/raid1/www/Hosts/bankrupt/TCRLA_Public/151013.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, October 13, 2015, Vol. 16, No. 202
Headlines
A R G E N T I N A
METROSPACES INC: Has US$6.5MM Current Deficit at June 30
B R A Z I L
BRAZIL: Real Posts Best Week Since 2011 as Fiscal Debate Eases
MAGNESITA REFRATARIOS: Fitch Affirms 'BB' Issuer Default Ratings
MARFRIG GLOBAL: Fitch Affirms 'B+' Senior Unsecured Notes Rating
PETROLEO BRASILEIRO: Informant Paid Bills for Lula's Son
C A Y M A N I S L A N D S
AVENUE ASIA: Commences Liquidation Proceedings
BLISS HOLDINGS: Creditors' Proofs of Debt Due Oct. 20
COPELLA INVESTMENT: Creditors' Proofs of Debt Due Oct. 29
COPELLA MASTER: Creditors' Proofs of Debt Due Oct. 29
COPELLA OFFSHORE: Creditors' Proofs of Debt Due Oct. 29
EAC PARTNERS: Placed Under Voluntary Wind-Up
FASANARA CAPITAL: Creditors' Proofs of Debt Due Oct. 29
JHT LIMITED: Commences Liquidation Proceedings
PACIFIC ASIA: Creditors' Proofs of Debt Due Oct. 24
PAULA ROSA: Creditors' Proofs of Debt Due Oct. 19
POLARIS FUND: Creditors' Proofs of Debt Due Oct. 22
RIVERSIDE FRONTIER: Creditors' Proofs of Debt Due Oct. 28
RIVERSIDE FRONTIER OFFSHORE: Creditors' Proofs of Debt Due Oct. 28
C O S T A R I C A
SUNVESTA INC: Has US$52.9MM Current Deficit at June 30
H O N D U R A S
HONDURAS: IMF Says Economic Growth is Projected to be 3.5% in 2015
P U E R T O R I C O
DORAL FINANCIAL: Investors' Suit vs. Wakeman, Wahlman Continues
MMM HOLDINGS: S&P Lowers Counterparty Credit Rating to 'D'
PUERTO RICO: Rep. Floats Plan For Treasury Bond Guarantee
T R I N I D A D & T O B A G O
TRINIDAD & TOBAGO: Mixed Views From Country
X X X X X X X X X
LATAM: ECLAC Stresses Importance of Investment to Recover Growth
LATIN AMERICA: "Painful" Transition Awaits Region, IMF Says
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A R G E N T I N A
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METROSPACES INC: Has US$6.5MM Current Deficit at June 30
--------------------------------------------------------
Metrospaces, Inc. (OTCMKTS:MSPCD)'s working capital deficit was
US$6.5 million at June 30, 2015. The deficit was US$3.4 million
as of December 31, 2014.
At June 30, 2015, the Company had total current assets of
US$424,232 and total current liabilities of US$6,953,456. At
December 31, 2014, the Company had total current assets of
US$39,010 and total current liabilities of US$3,441,393.
The Company said: "Our net loss for the six months ended June 30,
2015, was $3,424,096 and our accumulated deficit at that date was
$7,554,070. We had $72,054 in cash available at that date, as
well as accounts receivable of $233,354. We financed our
operations during this period principally through loans of
$107,000 and $29,415 in cash acquired from acquisition. During
the six-month period then ended, Mr. Oscar Brito, our president,
earned $7,500 in salary from Urban Spaces, Inc. We were unable to
pay $3,000 of this obligation and it has been accrued in our
financial statements. We will be able to pay our obligations only
from revenues from our operations and/or financing. Given our
current financial condition and prospects, we can give no
assurance as to whether or when we will be able to do so.
"Net cash used in operating activities for the six-month period
ended June 30, 2015, was $5,352.
"Net cash provided by in financing activities for the six-month
period ended June 30, 2015, was $51,134.
"At June 30, 2015, we had a stockholders' deficit of $1,426,818.
The report of our independent registered public accounting firm on
our audited financial statements at December 31, 2014, contains a
paragraph regarding doubt as to our ability to continue as a going
concern. We do not have sufficient working capital to pay our
operating costs for the next 12 months and we will require
additional funds to pay our legal, accounting and other fees
associated with our company and our filing obligations under
federal securities laws, as well as to pay our other accounts
payable generated in the ordinary course of our business. We
believe that we will require approximately $1 million to fund our
operations for the next 12 months. We plans to fund our
activities, including those of Urban Spaces, during the balance of
2015 and beyond through the sale of debt or equity securities,
preconstruction sales of condominiums and/or deposits on
condominium units sold after construction of a project commences
but before these units are delivered. Our ability to obtain
funding from pension funds in Argentina has been restricted by the
recent nationalization of the largest Argentine pension funds. We
believe that we will be able to obtain funding for our projects
from other private lenders, but can give no assurance that we will
be successful in so doing or that such financing, if available,
will be on acceptable terms.
"In Latin American countries, the proceeds of these
preconstruction sales and deposits are not held in escrow pending
closing, but may be used freely. Most commonly, we will make a
preconstruction sale of one or a few penthouse or luxury
condominiums in a project at a discount of 15%-25% from their list
price. This discount approximates the rate of interest that we
would pay for borrowed money in these countries. Such
preconstruction sales and deposits are respectively expected to
provide approximately 10% to 25% of a project's costs. We believe
that we will receive approximately $1 million from preconstruction
sales and deposits over the next 12 months.
"On August 13, 2012, we issued a promissory note payable to
Richard S. Astrom in the principal amount of $260,000. This
promissory note was due on August 13, 2013, bore interest at the
rate of 0.24% per annum and was secured by a Pledge Agreement,
dated as of August 13, 2012, between us and Mr. Astrom, under
which we pledged the shares of Urban Spaces to Mr. Astrom. The
maturity of the promissory note was extended to April 14, 2014, on
August 12, 2013, and on February 19, 2014, the promissory note was
exchanged for a convertible promissory note which was convertible
into shares of Common Stock at a price per share based upon the
current market price of the Common Stock. Because of conversions
of the principal amount of the convertible promissory note into
shares of Common Stock, the principal amount was reduced to
$65,901.67. On May 1, 2014, under a Convertible Note Exchange
Agreement, this convertible promissory note and the interest
accrued thereon was exchanged for another convertible promissory
note in the principal amount of $69,944.04, which is convertible
into Common Stock at its par value and the pledge agreement was
terminated; this convertible promissory note obligates Mr. Astrom
to convert the principal amount thereof into Common Stock as
quickly as practicable without his becoming an affiliate of our
company. On July 11, 2014, the Convertible Note Exchange
Agreement was amended to provide for a conversion price equal to
2.5% of Current Market Value, as that term is defined. As the
result of conversions and the forgiveness of $83,516 of
indebtedness owed under the Convertible Promissory Note, there is
$27,227.62 outstanding thereunder.
"On April 13, 2012, Urban Properties LLC (UPLLC) entered into an
agreement with GBS Capital Partners, Inc., under which GBS
assigned to UPLLC the right to receive 9 condominium units being
constructed in Buenos Aires and UPLLC agreed to pay $750,000 to
GBS for these units. The obligation of UPLLC to pay GBS is
secured by a Pledge Agreement, dated April 13, 2012, between Urban
Spaces and GBS, under which Urban Spaces pledged its membership
interests in UPLLC to GBS. Installments of $350,000 and $400,000
were due under this agreement on April 15, 2013, and April 15,
2014, respectively. Because the units were not timely delivered,
the parties agreed that these dates would be extended to October
15, 2013, and 2014, respectively and that the new dates would be
further extended by the number of days after May 30, 2013, that
elapse until delivery. We eliminated $300,000 of our liability to
GBS by selling the right to acquire 4 units to GBS and by the
subsequent exchange of $450,000 of indebtedness in respect of the
other 5 units for 450,000 shares of our Series B Convertible PIK
Preferred Stock.
"While we are not in default under the convertible
promissory note payable to Mr. Astrom, funds are not available to
pay the amount due; however, since Mr. Astrom is obligated to
convert the principal amount of this convertible promissory note
into shares of Common Stock, we do not expect that we will be
required to pay this obligation. We plan to obtain such funds
through the sale of debt or equity securities rather than from
preconstruction sales of condominiums and/or deposits on
condominium units sold after construction of our other projects
commence but before these units are delivered.
"We can give no assurance that any of the funding described will
be available on acceptable terms, or available at all. If we are
unable to raise funds in sufficient amount, when required or on
acceptable terms, we may have to significantly reduce, or
discontinue, our operations. To the extent that we raise
additional funds by issuing equity securities or securities that
are convertible into our equity securities, our stockholders may
experience significant dilution."
A copy of the Form 10-Q is available at http://is.gd/Ae25dL
Metrospaces, Inc. (OTCMKTS:MSPCD) acquires land and designs,
builds, develops and resells condominiums on it, alone or together
with investors. The Miami-based Company's current projects are
located in Buenos Aires, Argentina, and Caracas, Venezuela.
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B R A Z I L
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BRAZIL: Real Posts Best Week Since 2011 as Fiscal Debate Eases
--------------------------------------------------------------
Denyse Godoy and Paula Sambo at Bloomberg News report that
Brazil's real extended its best weekly rally since 2011 and stocks
gained as the political debate over measures to shore up the
budget eased and speculation the U.S. will refrain from raising
interest rates spurred an advance in emerging markets.
The currency climbed to a one-month high after President Dilma
Rousseff on Oct. 2 announced a cabinet reshuffle as she tries to
rebuild the nation's finances to avoid another credit-rating
downgrade, according to Bloomberg News. The advance accelerated
as signs of weakness in the American economy sparked bets the
Federal Reserve won't boost borrowing costs this year, Bloomberg
News relates. The benchmark stock gauge gained for a ninth day,
posting its longest winning streak in two years, Bloomberg News
notes.
"There's some sort of relief after so much anxiety," Lauro
Vilares, an analyst at brokerage Guide Investimentos, said from
Sao Paulo, Bloomberg News discloses. "It's good to see some real
action by the government. Meanwhile, the Fed speculation helps
with the overall mood," Mr. Vilarex added.
The real added 0.6 percent to 3.7633 per dollar on Oct. 9,
bringing the week's gain to 4.5 percent. The Ibovespa advanced 0.5
percent to 49,338.41, Bloomberg News relates. Miner Vale SA rose
with commodities, while lender Itau Unibanco Holding SA dropped.
Brazil's Congress passed most of the budget cuts, pension reforms
and tax increases designed by Rousseff's economic team to rein in
government spending and curb above target inflation, Bloomberg
News says. Mauro Leos, a senior analyst at Moody's Investor
Service, said that the government is showing intention to make
progress on strengthening the country's fiscal accounts, Bloomberg
News relates.
Still, President Rousseff moved a step closer to impeachment when
an audit court recommended that Congress reject her 2014 budget
accounting amid allegations her government broke fiscal laws to
hide a deficit, Bloomberg News notes. The government will
demonstrate she did nothing wrong, the presidency said in an e-
mailed statement after the ruling was announced, Bloomberg News
relates. The next day, Lower House President Eduardo Cunha said
he had received two new impeachment requests, bringing the total
to eight, the report says.
"When we assess events over the past few weeks, there has been no
substantive shift on fundamentals, it is somewhat of a debate on
whether the impeachment/resignation risk is credit positive or
negative," Siobhan Morden, the head of Latin America fixed income
at Jefferies Group LLC in New York, said in a report obtained by
Bloomberg News. A regime change "could provide some political
capital and commitment for policy re-balancing and potential for
an important shock to investor sentiment," she wrote.
In the next few weeks, the political situation in Brazil will
still set the trend for stocks, according to Pedro Paulo Afonso,
an investments director at brokerage TOV Corretora, Bloomberg News
notes.
"There's a lot of uncertainty hanging over the market," he said
from Sao Paulo, adds Bloomberg News.
MAGNESITA REFRATARIOS: Fitch Affirms 'BB' Issuer Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed the local and foreign currency Issuer
Default Ratings (IDRs) of Magnesita Refratarios S.A. (Magnesita)
at 'BB' and its National Scale Ratings at 'A+(bra)'. The Rating
Outlook is Negative. A full list of rating actions follows at the
end of this release.
KEY RATING DRIVERS
Magnesita's Negative Outlook reflects its ongoing challenges to
reduce its high leverage ratios in light of the company's large
exposure to the sluggish near-term performance of the global steel
industry. Magnesita's ability to continue to gain market share in
North America, as well as a production rebound in this particular
region as a benefit of recent trade policies, may prove to be a
positive catalyst. Recently Magnesita's operating cash flow has
shown some improvement as a result of better working capital
management and SG&A cost initiatives. Nevertheless, the
depreciation of the BRL versus the USD has increased the company's
indebtedness level.
Fitch's base case for Magnesita indicates that its net debt to
EBITDA ratio will reach 4.7x in 2015, with a decline to around
3.8x in 2016. This expected improvement by the end of next year is
not considered sufficient to stabilize Magnesita's ratings at 'BB'
at this time. Given its operating cash flow volatilities, Fitch
would expect the company to maintain consistency on net leverage
at 3.5x or below to refrain from a downgrade over the next 12 to
24 months. The agency expects Magnesita to keep its track record
of a conservative financial policy, underpinned by robust cash
holdings and a well-spread long-term debt schedule amortization in
order to avoid refinancing risks.
Solid Business Profile; Vertical Integration
Magnesita's ratings are supported by its low-cost and vertically
integrated business model, long-life mine reserves, geographical
diversification, and its position as the world's third largest
refractory manufacturer in a highly fragmented market. The
company's core business is refractory solutions, comprising 89% of
BRL3 billion in revenues during the last 12-month period (LTM)
ended on June 30 2015, followed by its services business line
(6%), and its minerals segment (5%). The company has strong long-
term relationships with customers throughout the world, including
the largest Brazilian steel producers, as well as leading
Brazilian and international cement producers.
Increasing Geographical Diversification; Adequate Profitability
Magnesita has large exposure to the cyclical steel industry, which
accounted for 74% of consolidated revenues in June 2015. Over the
last two years, the company has successfully intensified its
geographical diversification strategy, aiming to reduce its
dependence on the Brazilian steel industry. This has resulted in a
reduction of Brazil's contribution to the company's revenues to
28% in 2014 from 36% in 2012. During 2015, Fitch expects this
percentage to decline to 25% and to remain in the range of 20%-25%
in the medium term. Magnesita's share of service for the Brazilian
steel market is around 70%, but in other regions with improving
steel industry prospects, such as the U.S., it has greater growth
potential. Magnesita currently has an estimated U.S. market-share
of around 20%.
Despite the steel sector's volatility, Magnesita has been able to
maintain relatively stable EBITDA margins. Nevertheless, the
ongoing geographical diversification and strategy to develop non-
core markets have demanded higher operating expenses and pressured
its profitability. Fitch expects Magnesita's EBITDA to trend
around 14% during the next three years, a decline from the
historical 15%, yet it is still sound compared to its peers which
exhibit average EBITDA margins of around 12%.
Improvement in Operating Cash Flow; High Interest Expenses
Continues to Pressure
Since 2014, Magnesita has been working to improve its operating
cash flow (CFFO) generation towards working capital efficiencies
and SG&A costs initiatives. During the LTM ended June 30, 2015,
Magnesita's EBITDA reached BRL399 million, an increase from BRL358
million in 2014, but still below BRL420 million in 2013.
The company's funds from operations (FFO) have improved, but
remain weak mostly due to its high interest expense burden.
Seeking to reduce interests outflows and total leverage, the
company has just completed a tender offer for its USD400 million
2020 bonds that has resulted in only USD66 million of the bonds
remaining outstanding. To fund this transaction, Magnesita used a
mix of cash and proceeds from a USD160 million syndicated loans
due 2020, which was arranged by Bradesco and Bladex at more
attractive interest rates.
The company's improved working capital management drove
improvements in CFFO. During 2014 and the LTM June 2015, working
capital outflow was BRL86 million and BRL43 million, respectively.
In the same period, CFFO grew to BRL192 million in June 30, 2015
from BRL142 million in 2014. Magnesita's capex has remained around
BRL205 million, which led to a negative free cash flow (FCF)
position of BRL14.3 million during LTM June 30 2015.
Leverage Remains High; Decline Expected
The BRL devaluation has been pressuring Magnesita's net leverage
ratios. As of June, 30 2015, the company had BRL2.8 billion of
debt, with 64% of it being denominated in USD. As of June 30,
2015, the company's total and net adjusted debt-to-LTM EBITDA
ratios were 6.9x and 4.8x, respectively, compared to 5.8x and 3.5x
for 2013 and 5.2x and 2.9x for 2012. Fitch includes BRL21 million
related to future obligations from acquisitions in Magnesita's
total adjusted debt. In the medium term, foreign exchange risk for
the company is mitigated due to its geographic diversification, as
approximately 70% of its EBITDA is generated in foreign currency
compared to 68% of its debt denominated in USD and EUR.
Fitch's base case indicates EBITDA generation at around BRL455
million for 2015, with EBITDA margins slightly above 14%. FCF is
expected to be neutral to slightly positive following capex, with
net adjusted debt-to-EBITDA showing a marginal improvement to
4.7x. Going forward in 2016, the company's high export revenues
volume should benefit from the expected continuation of the BRL
devaluation and increase its operating cash flow generation,
leading to a decline in the Magnesita's net adjusted debt to
EBITDA ratio to around 3.8x.
KEY ASSUMPTIONS
-- Low-digit revenue growth from 2016 onward;
-- Softer but still resilient EBITDA margins - EBITDA margin in
the 13%-15% range (14% expected at fiscal year-end 2015);
-- Capex at around BRL240 million per year and dividends at 25%
from 2017 onwards;
-- Cash balance remains sound compared to short-term debt;
-- Reserve life replenished annually;
-- No large-scale M&A activity.
RATING SENSITIVITIES
Positive: Future developments that may, individually or
collectively, lead to a positive rating action include:
-- An upgrade is unlikely in the next 12-18 months due to the
slow pace of deleveraging;
-- Stabilizing the Outlook is dependent on the issuer's ability
to achieve a net leverage ratio around 3.5x or below by the
end of 2016 through an improvement in operating cash flow
generation or an asset sale.
Negative: Future developments that may, individually or
collectively, lead to a negative rating action:
-- Prolonged downturn in the cyclical steel and cement markets
that hampers production volumes globally;
-- Market share erosion in Brazilian market;
-- EBITDA margins declining below current levels on a sustained
basis;
-- Net adjusted leverage remaining above 3.5x during the next 12
to 24 months;
-- Deterioration of sound liquidity compared to short-term debt,
leading to refinancing risk exposure;
-- Large debt-funded M&A acquisition that adversely impacts
Magnesita's capital structure on a sustained basis.
LIQUIDITY
Magnesita has a track record of keeping strong cash balances, with
cash covering short-term debt by an average 4.9x during the last
five years. As of June 30, 2015, the company had BRL2.8 billion of
debt, of which BRL488 million is due in the short term, while cash
and marketable securities was solid at BRL838 million. Following
the tender offer, Fitch expects Magnesita cash balance to reduce
to around BRL480 million, a level that should remain adequate for
medium term maturities up to mid-2018. The agency expects
Magnesita to keep its track record of conservative financial
policy, underpinned by solid cash holdings and a well-spread long
term debt schedule amortization in order to avoid refinancing
risk.
FULL LIST OF RATING ACTIONS
Fitch has affirmed the following ratings:
Magnesita Refratarios S.A.
-- Foreign currency long-term IDR at 'BB';
-- Local currency long-term IDR at 'BB';
-- National long-term rating at 'A+(bra)';
-- Local Debentures issuance at 'A+(bra)'.
Magnesita Finance Ltd.
-- Senior unsecured ratings at 'BB'.
The Rating Outlook is Negative.
MARFRIG GLOBAL: Fitch Affirms 'B+' Senior Unsecured Notes Rating
----------------------------------------------------------------
Fitch Ratings has affirmed Marfrig Global Foods S.A.'s (Marfrig)
Issuer Default Rating (IDR) and senior unsecured notes at 'B+'.
The Outlook is revised to Positive from Stable.
The Positive Outlook revision reflects the acceleration of
Marfrig's deleveraging process following the divestment of Moy
Park Holding Europe Ltd. (Moy Park) in September 2015 and the
expectation that the company will improve free cash flow (FCF)
over the next 24 months.
KEY RATING DRIVERS
Simplified Business Profile:
Marfrig's ratings incorporate its broad product and geographic
diversification, which help to reduce risks related to disease,
trade restrictions and currency fluctuation. Following recent
divestitures, the company is structured into two business units:
Marfrig Beef (61% of EBITDA), one of the world's largest beef
producers, and Keystone Foods (39% of EBITDA), which processes
food for major restaurant chains, notably McDonald's. These
divestitures have allowed Marfrig to simplify its organizational
structure and decrease execution risks associated with the
turnaround of Seara Brazil, which was sold in 2013 to JBS S.A
(JBS); Moy Park was also sold to JBS in September 2015. Marfrig
will remain a global company after the transaction as 58% of its
consolidated net revenue will come from international operations.
Marfrig is implementing a strategy called 'Focus to Win,' which
aims to increase revenue and improve profitability by focusing its
commercial strategy on the development of its food service and
retail channels.
Improved Credit Metrics:
Marfrig's pro forma net debt/EBITDA ratio is expected to fall
towards 4.0x by year end 2015 as a result of satisfactory
performance and the divestment of Moy Park to JBS in September
2015; net debt/EBITDA LTM was 4.8x at June 30, 2015. The
divestment of Moy Park for a total of USD1.5 billion (USD1.2
billion paid in cash) accelerates the deleveraging process. Given
the deleveraging process, Fitch expects Marfrig to report positive
free cash flow in 2015 and 2016, as it has since 2014 after
several years of negative FCF generation. The company is expected
to focus on reducing leverage via increased EBITDA, better asset
and logistics management, steady capex, and lower interest expense
associated with liability management.
Challenging Domestic Operating Environment:
The operating environment in 2015-16 is expected to be more
difficult for the Brazilian protein sector due to the weak
economic environment, high inflation, increased interest and
unemployment rates, and declining consumer confidence. The beef
industry is responding to these challenges by reducing processing
capacity in the country, and Brazilian exporters are benefitting
from the depreciation of the reais along with growing demand for
beef worldwide. Exports accounted for 48% of Marfrig Beef net
revenue and around one-third of consolidated revenues. Asia and
the Middle East remain the positive growth drivers for Marfrig. In
May 2015, mainland China approved Brazilian beef imports, and in
June 2015, the U.S. announced the opening of its market to
Brazilian beef.
No Major Acquisitions Anticipated:
Marfrig is not expected to execute any major acquisitions over the
next 18 months given management's focus on deleveraging its
balance sheet, improving cash flow generation and reducing
interest expense. Key initiatives will be the optimization of
plants and distribution by Marfrig Beef and the geographic
expansion of Keystone.
KEY ASSUMPTIONS
Fitch's expectations are based on the agency's internally
produced, base case rating forecasts. They do not represent the
forecasts of rated issuers individually or in aggregate. Key Fitch
forecast assumptions include:
-- Double-digit net revenue growth of continuing operations in
2015 due to price increases at Marfrig Beef and the
devaluation of real against the U.S. dollar
-- EBITDA margin of approximately 8 - 9%
-- Capex/sales of approximately 2.6% in 2015
-- Positive free cash flow
-- Pro forma net debt/EBITDA at about 4.0x in FY2015.
RATING SENSITIVITIES
Negative: A negative rating action could be precipitated by
Marfrig's inability to improve FCF over the next 24 months and
maintain net leverage above 4.5 - 5.0x on a sustainable basis.
An upgrade could result from a combination of the company building
a track record of generating positive FCF, demonstrating the
resilience of its group's operating margin in its beef business in
Brazil, while a sustained net leverage ratio near 3.5x also would
be viewed positively.
LIQUIDITY
Marfrig's liquidity is adequate. As of June 2015, the group held
BRL2.6 billion of cash and marketable securities, which includes
BRL731 million of credit-linked notes which Fitch consider as
restricted cash. This level of liquidity compares with short-term
debt of BRL1.9 billion. Marfrig's largest refinancing requirement
will be in 2018 (BRL3 billion), as the company has redeemed most
of its 2016 bond. The company continues to be actively engaged in
liability management to reduce debt and interest expense. Marfrig
is using part of cash proceeds of the divestment of Moy Park to
buy back outstanding bonds. Almost 92% of the company's debt is in
U.S. dollars and foreign currencies (excluding the real); 78% of
net revenue is pegged to currencies other than the BRL.
FULL LIST OF RATING ACTIONS
Fitch has affirmed the following ratings:
Marfrig:
-- Foreign & local currency IDR at 'B+';
-- National scale rating at 'BBB+ (bra)'.
Marfrig Holdings Europe B.V.:
-- Foreign currency IDR at 'B+';
-- Notes due 2017, 2018, 2019, 2021 at 'B+/RR4'.
Marfrig Overseas Ltd:
-- Notes due 2016, 2020 at 'B+/RR4'.
The Rating Outlook is Positive.
PETROLEO BRASILEIRO: Informant Paid Bills for Lula's Son
--------------------------------------------------------
EFE News, citing daily O Globo, reports that one of the men
arrested in the corruption case surrounding Brazil's state-run
Petroleo Brasileiro S.A. oil company said he paid the personal
bills of one of former President Luiz Inacio Lula da Silva's sons.
Businessman Fernando Bahiano said he paid the bills, this after
reaching a cooperation agreement with the justice department after
being accused of being an intermediary in the payment of bribes
between companies providing services to Petrobras and the
politicians who engaged in the corrupt activities, according to
EFE News.
According to O Globo, Bahiano told a judge that he paid the almost
BRL2 million (about $530,000) of personal expenses for Fabio Luis
Lula da Silva, the oldest son of the former president, with money
coming from the corruption network, the report relays.
The Brazilian Supreme Court authorized the Federal Police to
summon Lula for questioning as a witness -- not as someone being
investigated himself -- in relation to the case, the report
discloses.
The authorization to question Lula was requested last month by a
Federal Police commissioner who believes that the former president
"could have benefitted" from the network that, according to
Petrobras, diverted some BRL$2 billion, the report says.
In his request submitted to the court, the commissioner said that
Lula could have "obtained benefits for himself, for his party, the
(Workers Party) and for the government, with the maintenance of a
base of party support sustained by illicit (activities)" in
Petrobras, the report notes.
The "Petrobras case" has been under investigation for a year and
the courts have already convicted several businessmen, petroleum
executives and politicians who had been implicated in the
corruption, says the report.
Among those convicted is Joao Vaccari, the former treasurer of the
Workers Party, which is the party of both President Dilma Rousseff
and Lula. He was sentenced to 15 years and four months in prison,
the report relays.
Brazilian authorities suspect that part of the funds obtained via
the corruption network could have gone to Rousseff's reelection
campaign, a possibility that is the subject of a judicial
investigation, the report adds.
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
==========================
AVENUE ASIA: Commences Liquidation Proceedings
----------------------------------------------
On Sept. 11, 2015, the sole shareholder of Avenue Asia
International, 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:
Sonia Gardner
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6386
BLISS HOLDINGS: Creditors' Proofs of Debt Due Oct. 20
-----------------------------------------------------
The creditors of Bliss Holdings Limited are required to file their
proofs of debt by Oct. 20, 2015, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2015.
The company's liquidator is:
Appleby Trust (Cayman) Ltd.
c/o Richard Gordon
Telephone: +1 (345) 949 4900
75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
COPELLA INVESTMENT: Creditors' Proofs of Debt Due Oct. 29
---------------------------------------------------------
The creditors of Copella Investment Management (Cayman) Limited
are required to file their proofs of debt by Oct. 29, 2015, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 14, 2015.
The company's liquidator is:
Victor Murray
MG Management Ltd.
Landmark Square, 2nd Floor
64 Earth Close Seven Mile Beach
P.O. Box 30116 Grand Cayman KY1-1201
Cayman Islands
Telephone: +1 (345) 749 8181
Facsimile: +1 (345) 743 6767
COPELLA MASTER: Creditors' Proofs of Debt Due Oct. 29
-----------------------------------------------------
The creditors of Copella Master Fund SPC are required to file
their proofs of debt by Oct. 29, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 14, 2015.
The company's liquidator is:
Victor Murray
MG Management Ltd.
Landmark Square, 2nd Floor
64 Earth Close Seven Mile Beach
P.O. Box 30116 Grand Cayman KY1-1201
Cayman Islands
Telephone: +1 (345) 749 8181
Facsimile: +1 (345) 743 6767
COPELLA OFFSHORE: Creditors' Proofs of Debt Due Oct. 29
-------------------------------------------------------
The creditors of Copella Offshore Fund SPC are required to file
their proofs of debt by Oct. 29, 2015, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 14, 2015.
The company's liquidator is:
Victor Murray
MG Management Ltd.
Landmark Square, 2nd Floor
64 Earth Close Seven Mile Beach
P.O. Box 30116 Grand Cayman KY1-1201
Cayman Islands
Telephone: +1 (345) 749 8181
Facsimile: +1 (345) 743 6767
EAC PARTNERS: Placed Under Voluntary Wind-Up
--------------------------------------------
On Sept. 11, 2015, the sole shareholder of EAC Partners, Ltd.
passed a resolution 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 Julie Hughes
Telephone: (345) 815-1426
Facsimile: (345) 945-6265
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
FASANARA CAPITAL: Creditors' Proofs of Debt Due Oct. 29
-------------------------------------------------------
The creditors of Fasanara Capital Credit Strategies Fund are
required to file their proofs of debt by Oct. 29, 2015, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 14, 2015.
The company's liquidator is:
Fasanara Capital Limited
c/o MG Management Ltd.
Landmark Square, 2nd Floor
64 Earth Close Seven Mile Beach
P.O. Box 30116 Grand Cayman KY1-1201
Cayman Islands
Telephone: +1 (345) 749 8181
Facsimile: +1 (345) 743 6767
JHT LIMITED: Commences Liquidation Proceedings
----------------------------------------------
On Sept. 17, 2015, the shareholders of JHT Limited 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:
Ng Tsz Shun
Hanzomon First Bldg., 5th Floor
1-4 Kojimachi, Chiyoda-ku
Tokyo 102-0083
Japan
PACIFIC ASIA: Creditors' Proofs of Debt Due Oct. 24
---------------------------------------------------
The creditors of Pacific Asia Alliance Opportunity Fund Limited
are required to file their proofs of debt by Oct. 24, 2015, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 4, 2015.
The company's liquidator is:
Michael Saville
c/o Peter Bigwood
Telephone: +1 (345) 769 7210
Facsimile: +1 (345) 949 7120
10 Market Street
P.O. Box #765 Camana Bay
Grand Cayman KY1- 9006
Cayman Islands
PAULA ROSA: Creditors' Proofs of Debt Due Oct. 19
-------------------------------------------------
The creditors of Paula Rosa 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 wind-up proceedings on Sept. 14, 2015.
The company's liquidator is:
Jennifer Reilly
Campbells Directors Limited
Cricket Square, Willow House, Floor 4
P.O. Box 268 Grand Cayman KY1-1104
Cayman Islands
Telephone: +1 (345) 949 2648
Facsimile: +1 (345) 949 8613
POLARIS FUND: Creditors' Proofs of Debt Due Oct. 22
---------------------------------------------------
The creditors of Polaris Fund Series SPC are required to file
their proofs of debt by Oct. 22, 2015, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Sept. 9, 2015.
The company's liquidator is:
Chi Wah Yiu
Polaris Securities (Hong Kong) Limited
1003-1004 Admiralty Centre
Tower 1, 18 Harcourt Road
Hong Kong
Telephone: (852) 3555 7888
Facsimile: (852) 3555 7889
RIVERSIDE FRONTIER: Creditors' Proofs of Debt Due Oct. 28
---------------------------------------------------------
The creditors of Riverside Frontier Opportunities Allocation Fund
are required to file their proofs of debt by Oct. 28, 2015, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 1, 2015.
The company's liquidator is:
Peter Goulden
Mourant Ozannes Cayman Liquidators Limited
Reference: NDL
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647; or
Mourant Ozannes Cayman Liquidators Limited
Reference: Peter Goulden
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
94 Solaris Avenue Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
RIVERSIDE FRONTIER OFFSHORE: Creditors' Proofs of Debt Due Oct. 28
------------------------------------------------------------------
The creditors of Riverside Frontier Opportunities Fund Offshore
Investors are required to file their proofs of debt by Oct. 28,
2015, to be included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 1, 2015.
The company's liquidator is:
Peter Goulden
Mourant Ozannes Cayman Liquidators Limited
Reference: NDL
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647; or
Mourant Ozannes Cayman Liquidators Limited
Reference: Peter Goulden
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
94 Solaris Avenue Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
==================
C O S T A R I C A
==================
SUNVESTA INC: Has US$52.9MM Current Deficit at June 30
------------------------------------------------------
SunVesta, Inc. (OTCMKTS:SVSA)'s working capital deficit was
US$52.9 million at June 30, 2015. The deficit was US$41.1 million
as of December 31, 2014.
At June 30, 2015, the Company had total current assets of
US$1.1 million and total current liabilities of US$54.0 million.
At December 31, 2014, the Company had total current assets of
US$330,666 and total current liabilities of US$41,476,703.
The Company said: "Since inception, we have experienced
significant changes in liquidity, capital resources, and
stockholders' equity.
"Our negative net working capital of $52,863,665 is of immediate
concern and will require significant action to meet anticipated
cash needs, including the upcoming maturity on August 31,
2015, of Swiss Francs (CHF)-bonds in the aggregate amount of
$35,947,733. Management is in the process of initiating a new
bond issue as a means to satisfy these bonds.
"Net cash flow used in operating activities for the six months
ended June 20, 2015, was $3,806,738, as compared to $3,142,719 for
the six months period ended June 30, 2014. We expect to continue
to continue to use net cash flow in operating activities until we
complete the Paradisus Papagayo Bay Resort & Luxury Villas
project, which completion is projected for the third quarter of
2017.
"Net cash used in investing activities for the six months ended
June 30, 2015, was $4,691,170 as compared to $5,038,474 for the
six month period ended June 30, 2014.
"We expect negative net cash flow in investing activities to
continue while in the process of developing the Paradisus Papagayo
Bay Resort.
"Net cash provided by financing activities for the six month
period ended June 30, 2015, was $9,191,280 as compared to
$7,994,267 for the six month period ended June 30, 2014.
"We expect net cash flow provided by financing activities to
continue due to the financing necessary to complete the
development of the Paradisus Papagayo Bay Resort.
"Management believes that cash on hand, related party loans and
the assurance of the Guaranty Agreement as described in the going
concern paragraph are sufficient for us to conduct operations over
the next twelve months.
"We had no lines of credit or other bank financing arrangements as
of June 30, 2015.
"We have commitments for executed purchase orders and agreements
in the amount of $57 million as of June 30, 2015, in connection
with the development of the Paradisus Papagayo Bay Resort, which
commitments are included in the required estimated net financing
of $198 million to complete the project. Most material
commitments are not contractually agreed as of the end of the
period. We have cancellable commitments to Meridian IBG that are
not included in the required financing for the development of the
Paradisus Papagayo Bay Resort of approximately $15,000,000 as of
June 30, 2015, for the purchase of two additional concession
properties in Polo Papagayo, Guanacaste, Costa Rica.
"We maintain a defined benefit plan that covers all of our Swiss
employees and have employment agreements with our Chief Executive
Officer and Chief Operating Officer as of June 30, 2015.
"We have no current plans for significant purchases or sales of
plant or equipment, except in connection with the planned
construction of the Paradisus Papagayo Bay Resort.
"We have no current plans to make any changes in the number of our
employees as of June 30, 2015."
A copy of the Form 10-Q is available at http://is.gd/oAFeBo
SunVesta, Inc. (OTCMKTS:SVSA) is developing luxury hotels and
resorts worldwide. The Company's initial real estate development,
the Paradisus Papagayo Bay Resort & Luxury Villas, is a five star
luxury hotel in Guanacaste, Costa Rica.
===============
H O N D U R A S
===============
HONDURAS: IMF Says Economic Growth is Projected to be 3.5% in 2015
------------------------------------------------------------------
An International Monetary Fund (IMF) mission, led by Roberto
Garcia-Saltos, visited Tegucigalpa on September 24 to October 6 to
conduct the second review of Honduras' Fund-supported program. At
the conclusion of the visit, Mr. Garcia-Saltos issued the
following statement in Tegucigalpa:
"The mission welcomes the positive results obtained through the
ambitious policy decisions made over the past 22 months. These
policies are creating the foundation for sustained inclusive
growth and fiscal sustainability.
"In 2015 real economic growth is projected to be 3.5 percent
better than-expected. The outlook for growth is expected to be
broad-based, led by communication, agriculture and manufacturing,
and supported by favorable terms of trade and growth in trading
partners. Inflation through August remained low and is expected
to reach about 4 percent by end-year. Through September, net
international reserves rose by US$206 million to about 4.5 months
of imports, contributing to a strengthened external position. On
the fiscal sector, the mission is encouraged by the more solid
fiscal position, with lower deficits for the central government
and in the state electricity company (ENEE), both smaller than
originally envisaged. This has added to the credibility of fiscal
policy and enhanced confidence week as evidenced by declining
spreads on external commercial debt.
"Program implementation remains strong. The structural benchmarks
were also observed, while significant progress toward meeting end-
of-December 2015 benchmarks has been made. The 2016 budget
submitted to congress is in line with program commitments and we
welcome the medium term fiscal plan included with the
documentation sent to congress.
"For 2016, the outlook for the Honduran economy remains just as
positive, with growth projected at 3.6 percent (revised up from
3.4 percent), inflation low, at about 5 percent, and lower current
account deficit.
"The mission and the authorities reached staff level
understandings for the program for 2016. The agreement contains
quantitative targets, including a floor on social spending, and
appropriate policies to institutionalize the hard-won gains in
macroeconomic stability, and simultaneously boost growth-enhancing
spending by the government. These understandings are subject to
approval by the IMF's Management and Executive Board, which is
expected to consider the second program review later in the year.
"Furthermore, the authorities have decided to protect the fiscal
gains by establishing a fully functional medium-term fiscal
framework. This would institutionalize fiscal discipline, thus
helping to reduce the debt burden and enhance policy credibility.
Monetary policy will continue, appropriately, to focus on keeping
inflation under control and strengthening the external position
while providing adequate support to economic growth.
"We are encouraged by the progress made thus far, in implementing
the social protection framework law, which seeks to extend
coverage of the social safety net and reaching universal health
care in the medium term. The authorities are committed to
implementing this law gradually within the program's targets. At
the same time a draft law to reform the Honduran Social Security
Institute (IHSS) to protect its fiscal solvency and improve
governance is being prepared for submission to congress later this
year.
"The economic policies in the updated economic program designed by
the government aim to improve transparency, support economic
growth and job creation while maintaining prudent fiscal policies.
Important actions to promote growth include a program to
substantially reduce electricity distribution losses and better
practices in public financial management that should create
additional room for higher public spending on needed
infrastructure. In line with this strategy, the authorities are
taking actions to fight corruption and improve transparency in the
operations of government."
The mission met with Minister Coordinator of the Government, Jorge
Hern ndez-Alcerro, Head of the Economic Cabinet, Marlon T bora,
Acting Central Bank Governor, Manuel Bautista, Minister of
Finance, Wilfredo Cerrato, and Minister Director of the Tax
Directorate, Miriam Guzm n, President of the National Commission
of Banking and Insurance, Ethel Deras, Minister of Infrastructure
and Public Services, Roberto Ord¢¤ez, Vice Minister of Public
Investment and Credit, Rocio T bora, other senior government
officials, members of congress, and private sector
representatives.
The mission would like to thank the authorities and private sector
representatives for a cordial and productive dialogue, as well as
for their excellent cooperation and hospitality.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 22, 2015, Standard & Poor's Ratings Services raised its long-
term foreign and local currency sovereign credit ratings on the
Republic of Honduras to 'B+' from 'B'. The outlook is stable.
S&P affirmed its short-term foreign and local currency sovereign
credit ratings on Honduras at 'B'. S&P also raised the transfer
and convertibility assessment to 'BB-'.
======================
P U E R T O R I C O
======================
DORAL FINANCIAL: Investors' Suit vs. Wakeman, Wahlman Continues
---------------------------------------------------------------
In the case captioned ROBERT BLUE, Individually and on Behalf of
All Others Similarly Situated, Plaintiffs, v. DORAL FINANCIAL
CORPORATION, GLEN R. WAKEMAN, ROBERT E. WAHLMAN, PENKO IVANOV,
DAVID HOOSTON, ENRIQUE R. UBARRI-BARAGANO and CHRISTOPHER C.
POULTON, Defendants, CIVIL NO. 14-1393 (GAG) (D.P.R.), Judge
Gustavo A. Gelpi of the United States District Court for the
District of Puerto Rico granted in part and denied in part a
motion to dismiss, and, subsequently, dismissed the case against
the individual defendants, except for Glen R. Wakeman and Robert
E. Wahlman against whom the case continues.
A putative class action lawsuit was filed on behalf of investors
against the holding company of Doral Bank, Doral Financial
Corporation, and several current and prior company executives.
The complaint alleged that the plaintiffs purchased common stock
of Doral between April 2, 2012, and May 1, 2014, at prices that
were artificially inflated by the defendants' false and misleading
statements.
The defendants moved to dismiss the complaint pursuant to the
Private Securities Litigation Reform Act of 1995 and Federal Rules
of Civil Procedure 9(b) and 12(b)(6), arguing that the plaintiffs
failed to state a single claim under the applicable federal
securities laws upon which relief can be granted.
Judge Gelpi analyzed the motion to dismiss only as to the
individual defendants because the case against Doral was
automatically stayed when it filed a voluntary petition under
Chapter 11 of the Title 11 of the Bankruptcy Code.
Judge Gelpi found that the allegations regarding Wakeman and
Wahlman's participation in the fraudulent scheme by knowingly
manipulating the ALLL and PLLL that was reported in the numerous
SEC filings, conference calls, and press releases are sufficient
to meet the heightened pleading standards for scienter.
However, Judge Gelpi found that with the remaining defendants, the
plaintiffs failed to plead their involvement in the purported
fraudulent scheme with the particularity required under Rule 9(b)
and the Private Securities Litigation Reform Act of 1995.
A full-text copy of Judge Gelpi's July 22, 2015 opinion and order
is available at http://is.gd/gyQmVNfrom Leagle.com.
Robert Blue is represented by:
Erin W. Boardman, Esq.
Robert M. Rothman, Esq.
ROBBINS GELLER RUDMAN & DOWD LLP
58 South Service Road, Suite 200
Melville, NY 11747
Tel: (631) 367-7100
Fax: (631) 367-1173
Email: eboardman@rgrdlaw.com
rrothman@rgrdlaw.com
-- and --
Frank J. Johnson, Esq.
JOHNSON & WEAVER, LLP
600 West Broadway, Suite 1540
San Diego, CA 92101
Tel: (619) 230-0063
Fax: (619) 255-1856
Email: frankj@johnsonandweaver.com
-- and --
Andres W. Lopez, Esq.
THE LAW OFFICES OF ANDRES W. LOPEZ, P.S.C.
John Dalessandro is represented by:
Erin W. Boardman, Esq.
ROBBINS GELLER RUDMAN & DOWD LLP
58 South Service Road, Suite 200
Melville, NY 11747
Tel: (631) 367-7100
Fax: (631) 367-1173
-- and --
Francis McConville, Esq.
Jeremy A. Lieberman, Esq.
POMERANTZ, LLP
600 Third Avenue
New York, NY 10016
Tel: (212) 661-1100
Fax: (212) 661-8665
Email: jalieberman@pomlaw.com
-- and --
Frank J. Johnson, Esq.
JOHNSON & WEAVER, LLP
600 West Broadway, Suite 1540
San Diego, CA 92101
Tel: (619) 230-0063
Fax: (619) 255-1856
-- and --
Jorge E. Perez-Casellas, Esq.
Andres W. Lopez, Esq.
THE LAW OFFICES OF ANDRES W. LOPEZ, P.S.C.
Timothy Stump and are represented by:
Francis McConville, Esq.
POMERANTZ, LLP
Mordechai Hakim represented by:
Eric M. Quetglas-Jordan, Esq.
QUETGLAS LAW OFFICE
#1021 Ashford Ave., 2nd Floor
Condado, PR 00908
Tel: (787) 722-0635
Fax: (787) 725-3970
-- and --
Kara M. Wolke, Esq.
Leanne E. Heine-Solish, Esq.
Lionel Z. Glancy, Esq.
Peter A. Binkow, Esq.
GLANCY PRONGAY & MURRAY LLP
1925 Century Park East Suite 2100
Los Angeles, CA 90067
Tel: (310) 201-9150
Fax: (310) 432-1495
Email: kwolke@glancylaw.com
lheine@glancylaw.com
lglancy@glancylaw.com
pbinkow@glancylaw.com
-- and --
Robert M. Rothman, Esq.
ROBBINS GELLER RUDMAN & DOWD LLP
58 South Service Road, Suite 200
Melville, NY 11747
Tel: (631) 367-7100
Fax: (631) 367-1173
Email: rrothman@rgrdlaw.com
Doral Financial Corporation, Glenn R. Wakeman, Robert E. Wahlman,
Penko Ivanov, David Hooston, Enrique R. Ubarri-Baragano, and
Christopher C. Poulton are represented by:
Anthony Antonelli, Esq.
Kevin P. Broughel, Esq.
Kevin C. Logue, Esq.
Shahzeb Lari, Esq.
PAUL HASTINGS LLP
75 East 55th Street
New York, NY 10022
Tel: (212) 318-6000
Fax: (212) 319-4090
Email: anthonyantonelli@paulhastings.com
kevinbroughel@paulhastings.com
shahzeblari@paulhastings.com
Jose A. Acosta-Grubb, Esq.
Jose L. Ramirez-Coll, Esq.
FIDDLER GONZALEZ & RODRIGUEZ, P.S.C.
254 Munoz Rivera Ave. 6th floor
Hato Rey, PR 00918
Tel: (787) 753-3113
Email: jacosta@fgrlaw.com
jramirez@fgrlaw.com
About Doral Financial
Doral Financial Corporation is a holding company whose primary
operating asset was equity in Doral Bank. DFC maintains offices
in New York City, Coral Gables, Florida and San Juan, Puerto Rico.
DFC has three wholly-owned subsidiaries: (i) Doral Properties,
Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and
(iii) Doral Recovery, Inc.
On Feb. 27, 2015, regulators placed Doral Bank into receivership
and named the Federal Deposit Insurance Corp. as receiver. Doral
Bank served customers through 26 branches located in New York,
Florida, and Puerto Rico.
DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-
10573) in Manhattan on March 11, 2015. The case is assigned to
Judge Shelley C. Chapman.
DFC estimated $50 million to $100 million in assets and $100
million to $500 million in debt as of the bankruptcy filing.
The Debtor tapped Ropes & Gray LLP as counsel.
The Debtor's Chapter 11 plan and Disclosure Statement are due July
9, 2015. The initial case conference is set for April 10, 2015.
The U.S. trustee overseeing the Chapter 11 case of Doral Financial
Corp. appointed five creditors of the company to serve on the
official committee of unsecured creditors.
MMM HOLDINGS: S&P Lowers Counterparty Credit Rating to 'D'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
counterparty credit and secured debt ratings on MMM Holdings Inc.
to 'D' from 'B-', and removed all ratings from CreditWatch, where
S&P placed them with developing implications on June 5, 2015.
"MMM -- the downstream holding company of Innovacare Inc. -- did
not make its quarterly amortization payment on its first-lien term
loan for third-quarter 2015, said Standard & Poor's credit analyst
James Sung. "The company has entered into a forbearance agreement
with its lenders that will provide time for the parties to
negotiate a potential restructuring of the credit agreement. The
forbearance agreement is effective until the earlier of Oct. 30,
2015, or various termination events outlined in the document."
MMM has received waivers from its lenders since third-quarter 2014
after it fell out of compliance with its maximum debt-leverage
financial maintenance covenant. However, the latest waiver, which
expired Sept. 30, 2015, was not extended because the waivers were
contingent on the company continuing to make its quarterly
principal and interest payments, which it did not do for the
latest period. MMM is a co-borrower with MSO of Puerto Rico Inc.
under a $505 million credit agreement that includes a $30 million
revolver due Dec. 12, 2017, and a $475 million term loan due Dec.
12, 2017 ($352 million outstanding as of June 30, 2015).
MMM faces liquidity issues that are worse than S&P expected
because of substantial earnings deterioration. The company, which
is a leading Medicare/Medicaid managed care company in Puerto
Rico, has been hurt by Medicare Advantage rate cuts, higher-than-
expected medical costs, health insurance industry fees, and
several one-time items. MMM is dependent on management fees and
dividends from its subsidiaries (including regulated insurance
entities) to meet its holding company expenses including debt
service. The regulated entities do not guarantee MMM's debt and
are weakly capitalized based on risk-based capital (RBC) measures.
The company chose to forgo its quarterly amortization payment to
build up capital at its regulated entities to meet regulatory
requirements.
"We will not raise our counterparty credit and debt ratings on MMM
from 'D' until payments resume in accordance with the original
terms," Mr. Sung added. "If the terms are amended and become
legally effective, we may raise the ratings from 'D' unless we
believe a default under the amended terms is virtually certain."
PUERTO RICO: Rep. Floats Plan For Treasury Bond Guarantee
---------------------------------------------------------
Carmen Germaine at Law360.com reports that Puerto Rico's
congressional representative has introduced legislation that would
allow the U.S. Treasury Department to guarantee repayment of new
bonds issued by the commonwealth, provided that Puerto Rico
improves the management of its public finances.
Congressman Pedro Pierluisi, Puerto Rico's nonvoting
representative, introduced the Puerto Rico Financial Improvement
and Bond Guarantee Act of 2015, according to Law360.com. The bill
would give the Treasury Department the ability to guarantee
repayment of principal and interest on future bonds issued by
government entities in Puerto Rico, the report notes.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2015, Standard & Poor's Ratings Services lowered its
ratings on the Commonwealth of Puerto Rico's tax-backed debt to
'CC' from 'CCC-' and removed the ratings from CreditWatch, where
they had been placed with negative implications July 20. The
outlook is negative.
================================
T R I N I D A D & T O B A G O
================================
TRINIDAD & TOBAGO: Mixed Views From Country
-------------------------------------------
Kinnesha George at Trinidad and Tobago Newsday reports that
President of the Tobago Chamber of Commerce Dianne Hadad says the
TT$2.772 billion allocation for Tobago in Budget 2016 was what the
chamber "expected" to get from a "partial budget".
Ms. Hadad reaction was one of several responses Newsday received
as stakeholders in Tobago business and tourism sector met to
listen to Finance Minister Colm Imbert's presentation of the
2015/2016 fiscal package, according to Trinidad and Tobago
Newsday. "It was not a bad budget in terms of Mr. Imbert's
preamble and of course he laid the foundation for what we should
expect," she said.
"The past always affects So, I don't think we should be
surprised," Ms. Hadad added, notes the report.
However, from a general perspective the business community would
not be too pleased as to the normal formula, which is the taxation
to business again," Ms. Hadad said, the report notes.
Chairman of the Tobago Hotel and Tourism Association Chris James
noted that his association welcomes all the talk about a new
airport, which he deemed as a plus for the sister-isle, the report
relays.
According to Trinidad and Tobago Newsday, Businessman, David Wong
expressed concern about how the Tobago House of Assembly (THA)
will manage and spend its allocation. "One of the things I did not
hear Minister Imbert said is the issue of efficacy of spending.
One of the talks since the election is management efficiency,
quality of spending and implementation of projects and so forth.
"But we are not hearing in the budget where he is going to ensure
that we get accountability for money spent. I guess we have to
wait to see these things," Mr. Wong said, the report discloses.
Ken Biscombe said he was happy with the budget. One of the things
which Biscombe said he was pleased about was the Public Private
Partnership that the government mentioned and he is hoping this
system would be utilised in Tobago and the THA could use it as a
means to invigorate the sluggish Tobago economy, the report
relays.
"Infrastructural development is important," Mr. Biscombe added.
"I think if we were to get involved in that we would be far more
advanced," Mr. Biscombe said, the report notes. Another
Tobagonian, Curtis Williams, told Newsday he was pleased with the
allocation given to run the sister-isle's operation for the next
12 months.
"I am happy with the incentive for the agricultural sector with
the removal of taxes on equipment and chemical and stuff, that is
a really good incentive for us," Mr. Williams said, notes the
report. Carlos Dillon, however, was a bit cautious on giving a
thumbs up to the budget. "Usually they talk about tourism as a
driver to change the scheme of things, however I did not hear
enough about how much money they are going to spend and especially
for the development of Tourism as an industry," Mr. Dillon added.
Tobagonian Winston Gordon said he felt the budget was good news
for Tobago.
"I must say that I was pleasantly surprised at the delivery of the
Finance Minister as there were some doubt as to whether he was
capable with such a critical portfolio. But I think he came
through although he is the new kid on the block in terms of the
Finance Ministry position," Mr. Gordon said, the report adds.
=================
X X X X X X X X X
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LATAM: ECLAC Stresses Importance of Investment to Recover Growth
----------------------------------------------------------------
Caribbean360.com reports that executive Secretary of the Economic
Commission for Latin America and the Caribbean (ECLAC) Alicia
Barcena said promoting public investment is crucial for sustaining
economic growth in the region.
And Ms. Barcena said the fall in the investment rate is one of the
main factors explaining the reduction of potential growth in the
region's economies, according to Caribbean360.com.
According to the last projections by ECLAC released, the overall
Latin America and Caribbean gross domestic product will contract -
0.3 per cent in 2015 and will grow 0.7 per cent in 2016 (although
the Caribbean itself is expected to register growth in both
years), the report relates.
"The fall of investment in several countries, especially in
sectors related to production and export of commodities, sets a
need to look for alternatives to compensate this negative effect.
The investment in infrastructure can have important benefits in
medium-and long-term growth," the report quoted Ms. Barcena as
saying.
The ECLAC official also noted that, in the current context, fiscal
policy must not only be focused on moderating the economic cycles,
but also towards fostering productive development and structural
change, through the protection of investment throughout time, the
report notes.
The report relays that Ms. Barcena also argued that fiscal policy
must play a redistributive role and fiscal reforms must focus on
income tax and on building progressive fiscal systems that fight
evasion.
Ms. Barcena also referred to the importance of working for the
economic autonomy of women, considering that is one of the main
tools for fighting inequality, the report adds.
LATIN AMERICA: "Painful" Transition Awaits Region, IMF Says
-----------------------------------------------------------
EFE News reports that David Lipton, first deputy managing director
of the International Monetary Fund, or IMF, denied Latin America's
dependence on Chinese demand for raw materials has been a "curse,"
although he admitted the transition and adjustment will be
"painful."
"The dependence on China has not been a curse, it has been an
unexpected benefit," explained Mr. Lipton in an exclusive
interview with EFE, at Lima's Museum of the Nation, one of the
venues for the IMF and World Bank Annual Meetings to be held over
this weekend, according to EFE News.
According to latest IMF estimates, Latin America will shrink by
0.3 percent this year, spurred by the slowdown of the Asian
economy and the subsequent fall in raw material prices due to
reduced demand from China, the report notes.
"The countries are going to have to contend with lower (raw
material) prices, it will inevitably be a time of transition and
transitions and adjustments are painful, but there are also
opportunities," said the IMF economist, the report relays.
The report notes that Mr. Lipton cited the example of the recently
signed Trans-Pacific Partnership, or TPP, between the U.S. and 11
other countries in the Pacific Basin, including Peru, Chile and
Mexico, and of which China is not a part.
"It goes to show there can be an integration with Asia that can
help Latin America to enter global supply chains which it has so
far been unable to penetrate," said an optimistic Mr. Lipton, who
served in Bill Clinton's administration during the 1990s and in
the Obama administration more recently, between 2009 and 2011, the
report discloses.
Mr. Lipton added even a slowed down China that will grow at 6.8
percent according to IMF forecasts, will still contribute more to
the global economy than it did at the beginning of the century
because its economy is much larger, and with a shift towards an
economic model based on domestic consumption, the report relays.
"There are 1.3 billion people in China and many people are going
to join the middle class, and that means that in the future China
will be huge market for services and products," the report quoted
Mr. Lipton as saying.
"The question is," Mr. Lipton added, "if it is possible to adapt
from selling raw materials to China to serving the needs of
Chinese households. We'll see who the winner is," Mr. Lipton
said, the report relays.
***********
Monday's edition of the TCR-LA delivers a list of indicative
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***********
S U B S C R I P T I O N I N F O R M A T I O N
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