/raid1/www/Hosts/bankrupt/TCRLA_Public/161214.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
Wednesday, December 14, 2016, Vol. 17, No. 247
Headlines
A R G E N T I N A
ARGENTINA: To Develop Tunnel with $40 Million IDB Support
B R A Z I L
BRAZIL: Banco Cooperativo Sicredi Gets Aid From IIC Financing
COMPANHIA SIDERURGICA: Fitch Affirms 'B-' Long Term Currency IDRs
LIBRA TERMINAL: Fitch Lowers IDR to 'C' on Plan Announcement
OI SA: Open to Sweeter Terms for Creditors in Debt Deal
SUZANO PAPEL: Moody's Raises CFR to Ba1; Outlook Negative
* Brazil Police Seek New Charges Against Ex-Pres. Lula da Silva
C A Y M A N I S L A N D S
ALVE (SPC): Members' Final Meeting Set for Dec. 28
ARCTIC EXPRESS: Members' Final Meeting Set for Dec. 22
EMPIRE CAPITAL: Shareholders' Final Meeting Set for Dec. 15
GABOR LTD: Shareholders' Final Meeting Set for Dec. 15
GATEWAY CHINA: Members' Final Meeting Set for Dec. 13
GRANBACO INVESTMENT: Members' Final Meeting Set for Dec. 22
GRAVITY INVESTMENTS: Member to Hear Wind-Up Report on Dec. 22
IMARKETING SOLUTIONS: Member to Hear Wind-Up Report on Dec. 22
INVEST AD: Shareholders' Final Meeting Set for Dec. 22
JACO LTD: Members' Final Meeting Set for Dec. 22
MILLA INVESTMENT: Shareholders' Final Meeting Set for Dec. 19
NET GLOBE: Member to Hear Wind-Up Report on Dec. 22
PCM LIMITED: Shareholder to Hear Wind-Up Report on Dec. 13
SWISS-ASIA GROWTH: Shareholder to Hear Wind-Up Report on Dec. 19
E C U A D O R
ECUADOR: Fitch Assigns 'B' Rating to $750MM Notes Due 2026
H O N D U R A S
INVERSIONES ATLANTIDA: Fitch Publishes 'B' Long-Term IDR
M E X I C O
ARENDAL S DE RL: Fitch Affirms Then Withdraws 'RD' IDR
DER NEUE: Fitch Affirms 'B' Insurer Financial Strength Rating
P U E R T O R I C O
PUERTO RICO AQUEDUCT: Fitch Keeps 'CC' Bond Ratings on Watch Neg.
T R I N I D A D & T O B A G O
TRINIDAD & TOBAGO: Banks Ready to Lend TT$5 Billion
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: To Develop Tunnel with $40 Million IDB Support
---------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a $40
million loan that will allow for bidding to begin for the Agua
Negra tunnel, which will connect San Juan province in Argentina
with that of Coquimbo in Chile. The tunnel is key to improving
trade integration between the two countries and the rest of
Mercosur through a new corridor that will connect the Atlantic and
the Pacific from Porto Alegre, Brazil, west to Coquimbo, Chile.
The Structuring Program for the Paso de Agua Negra International
Tunnel (PETAN by its acronym in Spanish) will finance the
structuring and preparation of the project, assistance to the
authorities of both countries, including legal, technical and
environmental consulting, and institutional strengthening, as well
as the final engineering design for the tunnel.
PETAN is the first IDB support program for Argentina and Chile in
the preparation of a series loans for this engineering project, as
construction of the tunnel will cost an estimated $1.5 billion
over eight a half years. The current Agua Negra mountain pass,
located 4,765 meters above sea level, is used by between 8,000 and
10,500 vehicles a year, and is not equipped to handle freight.
What is more, between May and October it is closed because of
snow. The main passage between Argentina and Chile, the Mendoza-
Valpara°so route through the Cristo Redentor Pass, is also
affected frequently by bad weather and forced to close 30 to 40
days a year, at a cost of $1.5 million a day.
Viability studies on cross-border tunnels in the region have been
carried out in an effort to resolve this problem. Of all the
routes studied, the Paso de Agua Negra stands out as it lies along
an ocean-to-ocean corridor with great potential and would
represent a new logistical link between Porto Alegre (Brazil) on
the Atlantic side and Coquimbo (Chile) on the Pacific.
The Agua Negra tunnel will be 13.9 kilometers long and stand at an
altitude of 3,620 to 4,085 meters above sea level. It will be able
to handle freight trucks, reducing the length of the current
passage by 40 kilometers, increasing road safety and cutting
travel time by about three hours.
The new tunnel project is part of efforts by both countries to
develop regional integration strategies in order to plan and
connect their infrastructure. The main goal of these efforts is to
strengthen and facilitate trade flows between the two countries,
thus contributing to regional economic growth. Economic
integration between Mercosur and Chile is one of the greatest
potential sources of economic growth in the region. It raises the
prospect of giving countries along the Atlantic basin access to
ports on the Pacific coast -- and access for Chile to ports on the
Atlantic -- stimulating trade with bustling markets in Asia.
The PETAN comprises two simultaneous technical cooperation loans
of $20 million, one each for Argentina and Chile, both with an
implementation period of two years.
As reported in the Troubled Company Reporter-Latin America on
Oct. 17, 2016, Fitch Ratings has affirmed Argentina's sovereign
ratings as:
-- Long-term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'B', Outlook Stable;
-- Senior unsecured Foreign Currency bonds at 'B';
-- Country Ceiling at 'B';
-- Short-Term Foreign and Local Currency IDRs at 'B'.
===========
B R A Z I L
===========
BRAZIL: Banco Cooperativo Sicredi Gets Aid From IIC Financing
-------------------------------------------------------------
The Inter-American Investment Corporation (IIC), acting on behalf
of the Inter-American Development Bank (IDB) Group, has joined
efforts with Banco Cooperativo Sicredi S.A to provide rural credit
for Brazilian smallholder farmers and finance their low carbon
agriculture practices.
Through an A Loan of the equivalent in Brazilian Reais of US$50
million, the IIC will support an institution strategically
committed to financial inclusion in rural areas, increasing food
security and benefiting the environment by promoting the use of
low carbon technologies.
Banco Cooperativo Sicredi is part of the Sicredi System that
serves about three million members in Brazil through a network of
nearly 100 cooperatives. The bank acts as an intermediary between
financial markets, third party financial institutions and the
cooperatives it finances.
This is the first ever IDB Group variable rate loan in Brazilian
reais. The longer tenor of 4 years provided by the IIC is usually
not available in the local commercial market and will be passed on
to the cooperatives and ultimately on to the rural small farmers
beneficiaries.
Additionally, the IDB Group will offer the client the option of
participating in a technical cooperation to train its staff in low
carbon agriculture practices and to incentive small rural farmers
to adopt climate friendly technologies through a results-based
financing mechanism.
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the
Inter-American Development Bank (IDB) Group, is a multilateral
development bank committed to supporting the private sector in
Latin America and the Caribbean. The IIC finances sustainable
enterprises and projects to achieve financial results that
maximize social and environmental development for the region. With
a current portfolio of US$7 billion under management and 330
clients in 20 countries, the IIC works across sectors to provide
innovative financial solutions and advisory services that meet the
evolving demands of its clients.
As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2016, Fitch Ratings has affirmed Brazil's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'/
Negative Outlook. Brazil's senior unsecured Foreign- and Local-
Currency bonds are also affirmed at 'BB'. The Country Ceiling is
affirmed at 'BB+' and the Short-Term Foreign and Local-Currency
IDRs at 'B'.
COMPANHIA SIDERURGICA: Fitch Affirms 'B-' Long Term Currency IDRs
-----------------------------------------------------------------
Fitch Ratings has affirmed Companhia Siderurgica Nacional's (CSN)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'B-'. Fitch has also affirmed CSN's National Scale rating at
'BB-(bra)'. The Rating Outlook remains Negative.
The 'B-' rating reflects CSN's extremely leveraged capital
structure and its limited ability to generate substantial cash
flow from its steel business in Brazil. The recovery in iron ore
prices and an improved outlook for iron ore from earlier in 2016
have bolstered cash flow generation from its iron ore business,
and should place the company in a better position to negotiate
asset sales during the next 12 months.
The Negative Outlook continues to reflect high refinancing risk
between 2018 and 2020. Fitch's base case assumes that CSN will be
able to complete a refinancing of at least BRL5 billion of debt
due in 2018 with local banks during the first half of 2017.
Failure to progress within this timeframe would result in a
downgrade to 'CCC'.
KEY RATING DRIVERS
Severe Deterioration in Local Steel Industry; Limited Improvement
in 2017
Brazilian steel demand is expected to decline 16% during 2016,
reaching 17.9 million tons, after dropping 17% in 2015. Current
levels are similar to industry performance of 2009. Given the
still poor perspectives for improvement in Brazil's GDP during
2017, local steel demand is expected to recover a modest 3.5%,
according to Instituto Aco Brasil. Fitch projects that CSN's local
sales volumes will drop by 10% in 2016, after falling by 20% in
2015, and then expand by 5% during 2017, reflecting the restart of
its second blast furnace in third quarter 2016 (3Q16).
A bright spot for the local industry is that steel producers have
been able to apply consecutive price increases since the end of
2Q16 due to a drop in inventory levels, which have supported
improved operating results during 3Q16. In the case of CSN, the
company announced 10% price increases in May, June, and July and
recently pushed prices up by an additional 5%. Fitch expects price
increases of between 8% to 10% during 2017, excluding a more
meaningful double-digit increase to automakers.
Challenge to Sustain Rebound in CFFO; Iron Ore Price Dynamics is
Key
The deterioration of CSN's operating cash flow largely reflects
the combination of sharp declines in steel volumes, low iron ore
prices, and high interest expenses. Short-term recovery relies on
the ability to continue to pass along price increases in the
domestic steel segment, manageable coal costs, and on sustained
iron ore prices above USD60 per ton.
Fitch's base case scenario projects CSN's adjusted EBITDA at
approximately BRL3.7 billion for 2016 and BRL3.2 billion in 2017,
considering Fitch's iron ore price deck of USD45. CSN's operating
performance and cash flow generation are largely sensitive to iron
ore price. If iron ore prices, which are currently at over USD80,
remain robust and average USD60 throughout next year, the
company's 2017 EBITDA would be BRL4.8 billion.
During the LTM ended Sept. 30, 2016, CSN generated BRL3.3 billion
of adjusted EBITDA, and CFFO of BRL725 million. These results
compare with BRL2.9 billion and BRL2.1 billion, respectively, in
2015, which benefited from an extraordinary non-recurring dividend
of BRL595 million received from the corporate reorganization of
Congonhas Minerios.
Considering the current capital structure and the annual BRL2.9
billion interest burden CSN faces, Fitch estimates CSN's FCF to
remain negative at around BRL1 billion during 2017, considering
Fitch's iron ore price deck of USD45 per ton. At USD60 per ton,
FCF would be positive by BRL460 million.
Fitch's base case scenario considers capex of BRL1.1 billion,
which represents a steady decline from BRL1.6 billion in 2016 and
2015. During 2016, CSN efficiently managed working capital,
leading to an inflow that resulted in positive operating cash
flow. Going forward, working capital requirements will be neutral
to negative, as inventories are already at low levels, and
accounts receivable might be pressured in order to support
continued sales expansion.
Unsustainable Capital Structure; Asset Sale Remains Paramount to
Avoid Debt Restructuring
Fitch's base case scenario estimates CSN's net leverage to be
around 6.9x during 2016. Absent an asset sale this ratio will
increase to 8.4x at Fitch's iron ore price deck of USD45 per ton.
Considering the range of iron ore prices of USD50 to USD60 per
ton, net leverage could decline to the range of 5.2x to 7.0x
during 2017. Per Fitch's criteria, CSN's net leverage was 7.7x as
of the LTM period ended Sept. 30 2016, an improvement from 8.7x at
the end of 2015, mostly reflecting the impact of appreciation of
the BRL on the company's total debt.
Fitch believes the most likely asset disposal to be completed by
CSN will be the sale of a minority stake in Congonhas Minerios
that could represent an inflow of around BRL8 billion. On a pro
forma basis, net leverage ratios during 2017 would decline to 5.7x
at Fitch's iron ore price deck of USD45 per ton. Given the range
of USD50-USD60 per ton for iron ore prices in 2017, net leverage
would be in the range of 3.4x to 4.7x.
Elevated Refinancing Risks
CSN faces an unsustainable debt amortization profile. As of Sept.
30, 2016, CSN reported cash and cash equivalents of BRL5.4 billion
compared to total debt of BRL30.3 billion. The company faces debt
amortization of BRL2.3 billion in 2016/17, BRL5.6 billion in 2018,
BRL14.4 billion between 2019 and 2020 (BRL6.4 billion of cross-
border issuances) and BRL8.1 billion after 2021. Fitch's base case
scenario assumes that the CSN will be able to roll over at least
BRL5 billion of local bank debt during the first half of 2017.
Fitch considers the asset sale to be paramount to avoid a debt
restructuring. Successful asset sales of around BRL8 billion would
lead to an improvement in leverage ratios during 2018, potentially
allowing CSN to refinance its bonds issuances due 2019 and 2020.
KEY ASSUMPTIONS
-- 1% decrease in steel volumes sold during 2016; expansion of
5% in 2017
-- 18% increase in iron ore volumes sold during 2016 and 3%
increase in 2017
-- Average iron ore price of USD56 per ton during 2016 and
Fitch's price deck of USD45 per ton in 2017
-- EBITDA of BRL3.7 billion in 2016 and BRL3.2 billion in 2017
-- Successful refinancing of 2018's local banking debt
-- No dividends paid in 2016 and 2017
RATING SENSITIVITIES
The inability to refinance the 2018 local banking debt during 1H17
would lead to a downgrade of CSN's ratings. Further deterioration
of the steel industry in Brazil, or inability to proceed with
price increases would also pressure free cash flow generation and
liquidity, and consequently the ratings.
A revision in the Rating Outlook to Stable could occur if CSN is
successful in its 2018 debt refinancing in conjunction with
improving industry fundamentals, which would lead FCF
stabilization. Rating upgrades would largely depend on the size of
the asset sales and solid industry fundamentals.
LIQUIDITY
CSN has historically maintained a robust cash position.
Nevertheless, its debt amortization schedule is unsustainable, as
highlighted above. As of Sept. 30, 2016, CSN had BRL5.4 billion of
cash and marketable securities and BRL30.3 billion of total debt.
CSN's debt primarily consists of prepayment export financings
(37%), local bank loans (24%), senior notes (18%) and perpetual
bonds (11%).
FULL LIST OF RATING ACTIONS
Fitch has affirmed the following ratings:
-- Long-Term Foreign and Local Currency IDRs at 'B-';
-- National long-term rating at 'BB-(bra)' ;
-- CSN Islands XI senior unsecured long-term rating guaranteed
by CSN at 'B-/RR4';
-- CSN Islands XII senior unsecured long-term rating guaranteed
by CSN at 'B-/RR4';
-- CSN Resources S.A. senior unsecured USD note long-term
rating guaranteed by CSN at 'B-/RR4'.
The Rating Outlook remains Negative.
LIBRA TERMINAL: Fitch Lowers IDR to 'C' on Plan Announcement
------------------------------------------------------------
Fitch Ratings has downgraded Libra Terminal Rio S.A.'s (Libra Rio)
Long-Term Issuer Default Rating (IDR) to 'C' from 'CCC' and
National Long-Term Rating to 'C(bra)' from 'CCC(bra)' following
the company's announcement that it is submitting a formal plan to
restructure its existing debts. Fitch has also downgraded the
rating assigned to the 1a Emissao de debentures in total amount of
BRL270 million due 2019 to 'C(bra)' from 'CCC(bra)'.
The downgrade is driven by the imminent default on financial
obligations given critical cash flow generation and the
expectation that the proposal will include material changes to
existing terms with current debt holders, particularly the
extension of maturity dates, leading it to be considered a
Distressed Debt Exchange (DDE) according to Fitch's applicable
criteria. The announcement proposing the restructuring was made
on Nov. 30, 2016, with an investor assembly called for Dec. 15,
2016. Libra Rio management's proposal is expected to include a
new payment schedule to the debentures and other existing debt,
replacement of guarantees, and proposal of new covenants,
representations, and/or warranties.
KEY RATING DRIVERS
Libra Rio's rating is driven by the consolidated profile of Libra
Holding S.A., given the cross default clauses between operating
subsidiaries Libra Rio and Libra Terminais Santos S.A. (Libra
Santos, not rated), and the guarantees provided by Libra Holding.
This supports a view that strong operational and financial
linkages exist between the different operating companies of the
group. Libra Rio is the key EBITDA generator of the Libra Group.
Libra Holding has no financial debt, but it is strongly committed
to the OpCos, providing guarantees to debts at Libra Santos and
Libra Rio.
Consolidated adjusted net debt to EBITDAR ratio stood at 6.3x in
2015 and is expected to spike to record levels given the severe
deterioration in EBITDA, from BRL360 million in 2013 to negative
levels in 2016. The Issuer's ability to honor the high interest
burden and pay/refinance 2017 maturities of approximately
BRL500 million, coupled with capex obligations following early
renewal of the leasing agreement for Libra Santos, is severely
compromised. As of September 2016, the Issuer held total
consolidated cash of BRL204.1 million, down from BRL397.8 million
in December 2015.
RATING SENSITIVITIES
If the restructuring plan is adhered to, the Issuer ratings will
be downgraded to Restricted Default (RD), upon completion of the
DDE, while the Issue Rating assigned to the debentures will be
downgraded to 'D(bra)'. Once sufficient information is available,
the 'RD' rating will be re-rated to reflect the appropriate IDR
for the Issuer's post-exchange capital structure, risk profile,
and prospects in accordance with relevant Fitch criteria.
OI SA: Open to Sweeter Terms for Creditors in Debt Deal
-------------------------------------------------------
The Financial Times reports that Oi SA, the Brazilian telecom
operator at the centre of a BRL65 billion debt default, the
largest in the country's history, is likely to consider more
favourable debt-for-equity swap conditions for creditors in talks.
Oi chief executive officer Marco Schroeder said he was hearing
creditors were discussing among themselves a proposal to convert
some of the estimated BRL32 billion owed to bondholders into
equity immediately and restructure the remainder into 10-year
notes rather than accepting three-year convertible bonds as
earlier proposed by the company, according to The Financial Times.
"This could be an important idea because it would allow the
company to extend the debt. I would have more than 10 years to pay
the debt so that would free me to make investments," Mr. Schroeder
said in an interview, the report notes.
The report says that the comments signal Oi's shareholders might
be willing to offer more flexible terms in the group's judicial
recuperation -- Brazil's equivalent of the Chapter 11 process in
the US -- after an earlier restructuring proposal from the company
outraged creditors.
Oi, Brazil's biggest fixed line operator, filed for bankruptcy
protection in June under the weight of a series of highly
leveraged mergers and acquisitions, a tough regulatory regime and
the country's sinking economy, the report relays.
Oi offered in September to convert bondholders' debt into BRL10
billion in convertible bonds, a roughly 70 per cent creditor
haircut, the report notes.
Creditors attacked the proposal as offering all the upside to the
existing shareholders, who could redeem the bonds at the end of
the three years if the company performed well without losing any
equity in the group, the report says.
Creditors had originally wanted a debt-for-equity swap of 80-85
per cent of the bonds outstanding, or equivalent to a minimum of
their face value of about BRL25 billion, said one person familiar
with the talks, the report relays.
But Mr. Schroeder hinted at greater flexibility amid concerns
among creditors and the government that a long drawn-out
negotiation could harm the company, the report discloses.
Some have even called for the government to intervene. Anatel,
the industry regulator, is itself an important creditor and has
the ability to interfere in telecom concessions under certain
circumstances, the report notes.
"It would involve [swapping] a piece of equity now," Mr. Schroeder
said of the easier terms for creditors under discussion, says the
report. "If it is confirmed [the creditors' alternative
restructuring offer], we will analyze this proposal."
The FT says Brazil's judicial reorganization process allows the
existing shareholders greater power over the process than they
might have in other jurisdictions. They remain in control of the
company during the process and are responsible for presenting the
restructuring plan.
Aside from the bondholders, Brazilian banks control an estimated
BRL11 billion of Oi's debt, export credit agencies and foreign
banks and other foreign creditors about BRL5 billion and Anatel
and the government up to BRL30 billion, the report says. The exact
number of how much it owes Anatel is under dispute, the report
discloses.
In a statement, advisers for the export credit agencies and other
ad hoc foreign creditors, led by FTI Consulting Canada, said they
were in talks with one of the bondholder groups represented by
advisers Moelis & Company with the involvement of a potential
external investor, Naguib Sawiris, the Egyptian billionaire, the
report relays.
They said an alternative restructuring plan was expected to be
presented to Oi by the Sawiris Group "within the next two weeks,"
the report notes.
But Mr. Schroeder said he did not believe a third- party investor
was crucial to any solution to the company's problems, the report
relays. "I won't connect a solution to the debt problem
automatically to the appearance of an investor," Mr. Schroeder
said, notes the report.
Equally important, in his view, was efforts by congress to amend
the concession system that governs Oi SA, the report discloses.
Considered out of date, the system requires the company to invest
in near obsolete technology, such as public phones, with severe
fines and penalties for failure to meet the requirements, the
report says.
Ojas N. Shah filed a Chapter 15 petition for Oi S.A. (Bankr.
S.D.N.Y. Case No. 16-11791), Oi Movel S.A. (Bankr. S.D.N.Y. Case
No. 16-11792), Telemar Norte Leste S.A. (Bankr. S.D.N.Y. Case No.
16-11793), and Oi Brasil Holdings Cooperatief U.A. (Bankr.
S.D.N.Y. Case No. 16-11794) on June 21, 2016. The case is
assigned to Judge Sean H. Lane.
The Chapter 15 Petitioner is represented by John K. Cunningham,
Esq., and Mark P. Franke, Esq., at White & Case LLP, in New York;
and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and Laura L.
Femino, Esq., at White & Case LLP, in Miami, Florida.
SUZANO PAPEL: Moody's Raises CFR to Ba1; Outlook Negative
---------------------------------------------------------
Moody's America Latina Ltda. has upgraded to Ba1 from Ba2 in the
global scale and to Aaa.br from Aa1.br in the national scale
Suzano Papel e Celulose S.A. corporate family ratings and the
ratings assigned to its senior unsecured notes. The outlook
changed to negative from stable.
Ratings upgraded:
Issuer: Suzano Papel e Celulose S.A.
LT Corporate Family Rating: to Ba1 from Ba2 (global scale)/to
Aaa.br from Aa1.br (national scale)
USD166 mil. notes due 2019: to Ba1 from Ba2 (global scale)/to
Aaa.br from Aa1.br (national scale)
USD18 mil. notes due 2024: to Ba1 from Ba2 (global scale)/to
Aaa.br from Aa1.br (national scale)
The outlook changed to negative from stable.
RATINGS RATIONALE
Suzano's upgrade to Ba1/Aaa.br reflects the improvement in the
company's credit metrics in the past couple of years, while
maintaining a solid liquidity position and continuing to implement
initiatives to reduce cash costs and ensure competitive access to
wood, its main raw input. Accordingly, Suzano's EBITDA margins
(incorporating Moody's standard adjustments) increased to 43.2% in
the LTM (Sep/16) from roughly 35% at the end of 2013, when the
greenfield project in the state of Maranhao started. Even though
lower hardwood pulp prices (decline of 22% YTD compared to 2015)
and the BRL appreciation earlier in 2016 have reduced
profitability, Moody's expects EBITDA margins to remain in the
35%-40% range in the next couple of years. Adjusted leverage, in
turn, has declined from a peak of 6.7x in 2013 to 3.5x in the LTM
ended September 2016. Although Moody's expects leverage to remain
close to current levels through 2017, assuming about the same
level (or a small decline) in pulp prices compared to those
observed in 2016, Suzano should be able to speed up its
deleveraging process from 2018 onwards.
Suzano's Ba1 rating now ranks one notch above Brazil's government
bond rating of Ba2. Granted only on an exceptional basis, the
notching represents a fundamental corporate profile that is
stronger than the sovereign's government bond rating. Despite
Suzano's asset concentration in Brazil and exposure to the
domestic economy, in particular through the paper business, the
company has a significant portion of revenues generated outside
Brazil, which limits the impacts of weak domestic economic
fundamentals. Besides, Suzano's strong liquidity profile and
comfortable debt amortization schedule gives financial flexibility
to face the challenging conditions of hardwood pulp markets in the
next couple of years, when new, low-cost capacity starting-up
should continue to pressure pulp prices.
Suzano's ratings incorporate the company's position as a low cost
producer of bleached eucalyptus kraft pulp (BEKP) and paper, with
leading positions in the global BEKP market and Brazilian printing
and writing paper and paperboard sectors. The company benefits
from a high level of vertical integration with substantial self-
sufficiency in wood fiber and energy, in addition to the proximity
of its pulp mills to its own forests and port facilities as well
as the favorable location of its paper plants within Brazil's most
industrialized region. Furthermore its diversity towards pulp and
paper translates into exposure to different market dynamics and
contributes to strong operating margins even amid a lower growth
outlook for the paper industry in Brazil. Additional rating
positives are the company's comfortable liquidity profile, with
cash balance at the end of September 2016 sufficient to cover
short term debt maturities by 2.6 times.
Constraining the ratings are the volatile nature of the pulp
industry, which represents around 65% of Suzano's revenues and the
still relatively high leverage compared to similarly-rated peers.
Furthermore, the weakness in the Brazilian economy limits volumes
and margins expansion in the paper segment.
The negative outlook reflects the outlook of Brazil's government
bond rating.
An upgrade on Suzano's rating is unlikely at this time due to the
current level of Brazil's government bond rating and would depend
on the maintenance of strong credit metrics, market presence and
diversification. Quantitatively, a positive action would also
require leverage -- as measured by Total Adjusted Gross Debt to
EBITDA -- to be below 3.0x and interest coverage -- expressed by
Adjusted EBITDA to Interest Expense -- to remain above 5x on a
consistent basis. Additionally, an upgrade would require a solid
liquidity profile and positive free cash flow generation on a
sustainable basis.
Negative pressure on the rating could result if adjusted leverage
remains above 4.0x for a prolonged period or if interest coverage
declines to below 3.5x without prospects for improving, and in
case the company's liquidity position deteriorates, becoming
insufficient to cover near term debt service requirements.
Headquartered in Salvador - Brazil, Suzano Papel e Celulose S.A.
is a leading low-cost producer of bleached eucalyptus market pulp,
printing and writing paper and paperboard, having reported
consolidated net revenues of BRL 10.1 billion (about USD 2.8
billion) in the last twelve months ending September 2016.
* Brazil Police Seek New Charges Against Ex-Pres. Lula da Silva
---------------------------------------------------------------
Luciana Magalhaes at The Wall Street Journal reports that
Brazilian police have asked prosecutors to charge former President
Luiz Inacio Lula da Silva, his wife and others for alleged
irregularities in the acquisition of land intended for the
construction of his think tank in Sao Paulo, according to Mr. da
Silva.
Mr. da Silva and one of his lawyers said in separate statements
that they were informed of the possible charges against both Mr.
da Silva and his wife and denied wrongdoing, according to The Wall
Street Journal. A spokesman for the federal police declined to
confirm the request.
Authorities said earlier this year they suspect a construction
company investigated in the sprawling anticorruption investigation
known as Operation Car Wash paid for the real estate for the
former president in exchange for benefits and contracts with
state-controlled oil company Petroleo Brasileiro SA, or Petrobras,
the report notes.
Mr. da Silva, who led Brazil between 2003 and 2010, already faces
trial in three criminal cases linked to the Car Wash probe
involving alleged embezzlement and influence peddling, the report
relays. Prosecutors say the former president was the mastermind
of a massive graft ring that skimmed billions from Petrobras. Mr.
da Silva has denied any wrongdoing, the report notes.
The land in Sao Paulo was to be used for the new headquarters of
the Instituto Lula, according to authorities, the report says.
Further details on the property weren't immediately available.
Prosecutors also asked for Mr. da Silva to be charged for allowing
the same construction firm to pay the rent for an apartment in the
building where the former president lives in the metropolitan area
of Sao Paulo, according to local reports, the WSJ notes.
A spokesman for the Instituto Lula confirmed the rented apartment
is under investigation, but said all the expenses related to the
unit were paid by Mr. da Silva and not by third parties, the
report relays. In the statement posted on his Facebook page, Mr.
da Silva denied any wrongdoing, the report notes.
Federal prosecutors also filed criminal charges against the former
president for allegedly using his influence for financial gain
after he left office, the report relays. If a judge accepts those
charges, Mr. da Silva will face a fourth trial. Mr. da Silva has
denied wrongdoing, the report notes.
==========================
C A Y M A N I S L A N D S
==========================
ALVE (SPC): Members' Final Meeting Set for Dec. 28
--------------------------------------------------
The members of Alve (SPC) Ltd. will hold their final meeting on
Dec. 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 liquidators are:
Desmond Campbell
Stuart Brankin
Circumference FS (Cayman) Ltd.
P.O. Box 32322 Grand Cayman KY1-1209
Cayman Islands
Telephone: (345) 814 0711
ARCTIC EXPRESS: Members' Final Meeting Set for Dec. 22
------------------------------------------------------
The members of Arctic Express Investments Limited will hold their
final meeting on Dec. 22, 2016, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
EMPIRE CAPITAL: Shareholders' Final Meeting Set for Dec. 15
-----------------------------------------------------------
The shareholders of Empire Capital Partners Enhanced Master Fund,
Ltd. will hold their final meeting on Dec. 15, 2016, at
10:10 a.m., to receive the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Empire Capital Management, L.L.C.
c/o One Gorham Island
Suite 201
Westport
Connecticut 06880
United States of America
Telephone: +1 (203) 454 1019
GABOR LTD: Shareholders' Final Meeting Set for Dec. 15
------------------------------------------------------
The shareholders of Gabor Ltd will hold their final meeting on
Dec. 15, 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:
T.C. Directors (Channel Islands) Limited
c/o Emma Ferbrache
Lefebvre Court Lefebvre Street
St. Peter Port
Guernsey, GY1 4BS
P.O. Box 87
Telephone: +44 (0) 1481 702776
Facsimile: +44 (0) 1481 726660
GATEWAY CHINA: Members' Final Meeting Set for Dec. 13
-----------------------------------------------------
The members of Gateway China Fund I will hold their final meeting
on Dec. 13, 2016, at 9:00 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Richard Fear
c/o Kevin Butler
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
Telephone: (345) 814 7374
Facsimile: (345) 945 3902
GRANBACO INVESTMENT: Members' Final Meeting Set for Dec. 22
-----------------------------------------------------------
The members of Granbaco Investment Company will hold their final
meeting on Dec. 22, 2016, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
GRAVITY INVESTMENTS: Member to Hear Wind-Up Report on Dec. 22
-------------------------------------------------------------
The member of Gravity Investments Limited will hear on Dec. 22,
2016, at 9:00 a.m., the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
Neil Montgomery
c/o Genesis Trust & Corporate Services Ltd.
Elgin Court, 2nd Floor
Elgin Avenue George Town
Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 945 3466
Facsimile: (345) 945 3470
IMARKETING SOLUTIONS: Member to Hear Wind-Up Report on Dec. 22
--------------------------------------------------------------
The member of Imarketing Solutions Ltd. will hear on Dec. 22,
2016, at 11:00 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Neil Montgomery
c/o Genesis Trust & Corporate Services Ltd.
Elgin Court, 2nd Floor
Elgin Avenue George Town
Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 945 3466
Facsimile: (345) 945 3470
INVEST AD: Shareholders' Final Meeting Set for Dec. 22
------------------------------------------------------
The shareholders of Invest AD - Iraq Opportunity Fund will hold
their final meeting on Dec. 22, 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:
Ken Stewart
c/o Apex Fund Services (Cayman) Limited
161a Artillery Court
P.O. Box 10085 Grand Cayman, KY1 1001
Cayman Islands
JACO LTD: Members' Final Meeting Set for Dec. 22
------------------------------------------------
The members of Jaco Ltd. will hold their final meeting on Dec. 22,
2016, to receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
MILLA INVESTMENT: Shareholders' Final Meeting Set for Dec. 19
-------------------------------------------------------------
The shareholders of Milla Investment Inc. will hold their final
meeting on Dec. 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:
Avalon Ltd.
Landmark Square, 1st Floor, 64 Earth Close
P.O. Box 715 Grand Cayman KY1-1107
Cayman Islands
Facsimile: +1 (345) 769-9351
NET GLOBE: Member to Hear Wind-Up Report on Dec. 22
---------------------------------------------------
The member of Net Globe will hear on Dec. 22, 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:
Neil Montgomery
c/o Genesis Trust & Corporate Services Ltd.
Elgin Court, 2nd Floor
Elgin Avenue George Town
Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 945 3466
Facsimile: (345) 945 3470
PCM LIMITED: Shareholder to Hear Wind-Up Report on Dec. 13
----------------------------------------------------------
The shareholder of PCM Limited will hear on Dec. 13, 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:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
SWISS-ASIA GROWTH: Shareholder to Hear Wind-Up Report on Dec. 19
----------------------------------------------------------------
The shareholder of Swiss-Asia Growth Fund will hear on Dec. 19,
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:
Joanna Boo Si Yan
16 Walmer Drive
Singapore 555041
Telephone + 65 6887 5790
Facsimile: + 65 6887 5767
=============
E C U A D O R
=============
ECUADOR: Fitch Assigns 'B' Rating to $750MM Notes Due 2026
----------------------------------------------------------
Fitch Ratings has assigned a 'B' rating to Ecuador's $750 million
notes maturing 2026.
Proceeds from this issuance will be used for general budgetary
financing purposes.
KEY RATING DRIVERS
The bond rating is in line with the Ecuador's 'B' Long-Term
Foreign Currency Issuer Default Rating (IDR).
RATING SENSITIVITIES
The bond rating would be sensitive to any changes in the Ecuador's
Long-term Foreign Currency IDR.
Fitch affirmed Ecuador's Long-term Foreign Currency IDR on
Aug. 25, 2016, and revised the Rating Outlook to Negative.
===============
H O N D U R A S
===============
INVERSIONES ATLANTIDA: Fitch Publishes 'B' Long-Term IDR
--------------------------------------------------------
Fitch Ratings has published Inversiones Atlantida, S.A.'s
(Invatlan) Long-Term Issuer Default Ratings (IDRs) of 'B'.
KEY RATING DRIVERS
IDRs
Invatlan's IDRs reflect the financial profile of its main
subsidiaries, mainly Banco Atlantida (Atlantida), rated 'A+(hon)'
on the national scale by Fitch, which has demonstrated a sound
financial performance throughout the economic cycle. The ratings
also consider Invatlan's high operational integration with its
operating subsidiaries, as well as the light restrictions on
subsidiaries upstreaming liquidity to Invatlan. Invatlan's
ratings also reflect the expected moderate levels of double
leverage.
Invatlan's creditworthiness is aligned with its main operating
subsidiary, Atlantida, since its status as a financial holding
company creates a natural dependence on the dividend flows from
its subsidiaries to meet its financial commitments. This is
particularly relevant because of Invatlan's expected moderate
levels of double leverage defined as equity investments in
subsidiaries plus the holding company's intangibles, divided by
the holdco's common equity.
Fitch expects Invatlan's double-leverage ratio to increase to 120%
due to the holdco's future plans to issue USD125 million of debt.
According to Fitch's criteria, a double-leverage ratio of 120% or
below indicates a manageable level of debt service costs, hence
supporting the equalization of Invatlan's creditworthiness to that
of Atlantida.
The agency considers as positive for Invatlan that Honduran
regulations do not establish restrictions to capital and liquidity
fungibility. Thus, Invatlan's subsidiaries can pay dividends to
their holdco or inject liquidity efficiently. Dividend flows from
its subsidiaries are expected to be ample and more than sufficient
to service the entity's debt issue.
Atlantida is the second largest bank in the country, with an
important position in the corporate lending market. Its ample
footprint helps serve clients nationwide and provides a solid base
for expanding the bank's operations. Atlantida's financial
performance is highly sensitive to Honduras' operating
environment. The bank's ratings consider the pressured quality of
its loan portfolio, solid local franchise, good operating
profitability, low funding cost, adequate liquidity and sound
capitalization.
RATING SENSITIVITIES
IDRs
Invatlan's IDRs will be downgraded by one notch if the company's
double-leverage ratio is sustained above 120% once the debt
issuance takes place.
Invatlan's creditworthiness will likely move in line with that of
its main subsidiary, Atlantida. Although it is not Fitch's base
case scenario, a downgrade could also take place due to a
significant weakening of Atlantida's financial performance and
company profile. This includes a deterioration of asset quality
that negatively affects operating profitability and a significant
weakening in the bank's capital position that leads to a reduction
in dividend payments available to service Invatlan's debt.
The ratings published are:
Inversiones Atlantida, S.A.
-- Long-Term Foreign Currency IDR of 'B'; Outlook Stable;
-- Short-Term Foreign Currency of 'B';
-- Long-Term Local Currency IDR of 'B'; Outlook Stable;
-- Short-Term Local Currency of 'B'.
===========
M E X I C O
===========
ARENDAL S DE RL: Fitch Affirms Then Withdraws 'RD' IDR
------------------------------------------------------
Fitch Ratings has affirmed Arendal, S. de R.L. de C.V.'s Long-term
Foreign and Local Currency Issuer Default Ratings at 'RD' and the
long-term rating of Arendal's outstanding senior unsecured debt
issuances totaling USD100 million at 'C/RR4'. Fitch has
simultaneously withdrawn all of Arendal's ratings.
Fitch has chosen to withdraw Arendal's ratings for commercial
reasons.
DER NEUE: Fitch Affirms 'B' Insurer Financial Strength Rating
-------------------------------------------------------------
Fitch Ratings has affirmed Der Neue Horizont Re, S.A.'s 'B'
International Insurer Financial Strength (IFS) rating and National
Scale IFS rating at 'B'/'BBB-(mex)'. The Rating Outlook is
Stable.
KEY RATING DRIVERS
The ratings were assigned based on a stand-alone approach which
indicates that the company is rated strictly based on its
individual financial profile. In this case, Der Neue's assessment
is reflected in the IFS. Fitch's decision to use an individual
approach is based on the lack of data with which to determine
stakeholder's credit profile and inclination to provide support
whenever the company is under pressure. Also, external barriers
may exist restricting capital/resources transfer among
subsidiaries.
Der Neue became authorized by Mexico's Insurance and Surety
National Commission (CNSF; on Dec. 13, 2014); as of September
2016, the company had grown its capital to USD17.1 million. At
year-end 2015, Der Neue was the second largest company in terms of
premium taken in the agricultural sector. Fitch recognizes that
market conditions benefit company growth; nevertheless, any
expansion must be consistent with both financial and operational
capacities of the company. The inherent lack of a track record is
a significant limitation on the current ratings.
The company's financial performance is initially limited by risks
faced by a start-up company in a highly competitive market. In
this sense, Der Neue's capacity to generate a critical mass in
premiums that allow it to absorb operating costs and claims, in a
competitive market and limited to product marketing, will be
determining for future performance of the insurer. Also,
considering the low-risk retention plan (less than 5% of
premiums), future development relies on its ability to retain a
good reinsurance portfolio and also good underwriting results in
order to maximize the commission income which is a key portion of
its expected recurring revenues.
As of September 2016, the company has not required further capital
injection different from the that needed to start operations of
MXN92.5 million (USD4.8 million) Through the Board of Directors,
underwriting is limited by the appetite defined by its
stakeholders, which we consider a conservative approach.
Liabilities-to-assets is 1.69x, lower than the market's five-year
average of 5.63x; also, earned net premium plus adjusted assets by
equity was 1.59x, favorable when compared to the sector's average
of 6.72x. The company business plan calls for maximum leverage
(liabilities-to-equity) of 3.0x, while the expected low retention
level should yield a ratio of net retained premiums-to-equity no
higher than 26%.
Der Neue's equity level to leverage its growth strategy in the
short term is adequate and aligned with assumed risks, though the
projections provided may be sensitive to changes in terms of
expected claims ratios, expenses, or cost of the reinsurance
program. Fitch will monitor how performance of the company may
affect its internal capital generation.
The investment portfolio is concentrated in Mexican federal
government instruments; 60% is concentrated in CETES payable in 28
days, the remaining is invested in debt certificates. As of
September 2016, liquid assets by reserves was 1.35x, favorable
compared to the sector's five-year average of 0.95x. The company
expects to preserve its current investment policy maximizing low-
risk federal government instruments as the vast majority of its
investments.
The company manages a diversified reinsurance program through
quota share contracts for the agricultural sector composed of:
Swiss Re, Partner Re, Liberty Syndicates, Oddysey Re,
Reaseguradora Patria, Qatar Re, TransAtlantic Re, Barents Re, and
Navigators Re; Swiss Re is the major participant. Maximum legal
retention of the company represents 1.5% of equity, which in
Fitch's opinion is adequate. Despite the former, Fitch
acknowledges that the presented business plan relies heavily on a
good-quality and wide-scope reinsurance program, which is a
challenge to maintain over time for a recently started company.
Changes in the reinsurance program may arise from changes in the
current ratings.
RATING SENSITIVITIES
Upside potential is somehow tied to the successful realization of
the company's business plan in the next two years and its ability
to post positive operating results, the good quality of its
investments, and a conservative reinsurance program. Failure to
deliver results as indicated in its business plans in terms of
premium growth, retention levels and overall profitability and
capitalization, may result in a rating downgrade.
FULL LIST OF RATING ACTIONS
Fitch has affirmed these ratings:
Der Neue Horizont Re, S.A.
-- Insurer Financial Strength at 'B';
-- National IFS at 'BBB-(mex)'.
======================
P U E R T O R I C O
======================
PUERTO RICO AQUEDUCT: Fitch Keeps 'CC' Bond Ratings on Watch Neg.
----------------------------------------------------------------
Fitch Ratings maintains these Puerto Rico Aqueduct and Sewer
Authority (PRASA) bonds on Rating Watch Negative:
-- Approximately $3.3 billion in outstanding senior lien
revenue bonds, series A, B, 2012A and 2012B 'CC';
-- Approximately $285 million in outstanding revenue refunding
bonds, series 2008A and 2008B (guaranteed by the
Commonwealth of Puerto Rico) 'CC'.
SECURITY
The senior bonds are secured by a gross lien of all authority
revenues related to PRASA's combined water and sewer system (the
system), as defined in the amended master agreement of trust,
senior to all other debt or expenses of the authority. The series
2008A and 2008B bonds are payable from system revenues subordinate
to all PRASA obligations except Commonwealth of Puerto Rico (the
commonwealth) supported obligations and obligations payable from
surplus revenues. The series 2008A and 2008B revenue refunding
bonds are further secured by a guaranty of the commonwealth.
Currently, no credit is given for the commonwealth guaranty.
KEY RATING DRIVERS
NEGATIVE WATCH MAINTAINED: Maintenance of the Negative Watch
continues to reflect that a restructuring of PRASA's debt is
probable. PRASA has historically been excluded from discussions
of a broader restructuring of commonwealth debt, although PRASA's
market access difficulties and strained cash flows heighten the
risk of a possible restructuring of its debt. A resolution by the
Puerto Rico Oversight, Management, and Economic Stability Act
(PROMESA) Financial Oversight and Management Board (FOMB) to
include PRASA as a covered entity under PROMESA further heightens
the risk of restructuring.
CASH FLOW CONCERNS REMAIN: PRASA's net cash receipts and existing
funds on hand remain insufficient to meet long-term working
capital, debt service and other funding requirements. PRASA's
financial estimates for fiscals 2017-2026 indicate annual revenue
shortfalls of between $287 million to $440 million, including
funding for the capital improvement program and assuming no market
access.
FISCAL 2015 AUDIT RELEASED: PRASA's most recent audited
performance (fiscal year ended June 30, 2015) was weak as Fitch-
calculated debt service fell to 0.97x, cash on hand totaled only
20 days and free cash to depreciation was a negative 4%. PRASA's
auditor (Kevane Grant Thornton LLP) has also noted that financial
difficulties experienced by the authority raise substantial doubt
about its ability to continue as a going concern.
FISCAL 2016 PERFORMANCE REMAINS WEAK: For the 12 months ended
June 30, 2016, PRASA estimates that net operating income,
excluding $90 million transferred from the rate stabilization fund
(RSF), equaled $359 million, down 15% from the prior year on lower
revenues affected by severe drought conditions. Resulting debt
service coverage on senior lien bonds as calculated by Fitch was
1.36x, including $90 million related to a bank term loan and the
$90 million RSF transfer, while total debt service coverage was
1.05x. For the year PRASA also suspended its capital improvement
program for lack of funds and has indicated that it currently owes
over $100 million in debt to contractors and vendors.
RATING SENSITIVITIES
ANNOUNCEMENT OF DEBT RESTRUCTURING: Any negotiated restructuring
resolution would be evaluated for its effect on bondholders. Any
restructuring that does not result in full and timely payment of
bonds according to the original terms promised, would result in a
downgrade to 'C' upon agreement by the required holders and 'D'
upon execution.
================================
T R I N I D A D & T O B A G O
================================
TRINIDAD & TOBAGO: Banks Ready to Lend TT$5 Billion
---------------------------------------------------
Trinidad Express reports that two of the region's largest
development banks are lining up to lend Trinidad and Tobago over
US$736.7 million (TT$5 billion).
The Latin American Development Bank, better known by its Spanish
acronym CAF, approved since July, a US$300 million loan to T&T,
and on December 8, the Caribbean Development Bank (CDB) approved a
"strategy" to lend US$436.7 million for the period 2017 to 2021,
according to Trinidad Express.
In so doing, the CDB increased the "envelope" from which T&T can
take by nine per cent, compared to its previous 2011-2014
"strategy" when it approved US$401 million, the report notes.
"This strategy underscores CDB's long-standing commitment to
helping Trinidad and Tobago achieve its development priorities.
"It will provide focused support that aims to unlock the country's
potential for economic and social development, improve
competitiveness, promote good governance, and drive environmental
sustainability," said CDB director of Economics Dr. Justin Ram in
a December 8 statement obtained by Trinidad Express.
***********
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 * * *