/raid1/www/Hosts/bankrupt/TCRLA_Public/160428.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, April 28, 2016, Vol. 17, No. 83
Headlines
A R G E N T I N A
ARAUCO ARGENTINA: S&P Affirms 'B-' Foreign Currency Rating
* Argentina Investigates Uber's Handling of Personal Information
B R A Z I L
BANCO REGIONAL: Moody's Assigns Ba2 Currency Issuer Rating
OI SA: S&P Lowers CCR to 'CCC-'; Outlook Still Negative
TEGMA GESTAO: Moody's Lowers CFR to B2; Outlook Remains Negative
C A Y M A N I S L A N D S
ALTA INVESTMENTS: Members' Final Meeting Set for May 26
ATLAS ASSET: Members' Final Meeting Set for May 3
BLACKHORSE ENHANCED: Shareholders' Final Meeting Set for May 6
CH INDIGO II: Members' Final Meeting Set for May 20
CH INDIGO INVESTMENTS: Members' Final Meeting Set for May 20
CH INDIGO ONSHORE: Members' Final Meeting Set for May 20
DALTON DISTRESSED: Shareholders' Final Meeting Set for May 11
EQUITY SOUTH: Shareholders' Final Meeting Set for May 17
LMSF-C: Members' Final Meeting Set for May 6
SAKURA SECURITISATION: Shareholders' Final Meeting Set for May 20
TROPHY LV: Shareholder to Hear Wind-Up Report on May 9
TROPHY LV MASTER: Shareholder to Hear Wind-Up Report on May 9
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Banana Industry Earns US$420 Million Yearly
DOMINICAN REPUBLIC: Tax Climate Improves, Latinvex Says
M E X I C O
* Mexico's Oil Exports Plunge Nearly 45 pct. in 1st Quarter
P E R U
ALICORP SAA: S&P Assigns 'BBB-' CCR; Outlook Stable
P U E R T O R I C O
PUERTO RICO: Dominicans Flee Commonwealth's Stunning Crisis
STANDARD REGISTER: Gets Approval to Settle Preference Claims
WILLIAM CONTRACTOR: Court Partly Junks Suit vs Banco Popular
T R I N I D A D & T O B A G O
REPSOL: Offers Voluntary Separation Packages to Workers
U R U G U A Y
NAVIOS SOUTH: Moody's Lowers CFR to B3; Outlook Negative
- - - - -
=================
A R G E N T I N A
=================
ARAUCO ARGENTINA: S&P Affirms 'B-' Foreign Currency Rating
----------------------------------------------------------
Standard & Poor's Ratings Services revised the local currency
rating on Arauco Argentina S.A. (AASA) to 'B' from 'B-', and
removed the rating from CreditWatch with positive implications.
S&P also affirmed AASA's 'B-' foreign currency rating. The
outlook is stable.
The 'BBB-' issue-level rating on AASA's $270 million 2017 bond is
the same as the corporate credit rating on the parent, Celulosa
Arauco y Constitucion S.A. (ARAUCO, BBB-/stable) due to its full
and unconditional payment guarantee.
The local currency rating on AASA is one notch above Argentina's
local currency rating (foreign currency:SD; local currency:
B-/Stable), reflecting S&P's view that the company will generate
sufficient local resources, regardless of the currency
denomination, to meet its operating and financial needs in the
next 12 months, even under harsher macroeconomic conditions.
The stable outlook mirrors that on the sovereign local currency
rating. It also reflects the new policy approach that addresses
Argentina's main economic imbalances and recognizes the political
challenges the new administration will still have to face.
In the next 12 months, a downward change in S&P's T&C assessment
would most likely result in a downgrade of the foreign and local
currency rating of the company. In addition, for the local
currency rating, any downside risk will be related to a decrease
in S&P's base-case EBITDA to around 10% due to, for instance,
lower realization pulp prices (at an average of $700/ton) coupled
with lower panel prices (at around $400/ton) in 2016 and 2017.
S&P could upgrade the foreign currency rating on the company if
the T&C is positively reviewed in the next 12 months. For the
local currency rating, apart from an improvement in the T&C
assessment, S&P would need better-than-expected credit metrics,
such as FFO to debt consistently in excess of 30%.
* Argentina Investigates Uber's Handling of Personal Information
----------------------------------------------------------------
EFE News reports that Argentina's Personal Information Protection
Administration is investigating whether U.S.-based ride-sharing
service Uber is complying with laws to protect privacy and
personal information, officials said.
The agency asked Uber to provide details on the information it
collects from customers, how that information is protected and
where the information is stored within 10 days, acc.
===========
B R A Z I L
===========
BANCO REGIONAL: Moody's Assigns Ba2 Currency Issuer Rating
----------------------------------------------------------
Moody's America Latina assigned long and short-term global local
currency issuer ratings of Ba2 and Not-Prime, respectively, to
Banco Regional de Desenvolvimento do Extremo Sul (BRDE) -- a
development bank owned a third each by the states of Parana (Ba3,
stable), Rio Grande do Sul (unrated) and Santa Catarina (unrated).
At the same time, Moody's also assigned to BRDE long and short-
term Brazilian national scale issuer ratings of Aa3.br and BR-1.
The outlook on all ratings is negative. This is the first time
Moody's has assigned ratings to Banco Regional de Desenvolvimento
do Extremo Sul.
These ratings were assigned to Banco Regional de Desenvolvimento
do Extremo Sul:
-- Long-term global local currency issuer rating of Ba2,
negative outlook
-- Short-term global local currency issuer rating of Not-Prime
-- Long-term Brazilian national scale issuer rating in Brazil
of Aa3.br
-- Short-term Brazilian national scale issuer rating in Brazil
of BR-1
-- Baseline credit assessment of ba2
RATINGS RATIONALE
The Ba2 rating reflects the bank's established role in fostering
development in the relatively prosperous southern states of
Brazil, deteriorating but still sound asset quality, as well as
adequate capitalization and strong profitability. BRDE's stable
but highly concentrated funding structure comprised predominantly
of resources from Banco Nacional de Desenvolvimento Economico e
Social - BNDES (Ba2, negative) is also a key factor in its
ratings.
Although delinquent loans remain relatively low, BRDE's asset
quality worsened in 2015 under the challenges it faces in the
current operating environment given the concentrations of its loan
book by sector and borrower type. The bank's 90 day past due loan
ratio rose to 1.8% in 2015 from an average of just 1.2% from 2012
to 2014. This deterioration also understates the bank's true
asset risk as it does not account for restructured loans resulting
from government-sponsored credit renegotiation programs, which
represented about 2% of total loans in 2015. In addition, BRDE's
loan book exhibits geographic concentration in the south of
Brazil, although it should be noted that the states the bank
serves are among the most prosperous in Brazil. The bank's loan
book also shows high sector concentration in agriculture, and
although this sector has performed relatively well in recent
years, Brazil's deepening recession will inevitably affect this
industry as well. BRDE is also highly exposed to the challenges
faced by smaller scale producers in Brazil's recession given its
focus on lending to them both directly and through agricultural
cooperatives.
While BRDE could also theoretically be exposed to political
interference in its asset allocation decisions as a public-sector
development bank, its corporate governance structure helps
mitigate this risk.
Despite falling by 170 basis points in 2015 due to growth of the
bank's loan book, BRDE's adjusted capitalization levels, as
measured by Moody's, are still high at 16.8% thanks to the bank's
by-laws, which prohibit the payment of dividends to shareholders.
Moreover, despite its public ownership and social mission,
together with a 40% increase in provisioning expenses in 2015,
BRDE exhibited fairly strong profitability in 2015, with net
income equal to 1.8% of tangible banking assets, helping to
replenish capital as it is consumed by loan growth. BRDE has
faced challenges with regards to its regulatory capital levels in
the past, but these were related to complications with regulatory
capital accounting, rather than a reflection of any real
limitations to the bank's capacity to support growth and absorb
losses.
As a non-deposit taking development bank, BRDE is almost entirely
dependent on wholesale funding from BNDES. Although funding from
BNDES is relatively long-term, and BNDES has not indicated that it
is expecting to reduce its funding to the agricultural sector as
part of the ongoing redefinition and reduction of its role, the
high level of concentration of BRDE's funding sources nevertheless
leaves it potentially exposed to funding risks. Management hopes
to address this by diversifying the bank's funding.
NEGATIVE OUTLOOK ASSIGNED
In assigning the negative outlook on BRDE's ratings, Moody's took
into account the continued challenges the bank will face in
maintaining low delinquency and high profitability levels as
Brazil's economy continues to deteriorate, particularly in light
of the bank's concentrated exposure to smaller scale producers,
who are more vulnerable to the country's economic weakness. As
BRDE's asset quality continues to suffer, rising provisions will
in turn drive lower profitability. The outlook also considers the
risk that capitalization levels may be pressured further by
continued rapid expansion of the bank's operations.
WHAT COULD MAKE THE RATING GO DOWN
A weakening of BRDE's financial fundamentals, particularly
resulting from deterioration in the quality of the loan book and
lower capitalization levels, could have a negative effect on the
bank's rating. A downgrade in Brazil's sovereign rating would
also lead to a downgrade in BRDE's ratings.
METHODOLOGY AND LAST RATING ACTION
The methodologies used in this rating were Banks published in
January 2016, and Government-Related Issuers published in October
2014.
Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".za" for South Africa.
BRDE is headquartered in Porto Alegre, Rio Grande do Sul, and had
total assets of BRL15.0 billion (US$3.9 billion) and equity of
BRL2.3 billion (US$790 million) as of Dec. 31, 2015.
OI SA: S&P Lowers CCR to 'CCC-'; Outlook Still Negative
-------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and issue-level global scale ratings on Oi S.A. to 'CCC-' from
'CCC' and its national scale ratings to 'brCCC-' from 'brCCC'.
The recovery ratings on the company's rated debt remain unchanged
at '4', indicating S&P's expectation for average (30%-50%; in the
lower half of the range) recovery following a default. The
outlook on the corporate credit ratings remains negative.
Oi announced that it signed an agreement with Moelis & Company
that the latter will act as advisor for a group of Oi's
bondholders to facilitate and expedite the discussions regarding
the terms of a potential restructuring. As the company advances
in these discussions and debt maturities approach, S&P believes
that there is a high likelihood of a debt restructuring and/or an
exchange offer that S&P would view as distressed (and therefore
tantamount to default) occurring over the next six months.
The company still carries an important amount of cash and some
credit lines that S&P estimates totaled around R$11 billion as of
the end of first quarter 2016. But it also has meaningful debt
maturities over the next few quarters and a very high leverage,
which have been the main reasons behind company's recent
conversations about a potential debt restructuring.
The negative outlook indicates the potential for a further
downgrade to 'CC' over the next six months if Oi announces an
exchange offer or similar restructuring that S&P would most likely
assess as distressed or equivalent to a default.
Although unlikely, if the company receives capital to reduce its
leverage and the cost of debt, S&P could raise the ratings,
provided that it no longer expects a debt restructuring or debt
exchange that S&P would view as distressed.
-- S&P has lowered its issue-level ratings on Oi's senior
unsecured notes and debentures to 'CCC-' and to 'brCCC-'
from 'CCC' and 'brCCC', respectively. The recovery rating
is unchanged at '4', indicating S&P's expectation of average
recovery (30%-50%; in the lower half of the range) in a
hypothetical default scenario.
-- S&P values Oi as a going-concern, given its significant
position in the Brazilian telecom sector, with the potential
to generate consistent cash flow if it is able to reduce
leverage.
-- S&P's simulated default scenario assumes a payment default
in the second half of 2016 that could occur if the company
does not reach an agreement with bondholders for a debt
restructuring. Three bonds from Oi have a guarantee from
its subsidiary, Telemar Norte Leste. S&P don't treat those
as having a priority over Oi's bonds because S&P believes
there could be a risk of revocation under Brazilian
bankruptcy law, as the guarantee was constituted to secure
an obligation that was not originally guaranteed.
Year of default: 2016
-- EBITDA at emergence: R$6.9 billion
-- Implied enterprise value (EV) multiple: 5x
-- Estimated gross EV at emergence: R$34.5 billion
-- Estimated net enterprise value after 5% administrative
expenses: R$32.8 billion
-- Priority claims: R$660 million (labor obligations)
-- Debt and other liabilities at operating subsidiaries level:
R$13.3 billion
-- Senior secured obligations at the parent level: R$540 million
(tax obligations)
-- Senior unsecured debt and other liabilities at the parent
level: R$47.2 billion
-- Recovery expectation for senior unsecured debt: 30%-50%; in
the lower half of the range
TEGMA GESTAO: Moody's Lowers CFR to B2; Outlook Remains Negative
----------------------------------------------------------------
Moody's America Latina downgraded Tegma Gestao Logistica S.A.'s
corporate family ratings and its BRL200 million senior unsecured
debentures due in 2018 and 2019 to B2 from B1 on the global scale
and to Ba2.br from Baa3.br on the Brazilian national scale. The
outlook for all ratings remains negative.
Issuer: Tegma Gestao Logistica S.A.
Ratings downgraded:
-- Corporate Family Ratings: to B2 from B1 (global scale); to
Ba2.br from Baa3.br (national scale);
-- BRL200 million senior unsecured debentures due in 2018 and
2019: 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 Tegma's ratings and negative outlook reflect the
expectation of a weakening business environment for Tegma and
impact on the company's operating performance as a consequence of
its exposure to the auto-shipment business. These conditions have
been in continuous deterioration, and there is the likelihood that
the negative scenario for the Brazilian auto industry will persist
for an uncertain period of time. The auto-shipment business
represented 82.5% of the company's revenues during the last twelve
months ended Dec. 31, 2015. More specifically, there was a 21%
drop in light vehicle sales in Brazil during 2015, which during
the same period translated into a 25% decrease in the number of
vehicles transported by Tegma, an almost 22% reduction in net
sales and 60% decrease in EBITDA. Going forward, Moody's expects
an additional decrease of 21% in the company's revenues in 2016.
Partially offsetting these pressures is the company's "asset-
light" business model and the company's actions that we expect
should produce modest free cash flow generation due to lower
working capital requirements and lower CAPEX. This should support
the service of upcoming debt amortizations.
Tegma's B2 ratings continue to reflect its leading position as the
largest logistics company for the automotive industry in Brazil,
supported by medium and long-term contracts and longstanding
relationships with its client base. The rating considers the
company's "asset-light" business model, which entails relatively
stable cash flows and more flexible operations in face of market
downturns. In addition to its low revenue diversification, other
risk factors include a track record of aggressive dividend
distributions - despite the reduction trend observed in 2014 and
2015- and growth strategy through leveraged acquisitions.
According to Brazil's national association of vehicle
manufacturers (ANFAVEA), licenses and registrations of light
vehicles in Brazil fell 26.5% in 2015 compared to the same period
in 2014, and another 28.6% decrease in the first trimester of 2016
when compared to the same period in 2015. Domestic car sales
dropped reflecting a general decline in consumer confidence and
lower consumer financing availability as Brazil's growth and
economic trends deteriorate. The federal government's decision to
reduce certain tax incentives and reduced exports to Argentina
added further pressure in production. There are no signs of
recovery in the short to medium term.
Although the overall risk has increased, Tegma's liquidity is
still adequate with a cash balance of BRL 214 million in the end
of December 2015 and a total reported debt of BRL 364 million to
be amortized until the end of 2019. Tegma has about BRL 189
million in debt amortizations until the end of 2017. In 2018 the
company has another important amortization of BRL 117 million,
which could be a concern if market conditions do not improve until
then and the company is not able to refinance at least part of its
indebtedness. Moody's expects that management will address 2017
and 2018 maturities on a timely fashion in order to preserve
liquidity during the downturn period. Cash position was
reinforced by the BRL 78 million in proceeds received in 2015
related to the sale of its underperforming e-commerce logistics
subsidiary, Direct Express. Moody's expects that the company will
use cash proceeds from its recent asset divesture to reduce gross
leverage and maintain a solid cash balance, while a more
challenging environment for the automotive industry still holds.
The negative outlook considers further negative impact on the
company's future operating performance given its exposure to the
Brazilian automotive industry, consumer products, and the
Brazilian economy in general. None are showing signs of recovery
at this point. The ratings outlook could be stabilized if there
are clear signs of recovery in the automotive industry and if
Tegma is successful in prudently managing dividends, CAPEX, and
consequently leverage while maintaining solid liquidity position
during the downturn scenario.
The rating could be upgraded if operating margins increase to its
historical levels of 10% and if leverage decreases to below 3.0x.
Tegma is expected to maintain its leadership position, ensure
healthy operating margins and debt protection metrics even during
the down cycle.
The ratings could be downgraded if the effects from the economic
downturn are larger than anticipated combined with no clear signs
of recovery in the automotive industry or if the company is not
able to generate positive FCF during down cycle. Quantitatively,
the ratings could be downgraded if revenues decline by more than
20% in 2016, if FCF turns negative or if total adjusted debt to
EBITDA increases above 4.0x. Further downgrade pressure may arise
in case Tegma cannot sustain its leading market position. Also, a
significant increase in the level of secured debt could cause a
downgrade of the rated unsecured debentures.
Tegma is a logistics company, primarily focused on supply chain
management and products for the automotive industry mainly in
Brazil. In the last twelve months ended Dec. 31, 2015, Tegma
transported approximately 766 thousand vehicles representing
approximately 28.2% of Brazil's light vehicle sales. Tegma also
provides delivery services, warehousing, inventory management and
control and other logistic solutions to the consumer product
segment. In the twelve months ended Dec. 31, 2015, Tegma reported
consolidated net revenues of BRL 1.1 billion.
Tegma's largest shareholder is Sinimbu Participacoes Societarias e
Empreendimentos owned by the Itavema group, which controls
approximately 34% of total and voting shares, followed by Coimex
Empreendimentos e Participacoes Ltd., the holding company of
Coimex Group, with a 25% stake.
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
Moody's currently offer NSRs. The comment period for this RFC
closed on February 22.
The principal methodology used in these ratings was Global Surface
Transportation and Logistics Companies published in April 2013.
==========================
C A Y M A N I S L A N D S
==========================
ALTA INVESTMENTS: Members' Final Meeting Set for May 26
-------------------------------------------------------
The members of Alta Investments Ltd will hold their final meeting
on May 26, 2016, at 4:00 p.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
ATLAS ASSET: Members' Final Meeting Set for May 3
-------------------------------------------------
The members of Atlas Asset Management Limited will hold their
final meeting on May 3, 2016, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Richard Fear
c/o Ryan Charles
Telephone: (345) 814 7364
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
BLACKHORSE ENHANCED: Shareholders' Final Meeting Set for May 6
--------------------------------------------------------------
The shareholders of The Blackhorse Enhanced Vietnam Inc. will hold
their final meeting on May 6, 2016, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
John Francis Engle
156 Cecil Street
#06-01 Far Eastern Bank Building
Singapore 069544
CH INDIGO II: Members' Final Meeting Set for May 20
---------------------------------------------------
The members of CH Indigo II Ltd will hold their final meeting on
May 20, 2016, at 9:00 a.m., to receive 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
Telephone: (345) 943-3100
CH INDIGO INVESTMENTS: Members' Final Meeting Set for May 20
------------------------------------------------------------
The members of CH Indigo Investments, Ltd. will hold their final
meeting on May 20, 2016, at 9:45 a.m., to receive 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
Telephone: (345) 943-3100
CH INDIGO ONSHORE: Members' Final Meeting Set for May 20
--------------------------------------------------------
The members of CH Indigo Onshore Investments, Ltd. will hold their
final meeting on May 20, 2016, at 9:30 a.m., to receive 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
Telephone: (345) 943-3100
DALTON DISTRESSED: Shareholders' Final Meeting Set for May 11
-------------------------------------------------------------
The shareholders of Dalton Distressed Credit (Offshore Feeder)
Fund Ltd. will hold their final meeting on May 11, 2016, at
10:00 a.m., to receive the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Art Herbert
1601 Cloverfield Boulevard - Suite 5050N
Santa Monica, CA 90404
Telephone: +1 (424) 231 9066
Facsimile: +1 (424) 231 9050
EQUITY SOUTH: Shareholders' Final Meeting Set for May 17
--------------------------------------------------------
The shareholders of Equity South Investments Limited will hold
their final meeting on May 17, 2016, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Westport Services Ltd.
c/o Patricia Tricarico
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
LMSF-C: Members' Final Meeting Set for May 6
--------------------------------------------
The members of LMSF-C will hold their final meeting on May 6,
2016, at 10:00 a.m., to receive the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Mourant Ozannes
c/o Tim Stumpff
Name: Jo-Anne Maher
Telephone: (345) 814 9255
Facsimile: (345) 949 4647
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
SAKURA SECURITISATION: Shareholders' Final Meeting Set for May 20
-----------------------------------------------------------------
The shareholders of Sakura Securitisation NQ will hold their final
meeting on May 20, 2016, at 10:00 a.m., to receive 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
Telephone: (345) 943-3100
TROPHY LV: Shareholder to Hear Wind-Up Report on May 9
------------------------------------------------------
The shareholder of Trophy LV Fund will receive on May 9, 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:
Norris Tai
Suites 3318-3319, Jardine House, 33rd Floor
1 Connaught Road
Hong Kong
Telephone: 011 852 2913 7000
Facsimile: 011 852 2973 0238
TROPHY LV MASTER: Shareholder to Hear Wind-Up Report on May 9
-------------------------------------------------------------
The shareholder of Trophy LV Master Fund will receive on May 9,
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:
Norris Tai
Suites 3318-3319, Jardine House, 33rd Floor
1 Connaught Road
Hong Kong
Telephone: 011 852 2913 7000
Facsimile: 011 852 2973 0238
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Banana Industry Earns US$420 Million Yearly
---------------------------------------------------------------
Dominican Today reports that Dominican Republic's banana industry
earns US$420 million per year and accounts for more than 32,000
jobs, 44% of them fixed and of which 12% are women.
The figures were revealed during a meeting of the Banana
Accompaniment Measures Program Steering Committee (BAM)). It said
more than 80% of the country's bananas production is organic and
intended for export, according to Dominican Today.
During the activity the BAM's main achievements were highlighted,
including a budget of RD$1.0 billion, of which the European Union
financed more than RD$900 million, the report notes.
Attending the meeting held in the Dominican Agribusiness Board
(JAD) were the ministers of Agriculture, Angel Estevez;
Environment, Bautista Rojas, National Statistics Office director
Pablo Tactuk, and Foreign Relations, Andres Navarro, and JAD CEO
Osmar Benitez, among others, the report relays.
As part of the project's goals reached, the Agriculture Ministry
established the National Phytosanitary Committee, "a breakthrough
with properly managed local production and which places the
country in compliance with international standards on bananas for
export," the report discloses.
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'. The Rating Outlooks on the long-term IDRs are revised to
Positive from Stable. The issue ratings on the Dominican
Republic's senior unsecured foreign and local currency bonds are
affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the
short-term foreign currency IDR at 'B'.
DOMINICAN REPUBLIC: Tax Climate Improves, Latinvex Says
-------------------------------------------------------
Dominican Today reports that the Dominican Republic is one of the
Latin America countries that has improved its overall tax climate
for business, according to the latest annual ranking from Miami-
based online publication Latinvex.
The ranking, which is based on data from PwC, KPMG and The World
Bank, measures the tax environment in 18 countries based on
corporate tax rate and time and number of payments necessary to
comply with tax regulations, according to Dominican Today.
The report notes that the Dominican Republic improved its score by
reducing the number of tax payments from nine to seven and the
time necessary to pay taxes, from 324 to 316 hours. However, it
kept its corporate tax rate at 27 percent, which ranks it in the
middle in Latin America and is in line with the regional average
rate, the report relays.
The Dominican number of tax payments for companies is among the
three lowest in Latin America, the report discloses. Only Mexico
has fewer number of payments (six), while Chile also requires
seven payments, the report says.
Latin America overall saw an improvement in its tax climate,
thanks to better scores from seven countries, according to
Latinvex, the report relays. They helped offset deteriorations in
Brazil and Chile.
Chile remains the country with the best tax environment although
its score saw the worst deterioration as a result of increased
corporate taxes, the report notes.
Brazil, which already had the worst tax climate in Latin America,
saw a deterioration after slightly increasing the number of tax
payments per year -- from 9 to 9.6. Brazil already had the highest
number of hours worldwide for paying taxes -- 2,600 hours, the
report relays.
Thanks to reducing the time and number of tax payments, Costa Rica
jumped from 9th place last year to fourth place this year, the
report discloses. The country reduced the number of payments from
23 to 9, while the time was reduced from 163 hours to 151 hours,
the report adds.
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'. The Rating Outlooks on the long-term IDRs are revised to
Positive from Stable. The issue ratings on the Dominican
Republic's senior unsecured foreign and local currency bonds are
affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the
short-term foreign currency IDR at 'B'.
===========
M E X I C O
===========
* Mexico's Oil Exports Plunge Nearly 45 pct. in 1st Quarter
-----------------------------------------------------------
EFE News reports that Mexico's oil exports fell at an annualized
rate of 44.8 percent in the first quarter, when the overall trade
deficit totaled $4.01 billion, the National Institute of
Statistics and Geography, or INEGI, said.
Exports totaled $85.12 billion during the January-March period,
down 5.8 percent from the same period in 2015, the INEGI said in a
statement, according to EFE News.
=======
P E R U
=======
ALICORP SAA: S&P Assigns 'BBB-' CCR; Outlook Stable
---------------------------------------------------
Standard & Poor's Ratings Services assigned its global scale
'BBB-' long-term corporate credit rating to Peru-based packaged
food company Alicorp S.A.A. The outlook is stable.
"Our rating on Alicorp incorporates its consolidated market
position in Latin America and dominant market share in Peru's
consumer packaged goods segment, thanks to an extensive
distribution network and a diversified product portfolio composed
of more than 100 brands with strong recognition," said Standard &
Poor's ratings analyst Pablo Buch. "The rating also incorporates
the company's exposure to markets with a high-risk operating
environment, such as Argentina and Ecuador, as well as the low
profitability of its Argentinean operation and its exposure to
commodity price volatility."
The company's EBITDA margin was 11.1% in 2015, lifted by lower raw
material costs in Peru and dollar-denominated revenues stemming
from its aquaculture division. This level was in line with other
global rated peers within the industry and is likely to remain
close to 12% over the next couple years, supported by the
company's initiatives to recover sales volume and improve the
profitability of its industrial business segment.
Standard & Poor's financial risk profile assessment incorporates
S&P's expectation that Alicorp will continue improving its credit
metrics with higher cash flow generation, sourced primarily from
its consumer products segment in Peru and aquaculture division, in
conjunction with lower forecasted debt levels. S&P believes
Alicorp will finance most of its upcoming working capital needs,
capital expenditure (capex) requirements, and dividend payments
through internal cash flow generation, while maintaining a prudent
risk management towards the use of derivative instruments.
The stable outlook reflects Standard & Poor's expectation that
Alicorp will continue to strengthen its credit metrics and cash
flow generation, supported by its leading market position and
higher sales volume stemming from recently launched products and
aquaculture sales. Specifically, S&P expects the company will
maintain debt to EBITDA consistently below 3.0x while maintaining
positive DCF generation in the next two years.
S&P could lower its rating in the next 12-18 months if Alicorp
pursues an aggressive growth strategy that requires additional
debt, or if liquidity tightens given the company's strategy to
finance its operations through a high proportion of short-term
debt. S&P could also downgrade Alicorp if the company fails to
offset margin pressures stemming from higher raw material prices
and increased competition, leading to debt to EBITDA above 4.0x.
Although unlikely in the next two years, S&P could raise the
rating if Alicorp continues to improve its credit metrics,
profitability, cash flow generation, and liquidity beyond S&P's
baseline forecast, coupled with a stronger regional market
presence. This would be reflected in EBITDA margins above 12%,
debt to EBITDA below 2.0x, and DCF to debt above 10% on a
consistent basis.
======================
P U E R T O R I C O
======================
PUERTO RICO: Dominicans Flee Commonwealth's Stunning Crisis
-----------------------------------------------------------
Dominican Today reports that Puerto Rico's stunning economic
crisis has virtually bankrupt the island, forcing thousands of
Dominicans from all walks of life to return home, leaving behind
shipping companies, restaurants, cafes, bakeries, beauty salons,
barber shops and other businesses in Rio Piedras, Ponce, Santurce,
Barrio Obrero and other areas.
Outlet elnacional.com.do reported that aside from numerous owners
of shuttered businesses returning from Puerto Rico, also doctors,
engineers, nurses and many others who had spent many years on the
island, according to Dominican Today.
As an example, the outlet says of the more than 300 Dominican
businesses that sold food, drinks and other items in Rio Piedras,
only 26 are still open, the report relays.
Dominicans returning through Las Americas Airport say the
businesses still operating in Puerto Rico cannot even make enough
to pay the taxes, the report notes.
They said the businesses that still survive won't do so for very
long, because sales have plunged more than 80 percent, the report
relays.
"There are many compatriots, mostly living without papers, that in
order to return home, even had to go to the Dominican consulate in
Puerto Rico for help," said the returnee Petronilla de los Santos,
the report adds.
STANDARD REGISTER: Gets Approval to Settle Preference Claims
------------------------------------------------------------
SRC Liquidation Co., formerly known as The Standard Register
Company, received court approval to settle preference claims.
The order was issued by Judge Brendan Shannon of the U.S.
Bankruptcy Court for the District of Delaware.
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.
WILLIAM CONTRACTOR: Court Partly Junks Suit vs Banco Popular
------------------------------------------------------------
In an opinion and order dated April 1, 2016, and available at
http://is.gd/J13M6efrom Leagle.com, Judge Brian K. Tester granted
the motion to dismiss filed by Banco Popular de Puerto Rico as to
William Contractor, Inc.'s claims of breach of contract, breach of
fiduciary duty, and lender liability. The judge, however, denied
the motion as to the plaintiff's claims of estoppel, negligent
misrepresentation, and damages.
The adversary proceeding is William Contractor, Inc., Plaintiff,
v. Banco Popular de Puerto Rico, et al., Defendant, Adversary
Proceeding No. 15-00263 BKT (Bankr. D.P.R.).
The bankruptcy case is IN RE: William Contractor, Inc., Chapter
11, Debtor, Case No. 15-06311 BKT (Bankr. D.P.R.).
WILLIAM CONTRACTOR INC is represented by:
Damaris Quinones Vargas, Esq.
BUFETE QUINONES VARGAS & ASOC.
P.O. Box 429
Cabo Rojo, PR 00623
Tel: (787)851-7866
Fax: (787)851-1717
Email: damarisqv@bufetequinones.com
BANCO POPULAR is represented by:
Luis C. Marini Biaggi, Esq.
Carolina Velaz-Rivero, Esq.
O'NEILL & BORGES
250 Munoz Rivera Avenue, Suite 800
San Juan, PR 00918-1813
Tel: (787)764-8181
Fax: (787)753-8944
Email: luis.marini@oneillborges.com
carolina.velaz@oneillborges.com
JOSE MERCADO is represented by:
Luisa S. Valle Castro, Esq.
C CONDE & ASSOCIATES
254 San Jose Street, 5th Floor
Old San Juan, PR 00901
Tel: (787)729-2900
Fax: (787)729-2203
Email: ls.valle@condelaw.com
================================
T R I N I D A D & T O B A G O
================================
REPSOL: Offers Voluntary Separation Packages to Workers
-------------------------------------------------------
Caribbean360.com reports that Spanish energy giant Repsol is
cutting jobs in Trinidad and Tobago as it moves to streamline
operations.
Repsol has offered staff Voluntary Separation of Employment (VSEP)
packages, and gave them until April 25 to decide if they want to
part ways with the company, according to Caribbean360.com.
In an email sent to 190 employees, Repsol made the offer and
sought to explain in a memo also included in the email, why it was
going that route, the report notes.
"From 2014 to present, Repsol Trinidad has embarked on many
optimization initiatives to make our Business Unit (BU) viable.
In the last quarter of 2015, we communicated to our employees the
problems our company has been facing since the collapse in oil
prices since July 2014. Unfortunately, in late January 2016 we
retrenched local employees at the time and expatriates have been
returning home. We are actively trying to find new and innovative
ways to become more efficient," said the international oil and gas
firm which recently acquired Canadian oil company, Talisman
Energy, the report relays.
The January retrenchment saw 11 workers from Repsol's BU going
home as part of the company's staff cuts in its global workforce,
the report notes.
Repsol's VSEP offer is open to permanent employees, but excludes
unionized workers, workers who submitted formal notice of
retirement or tendered their resignation before April 15, non-
nationals on assignment in Trinidad, and Trinidad and Tobago
nationals on foreign assignments, the report discloses.
Workers were informed that the VSEP is a one-time offer and there
was no guarantee those who applied would be accepted, since all
decisions would be based on organizational needs, the report
relays.
Repsol, one of the largest privately owned oil companies in the
world, has been operating in Trinidad and Tobago since 1995, the
report notes.
It has significant investments in the energy sector in the twin-
island republic through its own TSP offshore operations, and also
through its 30 percent stake in the assets of BP Trinidad and
Tobago, the report adds.
==============
U R U G U A Y
=============
NAVIOS SOUTH: Moody's Lowers CFR to B3; Outlook Negative
--------------------------------------------------------
Moody's Investors Service has downgraded logistics company Navios
South American Logistics Inc.'s (NSAL) corporate family rating to
B3 from B2. Concurrently, Moody's downgraded the rating assigned
to NSAL's guaranteed $375 million senior unsecured notes to B3
from B2. The outlook on all NSAL's ratings is negative.
"The downgrade of NSAL's ratings follows the downgrade of Navios
Maritime Holdings, Inc. (Navios Holdings), its parent company,
which is becoming increasingly dependent on the financial
flexibility of its subsidiaries," says Marie Fischer-Sabatie,
Moody's Senior Vice President and lead analyst for NSAL. "It also
reflects the risk of materially reduced cash inflows from 2017
onwards, following NSAL disclosure that Vale S.A. intends not to
perform its 20-year contract with the company," adds Ms. Fischer-
Sabatie.
RATINGS RATIONALE
The downgrade of NSAL's ratings follows the downgrade of its
parent company, Navios Holdings, which is becoming increasingly
dependent on the financial flexibility of its subsidiaries. The
downgrade also reflects the risks that NSAL's revenues and cash
flows from its largest customer, Vale S.A. (Ba3 negative), will
materially reduce from 2017 onwards. The review follows the
publication of NSAL's 20-F report and the disclosure in this
document that Vale, the world's largest iron ore producer, has
informed NSAL of its intention not to perform the 20-year contract
it signed in September 2013. This 20-year agreement covers port
services, notably the storage and trans-shipment of mineral
commodities produced at two Vale mines located in the Corumba
region of Brazil. It is a "take or pay" contract, which contains
a minimum guaranteed volume of 4 million tons, representing an
EBITDA of $35 million per annum. NSAL believes that Vale's
position is without merit and states that it would take legal
action if Vale were to fail to perform the contract. However, if
the contract were to eventually not be performed or to be
renegotiated, this could have a material effect on NSAL's cash
flows.
Vale is currently NSAL's largest customer, accounting for around
28% of its 2015 revenues. Low prices for iron ore and base metals
have pressured Vale's revenues and cash flows. Iron ore and
manganese ore volumes at Vale's Corumba mines have declined by 18%
between 2014 and 2015 with an accelerated decline in Q4 2015 (-40%
against Q4 2014). In light of the recent production level
reduction, Moody's believes that there is a heightened risk of the
existing contracts not being all renewed at expiry.
Moody's estimates that NSAL's liquidity profile will remain
adequate in 2016, supported by (1) a cash balance of $82 million
as at 31 December 2015; and (2) projected cash flow from
operations of around $40 million in 2016. In 2016, NSAL has large
capex requirements of around $100 million, which it will partially
finance through a $36 million seller's credit. These capex
requirements mostly relate to the extension of the Nueva Palmira
port.
RATIONALE FOR THE NEGATIVE OUTLOOK
The negative outlook reflects the risk of further pressure on
NSAL's rating if its parent company's liquidity further weakens or
if a large part of Vale's contribution to NSAL's cash flows is
lost.
WHAT COULD CHANGE THE RATING -- UP/DOWN
Upward pressure could be exerted on the rating of NSAL if the
rating of Navios Holdings is upgraded and, at the same time, NSAL
maintains debt/EBITDA below 6.0x and (fund from operations +
interest)/interest above 2.0x, together with an adequate liquidity
profile.
Downward pressure could be exerted on the rating of NSAL if (1)
its liquidity profile weakens materially; (2) if Navios Holdings
were to solicit NSAL for support or (3) if Moody's was to
downgrade further the rating of Navios Holdings.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Global
Shipping Industry published in February 2014.
Navios South American Logistics Inc. is one of the principal
logistics companies operating in the Hidrovia Region river system,
which flows through Brazil, Bolivia, Uruguay, Paraguay and
Argentina. The company's operations comprise waterborne
transportation services for liquid and dry cargoes, as well as
port, storage and related services. In 2015, NSAL generated
revenues of $251 million and EBITDA of $80 million (as reported by
the company).
***********
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.
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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
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Information contained herein is obtained from sources believed to
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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
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