/raid1/www/Hosts/bankrupt/TCRLA_Public/150821.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, August 21, 2015, Vol. 16, No. 165
Headlines
B A H A M A S
BAHA MAR: Hearing on Case Dismissal Delayed to Aug. 28
BAHA MAR: Bahamian Case Doesn't Moot US Ch. 11, Del. Judge Says
B R A Z I L
DRIVER BRASIL: Moody's Rates Mezzanine Shares (P)Ba2
TONON BIOENERGIA: Fitch Raises Issuer Default Rating to 'CC'
PETROLEO BRASILEIRO: Camargo Correa to Pay BRL104MM Fine
C A Y M A N I S L A N D S
CHAUMET INVESTMENTS: Creditors' Proofs of Debt Due Sept. 16
CHAUMET INVESTMENTS II: Creditors' Proofs of Debt Due Sept. 16
CHRONOGRAPH LIMITED: Creditors' Proofs of Debt Due Sept. 16
EBEL EQUITY: Creditors' Proofs of Debt Due Sept. 16
EQUITY ESA: Creditors' Proofs of Debt Due Sept. 16
LUXURY HOLDINGS: Creditors' Proofs of Debt Due Sept. 16
TIMEPIECE HOLDINGS: Creditors' Proofs of Debt Due Sept. 16
TIMEPIECE HOLDINGS III: Creditors' Proofs of Debt Due Sept. 16
TIMEPIECE LTD: Creditors' Proofs of Debt Due Sept. 16
TIMEPIECE NOTE: Creditors' Proofs of Debt Due Sept. 16
D O M I N I C A N R E P U B L I C
GLENCORE DOMINICAN: Ops Reveals Buyer's Profile After Faux Pas
* DOMINICAN REPUBLIC: Dam Could Deal With Effects of Drought
M E X I C O
CIBANCO SA: Moody's Lowers Rating on Series A Cert. to C(sf)
MEXICO: Foreign Reserves Fall by Nearly $1.4 Billion
MEXICO: Steelmakers Warn of Impact of Yuan's Devaluation
P U E R T O R I C O
CASIANO COMMUNICATIONS: Court Interprets 'Right of First Refusal'
PUERTO RICO AQUEDUCT: Sale Pushed as Restructuring Looms
STANDARD REGISTER: Delaware Court Approves Name Change
T R I N I D A D & T O B A G O
TRINIDAD CEMENT: S&P Raises CCR to 'B-' & Removes from Watch Pos.
TRINIDAD & TOBAGO: Ex Gov. Criticized Claims on US$ Shortage
- - - - -
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B A H A M A S
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BAHA MAR: Hearing on Case Dismissal Delayed to Aug. 28
------------------------------------------------------
Tribune 242 reports that the U.S. bankruptcy hearing for Baha Mar
has been delayed to Aug. 28, 2015. Law360 states that the hearing
to consider lender Export Import Bank of China and general
contractor China State Construction America was originally
scheduled for Aug. 17, 2015.
Citing the Hon. Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware, The Wall Street Journal relates that
questions about the effects of the court's rulings outside the
U.S. "doesn't mean there might not be some benefit" to allowing
the Chapter 11 Case to continue, and the continuation of the U.S.
case would not harm creditors' rights in the Bahamian proceedings.
Khrisna Virgil at Tribune 242 says that the delay in the U.S.
court means that the matter will be dealt with a week after the
Supreme Court of the Bahamas hears on Aug. 19, 2015, the
government's winding up petition against the Company. According
to Tribune 242, a delayed hearing on a winding-up petition by the
government has been set for Aug. 19 and 20 after China
Construction America expressed reservations over the appointment
of PriceWaterhouseCoopers Bahamas as the Company's provisional
liquidators.
Tribune 242 recalls that Supreme Court Justice Ian Winder denied
in July 2015 an application for the recognition of the Company's
ongoing Chapter 11 bankruptcy proceedings in the U.S. but earlier
this month granted the Company leave to appeal that decision.
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 counselare 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.
BAHA MAR: Bahamian Case Doesn't Moot US Ch. 11, Del. Judge Says
---------------------------------------------------------------
Peter Hall, writing for Law360 reports, that Delaware Bankruptcy
Judge Kevin J. Carey said the insolvency proceeding in the Bahamas
doesn't necessarily moot the parallel Chapter 11 case of the
stalled $3.5 billion Baha Mar resort's developer, saying creditors
wouldn't be harmed if it continued. The judge's remarks came
during a hearing in Wilmington ahead of a proceeding Wednesday in
the Bahamian court to appoint a liquidator of the unfinished Cable
Beach casino and resort after a judge there refused to recognize
the Delaware bankruptcy court's authority.
Meanwhile, ABI.org reports that the opening of the $3.5 billion
Baha Mar mega-resort in the Bahamas is expected to be delayed
beyond the start of the Christmas season, with the developer deep
in an escalating legal battle with a Chinese bank.
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 counselare 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
===========
DRIVER BRASIL: Moody's Rates Mezzanine Shares (P)Ba2
----------------------------------------------------
Moody's America Latina has assigned provisional ratings to the
senior and mezzanine shares to be issued by Driver Brasil Three
Banco Volkswagen Fundo de Investimento em Direitos Creditorios
Financiamento de Veiculos (Driver Brasil Three FIDC), a
securitization backed by a pool of auto loans originated by Banco
Volkswagen S.A.
Issuer: Driver Brasil Three FIDC
Senior Shares - (P)Aaa.br (sf) (National Scale) & (P)Baa2 (sf)
(Global Scale, Local Currency)
Mezzanine Shares - (P)A1.br (sf) (National Scale) & (P)Ba2 (sf)
(Global Scale, Local Currency)
The provisional ratings address the structure and characteristics
of the transaction based on the information provided to Moody's as
of Aug. 14, 2015. Certain issues relating to this transaction,
including the interest rate swap agreement, have yet to be
finalized. Upon conclusive review of all documents and legal
information as well as any subsequent changes in information,
Moody's will endeavor to assign definitive ratings to this
transaction. If any assumptions or factors considered by Moody's
in assigning the ratings change, Moody's could change the ratings
assigned to the shares.
RATINGS RATIONALE
The ratings are based on the following factors, among others:
-- The initial 8.0% credit enhancement for the senior shares
and 4.0% for the mezzanine shares in the form of
overcollateralization (OC). After closing, the OC must
reach the 10.0% target senior OC ratio and 5.0% target
mezzanine OC ratio to allow cash flows to be released to the
junior shareholders. The transaction also benefits from a
cash collateral account sized at 1% of the discounted
principal balance on the purchase date.
-- Asset performance triggers that require an increase of the
senior and mezzanine target OC ratio to 15% and 9%
respectively, if performance deteriorates with the
cumulative net loss ratio above 1.5% in the first 12 months
or 3.5% between months 13 to 24. If at any time the
cumulative net loss ratio exceeds 5%, the transaction will
enter into sequential amortization.
-- Static pool and no additional on-going purchases of assets
after the transaction's closing.
-- The discount rate used to calculate the discounted principal
balance is derived from the weighted average financing cost
of the Fund (weighted average rate of the swap agreements
and servicing and administrative fees), plus expected excess
spread of around 145bps to cover net losses.
-- Strong historical performance of loans originated by Banco
Volkswagen, reflecting robust underwriting credit criteria.
-- Good credit quality of the static target pool for Driver
Brasil Three FIDC. The securitized pool will only include
loans to finance light vehicles; loans for trucks and heavy
vehicles are not allowed. The preliminary pool, as of
July 31, 2015, is highly diversified consisting of 56,826
loans. Approximately 90% of the discounted pool balance is
related to loans that finance the acquisition of new
vehicles. Loans are extended to a diversified retail
customer base of mostly private individuals, representing
88% of the discounted pool balance. The original weighted
average loan term is 39 months, however the pool has an
average seasoning of 15 months, resulting in a weighted
average remaining loan term of only 24 months.
-- The role of Banco Bradesco (Baa3), as master servicer, and
its subsidiary, BEM DTVM, as trustee of the transaction.
The transaction benefits from Bradesco's operational
quality;
-- The overall transaction structure and the legal framework,
including the bankruptcy remoteness of the issuer and well
established Brazilian laws and regulations for the
securitization of vehicle loans;
The senior and mezzanine shares will accrue a floating-rate
interest of the CDI Rate (Brazilian Interbank Rate) plus a fixed
spread to be determined during bookbuilding, with daily accrual,
and their final maturity will take place 60 months after closing.
The maturity could be extended by the trustee, on a discretionary
basis, for a maximum period of 12 additional payment dates counted
from the maturity date of the credit right with the latest
maturity date, to allow for potential recoveries. Payments to
subordinated shares are permitted on a monthly basis as long as
(a) target senior OC ratio, the senior OC floor, the target
mezzanine OC ratio and the mezzanine OC floor are maintained and
(b) no evaluation or early liquidation event is triggered.
Interest Rate Swaps
The transaction documents contemplate that the fund will enter
into interest rate swaps with en eligible swap counterparty (Banco
Bradesco S.A., Itau Unibanco S.A., Banco Santander (Brasil) S.A.,
or HSBC Bank Brasil S.A. - Banco Multiplo) to mitigate the
interest rate risk arising from the fixed rate assets and floating
rate liabilities. The interest rate swap is expected to
adequately hedge the interest rate risk on the senior and
mezzanine shares.
Moody's notes that the interest rate swap will only be entered
between the fund and the hedge counterparty after closing of the
fund. Moody's notes that it has not modeled any interest rate
risk in the transaction, and that the assigned provisional ratings
assume that the interest rate swaps i) will be in place in a short
period of time after closing of the fund and ii) that their
notional volume closely tracks the outstanding notional volumes of
the senior and mezzanine shares as they decrease thereby
satisfactorily eliminating actual interest rate mismatches
incurred.
Early Swap Termination
Risk may arise from the early termination of the swaps given i) a
positive market value of the swap to the fund upon swap
counterparty default or ii) open interest rate risk position to
the fund should the swap be early terminated.
The swap agreement is expected to largely mirror that of the
Driver Brasil Two FIDC, which included a number of events of
default and events of early termination upon which the swap may be
terminated, exposing the fund to interest rate risk.
Whilst in Moody's opinion the inclusion of the events of early
termination/ event of default language is commensurate with the
assigned provisional rating on the senior and mezzanine shares
given the remoteness of any such event occurring, the overall
effect of these triggers is viewed as a credit negative.
Banco Bradesco S.A. will act as Master Servicer (custodiante) of
the transaction as well as payment bank. Its responsibilities
include, among other duties, verifying that all receivables
purchased by the fund meet certain eligibility criteria,
monitoring the early amortization triggers, in addition to
managing all of the Issuer's daily financial and operating
activities.
BEM DTVM S.A. (Banco Bradesco Group) will be the trustee. BRAM
DTVM (Banco Bradesco Group) will be the fund manager.
Banco Volkswagen (not rated), the seller and servicer, is an
integral part of Volkswagen Financial Services AG (rated Aa3 and
P-1), in turn owned by Volkswagen AG (rated A2 and P-1).
In assigning the ratings to this transaction, Moody's evaluated
historical performance data from January 1, 2005 and ending
April 30, 2015. Moody's key ratings-model assumptions for this
transaction include various performance statistics, including log
normal estimate of the annual loss rate with mean loss 3% and a
coefficient of variation of 50%. Other model input assumptions
include a conditional prepayment rate of 15% per annum. The
discount rate used for modeling was 16.5% per annum.
Moody's has considered how the cash flows generated by the
collateral are allocated to the parties within the transaction,
and the extent to which various structural features of the
transaction might themselves provide additional protection to
investors, or act as a source of risk. In addition, Moody's has
analyzed the strength of triggers to reduce the exposure of the
portfolio to the originator/servicer bankruptcy.
To determine the rating assigned to the shares, Moody's has used
an expected loss methodology that reflects the probability of
default for each series of shares times the severity of the loss
expected for the shares. In order to allocate losses to the
shares in accordance with their priority of payment and relative
size, Moody's has used a cash-flow model (ABSCORE) that reproduces
many deal-specific characteristics: the main input parameters of
the model are described above. Weighting each loss scenario's
severity result on the shares with its probability of occurrence,
the model has calculated the expected loss level for each series
of shares as well as the expected average life. Moody's model
then compares the quantitative values to the Moody's Idealized
Expected Loss table for each tranche.
Parameter sensitivities provide a quantitative, model-indicated
calculation of the number of notches that a Moody's-rated
structured finance security may vary if certain input parameters
used in the initial rating process differed. The analysis assumes
that the deal has not aged. It is not intended to measure how the
rating of the security might migrate over time, but rather, how
the initial rating of the security might differ as certain key
parameters vary.
Parameter sensitivities for this transaction have been calculated
in the following manner: Moody's tested nine scenarios derived
from the combination of mean loss: 3% (base case), 4.5% (base case
+ 1.5%), 6% (base case + 3%). and coefficient of variation rate:
50% (base case), 55% (base case + 5%), 60% (base case + 10%). The
3% / 50% scenario would represent the base case assumptions used
in the initial rating process.
At the time the rating was assigned, the model output indicated
that Senior Shares would have achieved a B1 (sf) global rating
model output if mean loss was as high as 6% with a coefficient of
variation of 60%. Under the same assumptions, the Mezzanine
Shares would have achieved Caa1 (sf) global rating model output.
Key uncertainties relate to future asset performance under a
severe stress scenario involving diminished economic growth and a
sharp rise in unemployment.
The principal methodology used in this rating was Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS published in
January 2015.
TONON BIOENERGIA: Fitch Raises Issuer Default Rating to 'CC'
------------------------------------------------------------
Fitch Ratings has upgraded Tonon Bioenergia S.A's foreign and
local currency Issuer Default Ratings (IDRs) to 'CC' from 'RD'.
At the same time, Fitch has assigned a 'CC/RR4' rating to the
USD289 million unsecured notes due 2020 (effective July 29, 2015),
and upgraded the rating on the remaining USD11 million senior
unsecured notes due 2020 and USD230 million senior secured notes
due 2024 to 'CC/RR4' from 'C/RR4'. All related debts have been
issued by Tonon's fully-owned subsidiary Tonon Luxembourg S.A.
KEY RATING DRIVERS
The upgrade of Tonon's IDRs to 'CC' follows the conclusion of the
debt exchange offer for the USD300 million senior unsecured bonds
due 2020 on July 13, 2015, but still reflects Fitch's concern
about the company's ability to meet its financial obligations on
time. Despite the USD70 million loan due 2019 received along with
the exchange offer, which has benefited its liquidity position,
Tonon continues to depend on creditors to roll over existing debt
and obtain fresh money to finance future negative free cash flow
(FCF). The company's operational environment remains weak due to
depressed sugar and ethanol prices, which also adds additional
challenges in an unfavorable macroeconomic scenario for Brazil.
Exchanged notes reached USD289 million from the total USD300
million and will enable the company to defer coupon payments for
the next two years at its discretion, which can potentially save
USD26 million in annual interest during this period considering
all issuances in place. After two years interest payments can be
deferred only if Tonon's cash position is below BRL100 million at
the end of the previous quarter. Exchanged notes have a step-up
coupon starting at 7.25% for the first two years, moving to 9.25%
from Jan. 24, 2017 onwards.
On a pro forma basis considering the new USD70 million loan
received later in the year, Fitch estimates Tonon's cash position
would have increased to BRL263 million from the actual figure of
BRL39 million in March 31, 2015, and cash to short-term debt
coverage would have improved to 0.84x from 0.12x. On the same
date, total adjusted debt/EBITDAR and net adjusted debt/EBITDAR of
6.4x and 6.3x, respectively, remained at high levels considering
the volatile sugar and ethanol industry.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for Tonon include:
-- Improvement in crushed volumes to 8 million tons in
2015/2016 on higher yields and conclusion of investments in
expansion;
-- Average sugar prices at USD12 cents/pound in 2015/2016,
USD13.5 cents/pound in 2016/2017 and flat at
USD15 cents/pound from 2017/2018 on;
-- Domestic ethanol prices keeping their historical correlation
with international sugar prices.
RATING SENSITIVITIES
Future developments that may, individually or collectively, lead
to a negative rating action include further deterioration of
Tonon's liquidity position or if the company defaults on its
scheduled amortization/interest payments and/or formally files for
bankruptcy protection.
Future developments that may, individually or collectively, lead
to a positive rating action to the 'CCC' category include
improvements in liquidity. Upgrades to higher categories are not
expected in the short term given the maintenance of above-average
leverage ratios and the operational and financial challenges
surrounding the sugar and ethanol sector.
LIQUIDITY
While it has been somewhat alleviated by the receipt of the new
USD70 million loan due 2019 and the postponement of coupon
payments under the USD289 million unsecured bond, Tonon's
liquidity is expected to remain under pressure in upcoming
seasons. The company's main challenge will be to keep rolling
over its maturing obligations with new short-term debt, as long-
term loans for the sugar and ethanol sector have become scarce.
The company does not own land against which to borrow new medium-
or long-term loans, which reduces its refinancing prospects and
makes it dependent on the availability of short-term credit lines.
Tonon's FCF should remain negative in fiscal 2016, even with an
estimated reduction in capital expenditures to BRL220 million
after the end of the capacity expansion. A rebound of
international sugar prices is taking much longer to materialize
than previously projected, as weak currencies further exacerbate
low prices. Domestic ethanol prices are not expected to increase
materially in fiscal 2016.
FULL LIST OF RATING ACTIONS
Tonon Bioenergia S.A.
-- Foreign currency IDR upgraded to 'CC' from 'RD';
-- Local currency IDR upgraded to 'CC' from 'RD'.
Tonon Luxembourg S.A.
-- USD289 million senior unsecured notes, due 2020, assigned
rating of 'CC/RR4';
-- USD11 million senior unsecured notes, due 2020, upgraded to
'CC/RR4' from 'C/RR4'.
-- USD230 million senior secured notes, due 2024, upgraded to
'CC/RR4' from 'C/RR4';
PETROLEO BRASILEIRO: Camargo Correa to Pay BRL104MM Fine
--------------------------------------------------------
EFE News reports that Camargo Correa Construcoes e Participacoes
has admitted its role in a massive scheme to overcharge state-
controlled oil company Petroleo Brasileiro S.A. and agreed to
cooperate in the investigation as part of a leniency deal, anti-
trust agency Cade said.
In exchange for assurances that an administrative probe will be
dropped, as well as other benefits, Camargo Correa agreed to pay a
BRL104 million (US$29.7 million) fine, the biggest agreed with
Cade thus far by a company accused of colluding to inflate the
cost of Petrobras contracts, according to EFE.
In a statement, Camargo Correa said it will cooperate in the
investigation, provide documents that incriminate other companies
and offer information about how the bid-rigging cartel operated,
the report notes.
Two other builders accused of skimming money from Petrobras, Setal
Engenharia and SOG Oleo e Gas, signed leniency deals with the
anti-trust agency in March, the report relates.
The companies that have admitted guilt say Brazil's largest
construction and engineering firms -- Andrade Gutierrez,
Odebrecht, Queiroz Galvao and UTC Engenharia -- also formed part
of the cartel, the report notes.
The wide-ranging scandal involves allegations that Petrobras
suppliers overcharged the oil giant for contracts, 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, the report discloses.
Petrobras, which earlier this year announced plans to slash its
investment budget and divest assets, in April wrote off nearly $2
billion in losses stemming from inflated contracts and other costs
related to the corruption scheme, which ran from 2004 to 2012, the
report says.
Dozens of business executives and politicians, many of them from
the governing coalition, have been implicated in the graft
scandal, the report notes.
The report discloses that those executives include Camargo
Correa's former CEO, Dalton dos Santos Avancini; the company's ex-
vice president, Eduardo Hermelio Leite; and its erstwhile
chairman, Joao Ricardo Auler, who were convicted last month on
charges of bribery, money laundering and submitting fraudulent
bids for contracts from Petrobras.
Avancini and Leite each received a sentence of 15 years and 10
months of house arrest as part of a plea deal, the report relays.
Auler, who did not agree to a plea deal with prosecutors, was
sentenced to nine years and six months in prison, the report adds.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 13, 2015, Moody's Investors Service affirmed all ratings for
Petroleo Brasileiro S.A. (Petrobras) and ratings based on
Petrobras' guarantee. This includes the affirmation of Petrobras'
Ba2 senior unsecured debt rating. The company's b2 baseline
credit assessment (BCA) is unchanged. The outlook is stable for
Petrobras and its guaranteed debt.
==========================
C A Y M A N I S L A N D S
==========================
CHAUMET INVESTMENTS: Creditors' Proofs of Debt Due Sept. 16
-----------------------------------------------------------
The creditors of Chaumet Investments Limited are required to file
their proofs of debt by Sept. 16, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
CHAUMET INVESTMENTS II: Creditors' Proofs of Debt Due Sept. 16
--------------------------------------------------------------
The creditors of Chaumet Investments II Limited are required to
file their proofs of debt by Sept. 16, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
CHRONOGRAPH LIMITED: Creditors' Proofs of Debt Due Sept. 16
-----------------------------------------------------------
The creditors of Chronograph Limited are required to file their
proofs of debt by Sept. 16, 2015, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
EBEL EQUITY: Creditors' Proofs of Debt Due Sept. 16
---------------------------------------------------
The creditors of Ebel Equity Limited are required to file their
proofs of debt by Sept. 16, 2015, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
EQUITY ESA: Creditors' Proofs of Debt Due Sept. 16
--------------------------------------------------
The creditors of Equity Esa Limited are required to file their
proofs of debt by Sept. 16, 2015, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
LUXURY HOLDINGS: Creditors' Proofs of Debt Due Sept. 16
-------------------------------------------------------
The creditors of Luxury Holdings Limited are required to file
their proofs of debt by Sept. 16, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
TIMEPIECE HOLDINGS: Creditors' Proofs of Debt Due Sept. 16
----------------------------------------------------------
The creditors of Timepiece Holdings II Limited are required to
file their proofs of debt by Sept. 16, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
TIMEPIECE HOLDINGS III: Creditors' Proofs of Debt Due Sept. 16
--------------------------------------------------------------
The creditors of Timepiece Holdings III Limited are required to
file their proofs of debt by Sept. 16, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
TIMEPIECE LTD: Creditors' Proofs of Debt Due Sept. 16
-----------------------------------------------------
The creditors of Timepiece Ltd. are required to file their proofs
of debt by Sept. 16, 2015, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
TIMEPIECE NOTE: Creditors' Proofs of Debt Due Sept. 16
------------------------------------------------------
The creditors of Timepiece Note Holdings Limited are required to
file their proofs of debt by Sept. 16, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 23, 2015.
The company's liquidator is:
Mufeed Rajab
c/o Dominique Massias
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
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D O M I N I C A N R E P U B L I C
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GLENCORE DOMINICAN: Ops Reveals Buyer's Profile After Faux Pas
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Dominican Today reports that Falconbridge Dominicana disclosed the
profile of Americano Nickel Limited (American Nickel), calling it
a holding company specialized in mining.
It said the holding company has focused on the exploration and
extraction of ferronickel deposits in the Dominican Republic and
the Americas, according to Dominican Today.
American Nickel acquired 100% stake in Glencore Canada Corporation
Falconbridge Dominicana (Falcondo) on August 13, prompting
questions since the company didn't appear in the Web, the report
notes.
"American Nickel is a subsidiary of Global Special Opportunities
Ltd. (GSOL), an international investment fund established in
2009," Falcondo said, the report relays.
"The fund has increased its investments portfolio in Europe, the
Americas and Africa since 2009, and s continuously expands its
reach," Falcondo added, notes the report.
* DOMINICAN REPUBLIC: Dam Could Deal With Effects of Drought
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Dominican Today reports that Greater Santo Domingo's low water
reserve revealed by the months-long drought has propelled the
construction of the Haina river dam near Peter Brand township
(south), as priority to alleviate cyclical shortages.
Santo Domingo Water Utility (Caasd) Director Alejandro Montas said
the project would cost US$350 million and be built in two years,
according to Dominican Today.
The report notes that Mr. Montas said the dam would supply some
150 million gallons to the system daily and together with other
projects in the offing could eliminate the deficit during the
yearly dry seasons. "The project, ready for execution, would
produce two megawatts of sustainable energy that would, with an
output of six cubic meters per second. Won arrive on Santo
Domingo by gravity," Mr. Montas added.
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M E X I C O
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CIBANCO SA: Moody's Lowers Rating on Series A Cert. to C(sf)
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Moody's de Mexico S.A. de C.V. has downgraded a Series A
certificates of construction loan securitizations sponsored by
Hipotecaria Su Casita, S.A. de C.V. Sociedad Financiera de Objeto
Multiple E.N.R.. The underlying collateral consists of
construction loans granted to small and medium size homebuilders
in Mexico. The downgrades reflect Moody's reduced recovery
expectation on the affected certificates at its legal final date.
The complete rating action is:
Originator: Hipotecaria Su Casita, S.A. de C.V. Sociedad
Financiera de Objeto Multiple E.N.R.
Servicer: Adamantine Servicios , S.A. de C.V.
Issuer: CIBanco, S.A. Institucion de Banca Multiple, acting solely
as trustee.
-- HSCCICB 06 Series A Certificates: downgraded to C.mx (sf)
from Caa3.mx (Mexican National Scale) and to C (sf) from
Caa3 (sf) (Global Scale, Local Currency).
RATINGS RATIONALE
HSCCICB 06 SERIES A
The HSCCICB 06 Series A's ratings of C.mx (sf) and C (sf) reflect
Moody's expectation that the certificates will recover less than
35% of their outstanding balance by their legal final maturity
date of Sept. 15, 2016.
This recovery expectation for the outstanding Series A balance
considers the sharp deterioration in collections over the past six
months. If Series A principal amortizations over the remaining 13
months are similar to the monthly average of MXN 2,701,816
observed over the past 12 months, it would recover less than 35%
of its outstanding balance. This recovery is consistent with a
rating of C (sf), as described in "Moody's Approach to Rating
Structured Finance Securities in Default," published in November
2009. It is possible that collections will deteriorate further if
fewer resources are allocated towards servicing. Also, recent
interest collections have not been sufficient to fully cover trust
expenses and Series A interest payments, resulting in substantial
negative excess spread (averaging -6.5% annualized over the past
three months and as a percent of total assets). As a result, the
trustee has used principal collections and liquid cash assets to
pay trust expenses and Series A interest, instead of Series A
principal, thereby eroding credit enhancement.
Moody's recovery expectation for Series A also considers the
limited success in recovering amounts on defaulted loans. Given
that nearly all the underlying loans are in default, the servicer
is now focusing on maximizing recoveries via foreclosure
proceedings, deeds-in-lieu of foreclosures or other loss
mitigation measures. As of June 2015, Adamantine had foreclosed
on just 2.5% of the securitized loan balance; it has not yet sold
these foreclosed properties. In contrast, 95% of the pool was in
default with respect to interest or principal. Moody's notes that
Series A benefits from 41% of credit enhancement in the form of
subordination and overcollateralization -- Series A's balance of
MXN 463,598,811 compares to total trust assets of MXN 780,913,608,
including construction loans and 2% of liquid assets. However,
Moody's believes it is increasingly unlikely that an amount
sufficient to pay a considerable portion of Series A will be
recovered by its legal final maturity in about one year.
Primary sources of assumption uncertainty are the level of home
sales in Mexico and in the underlying housing projects included in
the securitized pool, as well as the amount of recoveries in a
foreclosure process. Housing demand can be impacted by regional
macroeconomic factors such as rises in unemployment, and the
availability of home financing, particularly in the middle,
residential and residential plus sectors, where mortgage financing
is not as readily available as it is in the low-income housing
sector. In addition, demand for a particular housing project can
be impacted by factors specific to the project such as the price
of the units, quality of construction, amenities and location,
among others. Moody's will monitor the transaction and any new
information regarding sales and foreclosure proceedings.
The period of time covered in the financial information used to
determine HSCCICB 06 Class A's rating is between September 30,
2006 and June 30, 2015, (source: Collection Reports sent by the
servicer).
Factors that would lead to an upgrade or downgrade of the rating:
With respect to the ratings sensitivity, if Moody's were to
increase its recovery rate assumption on the HSCCICB 06 Series A
certificates to anywhere between 35-65%, instead of the less than
35% that was assumed in today's rating action, Moody's would
likely upgrade the certificates by one notch to Ca.mx (sf) from
C.mx (sf).
Moody's considered the servicer's practices and considers them
adequate.
MEXICO: Foreign Reserves Fall by Nearly $1.4 Billion
----------------------------------------------------
EFE News reports that Mexico's foreign reserves declined by $1.37
billion to $188.34 billion last week, the Bank of Mexico said.
Gold and foreign currency reserves fell in the week ending Aug. 14
mainly due to the daily auctions of dollars without a minimum
price, the central bank said, according to EFE News.
Foreign reserves have fallen by $4.89 billion since the end of
2014, the Bank of Mexico said in a statement obtained by the news
agency.
The M1 money supply, which includes currency, coins and demand
deposits, rose by MXN11.84 billion (about $721 million) to MXN1.08
trillion (some $65.77 billion) last week, the central bank said,
the report notes.
The money supply has increased by MXN17.61 billion ($1.07 billion)
since Jan. 1, adds the report.
MEXICO: Steelmakers Warn of Impact of Yuan's Devaluation
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EFE News reports that the yuan's devaluation artificially lowers
the price of Chinese products in foreign markets and will
adversely affect Mexico's steel industry by increasing imports of
that product from the Asian giant, the Mexican Iron and Steel
Industry Chamber, or Canacero, said.
"The impact on the Mexican economy of (last week's devaluation of
around 4 percent against the dollar) will significantly affect
industries like steel," the chamber said in a press release,
according to EFE News.
The currency move will exacerbate "the problem of steel being
imported under unfair conditions," Canacero added, the report
notes.
Imports of Chinese laminated steel to Mexico had already risen
sharply prior to the recent devaluations of the yuan, rising 112.5
percent between January and June compared with the same period of
2014, the report relays.
That caused Mexico's steel trade deficit to rise to 4.65 million
tons through June 2015, up 55.8 percent from the same period of
2014, the chamber said, the report discloses.
"We need to strengthen current measures and continue to take
action so our domestic producers are not harmed by decisions made
abroad - decisions by governments that adopt policies for the
wellbeing of their own nation," it said, the report notes.
The new currency policy put in place by the People's Bank of China
(central bank), which last Thursday (Aug. 14) lowered the
reference rate around which the yuan can trade to 6.401 per
dollar, "jeopardizes the sovereignty of a strategic sector,"
Canacero said, the report says.
It said the Asian giant is seeking to ensure "a dominant position"
and influence prices "almost unilaterally," adding that the
currency move is a blow to Mexico's productive sector and poses a
"threat (to) more than 70 percent of Mexican exports to the United
States," the report adds.
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P U E R T O R I C O
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CASIANO COMMUNICATIONS: Court Interprets 'Right of First Refusal'
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Judge Brian K. Tester of the United States Bankruptcy Court for
the District of Puerto Rico determined that Encanto Group, LLC's
'right of first refusal' would be extinguished with the full
payment of the amounts owed pursuant to the terms of the Loan
Agreement between Encanto and the debtor Casiano Communications,
Inc.
Encanto and Casiano entered into a Loan Agreement dated November
12, 2014, which stipulated the terms and conditions under which
Encanto would provide postpetition financing for Casiano. Encanto
argued that Casiano conferred the 'right of first refusal' in
exchange for providing postpetition lending "when no other party
would" and is not conditioned on the existence of the outstanding
debt.
Judge Tester explained that the Loan Agreement is first and
foremost a loan document whose primary function is to provide
remedies to Encanto in the event of Casiano's default with regards
to the monies owed, and the 'right of first refusal' clause has no
independent existence once the term of the agreement has expired
and payment has been satisfied.
The case is IN RE: CASIANO COMMUNICATIONS INC DIRECT RESPONSOURCE
INC [CONSOLIDATED DEBTORS], Chapter 11, Debtor(s), CASE NO.
14-08258 (Bankr. D.P.R.).
A full-text copy of Judge Tester's July 29, 2015 opinion and order
is available at http://is.gd/Eejtjwfrom Leagle.com.
PUERTO RICO AQUEDUCT: Sale Pushed as Restructuring Looms
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Michelle Kaske at Bloomberg News reports that Puerto Rico's first
bond issue since the commonwealth defaulted on a debt payment has
been pushed out to Thursday (August 20) at the earliest as
investors evaluate the risk of the island's restructuring plans.
"It's just to give investors time to do their work on the credit,"
said Lyle Fitterer, who helps oversee $38 billion of municipal
securities, including Puerto Rico debt, at Wells Capital
Management in Menomonee Falls, Wisconsin, according to Bloomberg
News. Mr. Fitterer had been in contact with underwriters of the
securities.
The $750 million issue by the Puerto Rico Aqueduct & Sewer
Authority, known as Prasa, had been tentatively scheduled to be
priced Aug. 18, according to a presentation to investors last
week.
Bloomberg News notes that Prasa borrowing is a test of junk-rated
Puerto Rico's ability to access the capital markets after a sister
agency defaulted two weeks ago. The Public Finance Corp. on Aug.
3 paid only a portion of a $58 million principal and interest
payment to investors, Bloomberg News relays. Governor Alejandro
Garcia Padilla said in June the island plans to restructure a $72
billion debt burden that it can no longer afford, Bloomberg News
notes.
Restructuring Impact
Bloomberg News discloses that Prasa's bonds may be sheltered from
the restructuring proposal. Government Development Bank President
Melba Acosta, the island's top debt official, said the bank
doesn't foresee the water agency reorganizing its obligations.
Others say the debt may be affected, Bloomberg News relays.
Standard & Poor's, which rates the utility CCC-, its third-lowest
junk grade, may downgrade the agency because "events could unfold
within the next three months that could expose Prasa to greater
restructuring efforts," Theodore Chapman, an analyst for the
company, wrote in a report, Bloomberg News relates.
Bloomberg News discloses that the water utility is offering 30-
year bonds for a preliminary yield of 9.5 percent, according to
four people familiar with the sale who asked for anonymity because
the deal isn't final. That's about triple the 3.2 percent yield
for benchmark securities. The bonds would carry an 8 percent
coupon, Bloomberg News notes.
The offering is the first sale of long-term debt from the island
since it issued $3.5 billion of general-obligation bonds in March
2014, Bloomberg News adds.
* * *
As reported in the Troubled Company Reporter-Latin America on Aug.
20, 2015, Standard & Poor's Ratings Services assigned its 'CCC-'
rating to Puerto Rico Aqueduct & Sewer Authority (PRASA)'s series
2015A senior-lien revenue bonds. S&P placed the rating and the
'CCC-' rating on PRASA's existing senior-lien revenue debt on
CreditWatch with negative implications. S&P also placed the 'CCC-
' rating on PRASA's debt that is first secured by a lien on the
net revenues of the system but ultimately backed by the
commonwealth on CreditWatch with negative implications. The debt
was issued under a prior resolution that is subordinate to the
senior-lien bonds.
STANDARD REGISTER: Delaware Court Approves Name Change
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At the behest of The Standard Register Company, et al., the U.S.
Bankruptcy Court for the District of Delaware approved the change
of the Debtors' corporate names; and case caption used in the
chapter 11 cases.
The changes will reflect:
Old Company Name New Company Name
---------------- ----------------
The Standard Register Company SRC Liquidation Company
Standard Register Holding Company SR Liquidation Holding Company
Standard Register Technologies, SR Liquidation Technologies,
Inc. Inc.
Standard Register International, SR Liquidation
Inc. International, Inc.
iMedConsent, LLC iMLiquidation, LLC
Standard Register of Puerto Rico SR Liquidation of Puerto
Inc. Rico Inc.
Standard Register Mexico Holding SR Liquidation Mexico
Company Holding Company
Standard Register Holding, S. SR Liquidation Holding, S.
de R.L. de C.V. de R.L. de C.V.
Standard Register de Mexico, SR Liquidation de Mexico, S.
S. de R.L. de C.V. de R.L. de C.V.
Standard Register Servicios, SR Liquidation Servicios, S.
S. de R.L. de C.V. de R.L. de C.V.
Standard Register Technologies SR Liquidation Technologies
Canada ULC Canada ULC
Taylor Corp., one of the U.S.'s largest privately held companies,
on Aug. 3 disclosed that it completed its acquisition of the
assets of Standard Register. The combined company has more than
12,000 employees working in more than 80 companies with operations
in 32 states and nine countries.
The Company filed a motion with to change its corporate and
business names, as required under the asset purchase agreement
between Standard Register and Taylor Corp., to become SRC
Liquidation Co.
Taylor was the successful bidder for Standard Register through a
bankruptcy auction held June 19, 2015.
About Standard Register
Standard Register once provided market-specific insights and a
compelling portfolio of workflow, content and analytics solutions
to address the changing business landscape in healthcare,
financial services, manufacturing and retail markets. The Company
had operations in all U.S. states and Puerto Rico, and once
employed 3,500 full-time employees and 16 part-time employees.
The Standard Register Company and 10 affiliated debtors sought
Chapter 11 protection in Delaware on March 12, 2015, with plans to
launch a sale process where its largest secured lender would serve
as stalking horse bidder in an auction.
The cases are pending before the Honorable Judge Brendan L.
Shannon and are jointly administered under Case No. 15-10541.
The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young
Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery &
Transformation Services U.S., LLC, as restructuring advisors; and
Prime Clerk LLC as claims agent.
The Official Committee of Unsecured Creditors tapped Lowenstein
Sandler LLP as its counsel and Jefferies LLC as its exclusive
investment banker.
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T R I N I D A D & T O B A G O
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TRINIDAD CEMENT: S&P Raises CCR to 'B-' & Removes from Watch Pos.
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Trinidad Cement Limited Group (TCL) to 'B-' from 'CCC',
and removed it from CreditWatch with positive implications. The
outlook is stable. At the same time, S&P assigned its 'B-' issue-
level rating to the company's $200 million senior secured term
loan.
The rating action reflects TCL's successful debt refinancing,
which took place on Aug. 6, 2015. The refinancing improves the
company's debt maturity and liquidity profiles. As part of its
debt restructuring in May 2015, TCL raised a $245 million bridge
loan, due in February 2016. The company refinanced the bridge
loan with a $200 million senior secured term loan, composed of two
tranches: $148.3 million and Trinidad and Tobago dollar (TT$)
329.6 million (about $52 million). It prepaid the remaining $45
million of the bridge loan with cash generated from its operations
during January to July 2015.
The stable outlook reflects S&P's view that TCL will post low
single digit revenue growth and improved EBITDA margins over the
next two years, supported by improved operating efficiencies and
cost savings as part of the technical agreement signed with Cemex.
S&P also expects the company to continue to post positive FOCF
generation because it plans to stabilize its operations and
optimize its plants to reach target operating efficiencies.
A negative rating action is possible if TCL does not achieve its
expected operating efficiencies and costs savings, resulting in
lower than expected operating and financial performance, and/or if
its liquidity deteriorates in the next 12 to 18 months. This
could occur if its EBITDA significantly declines from current
levels, and/or if the company generates negative FOCF, ultimately
resulting in debt to EBITDA above 3.0x in the next two years.
Although unlikely in the short term given the recent
restructuring, S&P could take a positive rating action if the
company significantly increases its scale and scope of operations.
This could also take place if the company successfully operates
under its new structure in the long-term and achieves its
operating and costs savings goals. Although S&P expects the
company to deleverage, it do not believe that its financial risk
profile will improve to "significant" in the next 12 to 18 months.
TRINIDAD & TOBAGO: Ex Gov. Criticized Claims on US$ Shortage
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Trinidad Express reports that former Central Bank Governor Dr.
Euric Bobb has criticized Trade Minister Vasant Bharath for his
comments that the shortage of United States dollars will "clear up
after the election".
Mr. Bobb, in a letter to the editor said the difficulty being
experienced in accessing foreign exchange was a result of poor
choices by Government, according to Trinidad Express.
Mr. Bharath, who delivered the feature address at exporTT's
InbuyTT launch at the Hyatt Regency (Trinidad) Hotel in Port of
Spain, said during the question and answer session that Central
Bank governor Jwala Rambarran was "due to pump about US$100
million into the system," the report notes.
***********
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.
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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 * * *