/raid1/www/Hosts/bankrupt/TCRLA_Public/160114.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, January 14, 2016, Vol. 17, No. 9
Headlines
B O L I V I A
YPFB: Mudslide Ruptures Gas Pipeline in Central Bolivia
B R A Z I L
PETROLEO BRASILEIRO: Slashes Investment by Nearly 25%
STATE OF RIO DE JANEIRO: S&P Lowers Global Scale Rating to 'BB-'
VALE SA: Draws $3 Billion of Credit as Asset Sales Falter
C A Y M A N I S L A N D S
GALLINULE FUND: Members Receive Wind-Up Report
GODOT HOLDINGS: Shareholder Receives Wind-Up Report
INTERNATIONAL SEAFOOD: Shareholder Receives Wind-Up Report
JAIBA INVESTMENT: Members Receive Wind-Up Report
MADISON NICHE: Chapter 15 Case Summary
MB FEEDER: Members Receive Wind-Up Report
MB MASTER: Members Receive Wind-Up Report
MOSAIC FUNDING: Shareholders Receive Wind-Up Report
NEW SOLAR: Shareholders Receive Wind-Up Report
PUNTO DOS: Members Receive Wind-Up Report
SAF AM: Members Receive Wind-Up Report
SIGNUM VERDE: Fitch Downgrades Credit-Linked Notes Rating to B+sf
TAGUS FUND: Shareholder Receives Wind-Up Report
UC MILESTONE: Shareholders Receive Wind-Up Report
UC SAVER: Shareholders Receive Wind-Up Report
VANITY AVIATION: Members Receive Wind-Up Report
VILLAS FUNDING: Shareholders Receive Wind-Up Report
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Discloses US$8.9MM Facility; Ambitious Revamp
DOMINICAN REPUBLIC: AMCHAM Hails End of US Ban on Farm Products
M E X I C O
CEMENTOS DE CHIHUAHUA: Fitch Hikes Issuer Default Ratings to 'BB'
P U E R T O R I C O
FARMACIA BRISAS: Case Summary & 19 Largest Unsecured Creditors
PUERTO DEL REY: District Court Remands "Cortes" Suit
- - - - -
=============
B O L I V I A
=============
YPFB: Mudslide Ruptures Gas Pipeline in Central Bolivia
-------------------------------------------------------
EFE News reports that a mudslide triggered by torrential rains
ruptured a gas pipeline in Cochabamba, a region in central
Bolivia, but the leak has been controlled, state-owned oil company
YPFB said.
The leak occurred in the early morning hours on Jan. 12, YPFB
Chief Executive Officer Guillermo Acha said in a Twitter post,
according to EFE News.
An alert was declared on the Carrasco-Cochabamba pipeline due to
the drop in pressure, "which immediately activated the closing of
the valves," the report quoted Mr. Acha as saying.
Domestic gas supplies in western Bolivia will not be affected
because although volumes will drop while repairs are being done,
"transportation is being optimized" via the gas pipeline that runs
into the highlands, YPFB said, the report relays.
Two 26-person emergency teams will be deployed all day in the area
where the mudslide occurred, the report notes.
Two people were killed when a vehicle crashed into the Carrasco-
Cochabamba pipeline in Cochabamba on Nov. 28, the report
discloses.
The crash damaged the pipeline and a fuel spill was contained in
the hours after the accident, the report adds.
===========
B R A Z I L
===========
PETROLEO BRASILEIRO: Slashes Investment by Nearly 25%
-----------------------------------------------------
EFE News reports that Petroleo Brasileiro S.A. said it was
slashing investment over the next three years by 24.6 percent and
cutting production amid the slump in the price of crude.
Investment is being cut from $130.3 billion to $98.4 billion as
part of the 2015-2019 business plan, Petrobras, which is Brazil's
largest corporation and accounts for nearly 10 percent of the
gross domestic product (GDP), said, according to EFE News.
The cuts in capital investment are needed to adjust operations to
a new global situation marked by the lowest oil prices in years
and a strong dollar, the company said, the report notes.
Petrobras said production in 2020 is expected to average 2.7
million barrels per day (bpd) in 2020 rather than 2.8 million bpd,
the report relays.
The production target for 2016 is being reduced from 2.185 million
bpd to 2.145 million bpd, a cut of 1.8 percent, Petrobras added,
the report discloses.
According to the company, the reduction in investment of $32
billion is necessary to compensate for foreign exchange rate
effects, which added $10.7 billion to the cost of the capital
investment plan, adding that it was cutting project investment by
$21.2 billion over the next three years, the report adds.
About Petroleo Brasileiro
Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. --
Petrobras (Brazilian Petroleum Corporation) -- explores for oil
and gas and it produces, refines, purchases, and transports oil
and gas products. The Company has proved reserves of about 14.1
billion barrels of oil equivalent and operates 16 refineries, an
extensive pipeline network, and more than 8,000 gas stations.
The Troubled Company Reporter-Latin America reported on Dec. 22,
2015, that Fitch Ratings has downgraded the foreign and local
currency Issuer Default Ratings (IDRs) and outstanding debt
ratings for Petroleo Brasileiro S.A. (Petrobras) to 'BB+' from
'BBB-'.
On Dec. 11, 2015, reported that Moody's Investors Service
("Moody's") downgraded all ratings for Petroleo Brasileiro S.A.
("Petrobras") and ratings based on Petrobras' guarantee, including
the company's senior unsecured debt rating, to Ba3 from Ba2.
Simultaneously, Moody's placed the ratings on review for possible
further downgrade. The company's baseline credit assessment (BCA)
was lowered to b3 from b2. The rating and outlook for the
unguaranteed ratings of Petrobras Argentina are unchanged,
including the (P)B2 senior unsecured, positive.
TCRLA reported that on March 6, 2015, that the deepening
investigation into the alleged kickback scheme at Petrobras has
triggered concerns for the Brazilian banks with exposures not only
to the state-controlled oil company, but also to its large base of
suppliers, as well as the broader oil and gas (O&G) and
construction industries, says Moody's Investors Service.
On March 12, 2015, the TCR-LA reported that Moody's Investors
Service said the corruption investigation into Petrobras will
negatively affect parts of the public and private sectors, but
government support for the company is likely to help contain the
credit-negative impact.
Moody's Investors Service has downgraded all ratings for
Petrobras, including a downgrade of the company's senior unsecured
debt to Ba2 from Baa3, and assigned a Ba2 Corporate Family Rating
to the company, the TCRLA reported on Feb. 27, 2015. Its failure
to estimate its losses from the alleged corruption scheme and
produce audited third-quarter results prompted Moody's to cut its
rating to junk, the report said.
Rival agency Standard & Poor's delivered a further blow on March
23 when it revised its outlook on the company from stable to
negative, the TCRLA reported on March 26, 2015.
On Feb. 10, 2015, TCRLA said Fitch Ratings has downgraded the
foreign and local currency Issuer Default Ratings (IDRs) and
outstanding debt ratings of Petrobras to 'BBB-' from 'BBB'.
Concurrently, Fitch has placed all of Petrobras' international and
national scale ratings on Rating Watch Negative.
STATE OF RIO DE JANEIRO: S&P Lowers Global Scale Rating to 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its global scale rating
on the state of Rio de Janeiro (Rio) to 'BB-' from 'BB'. At the
same time, S&P lowered its national scale rating on the state to
'brA' from 'brAA-'. The outlook is negative.
RATIONALE
The downgrade reflects the state's fiscal deterioration in 2015,
which S&P expects will continue in 2016 and 2017, a "weak"
financial management and budgetary flexibility, as seen in Rio's
very limited ability to cut capital and operating spending. The
state continues to implement its ambitious infrastructure program
amid a slumping economy, which consequently prompts S&P to
maintain its view of its liquidity position as "weak." Adding to
the state's constraints is the rigidity of its operating
expenditures (mainly interest payments and public-sector wages and
pension payments) as well as restricted ability to cut capital
expenditures (capex). The latter stems from Rio's significant
infrastructure needs, such as urbanization, particularly in poor
communities, transportation, and sanitation, as well as
preparations for the 2016 Olympic Games. The state has secured
most of the funding for the latter from the central government,
which doesn't compromise Rio's future own-source revenues.
S&P expects Rio to continue posting high fiscal deficits during
the next 12-18 months if it fails to stabilize its finances. S&P
estimates that the state's operating deficit will reach 7% of
operating revenues in 2016 and to start decreasing in 2017
depending on Rio's capacity to cut spending. According to S&P's
base-case scenario for 2016, the fiscal deficit will remain above
R$11 billion. In fiscal 2015, S&P estimates tax revenues to drop
due to lower oil royalty revenues, stemming from lower oil prices.
However, one-off extraordinary revenues, in the form of judicial
deposits of R$5 billion, compensated for lower tax revenues.
Moreover, S&P expects personnel expenses in 2015 to rise in line
with the inflation rate, mainly stemming from cost-control
measures, which included the need for the state legislature's
approval to raise spending on public-sector wages, reduction of
civil servants' year-end bonuses, and payment of salaries in
installments. Rio's capex in 2015 reached R$5 billion, and it
will likely drop in 2016 as the state finalizes infrastructure for
the Olympic Games. As Brazil's economy contracts, S&P believes
the state will implement some fiscal measures such as tax
increases during 2016 to rein in its still high fiscal deficit.
The state's "very weak" budgetary performance, as seen in
operating deficits and high deficits before borrowings, will
require significant external financing to close the fiscal gap.
As of October 2015, Rio reported borrowings for up to
R$3.1 billion, though the state was authorized to borrow up to
R$6.1 billion. This debt came mostly from Banco do Brasil S.A.,
Caixa Economica Federal, the Brazilian Development Bank (BNDES),
and multilateral lending agencies. However, the state was able to
finance its fiscal deficit in 2015 by delaying payments to its
service suppliers. As of November 2015, account payables totaled
more than R$6 billion.
Although S&P expects Rio to continue borrowing to finance its
fiscal deficits in 2016 and 2017, its borrowing base will likely
contract. S&P considers that public banks, the bulk of funding
sources for Rio, won't be able, and willing, to lend as much as in
the recent past. It's currently unclear if the state's borrowings
that were previously authorized will be disbursed at the pace that
Rio needs it. As a result, Rio is likely to continue posting high
deficits after borrowings, which could further pressure its credit
quality.
Direct debt reached 184% of estimated operating revenues in 2015,
and S&P expects the debt burden to remain high in 2016. This
level is higher than those of states of Sao Paulo and Minas
Gerais. As of December 2015, Rio reported a tax-supported debt of
R$106.7 billion, up R$17 billion since 2014. Rio owes 66% of its
debt to the federal government. S&P expects debt in relative
terms to start falling in 2016 and remain below 150% of
consolidated operating revenues by 2018 because of the likely
limited external financing during the next several years.
S&P views the state budgetary flexibility as "weak." Although
own-source revenues account for 90% of Rio's operating revenues,
the state has limited ability to cut expenditures due to large-
scale infrastructure projects and personnel costs. This leads the
state to recourse to unusual cost-control measures such as
postponement of salary payments and those to service suppliers,
for example. According to S&P's base-case scenario for 2016, the
state's budgetary flexibility will remain "weak" due to
difficulties in levying new taxes amid recession and in
controlling spending on healthcare, education, pensions, and other
items.
Rio has a diversified economy, and its GDP per capita is higher
than those of other Brazilian states. S&P considers Rio's economy
as "weak" due to GDP per capita of about $16,306 for fiscal 2014 -
- according to local statistical institute (CEPERJ) -- the
country's current recession, and the state's dependence on the oil
and gas industry for revenues. Rio is also home to industries
such as pharmaceuticals, insurance, and telecoms. Brazil produces
about 80% of its oil in the state of Rio de Janeiro, and this
sector represents 15% of its GDP. Additionally, about 90% of
Brazil's proven oil reserves and 60%-70% of the recently
discovered offshore oil reserves are located in the state. The
oil industry in Brazil is suffering from spillover effects of
corruption investigations at state-owned energy company Petroleo
Brasileiro - Petrobras S.A. (headquartered in Rio). This in turn
hurts the state's revenue. S&P believes that a weaker economy,
characterized by a longer contraction, lower business confidence,
and Petrobras' likely reduced investment amid lower international
oil prices, could further undermine the state's fiscal profile.
S&P assess Rio's fiscal management as "weak" due to rising debt it
owes to service suppliers and the payment of public-sector
salaries in installments. Uncertainties over the fiscal targets
and over medium- to long-term fiscal planning also reflect S&P's
overall assessment on the state's financial management. During
2015, Rio posted one of the highest fiscal deficits among
Brazilian states. Although Rio plans to reduce its deficit in
2016, it will struggle to do so in recession. The state's
investment will continue to focus on infrastructure development,
requiring keen fiscal management that S&P has yet to observe.
Rio has "moderate" contingent liabilities because most of the
government-related entities (GREs) are part of the state's budget
and debt. The debt of other GREs accounted for about 8% of the
state's projected 2015 operating revenues. Companhia Estadual de
Aguas e Esgotos - CEDAE (national scale: brA/Negative/--), a
sewage and water utility, is Rio's largest-owned entity. Although
S&P considers it as a self-supporting GRE, S&P includes it in its
contingent liability analysis.
Rio de Janeiro, similar to its domestic peers, operates in what
S&P views as an "evolving and unbalanced" institutional framework.
The system that divides the fiscal powers between the central and
the local and regional governments (LRGs) in Brazil is based on
three key parameters that have remained in place for a long time
and have gained strong political and economic support. S&P don't
expect major changes in the intermediate term, and if they do
occur, it will have to reassess our opinion of Brazilian LRGs.
Liquidity
S&P views the state's liquidity as "weak" because its average cash
reserves--including our estimates for cash--will likely cover only
34% of projected debt service in 2016. In fiscal 2015, the state
reported interest payments of R$3.28 billion and amortization
payment for R$3.07 billion. Still, Rio owes most of its debt to
the federal government, and the state's coparticipation transfers
guarantee its debt, which diminishes rollover and nonpayment risks
to the federal government.
S&P assess the state's access to external liquidity as limited.
Although Rio has consistently obtained new borrowings from
domestic banks and multilateral agencies in the past few years,
S&P believes the availability of external financing will be more
limited in the next two years due to the state's already high debt
levels and the sovereign's tightening authorization for debt
issuance among LRGs.
OUTLOOK
The negative outlook reflects one in three chances that Rio's
credit quality could deteriorate as a result of weakening finances
while it approaching the debt limit. Also, S&P expects the state
will continue to report high fiscal deficits, while struggling to
control and cut its expenses amid the country's prolonged
recession. The negative outlook also considers that the state
will implement some fiscal adjustments to prevent its finances
from further weakening during 2016.
Downside scenario
Fiscal deterioration beyond S&P's expectations in the next 12-18
months and continued noncompliance with the Fiscal Responsibility
Law and with debt limits could lead to a downgrade.
Upside scenario
If the state starts to improve its budgetary performance that
could eventually bolster its liquidity position, S&P could revise
the outlook to stable.
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's assessment of the key rating factors is reflected
in the Ratings Score Snapshot.
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
Downgraded
To From
Rio de Janeiro (State of)
Issuer Credit Rating BB-/Negative/-- BB/Negative/--
Brazil National Scale brA/Negative/-- brAA-/Negative/--
VALE SA: Draws $3 Billion of Credit as Asset Sales Falter
---------------------------------------------------------
Stephen Eisenhammer at Reuters reports that Vale SA said it drew
down $3 billion from a revolving credit line to pay debt due this
quarter, a move that shines a light on its fragile finances amid
low commodity prices and faltering asset sales.
Brazil-based Vale SA, which analysts expect to have a cash
shortfall in 2016, said it took the action due to a delay in
closing a deal announced at the end of 2014 to sell a stake in its
Mozambique coal project to Japanese trader Mitsui & Co Ltd,
according to Reuters.
The report notes that the closing is dependent on securing project
financing for the coal mine and connecting rail and port, a hurdle
the companies have been unable to clear so far. When the deal was
announced, Vale said it was seeking up to $2.7 billion in project
financing.
Analysts at BTG Pactual described the drawdown as "a signal of the
challenging times ahead," and calculated that Vale could have an
"uncomfortable" free cash flow gap of around $3 billion this year
if it doesn't succeed in selling assets, the report relays.
On top of the coal deal, Vale SA has said it is looking to sell
its remaining 11 very large ore carrying ships, the report notes.
In the past, they have fetched about $100 million each, the report
discloses.
The Brazilian miner did not say what the interest rate on the
credit line was, but said in a statement it would try not to use
it much in the future and was looking to sell long-term debt
instead, the report relays. A further $2 billion is available
through another credit line, Vale SA said, the report adds.
==========================
C A Y M A N I S L A N D S
==========================
GALLINULE FUND: Members Receive Wind-Up Report
----------------------------------------------
The members of The Gallinule Fund received on Dec. 23, 2015, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
GODOT HOLDINGS: Shareholder Receives Wind-Up Report
---------------------------------------------------
The shareholder of Godot Holdings received on Dec. 23, 2015, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Carl Gosselin
Wilmington Trust (Cayman), Ltd.
P.O. Box 32322 Grand Cayman KY1-1209
Cayman Islands
Telephone: (345) 640-6712
INTERNATIONAL SEAFOOD: Shareholder Receives Wind-Up Report
----------------------------------------------------------
The shareholder of International Seafood Trading Limited received
on Dec. 17, 2015, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Company Secretaries Ltd.
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Andrew Hislop
Telephone: +44 1481 211273
JAIBA INVESTMENT: Members Receive Wind-Up Report
------------------------------------------------
The members of Jaiba Investment Company received on Dec. 23, 2015,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
MADISON NICHE: Chapter 15 Case Summary
--------------------------------------
Chapter 15 Petitioners: Christopher Barnett Kennedy and Matthew
James Wright
Chapter 15 Debtors:
Madison Niche Assets Fund, Ltd. 16-10043
RHSW (Cayman) Limited
2nd Fl., Windward 1, Regatta Office Park
P.O. Box 897
Grand Cayman KY1-11103
Cayman Islands
Madison Niche Opportunities Fund, Ltd. 16-10045
SW (Cayman) Limited
2nd Fl., Windward 1, Regatta Office Park
P.O. Box 897
Grand Cayman KY1-11103
Cayman Islands
Chapter 15 Petition Date: January 11, 2016
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Judge: Hon. Kevin J. Carey
Chapter 15 Petitioners' Counsel: Matthew Barry Lunn, Esq.
Edmon L. Morton, Esq.
Ian J. Bambrick, Esq.
YOUNG, CONAWAY, STARGATT & TAYLOR
LLP
1000 North King Street
Wilmington, DE 19801
Tel: 302-571-6600
Email: MLunn@ycst.com
emorton@ycst.com
ibambrick@ycst.com
- and -
Warren E. Gluck, Esq.
Barbra R. Parlin, Esq.
Kathleen M. St. John, Esq.
HOLLAND & KNIGHT LLP
31 West 52nd Street
New York, New York 10019
Tel: (212) 513-3200
Fax: (212) 385-9010
Email: warren.gluck@hklaw.com
barbra.parlin@hklaw.com
kathleen.stjohn@hklaw.com
Estimated Assets: Not Indicated
Estimated Debts: Not Indicated
MB FEEDER: Members Receive Wind-Up Report
-----------------------------------------
The members of MB Feeder Fund LP received on Dec. 31, 2015, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ken Stewart
c/o Apex Fund Services (Cayman) Limited
161a Artillery Court
P.O. Box 10085 Grand Cayman KY1 1001
Cayman Islands
MB MASTER: Members Receive Wind-Up Report
-----------------------------------------
The members of MB Master Fund LP received on Dec. 31, 2015, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ken Stewart
c/o Apex Fund Services (Cayman) Limited
161a Artillery Court
P.O. Box 10085 Grand Cayman KY1 1001
Cayman Islands
MOSAIC FUNDING: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Mosaic Funding Limited received on Jan. 5,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Westport Services Ltd.
c/o Gillian Allan
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
NEW SOLAR: Shareholders Receive Wind-Up Report
----------------------------------------------
The shareholders of New Solar Cayman Limited received on Dec. 17,
2015, the liquidator's report on the company's wind-up proceedings
and property disposal.
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
PUNTO DOS: Members Receive Wind-Up Report
-----------------------------------------
The members of Punto Dos Investments Limited received on Dec. 23,
2015, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
SAF AM: Members Receive Wind-Up Report
--------------------------------------
The members of SAF AM Ltd. received on Dec. 31, 2015, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ken Stewart
c/o Apex Fund Services (Cayman) Limited
161a Artillery Court
P.O. Box 10085 Grand Cayman KY1 1001
Cayman Islands
SIGNUM VERDE: Fitch Downgrades Credit-Linked Notes Rating to B+sf
-----------------------------------------------------------------
Fitch Ratings has downgraded the following rating of Signum Verde
Limited 2007-04, Cayman Islands (Signum 2007-04):
-- CLP4,950,000,000 credit-linked notes downgraded to 'B+sf' from
'BB-sf'; Outlook remains Negative.
KEY RATING DRIVERS
The downgrade follows Fitch's rating action of the reference
entity, Petroleo Brasileiro S.A. (Petrobras). Fitch monitors the
performance of the underlying risk-presenting entities and adjusts
the rating accordingly through application of its current credit-
linked note (CLN) criteria, 'Global Rating Criteria for Single-
and Multi-Name Credit-Linked Notes' dated March 9, 2015.
The rating considers the credit quality of Petrobras' current
Issuer Default Rating (IDR) of 'BB+', Negative Outlook by Fitch;
Goldman Sachs Group, Inc. as swap counterparty (rated 'A', Stable
Outlook ), and Citigroup Inc. subordinated notes (CUSIP 172967BL4,
rated 'A-'). The Rating Outlook reflects the Outlook on the main
risk driver, Petrobras, which is the lowest-rated risk-presenting
entity.
RATING SENSITIVITIES
The rating remains sensitive to rating migration of each risk-
presenting entity. A downgrade of Petrobras would likely result in
a downgrade to the notes.
Signum Verde Limited 2007-4, Cayman Islands, (the Issuer) is a
single-name CLN transaction designed to provide credit protection
on Petrobras with a reference amount of $US 10 million. This
protection is arranged through a credit default swap (CDS) between
the Issuer and the swap counterparty, Goldman Sachs International
(GSI), guaranteed by Goldman Sachs Group, Inc.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation
to this rating action.
TAGUS FUND: Shareholder Receives Wind-Up Report
-----------------------------------------------
The shareholder of Tagus Fund Limited received on Dec. 15, 2015,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Acorn Management Services Company Inc.
c/o Justin Savage
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949 9877
UC MILESTONE: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of UC Milestone, Ltd. received on Dec. 17, 2015,
the liquidator's report on the company's wind-up proceedings and
property disposal.
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
UC SAVER: Shareholders Receive Wind-Up Report
---------------------------------------------
The shareholders of UC Saver, Ltd. received on Dec. 17, 2015, the
liquidator's report on the company's wind-up proceedings and
property disposal.
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
VANITY AVIATION: Members Receive Wind-Up Report
-----------------------------------------------
The members of Vanity Aviation received on Dec. 23, 2015, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ellen J. Christian
c/o BNP Paribas Bank & Trust Cayman Limited
P.O. Box 10632, 3rd Floor, Royal Bank House
24 Shedden Road, George Town
Grand Cayman KY1-1006
Cayman Islands
e-mail: ellen.christian@bnpparibas.ky
VILLAS FUNDING: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Villas Funding Limited received on Jan. 5,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Westport Services Ltd.
c/o Gillian Allan
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Discloses US$8.9MM Facility; Ambitious Revamp
-----------------------------------------------------------------
Dominican Today reports that Foreign Minister Andres Navarro
disclosed the construction of a convention center and an
underground parking at a cost of RD$400.0 million (US$8.9
million), to prepare the country's Foreign Ministry for the more
than 20 international events slated for this year.
Minister Navarro said the funds are part of the savings from
cutting the Foreign Service payroll, according to Dominican Today.
Speaking at the Dominican Diplomacy Second Forum 2016, the
official said the savings will also fund the new consular services
system to start operations during the second half of the year, and
to open the offices to attend Dominicans abroad, the report notes.
Mr. Navarro also revealed that his agency will get an additional
US$11 million from this year's budget to finance the ambitious
foreign agenda planned for 2016, the report relays.
The report discloses that Mr. Navarro said the Foreign Service
will be transformed with salary scales, reorganized personnel
according to the country's interests and their incorporation to
the civil service career.
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'. The Rating Outlooks on the long-term IDRs are revised to
Positive from Stable. The issue ratings on the Dominican
Republic's senior unsecured foreign and local currency bonds are
affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the
short-term foreign currency IDR at 'B'.
DOMINICAN REPUBLIC: AMCHAM Hails End of US Ban on Farm Products
---------------------------------------------------------------
Dominican Today reports that the American Chamber of Commerce
(AMCHAMDR) hailed the US Agriculture Dept. and Plant Health
(APHIS) decision to lift the ban on the import of various
vegetables and citrus fruits from Dominican Republic.
It said agriculture is one of the sectors that benefits from the
DRCAFTA trade deal, and which has been affected by the US ban on
the presence of the medfly, according to Dominican Today.
AMCHAMDR lauded the Dominican Government's efforts to maintain a
free flow of information with US authorities on the monitoring and
surveillance program to eradicate the fruit fly, as described by
APHIS senior official Michael Guidicipietro, the report notes.
"The appearance of this pest teaches us some lessons from which we
can emphasize that food security is a priority and increasingly
complex in the US market, and other developed countries and
therefore should be very effective in the control of the entire
production and supply chain and be responsible for detecting
problems and address them to avoid greater ills," AMCHAMDR said in
an emailed statement obtained by Dominican Today.
"There's also a need for us to diversify our production capacity
with export quality. And thirdly, we must have institutional
strength, with well-crafted arguments based on science and updated
in order to minimize the effects which have become apparent when a
product is prevented from leaving to markets that we have
conquered with great effort and others which others can take away
if they replace us," the statement added.
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'. The Rating Outlooks on the long-term IDRs are revised to
Positive from Stable. The issue ratings on the Dominican
Republic's senior unsecured foreign and local currency bonds are
affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the
short-term foreign currency IDR at 'B'.
===========
M E X I C O
===========
CEMENTOS DE CHIHUAHUA: Fitch Hikes Issuer Default Ratings to 'BB'
-----------------------------------------------------------------
Fitch Ratings has upgraded Grupo Cementos de Chihuahua, S.A.B. de
C.V.'s (GCC) local and foreign currency Issuer Default Ratings
(IDRs) to 'BB' from 'BB-'. Fitch also upgraded GCC's $US 260
million senior notes due 2020 to 'BB' from 'BB-'. The Rating
Outlook is Stable.
The ratings upgrade reflects the strengthening of U.S. residential
construction across several of the company's markets as well as a
favorable economic environment in Northern Mexico that should
support cement demand in the state of Chihuahua. Robust demand
should result in continued high utilization rates over the next
few years and allow GCC to maintain solid profitability and cash
flow generation. The upgrade also considers GCC's improved credit
profile following debt repayments during the past year, the recent
bank debt refinancing and its solid liquidity, which should allow
it to finance its planned South Dakota plant expansion without
incurring debt.
GCC's ratings reflect the company's solid business position in the
cement, ready mix and aggregates segments in the regions where it
has a presence; diversified operations in Mexico and the U.S. in
the non-residential and residential sectors; as well as positive
free cash flow generation through the recent industry cycle. The
ratings are limited by the company's scale relative to industry
peers' and by the cyclicality of the cement industry.
KEY RATING DRIVERS
Leading Market Shares
Grupo Cementos de Chihuahua, S.A.B. de C.V.'s (GCC) is the largest
cement producer in the state of Chihuahua across all product
segments. It also has strong cement market positions in Colorado,
North and South Dakota, Wyoming, New Mexico and the El Paso, TX,
area. Its contiguous presence from Chihuahua in northern Mexico to
North Dakota and efficient distribution and logistics allow GCC to
serve markets in 13 states across the U.S. Midwest, and the
southwest and mountain regions. The company generates about 70% of
revenues from its U.S. operations.
Mexico Better Than Expected
Cement sales volumes of GCC's Mexican operations grew 12% in the
first 9 months of 2015 after growing 7% in 2014. Prices also
increased and the company benefited from increased cement exports
to the U.S. Fitch believes the company could continue to benefit
from residential construction growth due to low unemployment and
increased manufacturing activity in Northern Mexico. Growth in
middle income housing and available credit should help to mitigate
a projected slowdown in public infrastructure spending in
Chihuahua by replacing some of the lost lower margin bulk volume
with higher margin retail cement sales.
Sound U.S. Operating Performance
U.S. cement sales volumes year-to-date to September 2015 grew 2%
holding up at the already robust levels of 2014 when the company's
U.S. capacity utilization was strong at around 90% and cement
volumes grew 10% from the prior year. Robust volumes coupled with
better cement and ready-mix pricing, and lower freight and fuel
costs as a result of cheaper natural gas and gasoline in the U.S.
contributed to consolidated EBITDA margin expansion and healthy
EBITDA growth. As of Sept. 30, 2015 EBITDA for the latest-12
months grew to $US 159 million from $US 143 million a year ago,
and EBITDA margins expanded to 20.8% from 19.5%, respectively.
Manageable Exposure to Oil and Gas
The majority of GCC's markets showed above-average volume recovery
from 2011-2014, partly due to their direct and indirect exposure
to the agriculture and oil and gas sectors, which showed positive
momentum. In Fitch's view, a slowdown in cement demand related to
energy infrastructure spending should be manageable for GCC as
residential construction is projected to expand at a faster pace
in most markets and public construction spending should counter
some the negative effect of lower demand from the energy sector.
Operating Cash Flow Expansion Should Slow
GCC's cash flow from operations (CFFO) was $US 108 million in
2014, significantly higher than the $US 60 million-$US 80 million
per year for 2010-2013, primarily due to solid performance of
GCC's U.S. division. Fitch projects CFFO to remain around $US 110
million over the next two years, reflecting modest volume declines
in Mexico due to lower infrastructure spending and flat volumes in
the U.S., partially offset by a benign pricing environment in both
countries, and an improved product mix in Chihuahua.
Expansion Capex to be Financed Organically
GCC recently announced plans to expand the cement capacity of its
Rapid City, SD plant by 440,000 tons per year. The company should
be able to finance, through cash flow generation and available
cash, all of its capex needs including the $US 90 million total
investment in the plant over the next two years. Considering
modest projected dividends of $US 10 million-$US 15 million and
maintenance capex of about $US 53 million, FCF should be about $US
20 million in 2015, negative about $US 30 million in 2016 and
about neutral in 2017.
Total debt as of Sept. 30, 2015 was $US 437 million, below the $US
474 million registered a year ago. Total (debt/EBITDA) and net
leverage were 2.8x and 2.1x respectively which compare favorably
to 3.3x and 2.8x as of third-quarter 2014. GCC should generate
about $US 165 million of EBITDA over the next few years which
should allow it to maintain total leverage levels stable at or
near management's target of 2.5-2.75x.
KEY ASSUMPTIONS
-- Revenues measured in $US grow mid-single digits, mostly
reflecting price gains;
-- EBITDA hovers around $US 165 million for the next few years
and
margins remain above 21%;
-- Capex is financed mostly through internal cash flow generation
and available cash;
-- Dividends remain low in the $US 10 million-$US 15 million per
year range.
RATING SENSITIVITIES
Future developments that may, individually or collectively, lead
to a negative rating action include:
-- Weak operational results reflecting increased price
competition, market share loss or a material slowdown in
cement demand on GCC's key markets of Chihuahua, Colorado,
South Dakota and New Mexico;
-- A large debt-financed acquisition that increases total
leverage above 3.5x;
-- A down turn industry cycle that causes net debt/EBITDA to rise
above 3.0x;
-- Sustained negative FCF generation.
A rating upgrade in the near term is unlikely considering the
company's, business profile, target capital structure and already
strong credit metrics. A return to positive FCF after its South
Dakota expansion project, together with a track record of
maintaining total leverage levels at or below 2x and a strong
liquidity profile would be considered positive for credit quality.
LIQUIDITY
GCC's liquidity relative to debt maturities and projected
investments remains adequate. In July 2015, the company announced
the refinancing of $US 194 million of syndicated bank debt. This
new five-year amortizing loan frees GCC's maturity profile for the
next two years and should allow the company to finance its capex
plan for the next two years through internal cash flow generation
and available cash. As of Sept. 30, 2015 GCC's cash position was
$US 96 million or $US 18 million higher than a year ago, despite
net debt repayments of $US 32 million during the last 12 months.
Committed credit facilities of $US 30 million maturing over the
next two years also provide additional liquidity support.
======================
P U E R T O R I C O
======================
FARMACIA BRISAS: Case Summary & 19 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Farmacia Brisas Del Mar, Inc.
Box 1238
Luquillo, PR 00773-2463
Case No.: 16-00054
Chapter 11 Petition Date: January 8, 2016
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Judge: Hon. Lamoutte Inclan
Debtor's Counsel: Victor Gratacos Diaz, Esq.
GRATACOS LAW FIRM, P.S.C.
P.O. Box 7571
Caguas, PR 00726
Tel: 787 746-4772
Email: bankruptcy@gratacoslaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ana I De La Cruz Padilla, secretary.
A list of the Debtor's 19 largest unsecured creditors is available
for free at http://bankrupt.com/misc/prb16-00054.pdf
PUERTO DEL REY: District Court Remands "Cortes" Suit
----------------------------------------------------
Due to the lack of subject-matter jurisdiction, Judge Jose Antonio
Fuste of the United States District Court for the District of
Puerto Rico remanded to the Court of First Instance, Fajardo
Superior Court, the case captioned YVETTE CORTES-PACHECO, et al.,
Plaintiffs, v. PBF-TEP ACQUISITIONS, INC., et al., Defendants,
Civil No. 3:15-CV-01460 (JAF) (D.P.R.).
On or about March 12, 2015, a civil action was commenced by Yvette
Cortes-Pacheco, her husband Eric Ramos-Martinez, their conjugal
partnership, and their child Kristian Javier Melendez-Cortes
against PBF-TEP Acquisitions Inc., PDR Acquisitions LLC, Marina
PDR Tallyman LLC, Marina PDR Equipment LLC, Marina PDR Operations
LLC, and executive officers Nicholas Prouty and Jeremy Griffiths.
The Puerto Rico local-law claims stem from the defendants'
allegedly wrongful firing of Cortes from her job at Marina Puerto
del Rey in Fajardo, Puerto Rico, which the defendants allegedly
own and operate. The complaint was filed in the Court of First
Instance, Fajardo Superior Court.
On April 24, 2015, the defendants removed the action to the United
States District Court for the District of Puerto Rico on the
grounds that every non-diverse defendant had been "fraudulently
joined" and thus should be dismissed and that an alleged federal
defense to the plaintiffs' local-law claims triggered the said
court's arising-under jurisdiction.
Judge Fuste found the defendants' argument in favor of the court's
diversity jurisdiction to be inadequate, because while they
alleged that Marina PDR Equipment was "a Delaware limited
liability company," they failed to identify the company's members
or their citizenship. The judge explained that these allegations
are "insufficient to establish that the parties are diverse for
purposes of diversity jurisdiction because the citizenship of a
limited liability company 'is determined by the citizenship of all
of its members.'"
Judge Fuste also found nothing on the face of the complaint that
would demonstrate that virtually all the defendants have been
fraudulently joined to the action.
A full-text copy of Judge Fuste's December 22, 2015 remand order
is available at http://is.gd/P6khDFfrom Leagle.com.
Yvette Cortes-Pacheco, Khristian Melendez-Cortes, Conjugal
Partnership Doe-Cortes are represented by:
Jessica A. Figueroa-Arce, Esq.
Moraima S. Rios-Robles, Esq.
ARROYO & RIOS LAW OFFICES, P.S.C.
Meramar Plaza
101 San Patricio Ave.
Guaynabo PR 00968
Tel: (787)522-8080
Fax: (787)523-5696
Email: jfigueroa@arroyorioslaw.com
mrios@arroyorioslaw.com
PBF-TEP Acquisitions, Inc., Marina PDR Operations, LLC, Marina PDR
Equipment, LLC, Marina PDR Tallyman, LLC and PDR Acquisitions, LLC
are represented by:
Jaime Luis Sanabria-Montanez, Esq.
SCHUSTER & AGUILO LLC
221 Ponce de Leon Ave. 15th Floor
Hato Rey, PR 00917-3128
Tel: (787)765-4646
Fax: (787)765-4611
-- and --
Pedro A. Buso-Garcia, Esq.
BARRESI LAW OFFICE
Jeremy Griffiths, Nicholas Prouty, Conjugal Partnership Prouty-Doe
and Conjugal Partnership Griffiths-Doe are represented by:
Roberto Abesada-Aguet, Esq.
CORREA ACEVEDO & ABESADA LAW OFFICES, PSC
Centro Internacional De Mercado, Torre II, 90 Carr.
Suite 470
Guaynabo, PR 00968
Tel: (787)273-8300
About Puerto del Rey
Puerto del Rey, Inc., a/k/a Marina Puerto Del Rey, filed a
petition for Chapter 11 protection (Bankr. D.P.R. Case No.
12-10295) on Dec. 28, 2012, in Old San Juan, Puerto Rico, owing
$43 million to secured lender First Bank Puerto Rico Inc. The
22-acre facility in Fajardo, Puerto Rico, has 918 wet slips and
dry storage for 600 boats. Bankruptcy was designed to forestall
creditors from attaching assets. In its amended schedules, the
Debtor disclosed $99.9 million in assets and $44.6 million in
liabilities as of the Petition Date.
The Charles A. Cuprill, PSC Law Offices, in San Juan, Puerto Rico,
represents the Debtor as counsel.
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
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issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
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***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
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