/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160225.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, February 25, 2016, Vol. 17, No. 39 Headlines B E R M U D A CENTRAL EUROPEAN: S&P Raises CCR to 'B+'; Outlook Stable B R A Z I L BRAZIL: Real Falls as Goldman Sachs Cites Fiscal Insolvency Risk BTG PACTUAL: Chile Unit Cuts 16% of Jobs as Brazil Scandal Bites CNOVA N.V.: Faces "Stevenson" Securities Class Action in NY C A Y M A N I S L A N D S 1794 COMMODORE: Shareholders Receive Wind-Up Report 1794 EVENT: Shareholders Receive Wind-Up Report BAER'S FURNITURE: "Gray" Suit Seeks Unpaid OT Wages Under FLSA BANIF SECURITIES: Members Receive Wind-Up Report CANTHILL LIMITED: Members Receive Wind-Up Report CONUS FUND: Shareholder Receives Wind-Up Report DEBA LIMITED: Shareholder Receives Wind-Up Report EM PARTNERS: Shareholders Receive Wind-Up Report HARD ASSETS: Shareholder Receives Wind-Up Report HARD ASSETS MASTER: Shareholder Receives Wind-Up Report MIURA GLOBAL: Shareholders Receive Wind-Up Report MODULA CAPITAL: Shareholders Receive Wind-Up Report PENNANT CREDIT: Shareholder Receives Wind-Up Report POTOMAC RIVER: Shareholder Receives Wind-Up Report PRIME STARS: Members Receive Wind-Up Report QUOVIS LIMITED: Members Receive Wind-Up Report RP CAPITAL: Members Receive Wind-Up Report RUSSEL INVESTMENT: Shareholder Receives Wind-Up Report SUPREME BRIGHT: Sole Member Receives Wind-Up Report TRITON 700: Members Receive Wind-Up Report UFG REAL: Shareholder Receives Wind-Up Report WHITE LOTUS: Members Receive Wind-Up Report M E X I C O GRUPO SENDA: S&P Raises GS LT CCR to 'B'; Outlook Stable MEXICO: Economy Grows 2.5% in 2015 P U E R T O R I C O PUERTO RICO: FINRA Finds UBS Liable For $1.5MM in Bond Case REDONDO CONSTRUCTION: 1st Cir. Vacates Judgment in PRHTA Suit V E N E Z U E L A PETROLEOS DE VENEZUELA: New Military Company to Provide Services - - - - - ============= B E R M U D A ============= CENTRAL EUROPEAN: S&P Raises CCR to 'B+'; Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services said that it raised to 'B+' from 'B' its corporate credit rating on Bermuda-registered TV broadcaster Central European Media Enterprises Ltd. (CME). The outlook is stable. The upgrade of CME and the upward revision of the stand-alone credit profile (SACP) reflect S&P's view that CME has alleviated the short-term risk of financial distress by arranging the refinancing of about $815 million due in 2017. At the same time, S&P believes that the company's capital structure is unsustainable over the long term. S&P considers that CME's high debt level and the risk of its earnings growth being depressed by unfavorable end markets or by an unfavorable exchange rate of local currencies to the U.S. dollar, could prevent CME from timely leverage reduction or refinancing of its debt instruments with banks or in the capital market on a stand-alone basis. In the year to Dec. 31, 2015, the company reported about $123 million operating income before depreciation and amortization, a 30% increase year-on-year at actual rates. CME posted about $1.1 billion of debt as of Dec. 31, 2015. According to S&P's base case, CME will post a Standard & Poor's-adjusted EBITDA of about $140 million-$145 million for 2016, and about $1.16 billion adjusted debt, translating to a debt-to-EBITDA leverage ratio of about 8x. Although S&P acknowledges that trading conditions in CME's main markets have improved over the past few quarters, CME remains exposed to economic uncertainty in its major markets and foreign-exchange risks. Most of its revenues are generated in euros or euro-linked currencies, while about a quarter of its costs are related to foreign programming and are paid in U.S. dollars. This depresses profitability when the U.S. dollar strengthens against the euro. At the same time, after the refinancing of the $540 million U.S. dollar-denominated debt with the EUR469 million euro-denominated bank facility, all CME's debt will be denominated in euros, which will alleviate the foreign exchange risk to its cash flows. Under S&P's group rating methodology, it continues to consider CME a strategically important investment for its key shareholder, U.S.-based diversified media and entertainment company Time Warner. Time Warner currently has a 76% fully diluted economic interest and a 49.4% voting stake in CME. In addition, pro forma for the recent refinancing transaction, Time Warner guarantees all of CME's drawn debt, as well as provides the revolving credit facility (RCF). S&P believes that the CME investment is an important part of Time Warner's international growth strategy. Time Warner has historically stressed that, with the maturation of the U.S. domestic cable television market, cable network segment growth would increasingly come from its international operations and investments. With about $1.9 billion in total accumulated investment and debt commitments and guarantees since 2009, the CME investment is by far Time Warner's largest international television network investment. CME's strong positions in its markets and improvement in its operating performance in recent quarters and forecast over medium term underpins S&P's assessment of CME's strategically important status for Time Warner and S&P's belief that it is unlikely to be sold. In S&P's base case, it assumes: -- Approximately 2.5%-3.0% growth of TV advertising in CME's markets in 2016-2017. -- S&P's expectation that reported revenue will grow by 2%-3% annually from 2016, mainly supported by improving performance in the Czech Republic and Romania, the group's largest markets. S&P also anticipates carriage fees will contribute to revenue growth. At the same time, S&P sees downside risk stemming from an unfavorable U.S. dollar to euro exchange rate. -- Adjusted EBITDA of about $140 million-$155 million in 2016- 2017--corresponding with an EBITDA margin of about 23%-24%-- caused by a significant reduction in acquired content costs, partially offset by investment in local content. A working capital outflow of up to $15 million annually. No acquisition activity or shareholder remuneration. Based on these assumptions, S&P arrives at these credit measures: -- High, albeit declining, adjusted leverage of about 7.5x-8.0x in 2016 and 2017. EBITDA interest coverage of about 1.2x in 2016 with little room for improvement due to the high amount of paid-in-kind financing costs. Free operating cash flow of about $30 million in 2016 rising to about $50 million in 2017. The stable outlook reflects S&P's belief that CME will remain an important part of Time Warner's international growth strategy over the next 12 months and a strategically important investment for Time Warner. However, S&P thinks CME has the ability to benefit from the anticipated mildly improving operating environment and avoid a weakening of its liquidity. S&P could downgrade CME if it considered its strategically important status to Time Warner to have diminished. S&P could also lower the rating if it perceived an increased risk of a short-term financial distress or faster-than-anticipated deterioration of liquidity over the coming months. This could stem from lower-than-expected EBITDA growth leading CME to fail to maintain adequate headroom under its financial covenants. Finally, S&P could lower its rating on CME if S&P was to lower its rating on Time Warner by multiple notches, which S&P considers unlikely. S&P considers an upgrade over the next 12 months to be unlikely because it already incorporates a material improvement in operating performance and leverage reduction in the current ratings. Any upgrade would be contingent on S&P's assessment of CME's group status for Time Warner being higher than the current strategically important. =========== B R A Z I L =========== BRAZIL: Real Falls as Goldman Sachs Cites Fiscal Insolvency Risk ---------------------------------------------------------------- Paula Sambo at Bloomberg News reports that Brazil's real weakened after inflation surprisingly accelerated and as Goldman Sachs said the currency is poised to drop another 11 percent this year while the government struggles to contain consumer-price increases and shore up its budget. Sentiment in Brazil remains distinctively negative and the dominant view is that things will get worse before they get better, Alberto Ramos, a senior economist at the bank, wrote in a report after a three-day visit to Brazil and meetings with policy makers at the Finance Ministry, central bank, national development bank and Petrobras, according to Bloomberg News. "There is a growing perception among local investors and analysts that Brazil is on a trajectory that could eventually lead to fiscal insolvency over the medium-term," Bloomberg News quoted Mr. Ramos as saying. "The main concern is that the authorities are yet to show either strong willingness or political strength to deal successfully with these growing challenges," Mr. Ramos added. The currency slid 0.3 percent to 3.9588 per dollar in Sao Paulo on Feb. 23. Goldman Sachs expects the real to depreciate to as weak as 4.4 per dollar this year, about 10 percent lower than current levels, Bloomberg News notes. Bloomberg News says that the real is the worst performing major currency over the past 12 months, down 27 percent as the country heads to its deepest recession in more than a century and the government posts a record budget deficit. Policy makers have struggled to pass measures that would help the economy amid an effort to impeach President Dilma Rousseff that has dominated the country's political discourse, Bloomberg News discloses. The currency gained Feb. 22 after Brazilian police carried out another series of search and arrest warrants related to the so- called Carwash scheme of alleged kickbacks at the state-run oil company, Petroleo Brasileiro SA, Bloomberg News relays. An arrest warrant for Rousseff's former campaign strategist fueled speculation that the electoral court, known as TSE, could force new elections this year, Bloomberg News notes. Eurasia Group put the probability at 20 percent. "The Carwash probe and its potential impact on budget consolidation are causing a pullback in carry positions at the moment," said Ipek Ozkardeskaya, an analyst at London Capital Group. Carry investors are those who buy the real to benefit from the currency's high interest rates relative to the dollar and euro, Bloomberg News notes. Brazil's benchmark is 14.25 percent. Inflation topped all analyst forecasts in the year through mid- February, accelerating to 10.84 percent after the central bank refrained from raising the lending rate, which is already the highest since 2006, and the government proposed loosening fiscal targets, Bloomberg News relays. Swap rates on the contract maturing in January 2017, a gauge of expectations for interest-rate moves, rose 0.025 percentage point to 14.205 percent, adds Bloomberg News. BTG PACTUAL: Chile Unit Cuts 16% of Jobs as Brazil Scandal Bites ---------------------------------------------------------------- Felipe Iturrieta at Reuters reports that the Chilean arm of Brazilian financial group BTG Pactual said that it had fired 16 percent of its workforce, as part of cost-cutting restructuring in the wider company following the arrest of its billionaire founder. BTG Pactual Chile said that the reduction of 58 workers was aimed at cutting costs by around 25 percent, according to Reuters. Last month, the Brazilian parent fired some 18 percent of its Brazil-based staff. It is seeking to sell assets and raise cash following the arrest of its billionaire founder Andre Esteves in November, which triggered massive client money outflows, the report notes. The report relays that Mr. Esteves was detained on suspicion of obstructing the largest graft probe in Brazil's history. BTG Pactual Chile said the job cuts would not affect business operations. Despite press speculation about an impending sale late last year, the Chilean business has not been formally put up for sale, the report notes. CNOVA N.V.: Faces "Stevenson" Securities Class Action in NY ----------------------------------------------------------- William J. Stevenson, individually and on behalf of all others similarly situated, the Plaintiff, v. Cnova N.V., Vitor Faga De Almeida, German Quiroga, Emmanuel Grenier, Jean Charles Naouri, L¡bano Miranda Barroso, Eleazar de Carvalho Filho, Didier Leveque, Ronaldo Iabrudi Dos Santos Pereira, Arnaud Strasser, Fernando Tracanella, Nicolas Woussen, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) INC., Natixis Securities Americas LLC, and SG Americas Securities, LLC, the Defendants, Case No. 1:16-cv-00444 (S.D.N.Y., January 20, 2016), seeks to pursue remedies under the Securities Act, as a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's securities. On November 19, 2014, Cnova priced its IPO of 26,800,000 shares, at a price of $7.00 per share, exclusive of the underwriters' over-allotment option to purchase 4,020,000 additional shares. On December 18, 2015, after the market closed, Cnova issued a press release entitled "Cnova N.V. Initiates a Review of Inventory in Brazil". In relevant part, the Company disclosed that its Board of Directors engaged legal advisors and external forensic accountants to perform a review of issues related to inventory management. According to the Company, the issues involve the handling of product returns and damaged product inventory at distribution centers of Cnova's Brazilian subsidiary, Cnova Comercio Eletronico S.A. (Cnova Brazil). Cnova N.V. operates as an e-Commerce company in Europe, Latin America, Asia, and Africa. It operates in two segments, Cdiscount and Cnova Brazil. The company offers televisions, mobile phones, tablet computers, DVD/CD players, MP3 players, cameras, and home entertainment and stereo systems, as well as various accessories and other consumer electronic products under third party brands and private labels, such as Continental Edison and Oceanic. The Company is headquartered at Schiphol, Netherlands. The Plaintiff is represented by: Lesley F. Portnoy, Esq. Lionel Z. Glancy, Esq. Robert V. Prongay, Esq. Casey E. Sadler, Esq. Charles H. Linehan, Esq. GLANCY PRONGAY & MURRAY LLP 122 East 42nd Street, Suite 2920 New York, NY 10168 Telephone: (212) 682 5340 Facsimile: (212) 884 0988 E-mail: lportnoy@glancylaw.com - and - Howard G. Smith, Esq. LAW OFFICES OF HOWARD G. SMITH 3070 Bristol Pike, Suite 112 Bensalem, PA 19020 Telephone: (215) 638 4847 Facsimile: (215) 638 4867 ========================== C A Y M A N I S L A N D S ========================== 1794 COMMODORE: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of The 1794 Commodore Overseas Fund, Ltd. received on Jan. 21, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 1794 EVENT: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of The 1794 Event Driven Overseas Fund, Ltd. received on Jan. 21, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 BAER'S FURNITURE: "Gray" Suit Seeks Unpaid OT Wages Under FLSA -------------------------------------------------------------- Stanley Gray, by and through the undersigned counsel and on behalf of all those similarly situated, the Plaintiff, v. Baer's Furniture Co., Inc., Ronald W. Baer, individually, and Gary Peacock, individually, the Defendants, Case No. 0:16-cv- 60097-MGC (S.D. Fla., January 15, 2016), seeks to recover unpaid overtime wages, damages for retaliation, liquidated damages, post- judgment interest, and reasonable attorneys' fee and costs from Defendants, for violation of the Fair Labor Standards Act. Baer's Furniture, a Florida corporation, owns and operates a chain of home furnishing stores in Florida. It provides living, bedroom, dining, entertainment, office, and outdoor furniture, as well as mattresses; and professional interior design services and consultations. The company also serves shoppers from the Caribbean, including Freeport and Nassau, Bahamas, the Cayman Islands, the Virgin Islands, the Florida Keys, and more. It sells products online. The Company was founded in 1945 and is headquartered in Pompano Beach, Florida with store locations in Casselberry, Winter Garden, Boca Raton, Dania Beach, Fort Lauderdale, Ft. Myers, Miami, Naples, North Palm Beach, and Pembroke Pines. The Plaintiff is represented by: Brian J. Militzok, Esq. MILITZOK LAW, P.A. Wells Fargo Building 4600 Sheridan Street, Suite 402 Hollywood, Florida 33021 Telephone: (954) 780-8228 Facsimile: (954) 719-4016 E-mail: bjm@militzoklaw.com BANIF SECURITIES: Members Receive Wind-Up Report ------------------------------------------------ The members of Banif Securities Holdings Ltd. received on Jan. 29, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Luca Cantelli Candace L. Ebanks Finab-International Corporate Management Genesis Building Services Ltd., 3rd Floor P.O. Box 32338 Grand Cayman KY1-1209 Cayman Islands Telephone: (345) 945-8060 Facsimile: (345) 945-8069 CANTHILL LIMITED: Members Receive Wind-Up Report ------------------------------------------------ The members of Canthill Limited received on Jan. 15, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Bute Director Services Ltd. c/o Jo-Anne Maher Telephone: (345) 814 9255 Facsimile: (345) 949 4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands CONUS FUND: Shareholder Receives Wind-Up Report ----------------------------------------------- The shareholder of The Conus Fund Offshore Limited received on Jan. 12, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Conus Partners, Inc. c/o Justin Savage 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 DEBA LIMITED: Shareholder Receives Wind-Up Report ------------------------------------------------- The shareholder of Deba Limited received on Jan. 28, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 EM PARTNERS: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of EM Partners Ltd. received on Jan. 18, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Markus Stutz Haussmann Treuhand AG Haussmann Treuhand AG Seefeldstrasse 45 8008 Zurich Switzerland Telephone: 011 41 44 254 31 31 Facsimile: 011 41 44 254 31 80 HARD ASSETS: Shareholder Receives Wind-Up Report ------------------------------------------------ The shareholder of Hard Assets 2x Fund Ltd. received on Jan. 12, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Van Eck Absolute Return Advisers Corp. c/o Justin Savage 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 HARD ASSETS MASTER: Shareholder Receives Wind-Up Report ------------------------------------------------------- The shareholder of Hard Assets 2x Master Fund Ltd. received on Jan. 12, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Van Eck Absolute Return Advisers Corp. c/o Justin Savage 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 MIURA GLOBAL: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Miura Global Telecom And Broadband Master Fund, Ltd. received on Jan. 21, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 MODULA CAPITAL: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Modula Capital One (MC-1) received on Jan. 13, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray MG Management Ltd. Landmark Square, 2nd Floor 64 Earth Close, Seven Mile Beach P.O. Box 30116 Grand Cayman KY1-1201 Cayman Islands Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 PENNANT CREDIT: Shareholder Receives Wind-Up Report --------------------------------------------------- The shareholder of Pennant Credit Opportunities Offshore Fund, Ltd. received on Jan. 12, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Pennant Capital Management, L.L.C. c/o Tim Cone 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 POTOMAC RIVER: Shareholder Receives Wind-Up Report -------------------------------------------------- The shareholder of Potomac River Capital SPV, Ltd. received on Jan. 13, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Potomac River Capital, LLC c/o Justin Savage 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 PRIME STARS: Members Receive Wind-Up Report ------------------------------------------- The members of Prime Stars Investments Limited received on Jan. 11, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands QUOVIS LIMITED: Members Receive Wind-Up Report ---------------------------------------------- The members of Quovis Limited received on Jan. 11, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Golden Eagle Holdings Ltd. c/o Barclays Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands RP CAPITAL: Members Receive Wind-Up Report ------------------------------------------ The members of RP Capital Advisors Limited received on Jan. 22, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alan Turner Turners Management Ltd. Strathvale House, 90 North Church Street P.O. Box 2636 Grand Cayman, KY1-1102 Cayman Islands Telephone: +1 (345) 814 0700 RUSSEL INVESTMENT: Shareholder Receives Wind-Up Report ------------------------------------------------------ The shareholder of Russel Investment Fund received on Jan. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: John S. Sullivan c/o Tim Cone 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 SUPREME BRIGHT: Sole Member Receives Wind-Up Report --------------------------------------------------- The sole member of Supreme Bright Capital Management received on Jan. 18, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Yang Wei Two Exchange Square, Rm 4603 8 Connaught Place, Central Hong Kong TRITON 700: Members Receive Wind-Up Report ------------------------------------------ The members of Triton 700 Ltd. received on Jan. 12, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Fear c/o Ryan Charles P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7364 Facsimile: (345) 945 3902 UFG REAL: Shareholder Receives Wind-Up Report --------------------------------------------- The shareholder of UFG Real Estate Holdco Limited received on Jan. 12, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Piers Dryden 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 WHITE LOTUS: Members Receive Wind-Up Report ------------------------------------------- The members of White Lotus Holdings Limited received on Jan. 11, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Golden Eagle Holdings Ltd. c/o Barclays Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands =========== M E X I C O =========== GRUPO SENDA: S&P Raises GS LT CCR to 'B'; Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services said it raised its global scale long-term corporate credit rating on Grupo Senda Autotransporte S.A. de C.V. to 'B' from 'B-'. At the same time, S&P raised its long term national scale corporate credit rating to 'mxBBB-' from 'mxBB-' and S&P's short term national scale corporate credit and debt ratings to 'mxA-3' from 'mxB'. The outlook is stable. The rating action follows Senda's refinancing of its previous credit facility through a new long-term syndicated loan for about Mexican peso (MXN) 2,200 million issued in two tranches. The first tranche is a seven-year senior unsecured loan of MXN1,725 million, with increasing amortizations bearing a floating rate; the second is an eight-year senior unsecured loan of MXN475 million, with increasing amortizations bearing a fixed rate. In contrast with the previous syndicated facility, Senda now benefits not only from the extension of its debt maturity profile, but also from significantly lower amortizations during the next three years, which, in S&P's opinion, will result in greater financial flexibility and liquidity. In addition, the weighted average of debt maturities increases to about 4.5 years. The new credit facility is fully denominated in pesos, which, in S&P's opinion, eliminates exposure to foreign exchange volatility. The stable outlook reflects S&P's expectation that the company's cash flow generation and liquidity will improve within the next 12 months as passenger traffic in northern Mexico continues to recover, and Senda further expands its personnel transportation segment. The outlook also reflects S&P's expectation that the company will post key credit metrics commensurate with its aggressive financial risk profile for the next two years, with an FFO to debt between 15% and 21% and FFO cash interest coverage above 3.0x. S&P could lower the ratings, if, as a result of lower-than- expected revenue growth, additional leverage or higher-than- expected diesel price increases, the company's operating performance deteriorates in such way that FFO to debt is below 12% and FFO cash interest coverage is below 2.0x, or if lower cash flow generation results in unanticipated liquidity constraints. Although unlikely in the short-term, S&P could upgrade Senda's ratings if its key financial metrics of FFO to EBITDA and FFO to cash interest expenses coverage improve consistently to above 20% and 4.0x, respectively, as a consequence of higher-than-expected revenue growth, better EBITDA margins, and a significant deleverage. MEXICO: Economy Grows 2.5% in 2015 ---------------------------------- EFE News reports that Mexico's gross domestic product (GDP) grew 2.5 percent in 2015, compared to the previous year, boosted by all three sectors of the economy, the National Statistics Institute, or INEGI, said. The figure was within the range laid out in the Finance Secretariat's last estimate, a downward revision released on Aug. 20 that projected GDP growth of between 2 percent and 2.8 percent in 2015, according to EFE News. The secretariat revised its growth estimate downward due to the plunge in oil prices and production, the report notes. Mexico's 2.5 percent economic growth last year marked a slight improvement from 2014, when the economy grew by 2.3 percent, the report relays. The service sector grew 3.3 percent last year, compared to 2014, while the agricultural sector expanded by 3.1 percent and the manufacturing sector grew by 1 percent, the INEGI said, the report discloses. In the fourth quarter, Mexico's GDP grew by 2.5 percent, compared to the same period in 2014, boosted by a 3.7 percent increase in service sector activity, a 2.7 percent jump in agriculture and a 0.20 percent increase in manufacturing, the report notes. Mexico's economy, however, slowed in the October-December period, compared to the previous quarter, when it expanded at an annualized rate of 2.8 percent, the report relays. GDP, on a seasonally adjusted basis, grew 0.50 percent in the October-December 2015 period, compared to the prior quarter, thanks to 0.90 percent growth in the service sector, while agriculture contracted 1.9 percent and manufacturing declined 0.40 percent, the report discloses. The Finance Secretariat estimates that Mexico's GDP will grow between 2.6 percent and 3.6 percent in 2016, the report adds. ====================== P U E R T O R I C O ====================== PUERTO RICO: FINRA Finds UBS Liable For $1.5MM in Bond Case ----------------------------------------------------------- Matt Chiappardi at Law360.com reports that a Financial Industry Regulatory Authority arbitration panel in Puerto Rico awarded a San Juan woman nearly $1.5 million from UBS AG units on her claim the financial services company defrauded her in connection with loans secured by so-called closed-end funds heavily invested in the commonwealth's debt. In a brief statement of the award, the arbitration panel did not give a reason for their decision, but stated that UBS AG units UBS Financial Services Inc. and UBS Financial Services Inc. of Puerto Rico were liable to Christel Barie Bengoa Lopez for $1.1 million in compensatory damages plus interest, as well as roughly $300,000 of her legal fees, an award her attorney said is rare for the situation, according to Law360.com. "Rarely do the arbitrators award attorneys' fees and expert costs, and we were fortunate to get that," Ms. Lopez's attorney Robert Wayne Pearce told Law360. The issue stems from a complaint Ms. Lopez filed in 2014, which was one of several consumer complaints, alleging that when she invested a $5 million gift from the sale of her father's business, UBS steered her into what she was told were safe, low-risk mutual funds, the report notes. But the funds were actually speculative investments because of their undiversified and "excessive concentration" in Puerto Rican bonds, which were hit by several downgrades of the commonwealth's credit markets and general weakness in the island's economy, the complaint states, the report relays. The report discloses that when Ms. Lopez needed to raise funds for things like buying a residence and paying off a business loan, she was advised to get a line of credit with her funds as collateral. But the strategy essentially leveraged already leveraged assets, and the funds eventually dropped more than 50 percent in value, prompting a margin call by UBS, according to the complaint, the report relays. The report notes that Ms. Lopez sought $2 million in her complaint, and was awarded about half that from the panel in compensatory damages. "We were very happy with the award," the report quoted Mr. Pearce as saying. "It was not the result we hoped for, but it was a good award nonetheless." When contacted, a UBS representative said in an emailed statement that its investors in closed-end Puerto Rico funds have received "excellent" returns over the past 20 years, and that the panel's decision is not necessarily indicative of how other venues might rule on complaints from customers over similar products, the report notes. Although the arbitrators awarded less than the full damages the claimant requested, "UBS is disappointed with the decision to award any damages, with which we respectfully disagree," the statement read, the report relays. The decision comes about six months after a FINRA panel awarded nearly $3 million to three other investors in a similar situation, the report discloses. Moreover, in September, UBS Financial Services Inc. of Puerto Rico agreed to pay $15 million in disgorgement, interest and penalties, and FINRA separately fined the unit $7.5 million over its alleged supervisory failures and ordered it to pay roughly $11 million to 165 customers in connection with its closed-end funds, the report says. The issue has also triggered class-action litigation against UBS and a Banco Popular subsidiary, the report notes. Puerto Rico is currently struggling under more than $70 billion in public debt, but the commonwealth is specifically barred under a 1984 amendment to the U.S. Bankruptcy Code from accessing Chapter 9, the report relays. Attempts by Puerto Rico to pass its own legislation to restructure its debt have been blocked by the courts, but the White House and Puerto Rican officials have also been pushing Congress in recent weeks to pass legislation that includes a bankruptcy option, the report notes. Ms. Lopez is represented by Robert Wayne Pearce and Julio Cayere Quidgley of The Law Offices of Robert Wayne Pearce. UBS is represented by Joshua D. Jones and Gregg M. McCormick of Bressler Amery & Ross PC and Luis D. Davila-Pernas of McConnell Valdes LLC. The FINRA proceeding is in the matter of arbitration between Ms. Lopez and UBS Financial Services Inc. of Puerto Rico et al., case number 14-01541. As reported in the Troubled Company Reporter-Latin America on Dec. 28, 2015, Moody's Investors Service has downgraded $1.09 billion of Puerto Rico appropriation bonds issued by the Public Finance Corporation (PFC) to C from Ca, while maintaining other ratings assigned to the US territory's debt. REDONDO CONSTRUCTION: 1st Cir. Vacates Judgment in PRHTA Suit ------------------------------------------------------------- IN RE: REDONDO CONSTRUCTION CORPORATION, Debtor. PUERTO RICO HIGHWAY AND TRANSPORTATION AUTHORITY, Plaintiff, Appellant, v. REDONDO CONSTRUCTION CORPORATION, Defendant, Appellee, No. 15-1397 returns to the United States Court of Appeals for the First Circuit following its remand in In re Redondo Construction Corp. (Redondo III), 678 F.3d 115 (1st Cir. 2012). The Puerto Rico Highway and Transportation Authority appeals the district court's affirmance of the bankruptcy court's award of prejudgment interest to Redondo Construction Corporation on its contract claims under Article 1061 of the Puerto Rico Civil Code, 31 L.P.R.A. accruing through the payment of principal. The Authority asserts that Redondo forfeited its claim, and that even if such an award was warranted, the bankruptcy court used incorrect start and end dates for accrual. In a Decision dated February 10, 2016, which is available at http://is.gd/tXISQifrom Leagle.com, the First Circuit vacated the district court's judgment and remanded the case to allow for an award of postjudgment interest and a reduction of the Article 1061 interest award to the extent their accrual periods overlap. Hector Benatez Arraiza, Esq. Quiones & Arbona, P.S.C. for appellant. Charles A. Cuprill-Hernandez, Esq., Law Offices Charles A. Cuprill, P.S.C., for appellee. Redondo Construction Corporation has been in the construction business for 30 years, and worked on many public and government projects. Redondo filed for chapter 11 protection (Bankr. D.P.R. Case No. 02-02887) on March 19, 2002, and the Bankruptcy Court confirmed the Debtor's chapter 11 plan on Oct. 6, 2005. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: New Military Company to Provide Services ---------------------------------------------------------------- Eyanir Chinea at Reuters reports that a recently-announced Venezuelan military company will provide services to state oil company Petroleos de Venezuela, S.A. (PDVSA), especially in terms of security in the crime-ridden OPEC country, the company's president said. Some industry observers and opposition leaders had speculated the company, Camimpeg, was a potential mechanism to shield assets from being seized in the event of a debt default, according to Reuters. But PDVSA President and Oil Minister Eulogio Del Pino said the company is designed to provide services and support in the country with the world's largest oil reserves, the report notes. "It will help PDVSA in all the necessary areas. For instance in border areas, we're going to increase our security, in operational issues where our soldiers are perfectly prepared," Mr. Del Pino told reporters as he exited the National Assembly. Venezuela's national crime pandemic -- the United Nations says the country has one of the world's highest murder rates -- is a growing headache for the oil industry, a recent Reuters investigation found, the report notes. Foreign oil companies operating in Venezuela have been clamoring for more protection, especially in the vast and isolated oil fields of the heavy crude Orinoco Belt, the report relays. A PDVSA branch known as PDVSA Servicios used to provide many key services to oil fields but appears to have faded away in the last year, the report says. Government critics say the announcement of the new army-led firm lacks transparency and shows Venezuela's already prominent military is gaining more power, the report adds. As reported in the Troubled Company Reporter-Latin America on Dec. 21, 2015, Fitch Ratings has affirmed Petroleos de Venezuela, S.A.'s (PDVSA) foreign and local currency Issuer Default Ratings (IDRs) at 'CCC'. Fitch has also affirmed the rating for approximately USD30 billion of senior unsecured debt outstanding at 'CCC/RR4'. Concurrently, Fitch has affirmed PDVSA's national long-term rating at 'AA(ven)'. *********** 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 2016. 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 * * *