halted the development of a gold and copper mine owned by the Canadian conglomerate, Goldcorp, until indigenous communities are consulted. The court upheld an appeal filed on the El Morro mine by the Diaguita community in northern Chile, according to BBC News. BBC News notes that the community said the mine, worth almost US$4 billion, could pollute a local river. Several recent mining projects in Chile were blocked after local opposition, the report relays. In April, a lower court rejected the Diaguita's request to halt the project because, the community said, Goldcorp had not conducted proper consultations with local communities, the report discloses. In an interview with Associated Press, a Diaguita leader, Maglene Campilley said after the Supreme Court ruling, "The Diaguita people are happy that justice is on the side of the humble, of those who defend Mother Earth, our water resources and our indigenous land," the report says. BBC News notes that a fresh consultation will now need to take place before an environmental permit can be awarded allowing mining to take place. Goldcorp has had to suspend construction at the El Morro site twice, once in 2012 and then again in November of 2013, the report recounts. "The company remained committed to open and transparent dialogue with its stakeholders and to responsible practices in accordance with the highest applicable health, safety and environmental standards," the report quoted Christine Marks, a company spokesperson, as saying. Last year, Chile's environmental regulator blocked work on the massive Pascua-Lama gold mine run by Barrick Gold, straddling the Argentina-Chile border after Diaguita communities living in the foothills of the Andes downstream opposed it, the report notes. Goldcorp is a gold producer headquartered in Vancouver, British Columbia, Canada. The company employs more than 16,000 people worldwide, engaged in gold mining and related activities including exploration, extraction, processing and reclamation. LATAM AIRLINES: System Passenger Traffic Up by 5.5% in August ------------------------------------------------------------- Latam Airlines Group S.A. and its subsidiaries, reported its preliminary monthly traffic statistics for August 2014 compared to August 2013. System passenger traffic increased by 5.5% while capacity increased by 1.0%. As a result, the Company's load factor for the month increased 3.6 points to 84.5%. International passenger traffic accounted for approximately 52% of the month's total passenger traffic. Domestic passenger traffic in LATAM Airlines Group's Spanish speaking operations (Chile, Argentina, Peru, Ecuador and Colombia) rose 9.2%, while capacity increased by 1.6%. As a consequence, the domestic passenger load factor increased 5.8 points to 82.8%. Domestic passenger traffic in Brazil increased by 2.9%, while capacity increased by 0.4%. As a consequence, the domestic Brazil passenger load factor increased 2.0 points to 80.7%. International passenger traffic increased by 6.0%, while capacity increased by 1.2%. Accordingly, the international passenger load factor for the month increased 4.0 points to 87.6%. International traffic includes international operations of both LAN and TAM on regional and long haul routes. Cargo traffic for LATAM decreased 1.9% as capacity decreased 5.6%. As a consequence, the cargo load factor increased 2.2 points to 59.0%. The decrease in cargo capacity is a result of a reduced freighter operation in addition to decreased availability in the bellies of passenger aircraft. Cargo traffic decrease was driven by weaker imports into Latin America. Headquartered in Santiago, Chile, LATAM Airlines Group S.A., -- http://www.latamairlinesgroup.net/-- together with its subsidiaries, provides passenger and cargo air transportation services in South America. It provides domestic and international passenger transport services to approximately 134 destinations in 22 countries and cargo services to approximately 143 destinations in 27 countries. LATAM AIRLINES: S&P Revises Outlook to Stable & Affirms BB Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Latam Airlines Group S.A. (Latam) to stable from positive. At the same time, S&P affirmed its 'BB' global scale ratings on Latam and 'brAA' national scale rating on its subsidiary, Brazil-based TAM S.A., and revised the outlook on the company's ratings to stable from positive. "The outlook revision follows our view of improving credit metrics in 2015 and 2016, although at a slower-than-expected pace due to Brazil's sluggish economy," said Standard & Poor's credit analyst Marcus Fernandes. The company's focus on improving TAM's operating efficiency is strengthening consolidated credit metrics. Efficiency improvement consists of cost-reduction initiatives, the replacing of less efficient aircrafts, and aircraft reallocations to achieve a better capacity usage. Also, TAM continued to reduce its capacity in Brazil because airline travel demand did not increase as expected and this market is currently oversupplied. Overall S&P expects Latam's regional capacity, measured by available seat kilometer (ASK), to stay at current levels in 2015, while demand, measured by revenue passenger kilometer (RPK) increases amid the region's improving economy. =================== C O S T A R I C A =================== BANCO POPULAR: Fitch Affirms 'BB+' Issuer Default Rating -------------------------------------------------------- Fitch Ratings has affirmed Banco Popular y de Desarrollo Comunal's (BPDC) ratings including its Issuer Default Rating (IDR) at 'BB+' and its Viability Rating (VR) at 'bb+'. KEY RATING DRIVERS - IDRs, VR, SF, and SRF BPDC's IDR and VR reflect its robust loss absorption capacity, stable deposit base, good profitability ratios and adequate asset quality. The bank's ratings also reflect the moderate tenure mismatches in its asset and liability structure. The bank's Support Rating (SR) of '3' and Support Floor (SF) of 'BB' indicates that in Fitch's view there is a moderate probability of support from the Costa Rican Government despite having no explicit guarantee, given the nature of the bank and its systemic importance. The bank's systemic importance comes from its relevant market share in terms of assets (13%) and deposits (12.7%) along with its duties of public interest. Capitalization is the core strength of BPDC, with a Fitch Core Capital of 25% outperforming most national and international peers. The strong capital is underpinned by the capital accumulation mechanisms and good profitability. The capital levels provide an ample loss absorption capacity and room to maintain the balance sheet's dynamic growth; these levels are not expected to decline in the foreseeable future. The bank's steady funding favors its financial profile. It includes a guaranteed influx of funds from the state. The funding stability arises from the government's monthly deposit of nearly 41% of the public sector payroll. Additionally, the bank collects the mandatory contributions to the complementary pension fund equivalent to 1.25% of the total payroll of public and private sector workers. Profitability ratios have remained good although they have declined since 2013 due to pressure on margins. As of the first half of 2014 (1H'14) the return on assets ratio was at 1.4% (December 2013: 1.5%; Dec. 2012: 2.1), still above the industry average (1.1%), and further declines are unlikely. The main weakness of the financial performance comes from the low operating efficiency. The bank's asset quality remains adequate with delinquency ratios in line with its historic average. Non-performing loans to total loans ratio is 2.6%, which is considered sound given the loan portfolio's retail orientation --which has a natural higher propensity to deteriorate when compared with more diversified portfolios (e.g. retail and wholesale). Low levels of write offs and restructuring are also proof of the bank's adequate credit quality. Rating Sensitivities Potential upgrades of the bank's VR --and consequently of the IDRs-- are limited over the medium term as the bank is currently rated at the same level of the sovereign, which has a Stable Outlook. In the long term, however, upside potential could arise from a substantial improvement in funding and business diversification, coupled with a higher sovereign rating. A significant deterioration of the bank's profitability and asset quality, which erode the capital and reserves cushion, would place downward pressure on the bank's VR and IDRs. BPDC's current SR and SRF indicate that in the event of individual risk profile deterioration, the IDR would not fall below 'BB', given the agency's opinion that government support will be forthcoming. Changes on sovereign creditworthiness and/or propensity of support would affect the SR and SRF. Fitch has affirmed BPDC's ratings as follows: International ratings: -- Long-term IDR at 'BB+', Outlook Stable; -- Short-term IDR at 'B'; -- Long-term local currency IDR at 'BB+', Outlook Stable; -- Short-term local currency IDR at 'B'; -- Viability Rating at 'bb+'; -- Support Rating at '3'; -- Support Rating Floor at 'BB'. National ratings: -- Long-term national rating at 'AA+(cri)', Outlook Stable; -- Short-term national rating at 'F1+(cri)'; -- Long-term senior unsecured bonds at 'AA+(cri)'; -- Commercial paper at 'F1+(cri)'. -- Long-term senior unsecured bonds in Panama at 'AA-(pan)'; -- Commercial paper in Panama at 'F1+(pan)'. -- Long-term senior unsecured bonds in El Salvador at 'AA+(slv)'; -- Commercial paper in El Salvador at 'F1+(slv)'. ============= J A M A I C A ============= AIR JAMAICA: Landlords Seek Takers for Office Space --------------------------------------------------- Jamaica Gleaner reports that National Insurance Fund is making another go at recruiting tenants for unused office space at the Air Jamaica Limited building that has been on the market for more than three years. The agency has advertised for rent some 3,000 square feet of space that was previously occupied by the Public Assistance Department of the Ministry of Labor and Social Security, according to Jamaica Gleaner. The space has been vacant since May 2011. Jamaica Gleaner notes that NIF owns three floors of the 12-story Air Jamaica Building, comprising approximately 23,360 square feet, which is rented on the open market. Air Jamaica (Legacy) Limited owns five floors, measuring 32,802 square feet. A law firm and another government body is said to own the rest of the property. The report notes that Air Jamaica (Legacy) said four of its floors are on the market, but there are prospects for three floors with tenants soon to move in, with one floor still available. Previously the corporate headquarters for the national carrier, the five floors were put up for sale by Air Jamaica in 2010 when the airline was approaching final agreement with buyer Caribbean Airlines of Trinidad, the report recalls. The report relays that Audrey Deer-Williams, head of NIF, said NIF purchase of its space was made long before 2010, and NIF has no plans to divest its holdings in the downtown property, which were last valued at J$180 million in 2011. The pension fund earns about J$17 million from the building each year, Ms. Deer-Willi said, the report notes. Former project manager with Air Jamaica Legacy, Dennis Chung, said that no buyer was ever found for Air Jamaica's portion of the property, which remains an asset of the Government, the report relays. The building has 52 parking spaces. Each floor has its own amenities and is partitioned with demountable gypsum board to provide general and private offices. For NIF-advertised space, rental per square foot is J$750 per annum. There is also a maintenance portion that is determined annually, Ms. Deer-Williams said, the report adds. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. As reported in the Troubled Company Reporter-Latin America on June 23, 2010, Trinidad and Tobago Caribbean Airline on May 1, 2010, acquired Air Jamaica for US$50 million and operated six Air Jamaica aircraft and eight of its routes. Jamaica got a 16% stake in the merged operation, with CAL owning 84%. A TCR-LA report dated June 29, 2009 said cash-strapped Air Jamaica has been hemorrhaging over US$150 million per annum and the government has had to foot the massive bill. Air Jamaica also had over US$600 million in loans outstanding. JAMAICA: Union Boss Wants Workforce Impact of Chikungunya Assessed ------------------------------------------------------------------ RJR News reports that Senator Kavan Gayle, President-General of the Bustamante Industrial Trade Union (BITU) wants a study to be done to determine the full impact of the Chikungunya outbreak on the productive sector. Reporting that some of his union's members have complained about impact the high number of colleagues who have had to take sick leave, Senator Gayle, told RJR News that "it has put a burden on those who remain." Senator Gayle added that, in some instances, some affected workers have not been able to receive the required medical attention, "have not been able to gain the medical attention because of the (huge) influx of persons . . . " putting an added strain on the resources of the medical services, according to RJR News. This unsatisfactory situation was "creating havoc amongst the workforce," Senator Gayle said, RJR News relates. As reported in the Troubled Company Reporter-Latin America on Sept. 23, 2014, Standard & Poor's Ratings Services affirmed its 'B-' long-term foreign and local currency and 'B' short-term foreign and local currency sovereign credit ratings on Jamaica. At the same time, S&P revised the outlook on the long-term sovereign credit ratings to positive from stable. In addition, S&P affirmed its 'B' transfer and convertibility (T&C) assessment. ===================== P U E R T O R I C O ===================== AEROSTAR AIRPORT: Moody's Lowers Rating on $350MM Sr. Notes to Ba2 ------------------------------------------------------------------ Moody's Investors Service downgraded Aerostar's $350 million of senior secured notes rating to Ba2 from Ba1 and changed the rating outlook to negative concluding the rating review that was initiated on July 17. Aerostar Airport Holdings, LLC (AAH) is the project company selected by the Commonwealth of Puerto Rico (B2 negative) to operate Luis Munoz Marin Airport (LMM), the largest commercial airport in Puerto Rico, under a 40 year lease agreement. AAH is jointly owned by Highstar Capital IV L.P. and Aeropuerto de Cancun S.A. de C.V. In March 2013, Aerostar issued $350mm of 5.75% Senior Secured Notes due 2035 (Notes). Ratings Rationale The downgrade of Aerostar's notes to Ba2 recognizes that the airport's creditworthiness cannot be completely de-linked from the current stresses facing the government, economy and population of the Commonwealth of Puerto Rico (B2 negative). The region's current situation makes credit quality more uncertain for companies operating under government-granted concessions governed under local law whose cash flow can also be affected by changes in the economic environment or potentially by interference from the government. The rating action acknowledges the challenges of systemic risks for all local credits, particularly those that have a dependence on the local economy for cash flow. In addition, the Commonwealth's fiscal distress could impact the ability of the Puerto Rico Ports Authority (unrated) to make compensation payments to Aerostar in the event of adverse actions or termination. Notwithstanding this relationship, the rating differential between Aerostar and the Commonwealth of Puerto Rico acknowledges a number of credit considerations. To begin with, the 15 year Airline Use Agreement with signatory airlines provides a stable amount of aeronautical revenues at $62mm per year, roughly 60% of total revenues, regardless of passenger or enplanement volumes. Aerostar enjoys a significant share of the island's air travel market. Aerostar's greater dependence on tourism related travel from the United States rather than the domestic economy helps support its business prospects. Another key consideration is, the fact that Luis Munoz Marin Airport is the first and only major US passenger airport P3 that has been privatized under the FAA's Airport Privatization Program. The involvement of the FAA through the Airport Privatization Program helps to underpin the legal and operating arrangement between the concession and the government that potentially reduces the likelihood of interference from the Commonwealth. Aerostar has been performing adequately despite flat enplanement levels in 2013 and a growth of 4% as of September 2014, year-to- date. Going forward, LMM will have increasing reliance on variable, non-aeronautical revenue to cover debt service as debt starts to amortize. Specifically, the concession is focused on maximizing commercial, parking and other non-aeronautical revenues, a business strategy that was not the focus of the prior airport management. While there are risks with respect to the timing and magnitude of new operating revenues, ultimately the greater diversification of airport revenues could provide the airport with more resilience. The growth expansion expected to spur the non-aeronautical revenue remains on track and the majority of the works are expected to be concluded by November 2014. The rating outlook is negative, mirroring the negative outlook on the B2 rating of the Commonwealth of Puerto Rico, and consistent with Moody's view of the relationship between the issuers. Thus, a downgrade on the rating of Puerto Rico's rating may trigger a downgrade on the rating of Aerostar, particularly if we deem there is a likelihood increase that the government could take any action that might impact the project's revenue generation, profitability, or ability to operate. Given the negative outlook, Moody's do not expect upward pressure on the rating. However, if Puerto Rico's outlook on the rating is revised to stable, Aerostar's outlook may follow suit if Moody's assess that the current rating already captures linkages described above. A positive operating history of the non-aeronautical revenues and a reversal of the currently negative growth rate of enplanements could also lead to the stabilization of the outlook. METROPISTAS: Moody's Downgrades Rating on $435MM Sr. Notes to Ba3 ----------------------------------------------------------------- Moody's Investors Service downgraded Metropistas $435 million of senior secured notes rating to Ba3 from Ba1 and changed the rating outlook to negative, concluding the rating review that was initiated on July 17th. Metropistas operates the PR-22 and the PR-5 toll-roads in San Juan under a concession from the Puerto Rico Highways and Transportation Authority (PRHTA: Caa1 negative). On August 2013, Metropistas issued $435mm of 6.75% Senior Secured Notes due 2035 (Notes) with quarterly debt service payments. The Notes are fully amortizing commencing on the third year after the issue date. Ratings Rationale The downgrade of Metropistas' Notes to Ba3 recognizes that the toll road's creditworthiness cannot be completely de-linked from the current stresses facing the government, economy and population of the Commonwealth of Puerto Rico (B2 negative). The region's current situation makes credit quality more uncertain for companies operating under government-granted concessions governed under local law whose cash flow can also be affected by changes in the economic environment or potentially, albeit unlikely, by intervention from the government. The rating action acknowledges the challenges of systemic risks for all local credits, particularly those that have a dependence on the local economy for cash flow. In addition, the Commonwealth's fiscal distress could impact the ability of the PRHTA and the Government Development Bank (GDB, B3 negative) to make compensation payments to Metropistas in the event of adverse actions or termination. The rating recognizes the importance of the highway to the regional transportation network and the concession construct within which the asset is managed and operated. While traffic volumes have been flat, the relative inelasticity of usage helped to increase operating revenues following recent toll increases despite pressures on the economy. The rating action also reflects that the operating environment heightens certain credit challenges of the issuer, including future potential refinancing risks. Both the syndicated loan due 2018 with an outstanding balance of a $376 mm as of June 2014 (which ranks pari-passu with the Notes), and the letters of credit backing the debt service reserve fund on the Notes mature in 2018 and must be refinanced. Metropistas' recent operating and financial performance has been adequate. Traffic has remained roughly flat in 2013 and 2014 despite the economic downturn in Puerto Rico. As of June 2014, year-to-date revenues have increased by a solid 14.7% as a result of a tariff increase at the beginning of the year, as permitted by the concession agreement. The rating outlook is negative, mirroring the negative outlook on the B2 rating of the Commonwealth of Puerto Rico, and consistent with Moody's view of the relation between the concession and the government. Thus, a downgrade of Puerto Rico's rating could likely trigger a downgrade on the rating of Metropistas. While Moody's believe this is unlikely in the near term, the rating could also be downgraded if there were any negative intervention by the government, for instance if the Commonwealth pressured the issuer to refrain from increasing tariffs in accordance with the concession. Given the negative outlook, Moody's do not expect upward pressure on the rating. However, if Puerto Rico's outlook on the rating were revised to stable or if Metropistas were able to refinance its bank facilities, Metropistas' outlook might change to stable if Moody's assess that the current rating already captures the linkages described above. Metropistas operates the PR-22 and the PR-5 corridors in Puerto Rico. PR-22 traverses an important manufacturing, pharmaceutical, and retail trade corridor, serves as a commuter link to the suburbs west of San Juan, and is a connector among popular tourist areas and the Port of San Juan. PR-5 connects San Juan with the growing city of Bayamon. The service area population of the two routes is over 1.2 million. The principal methodology used in this rating was Privately Managed Toll Roads published in May 2014. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD CEMENT: Fitch Lowers Issuer Default Ratings to 'D' ----------------------------------------------------------- Fitch Ratings has downgraded Trinidad Cement Limited Group's (TCL) foreign and local currency Issuer Default Ratings (IDRs) to 'D' from 'B-'. Fitch also withdraws TCL's proposed senior secured notes expected rating of 'B-/RR4(EXP)'. This expected rating has been withdrawn as the proposed debt instrument will no longer be issued by the company. This downgrade to 'D' follows the announcement by TCL's Board of Directors on Sept. 29, 2014 of a 'standstill' on all payments due under existing restructured loan agreements. As a result, TCL missed its debt service payments due on Sept. 30, 2014. These maturities are not subject to a grace period. Fitch considers the missed debt payment an event of default. TCL's Board of Directors announced a new restructuring plan on the same date, due to be submitted by Oct. 31, 2014. *********** 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 * * *