/raid1/www/Hosts/bankrupt/TCRLA_Public/141128.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, November 28, 2014, Vol. 15, No. 236
Headlines
A R G E N T I N A
ARGENTINA: Default Settlement Odds on Leftover Bonds Surge
B R A Z I L
BRAZIL: Bahia to Get $50MM IDB Loan to Strengthen Public Admin.
JSL S.A.: Fitch Affirms 'BB' IDR & Revises Outlook to Negative
REDE ENERGIA: Moody's Withdraws 'C' LT Corp. Family Rating
C A Y M A N I S L A N D S
AP CAPITAL: Shareholders Receive Wind-Up Report
BENECO RISK: Shareholders Receive Wind-Up Report
BENROS CAPITAL: Shareholders' Final Meeting Set for Dec. 4
HUTCHISON WHAMPOA (12): Shareholders Receive Wind-Up Report
HUTCHISON WHAMPOA (12) JP: Shareholders Receive Wind-Up Report
HUTCHISON WHAMPOA (13): Shareholders Receive Wind-Up Report
LDK SOLAR: US Trustee Unable to Appoint Creditors' Committee
NL NIEDERBIPP: Shareholders Receive Wind-Up Report
TRUCAP INVESTMENT: Shareholder Receives Wind-Up Report
VAN ECK: Shareholders Receive Wind-Up Report
VMS STRATEGIC GROWTH: Shareholders Receive Wind-Up Report
VMS STRATEGIC HARD: Shareholders Receive Wind-Up Report
J A M A I C A
JAMAICA: BOJ Notes Slowdown in Personal Loans in Commercial Banks
SCOTIABANK: BITU Monitoring Restructuring Plan
M E X I C O
CI BANCO: Moody's Reviews Ba3 Rating HICOACB Certs. for Downgrade
P A R A G U A Y
PARAGUAY: To Get $100 Million IDB Loan for Road Upgrade Program
V E N E Z U E L A
VENEZUELA: China Loosens Debt Terms
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A R G E N T I N A
=================
ARGENTINA: Default Settlement Odds on Leftover Bonds Surge
----------------------------------------------------------
Katia Porzecanski, writing for Bloomberg News, reports that
creditors who own bonds left over from Argentina's default in 2001
are growing increasingly confident the government will negotiate
once a clause that it says prevents a settlement expires next
month. The dollar-denominated notes rose as high as 120 cents on
the dollar, according to prices compiled by Exotix USA Inc., which
specializes in illiquid and distressed emerging-market debt,
according to the report.
That's the highest since July 30, when Argentina defaulted on
securities issued in debt restructurings in 2005 and 2010, the
report notes.
The latest non-payment was triggered after the nation refused to
comply with a U.S. court order to settle with a group of creditors
who rejected the swap and sued for full repayment, the report
relates.
The report notes that Argentina has said it can't negotiate with
the holdouts led by billionaire Paul Singer until the provision in
its restructured bonds, which prohibits the nation from extending
better terms to creditors who refused earlier offers, expires Dec.
31.
The court's decision to include other holders of defaulted bonds
from 2001 in any potential talks has also boosted investor
optimism over a deal as Argentina repeated Nov. 7 that a solution
should include all bondholders, the report 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.
On Nov. 3, 2014, the TCR-LA reported that Fitch Ratings downgraded
Argentina's rating on Par Bonds issued under Foreign Law to 'D'
from 'C' as Argentina has not been able to cure the missed coupon
payments on its par bonds issued under foreign law after the
expiration of the 30-day grace period on Oct. 30. According to
Fitch's criteria, this constitutes an event of default and Fitch
has downgraded the affected securities to 'D'. In addition, Fitch
has affirmed:
-- Foreign Currency Issuer Default Rating (IDR) at 'RD';
-- Local Currency IDR at 'CCC';
-- Short-term Foreign Currency IDR at 'RD';
-- Country Ceiling at 'CCC'.
-- Performing Foreign Law Exchanged Securities (Global 17) at
'C';
-- Local Currency exchanged bonds under Argentine Law at 'CCC';
-- Foreign and Local Currency non-exchanged securities under
Argentine Law at 'CCC';
-- Discount Bonds issued under Foreign Law at 'D'.
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B R A Z I L
===========
BRAZIL: Bahia to Get $50MM IDB Loan to Strengthen Public Admin.
---------------------------------------------------------------
The Inter-American Development Bank has approved a $50 million
loan for the northeastern Brazilian state of Bahia for a program
designed to strengthen public administration to better serve its
citizens. The project is known as PROGEST.
Even though the state is posting economic growth, it lacks
information and strategic planning studies. It is also weak on
territorial planning and aligning budget planning with its Multi-
Year Plan (PPA in Portuguese), among other challenges that affect
the way Bahia provides services.
In this regard, macro-economic activities - from strategic
planning and budget alignment to the strengthening of internal
management of state organizations and actions related to the
procedures of state public service entities - were designed to
improve the average wait time for attending to citizens and the
efficiency with which services are rendered.
In this way the program seeks to improve processes and
methodologies so that strategic information can be utilized more
efficiently. Changes include training and updating equipment and
systems to enhance the budget planning alignment within the Multi-
Year Plan, as well as drawing up a Territorial Development Plan.
The state is expected to improve its levels of efficiency and
effectiveness in management and citizen services, and increase the
percentage of PPA programs undertaken on the basis of strategic
studies, from 6.37 percent to 60 percent. It is also expected to
boost from 8 percent to 40 percent the percentage of government
secretariats with budget actions in alignment with the PPA.
This is the first part of the loan to improve public
administration that is being carried out directly between the IDB
and the Brazilian state. The loan has an interest rate pegged to
the LIBOR. It was granted over a period of 25 years with a grace
period of 5.5 years.
JSL S.A.: Fitch Affirms 'BB' IDR & Revises Outlook to Negative
--------------------------------------------------------------
Fitch Ratings has affirmed JSL S.A.'s ratings as:
-- Foreign and local currency Issuer Default Rating (IDR) at
'BB';
-- National scale rating at 'A+(bra)';
-- Unsecured debentures issuances at 'A(bra)'.
The Rating Outlook for the Corporate Ratings has been revised to
Negative from Stable.
The Negative Outlook reflects Fitch's concern over JSL's
willingness/ability to deleverage within the next 18 to 24 months,
given its ongoing aggressive growth strategy. The two new
segments combined, car rental and leasing, should further boost
capex volumes, pressuring free cash flow generation and delaying
the company's deleveraging trend, in accordance with Fitch
calculations. In Fitch's view, the company's aggressive growth
strategy for the rental car business might add greater business
volatilities in JSL's results, not observed in the past. The rent
car business is more intensive in capital and is more exposed to
fiercer competion, and to the macroeconomics scenario than the
company's other business. JSL's rating headroom is low, with
Fitch revised net leverage ratios, measured by Net Debt/EBITDA,
expected to be around 4.3x in 2014 and 2015 which is higher than
previously anticipated by the agency, at around 3.8x-3.5x.
KEY RATING DRIVERS
JSL's ratings continue to reflect its strong business profile,
supported by a leading position in the Brazilian logistics
industry and diversified service portfolio, and its resilient
operating performance over the last years, despite sluggish
economic growth. JSL's aggressive growth strategy has resulted in
increasing leverage trend.
JSL's above-average ability to generate free cash flow through
capex postponement gives it an important financial flexibility and
is embedded in the current ratings. Nevertheless, the company has
so far decided to take advantages of market growth within its
business activities and is expected to continue to invest heavily
over the next years. The company's commitment to an adequate
liquidity position vis-a-vis its short-term obligations is a key
consideration for the ratings. The rating for the debentures is
one notch below the corporate rating due to their structural
subordination in relation to most of JSL's debt, which is secured
by the company's fleet.
Prominent Market Position and Diversified Portfolio
JSL has a leading position in the Brazilian logistics industry
with a diversified portfolio of services with relevant presence in
multiple sectors of the economy. The company's services include:
supply chain management (35% of its net revenue), fleet management
and outsourcing (18%), vehicle dealerships (23%), passenger
transportation (8%), general cargo transportation (5%) and car
rental (2%). The lately, car rental business (Movida brand), is
expected to represent around 15% of total revenues in 2016, per
Fitch forecasts. JSL's strong market position, coupled with long-
term contracts for most of its revenues (53%), minimizes its
exposure to the more volatile economic conditions. The company's
significant operating scale has made it an important purchaser of
light vehicles and trucks, giving it a significant amount of
bargaining power versus other competitors in the industry.
Strong Organic Growth in Business and Increasing Cash Flow
JSL's expansion over the past few years was mainly based on
organic growth, as a result of new services and clients, which has
demanded additional fleet volumes. At end of 2013, JSL acquired
Movida Car Rental Ltda. (Movida) for BRL17.1 million plus the
assumption of BRL45.3 million of new debt. By the time, Movida
had a small fleet of vehicle (2,400), but during 2014 JSL expanded
the fleet to 11,700 as of Sept. 2014 and it should reach around
15,000 by the end of 2014.
JSL has been efficiently managed its business profitability
despite strong growth, with its EBITDA margin has been resilient
at around 15% over the last three years. Between 2010 and the
latest 12 months (LTM) ended Sept. 30, 2014, JSL's net revenue
increased by 166%, to BRL5.4 billion. During the same period, the
company's EBITDA grew to BRL809 million from BRL330 million while
its cash flow from operations (CFFO) rose to BRL672 million from
BRL725 million and BRL408 million during 2012 and 2011,
respectively. During 2014, JSL's CFFO was pressured by higher
working capital requirements of BRL379 million that mostly
reflects a non-recurring BRL190 million of a renewal contract
related to sales term (fleet management with car sale) and the
ongoing restructuring of Movida's operations.
High Capex Leads to Negative Free Cash Flow
During the LTM ended Sept. 30, 2014, JSL reported a negative free
cash flow (FCF) of BRL445 million, mainly as a result of BRL1.1
billion of capital expenditures. As the company continues to
invest heavily in the business growth, FCF is expected to remain
negative by about BRL430 million during 2015. During 2013, FCF
was negative by BRL296 million, while in 2012 it was negative by
BRL213 million. JSL has the flexibility to improve its FCF
generation by lowering its capex expenditures in the event of
declining operating cash flow, as most of its capital investments
are geared toward increasing the size of its fleet/equipment.
Excluding capex related to expansion, JSL generated BRL699 million
of positive FCF during Sept. 30, 2014 (LTM), an increase from
BRL444 million in 2012 and BRL170 million in 2011.
Leverage to Remain High
Greater working capital requirements and continued strong growth
have pressured JSL's leverage ratios during 2014. JSL's leverage,
as measured by total debt/EBITDA was 5.2x as of Sept. 30, 2014
(LTM), while its net debt/EBITDA ratio was 4.5x in the same
period. Fitch does not expect a material reduction in JSL's
leverage ratios in the near term with net leverage expected to be
around 4,3x in 2014 and 2015. JSL's leverage relative to its
fleet market value is adequate. At the end of the third quarter
of 2014, the company reported a fleet market value of
approximately BRL3.9 billion, which is similar to its net debt
position. The company's flexibility is limited; however, as only
about 59% of its fleet is not used as liens for loans.
Adequate Liquidity
JSL adequate liquidity position vis-a-vis its short-term debt
obligations is a key credit consideration. As of Sept. 30, 2014,
JSL reported total debt of BRL4.2 billion, of which BRL776 million
was classified as short-term. This level of near-term debt
compares with BRL526 million of cash and marketable securities and
BRL300 million of undrawn stand-by credit facilities due in 2018.
The ratio of short-term debt coverage, as measured by cash plus
cash flow from operations (CFFO) to short-term debt, is solid, at
a ratio of 2.0x. About 40% of JSL's debt is secured. The
company's debt profile is mainly composed by banking credit lines
(27%), FINAME operations (35%), debentures (28%), and leasing
operations (6%).
RATING SENSITIVITIES
Inability to reduce net leverage to below 4.0x on a sustainable
basis, associated with adequate liquidity position should lead to
a downgrade. The ratings could be pressured by relevant
acquisitions that further pressures JSL's capital structure; by a
significant reduction in the market value of its fleet, or by a
deteriorating macroeconomic environment.
Given the currently high leverage and the company's ongoing growth
strategy, an upgrade is unlikely in the medium term. JSL's
ability to reduce its secured debt to around 30% may lead the
insecured issuances to be in the same level of the company's IDR.
REDE ENERGIA: Moody's Withdraws 'C' LT Corp. Family Rating
----------------------------------------------------------
Moody's Investors Service has withdrawn all Rede Energia S.A.'s
ratings due to the completion of its financial reorganization.
Ratings Rationale
Moody's last rating action on Rede Energia S.A. was on November
24, 2014 when Moody's downgraded the company's USD504 million
perpetual bonds to C from Ca. At the same time Moody's downgraded
the company's issuer ratings to C / C.br from Ca/Ca.br. Moody's
kept a stable outlook for all ratings.
The following ratings have been withdrawn:
LT Corporate Family Rating C
NSR LT Corporate Family Rating C.br
USD 504 million Perpetual Eurobonds C
Rede Energia S.A., headquartered in Sao Paulo, Brazil, is a
holding company with interests in electricity distribution and
generation. Through majority-owned subsidiaries Companhia de
Energia Eletrica do Estado do Tocantins - Celtins (Celtins),
Centrais Eletricas Matogrossenses S.A. - Cemat (Cemat)and Empresa
Energetica do Mato Grosso Sul - Enersul (Enersul), the group
operates concessions to distribute electricity in the states of
Tocantins, Mato Grosso and Mato Grosso do Sul, respectively. In
addition, Rede operates small power distribution concessions in a
number of municipalities in the states of Sao Paulo, Minas Gerais
and Parana. Overall, the group serves approximately 3.4 million
clients.
Rede Energia has been controlled by Energisa S.A. (Energisa, Ba2
negative) since April 11, 2014 when it acquired the capital of
Rede Energia S.A for just BRL 1.00.
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 ".za" for South Africa. 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 Ratings to
Global Scale Ratings".
==========================
C A Y M A N I S L A N D S
==========================
AP CAPITAL: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of AP Capital Holdings (MA) Inc received on
Nov. 11, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Fung Yin Nei Stonassli
Shui On Centre, Room 301-05, 3rd Floor
6-8 Harbour Road
Hong Kong
BENECO RISK: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Beneco Risk Management (SPC) Limited received
on Nov. 17, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Russell Homer
c/o Tanya Armstrong
Telephone: (345) 946-0820
Facsimile: (345) 946-0864
P.O. Box 2499, George Town, KY1-1104
Grand Cayman
Cayman Islands
BENROS CAPITAL: Shareholders' Final Meeting Set for Dec. 4
----------------------------------------------------------
The shareholders of Benros Capital Management Ltd. will hold their
final meeting on Dec. 4, 2014, at 9:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ian D. Stokoe
c/o Sarah Moxam
Telephone: (345) 914 8634
Facsimile: (345) 945 4237
P.O. Box 258 Grand Cayman KY1-1104
Cayman Islands
HUTCHISON WHAMPOA (12): Shareholders Receive Wind-Up Report
-----------------------------------------------------------
The shareholders of Hutchison Whampoa Finance (12) Limited
received on Nov. 21, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Ying Hing Chiu
Hopewell Centre, Level 54
183 Queen's Road East
Hong Kong
Telephone: (852) 2980-1988
Facsimile: (852) 2882-6700
c/o Maples and Calder
Attorneys-at-law
P.O. Box 309, Ugland House
Grand Cayman, KY1-1104
Cayman Islands
HUTCHISON WHAMPOA (12) JP: Shareholders Receive Wind-Up Report
--------------------------------------------------------------
The shareholders of Hutchison Whampoa Finance (12) JP Limited
received on Nov. 21, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Ying Hing Chiu
Hopewell Centre, Level 54
183 Queen's Road East
Hong Kong
Telephone: (852) 2980-1988
Facsimile: (852) 2882-6700
c/o Maples and Calder
Attorneys-at-law
P.O. Box 309, Ugland House
Grand Cayman, KY1-1104
Cayman Islands
HUTCHISON WHAMPOA (13): Shareholders Receive Wind-Up Report
-----------------------------------------------------------
The shareholders of Hutchison Whampoa International (13) Limited
received on Nov. 21, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Ying Hing Chiu
Hopewell Centre, Level 54
183 Queen's Road East
Hong Kong
Telephone: (852) 2980-1988
Facsimile: (852) 2882-6700
c/o Maples and Calder
Attorneys-at-law
P.O. Box 309, Ugland House
Grand Cayman, KY1-1104
Cayman Islands
LDK SOLAR: US Trustee Unable to Appoint Creditors' Committee
------------------------------------------------------------
The U.S. Trustee for Region 3 announced that a committee of
unsecured creditors in LDK Solar Systems, Inc.'s Chapter 11 case
has not yet been appointed as of Nov. 20.
The Justice Department's bankruptcy watchdog said it did not
receive any response from unsecured creditors eligible to serve on
the committee.
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in
Hi-Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
LDK Solar in February 2014 filed in the Cayman Islands for the
appointment of provisional liquidators, four days before it was
due to make a $197 million bond repayment. Its Joint
Provisional Liquidators are Tammy Fu and Eleanor Fisher, both of
Zolfo Cooper (Cayman) Limited, on Oct. 22.
In September 2014, LDK SOalr, LDK Silicon and LDK Silicon Holding
Co., Limited each applied to file an originating summons to
commence their restructuring proceedings in the High Court of Hong
Kong.
On Oct. 21, 2014 three U.S. subsidiaries of LDK Solar, LDK Solar
Systems, Inc., LDK Solar USA, Inc. and LDK Solar Tech USA, Inc.
filed voluntary petitions to reorganize under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware. The lead case is In re LDK
Solar Systems, Inc. (Bankr. D. Del., Case No. 14-12384).
On Oct. 21, 2014, LDK Solar filed a petition in the same U.S.
Bankruptcy Court for recognition of the provisional liquidation
proceeding in the Grand Court of the Cayman Islands. The Chapter
15 case is In re LDK Solar CO., Ltd. (Bankr. D. Del., Case No. 14-
12387).
The U.S. Debtors' General Counsel is Jessica C.K. Boelter, Esq.,
at Sidley Austin LLP, in Chicago, Illinois. The U.S. Debtors'
Delaware counsel is Robert S. Brady, Esq., Maris J. Kandestin,
Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt &
Taylor, LLP, in Wilmington, Delaware. The U.S. Debtors' financial
advisor is Jefferies LLC. The Debtors' voting and noticing agent
is Epiq Bankruptcy Solutions, LLC.
The U.S. Debtors commenced the Chapter 11 Cases in order to
implement the prepackaged plan of reorganization, with respect to
which the U.S. Debtors launched a solicitation of votes on
September 17, 2014 from the holders of LDK Solar's 10% Senior
Notes due 2014, as guarantors of the Senior Notes, and required
such holders of the Senior Notes to return their ballots by
October 15, 2014. Holders of the Senior Notes voted
overwhelmingly in favor of accepting the Prepackaged Plan.
NL NIEDERBIPP: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of NL Niederbipp Project Company Ltd. received on
Oct. 20, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Westport Services Ltd.
c/o Avril Brophy
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
TRUCAP INVESTMENT: Shareholder Receives Wind-Up Report
------------------------------------------------------
The shareholder of Trucap Investment Fund, Ltd. received on
Nov. 17, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Truman Capital Advisors, LP
c/o Daniella Skotnicki
Telephone: (345) 815-1861
Facsimile: (345) 949-9877
VAN ECK: Shareholders Receive Wind-Up Report
--------------------------------------------
The shareholders of Van Eck Hard Assets Cayman Fund Limited
received on Nov. 12, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Mr. Keiran Hutchison
c/o Steve Bull
Telephone: (345) 814 9060
Facsimile: (345) 814 8529
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
VMS STRATEGIC GROWTH: Shareholders Receive Wind-Up Report
---------------------------------------------------------
The shareholders of VMS Strategic Growth Limited received on
Nov. 11, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidators are:
Mr. David Lui
Mr. Ng Kwong Kei
Telephone: +852 29962166 / +852 29962184
Facsimile: +852 29962101
Jardine House, Suits 4112-19, 41st Floor
1 Connaught Place, Central
Hong Kong
VMS STRATEGIC HARD: Shareholders Receive Wind-Up Report
-------------------------------------------------------
The shareholders of VMS Strategic Hard Assets Cayman Fund Limited
received on Nov. 12, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Mr. Keiran Hutchison
c/o Steve Bull
Telephone: (345) 814 9060
Facsimile: (345) 814 8529
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
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J A M A I C A
=============
JAMAICA: BOJ Notes Slowdown in Personal Loans in Commercial Banks
----------------------------------------------------------------
RJR News reports that data from the Bank of Jamaica (BoJ) show a
slowdown in the demand for personal loans in the commercial
banking sector during the June to September quarter. This
occurred despite lower interest rates.
The Central Bank says the continued decline in real wages may have
contributed to the fall-off, according to RJR News.
The report notes that annual growth in the stock of commercial
bank loans to the private sector decelerated to 4.8% at the end of
September, from 9.6% in the previous quarter.
As it relates to the quality of the loan portfolio, the ratio of
non-performing loans to private sector loans declined by 1.1
percentage points to 5.3% at the end of September, the report
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.
SCOTIABANK: BITU Monitoring Restructuring Plan
----------------------------------------------
RJR News report that the Bustamante Industrial Trade Union (BITU)
says it will maintain close contact with the local operations of
Bank of Nova Scotia, in the wake of news from its Canadian parent
earlier this month of job cuts in the Caribbean and Latin America.
Senator Kavan Gayle, BITU President-General, told RJR News that
his union had expressed its concerns to the local managers of BNS,
and that "the bank has indicated that whil[e] the announcement was
one from Corporate (in Canada), Jamaica, as a territory, has not
received any informantion, as yet, in relation to what is being
proposed - any type of restructuring that is taking place."
Senator Gayle said the bank has given its commitment to continuing
dialogue with the BITU, "in regards to this announcement," notes
the report.
The report adds that Scotiabank Canada expects to save about J$120
million from the restructuring.
It is predicting that savings from the exercise will be modest
next year but will be fully realized in 2016, the report relates.
The bank will close or reduce staff at about 120 branches,
primarily in Mexico and the Caribbean, the report notes.
The Bank of Nova Scotia, commonly known as Scotiabank, is a bank
based in Canada. It serves more than 21 million customers in over
55 countries around the world and offers a broad range of products
and services including personal and commercial banking, wealth
management, corporate and investment banking.
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M E X I C O
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CI BANCO: Moody's Reviews Ba3 Rating HICOACB Certs. for Downgrade
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Moody's de Mexico has placed on review for downgrade the Baa1.mx
(sf) (Mexican national scale) and Ba3 (sf) (global scale, local
currency) ratings of the HICOACB 06U certificates issued by CI
Banco, Institucion de Banca Multiple, Fiduciario owing to rising
delinquency levels and concerns about the effectiveness of
portfolio servicing strategies.
The complete rating action is as follows:
-- Moody's has placed the HICOACB 06U Class A certificates, rated
Ba3 (sf) (global scale, local currency) and Baa1.mx (sf) (Mexican
national scale), on review for downgrade.
The last rating action was on 5 August 2013, when Moody's
downgraded the global scale, local currency rating on these
certificates to Ba3 (sf) from Baa1 (sf), and the Mexican national
scale rating to Baa1.mx (sf) from Aaa.mx (sf).
The underlying collateral consists of first-lien, fixed-rate
mortgage loans denominated in inflation-indexed Unidades de
Inversion (UDIs) units and granted primarily to low-income
borrowers in Mexico.
The originator was Hipotecaria Comercial America S. A. de C.V.
Sociedad Financiera de Objeto Limitado, now Santander Vivienda,
S.A. de C.V. SOFOM E.R. Grupo Financiero Santander Mexico
(Santander Vivienda). The current servicer in the transaction is
Santander Vivienda.
Ratings Rationale
The rating action primarily reflects Moody's concerns about rising
30-plus, 60-plus and 90-plus delinquency levels over the last two
months. Early delinquency levels may roll into higher delinquency
buckets causing a decrease in the expected cash flows and a higher
expected loss for the HICOACB 06U certificates.
In addition, prepayment rates have increased significantly, which
can cause further deterioration in the transaction performance.
Former ING Hipotecaria is transferring servicing duties to
Santander Vivienda, the current servicer, a process that started
in December 2013. Collection strategies have been transferred to a
different team within Santander.
Focus During The Review Period
Factors that would lead to an upgrade or downgrade of the rating:
During the review period Moody's will focus on delinquency levels,
prepayments and trust expenses, also reviewing the current
servicer's collections and loss mitigation strategies. Moody's
will also review the procedures to approve and disburse trust
expenses.
The methodologies used in this rating were Metodolog¡a de Moody's
para Monitorear Bursatilizaciones Mexicanas Respaldadas por
Hipotecas (RMBS) published in August 2009, and Moody's approach to
rating RMBS using the Milan Framework published in March 2014.
The period of time covered in the financial information used to
determine the rating was October 2006 to October 2014 (source:
Collection reports, Distribution reports, Trustee reports).
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 ".za" for South Africa. 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 Ratings to
Global Scale Ratings".
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P A R A G U A Y
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PARAGUAY: To Get $100 Million IDB Loan for Road Upgrade Program
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Paraguay will improve connections to the rural area of departments
in the Region Oriental through a road upgrade program that will be
financed with a loan of $100 million from the Inter-American
Development Bank (IDB). Half of the money will come from its
ordinary capital fund and the other half from the China Co-
Financing Fund for Latin America and the Caribbean.
The program will seek to provide better access from production
areas to consumption points. It will also aim to improve access
for 1.3 million people living in the country's poorest rural areas
to regional markets, goods, social services and transport. All
this will be achieved by upgrading part of the main system of
rural roads and following up with appropriate maintenance.
"The program is part of the plan and the actions that Paraguay is
implementing to fight poverty that still affects nearly 24 percent
of the population," said Vera Lucia Vicentini, IDB project team
leader.
The results expected are these: an improvement in the quality of
rural roads, a 20 percent cut in operating costs for vehicles and
travel times, elimination of total blockage or restrictions on
traffic throughout the year, and an increase in agricultural
production.
A positive impact is also expected in the area of gender equality,
as this is the first time that active participation of women is
being encouraged both in the construction and maintenance of
roads, with a specific strategy in tandem with contractors and
publics works supervisors, the development of courses for training
and skill-building among the local population.
The program calls for a variety of public works projects,
including the improvement of 390 kilometers of rural roads to
bring them up to standards that ensure they will be passable and
safe; the replacement of 1,900 small wooden bridges with concrete
ones; routine maintenance of 530 kilometers of rural roads,
incorporating local micro-businesses into the management model.
This will boost employment and economic development in the
targeted areas.
The works projects will feature road safety components aimed at
getting drivers to slow down and avert accidents in high-risk
areas. Designs will be subject to a road safety audit to make sure
they include proper safety features.
The loan is over 23 years with a grace period of five-and-a-half,
and an interest rate pegged to the LIBOR. It is being matched by
a local contribution of $25 million.
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V E N E Z U E L A
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VENEZUELA: China Loosens Debt Terms
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Global Insolvency, citing The Wall Street Journal, reports that
Venezuela, South America's most economically troubled country,
facing fears of a debt default amid tumbling oil prices and a cash
crunch, has been thrown a lifeline by its largest lender, China.
Venezuela's Official Gazette said that China loosened repayment
terms on the nearly $50 billion in loans it has granted Venezuela
since 2007, according to Global Insolvency.
The report notes that President Nicolas Maduro said in a speech
that his finance minister, Rodolfo Marco, would soon travel to
China to try to secure new loans. Mr. Maduro's popularity has
plummeted to 30%, polls show, as Venezuela's currency collapses
and the government struggles with the world's highest inflation
rate and widespread scarcity of basic goods, the report relates.
Venezuela's woes threaten the future of what Mr. Maduro's
predecessor, the late President Hugo Chavez, called 21st Century
Socialism, the report relays.
Analysts say Beijing's flexibility may buy Mr. Maduro more time.
The president used a $4 billion Chinese credit, traditionally
earmarked by the Chinese government for infrastructure projects
and held in off-budget funds, to increase reserves to $23.2
billion, the report discloses. China also recently lent $1.3
billion to help Argentina buoy falling reserves, giving President
Cristina Kirchner, a close ally of Mr. Maduro, a cushion to help
alleviate that country's cash crunch, the report adds.
***********
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***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
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USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
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Chapman, Editors.
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