/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150416.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, April 16, 2015, Vol. 16, No. 074 Headlines A R G E N T I N A ARGENTINA: Buenos Aires Benefits From Judge's Ruling YPF SA: Petersen Sues Firm Over Losses Related to Nationalization B R A Z I L BANCO DO BRAZIL: Merges Retail Banking Unit With Human Resources CENTRAIS ELETRICAS: S&P Ups Rating to BB-; Withdraws at Request ENERGISA S.A.: Fitch Raises IDR to 'BB'; Outlook Stable JBS SA: Has Cash for Takeover but Focused on Growth, CEO Says MARANHAO: Fitch Affirms BB+ IDR; Revises Outlook to Negative PETROLEO BRASILEIRO: Signs MOU on Gas Exploration in Bolivia PETROLEO BRASILEIRO: Audited 2014 Results to Be Reviewed on Apr 22 SBM BALEIA: Moody's Withdraws 'Ba3' Rating on Sr. Secured Notes U.S.J.-ACUCAR: Fitch Lowers IDR to 'B' & Puts on Watch Neg. C A Y M A N I S L A N D S CALEDONIAN BANK: Creditors' First Meeting Set for April 16 CALEDONIAN BANK: Seeks Potential Buyers for Assets FEBBRINA INVESTMENT: Creditors' Proofs of Debt Due May 13 GLOBAL COMMERCIAL: Creditors' Proofs of Debt Due April 23 IMMOTION INTERNATIONAL: Creditors' Proofs of Debt Due May 4 MARIO KASSAR: Creditors' Proofs of Debt Due May 4 NEWCAP INSURANCE: Commences Liquidation Proceedings REVIVAL FINANCE: Creditors' Proofs of Debt Due April 23 SANTO DOMINGO: Creditors' Proofs of Debt Due May 13 SSARIS MULTI-MANAGER: Creditors' Proofs of Debt Due May 4 STAMFORD LIFE: Creditors' Proofs of Debt Due May 13 TOWER FINANCE: Commences Liquidation Proceedings WHISTLER INTERNATIONAL: Creditors' Proofs of Debt Due May 4 C H I L E * CHILE: To Ease Electricity Shortages by Tapping Renewables P U E R T O R I C O PUERTO RICO ELECTRIC: Bondholders Offer Forbearance Extension - - - - - ================= A R G E N T I N A ================= ARGENTINA: Buenos Aires Benefits From Judge's Ruling ---------------------------------------------------- Camila Russo at Bloomberg News reports that as a U.S. judge makes life harder for Argentina, the country's biggest province is proving to be the biggest beneficiary. U.S. District Court Judge Thomas Griesa's March 12 decision to extend a ruling that prohibits the nation from paying its bonds is prompting investors to buy those issued by Buenos Aires, according to Bloomberg News. At 9.96 percent, its $1.05 billion of notes due 2015 now yield just 0.89 percentage points more than government debt, Bloomberg News relates. Before the ruling, the premium was 3.4 percentage points. Bloomberg News discloses that the shift reflects bond investors' latest move to protect themselves against an ever-expanding ban on Argentina's ability to honor debt obligations until it settles with disgruntled creditors from a default in 2001. After blocking Argentina from making payments on foreign-currency exchange bonds in July, Judge Griesa is now preventing the country from paying dollar-denominated notes issued locally as part of debt restructurings, Bloomberg News relates. "Buenos Aires is the best choice for a credit in Argentina," said Gabriele Bruera, an emerging-market money manager at Compass Asset Management, which owns the province's bonds, Bloomberg News says. Buenos Aires province bonds are a good investment because they're shielded from Argentina's legal issues, while being "close enough to the sovereign" in risk since it's the biggest province in the country, accounting for half of gross domestic product, Mr. Bruera added. Singer Dispute The report relates that Argentina's peso was little changed April 14 at 8.8582 per dollar as of 12:16 p.m. in New York. Bonds from Buenos Aires due have gained 3.2 cents this year to 100.79 cents on the dollar, while similar-maturity government bonds fell 0.28 cent to 99.38 cents on the dollar, Bloomberg News notes. The province's debt due 2021 is also outperforming government bonds of the closest maturity, notes the report. Yields on Argentina's dollar notes due 2015 have jumped 0.8 percentage point in the past month to 8.9 percent, Bloomberg News says. The nation had been able to make payments on all its local- law securities while being in default on its overseas debt, Bloomberg News notes. That changed after Judge Griesa's March 12 ruling, which stems from a decade-long legal tussle between Argentina and creditors who rejected the nation's restructuring after the 2001 default, Bloomberg News discloses. The holdouts, led by billionaire hedge fund-manager Paul Singer, have won the right to full repayment in court, says the report. Better Finances Bond investors are now concerned Judge Griesa may try to expand the reach of his ruling even further to local dollar debt that Argentina has issued independently from its debt swaps, said Siobhan Morden, the head of Latin America fixed-income strategy at Jefferies LLC, Bloomberg News relates. Those securities account for 21 percent of the nation's local dollar debt, notes the report. "The local sovereign bonds are re-pricing for legal risks and higher repayment risk," Ms. Morden said in an April 10 report, in which she recommends owning Buenos Aires province bonds, as well as local-law bonds due 2017 and 2024, Bloomberg News discloses. In addition to being free of any legal restrictions on its ability to repay debt, Buenos Aires also boasts better finances than the federal government, notes Bloomberg News. While the province recorded a budget surplus for the second straight year in 2014, Argentina itself posted its biggest deficit on record. Buenos Aires also retains access to overseas debt markets, while Argentina hasn't borrowed internationally since 2001. The province has "better financial conditions," Compass' Mr. Bruera said, Bloomberg News adds. * * * The Troubled Company Reporter-Latin America, on Aug. 1, 2014, reported that Argentina defaulted on some of its debt late July 30 after expiration of a 30-day grace period on a US$539 million interest payment. Earlier that day, talks with a court- appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. As a result, reported the TCR-LA on Aug. 1, Standard & Poor's Ratings Services lowered its unsolicited long-and short-term foreign currency sovereign credit ratings on the Republic of Argentina to selective default ('SD') from 'CCC-/C'. The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings downgraded Argentina's Foreign Currency Issuer Default Rating (IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency Issuer Default Rating to 'RD' from 'C'. Meanwhile, Moody's Investors Service affirmed Argentina's Caa1 issuer rating, which also applies to domestic law bonds, confirmed the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca rating on the original defaulted bonds. The long-term issuer rating was placed on negative outlook, reported the TCR-LA on Aug. 5, 2014. On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America Agente de Calificacion de Riesgo affirmed the deposit, debt, issuer and corporate family ratings on Argentina's banks and financial institutions, both on the global and national scales. The outlook on these ratings has been changed to negative from stable. At the same time, the rating agency has affirmed the banks' Caa2 foreign-currency deposit ratings and Not- Prime short-term ratings. The banks' standalone E financial strength ratings corresponding to caa1 baseline credit assessments (BCA) have also been affirmed. The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has downgraded Argentina's long-term foreign currency issuer rating from CC to Selective Default (SD). The short-term foreign currency rating has been downgraded to Default (D), from R-5. The long-term and short-term local currency issuer ratings have been confirmed at B (low) and R-5, respectively. The trend on the long-term local currency rating is Negative, and the trend on the short-term local currency rating is Stable. 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'. YPF SA: Petersen Sues Firm Over Losses Related to Nationalization ----------------------------------------------------------------- Y. Peter Kang at Law360 reports that Petersen Energia Inversora SAU and Petersen Energia SAU, two Spain-based companies currently in bankruptcy proceedings, lobbed a suit at Argentina and state- owned YPF SA in New York federal court on April 8 in connection with losses they suffered due to their 25% stake in YPF when it was nationalized in 2012. According to Law360, Petersen Energia Inversora SAU and Petersen Energia SAU said the South American country violated YPF shareholder agreements when it nationalized the company and filed the suit as a successor action to a 2012 proposed class action that ended in a US$5 billion settlement Argentina reached with Spanish oil giant Repsol SA in February 2014. The Petersen entities said they bought shares of YPF, which was originally a state-run monopoly that was taken private via an initial public offering in 1993, based on assurances from Argentina that should the country wish to take back control of the company it would make a tender offer to shareholders, Law360 relates. That never happened, Petersen says in the complaint, accusing the Argentine government of undertaking a campaign to depress YPF's stock by leaking news of an impending nationalization, Law360 relays. Petersen alleges a number of claims, including breach of contract and breach of implied duty of good faith, and seeks unspecified compensatory damages, Law360 notes. The April 8 suit also names YPF as a defendant, Law360 discloses. YPF, or Yacimientos Petroliferos Fiscales, was a state-run monopoly until the early 1990s, when Argentina began privatizing the company, Law360 states. YPF SA is an energy company, operating a fully integrated oil and gas chain with leading market positions across the domestic upstream and downstream segments. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2015, Fitch Ratings rates YPF S.A.'s (YPF) reopening of the company's 2018 and 2024 notes by up to USD750 million 'CCC'. The company's rated notes with maturity dates of December 2018 and April 2024 notes total, before the reopening, USD587 million and USD1 billion respectively. The 2024 notes have a 10-year maturity with amortizations in years eight (30%), nine (30%) and 10 (40%). The 2018 notes have a bullet maturity. =========== B R A Z I L =========== BANCO DO BRAZIL: Merges Retail Banking Unit With Human Resources ---------------------------------------------------------------- Aluisio Alves and Guillermo Parra-Bernal at Reuters report that Banco do Brasil SA merged a division overseeing human resources into its retail banking unit in a move to raise efficiency as Latin America's largest economy faces a challenging outlook. Brazil's largest bank by assets also nominated Paulo Roberto Ricci as senior vice president overseeing the merged retail banking and people management division, according to a regulatory filing, according to Reuters. Mr. Ricci will replace Alexandre Abreu, who was previously head of retail banking and was named chief executive officer earlier this year at the state-controlled bank, the report notes. A new vice presidency slot was created to oversee the infrastructure, services and operations division, which will be headed by former government minister Cesar Borges, the filing said, the report adds. As reported in the Troubled Company Reporter-Latin America on Oct. 1, 2014, Standard & Poor's Ratings Services has raised its rating on Banco do Brasil S.A.'s (BdB) perpetual non-cumulative subordinated bonds to 'BB-' from 'B+'. In addition, S&P affirmed its 'BB' rating on the bank's $500 million 10-year subordinated deferrable notes. In addition, S&P removed its "Under Credit Observation" identifier from the ratings on these instruments. CENTRAIS ELETRICAS: S&P Ups Rating to BB-; Withdraws at Request --------------------------------------------------------------- Standard & Poor's Ratings Services raised its rating on the Brazilian-based electric power distribution company Centrais Eletricas do Para S.A. (Celpa) to 'BB-' from 'CCC+' and removed it from CreditWatch with positive implications. The upgrade reflects S&P's view that Celpa is a "core" entity for its parent company, Equatorial Energia S.A. (not rated). Celpa only generates a moderate portion of the group's cash flow because it's still in a revamp phase. However, S&P believes that Celpa has the potential to be the main cash contributor for the group. S&P believes it's highly unlikely that Equatorial will sell Celpa because the parent has already injected more than BRL700 million in cash into the company while it was under judicial reorganization and Equatorial guarantees about 50% of Celpa's debt. Subsequently, S&P withdrew the rating at issuer's request. The outlook was stable at the time of withdrawal. ENERGISA S.A.: Fitch Raises IDR to 'BB'; Outlook Stable ------------------------------------------------------- Fitch Ratings has upgraded Energisa S.A.'s (Energisa) Long-term foreign and local Currency Issuer Default Ratings (IDRs) to 'BB' from 'BB-' and its Long-term national scale rating to 'A+(bra)' from 'A(bra)'. At the same time, Fitch has upgraded Energisa's subsidiaries' Long-term foreign and local Currency IDRs to 'BB+' from 'BB' and their Long-term national scale ratings to 'AA-(bra)' from 'A+(bra)'. The Rating Outlook is Stable. KEY RATING DRIVERS The upgrade reflects Energisa's ability to revert the negative impact of the acquisition of Grupo Rede on its consolidated credit profile. Fitch considers the sale of its operational and under construction generation assets to Brookfield Renewables for BRL2.8 billion as positive since it reduces pressure on the group's liquidity and leverage ratios on a more restricted credit scenario. The expected capital increase of BRL 500 million to occur in the first half of 2015 also benefits the group credit metrics. The rating action incorporates Fitch's expectation that Energisa will succeed in continuing improving the still below average operational performance of the subsidiaries acquired from Grupo Rede, located in areas of high energy consumption historical growth. Despite the relatively recent integration, positive results have already been noticed and reflected on the consolidated operational cash generation. The ratings incorporate a moderate regulatory risk for the power sector and a hydrological risk currently above average. The asset diversification of Energisa through 13 power distribution companies is positive as dilutes operational risks. The one-notch difference between Energisa's ratings and those of its subsidiaries is based on the relevance and structural subordination of the holding company's debt compared to that of the operating companies. The holding company debt represented approximately 39% of net consolidated debt as of Dec. 31, 2014. Stronger than Expected Credit Profile Fitch expects Energisa's consolidated net leverage to range between 2.5 times (x) and 3.0x in the coming years. In 2014, the consolidated leverage, measured by the Total Adjusted Debt/EBITDA ratio was 4.8x and 3.7x on a net basis. The proceeds from the assets sale (BRL1.4 billion), the debt that went out with the generation assets sold (BRL900 million) and the expected capital increase of BRL500 million are representative when compared to the consolidated total adjusted debt of BRL7.4 billion at the end of 2014. Credit metrics should also benefit from a more robust operational cash generation coming from recent acquired subsidiaries. Energisa has sold its operational and under construction generation assets to Brookfield Renewables Energy Partners for BRL 2.8 billion. On April 9, 2015, net proceeds of BRL1.4 billion have been used to partially prepay - BRL 886 million - of the holding's 6th Debenture Issuance. Fitch expects the holding company debt of BRL2.7 billion at the end of 2014 to materially reduce to BRL1.3 billion after the mentioned events. Successful Integration of Grupo Rede Operations Fitch expects Energisa to benefit from synergy gains among all its distribution companies. The group has been improving the results on the acquired companies, but their performances are still below the levels established by the regulator. Positively, the new subsidiaries are located in areas of high energy consumption historical growth, with a compounded average growth rate of 6.6% p.y in the energy distributed in their concession areas in the last five years (2009-2014), compared with 4.3% p.y. in Brazil in the same period. Improvements on quality and losses indicators were already achieved. Liquidity to Improve Energisa's liquidity position should continue to improve on a consolidated basis after the expected capital injection of BRL500 million. In addition a convertible to shares BRL350 million debenture issuance should add to debt maturity profile. The group has been working to lengthen its financial obligations and reduce its cost of funding. At the end of 2014, the short-term debt coverage was moderate, with cash of BRL1.6 billion covering short- term debt of BRL2.1 billion by 0.7x. At the same date, holding company short-term debt was BRL1.1 billion, compared with cash of BRL56 million. Negative FCF to Remain The improvement of the operations at the distributors formerly belonging to Grupo Rede, associated to the original subsidiaries' maintenance capex programs, require a significant amount of investments that will keep on pressuring the consolidated free cash flow (FCF). Part of this pressure could be offset by some additional EBITDA coming from the acquired companies. Fitch expects capex requirements of approximately BRL 4.7 billion for the next three years to have adequate sources of funding. Fitch expects Energisa's consolidated operational cash flow generation to benefit from an above average increase in energy consumption in the concession areas of the acquired distributors, and from the gradual improvement of its operational indicators. The group has consistently reduced its energy losses, both on a consolidated basis and individually. Currently, Energisa's distributors (except some of those acquired from Grupo Rede) report losses below the maximum percentages established by the regulatory agency and contemplated in the energy tariffs, which positively impact its operating cash flow. In 2014, consolidated net revenues, EBITDA and cash flow from operations (CFFO) reached BRL7.4 billion, BRL1.6 billion and BRL420 million, respectively, compared to BRL2.4 billion, BRL621 million and BRL505 million reported in 2013, with basis on the new International Financial Reporting Standards (IFRS), excluding revenue and infrastructure cost. In 2014, CFFO was not sufficient to cover capex of BRL942 million and dividends of BRL216 million, leading to a negative FCF of BRL739 million. KEY ASSUMPTIONS Fitch's main assumptions, in accordance with the base case scenario for this issuer include: -- Average annual market growth rate of 4%; -- EBITDA margin of around 20%; -- Capital increase of BRL 500 million in 2015; -- Capex of BRL4.7 billion from 2015 to 2018. RATING SENSITIVITIES Future developments that may individually or collectively lead to a negative rating action include: -- Relevant acquisitions and/or additional new investments beyond those envisioned and mostly funded by debt by debt that could increase net leverage to levels consistently above 4.0x; -- Cash-to-short term debt below 0.7x. Future developments that may individually or collectively lead to a positive rating action include: -- More conservative leverage and credit protection measures, with consolidated net leverage levels consistently below 2.5x; -- positive FCF; (Cash-to-short-term debt ratio above 1.2x.) Fitch upgraded these ratings: Energisa -- Foreign currency IDR to 'BB' from 'BB-'; -- Local Currency IDR to 'BB' from 'BB-; -- Long-term national scale rating to 'A+(bra)' from 'A(bra)'. Energisa Paraiba - Distribuidora de Energia S/A (Energisa Paraiba) -- Foreign currency IDR to 'BB+' from 'BB'; -- Local Currency IDR to 'BB+' from 'BB'; -- Long-term national scale rating to 'AA-(bra)' from 'A+(bra)'. Energisa Sergipe - Distribuidora de Energia S/A (Energisa Sergipe) -- Foreign currency IDR to 'BB+' from 'BB'; -- Local currency IDR to 'BB+' from 'BB'; -- Long-term national scale rating to 'AA-(bra)' from 'A+(bra)'. Energisa Minas Gerais - Distribuidora de Energia S/A (Energisa Minas Gerais) -- Foreign currency IDR to 'BB+' from 'BB'; -- Local currency IDR to 'BB+' from 'BB'; -- Long-term national scale rating to 'AA-(bra)' from 'A+(bra)'. JBS SA: Has Cash for Takeover but Focused on Growth, CEO Says ------------------------------------------------------------- Caroline Stauffer and Reese Ewing at Reuters reports that JBS SA will have sufficient cash flow in 2015 to bankroll potential acquisitions, but for the time being plans to focus on consolidating gains from recent takeovers, Chief Executive Wesley Batista said. The company in late March completed the $1.125 billion buyout of Australian meats company Grupo Primo Smallgoods started in 2014, which will give it a base to boost sales in the Asia/Pacific region, according to Reuters. The report notes that Mr. Batista said the company had no plans "to establish operations" in Asia at this time but would focus on organic growth in South America, North America and Australia. The report relates that Mr. Batista also ruled out issuing new shares in the U.S. and Brazilian markets for the near future. Although pessimism about the Brazilian economy's growth has intensified in the past months, Mr. Batista said it had not been reflected in the company's domestic sales, the report relates. A recovery in the company's exports of Brazilian beef, however, is not likely in 2015, the executive said, the report discloses. "The greatest pressure over margins have come from the drop in exports, especially to Russia and Venezuela, due to the drop in oil prices and the devaluation of their currencies," the report quoted Mr. Batista as saying. Mr. Batista added, though, that local beef demand and prices are expected to remain firm in the near term due to tight live cattle supplies, the report notes. JBS, founded in the interior center-west farm belt of Brazil, has become one of the largest beef exporter over the past decade. The company has also expanded into poultry and pork production with the help of acquisitions in the United States and Australia and financing from Brazil's BNDES national development bank. As reported in the Troubled Company Reporter-Latin America on April 14, 2015, Moody's Investors Service upgraded JBS S.A.'s Corporate Family Rating and the ratings of the notes issued by Bertin S.A. and JBS Finance II and guaranteed by JBS to Ba2. At the same time, Moody's upgraded JBS USA, LLC's senior unsecured ratings to Ba2 and senior secured ratings to Ba1. The outlook for the ratings is stable. MARANHAO: Fitch Affirms BB+ IDR; Revises Outlook to Negative ------------------------------------------------------------ Fitch Ratings has revised the Rating Outlook to Negative from Stable for these issuers: -- State of Sao Paulo (Sao Paulo) -- State of Rio de Janeiro (ERio) -- State of Santa Catarina (Santa Catarina) -- State of Maranhao (Maranhao) -- City of Rio de Janeiro (CRio) KEY RATING DRIVERS - IDRS The rating actions follow the recent revision of the Outlook of Brazil's sovereign ratings to Negative from Stable. Considering the features of the Brazilian institutional framework, Fitch does not believe any subnational entity to be rated higher than the sovereign. This is the case for Sao Paulo and CRio, whose ratings are currently equalized with the sovereign at 'BBB'. In Fitch's opinion, ERio's ratings are under pressure given its above average reliance on oil related activities thus leveraging on the implicit debt support Fitch believes the state should receive from the Brazilian Federal Government in case of need. For Santa Catarina, the Negative Outlook reflects the weakening of the implicit debt support the state should receive from the Federal Government in case of need. The Federal Government remains the state's main creditor, corresponding to 68.5% of the state's total debt in 2014. For the case of Maranhao, there is above average reliance on federal transfers, corresponding to more than 50% of the state's operating revenues in 2014. RATING SENSITIVITIES - IDRS and NATIONAL RATINGS The Outlook revision for these subnationals reflects the potential for them to be downgraded should Brazil's sovereign ratings be downgraded. Sao Paulo, ERio, Santa Catarina, Maranhao and CRio's IDRs should move in tandem with Brazil's sovereign ratings. They would be affected by further changes in the sovereign's ratings or Outlooks and/or in the government's willingness to provide support. Nevertheless, Fitch does not expect a change in the government's willingness to provide support for subnational debt in case of need. Fitch has taken these rating actions: State of Sao Paulo -- Long-term Foreign and Local Currency IDRs affirmed at 'BBB', Outlook revised to Negative from Stable; -- Short-term Foreign and Local Currency IDRs affirmed at 'F2'; -- National Long-term Rating unchanged at 'AA+(bra)', Outlook Stable; -- National Short-term Rating unchanged at 'F1+(bra)'. State of Rio de Janeiro -- Long-term Foreign and Local Currency IDRs affirmed at 'BBB-', Outlook revised to Negative from Stable; -- Short-term Foreign and Local Currency IDRs affirmed at 'F3'; -- National Long-term Rating unchanged at 'AA-(bra)', Outlook Stable; -- National Short-term Rating unchanged at 'F1+(bra)'. State of Santa Catarina -- Long-term Foreign and Local Currency IDRs affirmed at 'BBB-', Outlook revised to Negative from Stable; -- Short-term Foreign and Local Currency IDRs affirmed at 'F3'; -- National Long-term Rating unchanged at 'AA-(bra)', Outlook Stable; -- National Short-term Rating unchanged at 'F1+(bra)'. State of Maranhao -- Long-term Foreign and Local Currency IDRs affirmed at 'BB+', Outlook revised to Negative from Stable; -- Short-term Foreign and Local Currency IDRs affirmed at 'B'; -- National Long-term Rating unchanged at 'AA-(bra)', Outlook Stable; -- National Short-term Rating unchanged at 'F1+(bra)'. City of Rio de Janeiro -- Long-term Foreign and Local Currency IDRs affirmed at 'BBB', Outlook revised to Negative from Stable; -- Short-term Foreign and Local Currency IDRs affirmed at 'F2'; -- National Long-term Rating unchanged at 'AA+(bra)', Outlook Stable; -- National Short-term Rating unchanged at 'F1+(bra)'. PETROLEO BRASILEIRO: Signs MOU on Gas Exploration in Bolivia ------------------------------------------------------------ EFE News reports that Petroleo Brasileiro S.A. signed a memorandum of understanding with Bolivian state energy firm YPFB, a step toward future natural gas exploration in three areas of the southern region of Tarija. Petrobras's representative in Bolivia, Erick Portela, and YPFB chief Guillermo Acha signed the contract in a ceremony in the city of Tarija, according to EFE News. The report notes that the MOU is a prelude to an eventual contract for the San Telmo, Sunchal, and Astillero blocks, whose natural gas potential is estimated at 4.9 trillion cubic feet, Mr. Acha said. The contract paves the way for investment of up to $2.06 billion in the areas of exploration, transportation and plant construction at the three blocks, Mr. Acha added, the report notes. "These new areas will allow us to increase our reserves and consolidate Tarija province as Bolivia's energy hub," the YPFB chief said, referring to the area of the country that holds as much as 85 percent of the nation's natural gas reserves, the report discloses. In addition to an estimated 4.9 trillion cubic feet of gas, exploratory drilling is expected to confirm the presence of more than 100 million barrels of liquids in those three blocks, YPFB said in a statement obtained by the news agency. The report relates that YPFB and Bolivia's Hydrocarbons Ministry also signed a separate MOU with Russian state-controlled energy giant Gazprom aimed at "updating the general framework for developing Bolivia's gas sector through 2030." The latest study of Bolivia's proven natural gas reserves showed they amounted to 10.45 trillion cubic feet, notes the report. Bolivia has drawn up plans for intense exploration aimed at boosting natural gas reserves, which YPFB said will last until 2023, the report discloses. Some analysts critical of President Evo Morales' leftist government, however, say the country's gas reserves will run out in 2017, the report relays. The Andean nation's natural gas exports to Brazil and Argentina are its main source of hard currency, the report adds. About Petroleo Brasileiro Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. -- Petrobras (Brazilian Petroleum Corporation) -- explores for oil and gas and it produces, refines, purchases, and transports oil and gas products. The Company has proved reserves of about 14.1 billion barrels of oil equivalent and operates 16 refineries, an extensive pipeline network, and more than 8,000 gas stations. * * * As reported in the Troubled Company Reporter-Latin America on March 12, 2015, Moody's Investors Service said the corruption investigation into Petroleo Brasileiro S.A. (Petrobras) will negatively affect parts of the public and private sectors, but government support for the company is likely to help contain the credit-negative impact. On March 6, 2015, the TCLRA reported that the deepening investigation into the alleged kickback scheme at Petrobras has triggered concerns for the Brazilian banks with exposures not only to the state-controlled oil company, but also to its large base of suppliers, as well as the broader oil and gas (O&G) and construction industries, says Moody's Investors Service. Moody's Investors Service downgraded all ratings for Petrobras, including a downgrade of the company's senior unsecured debt to Ba2 from Baa3, and assigned a Ba2 Corporate Family Rating to the company, the TCRLA reported on Feb. 27, 2015. Its failure to estimate its losses from the alleged corruption scheme and produce audited third-quarter results prompted Moody's to cut its rating to junk, the report said. Rival agency Standard & Poor's delivered a further blow on March 23 when it revised its outlook on the company from stable to negative, the TCRLA reported on March 26, 2015. On Feb. 10, 2015, TCRLA said Fitch Ratings has downgraded the foreign and local currency Issuer Default Ratings (IDRs) and outstanding debt ratings of Petrobras to 'BBB-' from 'BBB'. Concurrently, Fitch has placed all of Petrobras' international and national scale ratings on Rating Watch Negative. PETROLEO BRASILEIRO: Audited 2014 Results to Be Reviewed on Apr 22 ------------------------------------------------------------------ EFE News reports that Petroleo Brasileiro S.A. plans to meet on April 22 to analyze audited third-quarter and fourth-quarter 2014 results, the company said in a statement. The company plans to release the results, which were reviewed by independent auditors, once the board has approved them, according to EFE News. Petrobras has postponed releasing those results due to a massive corruption scandal centered on the state-controlled company, the report relates. Petrobras released its third-quarter 2014 financial results in late January after twice postponing plans to publish them, but the accounts were not certified by PriceWaterhouseCoopers, the company's auditor since 2012, says EFE News. The third-quarter results released on Jan. 28 excluded graft-related writedowns from Petrobras' balance sheet. In those results, Petrobras appraised dozens of projects with companies cited in the widespread corruption case and calculated an asset overvaluation of BRL88.6 billion (some $28.4 billion) in connection with 31 contracts signed between 2004 and 2012, the report relates. That figure, however, includes asset appreciation related to exchange-rate fluctuations and other factors not related to the bribery scheme, report EFE. Petrobras, which accounts for 12 percent of Brazilian GDP, is under investigation following disclosure of widespread corruption said to have cost the company billions of dollars since the mid- 1990s. Police have already detained five former high-ranking Petrobras executives as well as around a dozen executives of major construction and engineering firms that had contracts with the oil giant. Outside companies involved in the scheme would inflate their invoices, splitting the extra money with corrupt Petrobras officials while setting aside some of the loot to pay off politicians who provided cover for the graft, investigators say, the report relays. Some of the detainees have entered into plea deals to obtain a reduction in future prison sentences and have implicated around 50 politicians who allegedly facilitated the illegal activity, the report notes. Last month, Brazil's Supreme Court gave prosecutors the green light to investigate dozens of politicians over the graft case, including the heads of Brazil's Senate and lower house, Renan Calheiros and Eduardo Cunha, respectively, the report relays. The treasurer of the ruling Workers Party, or PT, Joao Vaccari, also has been arrested and charged with corruption, criminal conspiracy and money laundering, notes the report. About Petroleo Brasileiro Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. -- Petrobras (Brazilian Petroleum Corporation) -- explores for oil and gas and it produces, refines, purchases, and transports oil and gas products. The Company has proved reserves of about 14.1 billion barrels of oil equivalent and operates 16 refineries, an extensive pipeline network, and more than 8,000 gas stations. * * * As reported in the Troubled Company Reporter-Latin America on March 12, 2015, Moody's Investors Service said the corruption investigation into Petroleo Brasileiro S.A. (Petrobras) will negatively affect parts of the public and private sectors, but government support for the company is likely to help contain the credit-negative impact. On March 6, 2015, the TCLRA reported that the deepening investigation into the alleged kickback scheme at Petrobras has triggered concerns for the Brazilian banks with exposures not only to the state-controlled oil company, but also to its large base of suppliers, as well as the broader oil and gas (O&G) and construction industries, says Moody's Investors Service. Moody's Investors Service downgraded all ratings for Petrobras, including a downgrade of the company's senior unsecured debt to Ba2 from Baa3, and assigned a Ba2 Corporate Family Rating to the company, the TCRLA reported on Feb. 27, 2015. Its failure to estimate its losses from the alleged corruption scheme and produce audited third-quarter results prompted Moody's to cut its rating to junk, the report said. Rival agency Standard & Poor's delivered a further blow on March 23 when it revised its outlook on the company from stable to negative, the TCRLA reported on March 26, 2015. On Feb. 10, 2015, TCRLA said Fitch Ratings has downgraded the foreign and local currency Issuer Default Ratings (IDRs) and outstanding debt ratings of Petrobras to 'BBB-' from 'BBB'. Concurrently, Fitch has placed all of Petrobras' international and national scale ratings on Rating Watch Negative. SBM BALEIA: Moody's Withdraws 'Ba3' Rating on Sr. Secured Notes --------------------------------------------------------------- Moody's Investors Service has withdrawn the rating of the senior secured global notes of SBM Baleia Azul, SII/S.a.r.l ("SBM Baleia Azul") due in September 2027. The rating has been withdrawn because Moody's will no longer receive adequate/sufficient information to maintain the rating. Issuer: SBM Baleia Azul, SII/S.a.r.l Outlook Actions: -- Outlook, changed to rating withdrawn from rating under review for downgrade Withdrawal: -- Senior Secured Global Notes, withdrawn, previously Ba3 Moody's has withdrawn the rating because it believes it has insufficient or otherwise inadequate information to support the U.S.J.-ACUCAR: Fitch Lowers IDR to 'B' & Puts on Watch Neg. ----------------------------------------------------------- Fitch Ratings has downgraded the foreign and local currency Issuer Default Ratings (IDRs) of U.S.J.-Acucar e Alcool S.A. (USJ) to 'B' from 'B+' and the National Scale Rating to 'BBB(bra)' from 'A- (bra)'. Fitch has also downgraded to 'B/RR4' from 'B+/RR4' the rating for the company's USD275 million senior unsecured notes due 2019. USJ's ratings are currently on Rating Watch Negative. KEY RATING DRIVERS The downgrades are based upon USJ's weakening financial profile in the volatile sugar and ethanol business, due to negative free cash flow generation (FCF) and an increase in the concentration of short-term debt. Systemic risk remains high for the Brazilian sugar and ethanol (S&E) sector following the default by Aralco S.A. Industria e Comercio and Virgolino de Oliveira S.A. Acucar e Alcool's (GVO) struggle to restructure its debt, which has made it increasingly difficult for companies to obtain long-term financing. The Watch Negative reflects Fitch's continued concerns about USJ's high refinancing risks. While it has extended some debt maturities during 2015, USJ's short-term debt has increased as availability of medium and long-term unsecured loans has become scarce for most Brazilian S&E companies. Prices for sugar and ethanol are expected to remain under pressure despite improvements on the ethanol industry dynamics in 2015 compared to 2014. The generation of more robust operational cash flow in the new season ending March 31, 2016 will depend largely on the maintenance of favorable weather conditions as seen in early 2015. Positively, USJ has unencumbered land properties worth BRL1.1 billion and operating assets such as sugar cane and inventory that could be used for collateral to improve its financial position. Higher Refinancing Risk USJ's liquidity is under pressure as short-term debt is increasing at a higher pace than the cash position. As of Dec. 31, 2014, USJ's cash position of BRL143 million compared unfavorably with short-term debt of BRL228 million to yield a 0.63x coverage ratio. This compares unfavorably with March 31 2014 when the company had cash and short-term debt positions of BRL232 million and BRL128 million, respectively. The company has used part of its cash to make a BRL60 million capital injection into SJC Bioenergia S.A (SJC), the Joint-Venture with Cargill, and acquire some land and cane fields from a financially-distressed sugar cane supplier in 2014. USJ's higher refinancing risks are also underpinned by negative free cash flows (FCF). The company's cash flows have been pressured by investments in a new boiler that are expected to enable the company to sell energy during the 2015/16 season. Negative Free Cash Flow In the last 12 months ended Dec. 31 2014, the company posted cash flow from operations (CFFO) of BRL156 million, which was not enough to cover capital expenditures of BRL254 million, leaving FCF at a negative BRL107 million. FCF was further pressured by BRL10 million dividends. Capex should be reduced to BRL105 for the fiscal year 2016. Nevertheless, Fitch expects USJ's FCF to remain negative in the next two crop years. The expected recovery of international sugar prices is taking longer than forecasted to occur and the positive short-term impact on the domestic ethanol industry caused by a series of government measures both at the federal and state levels is expected to be limited. High Leverage and FX Risk: USJ's leverage remains high. The company's total adjusted debt as per Fitch's internal criteria amounted to BRL1.4 billion as of Dec. 31 2014, which is an increase from BRL1.2 billion in March 31 2014. In the last 12 months ended Dec. 31, 2014, the company's consolidated net adjusted debt/EBITDAR ratio was 5.0x. A material improvement in leverage is not forecast for the fiscal year ended March 2016. The company is exposed to foreign exchange risk as USD-denominated debt accounts for 70% of its on balance debt, though sugar revenues are linked to the USD. FX risk is spread over the long term as most of USJ's USD-denominated debt consists of the USD275 million senior unsecured notes due 2019. Part of USJ's hard currency debt was protected by hedging instruments as of Dec 31 2014. The company's total adjusted debt consists of the following obligations: USD275 million unsecured senior notes due 2019 (49%); working capital lines (14%); land lease agreements as per Fitch's internal criteria and guarantees issued in favor of BNDES under loan agreements with SJC (19%); exports pre-payments and other trade finance facilities (4%); subsidized loans FINAME and FINEM (4.4%) and others with the balance. Investments at SJC USJ made a BRL60 million capital injection into SJC in July 2014. The JV used the proceeds (BRL120 million equally shared between USJ and Cargill) to fund its working capital requirements. Fitch is not expecting the JV to pay dividends in the current season. During March 2015, Cargill and USJ announced plans to make corn out of ethanol in SJC's Sao Francisco mill located in the State of Goias. The plan is to start producing ethanol from corn in late 2015 with production concentrated in the period going from December to March, inter-harvest period for sugar cane, and during rainy days of the sugar cane season. The investment also contemplates energy cogeneration and production of DDGS (Dried Distillers Grains with Solubles). Differentiated Business Position USJ's business profile is built on a product mix that leads to product differentiation compared to peers. USJ's sugar output is focused on crystal sugar, whose sales are carried out under medium and long term contracts with financially strong food and beverage companies. This helps USJ to mitigate demand risks. The Sao Joao mill is strategically located near the food and beverage companies, the Santos port terminal (247 km) and Paulinia (70 km), a distribution hub for most of the fuel produced in the State of Sao Paulo. Ethanol sales are concentrated on anhydrous and industrial ethanol, the price of which carries a premium over that of hydrous ethanol. KEY ASSUMPTIONS -- Crushed volumes of 3.2 million tons in 2015/2016 and gradual increases of 5% thereafter; -- Mix relatively unchanged at 66% sugar and 34% ethanol for the projected period; -- Average sugar prices at USD14 cents/pound in 2015/2016, USD16 cents/pound in 2016/2017 and USD17 cents/pound onwards; -- Domestic ethanol prices keeping the historical correlation with international sugar prices; -- No dividends coming from SJC in 2015/2016; -- No land sales have been forecasted. RATING SENSITIVITIES USJ's inability to substantially improve its cash to short-term coverage ratio in the coming months could lead to a negative rating action. An upgrade is unlikely in the short term. In the medium to long term, a sustainable increase in international sugar and domestic ethanol prices leading to improvements in USJ's liquidity and allowing deleveraging, could trigger a positive rating action. ========================== 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., in the main conference room of the Marriot Hotel, 389 West Bay Road, in George Town, Grand Cayman. The company's liquidators are: Keiran Hutchison Claire Loebell Ernst & Young Ltd. 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: +1 (345) 949 8444 e-mail: keiran.hutchison@ky.ey.com CALEDONIAN BANK: Seeks Potential Buyers for Assets -------------------------------------------------- Caledonian Bank Limited and Caledonian Bank Securities' official liquidators (Keiran Hutchison and Claire Loebell of Ernst & Young Ltd.) are currently undertaking the sale of certain assets of the companies and are seeking potential buyers to take part in the process. Potential buyers and their proposed management team must be able to satisfy the relevant regulatory requirements as prescribed by the Cayman Islands Monetary Authority. The Liquidators can be reached at: Keiran Hutchison Claire Loebell Ernst & Young Ltd. 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: +1 (345) 949 8444 e-mail: keiran.hutchison@ky.ey.com FEBBRINA INVESTMENT: Creditors' Proofs of Debt Due May 13 --------------------------------------------------------- The creditors of Febbrina Investment Ltd. are required to file their proofs of debt by May 13, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 25, 2015. The company's liquidator is: Morval Bank & Trust Cayman Ltd. Telephone: +1 (345) 949-9808 P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands GLOBAL COMMERCIAL: Creditors' Proofs of Debt Due April 23 --------------------------------------------------------- The creditors of Global Commercial Real Estate (Cayman) Inc are required to file their proofs of debt by April 23, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 12, 2015. The company's liquidator is: Krys Global VL Services Limited KRyS Global, Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 c/o Christopher Smith Telephone: (345) 947 4700 IMMOTION INTERNATIONAL: Creditors' Proofs of Debt Due May 4 ----------------------------------------------------------- The creditors of Immotion International Inc. are required to file their proofs of debt by May 4, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 11, 2015. The company's liquidator is: Fidele Joye Rue du General-Dufour 15 1204 Geneva Switzerland Telephone: 022 321 28 22 Facsimile: 022 321 20 95 MARIO KASSAR: Creditors' Proofs of Debt Due May 4 ------------------------------------------------- The creditors of Mario Kassar Infiniti Media Fund Ltd are required to file their proofs of debt by May 4, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 10, 2015. The company's liquidator is: Richard Fear c/o Ryan Charles Telephone: (345) 814 7364 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands NEWCAP INSURANCE: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary meeting held on Dec. 3, 2014, the members of Newcap Insurance Company Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Marsh Management Services Cayman Ltd. Governors Square, Building 4 2nd Floor, 23 Lime Tree Bay Avenue P.O. Box 1051, Grand Cayman Cayman Islands REVIVAL FINANCE: Creditors' Proofs of Debt Due April 23 ------------------------------------------------------- The creditors of Revival Finance Limited are required to file their proofs of debt by April 23, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 16, 2015. The company's liquidator is: Krys Global VL Services Limited KRyS Global, Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 c/o Christopher Smith Telephone: (345) 947 4700 SANTO DOMINGO: Creditors' Proofs of Debt Due May 13 --------------------------------------------------- The creditors of Santo Domingo Device Company are required to file their proofs of debt by May 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 10, 2015. The company's liquidator is: SCL Limited Smeets Law (Cayman) Reference: JAPF Telephone: (+1) 345 815 2800 Facsimile: (+1) 345 947 4728 Suite 2206, Cassia Court, 72 Market Street, Camana Bay P.O. Box 32302 Grand Cayman, KY1-1209 Cayman Islands SSARIS MULTI-MANAGER: Creditors' Proofs of Debt Due May 4 --------------------------------------------------------- The creditors of Ssaris Multi-Manager Fund Ltd. are required to file their proofs of debt by May 4, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 24, 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 STAMFORD LIFE: Creditors' Proofs of Debt Due May 13 --------------------------------------------------- The creditors of Stamford Life Settlement Fund III Inc. are required to file their proofs of debt by May 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 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 TOWER FINANCE: Commences Liquidation Proceedings ------------------------------------------------ On March 24, 2015, the shareholders of Tower Finance Company 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: Stephen Nelson Telephone: (345) 949 4544 Facsimile: (345) 949.8460 Collas Crill & Card P.O. Box 709 122 Mary Street Grand Cayman KY1-1107 Cayman Islands WHISTLER INTERNATIONAL: Creditors' Proofs of Debt Due May 4 ----------------------------------------------------------- The creditors of Whistler International Liquidating SPV, Ltd. are required to file their proofs of debt by May 4, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 25, 2015. The company's liquidator is: Gene Dacosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ========= C H I L E ========= * CHILE: To Ease Electricity Shortages by Tapping Renewables ------------------------------------------------------------ Christopher Martin at Bloomberg News reports that Chile will ease power shortages in the center of the country by building a 3,000- kilometer (1,865-mile) transmission line to link the grid with renewable plants in the north by 2017. Energy Minister Maximo Pacheco said he will sign a decree approving interconnections that include the $1 billion transmission line, according to Bloomberg News. That will help unleash production from 44 power plants that were under construction at the end of March including solar and wind farms, almost double the number being built a year ago, Bloomberg News notes. A lack of development caused power prices to rise 30 percent over the past five years, the report adds. "We will always want more but this is a good start," Minister Pacheco said in an interview at the Bloomberg New Energy Finance conference in New York. "By late 2025, we will have 20 percent renewables, of that I am very confident," Minister Pacheco added. That would make Chile the largest producer of "non-conventional' renewable energy in Latin America, a definition that excludes large hydroelectric dams, Bloomberg News relates. The country will connect 741 megawatts of solar power to the grid this year and continue to boost installations in 2016 before stabilizing in 2017, said Lilian Alves, an analyst based in Sao Paulo for Bloomberg New Energy Finance. ====================== P U E R T O R I C O ====================== PUERTO RICO ELECTRIC: Bondholders Offer Forbearance Extension ------------------------------------------------------------- In continuing their efforts to work collaboratively with Puerto Rico Electric Power Authority (PREPA), PREPA bondholders have offered to extend their forbearance agreement with PREPA for another 30 days. The offer includes a mutual commitment to continue working together with PREPA on the refinement of a capital investment and rate plan for PREPA, a timeline for PREPA's professionals agreeing to a work production plan, and third party review of the work plan and information exchanges between the parties with an opportunity for public review. On April 1, the PREPA bondholder group released a detailed revitalization plan for PREPA that provides for nearly $2 billion in new capital to be invested in PREPA for new infrastructure investment, that allows PREPA to generate electricity at lower and more stable rates, create hundreds of new jobs, and stabilize electricity rates below the 2014 average, while continuing to service contractual debt obligations. * * * The Troubled Company Reporter on Feb. 4, 2015, reported that Standard & Poor's Ratings Services maintained its 'CCC' rating on the Puerto Rico Electric Power Authority's (PREPA) power revenue bonds on CreditWatch with negative implications. S&P originally placed the rating on CreditWatch on June 18, 2014. On Dec. 15, 2014, the TCRLA reported that Fitch is maintaining the $8.6 billion of Puerto Rico Electric Power Authority (PREPA) power revenue bonds on Negative Rating Watch. The bonds are currently rated 'CC'. As reported in the Troubled Company Reporter on Sept. 19, 2014, Moody's Investors Service has downgraded the rating for Puerto Rico Electric Power Authority's (PREPA) $8.8 billion of Power Revenue Bonds to Caa3 from Caa2. PREPA's rating outlook is negative. *********** 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 * * *