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/raid1/www/Hosts/bankrupt/TCRLA_Public/150515.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, May 15, 2015, Vol. 16, No. 095 Headlines A N T I G U A & B A R B U D A ANTIGUA & BARBUDA: Worker Action Intensifies, Banks Hobble B R A Z I L GRUPO SCHAHIN: Itau-led Group Sues Firm for $371M in Overdue Loans LIBRA TERMINAL: Fitch Affirms 'BB+' Issuer Default Ratings TONON BIOENERGIA: Fitch Cuts Issuer Default Ratings to 'CCC' C A Y M A N I S L A N D S CANYON CAPITAL 2004-1: Members' Final Meeting Set for June 3 CEP MENA 2: Shareholders' Final Meeting Set for May 28 CITATION HIGH: Members' Final Meeting Set for June 10 EMERALD LEASING: Members' Final Meeting Set for June 9 FORT POINT: Members' Final Meeting Set for June 10 IRONSIDE HOLDINGS: Members' Final Meeting Set for June 9 MACQUARIE FUNDS: Members' Final Meeting Set for June 9 OBSIDIAN TAIL: Members' Final Meeting Set for May 26 OPUS COMMODITIES: Members' Final Meeting Set for May 28 PELOTON ABS: Creditors' Final Meeting Set for May 29 C H I L E MASISA S.A.: S&P Alters Outlook to Negative & Affirms BB- CCR D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Talks for Wage-Raise Pact Fail a Sixth Time M E X I C O CEMEX SAB: To Invest $300MM in Cement Plant in Philippines OHL MEXICO: Senators Want Probe Into Possible Gov't Corruption T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Merger With LIAT Not Likely Any Time Soon - - - - - =============================== A N T I G U A & B A R B U D A =============================== ANTIGUA & BARBUDA: Worker Action Intensifies, Banks Hobble ---------------------------------------------------------- The Daily Observer reports that the Bankers' Association said despite May 13's action by employees, banks were still open for business. In a statement, the bank said that while this action has impacted the ability of its members to provide full service to their customers, all commercial banks in Antigua & Barbuda were open for business May 13, offering limited services to their customers, according to The Daily Observer. The report notes that the association is advising customers to check with their respective financial institutions to determine what services are available to customers. It told customers that given the severely constrained resources in some areas, customers should expect delays in accessing banking services, and should, wherever possible, make use of alternative channels such as ABMs and Internet Banking where available, the report relays. Bank employees were protesting government's decision to approve the banking act 2015 in spite of concerns over their severance, the report notes. The workers met May 12 and decided to stay home May 13 in protest. Prime Minister Gaston Borwne, meanwhile, has said there's really no issue, adding that before the fallout, he and Attorney General Steadroy "Cutie" Benjamin assured the workers that all their concerns would be addressed at the Parliamentary session taking place mid-June, the report notes. * * * As reported in the Troubled Company Reporter-Latin America on September 23, 2014, The Daily Observer said that Antigua & Barbuda could soon find itself in the company of Japan, Zimbabwe, and Greece, the countries with the highest national debts. In the January 2014 budget presentation, the former administration indicated that the nation's debt was 87 per cent of GDP, according to The Daily Observer. However, Prime Minister Gaston Browne has disputed the figure, deeming it to be as high as 130 per cent, the report noted. Minister Browne said while his government's increased borrowing is pushing up the nation's debt-to-GDP ratio, it is necessary to solve the country's problems, the report related. =========== B R A Z I L =========== GRUPO SCHAHIN: Itau-led Group Sues Firm for $371M in Overdue Loans ------------------------------------------------------------------ Anthony Boadle at Reuters reports that thirteen Brazilian and international banks filed a lawsuit in New York on May 12 against two units of ailing engineering and oil conglomerate Grupo Schahin to recover $371 million in overdue principal and interest on loans. The lawsuit comes weeks after Grupo Schahin sought for protection from creditors in Brazil and the United States, and fired 2,500 workers as a corruption scandal at key client Petroleo Brasileiro SA hampered its efforts to refinance up to BRL6.5 billion ($2.1 billion) in debt, according to Reuters. The report notes that the banks, led by the Cayman Island-based branch of Itau Unibanco Holding SA, are seeking to recover guarantees pledged as collateral on loans made in 2009 to rig leasing company Deep Black Drilling LLP and guaranteed by Schahin Engenharia SA. The lawsuit also involves Schahin Holding SA, court documents obtained by Reuters showed, the report says. The report discloses that other banks include: -- Cayman Island units of Banco Bradesco SA, -- HSBC Holdings Plc's Brazilian unit, -- Banco Santander Brasil SA; and -- Colombia's Bancolombia SA. LIBRA TERMINAL: Fitch Affirms 'BB+' Issuer Default Ratings ---------------------------------------------------------- Fitch Ratings has affirmed the ratings for Libra Terminal Rio S.A. (Libra Rio) as follows: -- Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BB+'; -- National Scale Rating at 'AA(bra)'; -- Senior unsecured debentures issuance of BRL270 million due 2019 at 'AA(bra)'. The Rating Outlook has been revised to Negative from Stable. Libra Rio's ratings incorporate the analysis of the Libra group on a consolidated basis. In Fitch's view, there are strong operational and financial linkages between the issuer and the whole group. Libra Rio is the key EBITDA generator of the Libra Group and used to be the main dividend distributor for its parent, Libra Holding S.A. (Libra Holding). Additionally, Libra Holding is strongly committed to the other companies within the group, providing guarantees to a great part of its subsidiaries' debt. This could pressure Libra Rio's cash flow through aggressive dividend payments. The Outlook was revised to Negative from Stable due to the group's business challenges, with a potential and significant mandatory capex plan to be implemented during the next years and a likely material regulatory concession obligation to be incorporated in its balance sheet. Libra's consolidated operational cash flow should also be moderately pressured in 2015 due to the weak economic environment in Brazil, and a higher business competition on its port terminals located in Santos Port. These events may result in increasing consolidated net leverage to the 4.0x - 4.5x range; high for the current rating category. This scenario differs from Fitch's previous base case that Libra Holding's consolidated net leverage would be limited at 3.5x during the capex period. Libra Rio's ratings gains support from the group's solid business profile, based on port terminal operations in Rio de Janeiro and in Santos. This business is complemented by logistics, airport and navigation activities in the country, which enjoy positive long- term fundaments based on moderately high profitability and predictable demand. The group has presented positive track record of robust EBITDA margins over the last five years, enhanced by the strong profitability of Libra Rio's business. The analysis also reflected the consolidated sound capital structure, underpinned adequate liquidity and moderate leverage. KEY RATING DRIVERS Low Business Risk Libra Rio operates in a low-risk industry in Brazil. Although the industry's operational variables, such as volumes and tariffs, has deteriorated and is not expected to resume during 2015, the port sector benefits from solid long-term business fundamentals. The lack of logistics infrastructure in Brazil, mainly port terminals, combined with an increase in international trading over the last decade, supports the operational trends of the country's current ports. On the other hand the negative outlook for the Brazilian economic scenario may threat the industry in the short term, since sluggish industrial activity put pressures in port volumes and prices, within the scenario of high increasing competition, mainly in Santos Port. Adequate Business Profile Libra Rio is a mature operation in Rio de Janeiro Port. It holds a solid concession contract that started in 1998, was renewed in 2011, and expires in 2048. It provides clear visibility of the company's future cash flow. This terminal is the third largest operator in the Rio de Janeiro Port, with 25% of market share. The Libra group's consolidated operations are more concentrated in the port sector when compared to other peers in the infrastructure segment rated by Fitch. In 2014, about 68% and 81% of Libra group's consolidated net revenues and EBITDA, respectively, was generated by the port activity, and the second-largest business (logistics) is also closely related to the port business. Libra Rio represented 31% and 53% of the consolidated net revenues and EBITDA. Libra group's port business has an important track record of successfully operating in Brazil for almost 20 years. While Libra Rio has not faced aggressive competition over the last year, its sister company, Libra Santos, has faced some operating challenges due to the entrance of new important players in the market during 2013, which has enhanced competition. Challenges of Operational Cash Flow Generation Libra Holding has exhibited solid consolidated operational cash flow up to 2013, based on a relatively stable volume of cargo handled and stored combined with increasing port tariffs. During 2014, the sluggish economic environment combined with increasing competition in Santos Port threated Libra group's operation. That year, the combined volumes handled and stored in both port terminals declined to 921 million TEUs, from 1,079 million TEUs in 2013. Average tariffs remained in line with those of 2013, supported by Libra Rio's average tariff increase of 5%, while Libra Santos' tariffs declined by 8%. As a result, the company generated consolidated EBITDAR of BRL410 million, compared with BRL450 million in 2013. Fitch foresees a more challenging scenario to the container port activity in Brazil during 2015, following industrial slowdown. It is likely to result in severe declining on prices and volumes of the port activity, with a potential slight resume in 2016. These factors are expected to pull 2015' Revenues, EBITDA and margins to the lowest levels since 2011. The potential effect of the loss of T-37 concession contract, in Santos Port, that matures in September 2015, on Libra Holding's consolidated cash generation is limited, as this terminal is estimated by Fitch to generate less than5% of the Libra Santos's revenues and immaterial EBITDAR. Consolidated EBITDAR margins have been relatively high, above 31.7% over the last three years and are expected to slightly decline to around 30% as a result of the loss of scale. Capex Plan Expected to Pressure Cash Flow Libra group's free cash flow may continue to be pressured by a significant capex program, in case of the renewal of T-37 and T-35 concessions. The group plans to invest about BRL840 million until 2018, being BRL580 million in the terminals in Santos Port, mainly related to increase capacity. Funding for this capex should come from a combination of long-term debt, operating cash flow generation, and reimbursements from the grant power. This scenario may not happen if the port authority does not approve the renewal of the T-37 concession and does not anticipate the renewal of the T-35 concession that matures in June 2018. Moderate Leverage; Increase Expected Fitch expects consolidated adjusted net leverage to remain moderate at 3.4x by 2015, considering a maintenance capex during this year. Net leverage may increase to above 4.0x over the next three years, reflecting the Libra Santos' capex financing and likely additional debt with the grant power of BRL340 million. As of December 2014, Libra Holding's total adjusted debt was BRL1.8 billion, including around BRL325 million of port authority obligations, according to Fitch's calculation. This indicates an adjusted net debt-to-EBITDAR ratio of 3.3x, compared with 2.6 x in 2013 and 2.0x in 2012. The leverage increase in 2014 mainly reflects the huge capex already incurred in Libra Rio during the last couple of years. Healthy Liquidity Libra's financial profile benefits from a high liquidity position and lengthened debt maturity profile. As of December 2014, the cash of BRL474 million covered the short-term debt of BRL359 million by 1.3x. This coverage ratio is expected to be sustainable at this level and consistent to the current ratings. The funding of the future capex is expected to come from long-term financings provided by BNDES. KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: -- Renewal of T-37 and T-35 concession contract; -- Decline in volumes of Libra Santos od 10% in 2015; -- Increase of volumes of Libra Rio of 10% in 2015; -- EBITDA margin contraction to 30% in 2015; -- Capex of BRL60 million in a consolidated basis in 2015; BRL780 million from 2016 to 2018; RATING SENSITIVITIES Future developments that may, individually or collectively, lead to a negative rating action include: -- Consolidated net adjusted debt-to-EBITDAR ratio consistently above 4.0x; -- Cash+CFFO/short-term debt below 2.0x; and -- EBITDAR margins above 28.0% on a consistent basis. An upgrade is unlikely in the medium term due to the challenges of the company to keep leverage bellow 3.0x even with a scenario of maintenance capex. The Outlook may be revised to Stable from Negative if consolidated net leverage is below 3.0x on a sustainable basis, along with the Libra group keeping its business profile. TONON BIOENERGIA: Fitch Cuts Issuer Default Ratings to 'CCC' ------------------------------------------------------------ Fitch Ratings has downgraded Tonon Bioenergia S.A's (Tonon) foreign and local currency Issuer Default Ratings (IDRs) to 'CCC' from 'B-'. Fitch has also downgraded to 'CCC/RR4' from 'B-/RR4' the ratings on the company's USD300 million senior unsecured notes due 2020 and the USD230 million senior secured notes due 2024 issued by Tonon's fully-owned subsidiary Tonon Luxembourg S.A. The Rating Watch Negative has been removed. KEY RATING DRIVERS The downgrades reflect Fitch's concerns about Tonon's short-term liquidity position and escalating refinancing risks due to its inability to generate positive free cash flows (FCF). The company has not reported any improvement of its capital structure in the past month and faces a coupon payment of USD12 million on May 14 for its USD230 million senior secured notes due 2024. Systemic risk remains high for Brazil's sugar and ethanol (S&E) sector due to numerous defaults within the sector. Tonon has been finding it difficult to roll over its maturing obligations with new long-term loans as bank lending activity in the sector has been focused on short-term borrowings. The company does not own land properties against which to borrow new medium or long-term loans, which reduces its refinancing prospects and makes the company dependent on the availability of short-term credit lines. As of Dec. 31 2014, Tonon's cash position of BRL159 million unfavorably compared with short-term debt of BRL257 million to yield a 0.62x coverage ratio. Fitch expects Tonon's net adjusted debt to EBITDAR to reach over 6.0x in March 2015 and stay above 5.0x in March 2016. The company's total adjusted debt as per Fitch's internal criteria amounted to BRL2.3 billion as of Dec. 31, 2014, unfavorably comparing to BRL1.8 billion in March 31, 2014. In the last 12 months ended Dec. 31, 2014, the company's consolidated net adjusted debt/EBITDAR ratio was 4.9x compared with 4.0x in March 2014 and 3.0x in March 2013. Tonon's FCF should remain negative in fiscal 2016, even with an estimated reduction on capital expenditures to BRL260 million after the end of the capacity expansion. A rebound of international sugar prices is taking much longer to materialize than previously projected and weak currencies further exacerbate low prices. A series of government measures both at the federal and state levels have improved the prospects for the ethanol industry, but the positive short-term impact is expected to be limited. The increase in crushed volumes and generation of more robust operational cash flow in the new season ending March 31, 2016 depends largely on higher international sugar prices and the maintenance of favorable weather conditions as seen in early 2015. KEY ASSUMPTIONS -- Increased systemic risk and scarce availability of medium and long-term finance; -- Average sugar prices at USD14 cents/pound in 2015/2016, USD16 cents/pound in 2016/2017 and flat at USD17 cents/pound from 2017/2018 on; -- Domestic ethanol prices keeping the historical correlation with international sugar prices. RATING SENSITIVITIES Further deterioration of liquidity will lead to a negative rating action. A positive rating action is unlikely in the short term. In the medium term, a positive rating action will depend on increased bank lending to the sector and higher prices for sugar and ethanol leading to more robust operating cash flows and improved liquidity position for Tonon. A large equity injection or the takeover of the company by a peer would be viewed positively ========================== C A Y M A N I S L A N D S ========================== CANYON CAPITAL 2004-1: Members' Final Meeting Set for June 3 ------------------------------------------------------------ The members of Canyon Capital CLO 2004-1 Ltd. will hold their final meeting on June 3, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Maples Liquidation Services (Cayman) Limited c/o PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands CEP MENA 2: Shareholders' Final Meeting Set for May 28 ------------------------------------------------------ The shareholders of CEP Mena 2 will hold their final meeting on May 28, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands CITATION HIGH: Members' Final Meeting Set for June 10 ----------------------------------------------------- The members of Citation High Grade ABS CDO I, Ltd. will hold their final meeting on June 10, 2015, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Maples Liquidation Services (Cayman) Limited c/o PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands EMERALD LEASING: Members' Final Meeting Set for June 9 ------------------------------------------------------ The members of Emerald Leasing, Ltd. will hold their final meeting on June 9, 2015, at 9:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands FORT POINT: Members' Final Meeting Set for June 10 -------------------------------------------------- The members of Fort Point CDO I Ltd will hold their final meeting on June 10, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Maples Liquidation Services (Cayman) Limited c/o PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands IRONSIDE HOLDINGS: Members' Final Meeting Set for June 9 -------------------------------------------------------- The members of Ironside Holdings will hold their final meeting on June 9, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands MACQUARIE FUNDS: Members' Final Meeting Set for June 9 ------------------------------------------------------ The members of Macquarie Funds Management SPC will hold their final meeting on June 9, 2015, at 9:10 a.m., at the offices of MaplesFS Limited, 4th Floor of Boundary Hall, in Cricket Square, Grand Cayman, KY1-1102, Cayman Islands. OBSIDIAN TAIL: Members' Final Meeting Set for May 26 ---------------------------------------------------- The members of Obsidian Tail Risk Fund Ltd. will hold their final meeting on May 26, 2015, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands OPUS COMMODITIES: Members' Final Meeting Set for May 28 ------------------------------------------------------- The members of Opus Commodities Fund Limited will hold their final meeting on May 28, 2015, at 1:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands PELOTON ABS: Creditors' Final Meeting Set for May 29 ---------------------------------------------------- The creditors of Peloton ABS Master Fund will hold their final meeting on May 29, 2015, at 11:00 a.m. The company's liquidator is: Tammy Fu Zolfo Cooper (Cayman) Limited 38 Market Street, 2nd Floor Canella Court, Camana Bay Grand Cayman KY1-9006 Cayman Islands ========= C H I L E ========= MASISA S.A.: S&P Alters Outlook to Negative & Affirms BB- CCR ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Masisa S.A. to negative from stable. At the same time, S&P affirmed its 'BB-' corporate credit and senior unsecured ratings on the company. The outlook revision reflects S&P's expectation that Masisa's liquidity could weaken in the next few quarters as a result of significant currency depreciation in Argentina and Venezuela, which would shrink Masisa's cash flow and cash position. The company generates about 50% of its consolidated EBITDA in Argentina and Venezuela. In addition, due to existing foreign exchange transfer restrictions and controls in those countries, Masisa doesn't have full access to funds to serve its consolidated debt. The sharp currency devaluation in Argentina and Venezuela and the economic slowdown in the region reduced the company's EBITDA generation to $156 million in 2014 from $208 million in 2013. In 2015 and 2016, S&P estimates that EBITDA will recover to its 2013 levels, partly due to the company's cost-savings initiatives. S&P expects Masisa's credit metrics to improve starting in 2017 due to more stable macroeconomic conditions in the countries where it operates, coupled with higher revenue from Mexico, where its medium-density fiberboard plant will start operating. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Talks for Wage-Raise Pact Fail a Sixth Time --------------------------------------------------------------- Dominican Today reports that for the sixth time management and labor again failed to reach an agreement to raise wages in the meeting of around three hours May 13 at the Labor Ministry's Salary Committee. Employers' representative huddled for more than an hour and then the Committee postpone the talks so they can meet with their associations, on which Wage Committee director Felix Hidalgo scheduled a new meeting next May 20, according to the report. Dominican Today discloses that, for their part, union leader Rafael 'Pepe' Abreu said management's proposed increase of around 9% was under the condition discuss the reclassification of companies, but said they won't agree to that and would be willing to lower their demand increase from 35% to 25%. The union leader Gabriel del Rio also said employers aren't working for peace in the labor sector and warned that if they fail to put forth a sensible proposal at the next meeting, the workers would decide on further action, the report adds. =========== M E X I C O =========== CEMEX SAB: To Invest $300MM in Cement Plant in Philippines ---------------------------------------------------------- EFE News reports that CEMEX S.A.B. de C.V. said it planned to invest $300 million to add an integrated cement production line at its Solid plant on the island of Luzon in the Philippines. "This will double the capacity of the Solid plant and will represent a 25 percent increase in the company's cement capacity in the Philippines," CEMEX said in a statement obtained by the news agency. The report notes that CEMEX Philippines officially inaugurated its "completed capacity expansion in its APO plant in Cebu, the largest cement plant in the country, as well as a network of logistics centers in Visayas and Mindanao," earlier this month, the Mexican cement giant said. The $80 million project boosted CEMEX's cement production capacity at the APO plant by 40 percent and helped improve distribution capabilities with additional terminals in Iloilo and Davao, the report relates. "We are preparing our facilities for the increasing demand in the Philippines, reiterating our commitment to support the development of the country," the report quoted CEMEX Asia President Joaquin Estrada as saying. CEMEX Philippines has also built an $18.6 million waste heat-to- energy power plant "which will capture the excess heat in one of its cement production facilities to produce usable electricity," the company said, the report notes. The Mexican cement giant's unit in the Philippines is already using alternative fuels, such as rice husks and refuse-derived fuel, in an effort to cut energy costs, the report relates. CEMEX Chief Executive Officer Fernando Gonzalez Olivieri recently visited the Asian nation and expressed his commitment to promoting growth, the report notes. "We see a positive outlook in the business environment and we are committed to be a reliable cement supplier given the growing need for high-quality building materials required for public infrastructure, commercial projects and housing," the report quoted Mr. Gonzalez as saying. CEMEX, which was founded in 1906 in the northern Mexican city of Monterrey, has operations in more than 50 countries. * * * As reported in the Troubled Company Reporter-Latin America on March 9, 2015, Standard & Poor's Ratings Services revised its outlook on CEMEX S.A.B. de C.V. (CEMEX) to positive from stable. At the same time, S&P affirmed its 'B+' global scale and 'mxBBB' national scale ratings on CEMEX and its subsidiaries, CEMEX Espana S.A., CEMEX Mexico S.A. de C.V., and CEMEX Inc. OHL MEXICO: Senators Want Probe Into Possible Gov't Corruption -------------------------------------------------------------- EFE News reports that Mexican opposition senators are calling for a thorough investigation into possible wrongdoing by the Mexican unit of Spanish construction group OHL and local government authorities in the setting of highway tolls. Two senators representing that state -- Laura Angelica Rojas, a member of the conservative National Action Party, or PAN, and Alejandro Encinas, of the leftist Party of the Democratic Revolution, or PRD -- led the call for the probe, according to EFE News. The report notes that they said that after the release of suspicious audio recordings involving purported senior OHL Mexico executives a thorough investigation must be conducted to "determine the acts of corruption committed and identify if there was acquiescence by state authorities." In that regard, Rojas, a member of the Senate's Anti-Corruption and Citizen Participation Committee, recalled that Mexico state Gov. Eruviel Avila, of the ruling Institutional Revolutionary Party, or PRI, said in recent days that the state comptroller's office will audit the contract awarded to OHL Mexico for construction of the Viaducto Bicentenario toll road, the report relates. The federal government's Public Function Secretariat and Pricewaterhouse Coopers will assist with the audit, Ms. Avilla added. The senators called on Congress to urge the secretariat and the government of Mexico state to send it a detailed report on the results of the investigation and to determine any administrative responsibilities, the report relays. A newspaper column published last week accused the company of sharply raising a highway toll without justification. In his column published May 6 in Mexican daily La Razon, journalist Mauricio Flores cited the audio recordings involving purported company executives as proof of wrongdoing by OHL Mexico, the report recalls. OHL Mexico has raised the toll it charges motorists to use the Viaducto Bicentenario, which runs from the Cuatro Caminos intersection to the Mexico City-Queretaro highway junction, by 30 percent this year, according to Flores, who said the hike was seven times the inflation rate, the report relates. The report discloses that Mr. Flores said the toll hike was irregular because the company has been effectively charging for the construction of a second phase of the highway project even though it has not started it yet. In one of the other recordings, which were uploaded to YouTube, OHL Mexico executive Pablo Wallentin appears to offer to pay for a family vacation of the communications secretary of Mexico state, apparently as a favor for allowing the toll hike, the report relays. Mr. Wallentin resigned after being implicated in the scandal, OHL Mexico said. The report notes that Enrique Weickert, the chief financial officer of OHL Mexico's parent company, said in Spain that the group is confident that the investigations into alleged irregularities in Mexico will show the allegations are false. OHL Mexico is a construction and highway management company. ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN AIRLINES: Merger With LIAT Not Likely Any Time Soon ------------------------------------------------------------- RJR News reports that Larry Howai, Trinidad & Tobago's Finance Minister, has declared that a merger of Caribbean Airlines Limited and LIAT, operating as Leeward Islands Air Transport, is not likely to occur at this time. The suggestion of a merger was recently made by Dr. Ralph Gonsalves, Chairman of the shareholder governments which own LIAT, according to RJR News. The report notes that Mr. Howai, the line minister for CAL, told Trinidad's Business Day newspaper that the matter was not under consideration by the airline. But, Trade Minister, Vasant Bharath said although both airlines have had their share of financial troubles, he was willing to have further discussions on the issue, the report relates. CAL has been recording significant financial losses while LIAT, which is also strapped for cash, has begun a redundancy program, under which 180 employees will be released, the report discloses. Dr. Gonsalves, who is Prime Minister of St. Vincent & the Grenadines, threw out his merger proposal while in Port-of-Spain last week attending a conference, the report relays. Dr. Gonsalves provided two reasons to justify his proposal -- deepening regional integration, and the fact that LIAT has acquired a new fleet of ATR aircraft, the report adds. About Caribbean Airlines Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on July 11, 2014, Trinidad and Tobago Newsday said that Caribbean Airlines is facing another loss. However, Finance Minister Larry Howai is hopeful the loss could be narrowed down to less than TT$100 million, according to Trinidad and Tobago Newsday. Mr. Howai noted the airline industry is not the easiest and many airlines have gone bankrupt at some point. Citing Caribbean360.com, the TCRLA on May 20, 2013, said Minister Howai said Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. In 2011, CAL had recorded losses of US43.7 million. *********** 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 * * *