/raid1/www/Hosts/bankrupt/TCRLA_Public/150917.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, September 17, 2015, Vol. 16, No. 184
Headlines
A R G E N T I N A
NEUQUEN: Fitch Assigns 'CCC' Issuer Default Rating
B A H A M A S
BAHA MAR: Creditors Win Dismissal of Chapter 11 Cases
B E R M U D A
WATFORD RE: A.M. Best Affirms 'bb' Issue Ratings on $225M Shares
B R A Z I L
GENERAL SHOPPING: Fitch Lowers IDR to 'CCC' & Puts on Watch Neg.
HYPERMARCAS SA: Fitch Affirms 'BB+' IDR, Outlook Positive
RASSINI SAB: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Stable
C A Y M A N I S L A N D S
AAA MAC 53: Creditors' Proofs of Debt Due Sept. 28
FB TOP: Commences Liquidation Proceedings
GUANGCHENG FUND: Creditors' Proofs of Debt Due Sept. 21
HOLBORN FUNDING: Creditors' Proofs of Debt Due Sept. 30
JABCAP EVENT: Creditors' Proofs of Debt Due Oct. 1
JABCAP EVENT MASTER: Creditors' Proofs of Debt Due Oct. 1
ODEBRECHT OFFSHORE: Fitch Lowers Rating on Sr. Sec. Notes to 'B+'
RFC AIRCRAFT: Placed Under Voluntary Wind-Up
ROARING FORK MASTER: Creditors' Proofs of Debt Due Sept. 30
ROARING FORK OFFSHORE: Creditors' Proofs of Debt Due Sept. 30
STORES INVESTMENTS: Creditors' Proofs of Debt Due Sept. 30
STORES OVERSEAS: Creditors' Proofs of Debt Due Sept. 30
TWO OCEAN: Creditors' Proofs of Debt Due Sept. 28
G U Y A N A
PRECISION WOODWORKING: City Locks Down Reserve, Breaks Court Order
T R I N I D A D A N D T O B A G O
TRINIDAD AND TOBAGO: New Gov't. Faces Tough Economic Times Ahead
V I R G I N I S L A N D S
HOVENSA OIL: Placed in Bankruptcy by Owners
X X X X X X X X X
* World Bank Warns of Possible Financial Market Turbulence
- - - - -
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A R G E N T I N A
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NEUQUEN: Fitch Assigns 'CCC' Issuer Default Rating
--------------------------------------------------
Fitch Ratings has assigned the Province of Neuquen a long-term
foreign and local currency Issuer Default Rating of 'CCC' and an
expected foreign currency long-term rating of 'CCC(exp)' to
Neuquen's forthcoming bond. The ratings of Neuquen and the
expected ratings of the bond are at the same level as the
sovereign ceiling for Argentina.
The bond will be issued for up to USD350 million and will be
denominated in U.S. dollars. It will accrue a fixed interest rate
according to market conditions and payable on a quarterly basis.
The maturity is expected to be 12 years, with a grace period of
four years. The Province shall make a fiduciary assignment to the
Argentine Collateral Agent of 100% of the royalties and
extraordinary canons of gas production, payable to the Province by
the Dedicated Concessionaires. According to Fitch calculations,
the expected gas royalties and extraordinary canons affected for
the bond's debt payment would provide adequate debt coverages,
even in a conservative scenario.
Pursuant to Provincial Law No. 2952, which authorized the issuance
of the notes, the Province will use the net proceeds of the notes
after deducting commissions, fees and expenses payable by the
province to make amortization payments of certain public
indebtedness of the province maturing on or after Jan. 1, 2015.
The Indenture and the notes will be governed by the laws of the
State of New York.
The events of default include: Failure to pay debt service for a
period of 15 days, debt service reserve account not fully funded
in accordance with the schedule, default of the provincial general
government debt, royalties' coverage below 1.25, among others.
KEY RATING DRIVERS
Neuquen has a short medium term maturity debt profile, with a
constant need of refinancing. However, following the bond issue,
the province is expected to increase the average life of the debt
to 7.5 years from the present 3.6 years.
The province expects a greater deterioration in its operating
balance due to a higher growth in operating expenses that is not
being accompanied by an increase of revenue. This determines
important financial needs which are estimated at approximately
ARS1.7 billion through year-end, having an increased refinancing
risk. The proceeds of the new bond, as well as the authorization
of debt exchange, will alleviate liquidity pressure.
Fiscal performance has been satisfactory but it is expected to
deteriorate given the reduced price of oil, which will lead to
lower expected royalties, and the recent sharp increases in
operating expenditure in personnel costs in excess of the
inflation ratio. Neuquen recorded very volatile and on average,
weak operating margins in the period 2010-2014. During 2014, the
province registered a significant improvement in its operating
performance relative to 2013 (10% versus 4.3%), Fitch expects
operating margins to turn negative in 2015 (to -1.1%) but pick up
again to a positive 0.2% in 2017. The consolidation of future
positive operating balances will depend on Neuquen's expenditure
control. Operating margins in the first semester of 2015
registered a significant deterioration compared with the same
period of 2014 (-1.8% vs. 18.7%). The negative trend is expected
to remain at year-end 2015.
Neuquen is characterized by having a fiscal autonomy above average
which is a positive ratings factor. It has a significant
percentage of own revenues in total operating revenue (70.8% in
2014 versus 41% for the all the Argentinian provinces excluding
the City of Buenos Aires). This is explained by a higher share of
provincial tax on gross income and income of hydrocarbon royalty
which are imposed on oil and gas production. However, the
province is also limited due to its great economic concentration,
and also because the oil and gas sectors are highly regulated by
the national government in Argentina.
Given the importance of the hydrocarbon sector in Neuquen, the
recent change to its policy nationwide, which results in a
positive expectation of the sector, puts the province in a very
good position to strengthen its regional economy and thus have a
positive impact in provincial finances in the medium term.
RATING SENSITIVITIES
A change in the sovereign ceiling could result in a change in the
same direction in the province's ratings.
The final rating of Neuquen's new bond is contingent upon the
receipt of final documents conforming to information already
received. A rating action on the bond would be triggered in the
event of a rating action on the issuer.
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B A H A M A S
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BAHA MAR: Creditors Win Dismissal of Chapter 11 Cases
-----------------------------------------------------
Judge Kevin Carey of the U.S. Bankruptcy Court for the District of
Delaware dismissed the Chapter 11 case of Baha Mar Ltd.
Stephanie Gleason, writing for Dow Jones' Daily Bankruptcy Review,
reported that Judge Carey said he "perceived no greater good"
would come from allowing the case to continue in the U.S. In his
opinion, the judge said the bankruptcy filing of Baha Mar, which
is the owner and developer of a stalled $3.5 billion resort in the
Bahamas, "is truly an international case" and acknowledged the
deep economic interest of the Bahamian government in the resort.
Peter Hall at Bankruptcy Law360 reported that Judge Carey agreed
with creditors who say the parties expected insolvency proceedings
would take place in the Bahamas, where the project is located.
The Court granted motions by creditors CCA Bahamas Ltd. and the
Export-Import Bank of China.
About Baha Mar Enterprises
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. The Committee tapped Cooley LLP as its lead counsel,
and Whiteford, Taylor & Preston LLC as its Delaware counsel.
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B E R M U D A
=============
WATFORD RE: A.M. Best Affirms 'bb' Issue Ratings on $225M Shares
----------------------------------------------------------------
A.M. Best Co. has affirmed the financial strength rating of A-
(Excellent) and the issuer credit rating (ICR) of "a-" of Watford
Re Ltd. (Watford), as well as the ICR of "bbb-" of Watford
Holdings Ltd. Both companies are domiciled in Hamilton, Bermuda.
Concurrently, A.M. Best has affirmed the issue ratings of "bb" on
the $225 million 8.5% cumulative preference shares of Watford
Holdings Ltd. The outlook for all ratings is stable.
The ratings are based on Watford's strong risk-adjusted
capitalization, experienced underwriting led by Arch Underwriters
Ltd., a wholly owned subsidiary of Arch Capital Group Ltd.,
leading investment acumen of Highbridge Principal Strategies, LLC
(HPS) and Watford's broad-based business plan. Partially
offsetting these positive rating factors are the inherent risks
associated with a start-up company and the risks associated with a
leveraged investment strategy, although leverage employed to date
has been well under A.M. Best's tolerance. In addition, the
competitive market conditions in the reinsurance sector may
challenge the execution of the business plan.
A.M. Best believes that the underwriting risk coupled with the
leveraged investment strategy creates an elevated risk profile
that could expose Watford on the asset and the liability sides of
the balance sheet. However, the skilled underwriting of Arch
Capital Group Ltd. and the experienced investment acumen of HPS,
along with cash flows produced by Watford's credit investment
strategy, will help manage these risks.
Watford's assets are managed by HPS, a subsidiary of Highbridge
Capital Management, LLC, a New York-based, SEC-registered
investment adviser. Watford's assets are not comingled with any
HPS-managed funds with other investors of HPS.
Key rating factors that could result in positive rating actions
would be Watford meeting or exceeding its business plan over the
long term, which includes consistently strong operating results
while maintaining strong risk-adjusted capitalization. Negative
rating actions could occur if Watford operating performance is
weak or inconsistent, if the company experiences large
underwriting or investing losses or if risk-adjusted
capitalization becomes strained.
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B R A Z I L
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GENERAL SHOPPING: Fitch Lowers IDR to 'CCC' & Puts on Watch Neg.
----------------------------------------------------------------
Fitch Ratings has downgraded the ratings of General Shopping
Brasil S.A. (GSB) as well as those of its subsidiaries.
In addition, Fitch has assigned 'RR2' and 'RR5' Recovery Ratings
to GSB's USD250 million perpetual notes and USD150 million
subordinated perpetual notes, respectively.
The ratings have been placed on Rating Watch Negative.
The downgrades reflect GSB's deterioration in its financial
leverage and capacity to service interest expense. The Negative
Watch reflects the expectation that GSB's credit profile
deterioration will continue during the second half of 2015 (2H15),
putting pressure on its liquidity. The Negative Watch also
incorporates the view that GSB entering into a debt restructuring
process is likely to occur in the near future.
KEY RATING DRIVERS
High Leverage Driven by FX Exposure:
The company's high financial leverage is expected to further
deteriorate during 2H15 driven by its foreign exchange (FX)
exposure. GSB's last 12-month period ended on June 30, 2015, (LTM
June 2015) with EBITDA of BRL179 million, and total debt of
BRL1.9 billion. GSB had total net debt-to-EBITDA of 9.4x as of
June 30, 2015. All of the company's cash flow- measured as EBITDA
-- is generated in local currency, Brazilian reais, while
approximately 54% of its total debt is denominated in U.S.
dollars. The Brazilian local currency depreciated approximately
75% against the U.S. dollar during June 2014 to September 2015.
With no reduction in its total debt and considering FX trends,
GBS's net leverage is forecast to reach around 11.0 x by the end
of 3Q15.
Weakening Capacity to Cover Interest Expenses:
Fitch views GSB's capital structure as untenable, as its high
leverage has resulted in the weakening of the company's capacity
to service its debt (i.e. principal and interest expenses). GSB's
interest expense is forecasted to continue to increase, following
FX trends, while cash flow generation remains flat. Interest
expenses were BRL189 million during LTM June 2015, while interest
coverage (EBITDA/gross interest expenses ratio) was 1.0x. With no
change in the company's debt structure, GBS's interest expense
coverage is expected to be around 0.65x during the next 12 months
ended June 2016. In this situation, the company will have to use
its ready available cash or rely on financing from third parties
and its access to credit. GSB had a cash position and short-term
debt of BRL222 million and BRL141 million, respectively, as of
June 30, 2015.
Debt Restructuring Scenario Likely:
GSB's recent actions and announcements indicate that a debt
restructuring process is likely to occur in the near future. On
Sept. 8, 2015, the company exercised its right to defer the
payment of interest under its USD150 million 12% perpetual
subordinated notes. The interest payment deferral does not
constitute an event of default under the indenture, and points to
GSB's choice to preserve liquidity in this stressful environment.
In addition, GSB announced that it plans to engage in certain
transactions targeting at reducing its consolidated U.S. dollar-
denominated debt. These transactions may include launching a
tender offer for up to a portion of its USD250 million 10.00%
perpetual notes.
The company is in the process of securing appropriate financing
through the issuance of debt and/or equity to fund the potential
tender offer. If the tender offer is launched, Fitch would
classify it as a distressed debt exchange (DDE) if both of the
following conditions apply: the restructuring imposes a material
reduction in terms compared with the original contractual terms;
and the restructuring or exchange is conducted in order to avoid
bankruptcy, similar insolvency or intervention proceedings or a
traditional payment default.
Quality Assets and Subordination Incorporated in Debt Recovery
Prospects:
The company' total debt consists primarily of BRL864.4 million in
secured local-currency debt, with the rest being the senior
perpetual notes (USD250 million) and the subordinated perpetual
notes (USD150 million). As of June 30, 2015, GSB's total assets
were valued at an estimated BRL2.7 billion (approximately USD871
million), with encumbered and unencumbered assets representing
approximately 64% and 36%, respectively, of the total. The 'RR2'
recovery rating for the USD250 million senior perpetual notes
reflects above-average recovery prospects in the event of default,
the unencumbered assets-to-unsecured debt - considering only this
security class - is estimated at 1.0x. The 'RR5' recovery rating
for the USD150 million subordinated perpetual notes reflects poor
recovery prospects in the event of default. The subordinated
perpetual notes are subordinate to all senior creditors.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for GSB's ratings
include:
-- Total net leverage consistently above 11.0x by Dec. 31,
2015;
-- Interest coverage (EBITDA/gross interest expenses)
consistently below 0.75x during 2015;
-- Negative free cash flow generation during 2015.
RATING SENSITIVITIES
These factors may have a negative impact on GSB's ratings:
Future developments that may, individually or collectively, lead
to a negative rating action include further deterioration of GSB's
liquidity position, execution of a distressed debt exchange; and,
if the company defaults on its scheduled amortization/interest
payments and/or formally files for bankruptcy protection.
The following factors may have a positive impact on GSB's ratings:
Future developments that may, individually or collectively, lead
to a positive rating action include material improvement in the
company's liquidity and financial leverage through some
combination of the following actions: equity injection, asset
sales with limited impact on cash flow generation, and lower FX
exposure.
LIQUIDITY
Company liquidity is under pressure as GSB's high leverage has
resulted in declining interest coverage. This is expected to
intensify during 2H15 considering the current trend in Brazilian
reais against the U.S. dollar and GSB's high FX exposure. GBS has
a cash position and short-term debt of BRL222 million and BRL141
million, respectively, and BRL970 million (USD312 million) in
unencumbered assets as of June 30, 2015.
FULL LIST OF RATING ACTIONS
Fitch has downgraded these ratings, and placed them on a Negative
Rating Watch
General Shopping Brasil S.A. (GSB):
-- Foreign currency Issuer Default Rating (IDR) to 'CCC' from
'BB-';
-- Local currency IDR to 'CCC' from 'BB-';
-- National Scale rating to 'CCC(bra)' from 'A-(bra)'.
General Shopping Finance Limited (GSF):
-- USD250 million perpetual notes to 'B-/RR2' from 'BB-'.
General Shopping Investment Limited (GSI):
-- USD150 million subordinated perpetual notes to 'CCC-/RR5'
from 'B'.
HYPERMARCAS SA: Fitch Affirms 'BB+' IDR, Outlook Positive
---------------------------------------------------------
Fitch Ratings has affirmed the Foreign and Local Currency Issuer
Default Ratings (IDRs) of Hypermarcas S.A. at 'BB+' and its
National Scale Long-term ratings at 'AA(bra)'. The Rating Outlook
remains Positive.
The maintenance of the Positive Outlook reflects Fitch expectation
that Hypermarcas should succeed in lowering its net leverage ratio
to approximately 2x in the next 18-24 months. The changes in the
company's business strategy have pressured its internal cash flow
generation over the last few years and slowed this process. Going
forward, a more steady strategy should finally be achieved and a
likely more solid ability to generate robust free cash flow (FCF)
is expected.
KEY RATING DRIVERS
Hypermarcas' ratings reflect its leading position in the
competitive Brazilian pharmaceutical and consumer market, the
strength and diversification of its brands and the resilience of
its product portfolio. The company's low ticket and less
discretionary consumer products supports the defensive nature of
its portfolio and is a key factor supporting its business
fundamentals in a sluggish macroeconomic scenario. The ratings
also incorporate Hypermarcas' moderate leverage and robust
liquidity position.
Strong Business Position
Hypermarcas has one of the largest and most diversified consumer
products portfolios in Brazil, focusing on the pharmaceutical,
beauty and personal care segments. The company's strategy
includes capturing synergies through the integration of its pharma
and consumer businesses into a lean cost platform in terms of
packaging, distribution, advertising and marketing. Currently,
the company's pharma segment accounts for 55% of revenues, while
the consumer segment accounts for 45% of revenues. The pharma
business is by far the most profitable segment, accounting for
approximately 68% of gross profit. The resilience of Hypermarcas'
business is evidenced by the solid growth of its operations during
2015, in high single digits despite the economic recession in
Brazil.
Recurring Changes in Business Strategy Adds Volatility to Cash
Flow from Operations
Hypermarcas' recent strategy of bolstering market-share and
increasing demand through its lower value-added products portfolio
has limited operating margin improvements. It has also resulted
in the need for high inventory levels and weaker sales terms,
which has increased working capital requirements and pressured
cash flow from operations. During the last 12 months (LTM) ended
June 30, 2015, Hypermarcas' EBITDA reached BRL1.14 billion, a
modest increase from BRL1.1 billion in 2014 and BRL1 billion in
2013. The company's EBITDA margin remained relatively flat at
23.1%.
Limited FCF Expansion; Improvement Expected
During the LTM ended June 30, 2015, Hypermarcas' funds from
operations were BRL461 million, while CFFO generation was quite
poor at only BRL69 million. CFFO was pressured by BRL391 million
of working capital needs and BRL371 million of interests paid. As
a result, in the same period free cash flow was negative by BRL120
million. These figures compare negatively with CFFO of BRL267
million and positive FCF of BRL89 million during 2014. Going
forward, Fitch expects Hypermarcas to maintain a strategy focused
on market-share. For 2015, Fitch projects that the company will
generate about BRL1.2 billion of EBITDA and BRL263 million of
CFFO, resulting in BRL65 million of FCF. For 2016, the agency
expects these figures to improve as a result of lower working
capital needs, allowing for FCF of around BRL100 million.
Deleveraging Trend Still Expected
Hypermarcas' poor CFFO generation was also associated with higher
interest rates. As of the LTM ended June 30, 2015, the company's
net debt/EBITDA ratio was 3x, which is below the average of 3.5x
in the period 2011-2014, but above Fitch's expectation to reach
close to 2x during 2015. Net leverage is expected to reach 2.6x
at the end of 2015 and 2.3x by 2016. In Fitch's view,
Hypermarcas' creditors could benefit from a potential asset sale
of the disposable products segment, which could also accelerate
the deleveraging trend if the company uses the resources to
amortize debt.
KEY ASSUMPTIONS
-- Revenue growth in the high single digit range in 2015, and
remaining above 6% in the next three years,
-- EBITDA margin decline to around 22% due to inflation, weaker
product portfolio and the impact of the strong U.S. dollar
on costs;
-- Improvements in working capital needs, declining to around
5% of net revenues;
-- BRL180 million of maintenance capex going forward;
-- Dividends of 25% Net Income only from 2017 on;
-- No acquisitions or asset sale.
RATING SENSITIVITIES
Positive: Future developments that may, individually or
collectively, lead to a positive rating action include:
-- Sale of the disposable products segment;
-- Operating margins consistently around 23%;
-- Solid recovery in CFFO generation (above 8% CFFO margin);
-- Positive FCF generation above BRL130 million;
-- Net adjusted leverage below 2.2x, ona consistent basis;
-- Maintenance of strong liquidity position, with cash/short-
term debt above 1x on a consistent basis.
Negative: Future developments that may, individually or
collectively, lead to a negative rating action:
-- EBITDA margins falling and remaining below 20%;
-- Net adjusted leverage above 3.5x;
-- Deterioration of sound liquidity of short-term debt, with
cash/short-term debt below 1x on consistent basis, leading
to refinancing risk exposure;
-- Large M&A acquisition that moves the company's leverage
beyond 3.5x, on a sustainable basis.
LIQUIDITY
Hypermarcas has a track record of keeping strong cash balances,
with cash covering short-term debt by an average 1.7x during the
last five years. As of June, 30 2015, the company had BRL5
billion of debt, of which BRL1.7 billion is due in the short term,
while cash and marketable securities was solid at BRL1.6 billion.
This high amount of debt coming due in the short term includes the
first series of the private debentures (BRL831 million), and is
due during October. The company counts on additional liquidity
coming from two stand-by credit facilities that have undrawn
resources of BRL970 million.
Fitch expects Hypermarcas to execute the call option on its 2021
bond during April 2016. The company has USD323 million of
outstanding balance on the USD750 million bond and should fund
this repurchase through local banking debt. The company has the
strategy to reduce its currency mismatch risk, as about 100% of
its revenues are generated domestically. To mitigate FX exposure,
the company operates with hedge instruments for its debt-service
payments in the next 12 months and for total debt principal and
suppliers.
FULL LIST OF RATING ACTIONS
Fitch has affirmed these ratings:
-- Long-term foreign currency Issuer Default Rating (IDR) at
'BB+';
-- Long-term local currency IDR at 'BB+';
-- Senior unsecured notes due in 2021 at 'BB+';
-- Long-term National Scale rating at 'AA(bra)';
-- Third debentures issuance at 'AA(bra)';
The Rating Outlook remains Positive.
RASSINI SAB: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Stable
------------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its
'BB-' corporate credit rating on Rassini S.A.B. de C.V. (Rassini;
formerly SANLUIS Rassini S.A. de C.V.). The outlook on the
corporate credit rating remains stable.
In April 2015, the company inaugurated its plant expansion in
Puebla. Thanks to this investment, Rassini will be able to
produce about 14 million brakes discs annually, a 40% capacity
increase. In addition, the company recently completed the
construction of its discs plant in Flint, Michigan, which will
produce about 2.5 million discs annually. This capacity expansion
meets the increasing demand among Rassini's customers amid a
stronger auto parts market in North America. On the other hand,
auto sales in Brazil are likely to drop about 20% and reach 2.7
million units sales for 2015.
The stable outlook reflects S&P's view that Rassini will continue
to generate an EBITDA margin around 14% and its revenue to grow in
the low-double digit area over the next 12 months mainly due to
its ability to negotiate intermediate-term contracts with more
favorable conditions with OEMs and its recent expansion of its
Puebla plant. S&P expects that the recovery in the U.S. auto
market will continue to offset the company's subpar operations in
Brazil. S&P also expects Rassini to maintain its debt to EBITDA
in the range of 1.5x-2.0x and its FOCF to debt at 20%-25%.
S&P could downgrade Rassini if market conditions deteriorate or
the company engages in a more aggressive financial strategy, which
weakens operating performance and financial metrics. Such a
scenario would contemplate a debt to EBITDA above 3.5x and FOCF to
debt of below 15%.
Although unlikely in the short term, S&P could upgrade Rassini if
it improves its business risk profile by expanding its geographic
footprint and its product portfolio. In this scenario, the
company would also have to report stronger-than-expected operating
margins. In addition, Rassini would have to maintain its debt to
EBITDA consistently below 2.0x and its FOCF to debt above 25%.
==========================
C A Y M A N I S L A N D S
==========================
AAA MAC 53: Creditors' Proofs of Debt Due Sept. 28
--------------------------------------------------
The creditors of AAA MAC 53 Ltd. are required to file their proofs
of debt by Sept. 28, 2015, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Aug. 18, 2015.
The company's liquidator is:
Keiran Hutchison
c/o Steve Bull
Telephone: (345) 814 9060
Facsimile: (345) 814 8529
Ernst & Young Ltd, 62 Forum Lane Camana Bay
P.O. Box 510 Grand Cayman, KY1-1106
Cayman Islands
FB TOP: Commences Liquidation Proceedings
-----------------------------------------
On Aug. 14, 2015, the sole shareholder of FB Top Select China
Columbus 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:
Gonzalo Jalles
Telephone: (345) 949 8599
Harneys, Harbour Place
103 South Church Street
P.O. Box 10240 Grand Cayman KY1-1002
Cayman Islands
GUANGCHENG FUND: Creditors' Proofs of Debt Due Sept. 21
-------------------------------------------------------
The creditors of Guangcheng Fund Management Co., Ltd. are required
to file their proofs of debt by Sept. 21, 2015, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Aug. 17, 2015.
The company's liquidator is:
Richard Fear
c/o Ryan Charles
Telephone: (345) 814 7364
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
HOLBORN FUNDING: Creditors' Proofs of Debt Due Sept. 30
-------------------------------------------------------
The creditors of Holborn Funding Limited are required to file
their proofs of debt by Sept. 30, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 14, 2015.
The company's liquidator is:
Stuart Sybersma
c/o Marcin Czarnocki
Deloitte & Touche
Citrus Grove Building, 4th Floor
Goring Avenue
George Town KY1-1109
Cayman Islands
Telephone: +1 (345) 814 2228
Facsimile: +1 (345) 949 8258
JABCAP EVENT: Creditors' Proofs of Debt Due Oct. 1
--------------------------------------------------
The creditors of Jabcap Event Driven Fund Limited are required to
file their proofs of debt by Oct. 1, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 18, 2015.
The company's liquidator is:
Highwater Limited
c/o Nicole Gagliano
Telephone: (345) 943 2295
Facsimile: (345) 943 2294
Grand Pavilion Commercial Centre, 1st Floor
802 West Bay Road
P.O. Box 31855, Grand Cayman, KY1-1207
Cayman Islands
JABCAP EVENT MASTER: Creditors' Proofs of Debt Due Oct. 1
---------------------------------------------------------
The creditors of Jabcap Event Driven Master Fund Limited are
required to file their proofs of debt by Oct. 1, 2015, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Aug. 18, 2015.
The company's liquidator is:
Highwater Limited
c/o Nicole Gagliano
Telephone: (345) 943 2295
Facsimile: (345) 943 2294
Grand Pavilion Commercial Centre, 1st Floor
802 West Bay Road
P.O. Box 31855, Grand Cayman, KY1-1207
Cayman Islands
ODEBRECHT OFFSHORE: Fitch Lowers Rating on Sr. Sec. Notes to 'B+'
-----------------------------------------------------------------
Fitch Ratings downgrades the senior secured notes issued by
Odebrecht Offshore Drilling Finance Ltd. (OODFL) to 'B+' from 'BB'
and the senior secured notes issued by Odebrecht Drilling Norbe
VIII/IX Ltd. to 'BB-' from 'BB'. In addition, Fitch places the
ratings of both transactions on Rating Watch Negative.
Fitch's downgrade reflects the following: (i) the impact of
Petrobras' reduction in capital expenditures (capex) on its
willingness to honour existing contracts upon a performance breach
or bankruptcy of the operator, and (ii) the transactions'
increased reliance on the sponsor which may continue suffering
from decreasing revenues due to either poor assets' performance or
non-operation of one of the rigs.
The Negative Watch reflects the announcement by Petroleo
Brasileiro S.A. (Petrobras) of its intention to terminate the
contract for Tay IV and its potential direct impact on OODFL, and
Odebrecht Oleo e Gas S.A. (OOG; oil and gas arm of Brazilian-based
Odebrecht Group) as sponsor to both transactions.
The rating differentiation between the Odebrecht-sponsored
transactions reflects differing performance and degree of reliance
on the sponsor.
KEY RATING DRIVERS
-- Impact of Petrobras Capex Reduction on its Willingness to
Honour Existing Contracts
Petrobras' 37% reduction in capex investments over the next five
years has led the company to prioritize the most strategic and
best operating assets within the chartered fleet. As a result,
Petrobras may be inclined to cancel or restructure the contracts
of poorly performing, less strategic offshore assets, particularly
those with contracted day rates above current market rates.
Petrobras' stated intention to terminate the contract for Tay IV
as a result of extended downtime (more than 60 days) by the
ultradeepwater (UDW) semi-submersible. While in the past,
Petrobras may have showed a level of tolerance related to
performance issues, this action signals the changing dynamics with
the sector.
OODFL's Weak Performance and Heightened Reliance on Sponsor
Support
Certain rigs related to OODFL have underperformed, resulting in
reduced collections, lower debt service coverage ratios (DSCRs),
and increased dependence on cash reserves and sponsor support.
Potential cancelation of the Tay IV contract could further weaken
OODFL's performance and even result in a technical event of
default if not replaced within 90 days. In addition, continued
depletion of cash reserves will increase the size of the balloon
payment, heightening refinancing risk.
In contrast, Norbe VIII and Norbe IX, the assets within Odebrecht
Drilling Norbe VIII/IX Ltd, have performed well, enabling the
transaction to pay expenses and timely debt service from cash flow
generated by contract payments.
Positively, OOG was asked by Petrobras to re-register as a
qualified oil service provider. While the CGU Lava-Jato
investigations have yet to conclude and OOG is still temporarily
banned from entering new contracts, this development is a good
indication that the company may be soon permitted to enter into
new contracts with Petrobras.
Potential Termination of Tay IV Contract
The current ratings are supported by ongoing cashflows from
payments under the long-term agreements and cash reserves or
sponsor support if necessary. The announcement by Petrobras of
their intention to terminate the Tay IV contract increases risk in
this transaction; if the underlying charter and service agreements
is terminated or restructured, the transaction could be exposed to
depressed market conditions.
Although termination of the Tay IV charter and services agreements
is a possibility, the contracts could be reinstated or the terms
of the existing contracts may be renegotiated. Transaction
features and available liquidity may guarantee timely payment of
debt service and still support a decrease in dayrates, but
ultimately the transaction may need the support of the sponsor if
there is any negative impact on the economics of the contracts.
RATING SENSITIVITIES
The ratings are sensitive to changes in the credit quality of
Petrobras as offtaker, implications of the ongoing investigations
on the Odebrecht Group and resolution by the Office of the
Controller General of the Union (Controladoria Geral da Uniao -
CGU) of the temporary ban review, changes in the credit quality of
Odebrecht, and the operating performance of the underlying assets.
Additionally, the ratings are sensitive to changes in the
Brazilian oil and gas industry dynamics and on Fitch's perception
of Petrobras' willingness to honour the existing conditions under
the contracts.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation
to this rating action.
TRANSACTION SUMMARY
The Odebrecht Drilling Norbe VIII/IX Ltd notes are backed by the
flows related to the charter and services agreements signed with
Petrobras for the use of the dynamically positioned UDW drillships
Norbe VIII and Norbe IX. The OODFL notes are backed by the flows
related to the charter and services agreements signed with
Petrobras for the use of the dynamically positioned UDW drillships
ODN I and ODN II and the UDW semi-submersibles Norbe VI and ODN
Tay IV. OOG is the operator of the drilling rigs and primary
sponsor of the transactions. OOG is the largest Brazilian
operator of UDW rigs chartered to Petrobras, with seven operating
UDW rigs in its fleet.
Fitch has downgraded these ratings:
OODFL
-- Series 2013-1 senior secured notes to 'B+' from 'BB'; Placed
on Rating Watch Negative;
-- Series 2014-1 senior secured notes to 'B+' from 'BB'; Placed
on Rating Watch Negative.
Odebrecht Drilling Norbe VIII/IX Ltd.
-- Series 2010-1 senior secured notes to 'BB-' from 'BB';
Placed on Rating Watch Negative.
RFC AIRCRAFT: Placed Under Voluntary Wind-Up
--------------------------------------------
The sole shareholder of RFC Aircraft Leasing 7 (Cayman) Ltd., on
Aug. 20, 2015, resolved to voluntarily wind up the company's
operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Elian Fiduciary Services (Cayman) Limited
c/o Padraig Hoare
Telephone: (345) 815 1415
Facsimile: (345) 949-9876
89 Nexus Way Camana Bay
Grand Cayman KY1-9007
Cayman Islands
ROARING FORK MASTER: Creditors' Proofs of Debt Due Sept. 30
-----------------------------------------------------------
The creditors of Roaring Fork Master, LP are required to file
their proofs of debt by Sept. 30, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 14, 2015.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
ROARING FORK OFFSHORE: Creditors' Proofs of Debt Due Sept. 30
-------------------------------------------------------------
The creditors of Roaring Fork Offshore Fund, Ltd are required to
file their proofs of debt by Sept. 30, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 14, 2015.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
STORES INVESTMENTS: Creditors' Proofs of Debt Due Sept. 30
----------------------------------------------------------
The creditors of Stores Investments Limited are required to file
their proofs of debt by Sept. 30, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 4, 2015.
The company's liquidator is:
Stuart Sybersma
c/o Marcin Czarnocki
Deloitte & Touche
Citrus Grove Building, 4th Floor
Goring Avenue
George Town KY1-1109
Cayman Islands
Telephone: +1 (345) 814 2228
Facsimile: +1 (345) 949 8258
STORES OVERSEAS: Creditors' Proofs of Debt Due Sept. 30
-------------------------------------------------------
The creditors of Stores Overseas Limited are required to file
their proofs of debt by Sept. 30, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 7, 2015.
The company's liquidator is:
Stuart Sybersma
c/o Marcin Czarnocki
Deloitte & Touche
Citrus Grove Building, 4th Floor
Goring Avenue
George Town KY1-1109
Cayman Islands
Telephone: +1 (345) 814 2228
Facsimile: +1 (345) 949 8258
TWO OCEAN: Creditors' Proofs of Debt Due Sept. 28
-------------------------------------------------
The creditors of Two Ocean Global Equities Ltd. are required to
file their proofs of debt by Sept. 28, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 14, 2015.
The company's liquidator is:
Victor Murray
MG Management Ltd.
Landmark Square, 2nd Floor
64 Earth Close, Seven Mile Beach
Grand Cayman KY1-1201
P.O. Box 30116 Cayman Islands
Telephone: +1 (345) 749 8181
Facsimile: +1 (345) 743 6767
===========
G U Y A N A
===========
PRECISION WOODWORKING: City Locks Down Reserve, Breaks Court Order
------------------------------------------------------------------
Stabroek News reports that the City Hall of Georgetown, Guyana, is
being accused of violating a court order by securing a reserve
that was leased to Precision Woodworking Ltd.
Stabroek News relates that town clerk Royston King received on
Sept. 9, 2015, a lawyer's letter on behalf of attorney Kashir
Khan, the Company's receiver-manager, advising that he remove
padlocks and a "No Trespassing" sign that the Mayor and City
Council officers placed on the Industrial Site, Ruimveldt
premises.
Guyana-based Precision Woodworking Ltd. is in receivership.
===================================
T R I N I D A D A N D T O B A G O
===================================
TRINIDAD AND TOBAGO: New Gov't. Faces Tough Economic Times Ahead
----------------------------------------------------------------
Trinidadexpress.com reports that the new government of Trinidad
and Tobago takes office at a time when the national economy faces
formidable challenges, as Prime Minister Dr. Keith Rowley
repeatedly emphasized during the closing weeks of the election
campaign and in his victory speech on the night his party won.
It took a lot of courage for Dr. Rowley to alert his supporters
and other voters he wooed on the campaign trail to "rough waters
and rapids" ahead, knowing that even a hint of sacrifices could
have turned away voters who craved "milk and honey", the report
relates.
Trinidadexpress.com relates it does not envisage the Government
having to impose IMF-style harsh austerity measures, since the
country's macroeconomic fundamentals are not woefully bad.
The report relates that the latest Central Bank data point to a
decline in GDP of 1.2 per cent for the second quarter of fiscal
2014-2015, and expects a similar trend to continue for at least
another year.
==========================
V I R G I N I S L A N D S
==========================
HOVENSA OIL: Placed in Bankruptcy by Owners
-------------------------------------------
Jonathan Randles, writing for Bankruptcy Law360, reports that the
owners of the Hovensa oil refinery, a closed oil refinery in St.
Croix, U.S. Virgin Islands, placed the facility in bankruptcy, a
day after it was sued by the local government. The owners,
according to the report, said it has a deal in place to sell off
the refinery's assets for $184 million to an affiliate of ArcLight
Capital Partners LLC.
The Hovensa oil refinery is jointly owned by subsidiaries of Hess
Corp. and Petroleos de Venezuela SA and has been closed since 2012
after suffering substantial losses.
=================
X X X X X X X X X
=================
* World Bank Warns of Possible Financial Market Turbulence
----------------------------------------------------------
RJR News reports that the World Bank is warning developing
economies, including those in the Caribbean, to brace for
'possible financial market turbulence' from the upcoming US
monetary policy tightening cycle.
The warning has come in a new World Bank policy research paper,
released ahead of a meeting of the US Federal Reserve's policy-
setting Federal Open Market Committee, says the report.
It said a likely rise in US interest rates, the Federal Reserve's
first rate hike since 2006, runs a risk of being associated with
market volatility, the report adds.
***********
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
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