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/raid1/www/Hosts/bankrupt/TCRLA_Public/141030.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 30, 2014, Vol. 15, No. 215 Headlines A N T I G U A & B A R B U D A ANTIGUA & BARBUDA: Oil Prices Remain the Same B R A Z I L BRAZIL: To Delay Petrobras Gasoline Price Relief HYPERMARCAS SA: Lifts Profit With Currency Hedge JBS USA: To Host Third Qtr Earning Conference on Nov. 14 OI SA: Possible Rio Forte Liquidation No Impact on Business Merger C A Y M A N I S L A N D S BRACKEN LIMITED: Creditors' Proofs of Debt Due Nov. 6 CEP MENA 2: Commences Liquidation Proceedings FORTUNE CREATION: Creditors' Proofs of Debt Due Nov. 17 GIC EVENT: Creditors' Proofs of Debt Due Nov. 3 OPTREX LIMITED: Creditors' Proofs of Debt Due Nov. 6 PENINSULA LIFE: Creditors Hold First Meeting SALVIA INVESTMENT: Placed Under Voluntary Wind-Up STARFIRE LIMITED: Placed Under Voluntary Wind-Up TOURADJI MERGER: Creditors' Proofs of Debt Due Nov. 5 TUBBATAHA AVIATION: Commences Liquidation Proceedings D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Takes Steps to Promote More Inclusive Growth T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: TTSEC and TTSE Sign MOU - - - - - =============================== A N T I G U A & B A R B U D A =============================== ANTIGUA & BARBUDA: Oil Prices Remain the Same --------------------------------------------- Kyle Christian at The Daily Observer reports that although at least one Caribbean country has allowed consumers to reap the benefits of lower oil prices on the world market, the nation's sole petroleum distributor said only government can determine whether there will be a drop in prices at the pump in Antigua & Barbuda. Last week, Jamaica's Petrojam announced a decrease in the price of gasoline. Kerosene and propane cooking gas prices also fell. Acting Chief Executive Officer of the West Indies Oil Company (WIOC), Gregory Georges, said the next shipment of oil the company receives will be cheaper, though that does not mean motorists will reap savings at the pump since the price of gasoline and diesel at gas stations is fixed by the government, according to The Daily Observer. When the global price of oil increases, Mr. Georges said, government simply collects less Consumption Tax, and when prices fall, as is the case now, government collects more, the report notes. "If the world oil price drops it means that we are buying fuel at a lower price. Since all the other (add-ons) are fixed, the only two variables that change are the pump price and the consumption tax," the report quoted Mr. Georges as saying. "So if there is a lower cost base and the pump price remains the same, then the consumption tax will go up," Mr. Georges added, the report notes. The Daily Observer relates that when oil is imported, WIOC's margin, the dealers' margin, shipping and other fixed costs are added before the price at the pump is determined. The report notes that WIOC Acting-CEO said the petroleum on the local market on Oct. 28 was most likely purchased when prices were over US EC$100 a barrel. "Remember, we at WIOC purchase approximately four to six weeks' worth of fuel at a time. So, we in Antigua & Barbuda, haven't felt the full effect of the world oil price decline really due to the time lag," Mr. Georges said, the report relays. By Oct. 28, the price per barrel is less than US $80 and Mr. Georges said the next shipment of fuel, expected in early November, should be at the lower cost base, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on September 23, 2014, The Daily Observer said that Antigua & Barbuda could soon find itself in the company of Japan, Zimbabwe, and Greece, the countries with the highest national debts. In the January 2014 budget presentation, the former administration indicated that the nation's debt was 87 per cent of GDP, according to The Daily Observer. However, Prime Minister Gaston Browne has disputed the figure, deeming it to be as high as 130 per cent, the report noted. Minister Browne said while his government's increased borrowing is pushing up the nation's debt-to-GDP ratio, it is necessary to solve the country's problems, the report related. =========== B R A Z I L =========== BRAZIL: To Delay Petrobras Gasoline Price Relief ------------------------------------------------ Anna Edgerton and Sabrina Valle at Bloomberg News report that Petroleo Brasileiro SA (PBR), the state-run oil producer, will have to wait longer for permission to increase fuel prices in Brazil, a government official said. A 22 percent plunge in the price of crude this year has bought international benchmarks more into line with Brazil's subsidized refinery gate prices, the cabinet level official who participated in discussions, said, according to Bloomberg News. The government will also refrain from reintroducing a tax on gasoline, known as Cide, for now, the official said, asking not to be named because the decision hasn't been made public, Bloomberg News notes. Bloomberg News relates that Oil's rout is giving Petrobras some relief in its role as a government inflation-fighting tool after the Rio de Janeiro-based company booked US$44 billion in operating losses from selling fuel at below-market prices. Still, at last month's board meeting Chief Executive Officer Maria das Gracas Foster said the company needs at least a 10 percent increase in fuel prices, a person with knowledge of the matter said, Bloomberg News relays. Bloomberg News says that the decision to maintain caps and taxes for now is part of an effort to end 2014 within the upper limit of the central bank's 6.5 percent inflation target range at a time the economy is growing less than 1 percent, the official said. Bloomberg News notes that authorities are scheduled to meet Oct. 31 to discuss a possible increase in the gasoline price, broker- dealer Newedge said in a note to clients. Value Plunge Fuel prices are set by Petrobras' board, which is led by Finance Minister Guido Mantega. The government of President Dilma Rousseff, re-elected Oct. 26 to another four-year term, controls the company through a majority of voting stock, Bloomberg News notes. The company's market value plunged US$160 billion in her first term, Bloomberg News relays. Petrobras said on Nov. 29 that it approved a new methodology for adjusting gasoline and diesel prices to guarantee that indebtedness and leverage ratios would return to target levels within two years, Bloomberg News says. Mr. Foster told the last board meeting that a 10 percent price increase wouldn't be enough to bring ratios back to target levels, the person said, Bloomberg News adds. HYPERMARCAS SA: Lifts Profit With Currency Hedge ------------------------------------------------ Brad Haynes at Reuters reports that Hypermarcas SA posted a 48 percent jump in third-quarter profit as a currency hedging program eliminated the impact of a volatile exchange rate on foreign debt- servicing costs. The company booked net income of BRL119 million (US$48 million), according to a securities filing, in line with the average estimate in a Reuters poll. Hypermarcas boosted its marketing budget 24 percent from a year earlier but revenue rose just 7 percent, on pace with inflation, as an economic slump weighed on household demand, according to Reuters. Still, the company protected itself better against a weakening currency, which had pushed up the cost of foreign debts by BRL51 million in the third quarter of 2013, the report notes. The report adds that Brazil's real lost more than 9 percent from June to September this year, but a new hedging program eliminated the impact of the currency swing at a cost of BRL14 million. Earnings before interest, taxes, depreciation and amortization, rose 11 percent to BRL277 million, in line with analysts' estimates, the report relays. Hypermarcas SA is a maker of consumer products from diapers to generic drugs. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 23, 2014, Fitch Ratings affirmed these ratings of Hypermarcas S.A.'s: -- Long-term foreign currency Issuer Default Rating (IDR) at 'BB+'; -- Long-term local currency IDR at 'BB+'; -- Senior unsecured notes due in 2021 at 'BB+'; JBS USA: To Host Third Qtr Earning Conference on Nov. 14 -------------------------------------------------------- JBS USA, LLC will hold its third quarter 2014 earnings conference call on Friday, November 14, 2014 at 10:00 a.m. Eastern Time. The call will be open to investors in the Company's bonds and term loan, as well as lenders to the Company's revolving credit facility and prospective investors, securities analysts and market makers. JBS USA, LLC is a processor of beef and pork in the United States and a processor of beef in Australia in terms of daily slaughtering capacity. The Company is an indirect wholly owned subsidiary of Brazilian company JBS S.A., the world's largest animal protein producer. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 21, 2014, Standard & Poor's Ratings Services revised its outlook on the global scale corporate credit rating on JBS S.A. and its subsidiary, JBS USA, to positive from stable. Also, S&P affirmed its 'BB' global scale corporate and debt ratings on JBS S.A. and JBS USA LLC. OI SA: Possible Rio Forte Liquidation No Impact on Business Merger ------------------------------------------------------------------ Oi S.A. and Telemar Participacoes S.A. disclosed that the possible liquidation of the assets of Rio Forte Investments SA as a result of the rejection of the request for controlled management for Rio Forte shall have no impact on the development of the business combination and the merging of the shareholder bases of Oi, Portugal Telecom SGPS S.A. and TmarPart. As already disclosed in the Material Fact and in the Notice to the Market of September 8 and October 13, respectively, the Companies reiterate that they are fully committed to migrating the shares of TmarPart to the Novo Mercado segment of the Sao Paulo Stock Exchange (BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros), which is expected to occur upon the completion of the merger of shares of Oi and TmarPart. The Companies also reiterate that they are working to have the merger of shares approved within the first quarter of 2015. The Companies will keep their shareholders and the market informed of any material subsequent events related to the Transaction. About Oi S.A. Oi S.A., through its subsidiaries, provides integrated telecommunication services for residential customers, companies, and governmental agencies in Brazil. The company was formerly known as Brasil Telecom S.A. and changed its name to Oi S.A. in February 2012. Oi S.A. was founded in 1963 and is headquartered in Rio de Janeiro, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 1, 2014, Moody's America Latina has assigned a Ba1/Aa2.br corporate family rating to Oi SA based on the company's reduced financial flexibility and weak credit metrics, which Moody's believes will result in a weakening of Oi's competitive position. Oi has articulated plans to reduce capital spending and may not fully participate in the upcoming 4G spectrum auction in Brazil. In addition, Oi could face operational, competitive or financial challenges related to the quickly evolving competitive environment, which includes an opportunity for consolidation through M&A. ========================== C A Y M A N I S L A N D S ========================== BRACKEN LIMITED: Creditors' Proofs of Debt Due Nov. 6 ----------------------------------------------------- The creditors of Bracken Limited are required to file their proofs of debt by Nov. 6, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 11, 2014. The company's liquidator is: Company Secretaries Ltd. Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands CEP MENA 2: Commences Liquidation Proceedings --------------------------------------------- On Sept. 18, 2014, the shareholder of CEP Mena 2 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: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands FORTUNE CREATION: Creditors' Proofs of Debt Due Nov. 17 ------------------------------------------------------- The creditors of Fortune Creation Limited are required to file their proofs of debt by Nov. 17, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 19, 2014. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town Tortola VG 1110 British Virgin Islands c/o Mr. Philip C Pedro HSBC International Trustee Limited Compass Point 9 Bermudiana Road Hamilton HM 11 Bermuda Telephone: (441) 299-6482 Facsimile: (441) 299-6526 GIC EVENT: Creditors' Proofs of Debt Due Nov. 3 ----------------------------------------------- The creditors of GIC Event Driven Fund Limited are required to file their proofs of debt by Nov. 3, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 14, 2014. The company's liquidator is: K.D. Blake PO Box 493 Grand Cayman KY1-1106 Cayman Islands c/o James Macfee Telephone: +1 (345) 914-4465 Facsimile: +1 (345) 949-7164 KPMG, Floor 2 Century Yard, Cricket Square Grand Cayman Cayman Islands Telephone: +1 (345) 949-4800 Facsimile: +1 (345) 949-7164 OPTREX LIMITED: Creditors' Proofs of Debt Due Nov. 6 ---------------------------------------------------- The creditors of Optrex Limited are required to file their proofs of debt by Nov. 6, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 11, 2014. The company's liquidator is: Company Secretaries Ltd. Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands PENINSULA LIFE: Creditors Hold First Meeting -------------------------------------------- The creditors of Peninsula Life Settlement Fund SPC held their first meeting on Oct. 29, 2014. During the meeting, the creditors elected a liquidation committee and were provided an update on the progress of the liquidation. The company's liquidator is: Russell Smith c/o Antoine Powell BDO CRI (Cayman) Ltd. 2nd Floor-Building 3 Governors Square 23 Lime Tree Bay Avenue Grand Cayman KY1-1205 Cayman Islands Telephone: (345) 943 8800 SALVIA INVESTMENT: Placed Under Voluntary Wind-Up ------------------------------------------------- The sole shareholder of Salvia Investment Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Oct. 20, 2014, will be included in the company's dividend distribution. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands STARFIRE LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------ The sole shareholder of Starfire Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Sept. 22, 2014, will be included in the company's dividend distribution. The company's liquidator is: Company Secretaries Ltd. P.O. Box 1350 Clifton House 75 Fort Street Grand Cayman KY1-1108 Cayman Islands TOURADJI MERGER: Creditors' Proofs of Debt Due Nov. 5 ----------------------------------------------------- The creditors of Touradji Merger Arbitrage Offshore Fund, Ltd are required to file their proofs of debt by Nov. 5, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 17, 2014. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Cowan dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 TUBBATAHA AVIATION: Commences Liquidation Proceedings ----------------------------------------------------- On Sept. 19, 2014, the sole shareholder of Tubbataha Aviation Limited 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: Vicente Alava-Pons 22 St. Thomas Walk, #19-02 Singapore 238107 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Takes Steps to Promote More Inclusive Growth ---------------------------------------------------------------- The Dominican Republic Government, joined by private sector, civil society and donor representatives discussed their growth strategies and presented specific advances in improving investment climate, ease of doing business, procurement systems and strengthening small and medium enterprises for the creation of more and better jobs. The Second Accountability Workshop of the Caribbean Growth Forum (CGF) Chapter for the Dominican Republic organized by the Ministry of Economy, Planning and Development (MEPYD), with support from the World Bank, the Inter-American Development Bank (IDB), Compete Caribbean, the Caribbean Development Bank (CDB) and the European Union, concluded Oct. 25, that the Dominican Republic is on track for concrete achievements in growth reforms, in line with the country's 2030 National Development Strategy. The Dominican government reported concrete advances up to date in CGF's main three areas, namely, Investment Climate, Logistics and Connectivity, and Skills and Productivity: Improving business climate: The time to register a company decreased from 45 to 7 days, issuing a property title is much faster and a bill for a Bankruptcy Law has been finalized which will help protect creditors while improving SMEs borrowing capacity. In addition, two ministries, Industry and Commerce (MIC) and Tertiary Education, Science and Technology (MESCYT) implemented programs for no-reimbursable seed money to boost young entrepreneurs, while MIC launched a training pilot to strengthen business management practices and quality enhancement to more than 5,000 SMEs. Modernizing the public sector: The National Directorate of Procurement has contributed to the formation of the Citizen Observatory for Public Procurement, as well as more than 25 Oversight Committees that are monitoring public contracts in several ministries, in a move to increase private sector confidence, promote SMEs participation in public contracting, and promote greater transparency. The World Bank is providing technical assistance for the trainings, including exposure to international good practices in open procurement. Alliances: the CGF Private Sector Observatory, which includes seven private sector, academia and civil society organizations, also presented their independent monitoring of the Action Plan, and provided feedback on specific reforms. The Observatory will keep monitoring the initiative to ensure the sustainability of the process and help the Government with implementation of pending actions. In the Dominican Republic the CGF identified over 80 actions driven by 17 ministries and 30 Point Persons designated by the Government. Still about 30% of the reforms agreed upfront are delayed. Important reforms agreed in the early stage of the process require additional time and support for their implementation, including the reform of the Labor Code, the Customs Law reform, and the completion of the Electricity and Fiscal Pacts. The CGF provides a platform for private sector and civil society to give feedback on national reforms and help track the implementation of actions needed to spur sustainable growth and opportunities for all in the Caribbean. The Forum's Dominican Chapter was formally launched in November 2012 under the leadership of the MEPYD, while the implementation of the Action Plan started in December 2013. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: TTSEC and TTSE Sign MOU ------------------------------------------ Trinidad and Tobago Newsday reports that the Trinidad and Tobago Securities and Exchange Commission (TTSEC) formalized a Memorandum of Understanding (MoU) with the Trinidad and Tobago Stock Exchange Limited (TTSE) on Oct. 22. This MoU was drafted based on the desire of both entities in order to solidify the relationship of TTSEC and TTSE with a view to liaising and/or collaborating meaningfully with each other to achieve joint goals and/or initiatives regarding the regulation and the development of the capital market of the twin-island Republic, according to Trinidad and Tobago Newsday. In a statement, the TTSEC said it is expected that this MoU will further facilitate the cooperation of the TTSEC and the TTSE in the achievement of joint development initiatives for TT's securities industry and by extension its capital market. This MoU also encouraged the development of a formal committee comprising members of both entities which meet quarterly to treat with matters relating to and affecting both parties and the securities market, the report notes. A "working group" within each institution was also established to facilitate the ease with which the two parties interact, the report relates. This is the fifth agreement the TTSEC has signed and formalized over the past eighteen months. In June 2013, the TTSEC became a Full Signatory to the IOSCO Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (MMoU) and on January 6, 2014, an MoU with the Central Bank of Trinidad and Tobago was formalized, the report discloses. Both agreements represent a common understanding by the two authorities about how they will consult, cooperate, and exchange information for regulatory enforcement purposes, the report relays. On January 8, 2014, a protocol between the Commission and the Securities Dealers Association of TT was signed and on April 9, 2014, an MMoU for the Exchange of Information and Cooperation and Consultation with the Caribbean Group of Securities Regulators came into force, Trinidad and Tobago Newsday notes. Trinidad and Tobago Newsday says that this agreement aims to facilitate mutual cooperation in the conduct of the regulatory and supervisory functions under the relevant securities laws, regulations and rules in the respective jurisdictions, including specific initiatives, between jurisdictions that will require such co-operation and collaboration. As the nation's securities regulator, the TTSEC is committed to ensuring that the securities market remains fair, efficient and transparent in an environment where investors can invest with confidence, the report adds. *********** 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 202-362-8552. * * * End of Transmission * * *