/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/151209.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 Wednesday, December 9, 2015, Vol. 16, No. 243 Headlines B R A Z I L BANCO PAN: Fitch Cuts Issuer Default Ratings to 'BB' BTG PACTUAL: Said to Plan Sale of Swiss Private Bank BSI BTG PACTUAL: Fitch Cuts Issuer Default Ratings (IDRs) to 'BB-' BRAZIL: Analysts See Economy Contracting 3.50% BRAZIL: Fitch Says Revenue Sources Will Temper Declines for States SAMARCO MINERACAO: Moody's Lowers CFR to Caa1; Outlook Negative C A Y M A N I S L A N D S ALPHA SELECT: Commences Liquidation Proceedings AMP CAYMAN: Commences Liquidation Proceedings ASHTON-PAULSON: Commences Liquidation Proceedings B (BV) OFFSHORE: Commences Liquidation Proceedings BASSETTAKI PROPERTIES: Creditors' Proofs of Debt Due Dec. 10 BLUE SKY: Commences Liquidation Proceedings CCP MAC: Commences Liquidation Proceedings COP SPV: Members to Hold Annual Meeting on Dec. 17 GRAND CRU: Creditors' Proofs of Debt Due Dec. 11 H2TR OFFSHORE: Commences Liquidation Proceedings KREMER LTD: Commences Liquidation Proceedings MOKSHA CAPITAL: Commences Liquidation Proceedings D O M I N I C A N R E P U B L I C AES ANDRES: Fitch Affirms 'B+' FC IDR; Outlook Revised to Positive E L S A L V A D O R REGAL FOREST: S&P Raises CCR to 'BB-'; Outlook Remains Stable M E X I C O MULTICAT MEXICO 2012-I: S&P Lowers Rating on Class C Notes to D P U E R T O R I C O PUERTO RICO: Gets Supreme Court Review on Debt Restructuring T R I N I D A D & T O B A G O ARCELORMITTAL: Informs Union of 600 Job Cuts X X X X X X X X X LATAM: Fitch Says 2016 Growth Outlook Remains Subdued - - - - - =========== B R A Z I L =========== BANCO PAN: Fitch Cuts Issuer Default Ratings to 'BB' ---------------------------------------------------- Fitch Ratings has downgraded Banco Pan S.A.'s (Pan) Issuer Default Ratings (IDRs) to 'BB' from 'BB+' and maintained the Rating Watch Negative. The agency also downgraded the ratings on Pan's subsidiaries (Brazilian Finance & Real Estate S.A. [BFRE], Brazilian Mortgages Cia Hipotecaria [BM] and Brazilian Securities Cia de Securitizacao [BS]), maintaining the Rating Watch Negative. A full list of rating actions follows the end of this release. KEY RATING DRIVERS The downgrade of Pan's support-driven IDRs reflects the increasing difficulties of one of its co-controlling shareholders - Banco BTG Pactual S.A. (BTG, Long-term IDR 'BB-'/Negative Watch) to provide support to Pan in case of need. The downgrade of Pan was of lesser magnitude than BTG Pactual's and its ratings are now above those of the latter, reflecting the extraordinary support it could receive from the other co-controlling shareholder, Caixa Economica Federal (Caixa, Long-term IDR 'BBB-/Negative Watch; National Rating 'AAA(bra)'/Stable Outlook). Extraordinary support could be provided in the form of credit lines and long-term funding agreements, as well as a new strategic orientation, including management proximity, especially after the difficulties faced by BTG. As per Fitch's evaluation, Pan is currently rated two notches below Caixa's IDR. The agency believes that, given the difficulties that BTG currently faces, Caixa is the most likely source of potential support for Pan, if needed, as is stated by Caixa's management. However, BTG continues to share control of Pan (controlling shares of 51%) meaning that further reviews of BTG's ratings can impact Pan's ratings, too. The Negative Watch reflects possible implications for Pan's financial flexibility derived from potential contagion from reputational risk arising from its relationship with BTG. It also reflects Pan's very complex shareholder structure and the uncertainties as to how it will be controlled in the future. Pan's Viability Rating (VR) of 'b' is limited by the still volatile operating performance of the bank, its operating losses, improving but still above-average asset quality ratios, and relatively weak capitalization. The unfavorable market scenario has not allowed the bank to grow as fast as it would like to and this has delayed some profitability improvements. Some cost control measures, such as the reduction of the number of executives on its executive board, had a positive effect on the bank's results. The rating has also been placed on Negative Watch because of the potential for material negative effects on its intrinsic profile due to the scenario at BTG. Fitch believes that Pan's subsidiaries (BFRE, BM and BS) will also have the same support from Caixa in case of need. This is justified by the subsidiaries' active role, synergies and integration with Pan. BFRE, BM and BS are fully owned subsidiaries of Pan, fully consolidated in the bank even as far as regulatory aspects. RATING SENSITIVITIES Pan's IDRs could be downgraded if Fitch sees that Caixa reduces its willingness or capacity to provide support for Pan. Changes in credit limits and asset sales agreements' limits provided from Caixa, or even in Pan's shareholder structure are triggers also to be monitored. Also, new negative events involving wrongdoing derived from investigations affecting BTG may undermine Pan's capacity to generate new business and can trigger additional downgrades. A downgrade to Pan's VR could be triggered by a longer than expected breakeven point in operations against a backdrop of capital ratios falling to low levels. The ratings could be removed from Rating Watch Negative and returned to the previous Negative Outlook once Fitch is comfortable about the stability of the aforementioned financial aspects of the company and its franchise. Fitch has taken the following rating actions: Banco Pan S.A. -- Long-term foreign and local currency IDRs downgraded to 'BB' from 'BB+', Rating Watch Negative Maintained; -- Short-term foreign and local currency IDRs at 'B', Rating Watch Negative Maintained; -- Support Rating at '3', Rating Watch Negative Maintained; -- Long-term National Rating downgraded to 'A+(bra)' from 'AA- (bra)', Rating Watch Negative Maintained; -- Short-term National Rating downgraded to 'F1(bra)' from 'F1+(bra)', Rating Watch Negative Maintained. -- Viability Rating of 'b' placed on Rating Watch Negative. Brazilian Finance & Real Estate S.A. -- Long-term foreign and local currency IDRs downgraded to 'BB' from 'BB+', Rating Watch Negative Maintained; -- Short-term foreign and local currency IDRs at 'B', Rating Watch Negative Maintained; -- Long-term National Rating downgraded to 'A+(bra)' from 'AA- (bra)', Rating Watch Negative Maintained; -- Short-term National Rating downgraded to 'F1(bra)' from 'F1+(bra)', Rating Watch Negative Maintained. Brazilian Mortgages Cia Hipotecaria -- Long-term foreign and local currency IDRs downgraded to 'BB' from 'BB+', Rating Watch Negative Maintained; -- Short-term foreign and local currency IDRs at 'B', Rating Watch Negative Maintained; -- Long-term National Rating downgraded to 'A+(bra)' from 'AA- (bra)', Rating Watch Negative Maintained; -- Short-term National Rating downgraded to 'F1(bra)' from 'F1+(bra)', Rating Watch Negative Maintained. Brazilian Securities Cia de Securitizacao -- Long-term foreign and local currency IDRs downgraded to 'BB' from 'BB+', Rating Watch Negative Maintained; -- Short-term foreign and local currency IDRs at 'B', Rating Watch Negative Maintained; -- Long-term National Rating downgraded to 'A+(bra)' from 'AA- (bra)', Rating Watch Negative Maintained; -- Short-term National Rating downgraded to 'F1(bra)' from 'F1+(bra)', Rating Watch Negative Maintained. BTG PACTUAL: Said to Plan Sale of Swiss Private Bank BSI -------------------------------------------------------- Cristiane Lucchesi at Bloomberg News reports that Grupo BTG Pactual SA, the Brazilian bank trying to shore up cash after the arrest of its billionaire founder, is seeking to sell BSI, the Swiss private-banking unit it acquired three months ago, according to a person with knowledge of the situation. BTG acquired BSI from Italy's Assicurazioni Generali SpA for 1.25 billion Swiss francs ($1.28 billion) in September, Bloomberg News recalls. Bloomberg News notes that the transaction boosted BTG's assets under management to $186.5 billion from $99 billion. Andre Esteves resigned as BTG's chief executive officer and chairman on Nov. 29 after being taken into custody on suspicion of trying to obstruct a corruption probe, Bloomberg News notes. Mr. Esteves has denied any wrongdoing through his lawyers. BTG is divesting "non-essential" assets, Chairman Persio Arida said, notes the report. The company's assets offer it "plenty of room to maneuver," Edinho Silva, Brazil's social communication minister, said in an interview with Bloomberg News. "It's a solid bank, and up until now, nothing indicates that there's a crisis at the bank." Bloomberg News says that a buyer for BSI is more likely to be found outside of Brazil, as the country's two largest domestic banks, Itau Unibanco Holding SA and Banco Bradesco SA, already are engaged in other transactions, said Max Bohm, an analyst at Sao Paulo-based consulting firm Empiricus Research, Bloomberg News notes. "Bradesco's focus is Brazil and Itau's, Latin America." Among holdings on the block is BTG's stake in retailer Uniao de Lojas Leader SA, a person with knowledge of the matter said, Bloomberg News relays. The most likely buyer of that holding is the family of founder Newton Gouvea, who died earlier this year, the person said. Conversations with the Gouvea family are at an early stage and may stall over price, the person added. Also up for sale is a controlling stake in parking-lot company Allpark Empreendimentos Participacoes e Servicos SA, which could sell for about BRL1.5 billion, two people with knowledge of the situation said, adds Bloomberg News. BTG PACTUAL: Fitch Cuts Issuer Default Ratings (IDRs) to 'BB-' -------------------------------------------------------------- Fitch Ratings has downgraded Banco BTG Pactual S.A.'s (BTG Pactual) Issuer Default Ratings (IDRs) to 'BB-' from 'BBB-' and maintained it on Rating Watch Negative. A full list of rating actions follows the end of this release. KEY RATING DRIVERS The downgrade on BTG Pactual's ratings reflect the deterioration of the bank's liquidity position and funding franchise, which are closely related to the reputational damage caused by the arrest of it former CEO and main shareholder Andre Esteves. The bank has taken measures (including lending facilities and asset sales/dispositions) to bolster its liquidity and withstand the substantial withdrawal of funds. Fitch believes that these measures, if successfully completed, could help the bank withstand this turbulent period and restore liquidity to more stable levels. Even so, the deterioration on the bank's funding franchise seems clear and its ability to recompose its funding base will be a key aspect to be monitored over the immediate future. More importantly, the bank's ability to continue originating business on its areas of activity will be monitored. Fitch notes that the changes in the bank's leadership and control, with the replacement of Mr. Andre Esteves as CEO and Chairman and the removal of its role as main controller of the bank through a share swap, is a step in the right direction in terms of corporate governance, but the image of the bank remains closely connected to Mr. Esteves. Also, the emergence of accusations and official investigations related to the bank's business and deals may/will continue to weigh on the bank's reputation and further weaken its franchise and financial flexibility. As such, BTG Pactual's Viability Rating (VR) was downgraded to 'bb-' from 'bbb-' as the bank's company profile has weakened in Fitch's assessment and its ability to remain a leading investment bank in Latin America will be stress-tested. Liquidity positions should benefit from asset sales such as the sale of its stake on hospital chain Rede D'Or. Also, the settlement of some derivatives and treasury exposures and the non-renewal of maturing loan transactions could bring additional comfort in terms of leverage and capitalization, but the bank is yet challenged to complete these actions on a timely basis and under reasonable terms and conditions. The maintenance of its Rating Watch Negative reflects the uncertainties surrounding the bank's ability to originate businesses in the short and medium term and how the bank's financial profile might be affected by the rapidly changing scenario. Also, Fitch will monitor the outcomes of ongoing investigations on Mr. Esteves and wait for a clarification about accusations about the bank's involvement on corruptions schemes or any type of wrongdoing. All the long-term International and National ratings of the subsidiaries (in Brazil and abroad) included in this review are based on the support expected from BTG Pactual, hence, the rating actions on the subsidiaries mirror that on their parent bank. RATING SENSITIVITIES BTG Pactual's ratings could be downgraded if the current situation and new events further undermines its company profile, if the measures to restore liquidity are not successfully and timely implemented, or if the bank's businesses start to show signs of a clear deterioration, which could lead to sizable reduction of its future earnings, or to a limitation of its ability to continue to perform its pipeline of business in the short or medium term. A significant increase on its funding costs that hampers profitability may also result in additional downgrades. Similarly, a formal accusation of wrongdoing involving the bank's operations and transactions could also lead to an additional downgrade. The ratings could be removed from Rating Watch Negative and reverted to its previous Outlook (Negative) once Fitch is comfortable about the stability of the aforementioned financial aspects of the company and its franchise. Any changes in BTG Pactual's ratings or its willingness to support its subsidiaries would affect the ratings of the subsidiaries. BTG Pactual is a regional investment bank with a leadership position in Brazil and a growing franchise in Latin America, mostly focus on investment banking activities, assets management, securities and commodities trading and also, recently completed the acquisition of a private bank in Switzerland dedicated to serve high net worth people in Europe. Fitch has taken the following rating actions: Banco BTG Pactual S.A. -- Long-term foreign and local currency IDRs downgraded to 'BB-' from 'BBB-', Rating Watch Negative Maintained; -- Short-term foreign and local currency IDRs downgraded to 'B' from 'F3', Rating Watch Negative Maintained; -- Viability Rating downgraded to 'bb-' from 'bbb-', Rating Watch Negative Maintained; -- Long-term National Rating downgraded to 'A-(bra)' from 'AA(bra)', Rating Watch Negative Maintained; -- Short-term National Rating downgraded to 'F2(bra)' from 'F1+(bra)', Rating Watch Negative Maintained; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at 'NF'; -- Senior unsecured notes, due in March 2016, foreign currency rating downgraded to 'BB-' from 'BBB-', Rating Watch Negative Maintained; -- Senior unsecured notes, due in July 2016, foreign currency rating downgraded to 'BB-' from 'BBB-', Rating Watch Negative Maintained; -- Senior unsecured notes, due in September 2017, foreign currency rating downgraded to 'BB-' from 'BBB-', Rating Watch Negative Maintained; -- Senior unsecured notes due in January 2020, foreign currency rating downgraded to 'BB-' from 'BBB-', Rating Watch Negative Maintained; -- Senior unsecured notes due in January 2034, foreign currency rating downgraded to 'BB-' from 'BBB-', Rating Watch Negative Maintained; -- Subordinated notes due in September 2022, foreign currency rating downgraded to 'B' from 'BB', Rating Watch Negative Maintained; -- Perpetual non-cumulative junior subordinated notes, foreign currency rating downgraded to 'B-' from 'B+', Rating Watch Negative Maintained. BTG Investments LP -- Long-term foreign and local currency IDRs downgraded to 'B+' from 'BB+', Rating Watch Negative Maintained; -- Support Rating downgraded to '4' from '2', Rating Watch Negative Maintained; -- Senior guaranteed notes downgraded to 'BB-' from 'BBB-', Rating Watch Negative Maintained. BTG Pactual Holding S.A. -- Long-term foreign and local currency IDRs downgraded to 'BB-' from 'BBB-', Rating Watch Negative Maintained; -- Short-term foreign and local currency IDRs downgraded to 'B' from 'F3', Rating Watch Negative Maintained; -- Long-term National Rating downgraded to 'A-(bra)' from 'AA(bra)', Rating Watch Negative Maintained; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at 'NF'; -- Short-term National Rating downgraded to 'F2(bra)' from 'F1+(bra)', Rating Watch Negative Maintained. Pan Seguros S.A. -- National Insurer Financial Strength (IFS) downgraded to 'BBB+(bra)' from 'AA-(bra)', Rating Watch Negative Maintained. BTG Pactual Colombia S.A. -- Long-term National Rating downgraded to 'A(col)' from 'AA+(col)'; Rating Watch Negative Maintained; -- Short-term National Rating downgraded to 'F1(col)' from 'F1+(col)', Rating Watch Negative Maintained. BRAZIL: Analysts See Economy Contracting 3.50% ---------------------------------------------- EFE News reports that analysts expect Brazil's economy to contract by 3.50 percent this year, with inflation hitting 10.44 percent, the Central Bank said. The gross domestic product (GDP) and inflation estimates come from the Boletin Focus, a weekly Central Bank survey of analysts from about 100 private financial institutions on the state of the national economy, according to EFE News. The report notes that the government started using the survey in preparing its own forecasts this year. Analysts revised their projections when they expected the economy to contract by 3.19 percent and inflation to come in at 10.38 percent in 2015, the report relays. In 2016, the report says, analysts now expect Latin America's largest economy to contract by 2.31 percent, with the inflation rate falling to 6.70 percent. If the forecasts turn out to be accurate, Brazil will go through two consecutive years of negative GDP growth for the first time since 1948, the report notes. Brazil is in a recession, with GDP contracting for two consecutive quarters, according to the report. The South American country's economy contracted by 2.1 percent in the first half of this year, the report discloses. Economic growth has also been hampered by the spending cuts implemented by President Dilma Rousseff's administration to reduce the budget deficit and control inflation, the report adds. BRAZIL: Fitch Says Revenue Sources Will Temper Declines for States ------------------------------------------------------------------ According to figures released Dec. 7, 2015, Brazil's GDP continues to contract. It is now expected to fall 3.7% this year and 2016 has been revised down to a further GDP decline of 2.5%. The impact of these declines on its states will vary based on their revenue sources, Fitch Ratings says. States driven by commodities activities should fare best, followed by those reliant on domestic demand. States with weak tax collection processes are expected to fare worst in the group. Commodities-driven states will continue to benefit from export growth driven by the depreciation of the Brazilian Real. It fell by 58% in the year ended October 2015. Export-related activities are as much as half of some states' economies. Despite being tax exempt, exports support other economic sectors as well. States like Espirito Santo, Goias and, to some extent, Santa Catarina (BBB-/Negative) are in this group. Some are considering raising tariffs. Sao Paulo (BBB-/Negative), Minas Gerais and Rio Grande do Sul exemplify the large states that mostly rely on domestic demand to generate revenues. They face the same downside risks as the country. Sao Paulo's proposed tax hike on non-essential products, for example, will not be big enough to boost tax revenues. Further, we do not expect significant benefits from the efforts to curb informal markets and collect delinquent taxes. These states make up almost 50% of Brazil's economy. States with the lowest tax collection performance will fare the worst. Some have already been hurt by low oil prices and relatively high dependence on federal transfers. Rio de Janeiro (BB/Negative), Pernambuco and Maranhao (BB/Negative) are in this group. Rio de Janeiro's economy largely depends on oil royalties and on oil-related industries. Pernambuco and Maranhao are more reliant on federal transfers, mainly taxes on industrialized products (IPI-Imposto sobre Produtos Industrializados) and income tax (IR-Imposto de Renda). According to the Brazilian Central Bank, aggregate, nominal ICMS tax revenues (equivalent to value added tax in other countries) for the ten largest states rose by only 4.5% in the year ended September 2015. These states accounted for roughly 80% of the total ICMS tax collected nationwide. Only Parana (BBB-/Negative) was able to post real tax growth. It raised tariffs to 18% from 12% on various sectors and reduced some tax exemptions granted to companies. All 26 Brazilian states and the Federal District will need to continue to curb expenditures to cope with much lower revenues. So far, cost reduction has meant merging some departments and shutting down others, laying off temporary workers and freezing state-financed investments. These steps will reduce overall spending by 20% in 2015. SAMARCO MINERACAO: Moody's Lowers CFR to Caa1; Outlook Negative --------------------------------------------------------------- Moody's Investors Service has downgraded to Caa1 from Ba1 the corporate family rating of Samarco Mineracao S.A. and the ratings of its senior unsecured notes due 2022, 2023 and 2024. The outlook was changed to negative. This rating action concludes the review for downgrade initiated on Nov. 10, 2015, following the accident at the Germano site in Minas Gerais. Ratings Downgraded: Issuer: Samarco Mineracao S.A. Corporate Family Rating: to Caa1 (from Ba1) USD 1,000 million Senior Unsecured Notes due 2022: to Caa1 (from Ba1) USD 700 million Senior Unsecured Notes due 2023: to Caa1 (from Ba1) USD 500 million Senior Unsecured Notes due 2024: to Caa1 (from Ba1) Outlook, Changed To Negative From Rating Under Review RATINGS RATIONALE The downgrade to Caa1 reflects the continued uncertainties about Samarco's ability to resume operations and our concern over liquidity pressures resulting from fines, penalties and claims related to the accident with Samarco's dams in the state of Minas Gerais on Nov. 5, 2015, as well as potential covenant breaches on its outstanding debt. Since the accident, Samarco's operations at the mines and beneficiation plants are suspended and the company's final products' (pellets) inventories available for sale should finish in the next few months. Given the severe environmental implications from the tailings dam breach at the Germano complex, Moody's believes it is uncertain whether the company will be able to regain the license to resume operations in Minas Gerais. Therefore, Samarco's ability to meet its obligations remains jeopardized until alternatives are implemented. Besides, the extent of the environmental and civil liabilities that the company could face remains uncertain. While operations are suspended, the company contemplates alternatives that include the sale of energy and logistics services. Still, Moody's expects the company's liquidity to remain tight until it is able to resume production, which may leave the company with insufficient cash flow to service its debt and other cash needs, including clean up, recovery and rehabilitation costs. On the other hand, if Samarco is able to resume production in the short term, it will immediately benefit from its fully-integrated operations, which has supported its solid profitability through the years. The negative outlook reflects pressure on the company's rating that will persist until its operational and liquidity risks are resolved. An upward rating movement would require Samarco to resume production, or find alternatives that could avoid a liquidity shortfall, including support from shareholders. Although Samarco's shareholders have indicated their support to the company in the response effort and are committed with the environmental remediation of affected areas, it is highly uncertain whether there could be additional financial support. The ratings could suffer additional negative pressure if there is material deterioration in the company's liquidity position or Samarco is unable to meet its financial obligations on a timely basis or fails to renegotiate existing covenants on its debt instruments. The principal methodology used in this rating was Global Mining Industry published in August 2014. Samarco Mineracao S.A. is one of the largest exporters of seaborne iron ore pellets worldwide with operations located in Espirito Santo and Minas Gerais, in the Southeast region of Brazil. The company has a fully integrated business model with an installed capacity to produce 30.5 million pellets annually. In the last twelve months ended June 2015, Samarco had BRL 7.3 billion (USD 2.7 billion) in revenues spread across clients in North America, Middle East, North Africa, Asia and Europe, with a 21% global market share. ========================== C A Y M A N I S L A N D S ========================== ALPHA SELECT: Commences Liquidation Proceedings ----------------------------------------------- On Oct. 30, 2015, the sole shareholder of Alpha Select Mac Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 Facsimile: (345) 814 8529 AMP CAYMAN: Commences Liquidation Proceedings --------------------------------------------- On Oct. 30, 2015, the sole shareholder of AMP Cayman Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands ASHTON-PAULSON: Commences Liquidation Proceedings ------------------------------------------------- On Oct. 28, 2015, the sole shareholder of Ashton-Paulson Master Fund SPC resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 B (BV) OFFSHORE: Commences Liquidation Proceedings -------------------------------------------------- On Oct. 28, 2015, the sole shareholder of B (BV) Offshore Fund Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Sean Flynn Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 BASSETTAKI PROPERTIES: Creditors' Proofs of Debt Due Dec. 10 ------------------------------------------------------------ The creditors of Bassettaki Properties Ltd. are required to file their proofs of debt by Dec. 10, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 29, 2015. The company's liquidator is: Matthew Wright c/o Omar Grant Windward 1, Regatta Office Park P.O. Box 897 Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949 7576 Facsimile: (345) 949 8295 BLUE SKY: Commences Liquidation Proceedings ------------------------------------------- On Oct. 30, 2015, the sole shareholder of Blue Sky Japan Mac 74 Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands CCP MAC: Commences Liquidation Proceedings ------------------------------------------ On Oct. 30, 2015, the sole shareholder of CCP Mac Cayman Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2015, will be included in the company's dividend distribution. The company's liquidator is: Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands COP SPV: Members to Hold Annual Meeting on Dec. 17 -------------------------------------------------- The members of COP SPV will hold their annual meeting on Dec. 17, 2015, at 2:00 p.m. Anybody who wants to participate in the meeting must send their notice of intention by Dec. 15, 2015. The company's liquidator is: Claire Loebell c/o Robert Crockett Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman Cayman Islands KY1 -1106 Telephone +1 (345) 814 8986 GRAND CRU: Creditors' Proofs of Debt Due Dec. 11 ------------------------------------------------ The creditors of Grand Cru Fund 2 are required to file their proofs of debt by Dec. 11, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 31, 2015. The company's liquidator is: Stephen Briscoe Briscoe Wong Ferrier 602 The Chinese Bank Building 61-65 Des Voeux Road Central Hong Kong Telephone: (852) 2899 2178 Facsimile: (852) 2899 2948 H2TR OFFSHORE: Commences Liquidation Proceedings ------------------------------------------------ On Oct. 28, 2015, the sole shareholder of H2TR Offshore Fund Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Sean Flynn Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 KREMER LTD: Commences Liquidation Proceedings --------------------------------------------- On Oct. 26, 2015, the sole shareholder of Kremer Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Cathlin Rossiter c/o Neil Montgomery Telephone: (345) 815 8512 Facsimile: (345) 945 3470 Genesis Trust & Corporate Services Ltd. Midtown Plaza, Elgin Avenue, George Town P.O. Box 448 Grand Cayman KY1-1106 Cayman Islands MOKSHA CAPITAL: Commences Liquidation Proceedings ------------------------------------------------- On July 30, 3015, the sole shareholder of Moksha Capital Partners RE (F) Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Nov. 30, 2015, will be included in the company's dividend distribution. The company's liquidator is: Russell Smith c/o Antoine Powell Telephone: (345) 815 4558 BDO CRI (Cayman) Ltd. Floor 2-Building 3, Governors Square 23 Lime Tree Bay Ave P.O. Box 31229 Grand Cayman KY1 1205 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== AES ANDRES: Fitch Affirms 'B+' FC IDR; Outlook Revised to Positive ------------------------------------------------------------------ Fitch Ratings has revised the Rating Outlooks on the Dominican Republic's generation companies' (GenCos) long-term foreign and local currency Issuer Default Ratings (IDRs) to Positive from Stable. See the full list of rating actions at the end of this release. KEY RATING DRIVERS These rating actions follow revision of the Outlooks on the Dominican Republic's long-term foreign and local currency IDRs to Positive from Stable. The sovereign rating revisions reflect country resilience through adverse domestic and external conditions, improving current account dynamics due to the increasing diversity of the export structure, and the continued progress on fiscal consolidation by the Danilo Medina administration. The ratings of the Dominican Republic GenCos reflect the electricity sector's high dependency on transfers from the central government to service its financial obligations. The Dominican Republic's power sector is characterized by high electricity losses (above 30%) and consumption subsidies. The regular delays in government transfers puts pressure on the working capital needs of generators and add volatility to their cash flows. This strong dependence on government transfers links the credit quality of the distribution and GenCos to that of the sovereign. As individual debt ratings do not carry Outlooks, they were not affected by this rating action. RATING SENSITIVITIES The IDRs could be affected by a rating action on the sovereign rating of the Dominican Republic. The Outlook for the Dominican Republic's foreign and local currency IDRs is currently Positive. The factors for a positive rating action on the sovereign include: -- Continued strong investment and growth performance relative to peers without increasing macroeconomic imbalances; -- Sustained fiscal discipline that enhances the credibility of fiscal policy; -- Reduction of external balance sheet vulnerabilities. FULL LIST OF RATING ACTIONS AES Andres Dominicana SPV (AES Dominicana) -- Foreign Currency IDR affirmed at 'B+' The Outlook is Positive. AES Andres B.V. -- Foreign Currency IDR affirmed at 'B+' The Outlook is Positive. Empresa Generadora de Electricidad Itabo, S.A. -- Foreign Currency IDR affirmed at 'B+' -- Local Currency IDR affirmed at 'B+' The Outlook is Positive. ===================== E L S A L V A D O R ===================== REGAL FOREST: S&P Raises CCR to 'BB-'; Outlook Remains Stable ------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating to 'BB-' from 'B+' on Regal Forest Holding Co. Ltd. (Unicomer). The outlook remains stable. The upgrade of Unicomer reflects its improved capital structure because it has refinanced part of its short-term debt, extending its weighted average maturity to about three years as of Sept. 30, 2015. S&P expects the company to slightly improve this structure in the next 12 months. In addition, Unicomer improved its EBITDA and EBITDA margins (to 11.7% as of Sept. 30, 2015 vs. 8.9% of the same period of previous year in 2014) beyond S&P's expectations. This was due to the company's increased synergies from its acquisitions of recent years, such as El Gollo in Costa Rica, and due to higher economies of scale and improved operating efficiencies after a significant investment in distribution centers. Unicomer's business risk profile assessment incorporates S&P's view that the company generates 40% of its EBITDA in high-risk countries, such as Jamaica, Guatemala, Honduras, Ecuador, and El Salvador in the highly fragmented retail industry, especially in Latin America. S&P's assessment also reflects the company's lower revenues than those of its global and regional peers. These factors are mitigated by Unicomer's good brand and market position in the countries where it operates with attractive store locations and highly differentiated products. S&P expects Unicomer will maintain 25%-30% market share in terms of total revenues in the Central American retail market and 40%-50% in the Caribbean. S&P expects the company's credit division will continue to be key for its strategy because more than 60% of its sales come from this division. On the other hand, S&P expects this division to hold a significant share of total debt, which makes Unicomer's operations more volatile than those of other companies with lesser debt-laden credit divisions. Therefore, this factor is a rating weakness for Unicomer. S&P's rating on Unicomer also incorporates its controling shareholder, Milady Associates Ltd. (not rated). S&P views Unicomer as a "highly strategic" subsidiary for Milady, because the former's revenues represent more than 50% of Milady's revenues, including its consumer finance division. Therefore, Unicomer is an integral to the group's strategy. On the other hand, Unicomer's non-controling shareholder is El Puerto de Liverpool, S.A.B. de C.V. (BBB+/Stable/--) with a stake of 50%. =========== M E X I C O =========== MULTICAT MEXICO 2012-I: S&P Lowers Rating on Class C Notes to D --------------------------------------------------------------- Standard & Poor's Ratings Services lowered to 'D (sf)' (default) from 'CCC- (sf)' its rating on MultiCat Mexico Ltd.'s series 2012- I class C notes. S&P removed the rating on the notes from CreditWatch, where it had placed it with negative implications on Oct. 28, 2015. S&P is downgrading the class C notes because Swiss Reinsurance Co. Ltd. (Swiss Re) has requested an extension of the maturity of the notes. The notes were due to mature Dec. 4, 2015. Maturity will now automatically extend by one month each month through to June 2016 unless Swiss Re requests the maturity not to be extended. This extension will reduce the annual interest spread to 3% from 7.5%. Even in the event that there is no reduction in principal following a qualifying event, noteholders will now receive a lower coupon payment. In accordance with S&P's criteria "Rating Natural Peril Catastrophe Bonds: Methodology And Assumptions" and "Principles For Rating Debt Issues Based On Imputed Promises," S&P considers this event to be a coupon stepdown and it has therefore lowered its rating on the class C notes to 'D (sf)'. The CreditWatch placement of S&P's rating on the class C notes, which cover losses from hurricanes across an area on the west coast of Mexico, reflected that a triggering event may have occurred following Hurricane Patricia making landfall on Oct. 23, 2015, near Manzanillo in Mexico. On Oct. 29, Swiss Re submitted an event notice to the calculation agent AIR Worldwide Corp., in line with S&P's expectations, and asked AIR to generate an event report. The extension will allow AIR to publish its event report before the final legal maturity of the notes. AIR has 15 business days after the hurricane event parameters date to publish its event report. This date is defined as either the release date of the first tropical cyclone report by the National Hurricane Center (NHC) containing all the information necessary to determine if Hurricane Patricia is a covered event, or 120 days after Hurricane Patricia made landfall. Based on the event definition in the transaction documents, a triggering event occurs when the central pressure of the hurricane is equal to or lower than 932 millibars. S&P reviewed an update from the NHC 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. ====================== P U E R T O R I C O ====================== PUERTO RICO: Gets Supreme Court Review on Debt Restructuring ------------------------------------------------------------ Greg Stohr and Michelle Kaske at Bloomberg News report that the U.S. Supreme Court will consider reinstating a Puerto Rico law that would let its debt-ridden public utilities restructure their obligations, agreeing to hear an appeal by the commonwealth as it tries to navigate out of its fiscal crisis. The disputed law would affect $22 billion of Puerto Rico's $70 billion in debt, according to Bloomberg News. That includes $8.2 billion owed by the Puerto Rico Electric Power Authority, known as Prepa, which is negotiating with its creditors and would gain new leverage from a ruling upholding the law. The high court will decide by June, notes the report. The case centers on the power of the Puerto Rican government to fill what it says is a gap in federal bankruptcy law, which bars filings by the commonwealth's utilities, Bloomberg News relays. "It is hard to overstate the importance of this issue to the future of Puerto Rico and its people," the commonwealth argued in its appeal, Bloomberg News discloses. Bloomberg News says that the decision to hear the case is a setback to funds that are battling Puerto Rico in court over $2 billion in Prepa bonds they hold. They said high court review was unnecessary given that they have already agreed to a restructuring plan with Prepa. The utility is still trying to reach an agreement with bond-insurance companies, an essential group in making the accord final, Bloomberg News relays. "This pending restructuring diminishes, if not eliminates, the supposed emergency," bondholders led by Franklin California Tax- Free Trust argued, Bloomberg News notes. Justice Samuel Alito didn't take part in the action, giving no reason. His most recent financial disclosure report indicates that either he or his wife owns shares in a Franklin fund that holds Puerto Rico municipal bonds, Bloomberg News says. If Alito doesn't participate when the court rules, Puerto Rico will need to win the votes of five of the other eight justices, notes the report. A 4-4 split would leave intact a lower court ruling throwing out the Puerto Rico law, says Bloomberg News. Under federal law, states can authorize bankruptcy filings by their municipalities, including public utilities, but Puerto Rico and the District of Columbia can't, notes Bloomberg News. Puerto Rico sought to get around that provision in 2014 by passing a local law known as the Recovery Act, which was modeled after the federal bankruptcy code. Appeals Court Bloomberg News recalls that a U.S. appeals court ruled unanimously in July that federal bankruptcy law bars the Puerto Rico measure. The three-judge panel said Congress had reserved for itself the power to decide how Puerto Rican debt should be restructured. Bloomberg News relays that Puerto Rico contends the lower court relied on a portion of the federal bankruptcy code that has nothing to do with the commonwealth. The appeals court left the commonwealth "in a 'no man's land' where its public utilities cannot restructure their debts under either federal law or its own law," the appeal argued, notes Bloomberg News. The bondholders say Puerto Rico's utilities aren't alone. Only about half the states have authorized their municipalities to declare federal bankruptcy, according to BlueMountain Capital Management LLP, which has about $400 million in Prepa bonds, Bloomberg News discloses. QuickTake: Puerto Rico's Slide The funds also say that since 1946, federal law has barred states and Puerto Rico from using their own laws to authorize non- consensual restructurings, Bloomberg News notes. "For 68 years, the states, the District of Columbia, and Puerto Rico alike all observed this prohibition," BlueMountain argued. "None attempted to enact their own municipal bankruptcy law until Puerto Rico enacted its Recovery Act in 2014," BlueMountain added, notes the report. Supreme Court intervention comes amid congressional efforts to address the Puerto Rico debt crisis, Bloomberg News relays. The Obama administration and congressional Democrats say Puerto Rico should be granted broad bankruptcy powers, while Republicans are working on proposals that could include a federal financial control board. "It's clearly an issue of national importance," said Matt Fabian, a partner at Concord, Massachusetts-based Municipal Market Analytics, Bloomberg News discloses. "So it's not unreasonable that the court would pick this up," Mr. Fabian added. Puerto Rico Governor Alejandro Garcia Padilla said in a statement, "While we are hopeful the Supreme Court will rule in our favor, this is a lengthy process and Puerto Rico's 3.5 million American citizens cannot wait any longer for relief." Mr. Padilla added, "We urge Congress to take action now." The cases are Puerto Rico v. Franklin California Tax-Free Trust, 15-233, and Acosta-Febo v. Franklin California Tax-Free Trust, 15- 255. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 14, 2015, Standard & Poor's Ratings Services lowered its ratings on the Commonwealth of Puerto Rico's tax-backed debt to 'CC' from 'CCC-' and removed the ratings from CreditWatch, where they had been placed with negative implications July 20. The outlook is negative. ================================ T R I N I D A D & T O B A G O ================================ ARCELORMITTAL: Informs Union of 600 Job Cuts --------------------------------------------- Trinidad Express reports that some 600 workers of Point Lisas steel manufacturing company ArcelorMittal were told that they no longer had a job. A month after the company stopped steel production citing global and local economic condition, it informed the representative Steel Workers Union of Trinidad and Tobago, and the workers would be laid off, according to Trinidad Express. The report notes that ArcelorMittal, a leading steel and mining company operating in 60 countries, has laid off workers at others international plants over the last year, as a result of depressed steel prices. The report, citing a press release, relays that the company said: "Following the inability to reach agreement with the Steel Workers Union of Trinidad and Tobago (SWUTT) on a proposal from the management of ArcelorMittal Point Lisas for workers with accrued vacation days to proceed on paid vacation, while workers who do not have vacation leave to engage in alternative functions on a temporary basis outside of their normal duties, the Company has had no option but to begin a process of laying-off workers". The report notes that the company said: "Aware and conscious of the Christmas season and in the spirit of goodwill and the need of workers to be in a position to take care of their families, ArcelorMittal Point Lisas has undertaken the responsibility to provide the workers with some financial assistance as has been done on occasions in the past. Management of ArcelorMittal Point Lisas is also offering staff members the opportunity to encash a limited amount of accrued vacation entitlement." At a meeting, company officials told the union that it was impossible to keep workers on the plant over a protracted period without having work for employees to perform, the report relays. "At a meeting with the Union the Company communicated its decision to lay off employees. The Company also informed the Union of its preference for employees to proceed on vacation as proposed and left the door open in this regard," the officials added, says the report. On November 4, ArcelorMittal Point announced that because of over- supply of steel in the international market and the drying up of orders for its Direct Reduced Iron and steel products produced at the Pt. Lisas plant, it had to shut down operations temporarily, the report relays. According to ArcelorMittal, the global steel industry is experiencing its worst recession in 10 years, comparable to that experienced in the early 1990s, the report adds. ================= X X X X X X X X X ================= LATAM: Fitch Says 2016 Growth Outlook Remains Subdued ----------------------------------------------------- After a decade-long commodity super cycle, the 2016 growth outlook for Latin America remains subdued as external and domestic risks persist, says Fitch Ratings in a new special report. Against this backdrop, Fitch expects little upward sovereign rating movement in the region in 2016. To the contrary, negative rating pressures could increase if countries are unable to adjust to the evolving external environment. Subdued growth, increased fiscal deficits, unfavorable debt dynamics, country-specific challenges, and lack of progress on reforms could put pressure on ratings. Fitch forecasts a 0.2% contraction in regional GDP for 2016, compared with an estimated 1% decline in 2015 and an average 3.5% growth during 2010-2014. Excluding the recessions in Brazil and Venezuela, growth is expected to recover mildly to 2.3% in 2016, from 2.2% in 2015, reflecting a subdued recovery for commodity exporters and some benefit for Central America and Mexico from firmer U.S. growth. The weak performance in the region responds to a subdued commodity price outlook, moderating growth in China, and tighter international financial conditions. In some cases, political factors could prevent a pick-up in domestic confidence, clouding the growth and investment outlook. Intensification of these dynamics represents a downside risk to growth. Policy flexibility to respond to slow growth has diminished in the region. Gradual monetary tightening will likely continue in 2016 as central banks respond to better anchor inflationary expectations given above-target inflation figures in several countries, precipitated largely by FX depreciation. The prospects for fiscal consolidation appear challenging in the face of sluggish growth, limited commodity price upside and difficulties in reducing spending. As a result, debt dynamics are likely to remain unfavorable for most sovereigns. After deterioration in current account deficits for several commodity exporters during 2014-15, external imbalances are expected to decline or stabilize in 2016. On the other hand, commodity importers continue to have lower deficits compared to recent years. These trends should facilitate the adjustment of countries to tighter external financing conditions, especially amidst a U.S. monetary tightening cycle. However, sources of risk include lower capital inflows and reduced non-resident participation in domestic markets. Higher levels of private sector external indebtedness, especially for investment-grade countries, also represent a source of vulnerability. Strong international reserves, flexible currencies and some private sector hedging mitigate risks. While a lighter election calendar will prevail in 2016, weak growth and country-specific issues such as corruption investigations, reduced popularity of sitting presidents, legislative gridlock, and protests could increase challenges to governance and policy adjustments. Furthermore, the outlook for reforms remains mixed, with some bright spots being Mexico, which is progressing with its structural reforms and some Andean countries focused on developing infrastructure. The majority of Latin America's sovereign ratings currently carry a Stable Outlook. The number of sovereigns with Positive and Negative Outlooks are evenly balanced,- two countries, Jamaica and the Dominican Republic, have a Positive Outlook, and Brazil and Costa Rica have a Negative Outlook. *********** 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 * * *