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/raid1/www/Hosts/bankrupt/TCRLA_Public/150709.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, July 9, 2015, Vol. 16, No. 134 Headlines B A H A M A S BAHA MAR: Chinese Firm Blames Bankruptcy on Developer B R A Z I L * BRAZIL: Producers Plan Big Ethanol Push C A Y M A N I S L A N D S ANNAPURNA FUND: Commences Liquidation Proceedings AQUARIUS DIVERSIFIED: Creditors' Proofs of Debt Due July 13 BLUEWATER BIO: Creditors' Proofs of Debt Due July 22 CAISSON INDEMNITY: Creditors' Proofs of Debt Due July 22 HYPERION CAPITAL: Creditors' Proofs of Debt Due July 22 JASPER (CAYMAN): Commences Liquidation Proceedings L.B. DELTA: Creditors' Proofs of Debt Due July 13 L.B. DELTA (CAYMAN) 1: Creditors' Proofs of Debt Due July 13 SAGITTARIUS DIVERSIFIED: Creditors' Proofs of Debt Due July 13 SILVERTON REAL: Creditors' Proofs of Debt Due July 14 YAOLAN NEW: Creditors' Proofs of Debt Due July 22 D O M I N I C A N R E P U B L I C * DOMINICAN REP: Must be Wary of Foreign Loans Linked to Purchases * DOMINICAN REP: River Basin Needs US$70MM Yearly to Survive J A M A I C A JAMAICA: Achieves Primary Surplus Target for June, EPOC Says M E X I C O PETROLEOS MEXICANOS: Employees Arrested on Extortion Charges V E N E Z U E L A * VENEZUELA: Caricom Cautions Country on Guyana Border Dispute - - - - - ============= B A H A M A S ============= BAHA MAR: Chinese Firm Blames Bankruptcy on Developer ----------------------------------------------------- Tim McLaughlin at Reuters reports that the Chinese construction company building the unfinished $3.5 billion Baha Mar resort in the Bahamas accused the developer of mismanaging the project's design and not securing adequate financing. China Construction America (CCA) has been blamed for the delays that caused the Baha Mar project to file for bankruptcy protection late last month in a Delaware court, according to Reuters. But CCA said the developer of the project replaced the mega resort's principal architect after construction began and had more than 1,300 change orders for construction contractors, the report notes. Developer Baha Mar Ltd is run by Sarkis Izmirlian, the son of an Armenian billionaire. Construction delays, funding squabbles, lagging inspections and faulty work at the Nassau resort have led to finger pointing among Izmirlian, CCA and China's export finance bank, which bankrolled most of the project with a $2.45 billion loan, the report notes. Baha Mar Ltd called CCA's statement an "attempt at damage control" and declined further comment, according to a spokeswoman for the developer, the report discloses. Meanwhile, the turmoil over Baha Mar has roiled the Caribbean nation's fragile economy, aggravated would-be tourists and idled thousands of workers amid already high Bahamian unemployment and slack revenue growth, the report relates. "Baha Mar Ltd's decision to file for bankruptcy protection is the direct result of its failure to secure adequate financing and its mismanagement of the design of Baha Mar resort project," China Construction America said in its first public statement since Baha Mar's bankruptcy filing, the report relays. CCA is a unit of China State Construction Engineering Corp Ltd and Baha Mar's general contractor. Izmirlian and Baha Mar Ltd have accused the Chinese construction firm of falling behind schedule and causing the project to go into bankruptcy, according to U.S. court filings, the report notes. CCA said those claims are "insulting." CCA said it has hired Island Capital Group, led by Andrew Farkas, as its restructuring and financial adviser, the report says. Farkas formerly was chief executive officer of Insignia Financial Group, which he merged with CB Richard Ellis in 2003 to form one of the largest commercial real estate services companies in the world, the report relays. Baha Mar Ltd recently told a bankruptcy judge the project is 97 percent complete. Work has been stalled for weeks and there is no timeline for construction to resume, the report discloses. Baha Mar was originally scheduled to open in December. That deadline was missed, as was an end-of-March deadline, the report notes. The second delay proved "devastating" to Baha Mar Ltd, which had hired more than 2,000 hotel and casino workers to staff the opening, the developer said in its court filing, the report adds. About Baha Mar Orlando, Florida-based Northshore Mainland Services Inc., Baha Mar Enterprises Ltd., and their affiliates sought protection under Chapter 11 of the Bankruptcy Code on June 29, 2015 (Bankr. D.Del., Case No. 15-11402). Baha Mar owns, and is in the final stages of developing, a 3.3 million square foot resort complex located in Cable Beach, Nassau, The Bahamas. The case is assigned to Judge Kevin J. Carey. The Debtors are represented by Paul S. Aronzon, Esq., and Mark Shinderman, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los Angeles, California; and Gerard Uzzi, Esq., Thomas J. Matz, Esq., and Steven Z. Szanzer, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York. The Debtors' Delaware counsel are Laura Davis Jones, Esq., James E. O'Neill, Esq., Colin R. Robinson, Esq., and Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware. The Debtors' Bahamian counsel is Glinton Sweeting O'Brien. The Debtors' special litigation counsel is Kobre & Kim LLP. The Debtors' construction counsel is Glaser Weil Fink Howard Avchen & Shapiro LLP. The Debtors' investment banker and financial advisor is Moelis Company LLC. The Debtors' claims and noticing agent is Prime Clerk LLC. =========== B R A Z I L =========== * BRAZIL: Producers Plan Big Ethanol Push ----------------------------------------- EFE News reports that Brazil's ethanol producers called at the Ethanol Summit 2015 in Sao Paulo for bolstering sales of the biofuel, which has lost market share to petroleum derivatives in recent years, in an effort to have a more balanced energy mix. Ethanol is essential for cuttting imports of gasoline, Petrobras CEO Aldemir Bendine said. The biofuel currently accounts for 16 percent of Brazil's energy mix and the government has the legal tools to provide greater support to the industry, National Petroleum, Gas and Biofuels Agency, or ANP, director Magda Chambriard said, according to EFE News. Brazil has been producing ethanol from sugar cane for three decades, but the industry lost its competitive edge in recent years due to a drought and the government's decision to freeze gasoline prices in 2014 as a way of fighting inflation, the report relates. Ethanol's share of the national fuel mix has fallen from 54 percent to 36 percent over the past six years, and a University of Sao Paulo study found that 300,000 jobs were lost in the industry and several plants were on the verge of bankruptcy, the report says. The government approved an increase in the amount of ethanol that must be blended into gasoline from 25 percent to 27 percent in March in an attempt to boost the biofuels industry, the report notes. The report discloses that about 90 percent of the automobiles in Brazil are equipped with engines that can use any blend of gasoline and ethanol. Recent studies concluded that Brazil could achieve advanced biofuels production of 170 billion liters annually by 2030, allowing the South American country to reduce gasoline consumption by 83 percent, the report says. Ethanol, made from crops such as sugar cane and corn, is basically grain alcohol. The clean-burning fuel is usually mixed with unleaded gasoline and can be pumped into vehicles at existing service stations, the report notes. The two-day Ethanol Summit 2015 drew about 1,300 participants. ========================== C A Y M A N I S L A N D S ========================== ANNAPURNA FUND: Commences Liquidation Proceedings ------------------------------------------------- On May 28, 2015, the sole shareholder of The Annapurna Fund 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: Ewan Christian Telephone: +442073402825 Facsimile: +448707108448 29 Queen Anne's Gate London SW1H 9BU UK AQUARIUS DIVERSIFIED: Creditors' Proofs of Debt Due July 13 ----------------------------------------------------------- The creditors of Aquarius Diversified Asian Long/Short Equities Ltd. are required to file their proofs of debt by July 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 12, 2015. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands BLUEWATER BIO: Creditors' Proofs of Debt Due July 22 ---------------------------------------------------- The creditors of Bluewater Bio International are required to file their proofs of debt by July 22, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 9, 2015. The company's liquidator is: Eleanor Fisher Zolfo Cooper 38 Market Street, 2nd Floor, Canella Court Camana Bay Grand Cayman KY1-9006 Cayman Islands c/o Christina Ward Telephone: +1 (345) 814 4037 CAISSON INDEMNITY: Creditors' Proofs of Debt Due July 22 -------------------------------------------------------- The creditors of Caisson Indemnity SPC, Ltd. are required to file their proofs of debt by July 22, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 9, 2015. The company's liquidator is: DMS Corporate Services Ltd. c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands HYPERION CAPITAL: Creditors' Proofs of Debt Due July 22 ------------------------------------------------------- The creditors of Hyperion Capital Fund, L.P. are required to file their proofs of debt by July 22, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 10, 2015. The company's liquidator is: DMS Corporate Services Ltd. c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands JASPER (CAYMAN): Commences Liquidation Proceedings -------------------------------------------------- On June 4, 2015, the sole shareholder of Jasper (Cayman) Closing Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidators are: Anna Yonge Gary Butler Telephone: 345-949-4244 Facsimile: 345-949-8635 P.O. Box 61 Harbour Centre, George Town Grand Cayman KY1-1102 Cayman Islands L.B. DELTA: Creditors' Proofs of Debt Due July 13 ------------------------------------------------- The creditors of L.B. Delta Funding Limited are required to file their proofs of debt by July 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 9, 2015. The company's liquidator is: KRyS Global, Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 c/o Allan Virtue Telephone (345) 947 4700 L.B. DELTA (CAYMAN) 1: Creditors' Proofs of Debt Due July 13 ------------------------------------------------------------ The creditors of L.B. Delta (Cayman) No. 1 Limited are required to file their proofs of debt by July 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 9, 2015. The company's liquidator is: KRyS Global, Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 c/o Allan Virtue Telephone (345) 947 4700 SAGITTARIUS DIVERSIFIED: Creditors' Proofs of Debt Due July 13 -------------------------------------------------------------- The creditors of Sagittarius Diversified Long/Short Equities Ltd. are required to file their proofs of debt by July 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 12, 2015. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands SILVERTON REAL: Creditors' Proofs of Debt Due July 14 ----------------------------------------------------- The creditors of Silverton Real Estate Fund are required to file their proofs of debt by July 14, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 29, 2015. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands Telephone: +1 (345) 949 4900 YAOLAN NEW: Creditors' Proofs of Debt Due July 22 ------------------------------------------------- The creditors of Yaolan New Media Ltd. are required to file their proofs of debt by July 22, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 4, 2015. The company's liquidator is: Anthony Tong Yi Chang c/o Global Education Learning Suite 901, The Hong Kong Club Building 3A Chater Road Central, Hong Kong Telephone: +852 3152-7680 Facsimile: +1 484 582 1062 =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REP: Must be Wary of Foreign Loans Linked to Purchases ------------------------------------------------------------------ Dominican Today reports that Dominican Republic Industries Association (AIRD) Executive Vice President Circe Almanzar urged the government to be wary of loans from countries that require the purchase of all items associated with the funded projects. Ms. Almanzar said government purchases must be carried out under public policies favoring locally manufactured products in state calls for tenders, according to Dominican Today. The AIRD executive spoke during the opening of the 3rd. Business Roundtable for MSMEs which concludes in the Embajador hotel, co- hosted jointly by the Public Procurement Agency (DGCP) and the Inter-American Bank's IDB-MIF, the report relays. "This Third Public Market Business Roundtable for MSMEs is a success and is a sign that we must continue to consolidate capacity: to sit at the same table to negotiate the best not only for the government or for business, but also for the country," the report quoted Ms. Almanzar as saying. * DOMINICAN REP: River Basin Needs US$70MM Yearly to Survive ------------------------------------------------------------ Dominican Today reports that the head of the north Yaque river basin sustainable development plan director said the fact that only 40% of the basin is forested reveals its degradation. Humberto Checo said the Plan aims to increase coverage to 80% in five years to make it a healthy watershed, for which US$70.0 million needed each year, according to Dominican Today. "We have to reach 8%, which is 200,000 hectares of watershed, which require planting 80 million trees per year," according to Mr. Checo. Mr. Checo said a study on rainfall and volume in 20 of the north Yaque's 75 watersheds found that the recent drought cut the average flow to only 40%, "which reveals deterioration." "They aren't healthy; a healthy watershed has a stable forest cover and has water flowing even if it stops raining. The water seeps into the subsoil through the forests," Mr. Checo added, the report relays. Interviewed on the program Quidando el Huerto (Tending the Vegetable Garden), Mr. Checo said the priority now is to restore lost forest areas and keep them there through appropriate management and reforestation, for which he affirms that as many as 60,000 days of work per person are needed per year, the report discloses. The north Yaque basin's 7,053 square kilometers are spread over La Vega, Santiago, Valverde, Santiago Rodriguez, Montecristi and Dajabon provinces home to 40 cities and towns with a population of 1.5 million. ============= J A M A I C A ============= JAMAICA: Achieves Primary Surplus Target for June, EPOC Says ------------------------------------------------------------ RJR News reports that Jamaica has reportedly achieved the primary surplus target of J$17 billion, set in agreement with the International Monetary Fund (IMF) for the month of June. Accordingly, it is expected that the country will have satisfied all the requirements of the IMF for June, the report notes. Word of this came from Richard Byles, Co-Chair of the public- private sector Economic Program Oversight Committee (EPOC), who said he had been provided with the data by the Ministry of Finance & Planning, according to RJR News. The report relates that Mr. Byles, giving EPOC's monthly report on the performance of the economy, said the government had maintained a strong fiscal management program during the first two months of the current financial year. April and May were "particularly good months for the country," he said, with revenues of J$1.25 billion (5.2%) ahead of target and expenditures J$3.34 billion (7.6%) less than projected, the report discloses. The report notes that there was a cumulative primary surplus of J$2.8 billion, which is J$4.4 billion better than the projected deficit target of J$1.6 billion, Mr. Byles reported. Revenues Tax revenues for the April to May period were also above budget and stood at J$58.7 billion, better than the J$55.9 billion projected, the report relays. The report says that the main contributors to the higher than expected tax revenues were General Consumption Tax (GCT) and Special Consumption Tax (SCT). Mr. Byles said there was still cause for concern regarding the underperformance of revenue items such as grants, customs duty and stamp duty, as well as company tax and dividend tax, the report relates. At the end of June, the country's Net International Reserves (NIR) stood at US$2.12 billion. The target set was US$1.3 billion, says RJR News. "Notwithstanding the payout of debt of US $350 million, the NIR remains considerable ahead of target," Mr. Byles noted, the report relates. Two other strong economic indicators that continue to record strong performances for the country, the EPOC Co-Chair said, were remittance inflows and tourist arrivals, the report discloses. During the January to March quarter, remittances were US$471 million, up 1.8% per over the equivalent period last year, while gross earnings in the tourism sector for May stood at J$2.25 billion, he reported, RJR News adds. * * * As reported in the Troubled Company Reporter-Latin America on June 5, 2015, Standard & Poor's Ratings Services raised its long- term foreign and local currency sovereign credit ratings on Jamaica to 'B' from 'B-'. In addition, S&P affirmed the 'B' short-term ratings on Jamaica. The outlook on the long-term ratings is stable. S&P also raised the transfer and convertibility assessment to 'B+' from 'B'. =========== M E X I C O =========== PETROLEOS MEXICANOS: Employees Arrested on Extortion Charges ------------------------------------------------------------ Latin American Herald Tribune reports that three people, including an employee of state-owned oil giant Petroleos Mexicanos (Pemex) were arrested for running an extortion racket that targeted the Super Pereyra company, Pemex officials said. The Public Administration Secretariat is investigating a complaint filed by a Pemex Exploracion y Produccion employee, who alleged that officials of the state-owned oil company were involved in a scheme that targeted Super Pereyra, according to Latin American Herald Tribune. The report notes that the allegations are linked to bidding for a food and housing services contract for platforms in the Sound of Campeche, Pemex said in a statement. The suspects allegedly demanded that Super Pereyra pay MXN10 million ($635 million) in cash and provide two SUVs to "support" development of the contract, Pemex said, the report notes. The Public Administration Secretariat and Super Pereyra filed complaints on June 25 with the Attorney General's Office, leading to the arrest of the three suspects at a restaurant in Mexico City's upscale Polanco district, the report relates. "Three days later, the prosecutor's office charged the suspects with extortion, and they were ordered held in prison on July 5, for the crime of extortion," Pemex said, the report adds. The investigation continues "to determine whether any other public servants are involved," Pemex said, adding that management ordered full cooperation from the start so officials could "get to the bottom" of what happened, the report relates. Petroleos Mexicanos, together with its subsidiaries, engages in the exploration, exploitation, refining, transportation, storage, distribution, and sale of crude oil, natural gas, and derivatives of petroleum and natural gas in Mexico. ================= V E N E Z U E L A ================= * VENEZUELA: Caricom Cautions Country on Guyana Border Dispute --------------------------------------------------------------- RJR News reports that the heads of Government of the Caribbean Community (CARICOM) ended their three-day summit in Barbados on July 4, warning Venezuela that its action regarding the border dispute with Guyana could poison relations with the regional group. Venezuela has recently renewed a longstanding claim to a large portion of Guyana's territory, sparking concerns about instability and tension in the region, according to RJR News. The leaders also condemned the action of the Dominican Republic in deporting people of Haitian descent and making them stateless, the report discloses. Prime Minister Freundel Stuart of Barbados, who currently chairs CARICOM, also acknowledged that the leaders had not agreed on a candidate for the position of Commonwealth Secretary General, the report notes. Prime Minister Stuart said moves were afoot to have that matter settled as quickly as possible, the report adds. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2015. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *