/raid1/www/Hosts/bankrupt/TCRLA_Public/160328.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, March 28, 2016, Vol. 17, No. 60
Headlines
A R G E N T I N A
YPF SA: Fitch Ups Long Term Issuer Default Ratings to 'B'
B R A Z I L
BRAZIL: Joins the Caribbean Development Bank
BROOKFIELD INCORPORACOES: Fitch Raises IDR to 'B+'; Outlook Stable
COMPANHIA SIDERURGICA: S&P Lowers CCR to 'B'; Outlook Negative
COSAN OVERSEAS: Moody's Cuts US$500MM Perpetual Bond Rating to Ba3
COSAN S.A.: Moody's Affirms Ba2 Global Scale CFR
HONDA MOTOR: Postpones New Plant Until Local Economy Recovers
ITAUBANK LEASING: Moody's Withdraws Ba3 Subordinated Debt Rating
MILLS ESTRUTURAS: Moody's Downgrades Global Scale CFR to B2
MINERVA SA: S&P Affirms 'BB-' GS Corp. Ratings, Outlook Now Pos.
USINAS SIDERURGICAS: S&P Lowers Corporate Credit Rating to 'SD'
C A Y M A N I S L A N D S
ACTIVE OWNERS: Members Receive Wind-Up Report
ALPHARD CAPITAL: Shareholder to Hear Wind-Up Report on March 30
BLUE TREE: Member to Hear Wind-Up Report Today
CHEW & SONS: Shareholders Receive Wind-Up Report
CLAIRE LTD: Shareholders Receive Wind-Up Report
CRANBERRY HOLDINGS: Member to Hear Wind-Up Report Today
EFG SPHINX: Member Receives Wind-Up Report
ESTE INVESTMENTS: Members Receive Wind-Up Report
HCP PE: Shareholder Receives Wind-Up Report
KANTA HOLDINGS: Member to Hear Wind-Up Report Today
ONIL INVESTMENTS: Member to Hear Wind-Up Report Today
PETERSHILL US: Shareholders Receive Wind-Up Report
PIGNA INVESTMENT: Shareholder Receives Wind-Up Report
SANDBOURNE FUND: Members Receive Wind-Up Report
SEA2 LIMITED: Shareholder Receives Wind-Up Report
SOGTI INC: Members Receive Wind-Up Report
WEST FACE: Shareholders Receive Wind-Up Report
WEST FACE I: Members Receive Wind-Up Report
C H I L E
CHILE: Copper Prices See 3.4% Weekly Drop on Stronger Dollar
M E X I C O
FRONTIER STAR: Landlords Object to Bidding Protocol
FRONTIER STAR: Trustee Taps Navigant as Financial Consultant
P A N A M A
* PANAMA: Newly Expanded Canal Set to be Inaugurated on June 26
P E R U
COMPANIA DE MINAS: Moody's Cuts Issuer Rating to Ba2, On Review
P U E R T O R I C O
BTB CORPORATION: Amended Disclosure Statement Was Due March 24
PUERTO RICO GENERAL: S&P Affirms 'CC' Rating on Tax-Backed Debt
STANDARD REGISTER: Time to Remove Actions Extended to Aug. 3
V E N E Z U E L A
PETROLEOS DE VENEZUELA: JV Fails to Yield Quantities of Crude, Gas
X X X X X X X X X
LATAM: Oil, Gas & Commodity Cos. Lead Sector Cuts, Fitch Says
* BOND PRICING: For the Week From March 21 to March 25, 2016
- - - - -
=================
A R G E N T I N A
=================
YPF SA: Fitch Ups Long Term Issuer Default Ratings to 'B'
---------------------------------------------------------
Fitch Ratings has taken rating actions on these corporate issuers
due to the recent upgrade of Argentina's Country Ceiling to 'B'
from 'CCC':
-- Arcor S.A.I.C.
-- Capex S.A.
-- Central Puerto S.A.
-- Compania Latinoamericana de Infraestructura y Servicios S.A.
(CLISA)
-- Inversiones y Representaciones S.A.
-- IRSA Propiedades Comerciales S.A.
-- Mastellone Hermanos Sociedad Anonima
-- Medanito S.A.
-- Pan American Energy LLC
-- Pan American Energy LLC Sucursal Argentina
-- YPF S.A.
Fitch upgraded the local currency Issuer Default Ratings (IDRs) of
Argentina as well as its Country Ceiling to 'B' from 'CCC' on
March 22, 2016. The long-term local currency IDR upgrade was
driven by the improved consistency and sustainability of
Argentina's policy framework, reduced external vulnerability, and
the expected easing of fiscal financing constraints.
Country Ceilings are designed to reflect the risks associated with
sovereigns placing restrictions upon private sector corporates,
which may prevent them from converting local currency to any
foreign currency) under a stress scenario, and/or may not allow
the transfer of FC abroad to service FC debt obligations. Since
taking power in December 2015, the Mauricio Macri administration
removed FX controls introduced in 2011 and increased the
flexibility of the Argentine peso, which should contribute towards
improving the capacity of the economy to absorb external shocks
and relieve pressure on international reserves.
RATING SENSITIVITIES
Positive: Future developments that could, individually or
collectively, lead to positive rating actions in the short term:
-- An upgrade of the Argentine sovereign rating and country
rating;
-- Material improvements in economic conditions and the
availability of additional financing options could
positively impact local currency and issuance ratings.
Negative: Future developments that could, individually or
collectively, lead to negative rating actions in the short term:
-- Any negative rating actions on the Argentine sovereign;
-- Marked economic weakness;
-- A significant deterioration of corporates' credit metrics.
FULL LIST OF RATING ACTIONS
Fitch has taken these rating actions:
Arcor S.A.I.C.
-- Foreign currency long-term IDR upgraded to 'B+' from 'B-';
Outlook Stable;
-- Local currency long-term IDR affirmed at 'B+'; Outlook
Stable;
-- Notes due 2017 upgraded to 'B+' from 'B'; Recovery Rating
revised to 'RR4' from 'RR3'.
Capex S.A.
-- Foreign currency long-term IDR upgraded to 'B' from 'CCC';
assigned a Stable Rating Outlook;
-- Local currency long-term IDR affirmed at 'B'; Outlook
Stable;
-- Notes due 2018 upgraded to 'B' from 'CCC+'; Recovery Rating
revised to 'RR4' from 'RR3'.
Central Puerto S.A.
-- Foreign currency long-term IDR upgraded to 'B' from 'CCC';
assigned a Stable Rating Outlook;
-- Local currency long-term IDR affirmed at 'B'; Outlook
Stable;
-- Notes due 2017 upgraded to 'B' from 'CCC+'; Recovery Rating
revised to 'RR4' from 'RR3'.
Compania Latinoamericana de Infraestructura y Servicios S.A.
(CLISA)
-- Foreign currency long-term IDR upgraded to 'B-' from 'CCC';
assigned a Negative Rating Outlook;
-- Local currency long-term IDR affirmed at 'B-'; Outlook
Negative;
-- Notes due 2019 upgraded to 'B-' from 'CCC'; Recovery Rating
affirmed at 'RR4'.
Inversiones y Representaciones S.A.
-- Foreign currency long-term IDR upgraded to 'B' from 'CCC';
assigned a Stable Rating Outlook;
-- Local currency long-term IDR affirmed at B+; Outlook Stable;
-- Notes due 2017 and 2020 upgraded to 'B' from 'B-'; Recovery
Rating revised to 'RR4' from 'RR3'.
IRSA Propiedades Comerciales S.A.
-- Foreign currency long-term IDR upgraded to 'B' from 'CCC';
assigned a Stable Rating Outlook;
-- Local currency long-term IDR affirmed at 'B+'; Outlook
Stable;
-- Notes due 2017 and 2023 upgraded to 'B' from 'B-'; Recovery
Rating revised to 'RR4' from 'RR3'.
Mastellone Hermanos Sociedad Anonima
-- Foreign currency long-term IDR affirmed at 'CCC';
-- Local currency long-term IDR affirmed at 'CCC';
-- Notes due 2021 upgraded to 'CCC' from 'CCC-'; Recovery
Rating affirmed at 'RR4'.
Medanito S.A.
-- Foreign currency long-term IDR upgraded to 'B-' from 'CCC';
assigned a Stable Rating Outlook;
-- Local currency long-term IDR affirmed at 'B-'; Outlook
Stable;
-- Long-term international senior unsecured expected debt
rating of 'CCC+/RR3(EXP)' was withdrawn. The rating is
being withdrawn as the transaction is no longer expected to
proceed as previously envisaged.
Pan American Energy LLC
-- Foreign currency long-term IDR upgraded to 'B+' from 'B-';
Outlook Stable;
-- Local currency long-term IDR affirmed at 'B+'; Outlook
Stable.
Pan American Energy LLC Sucursal Argentina
-- Notes due 2021 upgraded to 'B+' from 'B'; Recovery Rating
revised to 'RR4' from 'RR3'.
YPF S.A.
-- Foreign currency long-term IDR upgraded to 'B' from 'CCC';
assigned a Stable Rating Outlook;
-- Local currency long-term IDR affirmed at 'B'; Outlook
Stable;
-- Notes due 2018, 2021, 2024, 2025, 2028 upgraded to 'B' from
'CCC+'; Recovery Rating revised to 'RR4' from 'RR3'.
===========
B R A Z I L
===========
BRAZIL: Joins the Caribbean Development Bank
--------------------------------------------
http://www.caribbean360.com/business/brazil-joins-caribbean-
development-bank-2
(rousel/revise)
Caribbean360.com reports that Brazil is the newest member country
of the Barbados-based Caribbean Development Bank (CDB).
It has become the CDB's 28th member, and the fourth non-borrowing
regional member, joining Colombia, Mexico and Venezuela in that
category, according to Caribbean360.com.
The announcement was made at the CDB's first Board of Directors
meeting for 2016, earlier this month.
"We are delighted to welcome Brazil and thank its Government and
people for joining hands with us to advance our mandate of
reducing poverty, and promoting economic growth and sustainable
development in the Caribbean. Brazil's membership is another
historic seal of its relationship with Caribbean and strengthening
of Latin American-Caribbean cooperation," said Dr. Warren Smith,
CDB president, the report notes.
Rafael Ranieri, Brazil's Alternate Director to the CDB, said his
country was pleased to join the CDB in support of its important
role within the region, the report relays.
"We expect that Brazil's membership will contribute to
strengthened relations between Brazil and the Caribbean and lead
to greater collaboration in building a better future for the
people of both our countries," said Mr. Ranieri, who is the
General Coordinator of Relations with International Organizations
in the Ministry of Planning, Budget and Management and Secretariat
of International Affairs, the report relays.
Brazil's Director to CDB's Board is Carlos Eduardo Lampert Costa
Deputy Secretary of International Affairs. The Governor to CDB is
Francisco Gatani, Vice-Minister and Rodrigo Estrela de Carvalho,
Secretary of International Affairs serves as Alternate Governor,
the report discloses.
Brazil is the world's seventh largest economy with GDP of US$2.5
trillion and a population of more than 200 million.
Membership in the Caribbean Development Bank is open to states and
territories of the region; non-regional states which are members
of the United Nations or of any of its specialized agencies or of
the International Atomic Energy Agency; and institutions, the
report adds.
As reported in the Troubled Company Reporter -- Latin America on
Feb. 26, 2016, Moody's Investors Service has downgraded Brazil's
issuer and bond ratings to Ba2 and changed the outlook to
negative.
BROOKFIELD INCORPORACOES: Fitch Raises IDR to 'B+'; Outlook Stable
------------------------------------------------------------------
Fitch Ratings has upgraded the Long-Term Foreign Currency Issuer
Default Ratings on Brookfield Incorporacoes S.A. (BISA) to 'B+'
from 'B' and National Long-Term Rating to 'A-(bra)' from
'BBB+(bra)'. The Rating Outlook for the corporate ratings is
Stable.
KEY RATING DRIVERS
BISA's upgrade reflects the strengthening of the high and
frequently tested financial support from its controlling
shareholder, Brookfield Asset Management Inc. (BAM), and its
integration with the parent. Financial support from the parent
has been provided on a constant basis and was evidenced by the
BRL3.0 billion cash injected in BISA through capital increases and
parent loans during 2014 and Feb. 2016. In 2014, the controlling
group had already acquired the company's shares in circulation in
the market, which increased the participation of the controlling
group to 98.7% of BISA's total capital. Additionally, the company
received BRL396 million of capital support between 2012 and 2013.
BISA's capitalization measures adopted by the parent have been
fundamental to reducing the company's high refinancing risk and
finance its working capital needs. The company's corporate debt
fell to BRL772 million in December 2015 from BRL2.7 billion at
end-2013. On a stand-alone basis, BISA continues to report a
continued and sharp weakening of its credit metrics. The metrics
remain materially pressured by negative operating cash flow
generation, and are affected by significant project delays,
relevant amounts of cost adjustments and high sales cancellations.
The ratings take into consideration that new measures for the
strengthening of the company's capital structure and liquidity
will be necessary and that BAM will continue to provide
unrestricted financial support to BISA. Fitch incorporated in its
analysis the 'Corporate Rating Methodology - Including Short-Term
Ratings and Link Between Holding Parents and Subsidiaries' of
Aug. 17, 2015. On an individual basis, without the strong
evidences of support and integration of the company's businesses
with the parent, BISA's rating would be lower in multiple notches.
Important Group Support Reduces Refinancing Risk
Fitch believes that the corporate debt will continue to be
amortized with parent funds. The participation of the corporate
debt in BISA's total debt reduced to 29% in Sept. 2015, from 61%
at end 2013.
As of Sept. 30, 2015, the company reported a total debt of BRL2.7
billion, with BRL1.1 billion maturing in the short term, of which
BRL783 million consisted of corporate debt, and BRL424 million was
short term. On a pro forma basis, Fitch estimates that the
company has BRL580 million of corporate debt as of March 22, 2016,
of which BRL376 million matures up to December 2016, BRL165
million in 2017 and BRL39 million in 2018 and 2019.
Operating Performance Remains Weak
BISA's operating results remain very weak. The company has
adopted a series of measures to recover its operational
efficiency, and the controlling shareholder support will be
fundamental to BISA's strategy of resuming project launches in
2016. However, low margin projects are still under development
and should continue pressuring the company's results at least over
the next couple of years. Brazil's weak macroeconomic environment
becomes more challenging the recovery of company's operating
results.
BISA has as its main challenges to significantly reduce the high
volume of sales cancellations, manage the expected increase of
inventory of finished units and terminate the projects under
development. During the first nine months of 2015, the company
recorded sales cancellations of BRL1.0 billion, against BRL807
million in 2014, which resulted in negative net pre sales of
BRL123 million during the above period. The high inventory of
concluded units represented 24% of the total inventory of BRL2.9
billion in Sept. 2015, and compares with 17% at end 2014. The
project deliveries scheduled for 2016 amount to a relevant
potential sales value (PSV) of around BRL2.8 billion, of which 33%
consisted of units in inventory. The expected volume of project
deliveries in 2016, in a scenario of economic and income
deterioration, and higher credit restrictions, may additionally
pressure sales cancellations and increase the company's
inventories.
Operating Cash Flow Should Remain Negative in 2016.
During the LTM period ended September 2015, BISA reported negative
adjusted EBITDA of BRL422 million, negative funds from operations
(FFO) of BRL443 million and negative cash flow from operations
(CFFO) of BRL253 million. The negative operating cash generation
resulted from negative operating margins, due to the recognition
of additional project costs, of BRL546 million, as well as BRL186
million of revenue reversal due to high cancellation of contracts,
and high financial expense with its debt. Fitch projects negative
CFFO in 2016, due to high working capital needs for the support of
projects under development, as well as to resume the new project
launches. Fitch estimates a PSV of around BRL1.8 billion in 2016.
High Leverage
BISA's leverage ratio should continue not measurable, since EBITDA
and CFFO is expected to remain negative Under a potential cash
flow perspective, the ratio total receivables on balance sheet
plus total inventory, added to the revenue to be recognized over
net debt, plus obligations with real estate acquisition for
development and plus cost to incur from units sold was of 1.8x in
September 2014, compared to 1.7x at end-2014. This ratio remains
weak and below the sector average.
Key Assumptions
Fitch's key assumptions, in accordance with the base case scenario
for this issuer include:
-- Continued strong support integration with the controlling
shareholder;
-- Reduction of corporate debt based on the parent support;
-- Negative EBITDA in 2016 and 2017;
-- Resume project launches in 2016, with a PSV estimated by
Fitch of around BRL1.8 billion;
-- Still high volume of sales cancellations in 2016.
RATING SENSITIVITIES
Future developments which could, individually or collectively lead
to a negative rating action are:
-- A weakening of BAM's credit profile.
LIQUIDITY
The providing of funds from its controller has allowed BISA to
amortize its corporate debt and fund the working capital needs of
the projects in development. As of Sept. 30, 2015, the company
reported cash and marketable securities of BRL337 million, for a
short term debt of BRL1.1 billion, of which BRL783 million
consisted of corporate debt. From Sept. 2014 until the present
date, the company made various repayments of corporate debt. On a
pro forma basis, Fitch estimates that BISA has BRL580 million of
corporate debt, of which BRL376 million due up to the end of 2016,
BRL167 million due in 2017 and BRL39 million in 2018 and 2019.
Fitch has upgraded these BISA's ratings:
-- Long-Term Foreign and Local Currency IDRs to 'B+' from 'B';
-- National Long-Term Rating to 'A-(bra)' from 'BBB+(bra)';
-- Rating of the fourth debenture issuance in the amount of
BRL300 million, final maturity in August 2016 to 'A-(bra)'
from 'BBB+(bra)'.
The Rating Outlook for the corporate ratings is Stable.
COMPANHIA SIDERURGICA: S&P Lowers CCR to 'B'; Outlook Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its global scale
corporate credit ratings on Companhia Siderurgica Nacional (CSN)
to 'B' from 'B+', and its national scale ratings to 'brBB-' from
'brBBB-'. At the same time, S&P lowered the issue-level ratings
on CSN's senior unsecured debt to 'B' from 'B+'. The outlook on
the corporate credit ratings is negative.
The '4' recovery ratings on CSN's senior unsecured debt remained
the same, reflecting a recovery expectation of 30%-50%, in the
higher band of the range.
At the same time, S&P downgraded the ratings on National Steel
S.A., one of CSN's holding companies, to 'B-' from 'B', and then
withdrew the rating at the issuer's request.
The negative outlook reflects S&P's view that weak industry
activity in Brazil, combined with CSN's high interest burden, are
likely to continue to consume cash over the next 12 months. S&P
believes that current market conditions may hinder CSN's ability
to increase prices, and may lead to further cash flow pressures,
likely affecting CSN's liquidity. Under this scenario, S&P
believes the likelihood of debt restructuring increases, as the
company's capital structure can become unsustainable. S&P could
downgrade the ratings if the company's cash position declines
significantly, leading S&P to revise down its liquidity assessment
from the current strong level.
Although an upgrade is unlikely in the short term, S&P could
revise CSN's outlook to stable if the company is able to capture
any upside from a potential improvement in market conditions, or
if its strategy of focusing on higher value-added products and
plants results in stronger cash generation and some improvement in
financial metrics. Under this scenario, it would use assets sale
proceeds to reduce debt and interest payments. S& would expect to
see debt to EBITDA trending to 5.0x and FFO to debt of about 12%,
alongside strong liquidity and an EBITDA interest coverage ratio
consistently above 1.2x.
COSAN OVERSEAS: Moody's Cuts US$500MM Perpetual Bond Rating to Ba3
------------------------------------------------------------------
Moody's Investors Service downgraded the ratings of the notes
issued by Cosan Overseas Limited and Cosan Luxembourg S.A and
guaranteed by Cosan to Ba3 from Ba2. At the same time, Moody's
America Latina affirmed Cosan S.A. Industria e Comercio
("Cosan")'s Ba2 (global scale) and A1.br (national scale)
corporate family ratings. The outlook was revised to negative from
stable, since the company's corporate family rating directly
derives from the ratings of its subsidiaries Raizen (Ba1 negative)
and Comgas (Ba2 negative), both of which are constrained by the
Brazil sovereign bond ratings (Ba2 negative).
Ratings downgraded:
Issuer: Cosan Luxembourg SA
-- $US 500 million senior unsecured notes due 2023: to Ba3 from
Ba2
-- BRL 850 million senior unsecured notes due 2018: to Ba3 from
Ba2
Issuer: Cosan Overseas Limited
-- $US 500 million perpetual bonds: to Ba3 from Ba2
Outlook actions:
Revised to negative from stable
RATING RATIONALE
"Cosan's Ba2 corporate family rating reflects the group's
aggregate credit risk, and is supported by the company's
diversified portfolio of businesses, including the entire sugar-
ethanol chain, fuel and gas distribution, lubes and land
management in Brazil, and its adequate liquidity profile. The
company's diversification, especially towards resilient businesses
such as the fuel and gas distribution, translates into a stable
cash source over the long-term. Moreover, we expect Ra°zen and
Comgas to distribute a significant amount of dividends over the
next several years, which will be the primarily liquidity source
to service Cosan's obligations."
"Constraining the ratings is Cosan's aggressive financial policy
with an acquisitive growth history and likely high dividends
upstream to Cosan Limited -- although the company is expected to
generate enough cash to fund those dividends and reduce leverage.
Although this acquisitive history translated into diversification,
it also pressured leverage ratios. Moreover, even though Cosan no
longer proportionally consolidates its stake in Ra°zen, we
continue to incorporate Ra°zen's strengths, including its strong
cash generation, and risks, such as the exposure to the underlying
volatility of the sugar-ethanol business, in Cosan's ratings."
"The downgrade of the ratings of Cosan's senior unsecured notes to
Ba3 reflects the recent downgrades of Ra°zen to Ba1 from Baa3 and
Comgas to Ba2 from Baa3, both with a negative outlook. The bulk of
Cosan's cash generation come from dividends from Ra°zen and Comgas
and, consequently, we see the debt at Cosan S.A. level as
structured subordinated to the debt at the operating companies.
The downgrades of Ra°zen and Comgas followed the action that
downgraded Brazil's government bond rating to Ba2 from Baa3.
Although we believe a significant portion of Cosan's cash flows,
represented by Ra°zen Combust°veis and Comgas, is more resilient
than the overall economy in Brazil, these entities are not fully
insulated from the deterioration in the domestic environment."
The negative outlook on Cosan's ratings mirrors the negative
outlook on its two main subsidiaries, Ra°zen and Comgas.
A downgrade of Cosan's ratings could result from further negative
rating actions on Comgas or Ra°zen or if liquidity deteriorates.
In addition, the ratings could be downgraded if total adjusted
debt to EBITDA is sustained above 4.0x.
Although unlikely in the near term, Cosan's ratings could be
upgraded if the company is able to reduce leverage to levels below
3.2x while maintaining an adequate liquidity profile. An upgrade
of Ra°zen or Comgas ratings would also put positive pressure on
Cosan's ratings. (All pro-forma ratios including Raizen figures).
Headquartered in Sao Paulo, Cosan S.A. Industria e Comercio has a
50% stake in Ra°zen (Ba1/Aa1.br negative) and a 61.3% stake in
Comgas (Ba2/Aa2.br negative). With annual revenue of BRL 71
billion (approximately $US 21.3 billion) as of December 2015,
Ra°zen is one of the global leading players in the sugar-ethanol
segment with an installed crushing capacity of 68 million tons and
also the third largest Brazilian fuel distributor, operating 5,682
gas stations, mainly under the Shell brand name. Comgas, with
annual revenues of approximately BRL 6.6 billion (approximately
$US 2.0 billion) in the same period, is Brazil's largest gas
distributor, providing natural gas to industrial, residential,
commercial, automotive, thermal-power generation and co-generation
consumers. The company benefits from an attractive concession area
strategically located in one of the most densely populated and
economically robust regions in the country.
Additionally, Cosan produces and distributes automotive lubricants
and base oil under the Mobil brand name and has a 37.7% stake in
Radar, a land management company with interests in agricultural
properties. In the fiscal year 2015 Cosan's net sales reached BRL
8.5 billion (approximately $US 2.6 billion).
COSAN S.A.: Moody's Affirms Ba2 Global Scale CFR
------------------------------------------------
Moody's America Latina affirmed Cosan S.A. Industria e Comercio
("Cosan")' Ba2 (global scale) and A1.br (national scale) corporate
family ratings. The outlook was revised to negative from stable,
since the company's corporate family rating directly derives from
the ratings of its subsidiaries Raizen (Ba1 negative) and Comgas
(Ba2 negative), both of which are constrained by the Brazil
sovereign bond ratings (Ba2 negative).
Ratings affirmed:
Issuer: Cosan S.A. Industria e Comercio
Corporate family ratings: Ba2/A1.br
Outlook actions:
Revised to negative from stable
RATING RATIONALE
"Cosan's Ba2 corporate family rating reflects the group's
aggregate credit risk, and is supported by the company's
diversified portfolio of businesses, including the entire sugar-
ethanol chain, fuel and gas distribution, lubes and land
management in Brazil, and its adequate liquidity profile. The
company's diversification, especially towards resilient businesses
such as the fuel and gas distribution, translates into a stable
cash source over the long-term. We expect Ra°zen and Comgas to
distribute a significant amount of dividends over the next several
years, which will be the primarily liquidity source to service
Cosan's obligations."
"Constraining the ratings is Cosan's aggressive financial policy
with an acquisitive growth history and likely high dividend
upstream to Cosan Limited -- although the company is expected to
generate enough cash to fund those dividends and reduce leverage.
Although this acquisitive history translated into diversification,
it also pressured leverage ratios. Moreover, even though Cosan no
longer proportionally consolidates its stake in Ra°zen, we
continue to incorporate Ra°zen's strengths, including its strong
cash generation, and risks, such as the exposure to the underlying
volatility of the sugar-ethanol business, in Cosan's ratings."
"The bulk of Cosan's cash generation comes from dividends from
Ra°zen and Comgas and, consequently, we see the debt at Cosan
S.A.'s level as structured subordinated to the debt at the
operating companies. The recent downgrades of Ra°zen and Comgas
followed the action that downgraded Brazil's government bond
rating to Ba2 from Baa3. Although we believe a significant portion
of Cosan's cash flows, represented by Ra°zen Combust°veis and
Comgas, is more resilient than the overall economy in Brazil,
these entities are not fully insulated from the deterioration in
the domestic environment."
With the recent downgrade of the government of Brazil on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
national scale ratings (NSRs) among issuers in Brazil has become
compressed, particularly at the Aa2.br level. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide greater credit differentiation among issuers
in Brazil than is possible on the global rating scale. However, if
Moody's NSR methodology is revised as proposed in the Request for
Comment (RFC) entitled "Mapping National Scale Ratings from Global
Scale Ratings" published on January 20, the resulting new
Brazilian scale would likely imply that many Brazil global scale
ratings would be remapped to higher ratings on the national scale.
"While the RFC included a new proposed national scale map for
Brazil, given the aforementioned ratings changes, the new map
design for Brazil will likely differ from the specific map
proposal included in the RFC. In addition to the proposed
Brazilian map, the RFC comprised a proposed update to our
methodology for mapping national scale ratings from global scale
ratings, including guidelines for the design of new national scale
maps and changes to existing maps, as well as proposed new
national scale maps for each of the other countries in which we
currently offer NSRs. The comment period for this RFC closed on
February 22."
The negative outlook on Cosan's ratings mirrors the negative
outlook on its two main subsidiaries, Ra°zen and Comgas.
A downgrade of Cosan's ratings could result from further negative
rating actions on Comgas or Ra°zen or if liquidity deteriorates.
In addition, the ratings could be downgraded if total adjusted
debt to EBITDA is sustained above 4.0x.
Although unlikely in the near term, Cosan's ratings could be
upgraded if the company is able to reduce leverage to levels below
3.2x while maintaining an adequate liquidity profile. An upgrade
of Raizen or Comgas ratings would also put positive pressure on
Cosan's ratings. (All pro-forma ratios including Raizen figures).
Headquartered in Sao Paulo, Cosan S.A. Industria e Comercio has a
50% stake in Raizen (Ba1/Aa1.br negative) and a 61.3% stake in
Comgas (Ba2/Aa2.br negative). With annual revenue of BRL 71
billion (approximately $US 21.3 billion) as of December 2015,
Raizen is one of the global leading players in the sugar-ethanol
segment with an installed crushing capacity of 68 million tons and
also the third largest Brazilian fuel distributor, operating 5,682
gas stations, mainly under the Shell brand name. Comgas, with
annual revenues of approximately BRL 6.6 billion (approximately
$US 2.0 billion) in the same period, is Brazil's largest gas
distributor, providing natural gas to industrial, residential,
commercial, automotive, thermal-power generation and co-generation
consumers. The company benefits from an attractive concession area
strategically located in one of the most densely populated and
economically robust regions in the country.
Additionally, Cosan produces and distributes automotive lubricants
and base oil under the Mobil brand name and has a 37.7% stake in
Radar, a land management company with interests in agricultural
properties. In the fiscal year 2015 Cosan's net sales reached BRL
8.5 billion (approximately $US 2.6 billion).
HONDA MOTOR: Postpones New Plant Until Local Economy Recovers
-------------------------------------------------------------
Leonardo Lara and Fabiola Moura at Bloomberg News report that
Honda Motor Co. doesn't plan on opening a plant the company is
building in Brazil until there are signs of recovery in Latin
America's largest economy.
Japan's third-largest automaker already has spent $250 million on
the Itirapina factory, which will help double production capacity
in Brazil to 240,000 vehicles a year, according to Bloomberg News.
Even so, the company will wait for the country to get out of its
political and economic crises to add employees for the operation,
Roberto Akiyama, Honda's vice president for South America, said in
a telephone interview with Bloomberg News.
Honda decided "to avoid hiring workforce and then running into
problems such as a potential layoff," Mr. Akiyama said, Bloomberg
News notes. While the Tokyo-based company doesn't "have a date
set for the operations to start," it won't be in the first half of
this year as previously anticipated, Bloomberg News relays. The
automaker will take at least six months to hire and train people
to run the plant, Bloomberg News notes.
Honda forecasts sales in Brazil to plunge 18 percent this year to
125,000 vehicles because of the recession and the company's
transition to an upgraded Civic, says the report. That's a
steeper decline from the national automakers association's
expectations that total car sales will fall at least 7.5 percent,
Bloomberg News adds.
Looks Worse
According to the report, the carmaker's outlook looks worse in
part because last year it was able to post a gain while the market
as a whole dropped 27 percent. Honda boosted sales 11 percent in
2015 by entering the compact SUV market and offering higher-end
models that attract customers who aren't as dependent on car
loans, Bloomberg News relays.
Honda's only operating Brazilian plant, in Sumare, is working full
time with two daily shifts, Bloomberg News discloses. Honda
didn't have to let any workers go because of the economic
slowdown. It just cut extra hours, Mr. Akiyama added.
The plant, which assembles the Civic and three other models,
opened in 1997 producing only 20 cars a day with 400 employees,
and now its 3,500 employees can make 620 a day, according to the
company's website, notes Bloomberg News.
ITAUBANK LEASING: Moody's Withdraws Ba3 Subordinated Debt Rating
----------------------------------------------------------------
Moody's America Latina has withdrawn all debt ratings assigned to
Itaubank Leasing S.A. Arrendamento Mercantil and BFB Leasing S.A.
Arrendamento Mercantil, including the local currency backed
subordinated debt ratings of Ba3 and the national scale
subordinated debt ratings of A2.br. These debt ratings carried no
outlook outstanding, as the existing debts issued by these
entities were assumed by Dibens Leasing S.A. -- Arrendamento
Mercantil.
The following ratings have been withdrawn:
Itaubank Leasing -- Arrendamento Mercantil S.A.
Local Currency BACKED Subordinated Debt Rating of Ba3
Local Currency Subordinated Debt Rating assigned to the Debentures
Program of Ba3
Brazilian National Scale BACKED Subordinated Debt Rating of A2.br
Brazilian National Scale Subordinated Debt Rating assigned to the
Debentures Program of A2.br
BFB Leasing Arrendamento Mercantil S.A.
Local Currency BACKED Subordinated Debt Rating of Ba3
Local Currency Subordinated Debt Rating assigned to the Debentures
Program of Ba3
Brazilian National Scale BACKED Subordinated Debt Rating of A2.br
Brazilian National Scale Subordinated Debt Rating assigned to the
Debentures Program of A2.br
RATINGS RATIONALE
Moody's has withdrawn all of Itaubank Leasing and BFB Leasing's
ratings for its own business reasons. Please refer to Moody's
Investors Service's Policy for Withdrawal of Credit Ratings,
available on its website, www.moodys.com.
LAST RATING ACTIONS
The last rating action on Itaubank Leasing S.A. was on 25 February
2016, when Moody's America Latina downgraded the entity's long-
term global and national scale local currency subordinated debt
ratings to Ba3 and A2.br, respectively. These debt ratings are
backed by Dibens Leasing, the operating leasing company of Itau
Unibanco Group that assumed debt outstanding issued by Itaubank
Leasing.
The last rating action on BFB Leasing S.A. was on 25 February
2016, when Moody's America Latina downgraded the entity's long-
term global and national scale local currency subordinated debt
ratings to Ba3 and A2.br, respectively. These debt ratings are
backed by Dibens Leasing, the operating leasing company of Itau
Unibanco Group that assumed debt outstanding issued by BFB
Leasing.
MILLS ESTRUTURAS: Moody's Downgrades Global Scale CFR to B2
-----------------------------------------------------------
Moody's America Latina downgraded Mills Estruturas e Serviáos de
Engenharia S.A.'s ("Mills") global scale ratings to B2 from B1. At
the same time its national scale ratings were downgraded to Ba2.br
from Baa3.br. The outlook for the ratings remains negative.
Ratings downgraded:
Issuer: Mills Estruturas e Serviáos de Engenharia S.A.
-- Corporate Family Rating: to B2 from B1 (global scale);
to Ba2.br from Baa3.br (national scale)
-- BRL 270.00 million senior unsecured debentures due 2016: to B2
from B1 (global scale); to Ba2.br from Baa3.br (national
scale)
-- BRL 160.94 million senior unsecured debentures due 2017: to B2
from B1 (global scale) to Ba2.br from Baa3.br (national scale)
-- BRL 200.00 million 5-year senior unsecured debentures due
2019: to B2 from B1 (global scale); to Ba2.br from Baa3.br
(national scale)
-- BRL 109.06 million senior unsecured debentures due 2020: to B2
from B1 (global scale) to Ba2.br from Baa3.br (national scale)
The outlook for all ratings remains negative.
RATINGS RATIONALE
The downgrade in Mills' ratings and negative outlook reflect the
worse than expected impact on the company's operating performance
as a consequence of its exposure to the Brazilian heavy
construction and Homebuilding industries, and the likelihood that
the negative scenario will persist for an uncertain period of
time. More specifically, the action accounts for the further
deterioration in the heavy construction sector fundamentals on the
back of corruption scandals and macroeconomic uncertainties in
Brazil. It also reflects the persistent slowdown in the
homebuilding industry due to the challenging macroeconomic
environment that will continue to put negative pressure on
launches, construction rhythm, and sales speed. Moody's has a
negative outlook for the Brazilian homebuilding industry as well
as for the rated heavy construction companies.
Mills' B2 CFR incorporates its leading position in the Brazilian
concrete formwork and tubular structures sector backed by its
longstanding relationship with the major local construction
companies engaged in complex infrastructure, commercial,
industrial and residential projects, supported by the offering of
innovative solutions and updated technology. With the divestiture
of its industrial services division in 2013, Mills has increased
its focus in the core, higher-margin, businesses that includes
construction (infrastructure and homebuilding) and equipment
rental. Recent equity offering that improved the company's
liquidity is also reflected in the ratings.
The rating is also supported by Mills' flexibility and ability to
reduce CAPEX and sell assets in periods of lower capacity
utilization, prudent financial management, moderate dividend
payout policy, and currently adequate liquidity that will help the
company navigate the down cycle in its target industries. Mills is
run by professional executives with long experience in the
industry, which potentially reduces the company's execution risk,
and has a good level of disclosure.
Mills' small and decreasing size relative to global peers, and its
high dependence on the cyclical construction industry are
constraining factors to the rating. Notwithstanding, the short
cycle of its investments provides flexibility to efficiently react
to potential slowdowns in the construction industry selling assets
to adequate the company's size to weaker demand periods, but
unsustainable if the downturn persists for a long period of time.
"During the LTM ended December 2015, Mills' net revenues declined
by 27.5% YoY, reflecting its 49% concentration in heavy
construction and real estate divisions, while the remaining 51%
where generated by its rental division -- which is 57% exposed to
construction, as of 4Q15 - evidencing a high dependence on these
segments. We anticipate that Mills' exposure to the construction
sector will remain high over the medium term. Also, Mills'
operations are geographically concentrated in Brazil where it
generates all of its revenues and cash flows, evidencing the
narrow geographic focus and consequently its vulnerability to the
vagaries of a single country."
Following COGS and SG&A reduction of about 8.4% and 12.4%
respectively in 2015 compared to 2014, Mills reduced its capex
levels to BRL 28.2 million in 2015, an 85.8% decrease from 2014
levels. Mills does not foresee any capex directed to expansion in
2016, given the high idle capacity of its business units. At such
lower levels, CAPEX can be easily funded with internal cash
generation as the company's cash flow from operations ("CFO") was
BRL 200 million for the last twelve months ended in December 2015,
somewhat reducing the pressure on the company's liquidity. Cash
position increased to BRL 232 million in the end of December 2015
from BRL 193 million in the end of September 2015, reflecting the
positive free cash flow ("FCF") generation of BRL 162 million in
2015, as a result of the lower CAPEX required during a stiff
slowdown in the company's activities and no dividend payout. Cash
position was also reinforced by the sale of assets in the order of
BRL 53.9 million during 2015, of which 54% were semi-new
equipments and by BRL 18.6 million received in July 2015 from the
sale of the Industrial Services business unit in July 2013. In a
recent equity offering the company raised about BRL 113 million in
additional liquidity, and the proceeds will further reinforce its
cash position. Mills' cash on balance sheet (pro-forma for the
equity issuance) is sufficient to cover 100% of its debt
amortizations in 2016, 2017 and part of 2018. Historically, Mills
has enjoyed good relationship with large banks and had regular
access to bank lines and the capital markets. "We view all
measures taken by the company to preserve liquidity as positive,
but unsustainable if the downturn persists for a long period of
time."
The negative outlook considers further negative impact on the
company's future operating performance given its exposure to the
heavy construction industry and the slowdown in the homebuilding
industry, another important source of the company's revenues.
Neither are showing signs of recovery.
The ratings outlook could be stabilized if there are clear signs
of recovery in the construction segment while Mills is successful
in prudently managing dividends and CAPEX investments, and
consequently leverage based on its long term target of Net Debt to
EBITDA of 1.0x while maintaining solid liquidity position during
the downturn scenario. Mills is expected to maintain its
leadership position, ensure healthy operating margins and debt
protection metrics even during the down cycle.
The ratings could suffer further downward pressure if the effects
from the economic downturn are larger than anticipated combined
with no clear signs of recovery in the construction industry, or
if the company is not able to generate positive FCF during down
cycle or to sell assets in order to raise cash and properly adjust
its asset size to the existing demand. Quantitatively, a downgrade
could occur if FCF turns negative or if total adjusted debt to
EBITDA is sustained above 5.5 times. Further downgrade pressure
may arise in case Mills cannot sustain its lead market position
across key lines of business. Also, a significant increase in the
level of secured debt could cause a downgrade of the rated
unsecured debentures.
Founded in 1952, Mills Estruturas e Serviáos de Engenharia S.A.,
headquartered in Rio de Janeiro, is a leading provider of concrete
formwork and tubular structures services to construction
companies, industrial services and rental of motorized access
equipment in Brazil, having reported BRL 576 million ($US 176
million) in net revenues in the last twelve months ended December
31, 2015.
POTENTIAL MAPPING RECALIBRATION FROM GLOBAL SCALE TO NATIONAL
SCALE RATINGS
With the recent downgrade of the government of Brazil on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
national scale ratings (NSRs) among issuers in Brazil has become
compressed, particularly at the Aa2.br level. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide greater credit differentiation among issuers
in Brazil than is possible on the global rating scale. However, if
Moody's NSR methodology is revised as proposed in the Request for
Comment (RFC) entitled "Mapping National Scale Ratings from Global
Scale Ratings" published on January 20, the resulting new
Brazilian scale would likely imply that many Brazil global scale
ratings would be remapped to higher ratings on the national scale.
"While the RFC included a new proposed national scale map for
Brazil, given the aforementioned ratings changes, the new map
design for Brazil will likely differ from the specific map
proposal included in the RFC. In addition to the proposed
Brazilian map, the RFC comprised a proposed update to our
methodology for mapping national scale ratings from global scale
ratings, including guidelines for the design of new national scale
maps and changes to existing maps, as well as proposed new
national scale maps for each of the other countries in which we
currently offer NSRs. The comment period for this RFC closed on
February 22."
MINERVA SA: S&P Affirms 'BB-' GS Corp. Ratings, Outlook Now Pos.
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' global scale
corporate ratings on Minerva S.A. At the same time, S&P revised
the outlook on this credit rating to positive from stable. S&P
also raised its national scale corporate rating on the company to
'brA+' from 'brA', and the outlook on it is positive. In
addition, S&P affirmed its 'BB-' issue-level ratings on the
company's unsecured debt. A recovery rating of '3', indicating a
meaningful recovery expectation (50%-70%; in the lower band of the
range), remains unchanged.
The positive rating actions reflect S&P's expectation that Minerva
will deleverage using positive free cash flows to reduce debt,
while it should maintain its strong liquidity. The latter will
further strengthen through the capital increase of almost R$750
million from the Saudi Arabian Sovereign Fund (Salic), which now
has an almost 20% stake in Minerva. The company increased its
margins to 10.7% in 2015, and S&P expects them to be above 9%
despite higher cattle prices, inflationary pressure, the ramp-up
of some of the company's plants in Paraguay and Colombia, and
currency and demand volatility on the export side.
Minerva has increased its scale and geographic diversification
over the past few years through internal expansion and equity
exchange-financed, small acquisitions in Brazil, Uruguay,
Paraguay, and Colombia. And although Minerva's operations are
mostly in its core business of "in natura" beef production, it has
maintained good operating efficiency, resulting in higher than-
average and fairly stable margins. Also, the company adjusted its
slaughtering capacity to optimize plants and rapidly shift
production to exports amid sluggish demand in Brazil. These
factors, together with the positive fundamentals including
Minerva's location in countries with sizeable cattle herds and
attractive operating costs, the boost in export revenues and
EBITDA amid a weaker Brazilian real, and the opening of China and
other important markets to Brazilian beef prompted S&P's revision
of Minerva's business risk profile to fair from weak.
USINAS SIDERURGICAS: S&P Lowers Corporate Credit Rating to 'SD'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its global scale
corporate credit rating on Usinas Siderurgicas de Minas Gerais
S.A. (Usiminas) to 'SD' from 'CCC+', and its national scale rating
on the company to 'SD' from 'brCCC+'. At the same time, S&P
lowered the issue-level rating on the company's senior unsecured
debt to 'C' from 'CCC', and the national scale issue-level rating
assigned to the company's senior unsecured debentures to 'brC'
from 'brCCC'.
S&P has also lowered the recovery ratings on the company's senior
unsecured debt to '6' from '5H', reflecting S&P's expectations of
a negligible recovery of below 10%.
The downgrade on the issuer credit rating follows Usiminas'
announcement that it has reached a standstill agreement with the
banks that hold most of its debts, as part of a restructuring
process that includes a R$1 billion capital injection from its
shareholders. The approval of the capital injection by the
shareholders was on the condition that Usiminas successfully reach
a standstill agreement with its creditors. The agreement allows
Usiminas to suspend principal payments on its bank loans for 120
days, and during this period, banks cannot accelerate the
company's debts. This will also allow Usiminas to negotiate terms
with debtholders, and to restructure its capital structure to be
consistent with its cash generation prospects. The company will
continue to pay interest on the bank loans, and interest and
principal on its bonds and debentures, according to the contracted
schedule.
==========================
C A Y M A N I S L A N D S
==========================
ACTIVE OWNERS: Members Receive Wind-Up Report
---------------------------------------------
The members of Active Owners Fund II received on March 8, 2016,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Noel Webb
P.O. Box 2677 Grand Cayman KY1-1111
Cayman Islands
Telephone: (345) 936 5222
Facsimile: (345) 936-5222
ALPHARD CAPITAL: Shareholder to Hear Wind-Up Report on March 30
---------------------------------------------------------------
The shareholder of Alphard Capital Management will hear on
March 30, 2016, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Martin Allen
Correg. De Bella Vista,
Nuevo Reparto El, Carmen
Via Grecia
BV757 Edificio Angie Luige 4 Apart. 8
Republic of Panama
c/o Paolo Ferrari
Telephone: +507 308 9800
BLUE TREE: Member to Hear Wind-Up Report Today
----------------------------------------------
The sole member of Blue Tree Holdings will hear today, March 28,
2016, at 10:00 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Lion International Management Limited
Craigmuir Chambers
Road Town
Tortola VG1110
British Virgin Islands
CHEW & SONS: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Chew & Sons Company Ltd. received on March 16,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Delio Jose De Leon Mela
Salduba Building, Third Floor
53rd East Street
Marbella
Panama City
Telephone: (507) 269-2641
Facsimile: (507) 263-8079
CLAIRE LTD: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of Claire Ltd. received on March 16, 2016, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Delio Jose De Leon Mela
Salduba Building, Third Floor
53rd East Street
Marbella
Panama City
Telephone: (507) 269-2641
Facsimile: (507) 263-8079
CRANBERRY HOLDINGS: Member to Hear Wind-Up Report Today
-------------------------------------------------------
The sole member of Cranberry Holdings Ltd. will hear today,
March 28, 2016, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Lion International Management Limited
Craigmuir Chambers
Road Town
Tortola VG1110
British Virgin Islands
EFG SPHINX: Member Receives Wind-Up Report
------------------------------------------
The sole member of EFG Sphinx Platform SPC, Ltd. received on
March 7, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Russell Smith
c/o Antoine Powell
Telephone: (345) 815-4558
BDO CRI (Cayman) Ltd.
Governors Square, Floor 2 - Building 3
23 Lime Tree Bay Ave
P.O. Box 31229 Grand Cayman, KY1-1205
Cayman Islands
ESTE INVESTMENTS: Members Receive Wind-Up Report
------------------------------------------------
The members of Este Investments Limited received on March 15,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Zedra Holdings (Cayman) Limited
c/o Zedra Trust Company (Cayman) Limited
FirstCaribbean House, 4th Floor
P.O. Box 487 Grand Cayman KY1-1106
Cayman Islands
HCP PE: Shareholder Receives Wind-Up Report
-------------------------------------------
The shareholder of HCP PE Investment Co., Ltd received on
March 18, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Susan Craig/Jennifer Chailler
Telephone: (345) 943-3100
KANTA HOLDINGS: Member to Hear Wind-Up Report Today
---------------------------------------------------
The sole member of Kanta Holdings will hear today, March 28, 2016,
at 10:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Lion International Management Limited
Craigmuir Chambers
Road Town
Tortola VG1110
British Virgin Islands
ONIL INVESTMENTS: Member to Hear Wind-Up Report Today
-----------------------------------------------------
The sole member of Onil Investments Limited will hear today,
March 28, 2016, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Lion International Management Limited
Craigmuir Chambers
Road Town
Tortola VG1110
British Virgin Islands
PETERSHILL US: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Petershill US GP (Sisler) Holdings Ltd.
received on March 10, 2016, 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
e-mail: CaymanLiquidation@walkersglobal.com
PIGNA INVESTMENT: Shareholder Receives Wind-Up Report
-----------------------------------------------------
The shareholder of Pigna Investment Ltd. received on March 7,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Morval Bank & Trust Cayman Ltd.
Telephone: +1 (345) 949-9808
P.O. Box 30622, Grand Cayman Ky1-1203
Cayman Islands
SANDBOURNE FUND: Members Receive Wind-Up Report
-----------------------------------------------
The members of Sandbourne Fund Limited received on March 21, 2016,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Russell Smith
c/o Antoine Powell
Telephone: (345) 815-4558
BDO CRI (Cayman) Ltd.
Governors Square, Floor 2 - Building 3
23 Lime Tree Bay Ave.
P.O. Box 31229 Grand Cayman KY1-1205
Cayman Islands
SEA2 LIMITED: Shareholder Receives Wind-Up Report
-------------------------------------------------
The shareholder of SEA2 Limited received on March 18, 2016, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Susan Craig/Jennifer Chailler
Telephone: (345) 943-3100
SOGTI INC: Members Receive Wind-Up Report
-----------------------------------------
The members of Sogti Inc. received on March 14, 2016, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
c/o Christopher Smith
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
Cayman Islands
Telephone: (345) 947 4700
WEST FACE: Shareholders Receive Wind-Up Report
----------------------------------------------
The shareholders of West Face SPV (Cayman) General Partners Inc.
received on Feb. 15, 2016, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Anna Yonge
IMS Liquidations Ltd.
P.O. Box 61 Grand Cayman KY1-1102
Harbour Centre, George Town
Cayman Islands
Telephone: 345-949-4244
Facsimile: 345-949-8635
WEST FACE I: Members Receive Wind-Up Report
-------------------------------------------
The members of West Face SPV (Cayman) I L.P. received on March 16,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Anna Yonge
IMS Liquidations Ltd.
P.O. Box 61 Harbour Centre, George Town
Grand Cayman KY1-1102
Cayman Islands
Telephone: 345-949-4244
Facsimile: 345-949-8635
=========
C H I L E
=========
CHILE: Copper Prices See 3.4% Weekly Drop on Stronger Dollar
------------------------------------------------------------
EFE News reports that copper prices fell 3.4 percent last week to
$2.23 a pound due primarily to a stronger dollar, the Chilean
Copper Commission, known as Cochilco, said.
The growing accumulation of inventories at metal exchanges and
profit-taking by commodity investors also contributed to the price
decline, Cochilco said, according to EFE News.
In China, the world's biggest consumer of the red metal, imports
of refined copper and copper concentrate rose 55.6 percent and 93
percent, respectively, in February relative to the same month of
2015, exceeding market expectations, the report notes.
"These figures have generated cautious optimism that Chinese
demand will recover more quickly than forecasted at the start of
the year," Cochilco said, the report relays.
Inventories of refined copper at warehouses controlled by metal
exchanges worldwide fell by 2,738 metric tons, or 0.4 percent,
last week relative to Friday of two weeks ago, the report relays.
Accumulated inventories of refined copper are up by 133,695 metric
tons, or 28 percent, since the start of 2016, the report notes.
Separately, Chilean state-owned mining giant Codelco, the world's
largest copper producer, said it posted a pre-tax loss of $2.19
billion in 2015, a result it attributed to a 20 percent plunge in
global prices of that commodity, the report says.
Chief Executive Officer Nelson Pizarro said at a press conference
that 2015 was "one of the worst years" in Codelco's history,
adding that "I hope it's the worst," the report notes.
Last year's result contrasted sharply with the company's 2014
performance, when Codelco posted a pre-tax profit of $3.03
billion, the report relays.
Codelco's fine copper production totaled 1.73 million metric tons
last year, up 3.6 percent from 2014, the report adds.
===========
M E X I C O
===========
FRONTIER STAR: Landlords Object to Bidding Protocol
---------------------------------------------------
Vestar California XXII, L.L.C., HVTC, L.L.C., and Gilbert-Chandler
Heights I, L.L.C., jointly file an objection to the motion to
approve bidding procedures for the sale of substantially all of
the assets of Frontier Star, LLC and its affiliates. The motion
was filed by P. Gregg Curry, the Chapter 11 Trustee of the
bankruptcy estates of the Debtors.
William Novotny, Esq., at Dickinson Wright PLLC, in Phoenix,
Arizona -- wnovotny@dickinsonwright.com -- says the objection is
based on the fact that the Sale Procedures Motion fails to provide
for adequate notice to the Landlords of the Trustee's statement of
the Cure Amounts due each of the Landlords and of the adequate
assurance of future performance to be provided by the Buyer, the
Successful Bidder, and the Next Best Bidder.
The Landlords are the owners of and landlords for these leasehold
premises that are currently occupied by the Debtor, Frontier Star
CJ, LLC:
Landlord Shopping Center
-------- ---------------
Vestar California Las Tiendas Village
XXII, L.L.C. Chandler, AZ
HVTC, L.L.C. Happy Valley Towne Center
Phoenix, AZ
Gilbert-Chandler Gilbert Gateway Towne Center Phase II
Heights I, L.L.C. Gilbert, AZ
Each of the leasehold premises is located in a shopping center and
each of the Leases relating to the Shopping Centers has
restrictions on use, radius, location, and exclusivity. As to
each of the Leases, there are unpaid amounts due the Landlords,
Mr. Novotny informs the Court.
Therefore, Mr. Novotny argues, to ensure that the Trustee, the
Buyer, the Successful Bidder, and the Next Best Bidder comply with
the requirements of the Bankruptcy Code, it is essential that the
Landlords receive sufficient notice and be given sufficient
opportunity to be heard regarding:
* the Cure Amounts;
* the financial condition and operating performance of the
Buyer, the Successful Bidder, and the Next Best Bidder;
* whether any assumption and assignment of a lease the Buyer,
the Successful Bidder, or the Next Best Bidder are subject
to all the provisions thereof, including provisions like
radius, location, use, or exclusivity provisions in the
subject leases or in leases with other tenants in the
Shopping Centers; and
* whether any assumption and assignment of a lease to the
Buyer, the Successful Bidder, or the Next Best Bidder will
disrupt any tenant mix or balance in the Shopping Centers.
Mr. Novotny also asserts that there is no indication in the Sale
Procedures Motion or in any of the exhibits attached as to when
the Notices of the Trustee's position regarding Cure Amounts will
be sent to the Landlords. He notes that there is no indication of
when the information regarding the statutorily mandated "adequate
assurance of future performance" will be provided to the Landlords
as to the Buyer, the Successful Bidder, and the Next Best Bidder.
The Sale Procedures Motion proposes that the deadline for
objections by the Landlords to the proposed lease assignment to
the Buyer -- including the Cure Amounts stated by the Trustee and
the adequate assurance information regarding the Buyer -- is March
18, 2016, Mr. Novotny notes. He contends that the Landlords'
counsel should have no less than three full business days'
electronics notice of the Cure Amounts stated by the Trustee and
of the required adequate assurance information regarding the
Buyer: by no later than March 15, 2016.
If, following the Auction proposed to occur on March 21, 2016,
there is a Successful Bidder and a Next Best Bidder to be the
assignees of the Landlords' Leases, the Trustee proposes to seek
approval of those proposed assignments at the sale hearing on
March 23, 2016. Therefore, Mr. Novotny says, the Landlords'
counsel must have no less than two business days' electronic
notice of the adequate assurance information regarding the
Successful Bidder and the Next Best Bidder -- that is, by no later
than the end of business on March 21, 2016.
Furthermore, Mr. Novotny says, the Landlords should have until the
time of hearing on the proposed lease assignments to the
Successful Bidder and the Next Best Bidder, which is scheduled for
March 23, 2016, to state any objections to the "adequate assurance
of future performance" to be provided by the Successful Bidder and
the Next Best Bidder.
Lessors, 1629 McDonald, LLC, Carlees, LLC, and Jo Fern Wade Trust
join in and assert on Lessors' behalf the objections set forth in
the Landlords' objection to the Sale.
The Landlords are represented by:
William Novotny, Esq.
DICKINSON WRIGHT PLLC
1850 North Central Avenue, Suite 1400
Phoenix, AZ 85004
Phone: (602) 285-5000
Fax: (602) 285-5100
Email: wnovotny@dickinsonwright.com
About Frontier Star
Guadalupe, Arizona-based Frontier Star LLC and Frontier Star CJ
LLC are large Carl's Jr. and Hardee's franchisees operated by
three grandchildren of Carl Karcher, who founded the Carl's Jr.
hamburger chain, now owned by parent company CKE Restaurants, Inc.
The grandchildren include the LeVecke siblings Carl, Margaret and
Jason, who is listed as chief executive officer/manager of both
companies. The LeVecke siblings had more than 130 Carl's Jr. and
Hardee's franchises in seven states and Puerto Vallarta, Mexico,
as of late 2013.
Frontier Star, LLC and Frontier Star CJ, LLC filed Chapter 11
bankruptcy petitions (Bankr. D. Ariz. Lead Case No. 15-09383) on
July 27, 2015. The petitions were signed by Jason LeVecke as
CEO/manager. The Cavanagh Law Firm serves as counsel to the
Debtors.
On November 19, 2015, P. Gregg Curry was appointed as the Debtors'
Chapter 11 trustee.
Frontier Star disclosed $71.9 million in assets and $27.3 million
in debt in its schedules.
FRONTIER STAR: Trustee Taps Navigant as Financial Consultant
------------------------------------------------------------
P. Gregg Curry, Chapter 11 trustee for Frontier Star, LLC, et al.,
asks the U.S. Bankruptcy Court for the District of Arizona for
permission to employ Navigant Consulting, Inc., as his financial
consultant.
Navigant will provide general financial services regarding
financial documents, business records and other matters relating
to the Chapter 11 cases. Specifically, Navigant will, among other
things:
1. evaluate and analyze all aspects of the financial condition
of the Debtors including statement and schedules, cash collateral
budgets, cash flow projections, monthly operating reports ad
feasibility analyses;
2. evaluate and analyze all chapter 11 plans and disclosure
statements that are at issue on the cases; and
3.provide financial advice and consulting services in
connection
with the debtor-in-possession financing arrangements.
Navigant's requested compensation for professional services
rendered to the Ch. 11 Trustee will be based on the hours actually
expended by each assigned professional at that professional's
hourly billing rate, as well as reimbursement for reasonable and
necessary expenses that Navigant customarily bills to its clients.
The Trustee has agreed to compensate Navigant for professional
services at its normal and customary hourly rates. As is the case
with respect to rates charged in non-bankruptcy matters of this
type, Navigant's rates are subject to periodic adjustment to
reflect economic and other conditions.
To the best of the trustee's knowledge, Navigant is a
"disinterested person" as that term is defined in Section101(14)
of the Bankruptcy Code.
About Frontier Star
Guadalupe, Arizona-based Frontier Star LLC and Frontier Star CJ
LLC are large Carl's Jr. and Hardee's franchisees operated by
three grandchildren of Carl Karcher, who founded the Carl's Jr.
hamburger chain, now owned by parent company CKE Restaurants, Inc.
The grandchildren include the LeVecke siblings Carl, Margaret and
Jason, who is listed as chief executive officer/manager of both
companies. The LeVecke siblings had more than 130 Carl's Jr. and
Hardee's franchises in seven states and Puerto Vallarta, Mexico,
as of late 2013.
Frontier Star, LLC and Frontier Star CJ, LLC filed Chapter 11
bankruptcy petitions (Bankr. D. Ariz. Lead Case No. 15-09383) on
July 27, 2015. The petitions were signed by Jason LeVecke as
CEO/manager. The Cavanagh Law Firm serves as counsel to the
Debtors.
On November 19, 2015, P. Gregg Curry was appointed as the Debtors'
Chapter 11 trustee.
Frontier Star disclosed $71.9 million in assets and $27.3 million
in debt in its schedules.
===========
P A N A M A
===========
* PANAMA: Newly Expanded Canal Set to be Inaugurated on June 26
-------------------------------------------------------------
EFE News reports that originally scheduled to be concluded in
October 2014, the newly expanded Panama Canal will be inaugurated
on June 26, Panama announced.
The canal, which links the Atlantic and Pacific Oceans, underwent
an extensive renovation to allow modern, larger cargo ships
through its locks, according to EFE News.
But the $5.2 billion face-lift was plagued by a string of work
stoppages and disputes with the Italian conglomerate behind the
expansion -- the date of the inauguration has been pushed back on
several occasions due to repairs, strikes and contractual disputes
between the Panama Canal Authority and the consortium, the report
notes.
The project includes wider locks with mechanical gates that will
reduce congestion and be able accommodate post-Panamax vessels,
which are as long as three football fields and have the capacity
to carry about 2.5 times the number of containers held by ships
currently using the canal, the report relays.
International shipping had literally outgrown the Panama Canal.
The term "Panamax" is derived from the maximum size of ships that
could pass through the canal, the report discloses. Post-Panamax
vessels transport some 45 percent of the world's cargo, the report
says.
President Juan Carlos Varela's administration made the
announcement.
=======
P E R U
=======
COMPANIA DE MINAS: Moody's Cuts Issuer Rating to Ba2, On Review
---------------------------------------------------------------
Moody's Investors Service downgraded Compania de Minas
Buenaventura S.A.A.'s issuer rating to Ba2 from Ba1. The rating
remains under review for downgrade.
Rating Actions:
Issuer: Compania de Minas Buenaventura S.A.A.
Issuer rating: downgraded to Ba2 from Ba1
The rating is on review for further downgrade.
RATINGS RATIONALE
The downgrade of Buenaventura's rating to Ba2 incorporates the
deterioration in market fundamentals for precious and base metals
due to pressuring commodity prices and weakening demand,
especially in China. The company's operating performance will
remain challenged, and deterioration in market fundamentals is
already reflected in much weaker credit metrics at the end of
2015, especially margins and interest coverage.
This rating action also incorporates Moody's view that there has
been a fundamental downward shift in the mining sector with the
downturn being deeper and prospects for a recovery extended,
resulting in increased credit risk for the global mining sector.
It is acknowledged that gold is driven by different dynamics and
has not evidenced the same magnitude of price compression seen in
base metals and tends to be more resilient given its
characteristics of reserve currency and safe-heaven. Nonetheless,
despite price improvements seen so far in 2016, overall gold
prices have been declining since 2012 and are expected to remain
responsive to economic and sovereign concerns as well as the
strength of the USD, oil price and equity price movements.
Although Buenaventura continues to work on cost reduction and
should get the benefit of higher production volumes already in
2016 and 2017, operational performance will likely remain under
pressure in the next 12 to 18 months given the challenging market
environment, and recovery in earnings may take longer.
Buenaventura's Ba2 rating is supported by its diversified product
base, its diversity in terms of mines (directly operated and
affiliates), the good quality of its asset base, and strong
corporate governance practices. Constraining the rating are its
geographic concentration in Peru, its relatively modest revenue
size and challenges faced to maintain profitability in tough
market conditions.
The rating remains on review for downgrade reflecting our ongoing
concern over Buenaventura's liquidity, which remains pressured by
the amount of short term debt (USD 286 million at the end of
December 2015) in the company's debt structure. Dividends
received from Yanacocha in early 2016 helped improve the liquidity
position, but did not fully address the liquidity risk. The
review process will focus on Buenaventura's ability to complete
the negotiations to refinance its debt maturing in 2016, and to
present an improvement in its liquidity position, reducing its
reliance on short-term debt. Accordingly, additional negative
rating actions can be considered if Buenaventura fails to
refinance or to meet short term financial obligations, or if its
liquidity position materially deteriorates, which could lead to a
multiple-notch downgrade.
The principal methodology used in this rating was Global Mining
Industry published in August 2014.
Headquartered in Lima Peru, Buenaventura is a mining company
engaged in the exploration, mining and processing of gold, silver
and copper in Peru. The company has a stake of around 19.58% in
Cerro Verde, one of the world's largest copper mines, and a 43.65%
stake in Yanacocha, the largest gold mine in Latin America.
Buenaventura is controlled by the Benavides family (27% owned) and
is listed in the New York Stock Exchange (NYSE) and in the Lima
Stock Exchange. I n the LTM ended December 2015, the company had
USD 952 million in revenues.
======================
P U E R T O R I C O
======================
BTB CORPORATION: Amended Disclosure Statement Was Due March 24
--------------------------------------------------------------
BTB Corporation sought and obtained from Judge Mildred Caban
Flores of the U.S. Bankruptcy Court for the District Puerto Rico,
the extension of time to file its amended disclosure statement to
March 24, 2016. The Debtor contended that it needed an additional
21 days to file its amended disclosure statement as it was still
in negotiations with its secured creditor Banco Santander, and its
agreement with Banco Santander involves a repayment agreement with
a third party.
BTB Corporation is represented by:
Alexis Fuentes-Hernandez, Esq.
FUENTES LAW OFFICES, LLC
P.O. Box 9022726
San Juan, PR 00902-2726
Telephone: (787)722-5215,5216
Facsimile: (787)722-5206
E-mail: alex@fuentes-law.com
About BTB Corporation
BTB Corporation was organized in 2003 to be engaged in bitumen
supply activities and the rendering of any other services which
may be complementary to such activities. Debtor initiated
operations from a leased terminal and storage facility located in
Penuelas, Puerto Rico.
In 2007, BTB acquired 100% of the stock of The Placco Company of
Puerto Rico, Inc., ("PLACCO"), a corporation organized under the
laws of Puerto Rico on May 10, 1988 primarily to manufacture,
produce, process and sell bitumen and other related or similar
products. PLACCO became a wholly owned subsidiary of BTB, and is
the owner of the bitumen terminal leased by BTB from where BTB
operates its business in Guaynabo, Puerto Rico.
In 2012, the current majority shareholders acquired BTB from IOTC
Asphalt, LLC, retaining Mr. Juan Vazquez as President of the
Company.
BTB Corporation sought Chapter 11 protection (Bankr. D.P.R. Case
No. 15-03681) in Old San Juan, Puerto Rico, on May 17, 2015.
Samuel Lizardi signed the petition as interim president. The
Debtor disclosed total assets of $16.5 million and total
liabilities of $13.2 million.
BTB said it sought bankruptcy protection as it is unable to meet
obligations as they mature, and creditors are threatening suit and
have threatened to undertake steps to obtain possession of its
assets.
The Debtor tapped Alexis Fuentes Hernandez, Esq., at Fuentes Law
Offices, LLC, as its counsel.
PUERTO RICO GENERAL: S&P Affirms 'CC' Rating on Tax-Backed Debt
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'CC' rating on
various issues of the Commonwealth of Puerto Rico's tax-backed
debt not currently in default. The affirmed ratings includes
those on Puerto Rico general obligation (GO) debt and general fund
appropriation secured debt, excluding already defaulted debt of
the Puerto Rico Public Finance Corp. (PFC), currently rated 'D'.
Standard & Poor's has also affirmed its 'CC' rating on Puerto Rico
Sales Tax Financing Corp. (COFINA) debt, Puerto Rico Convention
Center District Authority (CCD) debt, and Puerto Rico Highways and
Transportation Authority (HTA) debt. The outlook on all debt is
negative.
"We rate debt 'CC' when we expect default to be a virtual
certainty, regardless of the anticipated time to default," said
Standard & Poor's credit analyst David Hitchcock. "In our view,
all of Puerto Rico's tax-backed debt is highly vulnerable to
nonpayment," Mr. Hitchcock.
Standard & Poor's believes a default or restructuring is highly
likely and could take the form of either a missed debt service
payment or a distressed exchange that S&P would characterize as a
default. Puerto Rico reports weak projected liquidity that likely
will result in a missed interest payment for the separately rated
Puerto Rico Government Development Bank (GDB) on April 1, 2016 or
a missed GDB principal payment on May 2, 2016.
"We expect the July 1, 2016, debt service payment of $224.6
million for HTA and $9.5 million for CCD debt will be paid from
trustee-held HTA and CCD bond reserves, and it is unclear to us
whether these issuers will default on the succeeding Jan. 1, 2017,
debt service payment date. Puerto Rico has not been forwarding to
the bond trustee tax revenue pledged to HTA and CCD debt service
payment, and we believe a default on HTA and CCD debt is a virtual
certainty, if not by the next Jan. 1 payment date, by a later debt
service payment date, as long as Puerto Rico continues to divert
pledged tax revenue, or earlier if Puerto Rico gains legal debt
restructuring authority. We believe that while CCD reserves could
potentially become exhausted before the next Jan. 1, 2017 payment
date, it is unclear whether HTA pledged toll revenues, which are
not subject to diversion, could potentially extend the date until
default," S&P said.
The COFINA bond trustee holds sufficient money to make the next
upcoming August 2016 COFINA debt service payment from pledged
sales tax set-asides in the first half of the fiscal year, but in
S&P's view weak projected liquidity and the commonwealth's
apparent unwillingness to prioritize debt service over other
operating costs, as evidenced by current commonwealth
restructuring proposals, lead S&P to conclude that annual
segregation of sales taxes pledged to COFINA that are scheduled
to begin again on July 1 may not occur. The commonwealth's
current proposal for COFINA debt would impose a greater
restructuring haircut on COFINA than on GO debt.
S&P believes that default could occur earlier than scheduled debt
service due dates for all tax-backed debt, if the U.S. Congress
grants Puerto Rico's request for debt restructuring authority,
whether it be an extension to Puerto Rico of Chapter 9 bankruptcy
law provisions that currently apply to the states, which would
allowed Puerto Rico to file its public corporations into
bankruptcy; or a "super Chapter 9" that applies to the Puerto Rico
central government; or if other types of special restructuring
authority were authorized by Congress, such as one that might
require majority consensual approval of bondholders.
S&P rates all Puerto Rico tax-backed debt at 'CC', except for
Puerto Rico Public Finance Corp. and Puerto Rico Infrastructure
Financing Authority federal rum excise tax-secured debt, which is
currently in default and rated 'D', reflecting Puerto Rico's
projection of limited liquidity available to make payment for all
its debt through the remainder of the fiscal year, the likelihood
of another operating deficit in the current fiscal year that could
further pressure liquidity, and the commonwealth's proposal for
all bondholders to take significant restructuring haircuts.
The negative outlook reflects S&P's view that default is a virtual
certainty. If any specific debt issues fell into default, S&P
would lower its rating on the debt to 'D'. Although S&P do not
expect it to occur, if liquidity improved to the extent it
believed it likely the commonwealth would avoid near-term default,
S&P could potentially raise our rating back to the 'CCC' category.
STANDARD REGISTER: Time to Remove Actions Extended to Aug. 3
------------------------------------------------------------
Judge Brendan L. Shannon entered a fourth order extending the
period within which SRC Liquidation Company, et al., may remove
actions pursuant to 28 U.S.C. Sec. 1452. Pursuant to the order,
the time period provided by Bankruptcy Rule 9027 within which the
Debtors may file notices of removal of claims and causes of action
is enlarged and extended through and including Aug. 3, 2016.
About Standard Register
Standard Register provided market-specific insights and a
compelling portfolio of workflow, content and analytics solutions
to address the changing business landscape in healthcare,
financial services, manufacturing and retail markets. The Company
had operations in all U.S. states and Puerto Rico, and had 3,500
full-time employees.
The Standard Register Company and 10 affiliated debtors sought
Chapter 11 protection in Delaware on March 12, 2015, with plans to
launch a sale process where its largest secured lender would serve
as stalking horse bidder in an auction.
The cases are pending before the Honorable Judge Brendan L.
Shannon and are jointly administered under Case No. 15-10541.
The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young
Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery &
Transformation Services U.S., LLC, as restructuring advisors; and
Prime Clerk LLC as claims agent.
The Official Committee of Unsecured Creditors tapped Lowenstein
Sandler LLP as its counsel and Jefferies LLC as its exclusive
investment banker.
* * *
Assets of Standard Register and its affiliates were sold to Taylor
Corp., a privately held company. The sale to Taylor closed on
July 31, 2015.
SRC Liquidation Company, f/k/a The Standard Register Company, and
its affiliated debtors on Nov. 19, 2015, won confirmation of their
Second Amended Chapter 11 Plan of Liquidation. The Effective Date
of the Plan occurred on Dec. 18, 2015. The Plan proposes to pay
1% of the allowed claims of general unsecured creditors.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: JV Fails to Yield Quantities of Crude, Gas
------------------------------------------------------------------
EFE News reports that a joint venture of Bolivian state-owned
energy firm YPFB and Venezuelan counterpart Petroleos de Venezuela
(PDVSA) has come up empty in its search for crude and natural gas
in drilling at the Lliquimuni block, a project that Bolivian
President Evo Morales has said is highly promising.
YPFB CEO Guillermo Acha confirmed in a statement that the
Lliquimuni C X-1 well at the Lliquimuni block in the western
Bolivian province of La Paz had failed to yield commercially
viable quantities of hydrocarbons, according to EFE News.
The YPFB Petroandina joint venture, in which YPFB has a majority
60 percent stake and PDVSA the remaining 40 percent interest,
drilled that well to a depth of 4,562 meters (14,960 feet), 1,000
meters more than initially scheduled, the report notes.
The work conducted for more than a year at Lliquimuni, however,
yielded results of "great technical value because they verify the
existence of an active petroleum system in the block," Acha said,
adding that new studies will be conducted and another well could
be drilled in the future, the report relays.
The report notes that Mr. Morales has repeatedly expressed
optimism about exploratory work in that remote area, saying he
hoped sufficient crude would be discovered to spur the development
of the La Paz region.
Those expectations were fueled by initial studies in 2011
indicating the block might hold around 50 million barrels of crude
and 1 trillion cubic feet of natural gas, the report relays.
YPFB Petroandina, a joint venture established in 2007 by close
allies Bolivia and Venezuela, recognizes investment in Lliquimuni
through 2013 of $151 million, although the press reported
significantly higher investment outlays in that block, EFE News
discloses.
The JV says on its Web site that it also carried out exploration
work in the southern Bolivian region of Tarija between September
2013 and September 2014, drilling the Timboy X2 well to a depth of
3,970 meters, the report says.
Although Tarija is rich in natural gas, the Timboy X2 well also
failed to yield commercially viable quantities of oil and natural
gas, Hydrocarbons Minister Luis Alberto Sanchez told the Nuevo Sur
daily in March 2015, the report notes.
Bolivia's government assigned YPFB Petroandina a dozen blocks in
the Subandino Norte and Subandino Sur basins when the joint
venture was formed, but most are no longer being referred to as
potential targets for exploration, the report adds.
As reported in the Troubled Company Reporter-Latin America on
March 10, 2016, Moody's Investors Service changed the outlook on
Petroleos de Venezuela (PDVSA)'s ratings to negative from stable.
Moody's also affirmed PDVSA's Caa3 issuer rating and lowered the
company's baseline credit assessment (BCA) to caa3 from caa1.
These rating actions follow Moody's decision on March 4, 2016, to
change the outlook on the Government of Venezuela's bond ratings
to negative from stable.
=================
X X X X X X X X X
=================
LATAM: Oil, Gas & Commodity Cos. Lead Sector Cuts, Fitch Says
-------------------------------------------------------------
Energy (oil & gas) and natural resource companies made up 33% of
downgrades, excluding sovereign related, during 2015, according to
Fitch Ratings. Persistently weak oil prices have continued to
lead to capex reductions or delays and have been a primary driver
for weakened investment and sub-investment-grade credit profiles
globally.
In addition, Brazilian corporates had the highest number of
downgrades for a country at 48 and made up approximately 75% of
the Latin American portfolio downgrades in 2015. These actions,
some multi-notch, have been across all rating levels and different
sectors. The risk of further downgrades hang over Brazilian
corporates, demonstrated by both the negative outlook on the
Brazil sovereign and approximately 50% of the Brazilian corporate
portfolio having a negative rating outlook or watch.
Prolonged weak oil, gas and commodity prices have triggered
various revisions to Fitch's commodity price decks, which,
combined with liquidity concerns and management reaction for some
entities, have led to rating downgrades. Operational/industry
factors primarily drove downgrades for the natural resources
(metals and mining) sector, which made up 15% of downgrades
(excluding sovereign related). Overcapacity of supply, reduction
in Chinese demand and idiosyncratic reasons such as Chinese
dumping of steel have kept commodity prices low. In addition,
investor sentiment toward commodities is deeply negative and is
likely to remain so into the first half of 2016, affecting
commodity sectors such as copper and nickel.
Fitch's annual special report, "The Causes of Non-Financial
Corporate Upgrades and Downgrades, Behind the 2015 Statistics and
2016 Outlooks," dated March 2016, discusses the 2015 rating change
activity and 2016 corporate outlook. The 17-page report includes
over 30 charts and tables detailing rating change activity by
regions, category and sector.
Non-financial corporate downgrades exceeded upgrades by 2 to 1 (x)
for 2015. The number of issuers downgraded, excluding duplicates,
in Fitch's corporate portfolio went up to 207 in 2015 from 125 in
2014, a 66% increase. In comparison, the number of upgrades
increased modestly from 96 in 2014 to 104 in 2015, an 8% increase.
The energy (oil & gas), natural resources, building materials &
construction and utilities sectors drove approximately 70% of the
increase in downgrades. For the commodity-related sector,
approximately 50% of the increase, the pressure from lower-for-
longer commodity prices has weakened credit profiles beyond
Fitch's original through-the-cycle expectations.
The purpose of Fitch's projections is not to predict the actual
commodity price but to provide a range of foreseeable operational
and financial profiles within the rating time horizon commensurate
with a rating, which is expected to survive the inherent
cyclicality of the sector including its commodity price
fluctuations. As a result, Fitch aims to assign cyclical
companies ratings that have enough headroom to enable them to
remain broadly stable during the sector's inherent cyclical peaks
and troughs, not assigning ever-changing, pro-cyclical ratings.
In 2015, approximately 45% of corporate upgrades were in North
America, with most (80%) driven by an improvement in the
operations/industry environment. This reflects the stronger
recovery in the US than in other countries and Fitch's forward-
looking expectations for improved operating performance consistent
with its guidelines.
* BOND PRICING: For the Week From March 21 to March 25, 2016
------------------------------------------------------------
Issuer Name Cpn Bid Price Maturity Date Country Curr
----------- --- --------- ------------- ------- ----
PDVSA 8.5 56.25 11/2/2017 VE USD
PDVSA 12.75 53.5 2/17/2022 VE USD
Kaisa Group
Holdings Ltd 8.87 65.5 3/19/2018 CN USD
Venezuela 12.75 52.5 8/23/2022 VE USD
PDVSA 5.25 47.5 4/12/2017 VE USD
PDVSA 5.37 34.65 4/12/2027 VE USD
PDVSA 6 6.5 11/15/2026 VE USD
Venezuela 5.75 61.5 2/26/2016 VE USD
PDVSA 9.75 46 5/17/2035 VE USD
Venezuela 11.95 49 8/5/2031 VE USD
PDVSA 6 37.5 5/16/2024 VE USD
Kaisa Group
Holdings Ltd 9 82 6/6/2019 CN USD
PDVSA 9 43.5 11/17/2021 VE USD
PDVSA 5.5 36.9 4/12/2037 VE USD
Venezuela 13.62 56 8/15/2018 VE USD
Kaisa Group
Holdings Ltd 10.25 69 1/8/2020 CN USD
Kaisa Group
Holdings Ltd 12.87 108 9/18/2017 CN USD
Odebrecht Oil
& Gas Finance
Ltd 7 68 KY USD
CSN Islands
XII Corp 7 74.5 BR USD
Venezuela 8.25 44 10/13/2024 VE USD
Honghua Group
Ltd 7.45 58.5 9/25/2019 CN USD
PDVSA 5.12 53.48 10/28/2016 VE USD
Venezuela 7.75 42.5 10/13/2019 VE USD
Banco do Brasil
SA/Cayman 6.25 75 KY USD
Venezuela 7 44.5 12/1/2018 VE USD
Venezuela 9 44.5 5/7/2023 VE USD
Kaisa Group
Holdings Ltd 6.87 74.423 4/22/2016 CN CNY
Venezuela 9.37 44.5 1/13/2034 VE USD
Venezuela 6 39 12/9/2020 VE USD
Venezuela 7 40.5 3/31/2038 VE USD
CA La
Electricidad
de Caracas 8.5 40 4/10/2018 VE USD
Venezuela 9.25 44.5 5/7/2028 VE USD
Offshore Group
Investment Ltd 7.5 74.87 11/1/2019 KY USD
Venezuela 7.65 35.5 4/21/2025 VE USD
Automotores
Gildemeister SA 8.25 45.87 5/24/2021 CL USD
Kaisa Group
Holdings Ltd 8 70 12/20/2015 CN CNY
Venezuela 13.625 48 8/15/2018 VE USD
Agile Property
Holdings Ltd 8.25 75.05 CN USD
McDermott
International
Inc 8 70.5 5/1/2021 US USD
USJ Acucar e
Alcool SA 9.875 73 11/9/2019 BR USD
Tonon
Bioenergia SA 9.25 62.3 1/24/2020 BR USD
Offshore Group
Investment Ltd 7.125 68.06 4/1/2023 KY USD
Automotores
Gildemeister SA 6.75 44.75 1/15/2023 CL USD
SMU SA 7.75 76.5 2/8/2020 CL USD
Mongolian
Mining Corp 8.87 66.5 3/29/2017 MN USD
Polarcus Ltd 8 40.08 6/7/2018 AE USD
PSOS Finance
Ltd 11.75 75 4/23/2018 KY USD
PDVSA 8.5 57.45 11/2/2017 VE USD
Herbalife Ltd 2 73.7 8/15/2019 US USD
Cia Energetica
de Sao Paulo 9.75 72.87 1/15/2015 BR BRL
BA-CA Finance
Cayman Ltd 1.21 63.249 KY EUR
Hidili Industry
International
Development Ltd 8.625 76 11/4/2015 CN USD
China Precious
Metal Resources
Holdings Co Ltd 7.25 52.067 2/4/2018 HK HKD
Inversora de
Electrica de
Buenos Aires SA 6.5 28.5 9/26/2017 AR USD
NQ Mobile Inc 4 70.448 10/15/2018 CN USD
Glorious Property
Holdings Ltd 13.25 71.971 3/4/2018 HK USD
Kaisa Group
Holdings Ltd 8.875 93.5 3/19/2018 CN USD
PDVSA 6 37.63 11/15/2026 VE USD
PDVSA 12.75 51.83 2/17/2022 VE USD
Polarcus Ltd 8.9 39.854 7/8/2019 AE NOK
Polarcus Ltd 2.87 68.7 4/27/2016 AE USD
Empresa
Distribuidora
Y Comercializadora
Norte 9.75 72.42 10/25/2022 AR USD
PDVSA 6 39.65 5/16/2024 VE USD
Argentina Bond 1.18 8.12 12/31/2038 AR ARS
Venezuela Bond 13.625 50.941 8/15/2018 VE USD
McDermott
International Inc 8 84.5 5/1/2021 US USD
Tonon
Bioenergia SA 9.25 71 1/24/2020 BR USD
Argentina
Bonar Bonds 23.00 5.5 9/10/2015 AR ARS
BCP Finance Co 2.15 61.25 KY EUR
Newland
International
Properties Corp 9.5 32 7/3/2017 PA USD
BA-CA Finance
Cayman 2 Ltd 2.03 62.31 KY EUR
Odebrecht Oil
& Gas Finance
Ltd 7 69 KY USD
PDVSA 9 44 11/17/2021 VE USD
Honghua Group
Ltd 7.45 58.5 9/25/2019 CN USD
Argentine Bonad
Bonds 2.4 68 3/18/2018 AR USD
Automotores
Gildemeister SA 8.25 60 5/24/2021 CL USD
PDVSA 9.75 43 5/17/2035 VE USD
Automotores
Gildemeister SA 6.75 59.5 1/15/2023 CL USD
ESFG
International
Ltd 5.753 0.68 KY EUR
Greenfields
Petroleum Corp 9 20 5/31/2017 US CAD
USJ Acucar e
Alcool SA 9.87 73 11/9/2019 BR USD
CSN Islands
XII Corp 7 73.99 BR USD
SMU SA 7.75 75.25 2/8/2020 CL USD
Mongolian
Mining Corp 8.875 66.5 3/29/2017 MN USD
Banco do Brasil
SA/Cayman 6.25 74 KY USD
Argentina Bocon 2 42.288 1/3/2016 AR ARS
Venezuela
TICC Bond 6.25 73.195 4/6/2017 VE USD
Hidili Industry
International
Development Ltd 8.625 75 11/4/2015 CN USD
Cia Energetica
de Sao Paulo 9.75 72.87 1/15/2015 BR BRL
Venezuela TICC
Bond 5.25 52.627 3/21/2019 VE USD
Newland
International
Properties Corp 9.5 47 7/3/2017 PA USD
Empresa
Distribuidora
Y Comercializadora
Norte 9.75 72 10/25/2022 AR USD
Banif Finance
Ltd 1.449 KY EUR
BPI
Capital
Finance Ltd 2.63 39.5 KY EUR
Cia Cervecerias
Unidas SA 4 51.90 12/1/2024 CL CLP
Banco BPI
SA/Cayman Islands 4.15 71.37 11/14/2035 KY EUR
Argentina Bond 5.83 14 12/31/2033 AR ARS
Cia Sud
Americana
de Vapores SA 6.4 58.45 10/1/2022 CL CLP
Venezuela TICC
Bond 9.12 74.29 9/15/2017 VE USD
Venezuela Bond 9.25 48 9/15/2027 VE USD
Ruta del Bosque
Sociedad
Concesionaria SA 6.3 69.2 3/15/2021 CL CLP
Talca Chillan
Sociedad
Concesionaria SA 2.75 47.78 12/15/2019 CL CLP
Venezuela Bond 11.75 50.5 10/21/2026 VE USD
Provincia
de Rio Negro 1.6716 72 5/4/2024 AR ARS
Provincia
Corrientes 0.0204 8 1/1/2016 AR ARS
Provincia del
Chaco 4 61.25 12/4/2026 AR USD
Decimo Primer
Fideicomiso de
Bonos de
Prestamos
Hipotecar 4.54 59 10/25/2041 PA USD
Decimo Primer
Fideicomiso de
Bonos de
Prestamos
Hipotecar 6 70.8 10/25/2041 PA USD
Empresa de los
Ferrocarriles
del Estado 6.5 69.91 1/1/2026 CL CLP
***********
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 comillionercial 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 * * *