/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/151015.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, October 15, 2015, Vol. 16, No. 204 Headlines B A H A M A S BAHA MAR: Bahamian Prime Minister Says Resort to Open Early 2016 B R A Z I L BRAZIL: Crisis is Boon to BTG-Owned Firm as Profit, Hiring Surge C A Y M A N I S L A N D S AXIAL CAPITAL: Placed Under Voluntary Wind-Up AXIAL CAPITAL NEUTRAL: Placed Under Voluntary Wind-Up BLACKSTONE DYNAMIC: Commences Liquidation Proceedings BLACKSTONE ZURICH: Commences Liquidation Proceedings CRESTLINE PLUS: Commences Liquidation Proceedings EAST LANE RE IV: Creditors' Proofs of Debt Due Oct. 19 LIONGATE MULTI-STRATEGY: Creditors' Proofs of Debt Due Oct. 28 MOKSHA CAPITAL (M): Creditors' Proofs of Debt Due Oct. 28 MOKSHA CAPITAL (P): Creditors' Proofs of Debt Due Oct. 28 MOKSHA RE: Creditors' Proofs of Debt Due Oct. 28 PERENNIAL INVESTMENT: Placed Under Voluntary Wind-Up SLS OFFSHORE: Placed Under Voluntary Wind-Up STK CAPITAL: Placed Under Voluntary Wind-Up D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: To Buy Anti-seaweed Barriers P U E R T O R I C O PUERTO RICO: Warehouse Stores' Sales Grow But Job Creation Lags T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Vendors' TT1$ Increase a Sign of Inflation TRINIDAD & TOBAGO: Senior Economist Sees Rise in Unemployment - - - - - ============= B A H A M A S ============= BAHA MAR: Bahamian Prime Minister Says Resort to Open Early 2016 ---------------------------------------------------------------- Bloomberg News reports that Baha Mar, the $3.5 billion Bahamas resort at the center of a bitter bankruptcy dispute, will open early next year if Prime Minister has anything to say about it. Perry Christie Christie voiced confidence in an Oct. 9 interview that talks by Baha Mar, the state-owned China Construction America Inc. and the Export-Import Bank of China will yield an agreement allowing workers to finish the mega-resort, according to Bloomberg News. Bloomberg News notes that court-appointed provisional liquidators and representatives of the Bahamian government are also involved in the discussions. "Whatever levels of pessimism that exist, I choose to believe that we are going to have an outcome that will result in early construction resumption and early opening of that resort," the prime minister said, Bloomberg News relates. Baha Mar filed for bankruptcy June 29 in Delaware after delays forced it to miss the March 27 opening of the four-hotel resort and golf complex, Bloomberg News says. The Supreme Court of the Bahamas refused to recognize the U.S. proceeding and approved the appointment of provisional liquidators to protect the assets of the resort, Bloomberg News notes. The U.S. bankruptcy court later threw out most of Baha Mar's case. Before the bankruptcy, the contractor and developer spent months fighting over missed deadlines, invoices and change orders, Bloomberg News discloses. The contractor didn't complete the project by the original deadline in late 2014 or an extended deadline in March, Bloomberg News notes. When Baha Mar withheld payments after the March deadline passed, CCA ceased work and refused to complete the project until it got paid, according to court papers, Bloomberg News relays. "Whil[e] there is still work to be done, it is clear that all involved are focused on quickly reaching a viable solution to ensure that the Baha Mar resort is able to open for business for the benefit of all stakeholders, including the Bahamian people," liquidators, of, and Edmund Rahming KryS Global Alastair Beveridge and, of, said in a statement obtained by Bloomberg News. Nick Cropper AlixPartners Baha Mar was 97 percent complete at the time of the bankruptcy. The resort is expected to employ about 5,000 people with an annual payroll of more than $130 million, the developers said in court papers, Bloomberg News discloses. That would represent 12 percent of the gross domestic product of the Bahamas, according to court papers, Bloomberg News notes. "At the end of the day the Bahamas must come out with that resort open and functioning and must be open early next year at the latest," Christie said, Bloomberg News relays. The U.S. bankruptcy is In re Northshore Mainland case Services Inc., 15- 11402, U.S. Bankruptcy Court, District of Delaware (Wilmington). About Baha Mar Orlando, Florida-based Northshore Mainland Services Inc., Baha Mar Enterprises Ltd., and their affiliates sought protection under Chapter 11 of the Bankruptcy Code on June 29, 2015 (Bankr. D.Del., Case No. 15-11402). Baha Mar owns, and is in the final stages of developing, a 3.3 million square foot resort complex located in Cable Beach, Nassau, The Bahamas. The bankruptcy cases are assigned to Judge Kevin J. Carey. The Debtors are represented by Paul S. Aronzon, Esq., and Mark Shinderman, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los Angeles, California; and Gerard Uzzi, Esq., Thomas J. Matz, Esq.,and Steven Z. Szanzer, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York. The Debtors' Delaware counsel are Laura Davis Jones, Esq., James E. O'Neill, Esq., Colin R. Robinson, Esq., and Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware. The Debtors' Bahamian counsel is Glinton Sweeting O'Brien. The Debtors' special litigation counsel is Kobre & Kim LLP. The Debtors' construction counsel is Glaser Weil Fink Howard Avchen & Shapiro LLP. The Debtors' investment banker and financial advisor is Moelis Company LLC. The Debtors' claims and noticing agent is Prime Clerk LLC. * * * In September 2015, Judge Carey dismissed the Chapter 11 Proceedings filed in the Delaware court by Baha Mar chief executive officer Sarkis Izmirlian, ruling in favor of the contractor on the project, China Construction America (CCA), and its financier, the China Export-Import Bank (CEXIM); but denied the motion to dismiss Northshore Mainland Services, Inc.'s bankruptcy case. =========== B R A Z I L =========== BRAZIL: Crisis is Boon to BTG-Owned Firm as Profit, Hiring Surge ---------------------------------------------------------------- Bloomberg News reports that Latin America's biggest distressed- asset management firm is hiring 40 people in the next four months and moving to a larger office in Sao Paulo as Brazil's financial crisis pushes bankruptcy filings to a record. Recovery do Brasil Consultoria SA, owned by Grupo BTG Pactual, will also add workers in 2016 as it boosts its current staff of 220 to manage a loan portfolio that's doubled since 2013, according to Chief Executive Officer Flavio Suchek, reports Bloomberg News. The firm now manages about BRL50 billion ($13 billion), Mr. Suchek said. "We are just in the beginning of a bad cycle," Mr. Suchek said in an interview in Sao Paulo earlier this month, Bloomberg News notes. "Next year we will see additional economic contraction, unemployment will continue to rise, interest rates will be stable or scaling up a bit, and all that will lead to a turning point in Brazil's distressed-asset market." Bloomberg News relays that the market for bad loans has surged with Brazil's jobless rate, which reached 7.6 percent in August, the highest level in more than five years. The number of corporations filing for legal protection from creditors rose to a record for the third consecutive month in September, to 147 cases, almost tripling from a year earlier, according to data provider Serasa Experian. Economists predict the nation will log its longest recession since the Great Depression this year and next while President Dilma Rousseff is trying to shore up fiscal coffers to avoid additional credit-rating downgrades, Bloomberg News notes. Standard & Poor's cut Brazil to junk last month and the International Monetary Fund predicted that Brazil's economy would shrink 3 percent this year. A probe into corruption at Petroleo Brasileiro SA is adding to increased delinquencies on loans as suppliers to the oil company get pushed into a credit squeeze, Bloomberg News notes. Mr. Suchek said all that bad news will mean about BRL20 billion in face value of distressed debt will change hands in Brazil this year, up from BRL15 billion in 2014, Bloomberg News discloses. Recovery do Brasil, which already added 10 employees in the past month, has a market share of about 70 percent, he said, Bloomberg News relays. Foreign investors are seeing the market's potential as well, notes the report. Norfolk, Virginia-based PRA Group Inc., which purchases non- performing loans in the U.S. and Europe, bought control of Brazil's second-biggest distressed-debt management firm, RCB Investimentos SA, in a transaction announced in August, Bloomberg News notes. Recovery serves BTG funds, other investors and banks by helping to set prices for non-performing loan portfolios and marking them to market, Bloomberg News says. It also sets a goal for credit recovery, defines a strategy to recover each type of overdue debt and hires third-party collection firms, Bloomberg News notes. Profit will probably jump to about BRL100 million this year from BRL70 million in 2014, Mr. Suchek said, Bloomberg News adds. ========================== C A Y M A N I S L A N D S ========================== AXIAL CAPITAL: Placed Under Voluntary Wind-Up --------------------------------------------- On Aug. 29, 2014, the sole shareholder of Axial Capital Offshore, Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Axial Capital Management, LLC c/o Daniella Skotnicki Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands AXIAL CAPITAL NEUTRAL: Placed Under Voluntary Wind-Up ----------------------------------------------------- On Aug. 28, 2014, the sole shareholder of Axial Capital Neutral Offshore Fund, Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Axial Capital Management, LLC c/o Daniella Skotnicki Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands BLACKSTONE DYNAMIC: Commences Liquidation Proceedings ----------------------------------------------------- On Sept. 17, 2015, the sole shareholder of Blackstone Dynamic Alpha 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: Grant Jackson Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 BLACKSTONE ZURICH: Commences Liquidation Proceedings ---------------------------------------------------- On Sept. 17, 2015, the sole shareholder of Blackstone Zurich 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: Grant Jackson Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 CRESTLINE PLUS: Commences Liquidation Proceedings ------------------------------------------------- On Sept. 4, 2015, the sole shareholder of Crestline Plus 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: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 EAST LANE RE IV: Creditors' Proofs of Debt Due Oct. 19 ------------------------------------------------------ The creditors of East Lane RE IV 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 Sept. 18, 2015. The company's liquidator is: Carl Gosselin Wilmington Trust (Cayman), Ltd. P.O. Box 32322 Grand Cayman KY1-1209 Cayman Islands Telephone: (345) 640-6712 LIONGATE MULTI-STRATEGY: Creditors' Proofs of Debt Due Oct. 28 -------------------------------------------------------------- The creditors of Liongate Multi-Strategy GP Limited 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. 15, 2015. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman Telephone: (345) 943-3100 MOKSHA CAPITAL (M): Creditors' Proofs of Debt Due Oct. 28 --------------------------------------------------------- The creditors of Moksha Capital Partners Re (M) Ltd. 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 July 30, 2015. The company's liquidator is: Russell Smith c/o Antoine Powell Telephone: (345) 815 4558 BDO CRI (Cayman) Ltd. Governors Square, Floor 2 - Building 3 23 Lime Tree Bay Ave P.O. Box 31229 Grand Cayman KY1 1205 Cayman Islands MOKSHA CAPITAL (P): Creditors' Proofs of Debt Due Oct. 28 --------------------------------------------------------- The creditors of Moksha Capital Partners Re (P) Ltd. 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 July 30, 2015. The company's liquidator is: Russell Smith c/o Antoine Powell Telephone: (345) 815 4558 BDO CRI (Cayman) Ltd. Governors Square, Floor 2 - Building 3 23 Lime Tree Bay Ave P.O. Box 31229 Grand Cayman KY1 1205 Cayman Islands MOKSHA RE: Creditors' Proofs of Debt Due Oct. 28 ------------------------------------------------ The creditors of Moksha RE SPC Ltd. 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. 9, 2015. The company's liquidator is: Russell Smith c/o Antoine Powell Telephone: (345) 815 4558 BDO CRI (Cayman) Ltd. Governors Square, Floor 2 - Building 3 23 Lime Tree Bay Ave P.O. Box 31229 Grand Cayman KY1 1205 Cayman Islands PERENNIAL INVESTMENT: Placed Under Voluntary Wind-Up ---------------------------------------------------- On Sept. 7, 2015, the shareholders of Perennial Investment Holdings Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Caroline Baxter Telephone: 0044 1534 880888 Facsimile: 0044 1534 634122 Second Floor, Forum 4 Greenville Street St Helier, Jersey Channel Islands SLS OFFSHORE: Placed Under Voluntary Wind-Up -------------------------------------------- On Dec. 26, 2014, the sole shareholder of SLS Offshore Fund, Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: SLS Management, LLC c/o Justin Savage Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands STK CAPITAL: Placed Under Voluntary Wind-Up ------------------------------------------- On Sept. 18, 2015, the sole shareholder of STK Capital Brazil Equities Investment Fund, SPC resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Jody Powery-Gilbert Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: To Buy Anti-seaweed Barriers ------------------------------------------------ Dominican Today reports that the government of the Dominican Republic will call for tenders to buy barriers to keep the seaweed from swamping the coast of the country, whose economy is heavily dependent on its beaches. Environment minister Bautista Rojas made the announcement in a meeting at Environment with officials of the Council of Municipalities and of Tourism Infrastructure Dept. (CEIZTUR), whose director Kirsis de los Santos said the barriers costs US$250 per square meter, according to Dominican Today. Although Ms. de los Santos didn't specify the number of meters required, the official cited the case of Boca Chica Beach, which she affirms has 800,000 square meters, the report relates. Ms. de los Santos said the barriers will be placed in Juan Dolio and Guayacanes, and some other beaches in the country's southern coast, the report notes. Ms. de los Santos said operation to clean up the seaweed starts this week, and will increase with additional 700 workers, in addition to the 581 already working in crews, the report relays. ====================== P U E R T O R I C O ====================== PUERTO RICO: Warehouse Stores' Sales Grow But Job Creation Lags --------------------------------------------------------------- EFE News reports that warehouse stores' sales are growing in Puerto Rico, but the giant retailers are creating fewer jobs on the island, a study conducted by the University of Puerto Rico, or UPR, found. Figures from the latest Economic Census show that sales at Puerto Rico's warehouse stores rose by $1.4 million in 2012 but that they "created proportionately fewer jobs than small and midsize enterprises, or SMEs," UPR Census Information Center director Jose Caraballo said, according to EFE News. The Census Information Center at UPR Cayey said that, according to the latest Economic Census, warehouse stores hire an average of one employee for every $280,000 in sales, whereas small and midsize stores hire one for every $115,000 in sales, the report notes. "Job creation is twice as probable at SMEs than at warehouse stores, which operate with a 'self-serve' concept," Mr. Caraballo said in a statement, adding that most warehouse stores' employees work part time and at SMEs they tend to work full time, the report relays. "In Puerto Rico there's a crisis in job creation, and as long as superstores keep expanding, employment in this sector will continue to shrink," Mr. Caraballo said with reference to warehouse clubs like Sam's and Costco, the report notes. Mr. Caraballo said that establishments that sold $4 million or more individually ended 2012 with 72 percent of retail sales, compared with 66 percent in 2007, the report discloses. The percentage of jobs these warehouse stores offer in this market, however, stayed at 51 percent for both periods, according to the Economic Census prepared by the U.S. Census Bureau, the report relays. Retail is the second-largest economic sector in Puerto Rico in terms of employment volume, Mr. Caraballo said, the report notes. The mission of the Census Information Center, an affiliate of the Census Bureau, is to improve access to economic and population census data for minority groups and underserved communities that are frequently undercounted, the report says. It also prepares studies to order, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 14, 2015, Standard & Poor's Ratings Services lowered its ratings on the Commonwealth of Puerto Rico's tax-backed debt to 'CC' from 'CCC-' and removed the ratings from CreditWatch, where they had been placed with negative implications July 20. The outlook is negative. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Vendors' TT1$ Increase a Sign of Inflation ------------------------------------------------------------- Trinidad and Tobago Newsday reports that the recent TT$1 increase implemented by some doubles vendors is being cited by social group, Citizens For A Brighter Tomorrow (CFABT), as an example of "the impact of the inflation in cost of living on micro- entrepreneurs", which the group claims was not "factored into the consideration for the budget presentation." In a statement earlier, CFABT said the Doubles industry is made up of family operations in which the money earned from the sale of doubles and other fried foods is the vendor's "sole source of income," according to Trinidad and Tobago Newsday. "The unstable economic environment, coupled with an unsympathetic budget, generates inflation that hits micro-industries more severely than small, medium and large enterprises," CFABT said, the report notes. As such, CFABT said doubles vendors and other micro-industries would neither have the fiscal flexibility nor resilience to "weather this climate as other businesses would be able to do," the report relates. "While the doubles vendors are among the first micro-entrepreneurs to engage in these counter-inflation measures, it can be expected that many others will soon follow suit, as inflation incurs more encumbrance upon cash-reliant micro-industries as a result of them having limited access to the financial instruments necessary to it," CFABT stated, the report discloses. According to the group, this problem will "undoubtedly arise" due to the combination of tight fiscal and monetary policies in the 2015/2016 budget which CFABT claims "now creates a disproportionate burden" on all micro-entrepreneurs who are expected to compete against more sophisticated businesses in an open market, while also struggling to ensure their families are confronted with the least amount of financial risk possible. The People's National Movement (PNM) also came in for criticism for what CFABT called the party's history of "rigid fiscal policies" which have been focused on industrial and infrastructural development "to the detriment of small and micro- enterprises, and to a wider extent, the poor and lower income citizens in this nation," the report relays. According to CFABT, if there is to be macro- economic stability in Trinidad and Tobago, smaller business interests need to be treated with the same level of respect as labor markets, financial systems, and external trade, "given our economy's dependence on them," the report adds. TRINIDAD & TOBAGO: Senior Economist Sees Rise in Unemployment ------------------------------------------------------------- Trinidad Express reports that senior economist Dr. Ronald Ramkissoon has projected an increase in the unemployment rate in the coming months, given the country's large fiscal deficit and slow economic growth. Speaking at a post-budget forum hosted by the Trinidad and Tobago Manufacturers' Association (TTMA) at the Arthur Lok Jack Graduate School of Business, Mt Hope, Dr. Ramkissoon urged the business sector and citizens to be prepared for other major challenges ahead, according to Trinidad Express. "It is likely that we will see some increase in borrowing and some increase in the national debt. I think the expectation over the next six months, over the next year or perhaps three years, is in fact we are going to be in a very soft economy and an economy that is going to be grappling with low revenues from the major engine of growth and decisions are going to have to be made in respect of whether we can sustain a TT$63 billion expenditure," Dr. Ramkissoon said, the report adds. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2015. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *