/raid1/www/Hosts/bankrupt/TCRLA_Public/151102.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
Monday, November 2, 2015, Vol. 16, No. 216
Headlines
A N T I G U A & B A R B U D A
STANFORD INT'L: Judges Reject Owner's Appeal, Uphold Sentence
B R A Z I L
GRUPO RBS: S&P Revises Outlook to Negative & Affirms 'BB+' CCR
JBS SA: S&P Affirms 'BB+' Rating; Outlook Stable
MARFRIG GLOBAL: S&P Affirms 'B+' CCR; Outlook Stable
TRANSMISSORA ALIANCA: S&P Affirms 'BB+' CCR; Outlook Negative
C A Y M A N I S L A N D S
BABYLON SF: Creditors' Proofs of Debt Due Nov. 12
CHELSTON PARK: Creditors' Proofs of Debt Due Nov. 11
ECOLAB CAYMAN 1: Placed Under Voluntary Wind-Up
GRENADIER LIMITED: Placed Under Voluntary Wind-Up
LF SPV: Placed Under Voluntary Wind-Up
MORGAN STANLEY APOLLO: Creditors' Proofs of Debt Due Nov. 4
MORGAN STANLEY APOLLO 2: Creditors' Proofs of Debt Due Nov. 4
MSPEA APOLLO: Creditors' Proofs of Debt Due Nov. 4
MSPEA APOLLO 2: Creditors' Proofs of Debt Due Nov. 4
MY-TECH HOLDINGS: Placed Under Voluntary Wind-Up
NEW BARYON: Placed Under Voluntary Wind-Up
PAG SF: Creditors' Proofs of Debt Due Nov. 12
SOUTH CHINA: Creditors' Proofs of Debt Due Nov. 12
C H I L E
AUTOMOTORES GILDEMEISTER: Weak Vehicle Sales Pressure Results
C O L O M B I A
AVIANCA HOLDINGS: 2015 EBIT Margin Under Pressure, Fitch Says
C O S T A R I C A
BANCO INTERNACIONAL: S&P Affirms 'BB' ICR; Outlook Remains Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Time to Dip Into US$7.82BB Pension Fund
DOMINICAN REPUBLIC: US$14.7BB Budget Sails Through Congress
G U A T E M A L A
GUATEMALA: S&P Affirms 'BB/B' FC Rating; Outlook Stable
M E X I C O
MULTICAT MEXICO: S&P Puts Cl. C Notes' B- Rating on Watch Negative
SIXSIGMA NETWORKS: S&P Lowers CCR to 'B+'; Outlook Stable
P U E R T O R I C O
GLOBAL COMMODITY: Case Summary & Largest Unsecured Creditor
PUERTO RICO: Concerns Grow as Island Debates Fiscal Control Board
PUERTO RICO: Default Won't Derail Market, Bond Insurer Says
STANDARD REGISTER: Hearing on Plan, Disclosures Set for Nov. 19
STANDARD REGISTER: To Sell Terre Haute Property for $149,082
STANDARD REGISTER: Plan Solicitation Period Extended to March 7
STANDARD REGISTER: Says Pennsylvania Tax Liability Must Be Slashed
T R I N I D A D & T O B A G O
CARIBBEAN AIRLINES: Chief Executive Officer Resigns
TRINIDAD & TOBAGO: Central Bank Releases US$500 Million
V I R G I N I S L A N D S
MIG LLC: Needs Plan Filing Extension Due to Adv. Proceeding in BVI
QUEBECOR WORLD: Quad/Graphics Wins Dismissal of Ex-Worker's Suit
X X X X X X X X X
LATAM: External Headwinds, Local Challenges Affect Growth Prospect
* BOND PRICING: For the Week From Oct. 26 to Oct. 30, 2015
- - - - -
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A N T I G U A & B A R B U D A
===============================
STANFORD INT'L: Judges Reject Owner's Appeal, Uphold Sentence
-------------------------------------------------------------
The Daily Observer reports that a United States federal appellate
court has let stand the 110 year prison term imposed on investment
banker Robert Allen Stanford.
Mr. Stanford was convicted in 2012 for masterminding a Ponzi
scheme that involved his Antigua-based Stanford International Bank
(SIB), according to The Daily Observer.
A three-judge panel of the fifth US Circuit Court of Appeals
rejected Stanford's claims that his indictment was defective and
that the jury received faulty instructions, the report relays.
The report notes that the panel also dismissed Mr. Stanford's
claim that the US government withheld evidence favorable to him,
that the trial judge favored the government and that his sentence
was improper.
The report discloses that Mr. Stanford, who maintained at his
sentencing that he neither ran a Ponzi scheme nor defrauded
anyone, complained in his appeal of the use of the term Ponzi
Scheme at his trial, but the Court said the term captured the
"essence" of his fraud scheme.
The panel said evidence presented at the seven-week trial was
sufficient to convict Mr. Stanford, the report notes. The judges
also said Mr. Stanford's sentence was appropriate, the report
relays.
"The court's sentence of 110 years fell within the 230-year
sentence authorized by the sentencing guidelines and is,
therefore, presumed reasonable," wrote Circuit Judge Edith Brown
Clement for the Appeals Court, the report discloses.
Judge Clement was joined by Circuit Judges Fortunato Benavides and
Stephen Higginson, notes the report.
Mr. Stanford filed his appeal on his own behalf, without an
attorney, the report relays.
The report discloses that Mr. Stanford was accused of bilking
about 25,000 investors worldwide and lived a lifestyle of luxury
and island-hopping.
Investors were told by Mr. Stanford's financial advisers that
their money was safely held in certificates of deposit (CDs) at
SIB in Antigua, but the law enforcement authorities argued that he
used the money to fund his lavish habits, the report adds.
About Stanford Group
The Stanford Financial Group was a privately held international
group of financial services companies controlled by Allen
Stanford, until it was seized by United States (U.S.) authorities
in early 2009.
Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under management
or advisement. Stanford Private Wealth Management served more
than 70,000 clients in 140 countries.
On Feb. 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and records
of Stanford International Bank, Ltd., Stanford Group Company,
Stanford Capital Management, LLC, Robert Allen Stanford, James M.
Davis and Laura Pendergest-Holt and of all entities they own or
control. The February 16 order, as amended March 12, 2009,
directs the Receiver to, among other things, take control and
possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.
The case in district court was Securities and Exchange Commission
v. Securities Investor Protection Corp., 11-mc-00678, U.S.
District Court, District of Columbia (Washington).
The U.S. Securities and Exchange Commission, on Feb. 17, charged
before the U.S. District Court in Dallas, Texas, Mr. Stanford and
three of his companies for orchestrating a fraudulent, multi-
billion dollar investment scheme centering on an US$8 billion
Certificate of Deposit program.
A criminal case was pursued against him in June before the U.S.
District Court in Houston, Texas. Mr. Stanford pleaded not guilty
to 21 charges of multi-billion dollar fraud, money-laundering and
obstruction of justice. Assistant Attorney General Lanny Breuer,
as cited by Agence France-Presse News, said in a 57-page
indictment that Mr. Stanford could face up to 250 years in prison
if convicted on all charges. Mr. Stanford surrendered to U.S.
authorities after a warrant was issued for his arrest on the
criminal charges.
===========
B R A Z I L
===========
GRUPO RBS: S&P Revises Outlook to Negative & Affirms 'BB+' CCR
--------------------------------------------------------------
Standard & Poor's Ratings Services said it revised the outlook on
Grupo RBS (RBS) to negative from stable. At the same time, S&P
affirmed its 'BB+' corporate credit and debt ratings. S&P has
also affirmed its '3' recovery rating, indicating a substantial
recovery expectation of 70%-90%, in the higher band of the range.
In S&P's analysis, it uses the combined financial statements of
RBS TV Comunicacoes S.A. and subsidiaries and RBS M¡dia Digital e
Participacoes S.A. and subsidiaries.
The outlook revision reflects S&P's expectation that RBS's
profitability and operating cash flow generation will remain
stressed over the next several quarters due to challenging
economic conditions in Brazil that are leading to lower
advertising revenues, mainly impacting RBS's newspaper segment, as
well as its TV and radio business lines. Combined with weaker
cash flow generation, S&P believes that the company wouldn't be
able to withstand a potential sovereign default scenario without
defaulting on its obligations. As a result, the rating on RBS is
capped at the level of the sovereign rating on Brazil
(BB+/Negative).
S&P could also lower the ratings over the next 12 to 18 months if
RBS's EBITDA margin and cash flow generation continue to decline
amid persistently weak advertising revenues in its core
businesses, for which expected growth in the digital segment
cannot compensate. These factors could result in an EBITDA margin
of less than 15% and FFO to debt close to or less than 30%,
consistently.
S&P could revise the outlook back to stable if it revises the
outlook on Brazil to stable from negative; at that time the
company must show a stronger liquidity position. RBS could
improve liquidity if it were to strengthen its operating
performance, despite advertising revenue decline, leading to
higher cash flow generation than expected.
JBS SA: S&P Affirms 'BB+' Rating; Outlook Stable
------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' global scale
and 'brAA+' national scale ratings on JBS S.A. and its subsidiary,
JBS USA LLC. In addition, S&P affirmed its 'BB+' issue-level
ratings on both companies, with a recovery expectation of '3' for
the senior secured debts--indicating a meaningful recovery
expectation of 70%-90%, in the higher band of the range--and '4'
for the unsecured debts--indicating an average recovery
expectation of 30%-50%, the higher band of the range.
The ratings affirmation reflects JBS's efficient and diversified
operations by proteins and geography. This along, with stable
grain prices, has resulted in the company's resilient margins and
cash flows despite some pressures stemming from high cattle prices
and weaker consumption demand in Brazil. In addition, S&P expects
the company to rapidly reduce its debt following recent
acquisitions of Tyson Foods' operations in Mexico and Brazil,
Grupo Primo Smallgoods in Australia, Big Frango in Brazil, Moy
Park in Europe, and Cargill's pork operations in the U.S., which
is still pending antitrust approval. Given JBS's positive track
record in integrating new assets, S&P don't expect these latest
ones to pose significant operating challenges. S&P also views
JBS's "adequate" liquidity position, cash held in the U.S., strong
cash flow generation, and large operations outside Brazil as a
cushion against Brazil's weak economy. Therefore, the foreign
currency rating on Brazil (BB+/Negative/B) doesn't cap the foreign
currency rating on the company. All these factors support S&P's
current stable outlook on JBS.
MARFRIG GLOBAL: S&P Affirms 'B+' CCR; Outlook Stable
----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' global scale
corporate credit and issue-level ratings on Marfrig Global Foods
S.A. S&P also affirmed its 'brBBB' national scale rating on the
company. The outlook for all corporate ratings remains stable.
S&P has maintained recovery ratings of '4', which indicates an
average recovery expectation of 30%-50%, in the lower band of the
range.
The ratings affirmation reflects S&P's expectation that Marfrig
should gradually improve its free cash flows and leverage metrics
despite highly leveraged metrics until the end of 2016. S&P
expects the company's deleverage to stem from debt prepayment
through $1.2 billion in proceeds from the sale of Moy Park to JBS
including the debt transference of GBP196 million. This in turn
will reduce interest burden and gradually boost operating and free
cash flows of the remaining operations, Marfrig Beef and Keystone.
S&P expects Marfrig to use cash inflow to pay down more expensive
debt, such as the recently announced bonds' repurchase program of
$406 million and about R$600 million in debt. In addition, the
expected conversion into equity of the R$2.1 billion debenture in
January 2017 should lower further the company's debt.
Marfrig lost some of its geographic (Europe) and portfolio
(poultry) diversification and a stable source of EBITDA generation
following the asset sale. However, S&P still views the company's
business risk profile as "fair." This assessment reflects
Marfrig's presence in global markets through its Keystone
operations in the U.S. and Asia, sizeable exports out of Mercosul,
and an increasing presence in the food service segment, where
Marfrig enjoys long-term relationships. The Marfrig Beef unit has
benefited from higher export prices denominated in Brazilian
reais, following the depreciation of the Mercosul's currencies,
particularly that of the Brazil's currency. This has more than
offset the lower volumes in the Brazilian market amid a weak
domestic demand. The company's sound operating efficiency in the
beef business and growing diversification in Keystone's portfolio
of clients should generate consolidated margins of 9.0%-9.5% in
the next 12-24 months.
Although S&P expects Marfrig to present stronger financial metrics
in the next several quarters, they will remain "highly leveraged"
for the next 18 months. Nonetheless, S&P's base-case scenario
assumes that the company will use its rising FOCF over time to pay
down debt, gradually reducing leverage to "aggressive" levels.
However, this will likely occur in 2017.
TRANSMISSORA ALIANCA: S&P Affirms 'BB+' CCR; Outlook Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB+'
global scale and 'brAA+/brA-1' national scale corporate credit
ratings on Transmissora Alianca de Energia Eletrica S.A. (TAESA).
S&P also affirmed its 'brAA+' long-term issue-level rating on
TAESA's debt. The outlook remains negative.
S&P also assigned a '3' recovery rating to TAESA's third
debentures' issuance of R$2.1 billion, reflecting S&P's
expectation of substantial recovery (70-90%, in the upper half of
the range) for the company's debenture holders.
The ratings on TAESA reflect S&P's view of its "satisfactory"
business risk profile and "adequate" liquidity. S&P also
incorporate its expectation that the company will maintain its
solid credit metrics in the next few years.
Although S&P believes that TAESA will continue posting favorable
metrics over the next few years, the negative outlook reflects
that on the sovereign rating.
S&P could lower the ratings on TAESA if S&P downgrades the
sovereign. S&P could also downgrade TAESA if it makes very large
acquisitions or boost annual capex. This could lead S&P to revise
its assessment of the company's financial risk profile to
"aggressive" under which FFO to debt is below 13% and
discretionary cash flow to debt is below 2.5%. However, S&P views
this scenario as unlikely in the next few years.
S&P expects the sovereign ratings to continue capping those on
TAESA.
==========================
C A Y M A N I S L A N D S
==========================
BABYLON SF: Creditors' Proofs of Debt Due Nov. 12
-------------------------------------------------
The creditors of Babylon SF SPC Ltd. are required to file their
proofs of debt by Nov. 12, 2015, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Sept. 29, 2015.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
CHELSTON PARK: Creditors' Proofs of Debt Due Nov. 11
----------------------------------------------------
The creditors of Chelston Park Energy & Natural Resource Hedge
Fund are required to file their proofs of debt by Nov. 11, 2015,
to be included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 18, 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
ECOLAB CAYMAN 1: Placed Under Voluntary Wind-Up
-----------------------------------------------
On Oct. 1, 2015, the sole member of Ecolab Cayman 1 Limited
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:
H&J Corporate Services (Cayman) Ltd
c/o Inga Thompson
Telephone: 345-949-7555
Willow House, 2nd Floor
Cricket Square
P.O. Box 866 Grand Cayman K1-1103
Cayman Islands
GRENADIER LIMITED: Placed Under Voluntary Wind-Up
-------------------------------------------------
On Oct. 1, 2015, the sole shareholder of Grenadier Limited
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:
Probitas Limited
Clifton House, 75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
LF SPV: Placed Under Voluntary Wind-Up
--------------------------------------
On Aug. 21, 2015, the sole shareholder of LF SPV, 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:
Lusman 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
MORGAN STANLEY APOLLO: Creditors' Proofs of Debt Due Nov. 4
-----------------------------------------------------------
The creditors of Morgan Stanley Apollo Holdings (Cayman) Ltd are
required to file their proofs of debt by Nov. 4, 2015, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2015.
The company's liquidator is:
Ling Wei Ong
International Commerce Centre, 40th Floor
1 Austin Road West
Kowloon
Hong Kong
Telephone: +852 2848-7284
Facsimile: +852 3407-5552
MORGAN STANLEY APOLLO 2: Creditors' Proofs of Debt Due Nov. 4
-------------------------------------------------------------
The creditors of Morgan Stanley Apollo Holdings 2 (Cayman) Ltd are
required to file their proofs of debt by Nov. 4, 2015, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2015.
The company's liquidator is:
Ling Wei Ong
International Commerce Centre, 40th Floor
1 Austin Road West
Kowloon
Hong Kong
Telephone: +852 2848-7284
Facsimile: +852 3407-5552
MSPEA APOLLO: Creditors' Proofs of Debt Due Nov. 4
--------------------------------------------------
The creditors of MSPEA Apollo Holdings (Cayman) Ltd are required
to file their proofs of debt by Nov. 4, 2015, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2015.
The company's liquidator is:
Ling Wei Ong
International Commerce Centre, 40th Floor
1 Austin Road West
Kowloon
Hong Kong
Telephone: +852 2848-7284
Facsimile: +852 3407-5552
MSPEA APOLLO 2: Creditors' Proofs of Debt Due Nov. 4
----------------------------------------------------
The creditors of MSPEA Apollo Holdings 2 (Cayman) Ltd are required
to file their proofs of debt by Nov. 4, 2015, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2015.
The company's liquidator is:
Ling Wei Ong
International Commerce Centre, 40th Floor
1 Austin Road West
Kowloon
Hong Kong
Telephone: +852 2848-7284
Facsimile: +852 3407-5552
MY-TECH HOLDINGS: Placed Under Voluntary Wind-Up
------------------------------------------------
At an extraordinary general meeting held on Sept. 30, 2015, the
shareholder of My-Tech Holdings Inc 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:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
NEW BARYON: Placed Under Voluntary Wind-Up
------------------------------------------
On Sept. 30, 2015, the sole shareholder of New Baryon 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:
BW Gestao De Investimentos Ltda.
c/o Ben Gillooly
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
Ogier
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
PAG SF: Creditors' Proofs of Debt Due Nov. 12
---------------------------------------------
The creditors of PAG SF SPC are required to file their proofs of
debt by Nov. 12, 2015, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on Sept. 29, 2015.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
SOUTH CHINA: Creditors' Proofs of Debt Due Nov. 12
--------------------------------------------------
The creditors of South China Printing (Holdings) Ltd are required
to file their proofs of debt by Nov. 12, 2015, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 26, 2015.
The company's liquidator is:
David A.K. Walker
c/o Sarah Moxam
Telephone: (345) 914 8634
Facsimile: (345) 945 4237
P.O. Box 258 Grand Cayman KY1-1104
Cayman Islands
=========
C H I L E
=========
AUTOMOTORES GILDEMEISTER: Weak Vehicle Sales Pressure Results
-------------------------------------------------------------
Fitch Ratings expects vehicle sales to decline in Peru and Chile
during 2016 due to the sluggish economic conditions in both
countries. Evidence of the weak backdrop includes downward
revisions of GDP expectations in recent quarters, declining
consumer confidence, and the sharp depreciation of both currencies
against the U.S. dollar.
Fitch expects the Chilean economy to grow by 2.2% and 2.7% during
2015 and 2016, respectively, while the Peruvian economy is
forecast to grow by 2.8% and 3.8%, respectively. This weakness
has resulted in lower vehicle sales for both markets during the
last 12 month (LTM). Fitch anticipates the trend to continue in
Chile and Peru throughout 2016. Total annual average vehicle
sales expected to be around 283,000 in Chile and 162,000 in Peru
during 2015/2016.
Chile's vehicle sales for the LTM period ended in June 2015
totaled 303,000 units; this represents a 16% decline over the same
period in 2014. Year over year (YOY) sales units reached negative
variations of -31%, -27%, and -14% during the fourth quarter of
2014 (4Q14), the 1Q15 , and the 2Q15, respectively. Fitch expects
Chile's total sales units to decline about 15% in 2015 after
contracting 11% in 2014.
Peru's sales units for the LTM period ended in June 2015 totaled
164,000; this figure represents a 2% decline over the same period
in 2014. YOY sales units reached variations of +5%, 0% and -7%
during 4Q14, 1Q15, and 2Q15, respectively. Fitch's expects Peru's
sales units to decline around -3% in 2015.
The aforementioned business environment will continue to pressure
the financial results of Automotores Gildemeister S.A.'s (AG).
This company's total revenue during the first half of 2015 (1H15)
was CLP346.440 million (USD547 million), a decline of 9.7% and
23.1% in local currency and U.S. dollar, respectively, against
1H14 figures. Chile accounted for 52% of AG's revenues in 1H15,
while Peru represented 45% of sales. Total revenue declined by
30% in Chile in U.S. dollar terms, while revenues in Peru fell by
14%.
On a LTM basis, AG's total sales units in Chile declined -7%, -11%
and -16% in 4Q14, 1Q15 and 2Q15, respectively. Fitch's rating
base case considers AG's total sales units in sales in Chile
contracting around 20% in 2015. On a LTM basis, AG's total sales
units in Peru decreased -13%, -11% and -11% in 4Q14, 1Q15 and
2Q15, respectively. Fitch anticipates AG's total sales units in
Peru contracting around 12% in 2015. AG's total sales units in
both markets -- Chile and Peru -- are expected to continue
declining but at a lower pace in 2016.
AG's operations has deteriorated significantly during the last six
quarters due to a combination of the following factors: the
economic slowdown in both Chile and Peru, which has hurt consumer
confidence, losses related to its startup operations in Brazil,
decreases in average sales prices as customers gravitate toward
entry-level models, and the impact of local currency devaluations
on revenues.
During the LTM ended on June 30, 2015 (LTM June 2015), AG's total
revenues and total gross interest expenses was CLP782,086,448
(USD1.2 billion), CLP41,978,836 (USD67 million). AG's cash,
short-term debt and total debt was CLP24,363,299 (USD35 million),
CLP87,045,514 (USD125 million), and CLP575,664,489 (USD826
million) as of June 30, 2015. AG's cash flow from operations was
negative CLP24,683,142 (negative USD39 million) during LTM June
2015.
Fitch currently rates Automotores Gildemeister S.A.'s (AG) as:
-- Foreign currency Issuer Default Rating (IDR) 'C' ;
-- Local currency IDR 'C';
-- USD400 million unsecured senior notes due in 2021 'C/RR4';
and
-- USD300 million unsecured senior notes due in 2023 'C/RR4'.
===============
C O L O M B I A
===============
AVIANCA HOLDINGS: 2015 EBIT Margin Under Pressure, Fitch Says
-------------------------------------------------------------
Considering weakening macro and business environment and the FX
devaluation trend across the region, Fitch Ratings expects Avianca
Holdings S.A.'s 2015 EBIT margin to be around 7%. This represents
a downward adjustment from previously projected level of 9%; the
risk of having another adjustment downward in expected 2015 EBIT
margin is high. The company's Negative Outlook continues to be
under pressure.
During 2015, Avianca Holding's net revenue growth rate is expected
to be negative around 5%, with lower yields offsetting a single-
digit percentage increase in the number of transported passengers.
The company's capacity increase in 2015 is estimated to be about
7%.
Avianca Holding's readily available cash is expected to materially
improve after the sale of a 30% stake in Avianca Holdings S.A.'s
loyalty program to Advent International (Advent). In connection
with this transaction, Avianca Holdings will receive total
proceeds of USD343.7 million. This transaction is anticipated to
be completed during the second-half of 2015.
Fitch forecasts that Avianca Holdings readily available cash will
be about USD700 million at the end of 2015. This figure would be
equivalent to approximately 16% of the company's latest 12 month
(LTM) revenues. Fitch's liquidity analysis excludes the company's
cash held in Venezuela (USD263 million, as of June 30, 2015).
Expected operational performance and net capex will limit the
company's capacity to reduce its gross adjusted leverage during
2015. The company's gross adjusted leverage, as measured by total
adjusted debt/EBITDAR, remains high as it was 7.1x as of June 30,
2015. Fitch expects the company's gross adjusted-leverage ratio
to be in the 6.5x to 7.15x range during 2015-2016. During the LTM
June 2015, the company's free cash flow (FCF) generation was
negative USD273 million, resulting in FCF margin (LTM FCF/LTM
revenues) of negative 5.9%. Fitch forecast the company's 2015 FCF
margin to be negative 4%.
Fitch currently rates Avianca Holdings S.A.'s (Avianca Holdings)
and its subsidiaries as:
Avianca Holdings S.A. (Avianca Holdings)
-- Long-term Issuer Default Rating (IDR) 'BB-';
-- Long-term local currency IDR 'BB-'.
Avianca Leasing LLC
-- USD550 million unsecured notes due in 2020 'B+/RR5'.
Aerovias del Continente Americano S.A. (Avianca)
-- Long-term IDR 'BB-';
-- Long-term local currency IDR 'BB-'.
Grupo Taca Holdings Limited (Grupo Taca)
-- Long-term IDR 'BB-'.
The Rating Outlook for the corporate ratings is Negative.
===================
C O S T A R I C A
===================
BANCO INTERNACIONAL: S&P Affirms 'BB' ICR; Outlook Remains Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB' long-
term and 'B' short-term issuer credit ratings on Banco
Internacional de Costa Rica S.A. (BICSA). The outlook remains
stable.
"The issuer credit ratings on BICSA reflect our assessment of its
"adequate" business position (despite high competition in the
trade finance sector in Latin America), its "adequate" capital and
earnings (underscored by a projected RAC ratio of 8.0% for the
next 12 to 18 months), and its "adequate" risk position (thanks to
its conservative underwriting standards, which kept asset quality
at manageable levels). The ratings also reflect its "average"
funding and "adequate" liquidity. The stand-alone credit profile
(SACP) remains 'bb'.
The stable outlook over the next 12 to 18 months reflects S&P's
expectation than the bank will maintain an RAC ratio of about 8%,
with very manageable asset quality indicators, and adequate
liquidity from its short-term loan portfolio in the event of
market fluctuations or liquidity shortfalls.
S&P could lower the ratings over the next 12 to 18 months if its
broad liquid assets to short-term wholesale funding ratio is
consistently less than 1.1x (including 50 % of its short-term loan
portfolio). Moreover, S&P could also lower the ratings if its
projected SFR drops significantly to less than 90% due to depleted
access to long-term funding sources or a decrease in the customer
deposit base.
S&P could upgrade the ratings over the next 12 to 18 months if its
projected RAC ratio consistently improves to more than 10%,
reflected in improved performance metrics and internal capital
generation, and if the bank passes S&P's stress test for ratings
above the sovereign--in this case Costa Rica, which is the bank's
largest exposure.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Time to Dip Into US$7.82BB Pension Fund
-----------------------------------------------------------
Dominican Today reports that the "time has come" to invest
Dominican Republic's pension fund of RD$352,000 billion (US$7.82
billion), or 10% of GDP, in infrastructure projects to ensure
higher yield profitability and spur the country's development.
The statement is from Pensions superintendent Ramon Emilio
Contreras, who said 70% of the funds is invested in Treasury
bonds, CDs in the Central Bank and other banks, a situation he
calls "unsustainable," according to Dominican Today.
"We must diversify the investment of funds to have adequate yield,
but also to make them the engine of development in Dominican
Republic," Mr. Contreras said, the report notes.
The report official said a famous formula called "virtuous circle"
entails investing the pension fund for development, to create jobs
and increase contributors, which the country "unfortunately"
hasn't been able to close, the report relays.
Mr. Contreras cited Chile and Costa Rica as an example of what
some countries have achieved with a diversified pension fund in
works of social interest, the report notes. "I believe the time
has come," Mr. Contreras added.
* * *
As reported in Troubled Company Reporter-Latin America on May 22,
2015, Standard & Poor's Ratings Services raised its long-term
sovereign credit ratings on the Dominican Republic (DR) to 'BB-'
from 'B+'.
The outlook is stable. At the same time, S&P affirmed the 'B'
short-term rating. S&P also raised its transfer and
convertibility (T&C) assessment to 'BB+' from 'BB'.
DOMINICAN REPUBLIC: US$14.7BB Budget Sails Through Congress
-----------------------------------------------------------
Dominican Today reports that the Senate approved in two roll calls
the bill for the 2016 Budget of RD$663.5 billion (US$14.7
billion).
The Senate controlled by the ruling PLD party had passed the
legislation in the first roll call and declared it urgent to pave
the way for its immediate approval in the next session, which
occurred Oct. 28, according to Dominican Today.
The 21 senators present voted unanimously for the bill that will
now pass to the lower Chamber, where the Deputies are expected to
approve it, the report notes.
* * *
As reported in Troubled Company Reporter-Latin America on May 22,
2015, Standard & Poor's Ratings Services raised its long-term
sovereign credit ratings on the Dominican Republic (DR) to 'BB-'
from 'B+'.
The outlook is stable. At the same time, S&P affirmed the 'B'
short-term rating. S&P also raised its transfer and
convertibility (T&C) assessment to 'BB+' from 'BB'.
=================
G U A T E M A L A
==================
GUATEMALA: S&P Affirms 'BB/B' FC Rating; Outlook Stable
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB/B' foreign
currency and 'BB+/B' local currency sovereign credit ratings on
the Republic of Guatemala. The outlook remains stable, and the
transfer and convertibility assessment is unchanged at 'BBB-'.
RATIONALE
The ratings on Guatemala balance its moderate fiscal and external
deficits, low debt levels to GDP, and stable monetary policy
against its weak and slow-growing economy characterized by high
poverty, weak government institutions, and a fragmented political
system with limited checks and balances.
Recent political instability related to corruption cases that
resulted in the resignation and imprisonment of president Otto
Perez Molina--along with several other public officials--
demonstrates the currently weak government institutions and the
absence of strong checks and balances in the political system.
Even though we don't foresee a significant negative effect on
Guatemala's stable macroeconomic performance this year and in 2016
and view positively that corruption cases are discovered and
prosecuted at all levels of government, S&P believes the next
administration of elected president Jimmy Morales will have
difficulty strengthening government effectiveness, political
stability, and transparency over the next three years.
The next administration, which will take over Jan. 14, 2016, will
have the challenge of speeding up economic growth. Over the last
three years, the sovereign's low GDP per capita (US$3,700 in 2014)
has averaged only a 1.2% annual increase. The country's growth
over the long-term will depend on the ability of the government to
increase general government revenues from 11.5% of GDP in 2014,
one of the lowest of the sovereigns we rate. In S&P's view, there
is a risk to the country's long-term growth prospects from a
combination of low public investment and a potentially strong
local currency that weakens external competitiveness. Lower-than-
projected GDP growth could weaken the rating going forward.
In the absence of additional government revenues to boost public
spending on infrastructure, security threats, and health and
education, Guatemala's real GDP growth will likely average 3.6% in
2015-2018 (it was 4.25% in 2014), which would keep GDP per capita
growth below 1.6% per year. This growth rate would continue to be
insufficient to consistently overcome the country's high poverty
level of above 50% of total population.
"We expect Guatemala to maintain low fiscal deficits in 2015-2017,
although with a slight increasing trend as we expect expenditures
pressures to grow for the next administration. Over the last five
years, general government deficits declined to 1.9% of GDP from
3.3%, and we expect this figure to stay below 3% until 2017.
Consensus in favor of stable fiscal policies within the political
leadership and the country's influential business community should
prevail in the next administration. Nevertheless, the country's
limited ability to raise general government revenues and
shortfalls in basic services and infrastructure, which will
require long-term expenditures, constrain Guatemala's fiscal
flexibility. Chances are low that the new government can approve
a fiscal reform in the next couple of years because Congress is
highly fragmented," S&P said.
Following low fiscal deficits, the general government debt will
likely stay below 23% of GDP until 2017, in S&P's view. (This
ratio has remained practically constant at 21.5% of GDP over the
last three years.) In turn, interest payments should stay below
1.6% of GDP over the same period. S&P expects interest payments
to account for 13% of general government revenues in 2015. S&P
estimates that contingent liabilities from the financial sector
and the nonfinancial public sector are limited. The banking
system's nonperforming loans are below 2% of total loans, though
the banks are exposed to sovereign risk through their holdings of
government debt.
In the external sector, Guatemala has benefited over the last year
from lower oil prices as well as remittances growth. S&P projects
current account deficits to average 2.3% of GDP annually for 2015-
2017, slightly above the 2% deficit in 2014 as oil prices recover.
As in previous years, S&P expects that current account deficits
will be largely funded by foreign direct investment, which has
averaged 95% of these deficits over the last three years. The
expected growth in current account receipts (CAR) is linked to
improved performance of the U.S. economy, Guatemala's main trading
partner, and the destination of about 40% of its exports. Also,
S&P expects remittances to continue growing about 10% a year.
Guatemala's external data have shortcomings, though, reflected in
important errors and omissions in the balance of payments. Recent
statistical improvements could help overcome this in the future.
Guatemala is now relatively less vulnerable to external shocks.
Its foreign currency debt has steadily declined to represent less
than 50% of total debt at the end of 2014 from 57% five years ago,
while central bank reserves reached $7.4 billion as of Oct. 23,
2015, from $4.9 billion in 2009. S&P estimates the sovereign's
gross external financing needs to average 96% of CAR plus usable
reserves, and narrow net external debt (net of official reserves
and financial-sector assets) to average 29% of CAR in 2015-2017.
S&P don't expect significant changes in monetary policy over the
next two years, reflecting the country's tradition of continuity
and independence at the central bank. Last month, the central
bank reduced its policy rate to 3% from 3.25%. For 2015-2017, S&P
projects inflation to moderate to 3.3% average growth--down from
4.3% in the previous three years. S&P expects foreign-exchange
reserves to represent about four months of current account
payments during 2015.
OUTLOOK
The stable outlook reflects S&P's expectation of continuity in
fiscal and monetary policies after the recent political
instability related to corruption cases and the 2015 national
elections. Guatemala is likely to maintain moderate fiscal and
external deficits and low inflation. S&P also expects that
limited fiscal flexibility will constrain the Jimmy Morales
Administration's ability to improve Guatemala's low growth
prospects, meet it immense social needs, and grapple with its
security challenges over the next two years.
S&P could raise the ratings in the next 12-24 months if the
government is able to propose and implement a reform agenda that
strengthens Guatemala's public institutions, reduces the level of
insecurity and violence, and bolsters its GDP growth prospects.
Stronger growth, along with more fiscal resources, would alleviate
poverty, address the country's shortfall in basic public services,
and gradually improve the sovereign's economic profile.
Alternatively, S&P could lower the ratings if the new
administration fails to govern effectively, maintain political
stability, and sustain the country's rate of economic growth.
Lower per capita income growth, or an unexpected increase in
external or fiscal deficits, could worsen the country's economic
profile, resulting in a downgrade.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee agreed that all key rating factors were unchanged.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
RATINGS LIST
Ratings Affirmed
Guatemala (Republic of)
Sovereign Credit Rating
Foreign Currency BB/Stable/B
Local Currency BB+/Stable/B
Transfer & Convertibility Assessment BBB-
Senior Unsecured BB
===========
M E X I C O
===========
MULTICAT MEXICO: S&P Puts Cl. C Notes' B- Rating on Watch Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B- (sf)' rating on
MultiCat Mexico Ltd.'s series 2012-I class C notes on CreditWatch
with negative implications.
On Oct. 23, 2015, Hurricane Patricia made landfall near Manzanillo
in Mexico, an area where losses are covered by the class C notes.
S&P therefore expects Swiss Reinsurance Co. Ltd. to submit an
event notice to the calculation agent, AIR Worldwide Corp.
The CreditWatch placement indicates that a triggering event may
have occurred. Based on the event definition in the transaction
documents, a triggering event occurs when the central pressure is
equal to or lower than 932 millibars. S&P reviewed an update from
the National Hurricane Center that indicated a reading of 920
millibars at one station located at 19.4N 105.0W, which falls
within the covered area. The transaction documents state that
noteholders would lose 50% of their principal amount if the
central pressure is between 932 and 920 millibars and 100% if
lower than or equal to 920 millibars.
S&P will resolve the CreditWatch placement once the calculation
agent completes its event report, which should be 15 business days
after the hurricane event parameters date (defined as either the
release date of the first tropical cyclone report containing all
information necessary to determine if Hurricane Patricia is a
covered event, or 120 days after Patricia made landfall). If a
triggering event occurred, S&P will lower its rating to 'D (sf)',
and if it did not occur, S&P will affirm its rating at 'B- (sf)'.
SIXSIGMA NETWORKS: S&P Lowers CCR to 'B+'; Outlook Stable
---------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its ratings on
Sixsigma Networks Mexico, S.A. de C.V. (KIO Networks), including
the corporate credit rating to 'B+' from 'BB-'. The outlook on
the corporate credit rating is stable. The '4' recovery rating on
the debt, indicating S&P's expectation of an average (30%-50%, in
the lower band of the range) recovery in the event of a payment
default, remains unchanged.
The downgrade reflects KIO Network's weaker credit measures, due
to the termination of the VIVA project (a contract with the
government to provide video surveillance services, representing
about 16% of the company's revenues for 2014 on a pro forma basis)
and the current foreign exchange volatility. While S&P expects
that the company will continue to benefit from the redIT
acquisition, we believe that KIO Networks' debt to EBITDA will
remain at 5.0x through 2016.
The rating reflects the company's small scale, narrow geographic
presence, and slightly lower EBITDA margins than those of its
peers. In S&P's view, the offsetting factor is its expectation
that KIO Networks will maintain its leading market position in
Mexico thanks to its long-term contracts with mid- and large-size
customers.
S&P revised its assessment of the company's financial risk profile
to "highly leveraged" from "aggressive" to reflect S&P's
expectation that the company's debt metric will remain above 5x
for the next 12 months. The rating also incorporates the
company's capital expenditures (capex) program and financial
sponsor ownership. Private equity firm, Tresalia Capital S.A. de
C.V. (not rated), owns 86% of KIO Networks.
The stable rating outlook reflects S&P's expectation that the
company will maintain adequate liquidity to fund growth
initiatives and a shortfall in FOCF in the next 12-18 months, as
it continues to invest in building of rentable capacity at its
existing data centers.
S&P could lower the ratings if KIO Network's debt to EBITDA
increases above 7x on a sustained basis, leading S&P to remove its
positive CRA. Such a scenario could develop amid weaker operating
performance resulting from a lower supply-demand dynamics,
jeopardizing the company's cash flow generation.
S&P could consider an upgrade if higher EBITDA reduces the
company's debt metric below 5x on a sustained basis.
Additionally, S&P could raise the ratings if the company's
business risk profile improves as a result of a rising portfolio
and geographic diversification.
======================
P U E R T O R I C O
======================
GLOBAL COMMODITY: Case Summary & Largest Unsecured Creditor
-----------------------------------------------------------
Debtor: Global Commodity Group, Inc.
Hacienda La Monserrate
Calle Principal 119
Manati, PR 00674
Case No.: 15-08395
Chapter 11 Petition Date: October 28, 2015
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Maria Soledad Lozada Figueroa, Esq.
MS LOZADA LAW OFFICE
PO BOX 9023888
San Juan, PR 00902
Tel: 787 520 6002
Fax: 787 520 6003
Email: lcdamslozada@gmail.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ramon L Nunez Freytes, president.
The Debtor listed CRIM as its largest unsecured creditor holding a
claim of $4.66 million.
A copy of the petition is available for free at:
http://bankrupt.com/misc/prb15-08395.pdf
PUERTO RICO: Concerns Grow as Island Debates Fiscal Control Board
-----------------------------------------------------------------
Associated Press reports that Puerto Rico legislators are warning
they will seek amendments to a bill that would create an
independent fiscal control board as the U.S. territory pushes to
restructure a portion of its $72 billion public debt before the
government runs out of money.
Lawmakers said they expect to hold five days of public hearings
before voting on the 71-page measure submitted, according to
Associated Press. Most of the debate will likely focus on what
kind of power and reach the board should have as concerns grow
about whether the government would lose significant control over
its finances and operations, the report notes.
"This project is an admission that the markets and U.S.
institutions have absolutely no confidence in this government,"
the report quoted Sen. Maria de Lourdes Santiago as saying. "This
board would not supervise. It would govern," Ms. Santiago added.
The proposed board is part of a five-year fiscal reform plan aimed
at strengthening the island's economy, which has tanked for nearly
a decade amid concern that public agencies might soon go bankrupt,
the report notes.
Lawmakers are pushing to approve the bill before the legislative
session ends in mid-November. Meanwhile, the government is
seeking some $700 million to stay afloat as it negotiates with
bondholders to restructure a debt that Gov. Alejandro Garcia
Padilla has said is unpayable, the report relays.
Mr. Padilla said establishing a fiscal control board would help
negotiations, the report says.
"We're telling the entire world that we're taking the debt
renegotiation seriously, and we're going to guarantee it through
an apolitical board," Mr. Padilla said at a political summit,
notes the report.
The five-member board would oversee implementation of the fiscal
reform plan and have oversight of most public corporations,
including the Government Development Bank, whose liquidity has
dwindled from $3 billion to $778 million in the past year, the
report notes. It would not oversee the heavily indebted power or
water and sewer companies, the report relays.
According to AP, the board members would be chosen by the governor
with approval from the island's Senate. They would serve for four
years each and have at least 10 years of experience in the field
of finance, administration, law or economics. The government
would allocate $1 million a month to the board for expenses, among
other things. However, the government has not yet said where that
money would come from as it faces a cash crunch, the report notes.
Other questions also remain unanswered, according to David Tawil,
co-founder and portfolio manager of New York-based Maglan Capital,
the report discloses.
Mr. Tawil said that while the government is proposing an
organizational restructuring, bondholders want to see fiscal
progress as well, the report relays.
"From a public point of view . . . there's a lot missing," he
said. "How are bondholders going to be treated? How is the
commonwealth going to get on stable footing? How are they going to
get back to the public markets as well? All those things need to
be answered," Mr. Tawil added.
* * *
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.
PUERTO RICO: Default Won't Derail Market, Bond Insurer Says
-----------------------------------------------------------
Michelle Kaske and Martin Z Braun at Bloomberg News report that a
bond default by Puerto Rico won't derail the $3.7 trillion
municipal-bond market as the investor base for the commonwealth's
securities has shifted to hedge funds from individuals and mutual
funds, according to Tom Metzold, a managing director at National
Public Finance Guarantee, which insures some of the debt.
"Is Puerto Rico the first domino?" Mr. Metzold said at a forum
sponsored by Standard & Poor's at the Harvard Club in New York,
notes the report. "The answer is no."
Negotiations between commonwealth officials and holders of some of
Puerto Rico's $73 billion of bonds fell apart, according to
Bloomberg News. The administration of Governor Alejandro Garcia
Padilla has said it may run out of cash next month. Puerto Rico
has about $720 million of bond payments due in December and
January, says the report.
"We're obviously hoping very much that they don't want to go
nuclear and not pay that," the report quoted Mr. Metzold as
saying. "We can assist, but we're looking for a little give and
take here so that potentially this can extend for a longer period
of time."
Bloomberg News notes that Puerto Rico's Government Development
Bank, which oversees the island's borrowing, is facing a Dec. 1
debt payment of $354 million. The GDB said that it had net
liquidity of $875 million as of Sept. 30, Bloomberg News notes.
If the GDB doesn't make the payment, it would be a violation of
the commonwealth's constitution, Mr. Metzold said, Bloomberg News
relays.
Bond Insurers
MBIA Inc., the parent of National Public Financial, has been in
talks with Puerto Rico Electric Power Authority and other
insurance companies that guarantee repayment on some of utility's
bonds to delay payments to free up cash and help restructure $8.3
billion of debt, two people with knowledge of the matter said,
Bloomberg News notes. Assured Guaranty Ltd. and Syncora Guarantee
Inc., along with MBIA, back about $2.5 billion of the bonds.
Tim Ryan, a portfolio manager at Nuveen Asset Management, said he
expected the price spreads to widen between how much bonds are
offered and how much buyers are willing to bid if there's a
default, Bloomberg News notes.
Bid-offer spreads have increased on other news, such as when the
Obama administration proposed giving Puerto Rico a form of
bankruptcy protection, Mr. Ryan said, Bloomberg News relays.
"There will be an adjustment in prices," Mr. Ryan said. "There
are individuals on the island that own direct debt. If there's a
default and temporary suspension in payments, their game has
changed," Mr. Ryan added.
Some investors may sell Puerto Rico debt, driving prices down, if
there's a default, Mr. Ryan said, adding that it's difficult to
quantify the risks to bondholders given the uncertainty of the
political and legal process, Bloomberg News notes.
Giving Puerto Rico the ability to file bankruptcy "is a slippery
slope," Mr. Metzold said, because it could result in more
litigation. Congress isn't likely to approve the Obama plan, both
Mr. Metzold and Mr. Ryan said, Bloomberg News relays.
"Negotiation means a give and take, not I want, I want, I want,"
Mr. Metzold said, relates Bloomberg News. "There are realistic
solutions if people are willing to be realistic in their
expectations."
STANDARD REGISTER: Hearing on Plan, Disclosures Set for Nov. 19
---------------------------------------------------------------
The U.S. Bankruptcy Court in Delaware is set to hold a hearing on
November 19 to consider approval of The Standard Register Co.'s
proposed Chapter 11 liquidation plan and disclosure statement.
Creditors entitled to vote on the plan have until today,
November 2, to cast their votes. Objections to approval of the
plan must also be filed on or before that date, according to court
filings.
Assets of Standard Register and its affiliates were sold to Taylor
Corp., a privately held company. According to the disclosure
statement, the proceeds from the sale were used to pay Standard
Register's debtor-in-possession financing, claims of the first
lien term lenders, and a portion of the claims of the second lien
term lenders. The company also used the proceeds to fund the $5
million GUC cash payment.
Taylor also assumed certain limited obligations and advanced
$15.076 million for payment of claims related to the wind-down of
the companies and their Chapter 11 cases. Standard Register used
a portion of that amount to loan $600,000 to the GUC Trust.
The liquidation plan proposes to pay 1% of the allowed claims of
general unsecured creditors.
About Standard Register
Standard Register provides market-specific insights and a
compelling portfolio of workflow, content and analytics solutions
to address the changing business landscape in healthcare,
financial services, manufacturing and retail markets. The Company
has operations in all U.S. states and Puerto Rico, and currently
employs 3,500 full-time employees and 16 part-time employees.
The Standard Register Company and 10 affiliated debtors sought
Chapter 11 protection in Delaware on March 12, 2015, with plans to
launch a sale process where its largest secured lender would serve
as stalking horse bidder in an auction.
The cases are pending before the Honorable Judge Brendan L.
Shannon and are jointly administered under Case No. 15-10541.
The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young
Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery &
Transformation Services U.S., LLC, as restructuring advisors; and
Prime Clerk LLC as claims agent.
The Official Committee of Unsecured Creditors tapped Lowenstein
Sandler LLP as its counsel and Jefferies LLC as its exclusive
investment banker.
STANDARD REGISTER: To Sell Terre Haute Property for $149,082
------------------------------------------------------------
The Standard Register Co. announced in a court filing that it is
selling a parcel of real property located at 1251 North Fruitridge
Avenue, in Terre Haute, Indiana.
The property will be sold to Eric and Holly Wuestefeld for
$149,082, "free and clear of liens, claims, encumbrances and other
interests."
The buyers are not an affiliate or insider of the company,
according to its lawyer, Andrew Magaziner, Esq., at Young Conaway
Stargatt & Taylor LLP, in Wilmington, Delaware.
About Standard Register
Standard Register provides market-specific insights and a
compelling portfolio of workflow, content and analytics solutions
to address the changing business landscape in healthcare,
financial services, manufacturing and retail markets. The Company
has operations in all U.S. states and Puerto Rico, and currently
employs 3,500 full-time employees and 16 part-time employees.
The Standard Register Company and 10 affiliated debtors sought
Chapter 11 protection in Delaware on March 12, 2015, with plans to
launch a sale process where its largest secured lender would serve
as stalking horse bidder in an auction.
The cases are pending before the Honorable Judge Brendan L.
Shannon and are jointly administered under Case No. 15-10541.
The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young
Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery &
Transformation Services U.S., LLC, as restructuring advisors; and
Prime Clerk LLC as claims agent.
The Official Committee of Unsecured Creditors tapped Lowenstein
Sandler LLP as its counsel and Jefferies LLC as its exclusive
investment banker.
STANDARD REGISTER: Plan Solicitation Period Extended to March 7
---------------------------------------------------------------
Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the
District of Delaware gave SRC Liquidation Company, f/k/a The
Standard Register Company, et al., until Jan. 6, 2016, to file a
plan and until March 7, 2016, to solicit acceptances of that plan.
As previously reported by The Troubled Company Reporter, on Sept.
18, 2015, the Debtors filed the Chapter 11 Plan of Liquidation for
SRC Liquidation Company and its Affiliates, and on Sept. 21, 2015,
the Court entered an order approving, among other things, certain
solicitation procedures for the Plan and scheduling a combined
hearing for November 19, 2015, on the adequacy of the disclosure
statement and confirmation of the Plan. On September 22, 2015, the
Debtors filed the First Amended Chapter 11 Plan and corresponding
conformed Disclosure Statement.
Although the Amended Plan has been filed and the Debtors will seek
its confirmation at the Combined Hearing, the Debtors seek the
extension requested to preserve their exclusivity in the event
that the Amended Plan is not confirmed and unexpected issues or
objections arise in connection therewith, Andrew L. Magaziner,
Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington,
Delaware, told the Court.
About Standard Register
Standard Register provides market-specific insights and a
compelling portfolio of workflow, content and analytics solutions
to address the changing business landscape in healthcare,
financial services, manufacturing and retail markets. The Company
has operations in all U.S. states and Puerto Rico, and currently
employs 3,500 full-time employees and 16 part-time employees.
The Standard Register Company and 10 affiliated debtors sought
Chapter 11 protection in Delaware on March 12, 2015, with plans to
launch a sale process where its largest secured lender would serve
as stalking horse bidder in an auction.
The cases are pending before the Honorable Judge Brendan L.
Shannon and are jointly administered under Case No. 15-10541.
The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young
Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery &
Transformation Services U.S., LLC, as restructuring advisors; and
Prime Clerk LLC as claims agent.
The Official Committee of Unsecured Creditors tapped Lowenstein
Sandler LLP as its counsel and Jefferies LLC as its exclusive
investment banker.
STANDARD REGISTER: Says Pennsylvania Tax Liability Must Be Slashed
------------------------------------------------------------------
Caroline Simson at Bankruptcy Law360 reported that the Standard
Register Co. estate told a Delaware bankruptcy judge on Oct. 19,
2015, that a claim filed against it by the Pennsylvania Department
of Revenue must be cut, saying the department incorrectly included
more than $1.9 million in sales and purchases on its list of items
where taxes should have been assessed.
The estate for the printing and communications company told the
court that an audit the department relied on to calculate its
$290,000 claim, which was based on an average of sales and
purchases during one month each in 2012, 2013, and 2014, had been
based on an incomplete analysis of its sales and purchase
activities, the report relates.
Bankruptcy Law360 says although the debtors provided voluminous
documentation regarding nearly 24,000 line items during those
three months for which tax had not been charged or paid, the audit
was closed in less than six months, according to the Tuesday
brief. The estate is asking that the court reduce the claim to
$87,000 in taxes and penalties.
"In this case, the audit was closed prematurely and without
agreement, and Pennsylvania did not adequately review and analyze
the non-taxable nature of numerous line items included in the
sales and purchase samples," SRC Liquidation Co. told the court,
notes the report. "This premature closing of the audit resulted
in an assessment that significantly overstates the debtors'
liability for the audit period."
The liquidation company objected in particular to several
categories of sales that were analyzed in the audit, which it said
shouldn't have been included in the DOR's calculation, Bankruptcy
Law360 relays. That included certain software support agreements,
design services, and exempt sales, among other things.
Certain purchases, such as utility charges, purchases for
manufacturing or processing tangible goods, and purchases of
capital equipment, should also have been excluded from the
calculation, according to the brief, says the report.
The claim was calculated through an audit that sampled sales and
purchase activities for one month in 2012, 2013, and 2014,
establishing a list of certain sales for which Pennsylvania tax
had wrongly not been charged or paid to the state, Bankruptcy
Law360, citing the brief, relates. The auditor then extrapolated
that liability for the three months to come up with an estimated
amount due for all of 2012 through 2014.
Under that model, says the report, the auditor calculated that the
company owed $276,000 in taxes, plus nearly $14,000 in penalties.
The DOR and the estate both declined to comment, notes the
Bankruptcy Law360 report.
Standard Register filed for Chapter 11 protection in March listing
nearly $600 million in liabilities, including about $70 million in
unsecured trade debt. Founded in 1912, the Dayton-based company
has been repositioning itself as a communications provider in the
face of the decline in the print market, according to court
records.
Standard Register is represented by Michael R. Nestor, Kara
Hammond Coyle, Maris J. Kandestin and Andrew L. Magaziner of Young
Conaway Stargatt & Taylor LLP and Michael A. Rosenthal, Robert A.
Klyman, Samuel A. Newman, Matthew G. Bouslog, Jeremy L. Graves and
Sabina Jacobs of Gibson Dunn.
Attorney information for the DOR wasn't immediately as of press
time.
The case is In re: SRC Liquidation Co., case number 1:15-bk-10541,
in the U.S. Bankruptcy Court for the District of Delaware.
About Standard Register
Standard Register provides market-specific insights and a
compelling portfolio of workflow, content and analytics solutions
to address the changing business landscape in healthcare,
financial services, manufacturing and retail markets. The Company
has operations in all U.S. states and Puerto Rico, and currently
employs 3,500 full-time employees and 16 part-time employees.
The Standard Register Company and 10 affiliated debtors sought
Chapter 11 protection in Delaware on March 12, 2015, with plans to
launch a sale process where its largest secured lender would serve
as stalking horse bidder in an auction.
The cases are pending before the Honorable Judge Brendan L.
Shannon and are jointly administered under Case No. 15-10541.
The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young
Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery &
Transformation Services U.S., LLC, as restructuring advisors; and
Prime Clerk LLC as claims agent.
The Official Committee of Unsecured Creditors tapped Lowenstein
Sandler LLP as its counsel and Jefferies LLC as its exclusive
investment banker.
================================
T R I N I D A D & T O B A G O
================================
CARIBBEAN AIRLINES: Chief Executive Officer Resigns
---------------------------------------------------
RJR News reports that Michael DiLollo, Chief Executive Officer of
Caribbean Airlines Limited has quit, after just 17 months on the
job.
The 48-year-old Canadian national, citing personal reasons,
resigned with immediate effect, according to RJR News. His
resignation has been accepted by the airline's board of directors,
the report notes.
The report relays that CAL staff were informed of the resignation
via a memo from the airline's chairman, Phillip Marshall, who also
announced that Tyrone Tang, Chief Financial Officer, will act as
CEO until a permanent replacement is found.
Mr. DiLollo was appointed Caribbean Airlines CEO in May 2014,
following the sudden resignation of Robert Corbie in September
2013.
In an interview with the Trinidad & Tobago Guardian earlier this
month, Mr. DiLollo said CAL did not need a bailout just yet, the
report notes. Mr. DiLollo said the airline had benefited from
extremely patient shareholders for years and he believed the
airline was strategically positioned to break even in three years,
the report relays.
In early February, Larry Howai, then Finance Minister, told
Parliament that unaudited accounts for 2014 showed the airline
made a loss of US$60 million, inclusive of its Air Jamaica
operations, and the airline planned to break even by 2017, the
report discloses.
Mr. Howai told the Parliament that a five-year strategic plan had
been completed and was in the process of being approved for
implementation, the report says.
About Caribbean Airlines
Caribbean Airlines Limited -- http://www.caribbean-airlines.com/
-- provides passenger airline services in the Caribbean, South
America, and North America. The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods. In addition, it operates a duty
free store in Trinidad. Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.
As reported in the Troubled Company Reporter-Latin America on
March 19, 2015, RJR News said that Caribbean Airlines Limited is
still facing an acute shortage of pilots. Trinidad's Newsday
newspaper said the airline is still reeling from the loss of close
to a dozen pilots from its Jamaican operations last year, forcing
it to send Trinidadian pilots to operate some of the Jamaican
routes to US destinations, according to RJR News.
The TCRLA reported on Sept. 24, 2014, that Trinidad Express said
Caribbean Airlines Limited will get a total of TT$1.8 billion
support from the Government during the period 2013 and 2015.
Finance Minister Larry Howai stated that the Caribbean
Airlines management had informed him that the company expects to
break-even in three years time. Mr. Howai, however, said that
government would have to provide funds for CAL in 2015, 2016 and
2017.
On July 11, 2014, the TCRLA citing Trinidad and Tobago Newsday,
said that Caribbean Airlines is facing a loss. Minister Howai was
hopeful the loss could be narrowed down to less than TT$100
million.
Caribbean Airlines Limited recorded losses estimated at US$70
million in 2012. In 2011, CAL had recorded losses of US43.7
million, the TCRLA reported on May 20, 2013.
TRINIDAD & TOBAGO: Central Bank Releases US$500 Million
-------------------------------------------------------
Trinidad Express reports that the American Chamber of Commerce of
Trinidad and Tobago (AmCham T&T) said it welcomes the Central
Bank's latest injection of US dollars into the financial system.
AmCham T&T was responding to the Central Bank's announcement that
Finance Minister Colm Imbert had directed the bank to re-establish
the previous distribution system of foreign exchange that was in
place up to March 2014, according to Trinidad Express.
The directive took effect Oct. 29.
The Central Bank also made a "special injection" of US$500 million
Oct. 29 to the financial system to ease the shortage of United
States dollars at local commercial banks, the report notes.
The Central Bank said in its statement that Imbert issued the
directive to go back to the previous system "after consultations"
with Central Bank Governor Jwala Rambarran, the report relays.
===========================
V I R G I N I S L A N D S
===========================
MIG LLC: Needs Plan Filing Extension Due to Adv. Proceeding in BVI
------------------------------------------------------------------
MIG, LLC, and ITC Cellular, LLC, ask the U.S. Bankruptcy Court for
the District of Delaware to further extend the period during which
they have the exclusive right to file a Chapter 11 plan through
and including Dec. 30, 2015, and the period during which they have
exclusive right to solicit acceptances of that plan through and
including Feb. 28, 2016.
According to Dennis A. Meloro, Esq., at Greenberg Traurig, LLP, in
Wilmington, Delaware, extension of the exclusive periods is needed
for the Debtors to resolve the issues presented in the adversary
proceeding they filed against Shenton Park Company, Inc., on
Aug. 19, 2015.
Mr. Meloro relates that in the Shenton Park Adversary Proceeding,
the Debtors seek to protect their estates and prevent Shenton Park
from taking actions to have a liquidator appointed over the
Debtors' sole equity holder, Caucuscom Ventures L.P., and
enjoining Shenton Park during the pendency of the Chapter 11 Cases
from proceeding with prosecution of and requiring them to take all
actions necessary to stay, adjourn, or otherwise withdraw the
Application for Winding Up and Appointment of Liquidator filed by
Shenton Park in the British Virgin Islands, Case Number BVIHCM
2015/0075, which apparently seeks the winding up and appointment
of a liquidator over Caucuscom.
MIG's ability to share in the governance of Magticom and to
continue to have the rights afforded to them under the PSA and
International Telcell LLC Agreement are critical to the Debtors'
reorganization efforts, Mr. Meloro tells the Court. These rights
may be substantially impaired if Shenton Park is permitted to
proceed with the BVI Liquidator Action, Mr. Meloro says.
The parties to the Shenton Park Adversary Proceeding have agreed
on, and the Court has approved, a scheduling order, and discovery
and briefing is underway. A hearing is scheduled before the Court
on December 3, 2015 to determine whether a "change of control" has
occurred and whether Shenton Park's BVI filing or appointment of a
liquidator for Caucuscom violates or would violate the automatic
stay or should be enjoined.
Resolution of the issues presented in the Shenton Park Adversary
Proceeding is critical to determining the Debtors' path forward in
these Chapter 11 Cases, Mr. Meloro asserts. In addition, the
pleadings that have been filed and will be filed by the Debtors
and the Indenture Trustee in the Shenton Park Adversary
Proceeding, detail the steps that the Debtors have taken and
continue to take in these Chapter 11 Cases to stabilize their
relationship with their joint venture partner and to work with
their primary constituencies -- the Indenture Trustee and the
holders of the Notes -- to find a consensual path to resolution of
these Chapter 11 Cases.
Nancy A. Mitchell, Esq., and Maria J. DiConza, Esq., at Greenberg
Traurig, LLP, in New York, also represent the Debtors.
About MIG LLC
Formerly operating under the name "Metromedia International Group,
Inc.," MIG LLC -- http://www.migllc-group.com/-- owned and
operated and sold dozens of companies in diverse industries,
including entertainment, photo finishing, garden equipment and
sporting goods, until the late 1990s. In 1997 and 1998, MIG
consummated the sale of substantially all of its U.S.-based
entertainment assets and began focusing on expanding into emerging
communications and media businesses. By 2005, all of MIG's
operating businesses were located in the Republic of Georgia and
operated through its subsidiaries.
MIG LLC and affiliate ITC Cellular, LLC, filed for Chapter 11
bankruptcy protection on June 30, 2014. The cases are currently
jointly administered under Bankr. D. Del. Lead Case No. 14-11605.
As of the bankruptcy filing, MIG's sole valuable asset, beyond its
existing cash, is its indirect interest in Magticom Ltd. The
cases are assigned to Judge Kevin Gross. MIG LLC disclosed $15.9
million in assets and $254 million in liabilities.
Headquartered in Tbilisi, Georgia, Magticom is the leading mobile
telephony operator in Georgia and is also the largest telephone
operator in Georgia. Magticom serves 2.4 million subscribers with
a network that covers 97% of the populated regions in Georgia.
Magticom is owned by International Telcell Cellular, LLC, which is
46% owned by MIG unit ITC Cellular, 51% owned by Dr. George
Jokhtaberidze, and 3% owned by Gemstone Management Ltd.
Formerly known as MIG, Inc., MIG was a debtor in a previous case
(Bankr. D. Del. Case NO. 09-12118). It obtained approval of its
reorganization plan in November 2010.
The Debtors have tapped Greenberg Traurig LLP as counsel, Fox
Rothschild Inc. as financial advisor; Cousins Chipman and Brown,
LLP as conflicts counsel; and Prime Clerk LLC as claims and notice
agent and administrative advisor. The Debtors have retained
Natalia Alexeeva as chief restructuring officer.
A three-member panel has been appointed in these cases to serve as
the official committee of unsecured creditors, consisting of
Walter M. Grant, Paul N. Kiel, and Lawrence P. Klamon.
QUEBECOR WORLD: Quad/Graphics Wins Dismissal of Ex-Worker's Suit
----------------------------------------------------------------
Judge Ronnie Abrams of the United States District Court for the
Southern District of New York granted Quad/Graphics Inc.'s motion
for summary judgment in the lawsuit captioned The case is
captioned JOHN MICHAEL TWOMEY a/k/a SEAN TWOMEY, Plaintiff, v.
QUAD/GRAPHICS, INC., Defendant, NO. 13-CV-1109 (RA)(S.D.N.Y.).
John Twomey is a former employee of Quad, a commercial printer
operating in the United States, Europe, South America, and Asia.
The Plaintiff's employment with Quad followed more than 20 years
of continuous employment by various corporate iterations of a
commercial printing company. Plaintiff began working for Ronald's
Federated Limited in 1985, which changed its name to BCE Publi
Tech sometime between 1986 and 1987, and was acquired by Quebecor,
Inc. in 1988. In or around 2000, after Quebecor acquired World
Color Press, the Plaintiff moved to Buenos Aires, Argentina to
assume the position of Senior Vice President of Latin America and
Chief Administrative Officer in Latin America - or as Plaintiff
put it, the "number two position in Latin America."
The central dispute in this case is the basis for Plaintiff's
termination by Quad on November 9, 2012, and its subsequent
fallout. Quad claimed that the termination was the result of a
"discrete restructuring" of a business unit at the company that
resulted in the terminations of four other employees. The
Plaintiff claimed, however, that he and other employees were
terminated on the basis of their age. The Plaintiff further
contended that after his termination, Quad failed to pay him the
severance to which he was entitled.
A full-text copy of Judge Abram's Opinion and Order dated
September 28, 2015, is available at http://is.gd/XjyD3ifrom
Leagle.com.
Anna Efimovna Khaldei, Plaintiff, represented by Daniel Joseph
Rothstein, Esq. -- djr@danielrothstein.com -- LAW OFFICE OF DANIEL
J. ROTHSTEIN, P.C., Joshua Hale Abramson, Esq. --
jhabramson@pbnlaw.com -- PORZIO, BROMBERG & NEWMAN, P.C. & Kenneth
R. Meyer, Esq., PORZIO, BROMBERG & NEWMAN, P.C.
Kalman Kaspiev, Defendant, represented by Jennifer Lindsay Jones,
Esq. -- jljones@proskauer.com -- PROSKAUER ROSE LLP, John Moses
Browning, Esq. -- jmb@proskauer.com -- PROSKAUER ROSE LLP &
Margaret Antinori Dale, Esq. -- mad@proskauer.com -- PROSKAUER
ROSE LLP.
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (CA:IQW) --
http://www.quebecorworldinc.com/-- provides market solutions,
including marketing and advertising activities, well as print
solutions to retailers, branded goods companies, catalogers and to
publishers of magazines, books and other printed media. It has
127 printing and related facilities located in North America,
Europe, Latin America and Asia. In the United States, it has 82
facilities in 30 states, and is engaged in the printing of books,
magazines, directories, retail inserts, catalogs and direct mail.
The company has operations in Mexico, Brazil, Colombia, Chile,
Peru, Argentina, and the British Virgin Islands.
Ernst & Young, Inc., the monitor of Quebecor World Inc., and its
affiliates' reorganization proceedings under the Canadian
Companies' Creditors Arrangement Act, filed a petition under
Chapter 15 of the Bankruptcy Code before the U.S. Bankruptcy Court
for the Southern District of New York on September 30, 2008, on
behalf of QWI (Bankr. S.D.N.Y. Case No. 08-13814). The Chapter 15
case is before Judge James M. Peck. Kenneth P. Coleman, Esq., at
Allen & Overy LLP, in New York, serves as counsel to the Chapter
15 petitioner.
QWI and certain of its subsidiaries commenced the CCAA proceedings
before the Quebec Superior Court (Commercial Division) on
January 20, 2008. The following day, 53 of QWI's U.S.
subsidiaries, including Quebecor World (USA), Inc., filed
petitions under Chapter 11 of the U.S. Bankruptcy Code.
The Honorable Justice Robert Mongeon oversees the CCAA case.
Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the
Company in the CCAA case. Ernst & Young Inc. was appointed as
Monitor.
Quebecor World (USA) Inc., its U.S. subsidiary, along with other
U.S. affiliates, filed for Chapter 11 bankruptcy before the U.S.
Bankruptcy Court for the Southern District of New York (Lead Case
No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter
LLP, represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The Company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective January 28, 2008.
QWI was the only entity involved in the CCAA proceedings that is
not a Debtor in the Chapter 11 Cases.
As of June 30, 2008, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$3,412,100,000 total
liabilities of US$4,326,500,000 preferred shares of US$62,000,000
and total shareholders' deficit of US$976,400,000.
On June 30, 2009, Judge Peck and the Honorable Judge Robert
Mongeon of the Quebec Superior Court of Justice, in a joint
hearing, approved the plan of compromise filed by Quebecor World
Inc. and its affiliates in their cases before the Canadian
Companies' Creditors Arrangement Act and the Chapter 11 plan of
reorganization filed by Quebecor World (USA), Inc., and its debtor
affiliates in the U.S. Bankruptcy Court.
On July 21, 2009, Quebecor World Inc. and its affiliated debtors
and debtors-in-possession emerged from protection under the
Companies' Creditors Arrangement Act in Canada and Chapter 11 of
the U.S. Bankruptcy Code. Quebecor World emerged from bankruptcy
as "World Color Press Inc."
=================
X X X X X X X X X
=================
LATAM: External Headwinds, Local Challenges Affect Growth Prospect
------------------------------------------------------------------
In its Latin American Sovereign Overview, Fitch Ratings has
revised its 2015 real GDP growth forecast for the region down to -
0.6%, from +0.5% in April, as external headwinds and domestic
challenges affect most of the region's sovereigns, and recessions
in Brazil and Venezuela continue to deepen. While Fitch has
reduced its growth forecast for most regional economies, rating
trends are generally stable, with only two countries (Brazil and
Costa Rica) currently carrying a Negative Outlook. Rating actions
have been evenly balanced, with two upgrades (Bolivia and
Paraguay) and two downgrades (El Salvador and Brazil) so far this
year. Jamaica is the only sovereign that currently has a Positive
Outlook.
External headwinds from China's slowdown and lower commodity
prices, combined with domestic challenges such as weaker
confidence and heightened political noise, have had a negative
impact on commodity exporters' growth, fiscal accounts and
external dynamics. While financial volatility has increased for
Latin America and other EMs, flexible currencies and the build-up
of significant buffers have helped Latin American sovereigns to
absorb external shocks. On the fiscal side, regional deficits are
expected to widen from 3.9% in 2014 to 4.3% in 2015, due to lower
commodity-related revenues, slower growth and continued spending
pressures.
The full Latin American Sovereign Overview provides a summary of
the credit profile of each of the 19 rated sovereigns in Latin
America and the Caribbean, as well as an overview of recent
macroeconomic developments and rating trends.
* BOND PRICING: For the Week From Oct. 26 to Oct. 30, 2015
----------------------------------------------------------
Issuer Name Cpn Bid Price Maturity Date Country Curr
----------- --- --------- ------------- ------- ----
Anton Oilfield 7.50 62.00 11/6/2018 CN USD
Anton Oilfield 7.50 43.38 11/6/2018 CN USD
Argentina Boco 21.06 51.70 1/4/2016 AR ARS
Argentine Bona 1.75 75.74 10/28/2016 AR USD
Argentine Bona 2.40 75.18 3/18/2018 AR USD
Automotores Gi 8.25 46.15 5/24/2021 CL USD
Automotores Gi 6.75 46.75 1/15/2023 CL USD
Automotores Gi 8.25 48.75 5/24/2021 CL USD
Automotores Gi 6.75 46.13 1/15/2023 CL USD
Autopistas Met 6.75 72.84 6/30/2035 PR USD
Autopistas Met 6.75 72.84 6/30/2035 PR USD
Banco BPI SA/C 4.15 74.50 11/14/2035 KY EUR
Banco do Estad 7.38 73.75 2/2/2022 BR USD
Banco do Estad 7.38 95.40 2/2/2022 BR USD
Banco Hipoteca 2.00 74.00 9/4/2018 AR USD
Banco Mercanti 9.63 70.54 7/16/2020 BR USD
Banco Mercanti 9.63 67.63 7/16/2020 BR USD
CA La Electric 8.50 43.00 4/10/2018 VE USD
CFG Investment 9.75 59.75 7/30/2019 PE USD
CFG Investment 9.75 60.88 7/30/2019 PE USD
China Precious 7.25 41.86 2/4/2018 HK HKD
CSN Islands XI 6.88 61.25 9/21/2019 KY USD
CSN Islands XI 6.88 88.75 9/21/2019 KY USD
Decimo Primer 6.00 65.50 10/25/2041 PA USD
Decimo Primer 4.54 54.25 10/25/2041 PA USD
Ecuador Govern 6.50 66.23 11/25/2024 EC USD
Ecuador Govern 6.50 65.59 1/1/2024 EC USD
Ecuador Govern 5.36 67.52 9/5/2019 EC USD
Ecuador Govern 6.50 72.57 5/20/2020 EC USD
Ecuador Govern 4.30 73.04 3/12/2018 EC USD
Ecuador Govern 6.50 65.42 12/1/2023 EC USD
Ecuador Govern 6.21 64.22 12/30/2023 EC USD
Ecuador Govern 6.21 63.97 1/1/2023 EC USD
Ecuador Govern 7.00 70.08 5/20/2022 EC USD
Ecuador Govern 6.50 65.45 11/1/2023 EC USD
Ecuador Govern 5.93 64.02 9/5/2020 EC USD
Ecuador Govern 4.30 68.78 10/4/2018 EC USD
Ecuador Govern 5.64 65.32 10/1/2020 EC USD
Ecuador Govern 5.36 66.48 12/1/2019 EC USD
Ecuador Govern 5.07 70.97 12/1/2018 EC USD
Ecuador Govern 7.00 70.38 3/6/2024 EC USD
Ecuador Govern 6.21 64.46 11/25/2023 EC USD
Ecuador Govern 5.61 61.34 12/1/2022 EC USD
Ecuador Govern 5.64 63.08 9/5/2020 EC USD
Ecuador Govern 5.93 64.01 10/1/2021 EC USD
Ecuador Govern 5.64 65.07 11/1/2020 EC USD
Ecuador Govern 5.93 63.87 11/1/2021 EC USD
Ecuador Govern 5.36 67.20 10/1/2019 EC USD
Ecuador Govern 4.30 68.34 10/29/2018 EC USD
Ecuador Govern 5.93 63.63 1/1/2022 EC USD
Ecuador Govern 6.21 64.93 9/5/2020 EC USD
Ecuador Govern 5.93 63.75 12/1/2021 EC USD
Ecuador Govern 5.07 72.07 10/1/2018 EC USD
Ecuador Govern 5.07 70.43 1/1/2019 EC USD
Ecuador Govern 5.07 70.87 9/5/2018 EC USD
Ecuador Govern 5.36 66.13 1/1/2020 EC USD
Ecuador Govern 5.07 71.51 11/1/2018 EC USD
Ecuador Govern 5.36 66.83 11/1/2019 EC USD
Ecuador Govern 5.07 74.18 4/26/2018 EC USD
Ecuador Govern 5.07 74.47 4/11/2018 EC USD
Ecuador Govern 5.07 72.43 7/26/2018 EC USD
Ecuador Govern 5.07 70.80 10/29/2018 EC USD
Ecuador Govern 5.07 71.32 9/26/2018 EC USD
Ecuador Govern 5.07 69.39 1/29/2019 EC USD
Ecuador Govern 5.07 73.77 5/17/2018 EC USD
Ecuador Govern 5.07 73.77 5/17/2018 EC USD
Ecuador Govern 5.07 73.13 6/20/2018 EC USD
Ecuador Govern 6.21 64.11 11/1/2022 EC USD
Ecuador Govern 5.64 64.83 12/1/2020 EC USD
Ecuador Govern 5.07 74.31 4/19/2018 EC USD
Ecuador Govern 5.07 71.82 8/28/2018 EC USD
Ecuador Govern 5.07 67.20 7/30/2019 EC USD
Ecuador Govern 5.07 65.69 11/25/2019 EC USD
Ecuador Govern 5.07 68.04 5/26/2019 EC USD
Ecuador Govern 5.07 68.11 5/21/2019 EC USD
Ecuador Govern 5.07 66.50 12/30/2019 EC USD
Ecuador Govern 5.64 61.62 11/25/2021 EC USD
Ecuador Govern 5.93 63.37 11/25/2022 EC USD
Ecuador Govern 5.36 63.19 11/25/2020 EC USD
Ecuador Govern 5.36 63.71 12/30/2020 EC USD
Ecuador Govern 5.93 64.13 12/30/2022 EC USD
Ecuador Govern 5.64 62.51 12/30/2021 EC USD
Ecuador Govern 6.40 67.81 6/12/2024 EC USD
Ecuador Govern 7.95 72.32 6/20/2024 EC USD
Ecuador Govern 7.95 73.16 6/20/2024 EC USD
Energia Eolica 6.00 55.13 8/30/2034 PE USD
Energia Eolica 6.00 55.13 8/30/2034 PE USD
General Explor 11.50 63.63 11/13/2018 CA USD
Glorious Prope 13.00 74.00 10/25/2015 HK USD
Glorious Prope 13.25 57.75 3/4/2018 HK USD
Greenfields Pe 9.00 10.00 5/31/2017 US CAD
HC Internation 5.00 67.10 11/27/2019 CN HKD
Hidili Industr 8.63 74.00 11/4/2015 CN USD
Hidili Industr 8.63 63.98 11/4/2015 CN USD
Honghua Group 7.45 39.02 9/25/2019 CN USD
Honghua Group 7.45 39.75 9/25/2019 CN USD
Inversiones Al 8.00 55.00 12/31/2018 CL USD
Inversiones Al 8.00 55.50 12/31/2018 CL USD
Inversora Elec 6.50 51.00 9/26/2017 AR USD
Kaisa Group Ho 10.25 48.00 1/8/2020 CN USD
Kaisa Group Ho 6.88 50.13 4/22/2016 CN CNY
Kaisa Group Ho 9.00 47.25 6/6/2019 CN USD
Kaisa Group Ho 8.00 69.83 12/20/2015 CN CNY
MIE Holdings C 7.50 54.00 4/25/2019 HK USD
MIE Holdings C 6.88 59.50 2/6/2018 HK USD
MIE Holdings C 7.50 66.00 4/25/2019 HK USD
Mongolian Mini 8.88 50.24 3/29/2017 MN USD
Mongolian Mini 8.88 36.25 3/29/2017 MN USD
Newland Intern 9.50 36.63 7/3/2017 PA USD
Newland Intern 9.50 36.63 7/3/2017 PA USD
Noble Holding 5.25 66.66 3/15/2042 KY USD
Noble Holding 6.05 74.00 3/1/2041 KY USD
Noble Holding 6.20 73.61 8/1/2040 KY USD
NQ Mobile Inc 4.00 66.25 10/15/2018 CN USD
Odebrecht Dril 6.35 52.50 6/30/2021 KY USD
Odebrecht Dril 6.35 52.00 6/30/2021 KY USD
Odebrecht Fina 4.38 60.00 4/25/2025 KY USD
Odebrecht Fina 7.13 61.00 6/26/2042 KY USD
Odebrecht Fina 5.13 71.75 6/26/2022 KY USD
Odebrecht Fina 5.25 58.25 6/27/2029 KY USD
Odebrecht Fina 8.25 62.55 4/25/2018 KY BRL
Odebrecht Fina 6.00 77.25 4/5/2023 KY USD
Odebrecht Fina 4.38 62.00 4/25/2025 KY USD
Odebrecht Fina 5.25 59.75 6/27/2029 KY USD
Odebrecht Fina 7.13 59.94 6/26/2042 KY USD
Odebrecht Fina 5.13 83.00 6/26/2022 KY USD
Odebrecht Fina 6.00 79.00 4/5/2023 KY USD
Odebrecht Offs 6.63 40.00 10/1/2022 KY USD
Odebrecht Offs 6.75 40.74 10/1/2022 KY USD
Odebrecht Offs 6.63 40.00 10/1/2022 KY USD
Odebrecht Offs 6.75 41.00 10/1/2022 KY USD
Offshore Group 7.50 39.25 11/1/2019 KY USD
Offshore Group 7.13 38.25 4/1/2023 KY USD
Oi SA 5.75 66.00 2/10/2022 BR USD
Oi SA 5.75 65.50 2/10/2022 BR USD
Peru Governmen 3.27 74.53 2/12/2054 PE PEN
Petroleos de V 8.50 73.00 11/2/2017 VE USD
Petroleos de V 5.25 50.50 4/12/2017 VE USD
Petroleos de V 12.75 49.00 2/17/2022 VE USD
Petroleos de V 5.13 71.10 10/28/2016 VE USD
Petroleos de V 9.00 38.15 11/17/2021 VE USD
Petroleos de V 9.75 38.91 5/17/2035 VE USD
Petroleos de V 5.38 33.10 4/12/2027 VE USD
Petroleos de V 6.00 33.76 5/16/2024 VE USD
Petroleos de V 6.00 33.53 11/15/2026 VE USD
Petroleos de V 5.50 32.91 4/12/2037 VE USD
Petroleos de V 8.50 72.95 11/2/2017 VE USD
Petroleos de V 6.00 32.91 5/16/2024 VE USD
Petroleos de V 12.75 44.15 2/17/2022 VE USD
Petroleos de V 6.00 33.25 11/15/2026 VE USD
Petroleos de V 9.75 34.15 5/17/2035 VE USD
Petroleos de V 9.00 38.03 11/17/2021 VE USD
Polarcus Ltd 8.00 13.00 6/7/2018 AE USD
Polarcus Ltd 5.60 57.91 4/27/2018 AE USD
Polarcus Ltd 8.53 22.31 7/8/2019 AE NOK
Provincia del 4.00 66.32 12/4/2026 AR USD
Schahin II Fin 5.88 28.00 9/25/2022 BR USD
Schahin II Fin 5.88 30.50 9/25/2022 BR USD
Sylph Ltd 3.35 55.91 6/22/2035 KY USD
Telemar Norte 5.50 75.00 10/23/2020 BR USD
Telemar Norte 5.50 74.25 10/23/2020 BR USD
Telemar Norte 5.50 77.75 10/23/2020 BR USD
Tonon Bioenerg 9.25 34.08 1/24/2020 BR USD
Tonon Bioenerg 9.25 33.25 1/24/2020 BR USD
Transocean Inc 6.80 71.50 3/15/2038 KY USD
Transocean Inc 4.30 71.56 10/15/2022 KY USD
Transocean Inc 7.50 73.47 4/15/2031 KY USD
Transocean Inc 7.85 74.50 12/15/2041 KY USD
Transocean Inc 7.45 74.39 4/15/2027 KY USD
Uruguay Govern 3.70 73.92 6/26/2037 UY UYU
USJ Acucar e A 9.88 37.00 11/9/2019 BR USD
USJ Acucar e A 9.88 37.88 11/9/2019 BR USD
Vale SA 5.63 70.43 9/11/2042 BR USD
Vantage Drilli 5.50 58.25 7/15/2043 US USD
Venezuela Gove 12.75 44.75 8/23/2022 VE USD
Venezuela Gove 11.75 40.50 10/21/2026 VE USD
Venezuela Gove 13.63 59.18 8/15/2018 VE USD
Venezuela Gove 7.75 34.50 10/13/2019 VE USD
Venezuela Gove 9.38 36.13 1/13/2034 VE USD
Venezuela Gove 9.25 36.00 5/7/2028 VE USD
Venezuela Gove 9.00 36.00 5/7/2023 VE USD
Venezuela Gove 8.25 35.40 10/13/2024 VE USD
Venezuela Gove 7.00 37.50 12/1/2018 VE USD
Venezuela Gove 7.65 35.05 4/21/2025 VE USD
Venezuela Gove 7.00 34.63 3/31/2038 VE USD
Venezuela Gove 13.63 53.80 8/15/2018 VE USD
Venezuela Gove 11.95 41.00 8/5/2031 VE USD
Venezuela Gove 9.25 41.10 9/15/2027 VE USD
Venezuela Gove 6.00 34.75 12/9/2020 VE USD
Venezuela Gove 13.63 53.80 8/15/2018 VE USD
Venezuela Gove 5.25 41.84 3/21/2019 VE USD
Venezuela Gove 6.25 66.38 4/6/2017 VE USD
Venezuela Gove 9.13 64.22 9/15/2017 VE USD
VRG Linhas Aer 10.75 73.67 2/12/2023 BR USD
VRG Linhas Aer 10.75 74.00 2/12/2023 BR USD
***********
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 * * *