/raid1/www/Hosts/bankrupt/TCRLA_Public/161010.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, October 10, 2016, Vol. 17, No. 200
Headlines
A N T I G U A & B A R B U D A
LIAT: Says ATRs Were the Best Choice Despite Wind Challenges
A R G E N T I N A
BANCO HIPOTECARIO: S&P Assigns 'B-' Rating on Cl. XL Unsec. Notes
B R A Z I L
ABJ TRADING: Brazilian Case Recognized as Foreign Main Proceeding
CORDOBA PROVINCE: S&P Affirms 'B-' Currency Ratings
LATAM AIRLINES: Fitch Rates Proposed US$500MM Notes 'B+'
LATAM FINANCE: S&P Assigns 'B+' Rating on Proposed Sr. Notes
MAGNESITA REFRATARIOS: Fitch Affirms 'BB' IDR, Outlook Stable
MAGNESITA REFRATARIOS: Fitch Affirms 'BB' IDR, Outlook Stable
C A Y M A N I S L A N D S
AHL ALPHA: Members' Final Meeting Set for Oct. 19
FCA CATALYST: Members' Final Meeting Set for Oct. 19
GLG ASIAN: Members' Final Meeting Set for Oct. 19
GLG EMERGING: Members' Final Meeting Set for Oct. 19
GLG EMERGING PORTFOLIO: Members' Final Meeting Set for Oct. 19
GLG GEMINI: Members' Final Meeting Set for Oct. 19
GLG GLOBAL: Members' Final Meeting Set for Oct. 19
GLG GLOBAL MASTER: Members' Final Meeting Set for Oct. 19
KBC CONVERTIBLES: Members' Final Meeting Set for Oct. 19
PLATINUM PARTNERS: Court Enters Wind-Up Order
PLATINUM PARTNERS LP: Court to Hear Wind-Up Petition on Oct. 27
RMF MULTI-MANAGER: Members' Final Meeting Set for Oct. 19
D O M I N I C A N R E P U B L I C
DOMINICAN REP: 50% Customs Tax of 'Great Concern' for Exporters
E L S A L V A D O R
EL SALVADOR: S&P Puts 'B+' Sovereign Rating on CreditWatch Neg.
J A M A I C A
CARIBBEAN CEMENT: Chris Dehring Resigns From Board
P U E R T O R I C O
EDGARDO ACEVEDO: Unsecureds to Get 6% Recovery Under Ch. 11 Plan
KAMA MANAGEMENT: Case Summary & 4 Unsecured Creditors
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Extends Line Of Credit for JV in Repsol SA
X X X X X X X X X
LATIN AMERICA: Bucking Global Protectionist Trend, Ministers Say
* BOND PRICING: For the Week From Oct. 3 to Oct. 7, 2016
- - - - -
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A N T I G U A & B A R B U D A
===============================
LIAT: Says ATRs Were the Best Choice Despite Wind Challenges
------------------------------------------------------------
The Daily Observer reports that as LIAT, operating as Leeward
Islands Air Transport, prepares to add two new ATRs to its
existing fleet of nine, the carrier's executive has said that
despite being criticized for having difficulty in strong windy
conditions, the model was the best choice due to its overall
versatility.
Liat's Acting Chief Executive Officer Julie Reifer-Jones said the
company will have 11 of the models by the end of October,
according to The Daily Observer.
The report relays Ms. Reifer-Jones said that while the company did
consider larger aircraft such as the Q-400, larger models would
have been a poor choice to land at some of the region's smaller
runways and airports.
"Our choice was based on what was available in the market . . . .
There was another model -- the Q-400 -- which we did look at . . .
but as a larger plane, it would not have been able to service some
of the smaller territories. Also it would have been more efficient
on some of the longer trips but not the shorter trips," the acting
CEO said, the report notes.
In the interview with OBSERVER media, Reifer Jones explained that
the company insisted on turboprop aircraft as opposed to other
engine types, "because of the size of the region and the size of
the population," the report discloses.
The acting CEO also said that cautious regulatory standards put in
place by the Eastern Caribbean Civil Aviation Authority (ECCAA)
were part of the reason that pilots could not land in high winds
in places such as St Vincent and Dominica, the report says.
"When there is a new aircraft type you have to go through a
process with the regulator . . . . in terms of what they feel
comfortable that you can do. Our regulator felt that they wanted
to have more experience built up by the crew in handling the new
aircraft type before they allowed us to transition.
"We are in discussions . . . . and hopefully some time in the
future we will get that approval to land at higher wind speeds,"
she said.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 8, 2015, the Daily Observer reports that LIAT, operating as
Leeward Islands Air Transport, is attempting to lose excess
baggage as part of measures to make the carrier "a smaller airline
in 2015." In a document, signed by Director of Human Resources
Ilean Ramsey, eligible employees were asked to opt to apply for
voluntary separation or early retirement packages to avoid being
made redundant, according to The Daily Observer.
TCRLA reported on Dec. 2, 2014, citing Caribbean360.com, that
chairman of the shareholder governments of the financially
troubled regional airline LIAT, Dr. Ralph Gonsalves said while he
is unaware of the details regarding any possible retrenchment of
employees, the airline needs to deal with its high cost of
operations.
The TCR-LA on March 10, 2014, citing Caribbean360.com, reported
that LIAT said it will take "decisive action" to deal with
unprofitable routes as the Antigua-based airline seeks to make its
operations financially viable.
On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday,
reported that there's much upheaval at the highest levels of
LIAT -- the Board and the Executive. Following the sudden
resignation of Chief Executive Officer Captain Ian Brunton, David
Evans replaced Mr. Brunton as chief executive officer
=================
A R G E N T I N A
=================
BANCO HIPOTECARIO: S&P Assigns 'B-' Rating on Cl. XL Unsec. Notes
-----------------------------------------------------------------
S&P Global Ratings said that it assigned its 'B-' issue-level
rating on Banco Hipotecario S.A.'s class XL senior unsecured notes
due in 2020 for the equivalent amount in Argentine pesos of up to
$400 million.
The rating on the notes is the same as the long-term issuer credit
rating on Banco Hipotecario, and reflects S&P's view that the
notes will rank pari passu with the bank's other senior unsecured
debt. S&P expects the bank to use the proceeds to finance growth.
This issuance would account for about 10% to 15% of the bank's
funding base as of June 2016. The increased participation of
nondeposit funding over the total funding base of the bank
observed since the last quarter of 2015 is a factor already
incorporated in its funding profile assessment. In this sense, as
of June 2016, nondeposit funding accounted for 35% of the total
base, compared with 27% as of December 2015 and 20% by year-end
2014.
The ratings on Banco Hipotecario continue to reflect its adequate
business position as a midsize bank in Argentina, moderate capital
and earnings based on S&P's risk-adjusted capital ratio
projection, adequate risk position with operations focused on
lending activities and healthy assets quality metrics, below-
average funding profile taking into account a higher proportion of
nondeposit funding compared with peers, and a somewhat higher
deposit concentration (but decreasing), and adequate liquidity
that's in line with those of the bank's peers and incorporating
characteristics of Argentina's financial system.
RATINGS LIST
Banco Hipotecario S.A.
Issuer credit rating B-/Stable/--
Rating Assigned
Banco Hipotecario S.A.
Class XL due 2020 B-
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B R A Z I L
===========
ABJ TRADING: Brazilian Case Recognized as Foreign Main Proceeding
-----------------------------------------------------------------
The High Court of Justice, Chancery Division, has entered an order
recognizing the Brazilian proceeding of ABJ Trading LLP as a
foreign main proceeding in accordance with the UNCITRAL Model Law
on Cross-Border Insolvency.
Accordingly, by virtue of the order entered Aug. 9, 2016, it is
ruled that:
(a) No step may be taken to enforce any mortgage, charge, lien
or other security over ABJ's property except with the
consent of the foreign representative or the permission of
the Court
(b) No step may be taken to repossess goods in ABJ's possession
under a hire-purchase agreement except with the consent of
the Foreign Representative or the permission of the Court
(c) Subject that the Holco Proceeding may not be stayed, no
legal process may be instituted or continued against ABJ or
its property except with the consent of the Foreign
Representative or permission of the Court.
(d) An administrative receiver of ABJ may not be appointed.
(e) No winding up petition may be presented in respect of ABJ
except with the consent of the Foreign Representative or the
permission of the Court, and no order may be made for the
winding up of ABJ
(f) Subject to certain exceptions, ABJ's right to transfer,
encumber or otherwise dispose of any of its assets is not
suspended.
The Order applies only in Great Britain and does not have extra-
territorial effect.
The Debtor does not conduct any business in England.
The Debtor's foreign representative is:
Valdoir Slapak
Grupo Bom Jesus
Avenida Presidente Joao Goulart
Vila Aurora, Rondonopolis
Mato Grosso, Brazil
78740-034
CORDOBA PROVINCE: S&P Affirms 'B-' Currency Ratings
---------------------------------------------------
S&P Global Ratings said that it affirmed its 'B-' foreign and
local currency ratings on the Argentine Province of Cordoba. The
rating outlook remains stable.
"Our 'B-' foreign and local currency ratings and 'b-' stand-alone
credit profile (SACP) on Cordoba reflect the province's individual
credit profile and the institutional framework it operates in,"
said S&P Global Ratings' credit analyst Marina Neves. "The SACP
is a means of assessing the intrinsic creditworthiness of Cordoba
under the assumption that there is no rating cap."
Cordoba, like all local and regional governments (LRGs) in
Argentina, operates under a very volatile and underfunded
institutional framework. Cordoba's weak economy, very weak
budgetary flexibility, weak liquidity, and high contingent
liabilities also constrain the ratings. On the other hand, the
province's average budgetary performance and low debt burden
support its creditworthiness.
The stable rating outlook on Cordoba mirrors S&P's outlook on the
sovereign. "The outlook reflects renewed dialogue between the
LRGs and the federal government about tackling the provinces'
fiscal and economic challenges in over the next six-12 months,"
said Ms. Neves. Given that S&P don't believe Cordoba could meet
the conditions to have a higher rating than the sovereign, it
would only consider raising its ratings on the province during the
next 12 months if S&P was to raise its foreign and local currency
ratings, and S&P's transfer and convertibility assessment (T&C),
on Argentina. Such an upgrade would have to be accompanied by the
province improving its weak long-term capital and financial
planning, and debt and liquidity management; or improving its
budgetary flexibility or demonstrating consistently stronger
budgetary performance in the form of operating surpluses. At the
same time, structural improvements in the institutional framework
in which the province operates could help improve its
creditworthiness. On the other hand, S&P could lower its ratings
on Cordoba during the next 12 months if Argentina's T&C assessment
weakens, if S&P lowers the sovereign local or foreign currency
ratings, or if S&P perceives that the province's financial
commitments are unsustainable or that it faces a near-term payment
crisis. However, S&P don't foresee this scenario materializing
during the next 12 months.
LATAM AIRLINES: Fitch Rates Proposed US$500MM Notes 'B+'
--------------------------------------------------------
Fitch Ratings has assigned an expected rating of 'B+(EXP)/RR4' to
LATAM Airlines Group S.A.'s proposed unsecured notes to be issued
through its fully owned subsidiary LATAM Finance Limited. The
notes will be fully guaranteed by LATAM. The target amount for
the proposed transaction is USD500 million. The total amount and
tenor for the proposed issuance will depend on market conditions.
Proceeds from the proposed issuance are expected to be used
primarily to refinance debt and for general corporate purposes.
Fitch currently rates LATAM's Long-term Issuer Default Rating
(IDR) 'B+' with a Negative Outlook.
The Negative Outlook reflects LATAM's weaker than expected
consolidated operational performance during 2015. Fitch expects
the company's key credit metrics, primarily operating margins,
leverage, and FCF generation, will remain pressured over 2016 -
2017. Fitch believes that prevailing unfavourable economic
conditions in Latin America, particularly in Brazil, will make it
more difficult for the company to execute deleveraging during
2016 - 2017. The Negative Outlook also considers LATAM's higher
leverage and weaker operational performance versus its global
peers within the rating category.
LATAM's ratings incorporate its diversified business model,
important regional market position, and adequate liquidity, which
are tempered by its high gross adjusted leverage and ongoing weak
operational performance. Despite the company's solid business
position in the domestic and international Brazilian market, the
company has failed to mitigate volatility in its operational
results within these markets through the economic cycle. Brazil's
subdued macroeconomic conditions will continue to challenge the
company's operational performance during 2016-2017.
The ratings of LATAM and TAM and their subsidiaries take into
account the credit linkage between the two companies, which stems
from their operational, strategic, and legal ties. These links
are reflected in the existence of cross-guarantee and cross-
default clauses related to the financing of aircraft acquisitions
for both LATAM and TAM.
KEY RATING DRIVERS
Traffic, International/SSC Segments Counterbalance Brazil:
The company's traffic trends during the first eight months of 2016
(8M2016) indicate that boarded passenger levels in its
International and Spanish-speaking countries (SSC) segments are
compensating for the decline in the Brazilian domestic segment's
traffic. LATAM's total consolidated boarded passengers decreased
by -1.3% during 8M2016 against 2015's same period. LATAM's SSC
segment increased its total boarded passengers by 6.8% during
8M2016. The international segment increased its boarded
passengers by 7.5% during 8M2016. The Brazilian domestic segment
declined by 10.4%, during the same period. Fitch expects SSC and
international traffic to continue performing well,
counterbalancing Brazilian domestic traffic contraction to result
in a low-single-digit increase in the company's 2016 total traffic
over the 2015 level.
Yields Recovery Key for Credit Profile:
Declining yields have been one of the key factors affecting
LATAM's total revenues and operational margin during the last six
quarters ended in June 30, 2016. Fitch views the company's
capacity to improve its passenger average yield as the key factor
to sustain better levels of cash flow generation during 2016-2017.
LATAM's net revenues declined by 18.8% and 14.7% during 2015 and
the first six months of 2016, respectively, over the prior year's
same period. This result was primarily driven by sharp 21.1% and
17.4% declines in its consolidated average passenger yields during
each period. The declining trend in the company's average yield
in 2015 is expected to continue during 2016 but at a slower pace
than the 2015 level. Fitch projects the company's consolidated
average passenger yield to decline by 8% to 10% during 2016
against the prior year. This assumption considers LATAM's
consolidated passenger yields to reach some improvement during the
second half of 2016.
Capacity Adjustments and Cost Control Incorporated, 2016 EBIT
margin at 6.5%:
LATAM is expected to counterbalance lower revenues by focusing on
capacity management and cost control during 2016. LATAM plans
capacity increases in 2016 of 3%-5% in the international segment
and 6%-8% in the SSC segment, along with a planned capacity
decrease at 12% in the Brazilian domestic segment. The cargo
segment should see a contraction in the range of 2%-4%. LATAM's
strategy to improve its operational performance in 2016 is
oriented to reduce costs offsetting lower revenues. As a result
of lower fuel prices and the company's cost reduction initiatives,
LATAM was able to reduce its total operational CASK by 20.4%
during 2015. This trend is expected to continue in 2016. Fitch
expects LATAM's net revenues to decline in 2016 due to flat levels
of consolidated boarded passengers and lower yields. Under its
base case, Fitch expects LATAM to improve its cost structure per
capacity unit and exhibit a 6.5% EBIT margin.
High Adjusted Leverage of 6.5x:
LATAM's adjusted gross leverage metric is high and remains weak
for the rating category. The company's increase in its adjusted
gross leverage during 2015 primarily reflects its limited capacity
to improve the operational performance during last year. Although
Fitch's rating case is assuming the company will improve its
operational performance during 2016, this is not expected to
result in a material reduction in the company's adjusted gross
leverage, with levels still above 6x. LATAM's adjusted gross
leverage, measured as total adjusted debt/EBITDAR, was 6.5x at
June 30, 2016. The company's total adjusted debt was USD12.8
billion at June 30, 2016. This debt includes USD9 billion in on-
balance-sheet debt and USD3.8 billion in off-balance-sheet
obligations related to operating leases with combined rental
payments of around USD540 million in LTM June 2016.
Adequate Liquidity, Capital Increase Factored:
Fitch views the company's liquidity position as adequate for the
rating category. At June 30, 2016, the company had cash of
USD1.2 billion and no material levels of unused committed credit
lines (CCL) or revolving credit facilities (RCF), while its short-
term debt was USD1.8 billion. This level of liquidity, measured
as total cash and marketable securities plus unused committed
credit lines over LTM revenues, represents 13.6% of the company's
revenues for LTM June 30, 2016. This ratio is expected to be
around 17% to 13% during 2016. The announced agreement for Qatar
Airways to acquire up to 10% of LATAM's total shares in connection
with a capital increase is viewed as a positive for the company's
liquidity.
Considering the announced capital increase, expected to be fully
executed during the fourth quarter of 2016, the company's
liquidity is expected to slightly improve to levels around
USD1.4 billion by Dec. 31, 2016. Further, LATAM plans to have
USD325 million available in unused CCL and/or RCF by Dec. 31,
2016. In addition, LATAM faces debt amortizations of USD1.5
billion, USD1 billion, and USD1.2 billion during 2016, 2017, and
2018, respectively. Furthermore, the company's coverage ratio,
measured as EBITDAR/(Interest Exp. + Rents), was 2.1x in LTM
June 2016 and is expected to remain at this level during 2016-
2018.
Important Adjustments in 2016-2018 Fleet Capex:
During 2015, the company's free cash flow (FCF) generation was
negative USD246 million, resulting in FCF margin (LTM FCF/LTM
revenues) of negative 2.4%. The 2015 FCF calculation reflects
USD1.3 billion, USD1.6 billion, and USD35 million in cash flow
from operations, net capex, and paid dividends, respectively.
Fitch views as a positive the company's efforts to reduce its
capex levels as a key factor to improve free cash flow generation.
During March 2016, LATAM reached a USD2.9 billion reduction in
fleet commitments for 2016 - 2018; this is in line with the
company's previously announced plans to achieve a 40% reduction in
its fleet commitments for the period. LATAM maintains a capital
expenditure (capex) plan - including fleet, non-fleet capex, pre-
delivery payments; and, assets sales - that calls for levels of
USD771 million, USD844 million, and USD842 million during 2016,
2017, and 2018, respectively. Fitch is projecting the company's
FCF margin to be neutral to slightly negative in 2016 and trending
to slightly positive levels during 2017-2018.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for LATAM include:
-- 2016 total transported passengers to increase around 3.4%;
-- 2016 consolidated yield to decline by high single digits;
-- 2016 net revenues to decline around 8%;
-- 2016 EBIT margin approximately 6.5%;
-- 2016 gross adjusted leverage, measured as total adjusted
debt to EBITDAR, around 6.3x;
-- 2016 Coverage ratio, EBITDAR/(Net Interest Expense + Rents),
around 2.33x;
-- 2016 Liquidity, measured as readily available cash plus
unused committed credit facilities over LTM net revenues,
around 13%;
-- 2016 Net Capex levels around USD1.2 billion;
-- 2016 FCF generation neutral to slightly negative at around
USD200 million.
RATING SENSITIVITIES
Considerations that could lead to a negative rating action (Rating
or Outlook):
-- Sustained negative free cash flow;
-- Liquidity, cash/LTM revenues, consistently below 10%;
-- Gross adjusted leverage consistently above 5.5x;
-- EBIT margin consistently below 7%;
-- Coverage ratio, measured as total EBITDAR/(Interest Expenses
+ Rents), consistently below 2.25x.
Considerations that could lead to a positive rating action (Rating
or Outlook):
Fitch may take a positive rating action if a combination of these
factors takes place:
-- Liquidity, cash/LTM revenues, consistently above 15%;
-- Gross adjusted leverage consistently approaching 4.5x;
-- Neutral to positive FCF generation;
-- Coverage ratio, measured as the total EBITDAR/(Interest
Expenses + Rents), consistently above 2.5x;
-- EBIT margin moving to 8%.
LATAM Finance Limited:
Fitch has assigned an expected rating of 'B+/RR4' to LATAM's
proposed unsecured notes to be issued through its fully owned
subsidiary LATAM Finance Limited. The notes will be fully
guaranteed by LATAM.
Fitch currently rates LATAM and TAM S.A. as:
LATAM Airlines Group S.A.:
-- Long-term Issuer Default Rating (IDR) 'B+';
-- National Equity Rating at 'Primera Clase Nivel 3 (cl)';
-- USD500 million senior unsecured note due 2020 'B+/RR4'.
TAM S.A.
-- Long-term IDR 'B+';
-- Local currency IDR 'B+';
-- National long-term rating 'A-(bra)'.
Tam Linhas Aereas S.A.
-- Long-term IDR 'B+';
-- Local currency IDR 'B+';
-- National long-term rating 'A-(bra)'.
Tam Capital Inc.
-- USD300 million senior unsecured note due 2017 'B+/RR4'.
Tam Capital Inc. 3
-- USD500 million senior unsecured note due 2021 'B+/RR4'.
The Rating Outlook is Negative.
LATAM FINANCE: S&P Assigns 'B+' Rating on Proposed Sr. Notes
------------------------------------------------------------
S&P Global Ratings assigned a 'B+' issue-level rating to LATAM
Finance Ltd.'s proposed senior unsecured notes due 2024. The
issue of $500 million will have a three-year amortization, in
2022, 2023, and 2024. The rating on the proposed issue reflects
the full and unconditional guarantee of holding company Latam
Airlines Group S.A. (LATAM; BB-/Negative/--). The proceeds from
the issue will be used for liability management with senior
unsecured bonds at TAM S.A. (BB-/Negative/--).
The proposed issue rating is currently one notch below S&P's 'BB-'
corporate credit rating on LATAM, reflecting the subordination of
the senior unsecured notes to the group's secured debt, which
includes financial and operating leases. S&P expects the issue
will have no impact on the company's leverage metrics, but will
allow for some improvement in its debt amortization profile and a
slight reduction in interest charges over the medium term.
RATINGS LIST
Latam Airlines Group S.A.
Corporate Credit Rating BB-/Negative/--
New Rating
LATAM Finance Ltd.
Senior Unsecured B+
MAGNESITA REFRATARIOS: Fitch Affirms 'BB' IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed the foreign and local currency Issuer
Default Ratings of Magnesita Refratarios S.A. at 'BB' and its
National Scale Ratings at 'AA-(bra)'. The Rating Outlook is
revised to Stable from Negative.
KEY RATING DRIVERS
The Outlook revision to Stable reflects an improvement in
Magnesita's leverage. Fitch's base case indicates that the
company's net debt to EBITDA ratio will reach 3.4x in 2016, with a
decline to around 3.1x in 2017. These ratios compare with 4.8x in
2015. Improved global competitiveness and profitability gains
primarily from a weaker currency, lower capex and interest
payments are expected to enhance free cash flow generation (FCF).
Cash generated by the sale of its talc business (estimated USD45
million, on net basis) should also help to reduce leverage during
2017.
The sluggish steel industry remains a challenge for Magnesita as
it tries to grow its client base and operating cash flow. The
company will remain reliant upon gains in North America market
share and improved penetration of new markets to offset the weak
performance of its Brazilian operations. Positively, over the
last few years Magnesita has increased its geographic footprint,
reducing its exposure to Brazil for approximately 30% of revenues.
The ratings include Fitch's expectation that Magnesita will
continue to seek to its conservative and proactive financial
policy, underpinned by adequate cash holdings and a manageable
debt schedule amortization in order to avoid refinancing risks.
Solid Business Profile; Vertical Integration
Magnesita's ratings are supported by its low-cost and vertically
integrated business model, long-life mine reserves, and its
position as the world's third largest refractory manufacturer in a
highly fragmented market. The company's core business is
refractory solutions, comprising 87% of BRL3.6 billion in revenues
during the last 12-month period (LTM) ended on June 30 2016,
followed by its services business line (6%), and its minerals
segment (6%). The company has strong long-term relationships with
customers throughout the world, including the largest Brazilian
steel producers, as well as leading Brazilian and international
cement producers.
Increasing Geographical Diversification
Magnesita is highly exposed to the cyclical steel industry, which
accounted for 73% of consolidated revenues in June 2016. Over the
past several years, the company has reduced its dependence on the
Brazilian steel industry to a projected 27% of revenues in 2016
from 36% in 2012. Fitch expects this percentage to fall to a
range of 20% to 25% in the medium term. Magnesita's market share
for the Brazilian steel market is around 70%, but in other regions
with improving steel industry prospects, such as the U.S., it has
greater growth potential. Magnesita currently has an estimated
U.S. market-share of around 20%.
Stable Margins
Despite weak Brazilian steel volumes and negative industry trends,
Magnesita has been able to maintain relatively stable EBITDA
margins. During the last 12 months, the depreciation of the
Brazilian Real (BRL) bolstered the company's profitability and
improved Magnesita's competitiveness in the international market.
Fitch expects Magnesita's EBITDA to trend around 14%-15% during
the next three years, which it is still sound compared to its
peers which exhibit average EBITDA margins of around 12%.
Improved Operating Cash Flow
Magnesita's FCF going forward is expected to be benefited from
lower capex due to the conclusion of the SAP roll-out, lower
interest expenses as result of liability management, and more
efficient working capital management. Under Fitch's base case
scenario, Magnesita's CFFO, EBITDA and FCF for 2016 are expected
to be approximately BRL278 million, BRL546 million and BRL57
million, respectively. These figures compare positively with
BRL189 million, BRL462 million of CFFO and EBITDA, respectively
and a negative FCF of BRL50 million. Fitch expects the company's
capex to trend closer to around BRL220 million in 2016, down from
BRL240 million in 2015.
Deleverage Trend
Stronger EBITDA generation, as a result of profitability gains
from FX, has been supporting a deleverage trend for Magnesita. As
of June 30, 2016, the company's total and net adjusted debt-to-LTM
EBITDA ratios were 5.1x and 3.6x, respectively, compared to 7.5x
and 5.0x by year-end 2014. Fitch's base case indicates that its
net debt to EBITDA ratio will reach 3.4x in 2016, with a decline
to around 3.1x in 2017. Per Fitch's 2017 forecast, Magnesita is
expected to receive BRL148 million from the sale of its Talc
Business.
KEY ASSUMPTIONS
-- Low-digit revenue growth from 2016 onward;
-- Softer but still resilient EBITDA margins - EBITDA margin in
the 14%-15% range);
-- Capex at around BRL220 million in 2016, slightly decline to
BRL207 million in 2017 and BRL230milion in the next two
years;
-- Dividends at 25% from 2017 onwards;
-- Cash balance remains sound compared to short-term debt;
-- Reserve life replenished annually;
-- No large-scale M&A activity.
RATING SENSITIVITIES
Positive: Future developments that may, individually or
collectively, lead to a positive rating action include:
-- An upgrade is unlikely in the medium term due to sluggish
perspectives for the global steel industry and Magnesita's
still weak operating cash flow basis compared to issuers in
the 'BB' rating.
Negative: Future developments that may, individually or
collectively, lead to a negative rating action:
-- Prolonged downturn in the cyclical steel and cement markets
that hampers production volumes globally more than expected;
-- Market share erosion in Brazilian market;
-- EBITDA margins declining below 14% on a sustained basis;
-- Failure to reduce net adjusted leverage below 3.5x;
-- Deterioration of adequate liquidity compared to short-term
debt, leading to refinancing risk exposure;
-- Large debt-funded M&A acquisition that adversely impacts
Magnesita's capital structure on a sustained basis.
LIQUIDITY
Magnesita's liquidity is adequate. As of June 30, 2016, the
company had BRL2.6 billion of debt, of which BRL536 million is due
in the short term, while cash and marketable securities was solid
at BRL752 million. The company's cash position is enough to meet
all current debt maturities through 2017. Fitch expects it to
access the credit market during 2017 in order to refinance
maturities coming due in 2018 and 2019. Positively, Magnesita has
demonstrated proven access to export credit lines that could also
be an alternative source of future funding. The company's
inability to carefully avoid refinancing risk within the near
term, may pressure its ratings.
FULL LIST OF RATING ACTIONS
Fitch has affirmed these ratings:
Magnesita Refratarios S.A.
-- Foreign currency long-term IDR at 'BB';
-- Local currency long-term IDR at 'BB';
-- National long-term rating at 'AA-(bra)';
-- Local Debentures issuance at 'AA-(bra)'.
Magnesita Finance Ltd.
-- Senior unsecured ratings at 'BB'.
The Rating Outlook is revised to Stable from Negative.
MAGNESITA REFRATARIOS: Fitch Affirms 'BB' IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Magnesita Refratarios S.A. Long-Term
Foreign- and Local-Currency Issuer Default Rating at 'BB' and
National Scale Ratings at 'AA-(bra)' following the announcement
that RHI AG (RHI) and the controlling shareholders of Magnesita
have reached an agreement to combine their operations, creating a
leading global refractory company. The Rating Outlook is Stable.
KEY RATING DRIVERS
Fitch views this proposed transaction as positive for Magnesita's
business profile as it would enhance the company's market position
and geographic and product diversification. These factors should
improve the company's pricing position in the very fragmented
refractory industry and allow it to better withstand downturns in
the steel cycle. Production costs and overhead costs should also
decrease due to synergies from a merger of the second and third
largest companies in the industry.
The exposure of a combined company to the steel industry, with
expected revenues projected to remain around 70%, remains a credit
constraint, as is a slight uptick in leverage due to the
additional debt needed by RHI to fund the transaction. As of
June 30, 2016, on proforma basis, including a complete tender by
the minority shareholders of Magnesita, the merged entity's
consolidated net leverage is projected by Fitch to be 3.9x. This
compares with Fitch's forecasted stand-alone net leverage for
Magnesita to be 3.4x in 2016 and 3.1x in 2017.
The transaction will be funded by a mix of equity and debt. RHI
will acquire a controlling stake of at least 46%, but no more than
50% plus one share of the entire share capital in Magnesita, for
EUR 118 million and 4.6 million new shares to be issued by RHI
Magnesita. RHI will also follow up with a complete tender offer
to Magnesita's minority shareholders in an amount of around BRL814
million (EUR279 million). The transaction is expected to close by
end of 2017, subject to shareholders and certain regulatory
approvals, and other customary conditions. Both companies will
remain completely separate and independent until then.
KEY ASSUMPTIONS
-- Magnesita will continue to operate and search for funding on
a stand-alone basis, with no credit support from RHI.
-- Low-digit revenue growth from 2016 onward;
-- Softer but still resilient EBITDA margins - EBITDA margin in
the 14% - 15% range);
-- Capex at around BRL220 million in 2016, with a slight
decline to BRL207 million in 2017 and BRL230milion in the
next two years;
-- Dividends at 25% from 2017 onwards;
-- Cash balance remains sound compared to short-term debt;
-- Reserve life replenished annually;
-- No large-scale M&A activity.
RATING SENSITIVITIES
Positive: Future developments that may, individually or
collectively, lead to a positive rating action include:
-- An upgrade is unlikely in the medium term due to the
sluggish outlook for the global steel industry and
Magnesita's still weak operating cash flow basis compared to
issuers in the 'BB' rating.
Negative: Future developments that may, individually or
collectively, lead to a negative rating action:
-- Prolonged downturn in the cyclical steel and cement markets
that hampers production volumes globally more than expected;
-- Market share erosion in Brazilian market;
-- EBITDA margins declining below 14% on a sustained basis;
-- Failure to reduce net adjusted leverage below 3.5x;
-- Deterioration of adequate liquidity compared to short-term
debt, leading to refinancing risk exposure;
-- Large debt-funded M&A acquisition that adversely impacts
Magnesita's capital structure on a sustained basis.
LIQUIDITY
Magnesita's liquidity is adequate. As of June 30, 2016, the
company had BRL2.6 billion of debt, of which BRL536 million is due
in the short term, while cash and marketable securities was solid
at BRL752 million. The company's cash position is enough to meet
all current debt maturities through 2017. Fitch expects the
company to access the credit market during 2017 in order to
refinance maturities coming due in 2018 and 2019. Positively,
Magnesita has demonstrated proven access to export credit lines
that could also be an alternative source of future funding. The
company's inability to carefully avoid refinancing risk within the
near term, may pressure its ratings.
FULL LIST OF RATING ACTIONS
Fitch has affirmed these ratings:
Magnesita Refratarios S.A.
-- Long-Term Foreign Currency IDR at 'BB';
-- Long-Term Local Currency IDR at 'BB';
-- National Long-Term rating at 'AA-(bra)';
-- Local Debentures Issuance at 'AA-(bra)'.
Magnesita Finance Ltd.
-- Senior unsecured ratings at 'BB'.
The Rating Outlook is Stable.
==========================
C A Y M A N I S L A N D S
==========================
AHL ALPHA: Members' Final Meeting Set for Oct. 19
-------------------------------------------------
The members of AHL Alpha Mac 32 Ltd. will hold their final meeting
on Oct. 19, 2016, at 10:15 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
FCA CATALYST: Members' Final Meeting Set for Oct. 19
----------------------------------------------------
The members of FCA Catalyst Master Fund SPC will hold their final
meeting on Oct. 19, 2016, at 10:45 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG ASIAN: Members' Final Meeting Set for Oct. 19
-------------------------------------------------
The members of GLG Asian Equity Long-Short Offshore Fund Ltd. will
hold their final meeting on Oct. 19, 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:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG EMERGING: Members' Final Meeting Set for Oct. 19
----------------------------------------------------
The members of GLG Emerging Markets Master Fund Ltd. will hold
their final meeting on Oct. 19, 2016, at 10:30 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG EMERGING PORTFOLIO: Members' Final Meeting Set for Oct. 19
--------------------------------------------------------------
The members of GLG Emerging Markets Income Portfolio II Ltd. will
hold their final meeting on Oct. 19, 2016, at 11:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG GEMINI: Members' Final Meeting Set for Oct. 19
--------------------------------------------------
The members of GLG Gemini Emerging Currency and Fixed Income Fund
will hold their final meeting on Oct. 19, 2016, at 10:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG GLOBAL: Members' Final Meeting Set for Oct. 19
--------------------------------------------------
The members of GLG Global Rates Fund will hold their final meeting
on Oct. 19, 2016, at 10:30 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG GLOBAL MASTER: Members' Final Meeting Set for Oct. 19
---------------------------------------------------------
The members of GLG Global Energy Master Fund Ltd. will hold their
final meeting on Oct. 19, 2016, at 10:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
KBC CONVERTIBLES: Members' Final Meeting Set for Oct. 19
--------------------------------------------------------
The members of KBC Convertibles Mac 28 Ltd. will hold their final
meeting on Oct. 19, 2016, at 10:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
PLATINUM PARTNERS: Court Enters Wind-Up Order
---------------------------------------------
The Grand Court entered an order, on Aug. 23, 2016, to wind up the
operations of Platinum Partners Value Arbitrage Fund
(International) Limited.
Matthew Wright and Christopher Kennedy of RHSW were appointed as
liquidators.
The Liquidators can be reached at:
Matthew Wright
Christopher Kennedy
RHSW (Cayman) Limited
Windward I, Regatta Office Park
West Bay Road, Grand Cayman KYI-1103
P.O. Box 897
Cayman Islands
PLATINUM PARTNERS LP: Court to Hear Wind-Up Petition on Oct. 27
---------------------------------------------------------------
A petition to wind up the operations of Platinum Partners value
Arbitrage Fund L.P. will be heard before the Grand Court of Cayman
Islands on Oct. 27, 2016, at 10:00 a.m.
The petition was presented by the company, acting by its general
partner, Platinum Management (NY) LLC of 250 West 55th Street,
14th Floor, New York, NY 10019-3310, U.S.A.
The company's provisional liquidators are:
Matthew wright
Christopher Kennedy
RHSW (Cayman) Limited
Windward I, 2nd Floor
Regatta Office Park
P.O. Box 897 Grand Cayman, KYI-1103
Cayman Islands
RMF MULTI-MANAGER: Members' Final Meeting Set for Oct. 19
---------------------------------------------------------
The members of RMF Multi-Manager Fund Ltd. will hold their final
meeting on Oct. 19, 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:
Ms. Claire Loebell
c/o Steve Bull
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REP: 50% Customs Tax of 'Great Concern' for Exporters
---------------------------------------------------------------
Dominican Today reports that Dominican Exporters Association
(Adoexpo) President Alvaro Sousa expressed "great concern" on the
proposal in the 2017 Budget bill in which Customs charges a 50%
ITBI (VAT) tax on raw materials, machinery and capital used by the
industrial sector.
"This measure would eliminate the facility that allows rational
industries to pay the added value tax at the end of the production
process, and makes the Dominican export sector uncompetitive by
limiting the cash flow of exporting companies, which would be
undercapitalized by such a measure," the export leader said,
according to Dominican Today.
President Sousa said Adoexpo will ask President Danilo Medina to
strike that provision from the budget bill, "which would have a
negative impact on the export sector of our country," the report
notes.
"We must preserve the export sector's competitiveness as an engine
of the national economy and the social development of our
country," President Sousa said and cited a statement from several
associations that the proposal "would risk the investment climate,
domestic production and exports and job creation in the country,"
the report relays.
"We expect the same to be removed from the bill of the budget as
per commitments of the Government headed by President Danilo
Medina, Congress and industry," the report adds.
As reported in the Troubled Company Reporter-Latin America on
July 1, 2016, Moody's Investors Service has changed the outlook on
the Dominican Republic's long term issuer and debt ratings to
positive from stable. The ratings have been affirmed at B1.
====================
E L S A L V A D O R
====================
EL SALVADOR: S&P Puts 'B+' Sovereign Rating on CreditWatch Neg.
---------------------------------------------------------------
S&P Global Ratings placed its 'B+' long-term and 'B' short-term
foreign and local currency sovereign credit ratings on El Salvador
on CreditWatch with negative implications. The 'AAA' transfer and
convertibility assessment is unchanged.
RATIONALE
S&P placed the ratings on CreditWatch negative based on its view
of deteriorating financial management, as reflected in a weakening
of the government's ability to gain access to liquidity, due to
heightened political polarization. The Administration of
President Sanchez Ceren (of the Frente Farabundo Marti para la
Liberacion Nacional, or FMLN) has been unable to get Congressional
approval for its external debt issuance plans, which requires a
two-thirds majority in Congress. As a result, it has accumulated
around $1 billion in short-term locally issued debt (called
LETES). On Sept. 29, Congress approved a reform to allow the
Fideicomiso de Obligaciones Previsionales, a trust managed by
BANDESAL, the country's development bank, to fund its maturing
obligations to the country's private-sector pension funds on
Oct. 7, by issuing debt (certificates of pension investment)
instead of paying with cash. The new reform, which was blocked by
the main opposition party and has been challenged in court,
provides only temporary liquidity relief.
The economic costs of a long-standing stalemate between the
governing FMLN and the main opposition party, Alianza Republicana
Nacionalista, are rising. The political stalemate has delayed
progress on proposed fiscal and pension reform, weakened debt-
management practices, dampened investor confidence, and limited
the country's economic growth prospects.
CREDITWATCH
Failure to agree on fiscal and other reforms that help stabilize
the government's access to liquidity, contain the recent growth in
its debt burden, and boost investor confidence could lead to a
downgrade. S&P expects to resolve the CreditWatch by the end of
this year, based on the outcome of political negotiations on
fiscal policy, including debt management, as well as a proposed
new law on fiscal discipline. S&P could lower the rating by one
or two notches if our institutional and governance assessment for
El Salvador and our projections of the government's financial
profile were to weaken.
Conversely, S&P could stabilize the ratings if successful
negotiations result in stronger fiscal policy, progress toward
pension reform, and steps to address concerns about debt
management.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee agreed that key rating factors were unchanged but
could deteriorate in the next three months.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
RATINGS LIST
CreditWatch Action
To From
El Salvador (Republic of)
Sovereign Credit Rating B+/Watch Neg/B B+/Stable/B
Senior Unsecured B+/Watch Neg B+
Ratings Affirmed
El Salvador (Republic of)
Transfer & Convertibility Assessment AAA
=============
J A M A I C A
=============
CARIBBEAN CEMENT: Chris Dehring Resigns From Board
--------------------------------------------------
RJR News reports that Christopher Dehring has resigned as chairman
of the Board of Directors of Caribbean Cement Company Limited
(CCC), Jamaica Gypsum and Quarries Limited, Caribbean Gypsum
Company and Rockfort Mineral Bath Complex.
Parris Lyew-Ayee has been appointed as the new chairman, effective
Wednesday, October 5, according to RJR News.
Mr. Lyew-Ayee has served as a director of CCC since 2006. He also
serves on the Board's Audit Committee and as chairman of the
Quarry and Raw Material Committee, the report notes.
Meanwhile, Caribbean Cement has advised that Mr. Alejandro Vares
has been appointed as a Director of Caribbean Cement Company,
Jamaica Gypsum and Quarries Limited, Caribbean Gypsum Company and
Rockfort Mineral Bath Complex, effective October 5, the report
relays.
Mr. Vares remains as General Manager of Caribbean Cement Company
Limited, the report adds.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2014, RJR News disclosed that company said it racked up a
loss of $89 million in the three months to the end of June,
compared to a $359 million profit in the corresponding period a
year ago. The report noted that Caribbean Cement said the loss
was due to the shutdown of a clinker line to facilitate
maintenance work.
According to a TCRLA report on Aug. 7, 2013, RJR News said that
Caribbean Cement Company Limited suffered a consolidated loss of
J$137 million for the first six months of 2013 down from J$1.2
billion during the corresponding period last year, according to
RJR News. The report related that the loss resulted from J$701
million of non-cash foreign exchange losses compared to J$136
million in 2012.
======================
P U E R T O R I C O
======================
EDGARDO ACEVEDO: Unsecureds to Get 6% Recovery Under Ch. 11 Plan
----------------------------------------------------------------
Edgardo Acevedo Badillo and Jennifer Enid Jimenez filed with the
U.S. Bankruptcy Court for the District of Puerto Rico a disclosure
statement describing their Chapter 11 Plan dated Sept. 25, 2016.
The Plan establishes 8 classes of claims, plus two categories of
unclassified claims (for administrative expenses and for priority
taxes).
Priority Taxes (Unclassified) includes the claim of the IRS in the
priority amount of $ 3,738.31 (Claim No. 2). All priority tax
claims will be paid in full, with interest at the statutory rate
on such claims, in equal quarterly cash payments commencing 90
days after the Effective Date, amortized over the remaining period
of 5 years from the Petition Date, unless a different treatment is
agreed to or provided for in the Plan.
Class A (Priority (non-tax) Claims) will be paid in full, in cash,
by the Debtor on the Effective Date or as soon thereafter.
Class B Cooperativa de A/c de Aguada [COOPERATIVA] is a secured
claim (POC #5) in the amount of $340,390.76 as of the filing date,
on the Debtor's commercial real estate at Road #2, Km 108.2, Coto
Ward, Isabela, Puerto Rico. The secured claim which is secured
against such real property is valued at $450,000.00 as of the
Effective Date of the plan. If "Cooperativa" disputes the value of
the collateral stated above, it must timely file an objection to
confirmation, or the value stated by Debtor will be determined to
be the value of the collateral. The secured portion of the claim
shall be paid in 180 monthly payments of $2,560.69, amortized over
15 at an interest rate of 4.25% per annum, plus an escrow deposit
for taxes and insurance as provided in the existing loan
documents.
Class C Secured Claim of Cooperativa de A/c de Aguada
[COOPERATIVA] consists of the secured prepetition claim of
COOPERATIVA, (Claim No. 4), in the amount of $247,188.59 as of the
filing date, secured by a MORTGAGE LOAN dully registered on the
Debtor's undeveloped real estate 22,298.02 s/m lot, located at
Montana ward, Aguadilla, Puerto Rico. The Loan is secured by
certain savings and shares of the Debtor in the amount of $19,609,
pursuant to the statutory lien created by the Article 6.03(c), of
Act Number 255 of October 28, 2002. Debtors surrender savings and
shares to Cooperativa de A/C de Aguada. Debtors surrender
collateral.
Class C-1 Cooperativa de A/c de Aguada [COOPERATIVA] is a secured
claim which consists of the pre and post-petition arrears claim of
COOPERATIVA, Claim No 5, in the amount of $41,327.68. Such
arrears shall be paid in 120 months. For the first 36 monthly
payments, debtor will pay $175.00; the remaining 84 months, debtor
will pay $402.52.
Class D (Claim No. 6) of Banco Popular de Puerto Rico [BPPR], now,
Condado 3, LLC (PO BOX 70291, SAN JUAN, PR 00936) is secured claim
consisting of the secured prepetition claim of BPPR, in the amount
of $170,101.93 as of the filing date, secured by a second rank
Mortgage Note dully registered on the Debtor's real estate at real
estate on undeveloped 22,298.02 s/m lot, located at Montana Ward,
Aguadilla, Puerto Rico. Debtors surrender collateral to creditor.
Class E consists of the secured claim of Reliable $23,424 (Claim
No. #1 filed on 8/7/2015), which is secured by a purchase money
security on vehicle 2014 Kia Sorrento. Debtor has maintained this
account current. This class is not impaired. Vehicle has double
interest insurance.
Class F Firstbank secured claim consists of the secured
prepetition claim of Firstbank, (Claim No. 3), in the amount of
$281,384 as of the filing date. The amount due under this class
will be paid in full but on modified terms. On the effective date
of the plan, the outstanding secured debt of this creditor will be
restructured, under either of the two alternatives to be
determined at the discretion of the creditor: 1) into an
installment payment plan calling for consecutive monthly payments
to pay a secured amount of $281,984.31 as fixed herein in cash and
in full with interest computed at fixed interest rate of 3.5%,
payable in monthly payments of no more than $1,266.24 during a
period of 360 months, this payment including escrow reserves. 2)
into an agreed loan modification relief agreement that could be
negotiated with the secured creditor as these may be available to
preserve and maintain this residential dwelling through any
available alternatives including but not limited to the Home
Affordable Modification Program guidelines adopted by the
government's initiative to avoid residential foreclosures.
Class G (General Usecured Claims), the total amount of which
(whether claimed or listed) subject to distribution is $129,169.
Class G claimants will receive from the Debtor a non-negotiable,
interest bearing at 3.25% annually, promissory note dated as of
the Effective Date. Creditors in this class shall receive a total
repayment of 6% of their claimed or listed debt which equals to
$9,117 to be paid pro rata to all allowed claimants under this
class. Unsecured Creditors will receive monthly payment of $75.98
to be distributed pro rata among them, for a 10-year term. The
first payment will be made on June 1, 2017.
If Class G votes to accept the Plan, the total payment to the
holders of Class F claims will be increased to 10%, payable at
3.5% interest bearing note to be tendered upon the effective date
payable in 120 monthly installments from the effective date of the
plan.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/prb15-05928-87.pdf
The Debtor is represented by:
MIRIAM S. Lozada Ramirez, Esq.
Telephone: (787) 834-3004
Facsimile: (787) 986-7346
E-mail: miriamlozada@gmail.com
Edgardo Acevedo Badillo and Jennifer Enid Jimenez Ramos sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R.
Case No. 15-05928) on Aug. 3, 2015.
KAMA MANAGEMENT: Case Summary & 4 Unsecured Creditors
-----------------------------------------------------
Debtor: Kama Management Inc.
Urbanizacion Biscochea
Calle Amapola #6
Carolina, PR 00979
Case No.: 16-08008
Chapter 11 Petition Date: October 5, 2016
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Maria Soledad Lozada Figueroa, Esq.
LOZADA LAW & ASSOCIATES, LLC
PO Box 9023888
San Juan, PR 00902
Tel: 787 533 1400
E-mail: msl@lozadalaw.com
Total Assets: $0
Total Debts: $1.45 million
The petition was signed by Alberto Perez Pujals, president.
A copy of the Debtor's list of four unsecured creditors is
available for free at http://bankrupt.com/misc/prb16-08008.pdf
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Extends Line Of Credit for JV in Repsol SA
------------------------------------------------------------------
EFE News reports that Venezuelan state oil company Petroleos de
Venezuela and Repsol SA signed an agreement Friday, Oct. 7, that
calls for the Spanish energy company to provide a line of credit
of up to $1.2 billion to expand oil production in the Andean
nation.
Repsol SA CEO Josu Jon Imaz and PDVSA chief Eulogio Del Pino put
their signatures to the financing deal for the Petroquiriquire
joint venture during a ceremony at the presidential palace,
Miraflores, according to EFE News.
The accord "ratifies the mutual confidence between our firms --
PDVSA and Repsol," Venezuelan President Nicolas Maduro said, the
report notes.
The new funding will allow PDVSA and Repsol to "practically
double" Petroquiriquire's output from the current level of roughly
30,000 barrels per day, Mr. Del Pino said, the report relays.
"This agreement entails a credit line that will be used for
investments at Petroquiriquire in the next five years," Repsol SA
said in a statement, the report notes.
Also present for the event at Miraflores was Igor Sechin, CEO of
Russian oil giant Rosneft, who signed a pact that will see his
company invest roughly $20 billion in Venezuela, the report adds.
As reported in the Troubled Company Reporter-Europe on May 3,
2016, Egan-Jones Ratings Agency downgraded in late April 2016 the
local currency and foreign currency senior unsecured ratings on
debt issued by Repsol SA to B+ from BB-.
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
=================
LATIN AMERICA: Bucking Global Protectionist Trend, Ministers Say
---------------------------------------------------------------
John Quigley at Bloomberg News reports that Latin American nations
will press ahead with effort to integrate their economies and
won't fall victim to the growing protectionist trend in developed
countries, finance ministers said.
The Pacific Alliance pact between Chile, Colombia, Mexico and Peru
to integrate their economies will support growth in the region as
isolationist trends take hold in Europe and the U.S., Colombian
Finance Minister Mauricio Cardenas said on a panel at a World Bank
event in Washington, according to Bloomberg News.
Originally formed in response to the commodity bust, the Pacific
Alliance program to remove restrictions on trade and capital flows
will also help their economies in the face of a "wave of
protectionism" represented by Britain's vote to leave the European
Union, said Cardenas, the report notes. Argentine Finance
Minister Alfonso Prat-Gay, said deepening economic integration in
Latin America is bolstered by language and cultural ties, adding
Argentina hopes to join the Pacific Alliance, the report relays.
"This is a lesson we can start giving the world as we integrate
more," the report quoted Mr. Prat-Gay as saying.
Mr. Prat-Gay joked that he looked forward to joining a WhatsApp
chat that the finance ministers within the Pacific Alliance use to
comment on policy developments in their countries, the report
notes.
"Once I get there it will be a good sign," Mr. Prat-Gay added..
* BOND PRICING: For the Week From Oct. 3 to Oct. 7, 2016
--------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
Andino Investment Holding 11 70.85 11/13/2020 PE USD
Andino Investment Holding 11 68.88 11/13/2020 PE USD
Anton Oilfield Services G 7.5 69.03 11/6/2018 CN USD
Anton Oilfield Services G 7.5 66 11/6/2018 CN USD
BA-CA Finance Cayman 2 Lt 0.719 38.5 KY EUR
BA-CA Finance Cayman Ltd 0.749 38.93 KY EUR
Banco do Brasil SA/Cayman 6.25 62.84 KY USD
Banco do Brasil SA/Cayman 6.25 59.51 KY USD
BPI Capital Finance Ltd 2.29 40 KY EUR
CA La Electricidad de Car 8.5 43.75 4/10/2018 VE USD
Chile Government Internat 3.625 15.7 10/30/2042 CL USD
CSN Islands XI Corp 6.875 61.25 9/21/2019 KY USD
CSN Islands XI Corp 6.875 61.13 9/21/2019 KY USD
CSN Islands XII Corp 7 48.8 BR USD
CSN Islands XII Corp 7 47.75 BR USD
Decimo Primer Fideicomiso 4.54 59.75 10/25/2041 PA USD
Decimo Primer Fideicomiso 6 71.38 10/25/2041 PA USD
Ecuador Government Domest 8.45 70.8 2/6/2034 EC USD
Ecuador Government Domest 8.45 69.35 9/10/2034 EC USD
Ecuador Government Domest 8.45 70.42 4/2/2034 EC USD
Ecuador Government Domest 8.45 69.72 7/17/2034 EC USD
Ecuador Government Domest 8.45 69.71 5/30/2034 EC USD
Ecuador Government Domest 8.45 69.23 9/30/2034 EC USD
Ecuador Government Domest 8.45 70.52 3/19/2034 EC USD
Ecuador Government Domest 7.75 74.84 12/19/2028 EC USD
Ecuador Government Domest 8.45 69.94 6/12/2034 EC USD
Ecuador Government Domest 8.45 69.95 6/11/2034 EC USD
Ecuador Government Domest 8.45 69.82 7/1/2034 EC USD
Ecuador Government Domest 7.7 73.56 7/1/2029 EC USD
Ecuador Government Domest 7.7 72.94 9/10/2029 EC USD
Ecuador Government Domest 7.75 74.95 11/8/2028 EC USD
Ecuador Government Domest 7.7 73.74 6/11/2029 EC USD
Ecuador Government Domest 7.7 73.73 6/12/2029 EC USD
Ecuador Government Domest 7.7 72.77 9/30/2029 EC USD
Empresa de Telecomunicaci 7 71.24 1/17/2023 CO COP
Empresa de Telecomunicaci 7 71.24 1/17/2023 CO COP
ESFG International Ltd 5.753 0.883 KY EUR
General Exploration Partn 11.5 36.75 11/13/2018 CA USD
General Shopping Finance 10 60.55 KY USD
General Shopping Finance 10 60.63 KY USD
Global A&T Electronics Lt 10 70.88 2/1/2019 SG USD
Global A&T Electronics Lt 10 71.88 2/1/2019 SG USD
Global A&T Electronics Lt 10 50.5 2/1/2019 SG USD
Global A&T Electronics Lt 10 54 2/1/2019 SG USD
Glorious Property Holding 13.25 74.56 3/4/2018 HK USD
Gol Finance Inc 9.25 47.35 7/20/2020 BR USD
Gol Finance Inc 8.75 37.75 BR USD
Gol Finance Inc 7.5 61 4/3/2017 BR USD
Gol Finance Inc 7.5 59.38 4/3/2017 BR USD
Gol Finance Inc 7.5 59.38 4/3/2017 BR USD
Gol Finance Inc 9.25 43.38 7/20/2020 BR USD
Gol Finance Inc 8.75 36.88 BR USD
Green Dragon Gas Ltd 10 63.75 11/20/2017 HK USD
Greenfields Petroleum Cor 9 11.35 5/31/2017 US CAD
Honghua Group Ltd 7.45 58.25 9/25/2019 CN USD
Honghua Group Ltd 7.45 58 9/25/2019 CN USD
Inversora Electrica de Bu 6.5 59.5 9/26/2017 AR USD
MIE Holdings Corp 7.5 67.25 4/25/2019 HK USD
MIE Holdings Corp 7.5 68.58 4/25/2019 HK USD
NB Finance Ltd/Cayman Isl 3.38 60.22 2/7/2035 KY EUR
Newland International Pro 9.5 24.13 7/3/2017 PA USD
Newland International Pro 9.5 25.13 7/3/2017 PA USD
Noble Holding Internation 6.2 65.42 8/1/2040 KY USD
Noble Holding Internation 6.05 66.38 3/1/2041 KY USD
Noble Holding Internation 5.25 64.71 3/15/2042 KY USD
Ocean Rig UDW Inc 7.25 57.75 4/1/2019 CY USD
Ocean Rig UDW Inc 7.25 55 4/1/2019 CY USD
Odebrecht Drilling Norbe 6.35 27 6/30/2021 KY USD
Odebrecht Drilling Norbe 6.35 28.5 6/30/2021 KY USD
Odebrecht Finance Ltd 7.5 40 KY USD
Odebrecht Finance Ltd 4.375 37.23 4/25/2025 KY USD
Odebrecht Finance Ltd 7.125 33.5 6/26/2042 KY USD
Odebrecht Finance Ltd 5.25 34.5 6/27/2029 KY USD
Odebrecht Finance Ltd 5.125 36 6/26/2022 KY USD
Odebrecht Finance Ltd 8.25 35 4/25/2018 KY BRL
Odebrecht Finance Ltd 7 53.5 4/21/2020 KY USD
Odebrecht Finance Ltd 6 41.51 4/5/2023 KY USD
Odebrecht Finance Ltd 5.25 36 6/27/2029 KY USD
Odebrecht Finance Ltd 4.375 36 4/25/2025 KY USD
Odebrecht Finance Ltd 7.125 33.75 6/26/2042 KY USD
Odebrecht Finance Ltd 7.5 42.5 KY USD
Odebrecht Finance Ltd 8.25 35 4/25/2018 KY BRL
Odebrecht Finance Ltd 5.125 35.38 6/26/2022 KY USD
Odebrecht Finance Ltd 6 38.88 4/5/2023 KY USD
Odebrecht Finance Ltd 7 44 4/21/2020 KY USD
Odebrecht Offshore Drilli 6.75 17 10/1/2022 KY USD
Odebrecht Offshore Drilli 6.625 17 10/1/2022 KY USD
Odebrecht Offshore Drilli 6.75 17.38 10/1/2022 KY USD
Odebrecht Offshore Drilli 6.625 17.38 10/1/2022 KY USD
Petroleos de Venezuela SA 5.25 67.5 4/12/2017 VE USD
Petroleos de Venezuela SA 12.75 56.1 2/17/2022 VE USD
Petroleos de Venezuela SA 9 49.38 11/17/2021 VE USD
Petroleos de Venezuela SA 9.75 44.57 5/17/2035 VE USD
Petroleos de Venezuela SA 6 38.5 5/16/2024 VE USD
Petroleos de Venezuela SA 6 36.75 11/15/2026 VE USD
Petroleos de Venezuela SA 5.375 37 4/12/2027 VE USD
Petroleos de Venezuela SA 5.5 36.75 4/12/2037 VE USD
Petroleos de Venezuela SA 6 32.13 10/28/2022 VE USD
Petroleos de Venezuela SA 6 36.4 11/15/2026 VE USD
Petroleos de Venezuela SA 6 35.35 5/16/2024 VE USD
Petroleos de Venezuela SA 9.75 41.7 5/17/2035 VE USD
Petroleos de Venezuela SA 9 45.25 11/17/2021 VE USD
Petroleos de Venezuela SA 12.75 46.15 2/17/2022 VE USD
Polarcus Ltd 5.6 44.93 3/30/2022 AE USD
Provincia de Rio Negro 1.6148 62 5/4/2024 AR ARS
PSOS Finance Ltd 11.75 60.13 4/23/2018 KY USD
Republic of Ecuador Minis 8.45 69.22 9/30/2034 EC USD
Republic of Ecuador Minis 7.75 74.88 12/19/2028 EC USD
Republic of Ecuador Minis 7.7 73.6 7/1/2029 EC USD
Republic of Ecuador Minis 7.75 74.99 11/8/2028 EC USD
Republic of Ecuador Minis 8.45 69.22 9/30/2034 EC USD
Republic of Ecuador Minis 7.7 73.77 6/12/2029 EC USD
Republic of Ecuador Minis 8.45 69.39 9/10/2034 EC USD
Republic of Ecuador Minis 8.45 69.75 7/17/2034 EC USD
Republic of Ecuador Minis 8.45 69.39 9/10/2034 EC USD
Republic of Ecuador Minis 7.7 72.81 9/30/2029 EC USD
Republic of Ecuador Minis 7.7 73.78 6/11/2029 EC USD
Republic of Ecuador Minis 7.7 73.6 7/1/2029 EC USD
Republic of Ecuador Minis 8.45 69.98 6/11/2034 EC USD
Republic of Ecuador Minis 8.45 69.98 6/11/2034 EC USD
Republic of Ecuador Minis 7.7 73.77 6/12/2029 EC USD
Republic of Ecuador Minis 7.7 72.99 9/10/2029 EC USD
Republic of Ecuador Minis 8.45 69.97 6/12/2034 EC USD
Republic of Ecuador Minis 7.75 74.88 12/19/2028 EC USD
Republic of Ecuador Minis 8.45 70.84 2/6/2034 EC USD
Republic of Ecuador Minis 8.45 70.55 3/19/2034 EC USD
Republic of Ecuador Minis 8.45 69.85 7/1/2034 EC USD
Republic of Ecuador Minis 8.45 70.45 4/2/2034 EC USD
Republic of Ecuador Minis 7.7 72.81 9/30/2029 EC USD
Republic of Ecuador Minis 8.45 69.75 7/17/2034 EC USD
Republic of Ecuador Minis 8.45 69.74 5/30/2034 EC USD
Republic of Ecuador Minis 8.45 69.97 6/12/2034 EC USD
Republic of Ecuador Minis 7.75 74.99 11/8/2028 EC USD
Republic of Ecuador Minis 8.45 69.85 7/1/2034 EC USD
Republic of Ecuador Minis 8.45 70.45 4/2/2034 EC USD
Republic of Ecuador Minis 8.45 69.74 5/30/2034 EC USD
Republic of Ecuador Minis 7.7 73.78 6/11/2029 EC USD
Republic of Ecuador Minis 8.45 70.84 2/6/2034 EC USD
Republic of Ecuador Minis 7.7 72.99 9/10/2029 EC USD
Republic of Ecuador Minis 8.45 70.55 3/19/2034 EC USD
Samarco Mineracao SA 4.125 37.25 11/1/2022 BR USD
Samarco Mineracao SA 5.75 36.6 10/24/2023 BR USD
Samarco Mineracao SA 5.375 35.38 9/26/2024 BR USD
Samarco Mineracao SA 4.125 37.38 11/1/2022 BR USD
Samarco Mineracao SA 5.75 39.63 10/24/2023 BR USD
Samarco Mineracao SA 5.375 37.25 9/26/2024 BR USD
Siem Offshore Inc 5.69 52.25 1/30/2018 NO NOK
Siem Offshore Inc 5.49 51.75 3/28/2019 NO NOK
Transocean Inc 5.05 74.75 10/15/2022 KY USD
Transocean Inc 6.8 63.66 3/15/2038 KY USD
Transocean Inc 7.5 65.78 4/15/2031 KY USD
Transocean Inc 9.1 70.41 12/15/2041 KY USD
Transocean Inc 7.45 74.9 4/15/2027 KY USD
Transocean Inc 8 73.55 4/15/2027 KY USD
Uruguay Notas del Tesoro 5.25 61.99 12/29/2021 UY UYU
US Capital Funding IV Ltd 0.99305 43.92 12/1/2039 KY USD
US Capital Funding IV Ltd 0.99305 43.92 12/1/2039 KY USD
Venezuela Government Inte 9.25 49.03 9/15/2027 VE USD
Venezuela Government Inte 11.75 49.5 10/21/2026 VE USD
Venezuela Government Inte 11.95 49.5 8/5/2031 VE USD
Venezuela Government Inte 7.75 47.38 10/13/2019 VE USD
Venezuela Government Inte 13.625 65.25 8/15/2018 VE USD
Venezuela Government Inte 9.375 45.85 1/13/2034 VE USD
Venezuela Government Inte 7 52.85 12/1/2018 VE USD
Venezuela Government Inte 7 42 3/31/2038 VE USD
Venezuela Government Inte 9 45.5 5/7/2023 VE USD
Venezuela Government Inte 9.25 45.5 5/7/2028 VE USD
Venezuela Government Inte 8.25 44.38 10/13/2024 VE USD
Venezuela Government Inte 6 43.5 12/9/2020 VE USD
Venezuela Government Inte 13.625 56.5 8/15/2018 VE USD
Venezuela Government Inte 7.65 43.25 4/21/2025 VE USD
Venezuela Government Inte 13.625 59.69 8/15/2018 VE USD
Venezuela Government Inte 12.75 53.5 8/23/2022 VE USD
Venezuela Government TICC 5.25 53.23 3/21/2019 VE USD
VRG Linhas Aereas SA 10.75 25.63 2/12/2023 BR USD
VRG Linhas Aereas SA 10.75 25.63 2/12/2023 BR USD
XLIT Ltd 6.5 70 IE USD
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A.
Chapman, Editors.
Copyright 2016. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at
202-362-8552.
* * * End of Transmission * * *