/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150325.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 Wednesday, March 25, 2015, Vol. 16, No. 059 Headlines A N T I G U A & B A R B U D A LIAT: Pilots Threaten Industrial Action B R A Z I L BRAZIL: Economy to Suffer Biggest Contraction, Says Analyst SETE BRASIL: S&P Lowers CCR to 'SD' on Default of Bilateral Loan C A Y M A N I S L A N D S CALEDONIAN BANK: Creditors' First Meeting Set for April 16 CALEDONIAN SECURITIES: Creditors' First Meeting Set for April 17 CLAIRVUE-TOR CAYMAN: Commences Liquidation Proceedings EFFICIENCY GROWTH: Creditors' Proofs of Debt Due April 6 EMEA CAPITAL: Creditors' Proofs of Debt Due April 15 EMEA CAPITAL MASTER: Creditors' Proofs of Debt Due April 15 EMERALD ONE: Commences Liquidation Proceedings EMERALD TWO: Commences Liquidation Proceedings INTEGRITY GROWTH: Creditors' Proofs of Debt Due April 6 LAPLACE CAPITAL: Creditors' Proofs of Debt Due April 16 LAPLACE CAPITAL LP: Creditors' Proofs of Debt Due April 16 LAPLACE TRADING: Creditors' Proofs of Debt Due April 16 LORA INVESTMENTS: Creditors' Proofs of Debt Due April 6 SO FINANCE: Creditors' Proofs of Debt Due April 15 TT AMSTERDAM: Creditors and Contributories to Meet on April 13 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Products Too Reliant on US, Haiti DOMINICAN REPUBLIC: CEI-RD Plays Down Impact From US Agro Ban J A M A I C A JAMAICA: Interest Rates on J$ Loans Fell in December Quarter JAMAICA: Winding Up Inactive Public Sector Entities M E X I C O EMPRESAS ICA: S&P Lowers CCR to 'B' on Slower Debt Reduction MEXICO: To Adjust Monetary Policy to Counter Volatility - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Pilots Threaten Industrial Action --------------------------------------- Caribbean360.com reports that travelers were placed on alert for possible industrial action by pilots of the regional airline LIAT, operating as Leeward Islands Air Transport, with the financially strapped company warning that its employees were using a "cynical tactic to exploit the fears of the travelling public" particularly over the Easter weekend. The Leeward Islands Airline Pilots Association (LIALPA) has been calling on the airline to reinstate two pilots who were dismissed following an incident last October in which one of the company's new aircraft was damaged, according to Caribbean360.com. Earlier, LIALPA met with LIAT representatives, Antigua and Barbuda Labour Minister Steadroy "Cutie" Benjamin as well as Labor Commissioner Eltonia Rojas and a statement issued afterwards revealed that the government officials were of the view that the two pilots should be reinstated and that LIAT would be reviewing the case, the report notes. But the pilots say LIAT has disregarded the advise and in a statement expressed their disappointment with the airline's decision, calling it "harsh and not in the spirit of good industrial best practices envisaged by the Labour Code of Antigua and Barbuda," the report relates. The report discloses that the pilots are also alleging that LIAT has resorted to "unethical rostering practices" including eliminating crew meal breaks while increasing work hours to compensate for a steadily declining workforce. The association said these strenuous conditions have resulted in the regional carrier losing 10 per cent of its pilot workforce over the last year, the report notes. It also warned the public that the poor working conditions at LIAT, combined with the pilots' increased stress load, may have a negative impact on the airline's flight schedule in coming months, citing "inevitable industrial action," the report relays. But LIAT in its response accused the pilots of threatening industrial action at a time of high travel within the region, the report notes. "Threatening industrial action shortly before a public holiday, in this case, the Easter period, is a common, often repeated and cynical tactic employed by LIALPA to exploit the fears of the travelling public," the report quoted airline's chief executive officer, David Evans, as saying. "I have had dealings with numerous pilot associations over many years and in many jurisdictions. These dealings have often been tough and uncompromising, but always based on mutual respect and a clear understanding of the needs of the business. This has not been my experience with LIALPA. Unless we can reach a common understanding of LIAT's current circumstances, LIAT's future looks bleak," Mr. Evans said, the report notes. "We will do everything we can to minimize industrial action over the Easter period, for the sake of the travelling public. If however, there is significant disruption, the resulting financial crunch would mean that salary payments would be further delayed, and the airline would be unable to meet the demands of its creditors. Such a situation would put LIAT in a position of no return, leading to a shutdown of the airline. This would be catastrophic for the entire region and its economies, and or the jobs and livelihoods of thousands of people," Mr. Evans added, the report discloses. The report adds that Mr. Evans said all of the grievances raised by the pilots are either before the courts or being dealt with in the normal manner. LIAT maintained that the two pilots were terminated after they blatantly disregarded instructions from the company's Flight Operations Department and flew an aircraft to V.C. Bird International Airport just hours before the passage of tropical storm Gonzalo, the report notes. It said the decision to terminate followed a full internal investigation of the incident during which the pilots were represented, the report discloses. "The company is quite convinced it acted correctly in this matter, and it is before the courts," Mr. Evans said, the report adds. About LIAT LIAT, operating as Leeward Islands Air Transport, is an airline headquartered on the grounds of V. C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 21 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 2, 2014, Caribbean360.com said that chairman of the shareholder governments of the financially troubled regional airline, LIAT, operating as Leeward Islands Air Transport, Dr. Ralph Gonsalves said while he is unaware of the details regarding any possible retrenchment of employees, the airline needs to deal with its high cost of operations. The TCR-LA on March 10, 2014, citing Caribbean360.com, reported that LIAT said it will take "decisive action" to deal with unprofitable routes as the Antigua-based airline seeks to make its operations financially viable. On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday, reported that there's much upheaval at the highest levels of LIAT -- the Board and the Executive. Following the sudden resignation of Chief Executive Officer Captain Ian Brunton, David Evans replaced Mr. Brunton as chief executive officer. =========== B R A Z I L =========== BRAZIL: Economy to Suffer Biggest Contraction, Says Analyst ----------------------------------------------------------- EFE News reports that financial experts expect Brazil's economy to shrink 0.83 percent in 2015, its biggest contraction since 1990, and inflation to climb to 8.12 percent, its highest level since 2003, according to the results of a Central Bank survey released. The private economists, who were polled for the monetary authority's weekly Focus bulletin, had forecast an economic contraction for 2015 of 0.78 percent in last week's survey, according to EFE News. If their forecast proves accurate, Brazil's economy, which expanded 2.49 percent in 2013 and 0.2 percent last year, will post its worst result since gross domestic product contracted 4.35 percent in 1990, the report relates. It marked the 12th consecutive week that private financial experts have lowered their forecast for Brazil's economy, the report notes. At the start of the year, those economists predicted growth of 0.5 percent in 2015, the report discloses. In the survey released, the analysts forecast growth of 1.2 percent in 2016, the report says. They also were more pessimistic about consumer prices, raising their 2015 inflation forecast from 7.93 percent last week to 8.12 percent, which would be the highest level since the annual inflation rate stood at 9.3 percent at the end of 2003, the report notes. Brazil, which aims to keep annual inflation within a target range of between 4.5 percent and 6.5 percent, ended 2014 with an inflation rate of 6.41 percent, the report relays. The country's federal, state and local governments ended 2014 with a cumulative primary budget deficit (before interest payments) equivalent to $12.51 billion, putting public finances in the red for the first time since the current reporting methodology was adopted in 2001, the report discloses. To combat the country's deficit and inflation problems, the government unveiled a series of austerity measures, including spending cuts, the paring back of tax breaks, tighter credit, and a reduction in labor benefits, that have sparked criticism, even from labor unions and other allies of President Dilma Rousseff on the left, the report notes. EFE News adds that the president has attributed the country's problems to the global financial crisis that erupted in 2008 and said the counter-cyclical measures the government had adopted until now, mainly state-subsidized credit and tax breaks, had prevented a sharp rise in unemployment and a sharp slowdown in growth seen over the past six-and-a-half years in other countries. SETE BRASIL: S&P Lowers CCR to 'SD' on Default of Bilateral Loan ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its global scale corporate credit rating on Sete Brasil Participa‡oes S.A. (Sete) to 'SD' from 'B-'. S&P also lowered the national scale rating to 'SD' from 'brB-'. At the same time, S&P removed both corporate credit ratings from CreditWatch with negative implications where S&P placed them on Feb. 13, 2015. At the same time, S&P is lowering the rating on Sete's R$1.85 billion debenture issuance to 'brCCC' from 'brB-'. S&P is keeping the issue rating on CreditWatch with negative implications. The downgrade reflects Sete's declaration of default and subsequent nonpayment on the $250 million bilateral bridge loan it has with Standard Chartered Bank. The bank has sought the guarantee from Fundo de Garantia de Construcao Naval (FGCN) and other existing cash collateral guarantees that should provide a very high recovery to the bank. The CreditWatch placement on the rated debentures now reflects the higher short-term refinancing and debt acceleration risks. Although S&P believes the remaining existing creditors still have incentives to continue to refinance their loans until the long- term financing package is established (as the majority of these creditors are Sete's shareholders and benefit from the FCGN guarantee but not from the cash collateral), S&P also believes the refinancing and debt acceleration risks are much higher as the company faces challenges to secure long-term financing. This is despite the fact that the rated debenture's principal and interest payment are due in 2018. ========================== C A Y M A N I S L A N D S ========================== CALEDONIAN BANK: Creditors' First Meeting Set for April 16 ---------------------------------------------------------- The creditors of Caledonian Bank Limited will hold their first meeting on April 16, 2015, at 10:00 a.m. The company was ordered to wind up its operations on Feb. 23, 2015, by the Grand Court of Cayman Islands. The company's liquidator is: Claire Loebell c/o Ernst & Young Ltd. 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1 -1106 Cayman Islands CALEDONIAN SECURITIES: Creditors' First Meeting Set for April 17 ---------------------------------------------------------------- The creditors of Caledonian Securities Limited will hold their first meeting on April 17, 2015, at 10:00 a.m. The company was ordered to wind up its operations on Feb. 23, 2015, by the Grand Court of Cayman Islands. The company's liquidator is: Claire Loebell c/o Ernst & Young Ltd. 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1 -1106 Cayman Islands CLAIRVUE-TOR CAYMAN: Commences Liquidation Proceedings ------------------------------------------------------ On March 2, 2015, the shareholder of Clairvue-Tor Cayman Ltd. 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: Brendan MacDonald c/o StepStone Group 150 California Street Suite 850 San Francisco CA 94111 USA Telephone: +1 (345) 914 6365 EFFICIENCY GROWTH: Creditors' Proofs of Debt Due April 6 -------------------------------------------------------- The creditors of Efficiency Growth Fund GP Limited are required to file their proofs of debt by April 6, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 3, 2015. The company's liquidator is: Emily Chih Hsuan Chiang Apt 72B, Tower 1 The Harbourside No.1 Austin Road West Kowloon Hong Kong Telephone: (852) 3666 9888 Facsimile: (852) 3665 0003 EMEA CAPITAL: Creditors' Proofs of Debt Due April 15 ---------------------------------------------------- The creditors of Emea Capital Income Fund Limited are required to file their proofs of debt by April 15, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands EMEA CAPITAL MASTER: Creditors' Proofs of Debt Due April 15 ----------------------------------------------------------- The creditors of Emea Capital Income Master Fund Limited are required to file their proofs of debt by April 15, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 25, 2015. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands EMERALD ONE: Commences Liquidation Proceedings ---------------------------------------------- On March 4, 2015, the sole member of Emerald One 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: Phang Thim Fatt 8 Shenton Way #18-01 Singapore 068811 EMERALD TWO: Commences Liquidation Proceedings ---------------------------------------------- On March 4, 2015, the sole member of Emerald Two 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: Phang Thim Fatt 8 Shenton Way #18-01 Singapore 068811 INTEGRITY GROWTH: Creditors' Proofs of Debt Due April 6 ------------------------------------------------------- The creditors of Integrity Growth Fund GP Limited are required to file their proofs of debt by April 6, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 3, 2015. The company's liquidator is: Emily Chih Hsuan Chiang Apt 72B, Tower 1 The Harbourside No.1 Austin Road West Kowloon Hong Kong Telephone: (852) 3666 9888 Facsimile: (852) 3665 0003 LAPLACE CAPITAL: Creditors' Proofs of Debt Due April 16 ------------------------------------------------------- The creditors of Laplace Capital Partners Limited are required to file their proofs of debt by April 16, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 3, 2015. The company's liquidator is: Highwater Limited c/o Nicole Gagliano Telephone: (345) 943 2295 Facsimile: (345) 943 2294 Grand Pavilion Commercial Centre, 1st Floor 802 West Bay Road P.O. Box 31855 Grand Cayman KY1-1207 Cayman Islands LAPLACE CAPITAL LP: Creditors' Proofs of Debt Due April 16 ---------------------------------------------------------- The creditors of Laplace Capital Partners LP are required to file their proofs of debt by April 16, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 3, 2015. The company's liquidator is: Highwater Limited c/o Nicole Gagliano Telephone: (345) 943 2295 Facsimile: (345) 943 2294 Grand Pavilion Commercial Centre, 1st Floor 802 West Bay Road P.O. Box 31855 Grand Cayman KY1-1207 Cayman Islands LAPLACE TRADING: Creditors' Proofs of Debt Due April 16 ------------------------------------------------------- The creditors of Laplace Trading Limited are required to file their proofs of debt by April 16, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 3, 2015. The company's liquidator is: Highwater Limited c/o Nicole Gagliano Telephone: (345) 943 2295 Facsimile: (345) 943 2294 Grand Pavilion Commercial Centre, 1st Floor 802 West Bay Road P.O. Box 31855 Grand Cayman KY1-1207 Cayman Islands LORA INVESTMENTS: Creditors' Proofs of Debt Due April 6 ------------------------------------------------------- The creditors of Lora Investments, Ltd. are required to file their proofs of debt by April 6, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 3, 2015. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited c/o Jo-Anne Maher Telephone: (345) 814-9255 Facsimile: (345) 949-4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands SO FINANCE: Creditors' Proofs of Debt Due April 15 -------------------------------------------------- The creditors of So Finance (Cayman) Ltd. are required to file their proofs of debt by April 15, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 2, 2015. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands TT AMSTERDAM: Creditors and Contributories to Meet on April 13 -------------------------------------------------------------- The creditors and contributories of TT Amsterdam Funding Company, Ltd will hold their first meeting on April 13, 2015, at 9:00 a.m. The company was ordered to wind up its operations on Feb. 27, 2015, by the Grand Court of Cayman Islands. The company's liquidator is: Christopher Kennedy c/o Barry Lynch Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Products Too Reliant on US, Haiti ----------------------------------------------------- Dominican Today reports that the head of the Roundtable of Commonwealth Countries in Dominican Republic urged the country to focus on exploring new international markets for exports, noting that the US and Haiti bans on Dominican fruits and vegetables send a clear signal and a reminder that 'all eggs cannot be placed in one basket'. Fernando Gonzalez Nicolas said it's not healthy for Dominican Republic to concentrate 64 percent of its exports on the US, Puerto Rico and Haiti markets, according to Dominican Today. "The total Dominican exports were 8.05 billion dollars, while 4.09 billion of that were exported to the United States and Puerto Rico in 2013," the report quoted Mr. Nicolas as saying. The report notes that Mr. Gonzalez said US$1.05 billion were exported to Haiti in the same period of 2013. The business leader said countries with healthy foreign trade don't concentrate more than 20 percent of total exports in one nation, for which he suggests looking to the markets of the Commonwealth's 53 countries, the report relates. "Let's see how we can export more, to the Caribbean, Canada, Britain, India, Malaysia, Australia, New Zealand, Singapore, South Africa etc," Mr. Gonzalez said, noting that they are members of the Commonwealth, which controls 25 percent of world trade, the report notes. DOMINICAN REPUBLIC: CEI-RD Plays Down Impact From US Agro Ban ------------------------------------------------------------- Dominican Today reports that the head of Dominican Republic's Exports and Investment Center (CEI-RD) disclosed government support for producers affected by the US ban on several Dominican agro products, listed as hosts of the fruit fly. Jean Alain Rodriguez said all products that were in transit would enter US territory due to international standards, but noted that from now on its potential impact will be established to propose solutions, according to Dominican Today. "The first thing is that it's a temporary and important measure to which we must pay close attention and that's what the government is doing," the official said, the report notes. The report relays that Mr. Rodriguez said both the Agriculture Ministry and CEI-RD are providing all necessary support to producers. "It's (the ban) limited to only four fruits that are exported by Dominican Republic to the United States and yet, at the moment, there's no impact, the size of the impact it may have will depend on the duration of that measure, It could either be one or two days, as it may also take several days," Mr. Rodriguez said, the report adds. ============= J A M A I C A ============= JAMAICA: Interest Rates on J$ Loans Fell in December Quarter ------------------------------------------------------------ RJR News reports that the Bank of Jamaica has released information showing that interest rates on Jamaican dollar loans fell in the December quarter. The information was released as part of the results of its latest survey on credit conditions in the market. The central bank report said interest rates were generally lower because of the overall weakness in demand for local currency business loans, according to RJR News. The central bank report added that the lower rate could have also been influenced by greater supply of Jamaican dollars to the market, RJR News relates. The BOJ said, in the December quarter, it injected J$10.5 billion into the market, the report notes. That was up from the J$3.3 billion that was supplied to the market in the September quarter, the report relays. EPOC Concerned Meanwhile, the Economic Program Oversight Committee (EPOC) has expressed concern over the decline in the rate of credit growth to the business sector, the report relays. The EPOC, in a release, said it will keep a keen eye on the development and make comments in the future, the report discloses. Data from the Bank of Jamaica's Annual Report for 2014 show commercial banks grew loans to the private sector by only 4.8% last year. That is compared to a 16.3% rate of growth in 2013 and an average growth of over 9% for the previous five years, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2015, Fitch Ratings has affirmed Jamaica's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B-'. The issue ratings on Jamaica's senior unsecured foreign and local currency bonds are also affirmed at 'B-'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The Country Ceiling is affirmed at 'B' and the short-term foreign currency IDR at 'B'. JAMAICA: Winding Up Inactive Public Sector Entities --------------------------------------------------- RJR News reports that the Jamaica Ministry of Finance is reporting progress in winding up inactive public sector entities. According to the Jamaica Public Bodies Report for 2015/2016, the number of inactive entities has been reduced from 74 in 2010, to 24 March 18, RJR News relates. It says various public bodies have obtained expertise and assistance to expedite the process of winding up subsidiaries, according to RJR News. The Finance Ministry expects more inactive public bodies will be wound up, the report notes. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2015, Fitch Ratings has affirmed Jamaica's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B-'. The issue ratings on Jamaica's senior unsecured foreign and local currency bonds are also affirmed at 'B-'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The Country Ceiling is affirmed at 'B' and the short-term foreign currency IDR at 'B'. =========== M E X I C O =========== EMPRESAS ICA: S&P Lowers CCR to 'B' on Slower Debt Reduction ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its global scale corporate credit rating on Empresas ICA S.A.B. de C.V. (ICA) to 'B' from 'B+'. At the same time, S&P lowered its global scale issue-level rating on the company's senior unsecured notes to 'B-' from 'B'. The recovery rating of '5' on the notes, indicating expectation of modest (10% to 30%) recovery in the event of a payment default, remains unchanged. S&P also affirmed its 'mxBBB-' national scale corporate credit rating on ICA and revised the outlook on it to stable from negative. The outlook on both scales is stable. The downgrade reflects the company's slower debt reduction pace than S&P previously expected, which have resulted in weaker financial credit metrics. Currently, ICA's debt accounts for 45% of the holding company's total debt of about MXN23.7 billion. Additional, the depreciation of the Mexican peso against the US dollar increased company's debt by 21.5%. As a result, the company's debt to EBITDA was at 8.0x as of Dec. 31, 2014, compared with 7.0x that S&P originally expected. S&P expects this ratio to 6.5x-7.0x for the next two years. Despite ICA's competitive business scale, leading market position within the Mexican engineering and construction sector, and its proven access to different funding sources, S&P is revising its comparable rating analysis score on the company to "neutral" from "positive" because S&P believes that ICA's high cash requirements to support working capital needs lead to a debt leverage of more than 5.0x. S&P's assessment of ICA's business risk profile as "fair" reflects its status as the largest engineering, procurement, and construction firm in Mexico, with a long and positive track record throughout its various business divisions. This assessment also incorporates the company's diversified portfolio mix with investments in large projects with complex designs and heavy construction, as well as participation in road and water concessions, and airport construction. The inherent cyclicality of the construction industry, the geographic concentration of its markets, and its substantial dependence on Mexican government spending mitigate these strengths. MEXICO: To Adjust Monetary Policy to Counter Volatility ------------------------------------------------------- EFE News reports that Mexican authorities have a plan to combat volatility in global financial markets that includes interventions in the currency market and other adjustments to monetary policy, the central bank's governor, Agustin Carstens, said. Speaking at a banking convention in this Pacific coast city, Mr. Carstens said "a significant reduction in global oil prices" and the persistent weakness of global economic activity have been among the causes of volatility in recent months, according to EFE News. Nevertheless, "the factor that has most contributed to this volatility has been the expectation that the U.S. Federal Reserve will begin raising its benchmark interest rate from its current historically low level some time in 2015," Mr. Carstens said, the report relays. The report discloses that the Fed's policy-making body said this week that an increase in its federal funds rate, which has been near zero since 2008, is unlikely at its April meeting but the language in the statement also led many analysts to predict the rate hike could come at its June meeting. The report notes that Mr. Carstens explained that the lowering of the federal funds rate, aimed at stimulating the U.S. economy amid the global recession, "created big incentives for capital from that country to flow to others that offered a better return." "Mexico has undoubtedly been a recipient of a portion of that capital, which at the time was reflected in the appreciation of the peso, in a reduction of domestic interest rates and in a certain accumulation of foreign reserves," the Bank of Mexico governor said, the report relays. It is unsurprising, therefore, that the prospects of a reversal of the Fed's monetary policy, combined with "the drop in oil prices" have been reflected in a depreciation of the peso relative to the dollar, Mr. Carstens said, the report says. Over the past two months, the peso has depreciated more than 5 percent, falling from MXN14.59 per dollar to MXN15.39 per greenback, the report notes. In response, the Mexican central bank announced a plan earlier this month to start selling as much as US$52 million a day over the next three months, the report relays. The report discloses that Mr. Carstens noted that Mexico is at liberty to act due to its ample foreign reserves and an existing US$75 billion flexible credit line with the International Monetary Fund. Separately, Mr. Carstens reiterated that the Bank of Mexico could raise its benchmark overnight rate this year, the report notes. Mr. Carstens also said the foreseeable increase in the Fed's federal funds rate would take place amid a more favorable outlook on the growth of the U.S. economy, whose improvement would provide a strong boost to Mexico's exports and overall growth, 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 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 * * *