/raid1/www/Hosts/bankrupt/TCRLA_Public/150123.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, January 23, 2015, Vol. 16, No. 016
Headlines
A R G E N T I N A
TMF TRUST: Moody's Rates ARS32MM Certificates 'B3.ar'
B E R M U D A
BERMUDA BROADCASTING: Compulsory Buyout Rescues Firm
B R A Z I L
CONSTRUTORA ANDRADE: Moody's Lowers Corporate Family Rating to Ba2
BRAZIL: Raises Taxes on Fuel And Loans To Plug Budget Deficit
C A Y M A N I S L A N D S
ASTRA STAR: Shareholders Receive Wind-Up Report
CONVERSUS CAYMAN A: Shareholders Receive Wind-Up Report
CONVERSUS CAYMAN B: Shareholders Receive Wind-Up Report
CONVERSUS CAYMAN C: Shareholders Receive Wind-Up Report
D&P NEW: Shareholders Receive Wind-Up Report
DIA MET: Shareholders Receive Wind-Up Report
DUET ALTERNATIVE: Shareholders Receive Wind-Up Report
GRAND RICHMOND: Shareholders Receive Wind-Up Report
IMPERIAL FUND: Shareholders Receive Wind-Up Report
MULTI-MANAGER ALPHA: Shareholders Receive Wind-Up Report
OCTAVE-1 FUND: Shareholders Receive Wind-Up Report
OCTAVE-1 LTD: Shareholders Receive Wind-Up Report
REPAK LIMITED: Shareholders Receive Wind-Up Report
SPRUCE REAL: Shareholders Receive Wind-Up Report
VERDIS OFFSHORE: Shareholders Receive Wind-Up Report
C H I L E
GEOPARK LATIN AMERICA: S&P Affirms 'B' CCR; Revises Outlook to Neg
C O L O M B I A
PACIFIC RUBIALES: Under Pressure from Low Oil Prices, Fitch Says
J A M A I C A
JAMAICA: Duties Charged on Imported Intermediate Goods to be Cut
JAMAICA: Records Improvement in Current Account Deficit
SCOTIABANK JAMAICA: Contact Center Jobs to Remain in Jamaica
M E X I C O
GRUPO MEXICO: Agency Told to Disclose Complaints Against Miner
GRUPO PAPELERO: S&P Keeps 'B+' Rating on CreditWatch Developing
P U E R T O R I C O
SIGLO REAL: Case Summary & 10 Largest Unsecured Creditors
T R I N I D A D & T O B A G O
TRINIDAD & TOBAGO: Seeks to Deal With Foreign Exchange Shortage
X X X X X X X X X
LATAM: IMF Says Economic "Worries" Predominate in Latin America
- - - - -
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A R G E N T I N A
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TMF TRUST: Moody's Rates ARS32MM Certificates 'B3.ar'
-----------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has rated
Fideicomiso Financiero Pvcred Serie XXII. This transaction will be
issued by TMF Trust Company (Argentina) S.A. -- acting solely in
its capacity as issuer and trustee.
The securities for this transaction have not yet been placed in
the market. The transaction is pending approval from the Comision
Nacional de Valores, if any assumption or factor Moody's considers
when assigning the ratings change before closing, the ratings may
also change.
ARS 50,072,000 in Class A Floating Rate Debt Securities (VRDA TV)
of "Fideicomiso Financiero Pvcred Serie XXII", rated Aaa.ar (sf)
(Argentine National Scale) and B1 (sf) (Global Scale, Local
Currency)
ARS 32,013,000 in Certificates (CP) of "Fideicomiso Financiero
Pvcred Serie XXII", rated B3.ar (sf) (Argentine National Scale)
and Caa3 (sf) (Global Scale, Local Currency).
Ratings Rationale
The rated securities are payable from the cashflow coming from the
assets of the trust, which is an amortizing pool of approximately
6,066 eligible personal loans denominated in Argentine pesos,
bearing fixed interest rate, originated by Pvcred, a financial
company owned by Comafi's Group in Argentina. Only the
installments due after May 31, 2015 will be assigned to the trust.
The VRDA TV will bear a floating interest rate (BADLAR plus
400bps). The VRDA TV's interest rate will never be higher than 32%
or lower than 20%.
Overall credit enhancement is comprised of subordination, various
reserve funds and excess spread.
The transaction has initial subordination levels of 29.85% for the
VRDA TV, calculated over the pool's principal balance as November
30, 2014. The subordination levels will increase overtime due to
the turbo sequential payment structure. The transaction will have
a grace period for principal and interest until July 2015.
The transaction also benefits from an estimated 53.68% annual
excess spread, before considering losses, taxes or prepayments and
calculated at the caps of 32% for the VRDA TV.
Factors that would lead to an upgrade or downgrade of the rating:
Factors that may lead to a downgrade of the ratings include an
increase in delinquency levels beyond the level Moody's assumed
when rating this transaction. Although Moody's analyzed the
historical performance data of previous transactions and similar
receivables originated by Pvcred, the actual performance of the
securitized pool may be affected, among others, by the economic
activity, high inflation rates compared with nominal salaries
increases and the unemployment rate in Argentina.
Factors that may lead to an upgrade of the ratings include the
building of credit enhancement over time due to the turbo
sequential payment structure, when compared with the level of
projected losses in the securitized pool.
Loss and Cash Flow Analysis:
Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of Pvcred
portfolio. In addition, Moody's considered factors common to
consumer loans securitizations such as delinquencies, prepayments
and losses; as well as specific factors related to the Argentine
market, such as the probability of an increase in losses if there
are changes in the macroeconomic scenario in Argentina.
These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities. Monte Carlo simulations were run, which
determines the expected loss for the rated securities.
Moody's analyzed the historical performance data of previous
transactions and similar receivables originated by Pvcred, ranging
from January 2010 to December 2014. Moody's believes that
inflation will accelerate and that nominal increases in salaries
and pensions will not keep up with inflation. A decline in real
income will deteriorate the credit quality of peso-denominated
collateral like the personal loans securitized in this
transaction. As a result, Moody's has increased some of the
default assumptions in the securitized pools to account for this
scenario. Moody's notes that there is significant uncertainty
around key macroeconomic variables in Argentina, including
inflation rates, salary increases compared to inflation, and
economic activity, which have an impact on future performance of
this transaction.
In assigning the rating to this transaction, Moody's assumed a
lognormal distribution of losses for each one of the different
securitized subpools: for the PVCred loans, a mean of 18% and a
coefficient of variation of 60%; and for the "Refinanciados"
loans, a mean of 41% and a coefficient of variation of 60%. Also,
Moody's assumed a lognormal distribution for prepayments with a
mean of 45% and a coefficient of variation of 70%.
Servicer default was modeled by simulating the default of Banco
Comafi as the servicer consistent with its current rating of
Caa1/Baa1.ar. In the scenarios where the servicer defaults,
Moody's assumed that the defaults on the pool would increase by 20
percentage points.
The model results showed 3.07% expected loss for Class A Floating
Rate Debt Securities and 32.36% for the Certificates.
Moody's also evaluated the back-up servicing arrangements in the
transaction. If Pvcred is removed as collection agent, Banco
Comafi will be appointed as the back-up collection agent.
Stress Scenarios:
Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased 6% from
the base case scenario, the ratings of the Class A Floating Rate
Securities and of the Certificates would likely be downgraded to
Caa1 (sf) and Ca (sf) respectively.
The principal methodology used in this rating was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in January
2015.
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B E R M U D A
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BERMUDA BROADCASTING: Compulsory Buyout Rescues Firm
----------------------------------------------------
The Royal Gazette reports that a rescue package to save struggling
broadcaster Bermuda Broadcasting Company (BBC) will buy out the
company's investors for ten cents a share.
Mayfair Ltd -- like the BBC, controlled by the Perry family -- has
kept the TV and radio station afloat with loans and last year
struck a deal to increase its share capital to issue more than 4.6
million new shares at B$2.40 a share, according to The Royal
Gazette.
The report notes that the move was designed to allow BBC to issue
in excess of 4.6 million new shares at the same price in
connection with a loan note worth B$3.2 million issued to Mayfair.
The report relates that now Mayfair has launched a compulsory
share buy-up to save it from insolvent liquidation after it last
year struck a deal to acquire up to 95 per cent of BBC shares --
which gave it legal power to force the sale of remaining shares at
"fair value".
The report says that a letter to BBC shareholders, cosigned by BBC
chief Rick Richardson and board member Gary Perry, said: "BBC has
operated in difficult economic circumstances for many years.
"It has suffered year on year losses for a long period. BBC has
been kept afloat by loans from Mayfair. Without these loans, the
board of BBC would have been forced to place BBC into insolvent
liquidation," the letter said, the report notes.
The letter added: "Early last year, the board was faced with a
stark choice -- to close down the BBC or allow Mayfair to rescue
it. Mayfair was not prepared to invest further monies in BBC
unconditionally."
And the letter said: "The board wished to preserve BBC's legacy
and was aware that without the financial support of Mayfair, BBC
would go into insolvent liquidation. If this occurred, the
shareholders of BBC would receive nothing for their shares and
Bermuda would lose a valuable asset," the report discloses.
And it said: "Mayfair has calculated the fair value of BBC shares
to be ten cents per share, which, on the basis that BBC is cash
flow and balance sheet insolvent, exceeds the book value of BBC,"
the report relays.
The report discloses that the BBC owns the two remaining Bermuda
TV stations ZBM and ZFB after rivals VSB ceased TV broadcasting at
the end of last summer. BBC also runs two radio stations.
BBC shareholders are also shareholders in another Perry family
firm, Devonshire Properties -- but the letter assured them that
their holdings in that company would be unaffected by the BBC
change, the report adds.
===========
B R A Z I L
===========
CONSTRUTORA ANDRADE: Moody's Lowers Corporate Family Rating to Ba2
------------------------------------------------------------------
Moody's Investors Service has downgraded to Ba2 from Ba1 the
corporate family rating assigned to Construtora Andrade Gutierrez
S.A. (CAG) and the rating of its guaranteed notes issued by
Andrade Gutierrez International S.A. (AGInt). The outlook for all
ratings was changed to negative from stable.
The downgrade of CAG' ratings to Ba2 reflects the sharp
deterioration in the company's credit metrics in 2014 due to
weaker than anticipated revenue growth and lower profit margins.
Despite the company's strong liquidity profile and track record of
shareholder's financial support, the change in outlook to negative
reflects the deterioration in industry fundamentals on the back of
corruption scandals at of Petrobras and macroeconomic
uncertainties in Brazil and Venezuela, which could lead to higher
execution risks for the company in the near term.
Ratings changed:
Company: Construtora Andrade Gutierrez S.A. (CAG) --Corporate
Family Rating: to Ba2 from Ba1
Issuer: Andrade Gutierrez International S.A. (AGInt)
-- USD500 million senior unsecured notes due 2018: to Ba2 from Ba1
The outlook for all ratings changed to negative from stable
Ratings Rationale
CAG's Ba2 rating reflects the company's significant size and
scale, as the second largest construction company in Brazil and
one of the largest of Latin America. The company's experienced
management team, its long track record in the local and
international construction markets, and the financial support from
the shareholder are also factored into the rating. The currently
strong liquidity position, with sufficient cash availability to
cover all of its reported outstanding debt plus off balance debt
guarantees, along with the medium-term revenue visibility provided
by a backlog equivalent to about 3.5 years of revenues, further
support the rating.
Offsetting these positive attributes is the sharp deterioration in
CAG's credit metrics during 2014, mainly due to difficulties in
obtain approval for claims of cost overruns and other unusual and
non-recurring expenses that resulted in lower profitability ratios
for the company. The company also experienced some delays in
execution and contract terminations. As a result, net revenues are
likely to have dropped about 5% to 10% in 2014, while EBITDA
margins are anticipated to have deteriorated to the low single
digits. This compares unfavorably with Moody's initial expectation
of a 4% net revenue growth and relatively stable EBITDA margins in
the 7% to 8% range for that year. Moody's believes that the
company will have difficulty to reverse these losses in 2015, due
to deterioration in industry fundamentals and higher execution
risk.
The company has a reasonable geographic diversification, with
Brazil (Baa2, negative), representing 45% of its project backlog,
38% in other Latin American countries and 17% in Africa and
Europe. However, the company has a large exposure to public
clients (80% total backlog) and to projects in high sovereign risk
countries, especially in Venezuela (Caa3, stable) which currently
represents 33% total backlog. Around half of the exposure to high
sovereign risk countries is somewhat mitigated by financing
structures that comprise advance payments and guaranteed resources
through the BNDES, other multilateral and international
organizations. Nevertheless, there is still a high risk of project
delays or cancelations given the anticipated fiscal challenges and
macroeconomic uncertainties in some of those countries.
Another source of industry risk relates to Brazil's "Lava-Jato"
investigations on certain contracts of Petroleo Brasileiro S.A.
(Petrobras, Baa2 rating under review for downgrade) for alleged
bribery and money laundering. Although the company had no
executives indicted for corruption, it has been temporarily banned
from taking part in future bids of Petrobras, along with other 22
construction companies, on the back investigations on cartel
allegations. CAG benefits from having a low exposure to the oil
and gas segment, and to Petrobras in particular, which represents
2.4% of its current backlog. Nevertheless, as the investigations
continue, negative implications may include suspensions,
restructurings, or payment delays under the existing contracts
with Petrobras or financial penalties.
The negative outlook reflects the higher execution risks and the
challenges ahead of the management to improve operating
performance amid deterioration in industry fundamentals on the
back of corruption scandals at Petrobras and macroeconomic
uncertainties in Brazil and Venezuela.
Negative rating pressure on the ratings increases if the company's
total adjusted debt to EBITDA ratio remains above 4.5 times (5.6x
as of September 2014) or if its EBITA to interest expenses remains
below 1.5 time (0.9x as of September 2014) for an extended period,
along with a deterioration in the liquidity profile driven by a
sudden cash drain or Moody's perception of reduced financial
flexibility for the company. Moody's perception of any
deterioration in corporate governance or potential administrative
and judicial proceedings with negative implications for the
company, could also trigger a rating downgrade.
A rating upgrade is unlike at this time, but the outlook could be
stabilized if CAG is able to demonstrate a clear trend of credit
metric improvement driven by revenue growth and improving
profitability, while maintaining a strong liquidity position.
Quantitatively, the ratings or outlook could be stabilized if
CAG's adjusted leverage (as measured by total adjusted debt to
EBITDA) improves to below 3.5 times and if EBITA interest coverage
improves to more than 2.3 times on a sustainable basis.
The principal methodology used in this rating was Construction
Industry published in November 2014.
Construtora Andrade Gutierrez (CAG) is the second largest
engineering and heavy construction company in Brazil, with
reported net revenues of BRL8.0 billion (USD3.5 billion) in the
twelve months that ended September 30 2014. The company has a
backlog of BRL29.1 billion (USD8 billion), including a diversified
portfolio of projects for transport infrastructure, hydro power
plants, sanitation and industrial and civil construction, in 16
different countries in Latin America, Europe, Africa, and Asia.
CAG is one of the main subsidiaries of Andrade Gutierrez S.A.
(AGSA, unrated), one of the largest infrastructure conglomerates
in Brazil, with strategic interests in telecommunication services
and public concessions in transport, energy and sanitation. In
addition to 100% ownership in CAG, the Andrade Gutierrez group
indirectly holds material stakes in publicly listed companies,
including 1.2% of Oi S.A. (Ba1, Negative), 10.3% of Contax
(unrated), 17% of CCR (Ba1, stable), 14.4% of Cemig (Ba1,
negative), and 8.3% of Sanepar (Ba1, stable), with a collective
value of approximately BRL7.5 billion as per market prices, among
other smaller stakes in infrastructure and concession companies.
In the twelve months that ended
September 30 2014, AGSA reported net revenues of BRL8.2 billion
(USD 3.6 billion).
BRAZIL: Raises Taxes on Fuel And Loans To Plug Budget Deficit
-------------------------------------------------------------
Global Insolvency reports that Brazil will next month increase
taxes on fuel and loans to individuals and adjust other duties to
help plug the government's yawning budget deficit, the Financial
Times reported.
New finance minister Joaquim Levy announced the measures on the
eve of a visit to the World Economic Forum in Davos, during which
he will seek to convince investors that Latin America's biggest
economy is setting its finances back on track, according to Global
Insolvency. "The increase in revenue due to the above measures is
expected to be R$20.63bn in 2015," the finance ministry said in a
statement.
Brazil's President Dilma Rousseff is battling to prevent a
downgrade of Brazil's prized investment grade credit rating after
her government embarked on a prolonged fiscal stimulus program
during her first term in office, the report notes.
After narrowly winning re-election in October, she appointed
fiscal hawk Mr. Levy, a former treasury secretary and private
sector fund manager, to implement an austerity program, the report
adds.
==========================
C A Y M A N I S L A N D S
==========================
ASTRA STAR: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of Astra Star Investments Ltd. received on
Dec. 22, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Appleby Trust (Cayman) Ltd
c/o Richard Gordon
Telephone: +1 (345) 949 4900
75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
CONVERSUS CAYMAN A: Shareholders Receive Wind-Up Report
-------------------------------------------------------
The shareholders of Conversus Cayman Blocker A, Limited received
on Dec. 22, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ian D. Stokoe
c/o Adam Keenan
Telephone: (345) 914 8743
Facsimile: (345) 945 4237
P.O. Box 258 Grand Cayman KY1-1104
Cayman Islands
CONVERSUS CAYMAN B: Shareholders Receive Wind-Up Report
-------------------------------------------------------
The shareholders of Conversus Cayman Blocker B, Limited received
on Dec. 22, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ian D. Stokoe
c/o Adam Keenan
Telephone: (345) 914 8743
Facsimile: (345) 945 4237
P.O. Box 258 Grand Cayman KY1-1104
Cayman Islands
CONVERSUS CAYMAN C: Shareholders Receive Wind-Up Report
-------------------------------------------------------
The shareholders of Conversus Cayman Blocker C, Limited received
on Dec. 22, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ian D. Stokoe
c/o Adam Keenan
Telephone: (345) 914 8743
Facsimile: (345) 945 4237
P.O. Box 258 Grand Cayman KY1-1104
Cayman Islands
D&P NEW: Shareholders Receive Wind-Up Report
--------------------------------------------
The shareholders of D&P New World Special Situations Fund received
on Dec. 10, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Mr. Soterakis Koupepides
c/o Harneys Services (Cayman) Limited
Telephone: (345) 949 8599
Facsimile: (345) 949 4451
Harbour Place, 4th Floor
103 South Church Street
P.O. Box 10240 Grand Cayman KY1-1002
Cayman Islands
DIA MET: Shareholders Receive Wind-Up Report
--------------------------------------------
The shareholders of Dia Met Minerals (Africa), Ltd. received on
Dec. 22, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Hugh Dickson
c/o Prudence Pryce
10 Market Street
P.O. Box 765 Camana Bay
Grand Cayman KY1-9006
Cayman Islands
Telephone: +1 (345) 949 7100
Facsimile: +1 (345) 949 7120
DUET ALTERNATIVE: Shareholders Receive Wind-Up Report
-----------------------------------------------------
The shareholders of Duet Alternative Investments Strategies Fund
SPC received on Jan. 15, 2015, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
DMS Corporate Services Ltd
Nicola Cowan
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
GRAND RICHMOND: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Grand Richmond Investments Ltd. received on
Dec. 22, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Appleby Trust (Cayman) Ltd
c/o Richard Gordon
Telephone: +1 (345) 949 4900
75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
IMPERIAL FUND: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Imperial Fund Ltd. received on Dec. 30, 2014,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Michael Saville
c/o John Royle
10 Market Street, PO Box 765
Camana Bay
Grand Cayman KY1-9006
Cayman Islands
Telephone: +1 (345) 769 7206
Facsimile: +1 (345) 949 7120
MULTI-MANAGER ALPHA: Shareholders Receive Wind-Up Report
--------------------------------------------------------
The shareholders of Multi-Manager Alpha Systematic Trend Ltd
received on Dec. 29, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Jane Fleming
c/o Jane Fleming or Jean Ebanks
Telephone: (345) 945-2187
Facsimile: (345) 945-2197
P.O. Box 30464 Grand Cayman KY1-1202
Cayman Islands
OCTAVE-1 FUND: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Octave-1 Fund, Ltd received on Dec. 22, 2014,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
George O'Dowd
c/o Matthew Taber
Telephone: +1 345 949 4900
Appleby Trust (Cayman) Ltd.
75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
OCTAVE-1 LTD: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of Octave-1, Ltd. received on Dec. 22, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
George O'Dowd
c/o Matthew Taber
Telephone: +1 345 949 4900
Appleby Trust (Cayman) Ltd.
75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
REPAK LIMITED: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Repak Limited received on Dec. 30, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Summit Management Limited
c/o David Egglishaw
Telephone: (345) 945 7676
4-210, Governors Square
P.O. Box 32311 Grand Cayman KY1-1209
Cayman Islands
SPRUCE REAL: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Spruce Real Assets Fund (Offshore) Ltd.
received on Dec. 23, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Sean Flynn
c/o Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6365
VERDIS OFFSHORE: Shareholders Receive Wind-Up Report
----------------------------------------------------
The shareholders of Verdis Offshore Hedged Strategies Fund, Ltd.
received on Jan. 15, 2015, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
DMS Corporate Services Ltd
Nicola Cowan
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
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C H I L E
=========
GEOPARK LATIN AMERICA: S&P Affirms 'B' CCR; Revises Outlook to Neg
------------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on GeoPark
Latin America Agencia en Chile (GeoPark) to negative from
positive. At the same time, S&P affirmed its 'B' corporate credit
and senior secured ratings on the company.
The outlook revision reflects S&P's expectation that GeoPark's
credit metrics will deteriorate over the next two years and that
the company won't be able to materially increase its production
and diversify its reserves base amid the currently weak oil
prices. Under S&P's assumptions that the company will reduce
capital spending to its public guidance of $60 million - $70
million during 2015 (from about $230 million during 2014) while
keeping a flat production level at about 20,500 barrels of oil
equivalent per day, S&P expects its debt to EBITDA to be 5.0x-
5.5x.
S&P is revising its assessment of GeoPark's liquidity to "less
than adequate" from "adequate." The company's risk management has
been generally prudent, cash balances have been high, and S&P
expects sources of funds to exceed uses by 20% in the next 12
months. However, S&P believes its ability to absorb high-impact
low-probability events has weakened, which could increase its
refinancing needs during 2015 and 2016. Moreover, the company's
financial flexibility could lessen during 2015 because S&P
believes it would breach its incurrence covenants during the
second half of the year, which would limit its ability to issue
additional debt (approximately $80 million).
===============
C O L O M B I A
===============
PACIFIC RUBIALES: Under Pressure from Low Oil Prices, Fitch Says
----------------------------------------------------------------
Fitch Ratings expects an extended period of low oil prices over
the next 12 to 18 months to pressure the liquidity position of
Pacific Rubiales Energy Corp. (Pacific Rubiales; IDR 'BB+',
Outlook Stable) and force the reduction of capex to preserve
liquidity. The effect of cutting capex over a prolonged period
could compromise the company's long-term viability given its
relatively low reserve life.
Fitch will monitor Pacific Rubiales' actions to preserve liquidity
and manage capital expenditures over the next three to six months
and assess the impact of these actions on the company's long term
credit profile. Positively, the company's credit profile benefits
from its manageable amortization schedule with no significant debt
amortizations until 2019. Annual interest expenses of
approximately USD250 million can be met with the estimated USD1
billion of EBITDA generation at current prices of approximately
USD50/bbl and USD478 million of cash on hand as of September 2014.
Furthermore, the company has a USD1 billion undrawn committed
credit line.
Pacific Rubiales' ratings may be downgraded should oil prices
remain at current levels for the next six to 18 months. More
specifically, the ratings could be downgraded if adjusted leverage
is sustained above 2x; if the reserves replacement ratio declines;
and/or if production and reserves decline. Pacific Rubiales'
ratings will also be pressured if the company reinstates its
dividend or equity buy-back programs during the current low oil
price environment.
Fitch anticipates that near-term crude prices will remain below
its long-term price assumption of USD75/bbl. Under current crude
price scenarios, Fitch believes Rubiales will trim capex to USD1
billion/year, which would allow the company to be FCF break-even
if WTI average USD60/bbl during 2015. The company reported 2015
guidelines for FFO of between USD1.1 billion and USD1.3 billion
and the same range for capex. Under a sustained sub-USD60/bbl
scenario that extends for 12 or 24 months, the company's credit
quality would be significantly hindered and its ratings will face
downward pressure. Under this scenario, the company's leverage
levels for the next two years would rise to above 4x Net
Debt/EBITDA, which would place it above the company's covenant
restrictions that would prevent it from issuing additional debt
(maintenance covenants prevent the company from issuing debt
should total debt to EBITDA exceeds 3.5x).
A prolonged reduction of capex to preserve liquidity would
compromise the company's long-term viability given its relatively
low reserve life. Pacific Rubilaes proved reserve (1P) life is
estimated to be currently between 8.0 and 8.5 years. Fitch sees
reserve live below 10 years to be commensurate with a high yield
credit profile. Pacific Rubilaes leverage, as measured by total
debt to 1P reserves is estimated at approximately USD10/bbl. A
prolong reduction in capex to preserve liquidity would likely
affect the company's reserve replacement ration, which in turn
could reduce the company's reserve life and increase reserve based
leverage, thus deteriorating its credit quality.
The recent severe decline in the company's equity value could
create incentives for shareholders to pressure the company to
restructure debt in order to increase shareholders value. This
risk is mitigated by the lack of shareholder concentration and the
company's long-term amortization profile and low interests.
Currently, no shareholder possesses more than 19% of the company's
shares. Under Canadian law, if a shareholder increases its
participation to 20% or more, it has to make a tender offer for
the remaining shares it does not own. Under this case, the
ability of a single shareholder to impose a debt restructuring on
the company increases and Pacific Rubiales rating could be
downgraded. Since the end of August of 2014, Pacific Rubiales
market capitalization has decline more than 75%. Pacific Rubiales
market capitalization remains in excess of USD1 billion.
=============
J A M A I C A
=============
JAMAICA: Duties Charged on Imported Intermediate Goods to be Cut
----------------------------------------------------------------
RJR News reports that there will be an adjustment to the Customs
Administration Fee, which was introduced nearly two years ago by
the Ministry of Finance.
Major Richard Reece, head of Jamaica Customs, told RJR News that
the importation of intermediate goods will attract the same rate
of duty as that which is currently paid for raw materials.
The change will take effect on February 1, notes the report.
This decision came in response to complaints by members of the
manufacturing sector, who insisted that the intermediate goods
were as critical to their manufacturing process as the raw
materials, according to RJR News.
The process of consultation, leading to the change, involved the
Ministry of Finance, the Jamaica Manufacturers' Association,
Jamaica Customs and the Ministry of Industry, Investment &
Commerce, the report notes.
JAMAICA: Records Improvement in Current Account Deficit
-------------------------------------------------------
RJR News reports that new data from the Bank of Jamaica show there
has been an improvement in the country's current account deficit.
For the period July to September last year, the deficit was
US$324.3 million, representing an improvement of US$1.9 million,
relative to the corresponding period in 2013, according to RJR
News.
This means the gap between exports and imports is decreasing in
Jamaica's favor, the report relates.
SCOTIABANK JAMAICA: Contact Center Jobs to Remain in Jamaica
------------------------------------------------------------
RJR News reports that Bustamante Industrial Trade Union (BITU) has
shed light on the decision by Scotiabank Jamaica to restructure
its contact center, resulting in 200 positions being made
redundant.
RJR News first reported that the process will begin on March 31
when the bank will transfer the service to another company in the
Scotiabank Group -- Finbiz.
According to Senator Kavan Gayle, BITU President-General, the bank
had been contemplating the move for sometime, based on the belief
that the service "can be delivered elsewhere within the region, up
to a maximum of 40 per cent lower cost," the report notes.
In light of that consideration, Mr. Gayle said the transition to
another entity, still operating in Jamaica, was the best option,
the report says.
"And so what the bank has decided to do, rather than eliminate the
jobs, (is) to subsume those jobs into a new company operating out
of Canada (Finbiz), which would, in effect, operate here in
Jamaica," Mr. Gayle added.
===========
M E X I C O
===========
GRUPO MEXICO: Agency Told to Disclose Complaints Against Miner
--------------------------------------------------------------
EFE News reports that Mexico's transparency watchdog said it has
instructed the Profepa environmental protection agency to disclose
complaints filed against Grupo Mexico SA de C.V.
The Federal Institute for Access to Information, or IFAI, recalled
in a statement that a toxic spill occurred last Aug. 6 at Grupo
Mexico's Buenavista copper mine in northwestern Mexico, sending
some 40,000 cubic meters of copper sulfate into the Bacanuchi and
Sonora rivers, according to EFE News.
Grupo Mexico is among the world's largest copper producers, with
mining operations in Mexico, Peru and the U.S. The company aims to
produce 850,000 metric tons of copper this year, raising that to
1.3 million tons by 2017.
GRUPO PAPELERO: S&P Keeps 'B+' Rating on CreditWatch Developing
---------------------------------------------------------------
Standard & Poor's Ratings Services kept the rating on Grupo
Papelero Scribe (Scribe) on CreditWatch with developing
implications, where S&P placed it on Aug. 28, 2014. A developing
CreditWatch means that a rating may be raised, lowered, or
affirmed.
On Aug. 28, 2014, S&P placed the 'B+' rating on Scribe on
CreditWatch with developing implications following the
announcement that Grupo Bio Pappel S.A. de C.V. (not rated)
reached an agreement to acquire 100% of Corporacion Scribe
S.A.P.I. de C.V. (Scribe's parent). The final terms of the
transaction have yet to be disclosed, and the deal remains subject
to regulatory approvals.
The CreditWatch placement reflects the currently limited
information regarding the details of the transaction. Therefore,
S&P is uncertain about the transaction's effect on Scribe's cash
flow and credit protection measures. The CreditWatch placement
also reflects the limited visibility that S&P has on Grupo Bio
Pappel's credit profile. Scribe's integration into Grupo Bio
Pappel could result in greater scale, diversification, and
potential synergies for the combined entity. However, S&P don't
expect a significant short-term improvement in Scribe's business
risk profile because the paper products market in Mexico remains
soft, in light of sluggish consumption trends and slow government
spending, particularly in the notebooks, and printing and writing
paper segments where Scribe operates.
S&P plans to resolve the CreditWatch within three months or once
the transaction is completed, and S&P has more clarity on Grupo
Bio Pappel's credit profile. S&P will also assess the potential
effects of the sale on Scribe's business and financial risk
profiles, including cash flow and credit protection measures.
Also, it's unclear what Grupo Bio Pappel's stance will be vis a
vis Scribe's outstanding debt, and whether the new parent would
refinance, maintain, or guarantee the debt.
======================
P U E R T O R I C O
======================
SIGLO REAL: Case Summary & 10 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Siglo Real Corporation
Recinto Sur #329
Old San Juan, PR 00901
Case No.: 15-00289
Chapter 11 Petition Date: January 21, 2015
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Judge: Hon. Brian K. Tester
Debtor's Counsel: Luis D Flores Gonzalez, Esq.
LUIS D FLORES GONZALEZ LAW OFFICE
80 Calle Georgetti Suite 202
San Juan, PR 00925-3624
Tel: 787 758-3606
Fax: 787-753-5317
Email: ldfglaw@coqui.net
ldfglaw@yahoo.com
Total Assets: $5.20 million
Total Liabilities: $5.87 million
The petition was signed by Jaime Sanchez Rosado, president.
A list of the Debtor's 10 largest unsecured creditors is available
for free at http://bankrupt.com/misc/prb15-00289.pdf
================================
T R I N I D A D & T O B A G O
================================
TRINIDAD & TOBAGO: Seeks to Deal With Foreign Exchange Shortage
---------------------------------------------------------------
Caribbean360.com reports that the Central Bank of Trinidad and
Tobago says it has sold US$200 million to authorized dealers in
its first foreign exchange intervention for 2015.
"This sale was conducted to ease some of the outstanding demands
for foreign exchange especially those coming from the business
community," the Central Bank said in a statement, noting also that
"this s first sale was timed to bring relief to the market as
January typically sees lower conversions of foreign exchange by
energy companies," according to Caribbean360.com.
Last week, following a meeting between Prime Minister Kamla Persad
Bissessar and business representatives, Finance Minister Larry
Howai; Minister of Planning and Development Dr Bhoe Tewarie and
Minister of Trade, Industry, Investment and Communications Vasant
Bharath, had been mandated to seek a meeting with Central Bank
Governor Jwala Rambarran, "over the widespread feeling that the
continuing stresses with availability of foreign exchange
presented too many uncertainties for business," the report notes.
The Central Bank said it will release its Monetary Policy
Announcement (MPA) on January 30 "at which time we will provide
details on the impact of falling energy prices on the country's
balance of payments and the domestic foreign exchange market," the
report relates.
=================
X X X X X X X X X
=================
LATAM: IMF Says Economic "Worries" Predominate in Latin America
---------------------------------------------------------------
EFE News reports that the International Monetary Fund's director
for the Western Hemisphere said that two days after the
organization cut its 2015 growth forecast for Latin America,
economic "worries" prevail across the region.
In its World Economic Outlook Update, the IMF forecast growth of
just 1.3 percent for Latin America in 2015, down nine-tenths of a
percentage point from the Fund's previous forecast in October,
according to EFE News.
***********
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 2015. 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 * * *