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/raid1/www/Hosts/bankrupt/TCRLA_Public/150929.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 Tuesday, September 29, 2015, Vol. 16, No. 192 Headlines B R A Z I L ODEBRECHT OLEO: Bonds Drop as Petrobras Cancels Contract PETROLEO BRASILEIRO: Bill and Melinda Gates Foundation Sues Firm C A Y M A N I S L A N D S AG CIP: Commences Liquidation Proceedings AMOIXA LIMITED: Creditors' Proofs of Debt Due Oct. 16 BLACKSTONE CE: Commences Liquidation Proceedings BLACKSTONE O OFFSHORE: Commences Liquidation Proceedings BLACKSTONE TRC: Commences Liquidation Proceedings COLONIAL INVESTMENTS: Placed Under Voluntary Wind-Up LEILI HOLDINGS: Creditors' Proofs of Debt Due Nov. 13 PRINCESS SARAH: Creditors' Proofs of Debt Due Oct. 5 TOKYO REALTY: Commences Liquidation Proceedings TRIANGULAR QIM: Commences Liquidation Proceedings VELO INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 5 WATSON FALL: Creditors' Proofs of Debt Due Oct. 19 C O S T A R I C A COSTA RICA: Looks to China for Bond Sale as Budget Deficit Widens D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Foreign Investment Tops US$7.3BB in 3 Years J A M A I C A JAMAICA: IMF Approves Another US$39.7 Million Loan JAMAICA: Revenue Intake Running Ahead of Projections M E X I C O * MEXICO: Food Makers Crush Competition Behind Healthy Debt Levels - - - - - =========== B R A Z I L =========== ODEBRECHT OLEO: Bonds Drop as Petrobras Cancels Contract -------------------------------------------------------- Juan Pablo and Spinetto Blake Schmidt at Bloomberg News report that bonds of the oil services arm of Latin America's largest construction conglomerate plunged to record lows after Brazil's state oil company canceled a contract to rent one of its drilling rigs amid cost reductions. Odebrecht Offshore Drill Finance's $1.5 billion of bonds due 2022, which are backed by cash flows coming from four drilling rigs, fell 12 percent to about 26 cents on the dollar in New York on Sept. 24. Another $550 million in perpetual dollar bonds from Odebrecht Oil & Finance, which rely on cash flows coming from Odebrecht's upstream oil and gas projects, also declined to a record low 20 cents, according to Bloomberg News. Bloomberg News notes that Odebrecht Oleo & Gas SA, as the oil services venture is known, said that it received notification from Petroleo Brasileiro SA of the termination of its contract for drill ship ODN Tay IV on Sept. 22. OOG said it is analyzing the terms of the Petrobras's decision. The charter contracts for its other three vessels backing the bonds haven't been altered, it said, Bloomberg News relates. Supplying offshore rigs to Petrobras delivers most of the revenue of OOG, which counts Temasek Holdings Pte as a shareholder. The company also has a production vessel in the North Sea under a long-term contract with ConocoPhillips, Chief Executive Officer Roberto Simoes told Bloomberg News in an interview in May. Petrobras, as Brazil's flagship oil producer is known, said in an e-mailed statement the termination was in line with contractual terms, Bloomberg News relates. Bloomberg News says that the biggest oil producer in deep waters is intensifying spending cuts this year amid a collapse in oil prices and a mushrooming graft scandal in Brazil. The company is taking a series of operational and management cost cuts, including a voluntary plan to reduce working hours for administrative staff, Petrobras said Sept. 15. Earlier this month, it also canceled five platform-supply vessels from two separate contractors, Ultrapetrol Bahamas Ltd. and World Wide Supply AS, Bloomberg News notes. Bloomberg News discloses that the move by Petrobras underscores investor concerns about Odebrecht SA, one of Brazil's largest closely held companies that includes the region's biggest construction company. The company's CEO has been jailed since June in Brazil's biggest-ever corruption scandal after the company froze new investments in Brazil as a credit crunch tightened access to financing, Bloomberg News relays. As part of the scandal, Petrobras banned more than 20 suppliers facing allegations in the case -- including Odebrecht SA, Camargo Correa SA and Andrade Gutierrez SA -- from bidding for new contracts, Bloomberg News notes. The decision buffeted oil industry suppliers at a time of slumping prices, Bloomberg News adds. PETROLEO BRASILEIRO: Bill and Melinda Gates Foundation Sues Firm ---------------------------------------------------------------- globalinsolvency.com, citing The Wall Street Journal, reports that the Bill and Melinda Gates Foundation is suing Brazil's Petroleo Brasileiro SA and its auditor in a New York court, claiming a vast corruption scheme centered on the state-run oil company caused the charitable organization to lose tens of millions of dollars. The foundation, started by the billionaire co-founder of Microsoft Corp. and his wife, joins a long list of plaintiffs seeking to recoup money they lost as the scandal hammered the value of their investments in Petrobras shares, according to globalinsolvency.com. The report notes that it is just the latest bad news for the troubled oil company, which is scrambling to restore its reputation, rebuild investor confidence and pay down ballooning debt amid a global slump in oil prices. Petrobras has long maintained it was a victim of a yearlong bid- rigging and bribery ring that Brazilian prosecutors say was cooked up by suppliers and a few crooked insiders who fleeced the oil company for at least $2 billion, the report relates. The Gates lawsuit, filed against Petrobras and the Brazilian unit of PricewaterhouseCoopers LLP or PwC, alleges that corruption at the oil company was so widespread as to be "institutional" and that wrongdoing was "willfully ignored" by its auditor, the report notes. "The depth and breadth of the fraud within Petrobras is astounding. By Petrobras's own admission, the kickback scheme infected over $80 billion of its contracts, representing approximately one-third of its total assets," the lawsuit said, the report notes. About Petroleo Brasileiro Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. -- Petrobras (Brazilian Petroleum Corporation) -- explores for oil and gas and it produces, refines, purchases, and transports oil and gas products. The Company has proved reserves of about 14.1 billion barrels of oil equivalent and operates 16 refineries, an extensive pipeline network, and more than 8,000 gas stations. The Troubled Company Reporter-Latin America reported on March 6, 2015, that the deepening investigation into the alleged kickback scheme at Petrobras has triggered concerns for the Brazilian banks with exposures not only to the state-controlled oil company, but also to its large base of suppliers, as well as the broader oil and gas (O&G) and construction industries, says Moody's Investors Service. On March 12, 2015, the TCR-LA reported that Moody's Investors Service said the corruption investigation into Petrobras will negatively affect parts of the public and private sectors, but government support for the company is likely to help contain the credit-negative impact. Moody's Investors Service has downgraded all ratings for Petrobras, including a downgrade of the company's senior unsecured debt to Ba2 from Baa3, and assigned a Ba2 Corporate Family Rating to the company, the TCRLA reported on Feb. 27, 2015. Its failure to estimate its losses from the alleged corruption scheme and produce audited third-quarter results prompted Moody's to cut its rating to junk, the report said. Rival agency Standard & Poor's delivered a further blow on March 23 when it revised its outlook on the company from stable to negative, the TCRLA reported on March 26, 2015. On Feb. 10, 2015, TCRLA said Fitch Ratings has downgraded the foreign and local currency Issuer Default Ratings (IDRs) and outstanding debt ratings of Petrobras to 'BBB-' from 'BBB'. Concurrently, Fitch has placed all of Petrobras' international and national scale ratings on Rating Watch Negative. ========================== C A Y M A N I S L A N D S ========================== AG CIP: Commences Liquidation Proceedings ----------------------------------------- On Sept. 1, 2015, the sole shareholder of AG CIP GP 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: Joost Schellens c/o Intertrust Corporate Services (Cayman) Limited, 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands AMOIXA LIMITED: Creditors' Proofs of Debt Due Oct. 16 ----------------------------------------------------- The creditors of Amoixa Limited are required to file their proofs of debt by Oct. 16, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 2, 2015. The company's liquidator is: Maricorp Services Ltd. Roger L. Nelson Telephone: (345)-949-9710 P.O. Box 2075 Grand Cayman KY1-1105 Cayman Islands BLACKSTONE CE: Commences Liquidation Proceedings ------------------------------------------------ On Aug. 31, 2015, the sole shareholder of Blackstone CE Offshore Fund Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Sean Flynn Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 BLACKSTONE O OFFSHORE: Commences Liquidation Proceedings -------------------------------------------------------- On Aug. 31, 2015, the sole shareholder of Blackstone O Offshore Fund Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Sean Flynn Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 BLACKSTONE TRC: Commences Liquidation Proceedings ------------------------------------------------- On Aug. 31, 2015, the sole shareholder of Blackstone TRC Offshore Fund Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Sean Flynn Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 COLONIAL INVESTMENTS: Placed Under Voluntary Wind-Up ---------------------------------------------------- On Aug. 28, 2015, the shareholders of Colonial Investments Ltd resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Oct. 6, 2015, will be included in the company's dividend distribution. The company's liquidator is: Campbells Directors Limited Willow House, Floor 4 Cricket Square P.O. Box 268 Grand Cayman KY1-1104 Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 LEILI HOLDINGS: Creditors' Proofs of Debt Due Nov. 13 ----------------------------------------------------- The creditors of Leili Holdings Limited are required to file their proofs of debt by Nov. 13, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 27, 2015. The company's liquidator is: Su, Jianguo c/o Michelle R. Bodden-Moxam Portcullis TrustNet (Cayman) Ltd. The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 32052, Grand Cayman, KY1-1208 Cayman Islands PRINCESS SARAH: Creditors' Proofs of Debt Due Oct. 5 ---------------------------------------------------- The creditors of Princess Sarah Ltd are required to file their proofs of debt by Oct. 5, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 24, 2015. The company's liquidator is: Vincent Maffei 4010 Paw Paw Trail, Lake Wales FL 33898 Telephone: (954) 445 8461 TOKYO REALTY: Commences Liquidation Proceedings ----------------------------------------------- On Aug. 19, 2015, the shareholder of Tokyo Realty Investment Company II 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: Alan De Saram Telephone: (345) 949.4544 Facsimile: (345) 949.8460 Collas Crill & CARD 709 122 Mary Street P.O. Box Grand Cayman KY1-1107 Cayman Islands TRIANGULAR QIM: Commences Liquidation Proceedings ------------------------------------------------- On Aug. 31, 2015, the sole shareholder of Triangular Qim Fund Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Alun Davies Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 VELO INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 5 -------------------------------------------------------- The creditors of Velo International are required to file their proofs of debt by Oct. 5, 2015, to be included in the company's dividend distribution. The members will hold their final meeting on Oct. 7, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peng Xu of E5 38 Xiangyuan Road, Gongshu District Hangzhou, P.R. China WATSON FALL: Creditors' Proofs of Debt Due Oct. 19 -------------------------------------------------- The creditors of Watson Fall Ltd. are required to file their proofs of debt by Oct. 19, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 5, 2015. The company's liquidator is: Maricorp Services Ltd. c/o Roger L Nelson Telephone: 345-949-9710 P.O. Box 2075 Grand Cayman KY1-1105 Cayman Islands =================== C O S T A R I C A =================== COSTA RICA: Looks to China for Bond Sale as Budget Deficit Widens ----------------------------------------------------------------- Michael D. McDonald at Bloomberg News reports that Costa Rica is joining Venezuela and Ecuador in turning to China as a potential source of finance to help the Central American nation cover a widening fiscal deficit. President Luis Guillermo Solis's government is in preliminary talks with China to help cover a deficit that is projected to grow to 6.9 percent of gross domestic product in 2016 from 5.9 percent this year, Director of Public Credit Juan Carlos Quiros said, according to Bloomberg News. "We are looking to diversify our portfolio," Mr. Quiros said from his office in San Jose, adding that China bought 12-year Costa Rican bonds in 2008 with an interest rate of 2 percent, Bloomberg News notes. "China is one more option," he added. Bloomberg News relays that even as China's economy slows, the country has continued to be seen in Latin America and the Caribbean as an alternative financing source to global bond sales and loans from international institutions. Following a surprise trip to Beijing earlier this month, Venezuela President Nicolas Maduro said he secured a $5 billion loan after announcing a pipeline of loans totaling $20 billion in January, Bloomberg News notes. Ecuador, which like Venezuela is struggling with low oil prices, received $900 million from China earlier this year. Costa Rica's move comes as a years-long effort to broaden the tax base to boost revenue remains stalled, Bloomberg News says. Bloomberg News notes that Mr. Quiros declined to say how much the country would like to borrow from China. Costa Rica sold $1 billion of 30-year bonds in March to yield 7.16 percent, Bloomberg News relays. Moody's Investors Service cut Costa Rica's credit rating to junk status last year, putting the $50 billion economy in the same category as Russia and Portugal. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Foreign Investment Tops US$7.3BB in 3 Years ----------------------------------------------------------------- Dominican Today reports that Dominican Republic Export and Investment Center (CEI-RD) director Jean Alain Rodriguez said direct foreign investment (FDI) in the country topped US$7.3 billion during the last three years, or 37% of the total received by the Caribbean. Mr. Rodriguez said most of the FDI flowed to retailers, industry, mining and real estate, an average of 57% of the country's total during that period, according to Dominican Today. "The Dominican economy is more dynamic and increasingly diversified, increasing investment in non-traditional economic sectors such as renewable energy, infrastructure and logistics," Mr. Rodriguez said, the report notes. Speaking in a working breakfast of the young business leaders grouped in ANJE, Rodriguez said around US$67.6 million have been invested in exports, which created 40,000 jobs nationwide, the report relates. "And we have a projection of 7,000 jobs this year," Mr. Rodriguez added. The official added that exports grew an average of 5% yearly, from US$5.9 billion to US$9.9 billion from 2004 to 2014, a jump of 67%, the report adds. ============= J A M A I C A ============= JAMAICA: IMF Approves Another US$39.7 Million Loan -------------------------------------------------- Caribbean360.com reports that the International Monetary Fund (IMF) has given Jamaica a thumbs-up for its economic performance and has agreed to disburse another US$39.7 million to the Caribbean island's government. The announcement from the IMF came after its Executive Board completed its ninth review of Jamaica's economic performance under the program which is supported by a four-year arrangement under the Extended Fund Facility, according to Caribbean360.com. Following the Board's discussion of the review, Deputy Managing Director and Acting Chair Min Zhu said the program's performance was "on track and structural reforms have progressed broadly on schedule", adding that Jamaican authorities were firmly committed to the program, the report notes. "Macroeconomic fundamentals continue to strengthen. Inflation is at a historical low and the current account is improving, aided by declining oil prices. The recent upgrade in the credit ratings followed by the large international bond placement signaled improved investor confidence in Jamaica's reform program," he added, the report relates. However, the IMF official stated that growth remains weak and unemployment needs to decrease further, the report notes. Mr. Min Zhu added that sustained efforts in structural reforms, including by reducing energy costs, improving the business environment, and developing critical infrastructure, should help boost investment and growth, the report notes. Min Zhu said it was also essential to move forward with public sector reforms and to continue strengthening fiscal revenue by reforming customs and tax administration and broadening the tax base, the report adds. * * * As reported in Troubled Company Reporter-Latin America on July 29, 2015, Standard & Poor's Ratings Services assigned its 'B' issue rating on Jamaica's up to US$2 billion in bonds issued in two tranches. The first tranche is for up to US$1,350 million due in 2028. The second tranche is for up to US$650 million due in 2045. The government will use the proceeds to purchase debt that Jamaica owes to Venezuela as well as to finance the government's 2015/2016 budget. JAMAICA: Revenue Intake Running Ahead of Projections ---------------------------------------------------- RJR News reports that Richard Byles, Co-Chair of Jamaica's Economic Program Oversight Committee (EPOC), has disclosed that the Government's revenue intake for the first four months of the 2015/16 fiscal year totaled J$127.2 billion. This was J$2.9 billion more than the initial projection, according to RJR News. Speaking at the monthly EPOC media briefing, Mr. Byles said Government of Jamaica expenditure for the period was just over J$8 billion below budget, while recurrent expenses were J$3.9 billion lower than projected, the report notes. * * * As reported in Troubled Company Reporter-Latin America on July 29, 2015, Standard & Poor's Ratings Services assigned its 'B' issue rating on Jamaica's up to US$2 billion in bonds issued in two tranches. The first tranche is for up to US$1,350 million due in 2028. The second tranche is for up to US$650 million due in 2045. The government will use the proceeds to purchase debt that Jamaica owes to Venezuela as well as to finance the government's 2015/2016 budget. =========== M E X I C O =========== * MEXICO: Food Makers Crush Competition Behind Healthy Debt Levels ------------------------------------------------------------------ Adam Williams at Bloomberg News reports that Mexico's largest food producers are outperforming regional competitors as a slumping peso boosts profit margins. Mexico's largest tortilla, bread, mayonnaise and chicken makers have gained investors an average 14 percent in U.S. dollar terms this year, compared with an average 15 percent loss for food companies across Latin America, according to data compiled by Bloomberg. Gruma SAB, the world's largest tortilla maker, has returned a region's best 32 percent, while Industrias Bachoco SAB, Mexico's largest poultry producer, has returned 24 percent, according to Bloomberg News. The peso has dropped 14 percent this year against the U.S. dollar, which has made exports from Mexico's food companies more attractive, Bloomberg News relates. That's helped to swell margins and keep debt levels from rising, according to Mauricio Martinez, equity analyst at Mexico City-based Corporativo GBM Sab de CV. The average gross margin for the four Mexican food makers in the past quarter was the best in the region, while the average debt-to-earnings ratio was the lowest, the data show, Bloomberg News notes. "All of these companies have a solid debt balance, with none that have a leverage level considered unsustainable or worrisome," Martinez told Bloomberg News in a phone interview from Mexico City. "Compared to Brazilian food companies, which are generally very leveraged, the Mexican companies have very healthy debt levels," Mr. Martinez added. Buy Ratings At least 60 percent of analysts surveyed by Bloomberg have a buy rating on three of Mexico's four largest food companies by market value: Gruma, Bachoco and Grupo Herdez SAB. Grupo Bimbo SAB, the world's largest bread maker, has lost investors 9.8 percent this year in dollar terms and is rated buy or hold by 20 of 23 analysts surveyed by Bloomberg. Grupo Herdez, producer and distributor of foods and condiments such as dressings and mayonnaise, has returned 6.8 percent, Bloomberg News notes. Bloomberg News discloses that the fall in the Mexican peso has benefited the country's principal food companies that sell a large percentage of their products to U.S. and international consumers and pay operational expenses in pesos, according to Brian Flores, senior equity analyst at Interacciones Casa de Bolsa SA in Mexico City. The gross margins for Mexico's largest food producers averaged 40 percent last quarter, compared with 24 percent for six Brazilian peers, Bloomberg News relays. The additional financial room generated by the devalued peso has allowed these companies to pursue opportunities for further international expansion, Mr. Flores said, Bloomberg News notes. "These companies are continuing to see a benefit on behalf of the exchange rate," Mr. Flores said, Bloomberg News relays. "They sell an important part of products in dollars in international markets, which is being reflected in their margins," Mr. Flores added. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2015. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *