/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/161125.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 Friday, November 25, 2016, Vol. 17, No. 234 Headlines A R G E N T I N A ENTRE RIOS: Fitch Publishes 'B' Long Term Issuer-Default Ratings B R A Z I L PETROLEO BRASILEIRO: Settles More Individual Shareholder Lawsuits C A Y M A N I S L A N D S ALTERNATIVE OPTION: Shareholders' Final Meeting Set for Nov. 28 ANCHOR5 OFFSHORE: Shareholders' Final Meeting Set for Dec. 1 BIG SKY: Shareholder to Hear Wind-Up Report on Nov. 30 BLUEBAY MULTI-STRATEGY: Members' Final Meeting Set for Dec. 9 CAYMAN NOMINEES: Shareholder to Hear Wind-Up Report on Nov. 14 FRONTIER RIDGE: Shareholders' Final Meeting Set for Dec. 1 FULLERTON MONEX: Shareholder to Hear Wind-Up Report on Dec. 5 ICAP OFFSHORE: Shareholders' Final Meeting Set for Dec. 1 JAMAICA SELECT: Members' Final Meeting Set for Nov. 28 JMMB SECURITIES: Members' Final Meeting Set for Nov. 28 METAL CAPITAL: Shareholders' Final Meeting Set for Nov. 29 TRINIDAD SELECT: Members' Final Meeting Set for Nov. 28 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Exports Stumble in First Half, as Peso Slumps DOMINICAN REPUBLIC: Medina Pledges Infrastructure Repair E C U A D O R ECUADOR: Moody's Affirms B3 Issuer Rating, Outlook Stable M E X I C O MEXICO: Inflation Gathers Speed in November P U E R T O R I C O AIR SUB CORP: Unsecureds to Get 60 Monthly Payments of $807 EFRON DORADO: PRAPI Entitled to Relief From Stay, Court Rules V E N E Z U E L A VENEZUELA: Talks Break Down, Opposition Claims - - - - - ================= A R G E N T I N A ================= ENTRE RIOS: Fitch Publishes 'B' Long Term Issuer-Default Ratings ---------------------------------------------------------------- Fitch Ratings has published the 'B' rating on the Province of Entre Rios' Long-Term Foreign and Local Currency Issuer-Default Ratings (IDR). The Rating Outlook is Stable. Fitch Ratings has also published an expected Long-Term Foreign-Currency Rating of 'B(EXP)' for the Province of Entre Rios' upcoming bond issuance. KEY RATING DRIVERS - ISSUER Provincia de Entre Rios' published ratings reflect the features of the Argentinian institutional framework with a solid and stable revenue system. The ratings also reflect the province's average debt metrics when compared to local and international peers and its weak liquidity position. Fitch does not believe any subnational entity to be rated higher than the sovereign, as regional governments' access to foreign currency is not deemed stronger than the central government's. Although its cash balance represents around 16% of Entre Rios' operating balance in 2015, the province has run temporary deficits over the last five years, which has been paid at the end of each year (floating debt). In 2015, floating debt represented 15% of Entre Rios' operating revenues. In Fitch's opinion, this suggests a weak liquidity position that may lead to higher indebtedness ratios in 2017 and 2018. In addition having relatively higher debt than other provinces, Entre Rios' debt structure has some concentration, because 53% of outstanding debt matures through 2017. Direct debt/current revenue has been fairly stable, reaching an annual average of 41.7% over the last five years, translating into payback (direct debt/current balance) of 5.1 years. These debt metrics are compatible with 'B' rated peers. It is worth mentioning that some 29% of the debt is denominated in foreign currency mostly with multilateral entities. Entre Rios is obligated to handle a pension deficit, as the federal government has not fulfilled its commitment to cover the underfunding of pension funds that were not transferred to it. However, the Supreme Court recently ruled to gradually cease from 2016 to 2020 the withholding of 15% of federal shared tax revenue to finance the National Social Security Administration related to the Fiscal Pact between the nation and the provinces. This agreement has been accepted by the majority of the local legislatures in order to become operative in the short term. This will strengthen the province's budgetary flexibility. Entre Rios is the seventh-largest province in Argentina in terms of gross geographic product and population. The province's economy is highly influenced by soft commodities, making it less resilient to most external economic shocks, such as weaker commodity prices and continued underperformance in Brazil. RATING SENSITIVITIES - ISSUER The Issuer Default Rating (IDR) of the Province of Entre Rios should move in tandem with Argentina's sovereign ratings. An upgrade of the sovereign IDR, accompanied by an improvement in operating margins to levels higher than 10% from the 7.6% posted in 2015 coupled with an improvement in its economic stature, could lead to an upgrade in Entre Rios' rating. A downgrade of Argentina's IDR could lead to a negative rating action. KEY RATING DRIVERS - ISSUANCE The bond is rated at the same level as the Province of Entre Rios. The ratings assigned to the Province reflect the features of the Argentinian institutional framework with a solid and stable revenue system. The ratings also reflect the Province's average debt metrics when compared to local and international peers and its weak liquidity position. The notes will be issued in USD for an amount of up to USD250 million in 2016, to accrue a fixed interest rate to be determined at issuance and payable on a semi-annual basis. The estimated maturity of the bond is between seven and 10 years, with semi- annual payments after a four year grace period. The notes will be a senior unsecured obligation of the Province of Entre Rios. Provincial Laws 10403, 10408 and 10433 of 2016 authorized the issuance of this debt. Around half of the proceeds will be used by the province to cancel existing debt and the rest to finance multiple infrastructure projects and will be offered to the Province's municipalities. The issuance will be governed by the laws of the State of New York. Among the events of default and acceleration of maturities, Fitch highlights the failure to pay debt principal for a period of three days and debt service for 30 days and failure to perform any payment having and aggregate principal amount equal or higher the equivalent to USD15 million. RATING SENSITIVITIES - ISSUANCE The final rating of Entre Rios' new bond is contingent upon the receipt of final documents conforming to information already received. Any change in the ratings assigned to the Province of Entre Rios will have a direct impact on the bond rating. Fitch has published the following rating: -- Long-Term Foreign and Local Currency IDRs 'B'; Outlook Stable. -- Senior unsecured Long-Term Expected Rating 'B'(EXP). =========== B R A Z I L =========== PETROLEO BRASILEIRO: Settles More Individual Shareholder Lawsuits ----------------------------------------------------------------- Paul Kiernan at The Wall Street Journal reports that Brazilian state-run oil company Petroleo Brasileiro SA said it has agreed to settle 11 investor lawsuits related to corruption, the latest step toward resolving a major source of uncertainty and potential liability. The lawsuits had been filed in New York by shareholders seeking to recoup losses they say were triggered by revelations in 2014 of a vast bribery scheme surrounding Petrobras, according to The Wall Street Journal. They had been consolidated into a class-action suit claiming tens of billions of dollars in losses, the report notes. The agreements announced include a variety of institutional investors such as Aberdeen Emerging Markets Fund, State of Alaska Department of Revenue, Ohio Public Employees Retirement System and Abbey Life Assurance Company Ltd, the report notes. These come on top of settlements with four other groups of shareholders, including bond giant Pacific Investment Management Co. LLC, that Petrobras announced in October, the report relays. Petrobras didn't disclose the amount involved in the settlement but said it is covered by a $364 million provision marked down in its third-quarter earnings, the report discloses. The company added that the deals "do not constitute any recognition of responsibility by Petrobras, which will continue defending itself firmly in the remaining lawsuits under way," the report says. An additional 12 individual lawsuits consolidated into the class action remain open, including one by the Bill and Melinda Gates Foundation Trust, the report notes. "At the moment, it is not possible for Petrobras to make a reliable estimate as to the outcome of the class action," the company said, the report adds. As reported in the Troubled Company Reporter-Latin America on Oct. 25, 2016, Moody's Investors Service upgraded all ratings of Petroleo Brasileiro S.A. (Petrobras)'s and ratings based on Petrobras' guarantee, including the company's senior unsecured debt and corporate family rating to B2 from B3 given lower liquidity risk and prospects of better operating performance in the medium term. At the same time, Moody's raised the company's baseline credit assessment (BCA) to b3 from caa2. ========================== C A Y M A N I S L A N D S ========================== ALTERNATIVE OPTION: Shareholders' Final Meeting Set for Nov. 28 --------------------------------------------------------------- The shareholders of Alternative Option Premium (AOP) Fund Limited will hold their final meeting on Nov. 28, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jane Fleming Jean Ebanks P.O. Box 30464 Grand Cayman KY1-1202 Cayman Islands Telephone: (345) 945-2187 Facsimile: (345) 945-2197 ANCHOR5 OFFSHORE: Shareholders' Final Meeting Set for Dec. 1 ------------------------------------------------------------ The shareholders of Anchor5 Offshore Fund Limited will hold their final meeting on Dec. 1, 2016, at 11:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 BIG SKY: Shareholder to Hear Wind-Up Report on Nov. 30 ------------------------------------------------------ The shareholder of Big Sky Fund, Ltd. will hear on Nov. 30, 2016, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Jody Powery-Gilbert Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 BLUEBAY MULTI-STRATEGY: Members' Final Meeting Set for Dec. 9 ------------------------------------------------------------- The members of The Bluebay Multi-Strategy Plus Fund Limited will hold their final meeting on Dec. 9, 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: Russell Smith c/o Derek Larner Telephone: (345) 815-4555 BDO CRI (Cayman) Ltd., Floor 2 - Building 3 Governors Square, 23 Lime Tree Bay Ave. P.O. Box 31229 Grand Cayman, KY1-1205 Cayman Islands CAYMAN NOMINEES: Shareholder to Hear Wind-Up Report on Nov. 14 -------------------------------------------------------------- The shareholder of Cayman Nominees Limited will hear on Nov. 14, 2016, at 2:00 p.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Darren Smith c/o David Cooney Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 FRONTIER RIDGE: Shareholders' Final Meeting Set for Dec. 1 ---------------------------------------------------------- The shareholders of Frontier Ridge Global Fund, Ltd. will hold their final meeting on Dec. 1, 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: FR Investment Manager, LLC c/o Westport Capital Partners LLC 40 Danbury Road Wilton Connecticut 06897 United States of America Telephone: +1 (203) 429-8602 e-mail: mporosoff@westportcp.com FULLERTON MONEX: Shareholder to Hear Wind-Up Report on Dec. 5 ------------------------------------------------------------- The shareholder of Fullerton Monex Asia Fund will hear on Dec. 5, 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: Koh Boon San 60B Orchard Road #06-18 Tower 2 The Atrium@Orchard Singapore 238891 Telephone: +65 6828 6828 ICAP OFFSHORE: Shareholders' Final Meeting Set for Dec. 1 --------------------------------------------------------- The shareholders of ICAP Offshore Absolute Return Fund II Ltd. will hold their final meeting on Dec. 1, 2016, at 11:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 JAMAICA SELECT: Members' Final Meeting Set for Nov. 28 ------------------------------------------------------ The members of Jamaica Select Index Fund Ltd. will hold their final meeting on Nov. 28, 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: H&J Corporate Services (Cayman) Ltd Campbell Law c/o Inga Thompson Willow House, 2nd Floor, Cricket Square P.O. Box 866 Grand Cayman K1-1103 Cayman Islands Telephone: (345) 949-7555 JMMB SECURITIES: Members' Final Meeting Set for Nov. 28 ------------------------------------------------------- The members of JMMB Securities Fund Services Limited will hold their final meeting on Nov. 28, 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: H&J Corporate Services (Cayman) Ltd Campbell Law c/o Inga Thompson Willow House, 2nd Floor, Cricket Square P.O. Box 866 Grand Cayman K1-1103 Cayman Islands Telephone: (345) 949-7555 METAL CAPITAL: Shareholders' Final Meeting Set for Nov. 29 ---------------------------------------------------------- The shareholders of Metal Capital will hold their final meeting on Nov. 29, 2016, at 8:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Igor Rudans 1 Argyrokastrou Str. Salonica Court, Block C, Flat 71 Cyprus 3026 Limassol TRINIDAD SELECT: Members' Final Meeting Set for Nov. 28 ------------------------------------------------------- The members of Trinidad Select Index Fund Ltd. will hold their final meeting on Nov. 28, 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: H&J Corporate Services (Cayman) Ltd Campbell Law c/o Inga Thompson Willow House, 2nd Floor, Cricket Square P.O. Box 866 Grand Cayman K1-1103 Cayman Islands Telephone: (345) 949-7555 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Exports Stumble in First Half, as Peso Slumps ----------------------------------------------------------------- Dominican Today reports that exports of goods from the Dominican Republic during the first six months posted bilateral depreciations against the dollar and a negative annual variation rate of 0.2%, the lowest rate among Central American countries. A recent report by the Inter-American Development Bank's (IDB) Trade and Integration Monitor 2016 shows that the country's strength in foreign trade is services, which account for as much as 50% of total exports, according to Dominican Today. The line reflects an increase rate of 7.4% in 2015, the report notes. The study said that a contractive dynamic was generated throughout the region during 2015 that affected the pace of exports and has continued in the first months of 2016, although with less intensity, the report relays. It points out that in terms of the type of product, the 14.8% decline of aggregate exports in Latin America in 2015 was the result of contractions in virtually all items, with the strongest influence being primary products with 12 percentage points, manufactures of primary origin with approximately 2.1, and 0.7 manufactures of industrial origin, the report notes. The IDB report also notes that exchange rate variations have produced significant variations in the competitiveness of countries in the region, Dominican Today says. It indicates that estimates of the elasticity of exports at the real exchange rate show that, although the effect has declined in recent years, depreciations could spur the growth of foreign trade, particularly manufacturing, Dominican Today discloses. However, in the case of intraregional flows, the current configuration of real exchange rates doesn't favor the prospects for expansion and diversification of exports, the report notes. It further notes that exchange rate volatility poses an additional risk in the current context of macroeconomic uncertainty, the report adds. As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Fitch Ratings has taken the following rating actions on the Dominican Republic: -- Long-Term Foreign Currency Issuer Default Rating (IDR) upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Senior unsecured Foreign and Local Currency bonds upgraded to 'BB-' from 'B+'; -- Short-Term Foreign Currency IDR affirmed at 'B'; -- Short-Term Local Currency IDR affirmed at 'B'; -- Country Ceiling affirmed at 'BB-'. DOMINICAN REPUBLIC: Medina Pledges Infrastructure Repair --------------------------------------------------------- Dominican Today reports that President Danilo Medina reiterated that once the rains cease, the Government will repair damaged infrastructure. "We're waiting for the rains to cease to begin work on infrastructure works that were damaged," the report quoted Mr. Medina as saying. Speaking to reporters about the second disbursement to beneficiaries of the Economic and Rural Development Program (Prorural), Medina said "we will work in all that we can," he added. The Emergency Operations Center (COE) reported that many of the 8,757 people evacuated are currently in shelters, while 35 communities still cut off due to rains mostly over the northern part of the country, the report notes. In addition, 100 houses destroyed, 1,482 damaged, as well as four bridges and an equal number of roads, the report relays. The COE said that the majority of the evacuees are in Duarte (central) and Montecristi (northwest) provinces, the report adds. As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Fitch Ratings has taken the following rating actions on the Dominican Republic: -- Long-Term Foreign Currency Issuer Default Rating (IDR) upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Senior unsecured Foreign and Local Currency bonds upgraded to 'BB-' from 'B+'; -- Short-Term Foreign Currency IDR affirmed at 'B'; -- Short-Term Local Currency IDR affirmed at 'B'; -- Country Ceiling affirmed at 'BB-'. ============= E C U A D O R ============= ECUADOR: Moody's Affirms B3 Issuer Rating, Outlook Stable --------------------------------------------------------- Moody's Investors Service has affirmed Ecuador's B3 issuer rating and maintained the stable outlook on the rating. The key drivers of today's rating action are Moody's expectations that: -- The government's policy measures to adjust expenditures in response to lower oil revenues will keep government debt ratios at moderate levels -- The ongoing stabilization in broader macro-economic metrics will be followed by a gradual growth recovery The oil price shock has had a negative effect on Ecuador's growth and government finances, and heightened liquidity pressures. However, relative to Moody's rated universe, Ecuador's economic strength is moderate and fiscal strength is high, and both factors support its B3 rating. These credit strengths counterbalance its very low institutional strength and a moderate susceptibility to event risk, particularly liquidity risks. The stable outlook incorporates an expectation of continued macro- economic stabilization characterized by subdued GDP growth, a gradual decline in fiscal deficits and steady balance of payments. On the other hand, the government's tight liquidity position will likely remain a constraint on the B3 rating. The senior unsecured bond rating on the 2030 global bond was affirmed at C, reflecting the unresolved bondholder claims on debt that has been in default since 2008. Ecuador's foreign currency ceilings remain unchanged at B2 for the long-term bond ceiling and Caa1 for the long-term deposit ceiling. RATINGS RATIONALE FIRST DRIVER -- EXPENDITURE ADJUSTMENT HAS LIMITED THE NEGATIVE FISCAL IMPACT OF THE FALL IN GOVERNMENT REVENUES Oil related revenues accounted for 30% of government revenues when oil prices began to drop in the second half of 2014. After a steep decline, oil related revenues now account for about 10% of government revenues. In addition, the terms of trade shock from falling oil prices had a negative impact on overall GDP growth, leading to the government's non-oil revenues dropping as well. In order to offset the drop in overall revenues, authorities have pursued a proactive strategy of expenditure cuts. Capital expenditures, which historically have represented about 45% of total spending, have been reduced by about 25% relative to their 2014 levels. Consequently, the fiscal deficit declined to 3.8% of GDP on an accrual basis in 2015, from 6.3% in 2014. However, the reconstruction costs following the April 2016 earthquake, coupled with costs associated with legal settlements of over $1 billion incurred during the first half of 2016 further weighed on the government's finances. Nonetheless, we expect the 2016 deficit to remain at levels similar to 2015, although the government is likely to maintain arrears to the private sector of about 1%-2% of GDP. "We expect central government debt to climb to above 36% of GDP in 2016 from 30.7% in 2015, and stabilize at between 40 and 45% of GDP over the next three years." Moody's said. Even with this increase in debt levels, Ecuador's debt ratio will still compare favorably to the median level for B rated sovereigns, which Moody's forecasts will be about 55% of GDP in 2018. With rising debt and subdued revenues, Ecuador's debt affordability will decline, as the interest to revenue ratio will climb to 12% in 2017, from 7% in 2014. This ratio will be slightly above our 2017 forecast of a median of 10% for B-rated sovereigns. Although Ecuador's fiscal fundamentals will still compare favorably to many similarly rated peers, its sovereign credit profile remains constrained by the challenges of meeting its now higher borrowing requirements. These requirements have been met by various sources including a $2 billion (2% of GDP) 6 year global bond issued this year as well as short-term financing from the central bank of over $4 billion. Looking ahead, the government's financing needs keep it exposed to potential changes in the availability and cost of funding, particularly in an uncertain international financial environment. SECOND DRIVER -- MACROECONOMIC INDICATORS ARE STABILIZING AFTER ABSORBING LARGE TERMS OF TRADE SHOCK Petroleum products accounted for over 50% of Ecuador's exports, and 13% of GDP, so the balance of payments and growth impact of the decline in oil prices was significant. Moreover, for Ecuador's dollarized economy, the strengthening of the US dollar dealt a further blow to competitiveness. While the reduction in government spending mentioned above safeguarded the government's fiscal profile, it further weighed on economic activity. Private investment remained subdued due to the combined impact of tighter liquidity conditions, the terms of trade shock and uncertainty ahead of the 2017 general elections. Meanwhile, weaker labor market conditions dampened private consumption. Consequently, the economy entered into a recession in late 2015. Moody's expects that GDP will contract 2.5% in 2016 but will likely resume an annual pace of expansion in 2017. Recent GDP data reveal that the economy is emerging from recession, with output expanding on a quarter-on-quarter basis in the April-June period, breaking a four-quarter negative trend. Moody's baseline expectation is that the recovery will be gradual, with GDP growth rising towards 3% by the end of the decade, supported by increased private investment and foreign direct investment, particularly in the oil and mining sectors. Ecuador's external position is also showing some improvement. The country recorded a current account deficit of 2.1% of GDP in 2015, after a 0.5% deficit in 2014. To stem a further widening of the deficit amid continued liquidity pressures, government imposed import tariffs in 2015, extending them this year through mid-2017. Coupled with diminished demand caused by the recession, import tariffs helped push the trade balance into a surplus. Moody's now expects that the current account will post a small surplus in 2016, the first one since 2010. This improvement in the current account alleviates external liquidity pressures. Liquidity has also improved in the banking system as the sharp drop in deposits in 2015 was mostly reversed in 2016. However, there has not been a rebound in credit growth, as banks' asset quality has deteriorated and the economy has been in recession. This in turn has weighed on banks' profitability. RATIONALE FOR STABLE OUTLOOK The stable outlook reflects Moody's expectations that while an improvement in Ecuador's external and fiscal accounts is likely over the rating horizon, the sovereign's credit profile will remain constrained by the financing risks the government faces. That said, Moody's expects that government borrowing requirements will decrease in coming years through a combination of lower capital expenditures, following the completion of large-scale projects in the energy sector in 2016, and other fiscal consolidation measures. Additionally, given the government's debt maturity profile, Moody's considers that rollover risk will remain low through 2019 as most of the government debt owed until then is composed of loans from multilateral development banks, bilateral sources -- in particular the Chinese government -- and domestic sources, mainly the social security body. WHAT COULD CHANGE THE RATING UP There could be upward pressure on the rating if there was evidence of stronger potential GDP growth driven by higher private investment and financed by foreign direct investment inflows. Material and sustained improvements in fiscal fundamentals, and a reduction in government liquidity risks could also support upward rating momentum. WHAT COULD CHANGE THE RATING DOWN Downward pressure on the rating would develop if fiscal and/or balance-of-payments finances were to materially deteriorate, heightening liquidity risks; or if there was a return to political instability. SUMMARY OF MINUTES FROM RATING COMMITTEE -- GDP per capita (PPP basis, US$): 11,317 (2015 Actual) (also known as Per Capita Income) -- Real GDP growth (% change): 0.2% (2015 Actual) (also known as GDP Growth) -- Inflation Rate (CPI, % change Dec/Dec): 3.4% (2015 Actual) -- Gen. Gov. Financial Balance/GDP: -3.8% (2015 Actual) (also known as Fiscal Balance) -- Current Account Balance/GDP: -2.1% (2015 Actual) (also known as External Balance) -- External debt/GDP: 27.6% (2015 Actual) -- Level of economic development: Very Low level of economic resilience -- Default history: At least one default event (on bonds and/or loans) has been recorded since 1983. On 21 November 2016, a rating committee was called to discuss the rating of the Ecuador, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially increased. The issuer's fiscal or financial strength, including its debt profile, has materially decreased. The issuer has become increasingly susceptible to event risks. The principal methodology used in these ratings was Sovereign Bond Ratings published in December 2015. The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable. =========== M E X I C O =========== MEXICO: Inflation Gathers Speed in November ------------------------------------------- Anthony Harrup at The Wall Street Journal reports that Mexican inflation moved further from the central bank's target in early November as a weaker peso continued to affect goods prices and a seasonal increase in residential electricity rates pushed up energy costs. The Consumer Price Index rose 0.77% in the first two weeks of the month, moving the annual rate up to 3.29% from 3.06% at the end of October, the National Statistics Institute said, according to The Wall Street Journal. Core CPI, which excludes energy and fresh fruit and vegetables, rose 0.23% in the period to an annual rate of 3.33%, the report notes. The increases were above the median estimates of economists polled by The Wall Street Journal, which saw CPI rising 0.68% and core CPI up 0.12%, the report relays. Residential electricity rates contributed the most to November's inflation, rising 26% as summertime subsidies applied to help households cope with the cost of air conditioning ended in 12 cities, the report says. Gasoline, airfares and the price of tourism packages also rose, notes the report. The weaker peso and the risk it poses for inflation has prompted the Bank of Mexico to raise interest rates four times this year to the current 5.25% from 3.25% at the end of 2015, the report discloses. The central bank has also increased its forecasts for inflation, which it expects to end this year above its 3% target and stay above the target through 2017, the report relays. Inflation was below 3% for 17 consecutive months through September, the report says. A number of private economists have raised their forecasts for next year above 4%, partly as a result of peso depreciation following the election victory of U.S. President-elect Donald Trump, given the impact a Trump administration could have on trade and investment, the report notes. The weaker peso, which affects the cost of imports, has pushed up goods prices more than those of services, the report relays. Core goods were up an annual 4.07% in mid-November, while services prices were 2.71% higher, the report notes. In a report his week, the central bank said it expects the difference between goods price increases and services price increases as a result of currency depreciation to continue for a relatively long time, the report adds. ====================== P U E R T O R I C O ====================== AIR SUB CORP: Unsecureds to Get 60 Monthly Payments of $807 ------------------------------------------------------------ Air Sub Corp, filed with the U.S. Bankruptcy Court for the District of Puerto Rico a plan of reorganization and an accompanying small business disclosure statement, which places claims and equity interests in various classes. Banco Popular de Puerto Rico will get 48 monthly payments of $7,431.41 each until year 2020, amounting to a total payout of $356,708.00. The General Unsecured Class will get 60 monthly payments of $807.12 each until year 2021, amounting to a total payout of $48,427.00. Payments and distributions under the Plan will be funded by the regular course of business operations through the monthly income. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/prb16-01709-11-99.pdf The Debtors are represented by: Nilda M. Gonzalez-Cordero USDC # 213705 PO Box 3389 Guaynabo, PR 00970 Tel. (787) 721-3437 / (787) 724-2480 E-mail address: ngonzalezc@ngclawpr.com About Air Sub Corp Air Sub Corp filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-01709) on March 2, 2016, estimating its assets at up to $50,000 and liabilities at between $500,001 and $1 million. Nilda M. Gonzalez Cordero, Esq., at Gonzalez Cordero Law Offices serves as the Debtor's bankruptcy counsel. N & N Sub Corp. Filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-02596) on April 1, 2016, estimating its assets at up to $50,000 and its liabilities at between $100,001 and $500,000. Subway Senorial Parana Corp. filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-02597) on April 1, 2016, estimating its assets at up to $50,000 and its liabilities at between $100,001 and $500,000. Nilda M. Gonzalez Cordero, Esq., at Gonzalez Cordero Law Offices serves as the Debtors' bankruptcy counsel. EFRON DORADO: PRAPI Entitled to Relief From Stay, Court Rules -------------------------------------------------------------- Judge Mildred Caban Flores of the United States Bankruptcy Court for the District of Puerto Rico denied Efron Dorado SE's motion for stay pending appeal pursuant to Fed. R. Bankr. P. 8007. On January 20, 2016, Efron filed for bankruptcy relief under the provisions of Chapter 11 of the Bankruptcy Code. Efron designated its case as a single asset real estate case as defined in 11 U.S.C. section 101(51B). Creditor PR Asset Portfolio 2013-1 International SUB I, LLC, (PRAPI) filed Proof of Claim No. 13 asserting a claim in the amount of $13,347,009.04 and secured by Efron's shopping mall known as Paseo del Plata Shopping Center located in Dorado, Puerto Rico. On June 17, 2016, PRAPI filed a motion for relief from the automatic stay with respect to the Shopping Center premised on Efron's failure to adequately protect PRAPI's interest in the Shopping Center under section 362(d)(1); Efron's lack of both necessity and equity with respect to the Shopping Center under section 362(d)(2); and the SARE provisions under section 362(d)(3). On July 12, 2016, Efron opposed alleging that it did not qualify as a SARE case because its real properties are segregated in three separate parcels. That same day, Efron eliminated its SARE designation from the petition. PRAPI filed a reply stating that Efron had conducted itself as a SARE case since its inception of the bankruptcy filing and that it had continued to reaffirm its position as such throughout the case. Counsel for PRAPI brought the SARE status to the Court's attention at the status conference, and highlighted that the time-period under section 362(d)(3) had lapsed without Efron having filed a plan of reorganization nor making interest payments to PRAPI. The Court terminated the stay with respect to the Shopping Center, pursuant to section 362(d)(3). After the ruling was rendered, Efron argued for the first time at the hearing that it was entitled to an additional 30 days to file a plan or start making payments to PRAPI. The Court ruled that the argument had been waived and that the amended voluntary petition had not changed its true status. Subsequently, Efron filed a notice of appeal and requested a stay pending an appeal. Efron argued that, on appeal, it is likely to succeed on the merits because: a) the case is not a SARE case; b) it has a statutory right to amend the SARE designation in its petition upon perceiving an error in its SARE designation; and c) the Court must allow Efron to file a plan within the 30-day period from the stay- relief hearing, pursuant to 11 U.S.C. section 362(d)(3). Judge Flores held that Efron was subject to section 362(d)(3)'s provisions since its self-designation as a SARE case on January 20,2016, the date the bankruptcy was commenced. The judge stated that Efron should not be able to shed its SARE designation and block a stay-relief motion and acquire more time to act when it is clear from the petition date that it had only one income producing real property. For this reason, Judge Flores disallowed the amendment. Efron argued that it has the right to a new 30-day period to comply with the predicates of section 362(d)(3)(A)-(B). Judge Flores, however, found that Efron waited to present this new defense after the Court terminated the stay in favor of PRAPI and, thus, failed to put the Court or PRAPI on notice. For this reason, Judge Flores considered this argument waived by Efron. Further, Judge Flores found that Efron is judicially estopped from obtaining this outcome. The judge stated that Efron's amended petition does not change the nature of its designation and it is prohibited from changing its position according to the exigencies of the moment. Judge Flores concluded that PRAPI is entitled to relief from the automatic stay with respect to the Shopping Center -- Efron's real estate property whence its income is substantially derived. Judge Flores agreed with PRAPI that as of the petition date, Efron had correctly designated itself as a SARE case, and that Efron's amended voluntary petition did not change its status as a SARE case. Insomuch as Efron failed to meet the burden of demonstrating likelihood of success on the merits, Judge Flores denied Efron's request for a stay of the order granting PRAPI relief under section 362(d)(3). A full-text copy of Judge Flores' November 17, 2016 opinion and order is available at: http://bankrupt.com/misc/prb16-00283-212.pdf About Efron Dorado Se Efron Dorado Se, based in San Juan, Puerto Rico, filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-00283) on Jan. 20, 2016. The petition was signed by David Efron, partner. Charles Alfred Cuprill, Esq., at Charles A Cuprill, PSC Law Office, serves as its bankruptcy counsel. In its petition, the Debtor listed total assets of $33.2 million and total debt of $15.2 million. According to the schedules, the Debtor owns the shopping mall known as Paseo Del Plata Shopping Center located in Dorado, Puerto Rico; a parcel of land consisting of 80 Cuerdas, identified as Quintas De Dorado; and a parcel of land consisting of 30 Cuerdas known as Hernandez Farm. ================= V E N E Z U E L A ================= VENEZUELA: Talks Break Down, Opposition Claims ---------------------------------------------- Anatoly Kurmanaev at The Wall Street Journal reports that Venezuela's opposition said the government has abandoned Vatican- brokered talks, potentially ending a short-lived political truce in the deeply polarized nation. Government officials failed to attend a routine meeting on Nov. 22. Opposition negotiators said the government was protesting the opposition's decision to raise the issue in congress of the two in-laws of President Nicolas Maduro, who were convicted in New York last week of drug trafficking, according to The Wall Street Journal. Mr. Maduro and his officials haven't commented on the status of the talks. The Information Ministry didn't respond to request for comment. Since their start last month, the talks have led to the release of several jailed opposition activists and vague agreements on future elections but have failed to make any real progress toward solving the country's deep political and economic crisis, the report recalls. The lack of progress has caused growing frustration among many opposition leaders, who had halted large street protests and legal actions against Mr. Maduro to join the talks, the report notes. "Maduro got up from the table of the supposed dialogue!" opposition leader and former presidential candidate Henrique Capriles said in a Twitter posting, the report relays. "They [the government] don't want to fulfill any commitments," the posting added. During the talks, the opposition and the government have agreed to hold parliamentary elections in the contested state of Amazonas, which could give Mr. Maduro's opponents a supermajority in congress to enact sweeping new laws and fire ministers. It is unclear whether the elections will take place if the talks don't resume, the report relays. Some of the more hard-line opponents of Mr. Maduro already have called the opposition alliance, the Democratic Unity Roundtable, to resume street protests that were attracting hundreds of thousands of people last month, putting the government on the defensive, the report notes. "It was a mistake to abandon the street, but we can still mend our ways," opposition lawmaker Juan Andres Mejia said in a Twitter posting, the report discloses. Mr. Mejia has also called on the opposition-controlled congress to resume legal procedures against Mr. Maduro for supposedly abandoning his basic governing responsibilities, the report notes. The report says that the opposition alliance is expected to make a formal announcement on whether it will be prepared to resume the talks. The halting of the talks came during the visit to Caracas of Thomas Shannon, the head of political section at the U.S. Department of State and a prominent proponent of the dialogue, the report relays. Mr. Shannon will meet with both the opposition and Mr. Maduro's officials, according to the opposition leaders, the report adds. As reported in the Troubled Company Reporter-Latin America on July 5, 2016, Fitch Ratings affirmed Venezuela's Long-Term Foreign-and Local-Currency Issuer Default Ratings (LT FC/LC IDR) at 'CCC'. Fitch has also affirmed the sovereign's Short-Term Foreign Currency (ST FC) IDR at 'C' and country ceiling at 'CCC'. *********** 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 * * *