/raid1/www/Hosts/bankrupt/TCRLA_Public/170328.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
Tuesday, March 28, 2017, Vol. 18, No. 62
Headlines
A R G E N T I N A
ARGENTINA: Teachers' Strikes Deepen Troubles for President
B E L I Z E
BELIZE: S&P Ups LT Foreign Currency Rating to 'B-'; Outlook Stable
B R A Z I L
BRAZIL: China to Reopen Consumer Market to Brazilian Meat Exports
ECO SECURITIZADORA: Moody's Assigns (P)Ba1 Rating to Agri Certs.
C A Y M A N I S L A N D S
ARCODA GLOBAL: Creditors' Proofs of Debt Due March 29
ATALAYA 95: Commences Liquidation Proceedings
E-SMART HOLDING: Commences Liquidation Proceedings
FORMULA INTERNATIONAL: Commences Liquidation Proceedings
GCI JGB: Placed Under Voluntary Wind-Up
GUANAY FINANCE: Fitch Affirms 'BB-' 2013-1 Notes Rating
HIGHLAND INVESTMENT: Commences Liquidation Proceedings
MORECO INVESTMENTS: Commences Liquidation Proceedings
PERIWINKLE BLUE: Commences Liquidation Proceedings
PINE FOREST: Commences Liquidation Proceedings
ROCKPOINT INVESTORS: Commences Liquidation Proceedings
ROCKPOINT INVESTORS II: Commences Liquidation Proceedings
ROCKPOINT INVESTORS III: Commences Liquidation Proceedings
SPRINGOWL GIBRALTAR: Placed Under Voluntary Wind-Up
SUPERFUND WHITE: Commences Liquidation Proceedings
C O L O M B I A
ELECTRICARIBE: Gov't. Regulator Orders Liquidation
D O M I N I C A N R E P U B L I C
DOMINICAN REP: No Reason to Get Spooked Over Dollars, Conep Says
M E X I C O
BANCO AHORRO: S&P Affirms 'B' ICR; Outlook Remains Stable
DESARROLLADORA HOMEX: Brower Piven Disclose Class Action Filing
QUALITAS CONTROLADORA: S&P Affirms BB+ Counterparty Credit Rating
P U E R T O R I C O
LIBERTY CABLEVISION: S&P Affirms 'B' CCR; Outlook Remains Stable
- - - - -
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A R G E N T I N A
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ARGENTINA: Teachers' Strikes Deepen Troubles for President
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Sara Schaefer Munoz and Taos Turner at The Wall Street Journal
report that teachers protested in towns and public squares across
Argentina, further delaying school for hundreds of thousands of
children and challenging President Mauricio Macri, who is trying
to contain wages and spur economic growth.
The demonstrations, culminating in what organizers say will be a
large march to the presidential palace in this capital's iconic
Plaza de Mayo, come as teachers in many districts embark on a
third week of strikes that have complicated the president's
efforts to curb inflation and pull Argentina out of recession,
according to The WSJ.
In intensifying walkouts and street rallies involving five
national unions, teachers are asking for higher salary increases
and blasting Mr. Macri for failing to jump-start the economy and
control Argentina's relentless inflation, which reached 40% last
year, the report notes. The government, aiming to cap inflation
at 17% this year, has discouraged cash-strapped provincial
governments, which set teacher salaries, from granting more
generous raises, the report relays.
"I'm completely for this strike, my salary doesn't cover
anything," said Diego Sabadell, a 29-year-old elementary
schoolteacher, the report discloses. According to Cippec, a
policy think tank, experienced elementary school teachers in
Buenos Aires province make roughly $844 a month, or 43% of what
teachers earn on average in other Organization for Economic
Cooperation and Development countries, the report relays.
The deepening standoff underscores the difficulties facing Mr.
Macri's pro-business government as it seeks to unwind years of
free-spending populist polices by his predecessor, President
Cristina Kirchner, and secure the political and popular support
needed ahead of legislative elections in October, the report
relays. Mr. Macri needs a convincing win to push forward with his
reforms.
But he is facing widespread discontent as he struggles to reverse
a deep recession and control rising prices, the report discloses.
For the first time since Mr. Macri took office 16 months ago, more
Argentines disapprove of his stewardship, at 44.2%, than approve,
40.2%, according to a new poll by Management & Fit, a local
polling firm, the report relays. Almost 44% of respondents also
said they expect their personal economic situation to worsen, up 4
percentage points from January, the report notes.
"The teachers' complaints are genuine," said Samuel Quitanovich, a
professor of sociology at the University of Buenos Aires, the
report notes. "At the same time, the opposition is backing these
protests with election goals in mind and is trying to make life
impossible for the government."
Teachers from Buenos Aires province, the country's largest and a
stronghold of Mrs. Kirchner's Peronist coalition, are facing off
against Mr. Macri's most visible ally, Maria Eugenia Vidal, the
governor of the province, the report relays. Ms. Vidal has drawn
comparison to Margaret Thatcher for her tough position against the
strikers. She has offered wage increase of 18% over the course of
a year, but because it would be spread over four quarters,
teachers fear it will soon be outpaced by inflation. Instead, they
seek a hike of 25%, notes the report.
If she goes higher, the move could embolden other labor groups,
analysts say, derailing government efforts to keep inflation and
provincial finances in check, the report discloses.
"They are not going to teach a lesson to labor by treating us with
disdain," said a statement released by the powerful Unified
Education Workers of Buenos Aires, led by an outspoken ally of
Mrs. Kirchner, Roberto Baradel, WSJ relays.
In remarks at the inauguration of a Peugeot plant, Mr. Macri told
Argentines that the economy is slowly improving, notes WSJ. But
he acknowledged that, for many people, "it hasn't taken off." Jobs
data released showed a glimmer of good news: Argentina's
unemployment rate fell to 7.6% in the fourth quarter, an
improvement from 8.5% in the third and 9.3% in the second quarter,
the report notes.
Some teachers are sympathetic to Mr. Macri and oppose the strikes,
the report notes. They say he is trying to rectify problems he
inherited.
"Our last government left us a country with a monumental deficit,"
said Sofia Baita, 58, an elementary schoolteacher, who went to
work instead of joining the strike, reports WSJ. "Where do people
think they are going to get the money to pay us? Macri can't do
magic."
Others say they simply can't make ends meet, the report relays.
The minimum wage for a public school teacher in the country is
about $612 a month, below the poverty level for a family of four
at $793, the report notes.
Malena Segui, a 42-year-old high school math teacher, said she
believes the new government ignores public education, the report
discloses.
"We can strike all year," said Ms. Segui, who was protesting. "We
earn miserable salaries and the only person who gave us a little
bit of dignity was Cristina Kirchner," she added, notes WSJ.
As reported in the Troubled Company Reporter-Latin America on
March 8, 2017, Moody's Investors Service has changed the outlook
on the Government of Argentina's rating to positive from stable
and affirmed the issuer rating at B3, senior unsecured ratings at
B3 and Ca, senior unsecured shelf and MTN program at (P)B3 and
(P)Ca, short term ratings at NP and global MTN program at (P)NP.
TCRLA reported on Jan. 30, 2017, Moody's Investors Service has
assigned a B3 rating to the Government of Argentina's US$3.25
billion bond due 2022 and the US$3.75 billion bond due 2027. The
outlook on the Government of Argentina's rating is stable.
On Oct. 17, 2016, the Troubled Company Reporter-Latin America
reported that 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'.
As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-day grace
period on a US$539 million interest payment. Earlier that day,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago.
On March 30, 2016, after more than 12 hours of debate in the
Senate, Argentina's Congress passed a bill that will allow the
government to repay holders of debt that the South American
country defaulted on in 2001, including a group of litigating
hedge funds that won judgments in a New York court. The bill
passed by a vote of 54-16.
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B E L I Z E
===========
BELIZE: S&P Ups LT Foreign Currency Rating to 'B-'; Outlook Stable
------------------------------------------------------------------
S&P Global Ratings raised its long-term foreign currency rating on
Belize to 'B-' from 'SD' (selective default). In addition, S&P
raised the short-term foreign currency rating to 'B' from 'D'. At
the same time, S&P raised the long-term local currency rating to
'B-' from 'CC' and the short-term local currency rating to 'B'
from 'C'. The outlook on the long-term foreign and local currency
ratings is stable. S&P also raised its rating on the bonds
included in the sovereign's debt exchange to 'B-' from 'D'.
Finally, S&P raised its transfer and convertibility (T&C)
assessment to 'B-' from to 'CC'.
RATIONALE
These rating actions follow Belize's announcement on March 21 that
the proposed amendments to the terms of the U.S. dollar bonds due
in 2038 took effect following the acceptance by creditors holding
88% of such bonds. The ratings on Belize reflect the government's
still-high debt burden, offset somewhat by its improved
amortization and debt service profile in the next three years.
According to the amendments that entered into effect, the bonds
have a final maturity date of Feb. 20, 2034 (instead of Feb. 20,
2038). In addition, the amendments provide that the principal
amount of such bonds amortize in five equal, annual installments
commencing on Feb. 20, 2030, and ending on Feb. 20, 2034,
replacing the original amortization schedule, which was previously
scheduled to begin in February 2019. Finally, the interest rate
on such bonds (which was scheduled to step up to 6.767% on
Aug. 20, 2017,) is now fixed for the life of the bonds at 4.9375%.
The creditor participation rate in the restructuring was 88%.
The amendments didn't reduce Belize's net general debt, which S&P
expects to reach 84% of the GDP in 2017, because they didn't
include a reduction in face value. But S&P would expect the
rescheduling to moderate the average increase of the general
government debt, as well as lower the interest burden during 2017-
2019.
As part of the agreement with the holders of the restructured U.S.
bonds, Belize is committed to achieve a primary fiscal surplus
equal to at least 2% of GDP in the fiscal years 2018/2019 to
2020/2021. According to the government, if it fails to meet these
targets, interest payments will be payable quarterly rather than
annually.
Economic growth in Belize continues to be sluggish. Falling
primary output, damage caused by Hurricane Earl, the loss of
correspondent banking relationships, and the appreciation of the
inflation-adjusted exchange rate underpin the economic contraction
in 2016 (-0.8% according to official estimates). S&P expects the
pace of recovery in the real economy to be slow. GDP may grow by
1.6% in 2017-2019. Slow growth, and a low level of investment by
the private sector, could make it difficult for the government to
meet its primary fiscal surplus targets. The government's efforts
to implement a fiscal consolidation were reflected in the recently
presented 2017-2018 fiscal budget, which includes increased
revenues from taxes (mainly from the tax on goods and services),
higher current expenditures, and lower capital spending.
In S&P's opinion, the debt rescheduling will give the government
greater capacity to meet its debt servicing requirements within
the next 12 to 24 months. However, the debt rescheduling alone
will be insufficient to put the debt burden on a firmly downward
trajectory, absent stronger medium-term GDP growth and further
fiscal consolidation.
OUTLOOK
The stable outlook balances the near-term improvement in the
government's ability to service its debt with the country's still-
high debt burden, vulnerability to external shocks, and monetary
inflexibility.
Failure to capitalize on the short-term fiscal benefits of the
debt rescheduling over the next 12 months, combined with
persistent low GDP growth, poor external liquidity, and high debt
burden, could eventually weaken the government's liquidity
position, leading to downward pressure on the rating.
On the other hand, a successful implementation of the fiscal
measures, resulting in a consistent and significant debt
reduction, and the Belizean institutions' ability to promote
higher GDP growth than in the recent past, as well as a higher
local competiveness, could have a positive impact on the ratings
over the long term.
===========
B R A Z I L
===========
BRAZIL: China to Reopen Consumer Market to Brazilian Meat Exports
-----------------------------------------------------------------
Paul Kiernan at The Wall Street Journal reports that China will
reopen its consumer market to Brazilian meat exports, officials in
the South American country said, after a scare over alleged
corruption in Brazil's sanitary inspection services prompted major
importers to bar shipments.
After a week of frantic negotiations, Brazilian Agriculture
Minister Blairo Maggi said China had lifted "preventive measures"
put in place to keep Brazilian meat from reaching consumers,
according to the WSJ.
"This is a categorical testament to the robustness and quality of
the Brazilian sanitary system," Mr. Maggi said in a statement
obtained by the news agency.
China, the biggest importer of Brazilian meat, was among a slew of
countries to impose trade restrictions after Brazil's Federal
Police alleged on March 17 that 21 meatpacking plants had
committed violations that included bribing health inspectors for
certificates, the report notes.
The investigation, dubbed Weak Flesh, left Brazil cut off from
some of its most important export markets, including China, Egypt
and the European Union, the report relays.
China's reopening didn't apply to the 21 plants under
investigation, nor to any meat inspected by the officials accused
of corruption.
With the economic cost of the restrictions mounting, Brazilian
officials hope other nations will follow in China's footsteps, the
report discloses. A delegation from the European Union, Brazil's
No. 2 market for meat exports, is visiting the South American
country in coming days to meet with health and food-safety
officials, the report notes.
"China, with this decision, shows that it understood that there
were problems with a few meatpackers that don't reflect the entire
system," said Pericles Salazar, head of an association that
represents small and medium-size slaughterhouses in Brazil, the
report relays. "China's decision is going to stimulate other
countries to lift sanctions," he added.
South Korea had already lifted trade restrictions on Brazilian
meat, the report discloses.
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'.
ECO SECURITIZADORA: Moody's Assigns (P)Ba1 Rating to Agri Certs.
----------------------------------------------------------------
Moody's America Latina has assigned provisional ratings of (P) Ba1
(global scale, local currency) and (P) Aaa.br (national scale) to
the 114th and 115th series of agribusiness certificates
("certificados de recebiveis do agronegocio" or CRA) issued by Eco
Securitizadora de Direitos Creditorios do Agronegocio S.A. (Eco
Agro, the Issuer or the Securitizadora) and backed by two series
of a debentures issued by Ipiranga Produtos de Petroleo S.A.
(Ipiranga) and guaranteed by Ultrapar Participacoes S.A.
(Ultrapar). The total issuance could be raised up to 35%, by the
agreement among the arrangers, the securitization company and
Ipiranga. The proceeds will be used to purchase the debentures
issued by Ipiranga
Issuer / Securitizadora: Eco Securitizadora de Direitos
Creditorios do Agronegocio S.A.
114th and 115th Series of the first issuance -- (P) Ba1 (global
scale, local currency) / (P) Aaa.br (national scale)
The provisional ratings address the structure and characteristics
of the transaction based on the information provided to Moody's as
of March 22, 2017. Certain issues related to this transaction have
yet to be finalized. Upon conclusive review of all documents and
legal information as well as any subsequent changes in
information, Moody's will endeavor to assign definitive ratings to
the CRA issuances. If any assumptions or factors considered by
Moody's in assigning the ratings change, Moody's could change the
ratings assigned to the CRA.
RATINGS RATIONALE
The (P) Ba1 (global scale, local currency) and (P) Aaa.br
(national scale) ratings assigned to the CRA are primarily based
on the willingness and ability of Ultrapar (as guarantor) to honor
the payments defined in transaction documents, reflecting the
Ba1/Aaa.br senior unsecured ratings of the underlying debenture
backing the CRA issuances. Any change in the ratings of the
debenture will lead to a change in the ratings of the CRA.
Each CRA series to be issued by Eco Agro will be backed by a
series of debentures issued by Ipiranga and guaranteed by
Ultrapar. The underlying debentures are rated Ba1 (global scale,
local currency) Aaa.br (national scale). Ipiranga and Ultrapar
will be responsible to cover all transaction expenses.
The 114th series of CRA are floating rate notes, indexed to a
percentage of the DI (interbank deposit rate) to be determined in
the bookbuilding process. Interest will be paid on a semiannual
basis, followed by a balloon payment of principal at the legal
final maturity in April 2022.
The 115th series of CRA the principal balance will be adjusted by
the IPCA (Extended National Consumer Price Index) inflation index
and will pay a coupon rate to be determined. Interests will be
paid on an annual basis, followed by a balloon payment of
principal at the legal final maturity in April 2024.
The sum of the two series will total BRL 750 million.
The provisional ratings on the CRA are based on a number of
factors, among them the following:
- The willingness and ability of Ultrapar (as guarantor) to make
payments on each series of the underlying debentures, rated
Ba1/Aaa.br.
- Pass through structure; interest risk mitigated: the payment
schedule of each series of CRA replicates the scheduled cash flow
of the underlying debentures, with a one-day lag, which allows
adequate timing to make payments on the CRA. The CRA will make
payments that match the payments to be made by the underlying
debentures. The floating rate of DI to be paid under the 114th
series will be determined using the same DI period under the
underlying debenture. The principal balance of the CRA 115th
series will be adjusted by the same IPCA index used to adjust the
underlying debentures. Also, the coupon will be calculated
considering the same business days. In addition, to mitigate the
risk of the additional one day of interest for the first interest
payment, the debentures will incorporate one extra day of interest
accrual to address any potential interest rate mismatch.
- The event of default (EOD) on the CRA are matched to the EOD on
the underlying debentures. Therefore, the risk of having an EOD on
the certificates while the underlying assets are current is
mitigated. In addition, and EOD on the underlying debentures will
trigger and EOD on the CRA.
- Ipiranga or Ultrapar, in the last instance, will pay the CRA
expenses: Ipiranga or Ultrapar will be responsible, under the
transaction documents, for all CRA expenses. Nonetheless, the
transaction have recourse back to Ultrapar, in case Ipiranga miss
any payment of expenses.
- Ipiranga's payment obligations, as well as Ultrapar's guarantee
under the debentures, assignment agreement and the trust expenses
related to the CRA issuance also benefits from a guarantee
provided by Ultrapar, which is the holding company from Ipiranga.
The senior unsecured ratings assigned to the underlying debentures
issued by Ipiranga (as debtor) reflect the profile of the
guarantor's senior unsecured debt.
- No commingling risk: Ipiranga will make the payments due on the
two series of debentures directly to the respective accounts of
each series of CRA held at Banco Bradesco S.A. (Ba2 stable).
- Segregated assets: The CRA benefit from a fiduciary regime
("regime fiduciario") whereby the assets backing each series of
CRA are segregated. These segregated assets are destined
exclusively for payments on the CRA as well as certain fees and
expenses, and will be segregated from all of the other assets on
the issuer's balance sheet. However, the transaction is subject to
residual legal risk because Eco Agro agribusiness credits can be
affected by the securitization company's tax, labor and pension
creditors. (For more information, see the "Fiduciary Regime and
Segregation of Assets" section in the Pre-sale Report.)
Ultrapar Participacoes S.A. ("Ultrapar"), headquartered in Sao
Paulo, Brazil, is engaged in fuel (Ipiranga) and liquefied
petroleum gas (Ultragaz) distribution, specialty chemicals
production (Oxiteno), storage for liquid bulk (Ultracargo) and
retail drugstore (Extrafarma). In the last twelve months ended
December 31, 2016, Ultrapar reported consolidated net revenues of
BRL 77.3 billion (about USD 22.2 billion). Ipiranga is the group's
largest business segment, representing 86% of consolidated net
revenues and 73% of EBITDA in the same period.
Ultrapar's ratings reflect primarily the company's solid business
model, low risk profile, stable cash flows and leading position in
different segments. Over the past few years the company
demonstrated its ability to post robust growth across all business
lines and to sustain conservative credit metrics and strong cash
generation even under adverse market conditions and sizable
investment plan.
On the other hand, the ratings are primarily constrained by
Brazil's sovereign government bond rating. The company's
acquisitive growth strategy and its dependence on a few key
suppliers for raw materials are additional negative rating
considerations. To a lesser extent, the more cyclical nature of
its specialty chemicals business is also viewed as credit
negative.
Ultrapar's Ba1/Aaa.br Corporate Family Rating ratings stand 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. This is evidenced by the resilient nature of
Ultrapar's cash flows and financial flexibility, which allow it to
withstand Brazil's weakened economic and fiscal condition.
A Eco Securitizadora de Direitos Creditorios do Agronegocio S.A.
(Eco Agro) was incorporated in 2007 as a securitization company of
agribusiness credit rights and is headquartered in Sao Paulo. The
issuer is part of the Eco Agro Participacoes S.A., Group, which
maintains 99.99% of shares in Eco Agro. In addition to Eco Agro,
Eco Agro Participacoes also holds controlling positions in Eco
Consultoria Ltda (company which provides services to Eco Agro) and
Eco Gestao Ltda (company which manages funds). Since the beginning
of its operations, Eco Agro has issued 105 CRA, totaling an
issuance amount of approximately BRL9,5 billion, with currently
outstanding CRAs totaling BRL7,9 billion.
==========================
C A Y M A N I S L A N D S
==========================
ARCODA GLOBAL: Creditors' Proofs of Debt Due March 29
-----------------------------------------------------
The creditors of Arcoda Global Healthcare Master Fund, Ltd. are
required to file their proofs of debt by March 29, 2017, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Feb. 9, 2017.
The company's liquidator is:
DMS Corporate Services Ltd.
c/o Nicola Cowan
P.O. Box 1344 George Town KY1-1108
dms House, 20 Genesis Close
Cayman Islands
Telephone: (345) 749 2512
Facsimile: (345) 949 2877
ATALAYA 95: Commences Liquidation Proceedings
---------------------------------------------
The members of Atalaya 95 Investment Company on Feb. 8, 2017,
passed a resolution to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
March 27, 2017, will be included in the company's dividend
distribution.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
E-SMART HOLDING: Commences Liquidation Proceedings
--------------------------------------------------
The members of E-Smart Holding Co., Ltd. on Feb. 9, 2017, passed a
resolution to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
March 21, 2017, will be included in the company's dividend
distribution.
The company's liquidator is:
Lin, Hsun-Min
12th Floor, No. 368, Gong-Jian Rd.
Shi-Ji Dist., New Taipei City
Taiwan (R.O.C.)
Telephone: 886-2-2642-6789 #3206
Facsimile: 886-2-2649-6599
FORMULA INTERNATIONAL: Commences Liquidation Proceedings
--------------------------------------------------------
The members of Formula International Ltd. on Feb. 9, 2017, passed
a resolution to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
March 27, 2017, will be included in the company's dividend
distribution.
The company's liquidator is:
Morval Bank & Trust Cayman Ltd.
P.O. Box 30622 Grand Cayman Ky1-1203
Cayman Islands
Telephone: +1 (345) 949-9808
GCI JGB: Placed Under Voluntary Wind-Up
---------------------------------------
The sole shareholder of GCI JGB Tail Risk Fund on Feb. 9, 2017,
passed a resolution to voluntarily wind up the company's
operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Elian Fiduciary Services (Cayman) Limited
c/o Julie Hughes
Telephone: +1 (345) 815 1426
Facsimile: +1 (345) 945-6265
190 Elgin Avenue, George Town
Grand Cayman KY1-9007
Cayman Islands
GUANAY FINANCE: Fitch Affirms 'BB-' 2013-1 Notes Rating
-------------------------------------------------------
Fitch Ratings has affirmed the rating of Guanay Finance Limited's
2013-1 notes at 'BB-' and revised the Rating Outlook to Stable
from Negative.
The transaction is backed by existing and future U.S. and Canadian
dollar-denominated ticket receivables originated by LATAM Airlines
Group S.A. (LATAM). Receivables result from passenger and cargo
sales booked under IATA code 045 and purchased with a qualified
credit, debit or charge card in the U.S. and Canada. Fitch's
rating addresses timely payment of interest and principal on a
quarterly basis.
KEY RATING DRIVERS
The rating action follows Fitch's recent affirmation and Outlook
revision of LATAM's Long-term Issuer Default Rating (IDR) and
reflects the following key rating drivers:
LATAM's Credit Quality: On March 9, 2017, Fitch affirmed LATAM's
IDR at 'B+' and revised the Rating Outlook to Stable from
Negative. The rating affirmation and Outlook revision to Stable
reflect expectations that improvement in the company's credit
metrics will continue during 2017. LATAM's ratings are supported
by its diversified business model, important regional market
position, and adequate liquidity. These positive factors are
tempered by the company's still high gross adjusted leverage and
operational volatility related to some key markets.
Going Concern Assessment (GCA): Fitch assigns LATAM a GCA score of
'GC3'. The maximum rating uplift allowed by the GCA score is two
notches; however, other factors outlined below result in a one-
notch rating uplift from LATAM's IDR.
Adequate Performance: Collections supported an average quarterly
debt service coverage ratio (DSCR) of 3.7 in 2016. Fitch's DSCR
considers maximum quarterly debt service for the life of the
transaction. Flows benefit from a strategically important and
strong securitized business line.
FF Debt Relative to Liabilities: Outstanding future flow debt
represents approximately 4.0% of LATAM's consolidated debt and
4.8% of unconsolidated debt (excluding TAM). These percentages are
low relative to LATAM's balance sheet; however, future flow debt
is large relative to the company's total unsecured debt as most
LATAM debt relates to leases and secured debt.
Moderate Diversion Risk: The transaction is exposed to potential
diversion risk despite structural protections. Cash flows could be
diverted from the transaction by rerouting sales through a
different IATA code or processing card payments in a different
jurisdiction. Moderate diversion risk limits uplift of the future
flow rating from the originator's IDR.
RATING SENSITIVITIES
The future flow rating is sensitive to changes in the credit
quality of LATAM. Movement in LATAM's IDR could lead to a similar
action to the rating of the notes. In addition, a contraction in
LATAM's North American gateway business that negatively impacts
DSCRs could also lead to rating downgrades.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action."
REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS
A description of the transaction's representations, warranties and
enforcement mechanisms (RW&Es) that are disclosed in the offering
document and which relate to the underlying asset pool was not
prepared for this transaction. Offering documents for future flow
transactions do not typically include RW&Es that are available to
investors and that relate to the asset pool underlying the
security. Therefore, Fitch credit reports for future flow
transactions will not typically include descriptions of RW&Es. For
further information, please see Fitch's Special Report titled
"Representations, Warranties and Enforcement Mechanisms in Global
Structured Finance Transactions," dated May 31, 2016.
HIGHLAND INVESTMENT: Commences Liquidation Proceedings
------------------------------------------------------
The members of Highland Investment Ltd. on Feb. 9, 2017, passed a
resolution to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
March 20, 2017, will be included in the company's dividend
distribution.
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
MORECO INVESTMENTS: Commences Liquidation Proceedings
-----------------------------------------------------
The shareholders of Moreco Investments Limited, on Feb. 7, 2017,
passed a resolution to liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
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
PERIWINKLE BLUE: Commences Liquidation Proceedings
--------------------------------------------------
The members of Periwinkle Blue Investment Ltd. on Feb. 9, 2017,
passed a resolution to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
March 27, 2017, will be included in the company's dividend
distribution.
The company's liquidator is:
Morval Bank & Trust Cayman Ltd.
P.O. Box 30622 Grand Cayman Ky1-1203
Cayman Islands
Telephone: +1 (345) 949-9808
PINE FOREST: Commences Liquidation Proceedings
----------------------------------------------
The shareholders of Pine Forest Capital Asia Strategic Fund, on
Feb. 10, 2017, passed a resolution to liquidate the company's
business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
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
ROCKPOINT INVESTORS: Commences Liquidation Proceedings
------------------------------------------------------
The members of Rockpoint Investors on Feb. 9, 2017, passed a
resolution to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
March 20, 2017, will be included in the company's dividend
distribution.
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
ROCKPOINT INVESTORS II: Commences Liquidation Proceedings
---------------------------------------------------------
The members of Rockpoint Investors II, Ltd. on Feb. 9, 2017,
passed a resolution to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
March 20, 2017, will be included in the company's dividend
distribution.
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
ROCKPOINT INVESTORS III: Commences Liquidation Proceedings
---------------------------------------------------------
The members of Rockpoint Investors III, Ltd. on Feb. 9, 2017,
passed a resolution to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
March 20, 2017, will be included in the company's dividend
distribution.
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
SPRINGOWL GIBRALTAR: Placed Under Voluntary Wind-Up
---------------------------------------------------
The sole shareholder of Springowl Gibraltar Partners B Ltd. on
Feb. 17, 2017, passed a resolution to voluntarily wind up the
company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Michael Panzner
c/o Jody Powery-Gilbert
89 Nexus Way, Camana Bay
Grand Cayman KY1-9009
Cayman Islands
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
SUPERFUND WHITE: Commences Liquidation Proceedings
--------------------------------------------------
The members of Superfund White SPC Limited on Feb. 6, 2017, passed
a resolution to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
March 20, 2017, will be included in the company's dividend
distribution.
The company's liquidator is:
Samuel Zbiden
Superfund White SPC
c/o Apex Fund Services (Cayman) Ltd.
One Artillery Court
161a Shedden Road
P.O. Box MP10085 Grand Cayman KY1-1001
Cayman Islands
Telephone: +345 747 2739
===============
C O L O M B I A
===============
ELECTRICARIBE: Gov't. Regulator Orders Liquidation
--------------------------------------------------
Carlos Vargas, Nelson Bocanegra and Carlos Ruano at Reuters report
that Colombia's government regulator said on March 14 it had
ordered the liquidation of Electricaribe, an affiliate of Spain's
Gas Natural, but the company had asked Colombia to find a way to
allow it to keep trading there.
Colombia's government took temporary control of Electricaribe's
assets in November, citing risks from lack of payment and quality
of service, the report relays.
"The company is not in a position to provide energy service with
the quality and continuity that's required," regulator Jose Miguel
Mendoza told reporters in Bogota, the report discloses. "When the
assets of the company are sold, creditors will be paid in the
order established by law," Mr. Mendoza added.
The report discloses that Gas Natural, which has an 85.38 percent
stake in Electricaribe, said it was willing to talk with the
Colombian government to find a way to continue operating and
investing in Electricaribe.
But a source familiar with the matter said that Gas Natural would
file a complaint within 15 days with the World Bank's
International Centre for Settlement of Investment Disputes (ICSID)
over Colombia's decision to liquidate the unit, the report relays.
The report notes that the Spanish government expressed regret over
the Colombian decision and said it would support Gas Natural if it
decided to pursue legal action.
Spain's foreign ministry also urged dialogue to reach a
"satisfactory solution" for all parties, it said in a statement
obtained by the news agency.
The report says with about 2.5 million customers on Colombia's
Caribbean Coast, Electricaribe has total liabilities of about 2.4
trillion pesos ($800 million).
The report further notes that Gas Natural has attributed the
liquidity difficulties to customers failing to pay and people
connecting illegally.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REP: No Reason to Get Spooked Over Dollars, Conep Says
----------------------------------------------------------------
Dominican Today reports that National Business Council (Conep)
President Pedro Brache said prior to the Central Bank's injection
of dollars to meet the demand, the market was behaving normally
and the companies had no trouble buying the greenbacks.
"The BC injection was actually a vaccine, because since before
that, the market was developing normally starting this month. I
don't see a problem with the dollar, companies are operating
normally, when one goes to buy dollars they find them," the report
quoted Mr. Brache as saying.
Mr. Brache said the meeting held at the Central Bank with business
leaders was to see what was the hysteria with the currency,
because, in his view, there was no reason to talk about shortages,
according to Dominican Today.
The report notes that Mr. Brache said it was explained at the
meeting the amount of dollars the economy receives and the amount
it buys, so it was observed that there is enough currency in the
country "I think there was no reason to say that there was
shortage, that is, in my opinion there's not."
Mr. Brache said he prefers to adopt a new method for dollar
transactions, because "that will allow a reconciliation of the
demand with the supply of a more effective way," the report
relays.
Mr. Brache spoke prior to participating in the international
conference "Challenges and challenges of dual training from the
perspectives of professional and business training," at the
National Professional Technical Training Institute (Infotep), the
report notes.
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'.
===========
M E X I C O
===========
BANCO AHORRO: S&P Affirms 'B' ICR; Outlook Remains Stable
---------------------------------------------------------
S&P Global Ratings affirmed its 'B' global scale and 'mxBBB-/mxA-
3' national scale issuer credit ratings on Banco Ahorro Famsa
S.A., Institucion de Banca Multiple (BAF). The outlook on the
global scale ratings remains stable reflecting that on its parent
Grupo Famsa S.A.B. de C.V. (GFamsa; B/Stable/--). The outlook on
the national scale issuer credit rating remains stable as well.
As a result of the consistent improvement of the bank's asset
quality indicators, through lower nonperforming assets (NPAs) and
net charge-offs (NCOs), S&P is revising BAF's SACP to 'bb-' from
'b-', because it has a more favorable view about its risk
position. BAF's strengthening of its collection process and
origination standards, which have sharply improved its asset
quality metrics since 2015, is finally bearing fruit. As of
Dec. 31, 2016, the bank's NPAs and NCOs on a combined basis,
declined to 17.8%, below the past-three year average of 24.3%.
The higher SACP also reflects a less risky loan portfolio mix
given that payroll discount lending reached around 30% of the
BAF's total loans. Moreover, the NPA coverage remains above 100%
for the second consecutive year. In addition, given that the
bank's retail portfolio remains as its core business, it's highly
pulverized, preventing major concentrations that could dent BAF's
financial performance. Because payroll lending will mainly drive
the bank's expected growth in 2017, S&P believes BAF's asset
quality will continue improving.
DESARROLLADORA HOMEX: Brower Piven Disclose Class Action Filing
---------------------------------------------------------------
The securities litigation law firm of Brower Piven, A Professional
Corporation, announces that a class action lawsuit has been
commenced in the United States District Court for the Eastern
District of New York on behalf of purchasers of Desarrolladora
Homex, S.A.B. de C.V. a/k/a/ Homex Development Corp. American
Depositary Shares (ADSs) during the period between April 30, 2012
through May 5, 2016, inclusive. Investors who wish to become
proactively involved in the litigation have until May 15, 2017 to
seek appointment as lead plaintiff.
If you wish to choose counsel to represent you and the class, you
must apply to be appointed lead plaintiff and be selected by the
Court. The lead plaintiff will direct the litigation and
participate in important decisions including whether to accept a
settlement for the class in the action. The lead plaintiff will
be selected from among applicants claiming the largest loss from
investment in Homex ADSs during the Class Period. Members of the
class will be represented by the lead plaintiff and counsel chosen
by the lead plaintiff. No class has yet been certified in the
above action.
The complaint accuses the defendants of violations of the
Securities Exchange Act of 1934 by virtue of the defendants'
failure to disclose during the Class Period that between 2010 and
2013, Homex overstated its revenue by 355% or roughly $3.3 billion
by reporting fictitious sales of more than 100,000 homes, that
between 2010 and 2013, Homex overstated the number of units it
sold by over 100,000 units or 317% of actual units sold, and that
Homex and certain of its Headquarters Financial Reporting
Personnel knowingly and intentionally engaged in a scheme to
materially overstate Homex's revenues, homes sold, and other
related financial items.
According to the complaint, following the April 30, 2014
announcement that Homex had filed for bankruptcy protection; a May
2, 2014 announcement that the New York Stock Exchange determined
to commence proceedings to delist American Depository Shares
("ADS's") and suspended trading of those ADSs; and a May 6, 2016
SEC filing revealing that the SEC had issued a Wells notice to the
Company in connection with alleged anti-fraud, internal control
and reporting violations and revealing that the Company's
financial statements for 2010-2012 should not be relied upon, the
value of Homex ADSs declined significantly.
If you have suffered a loss in excess of $100,000 from investment
in Homex ADSs purchased on or after April 30, 2012 and held
through the revelation of negative information during and/or at
the end of the Class Period and would like to learn more about
this lawsuit and your ability to participate as a lead plaintiff,
without cost or obligation to you, please visit our website at
http://www.browerpiven.com/currentsecuritiescases.html. You may
also request more information by contacting Brower Piven either by
email at hoffman@browerpiven.com or by telephone at (410) 415-
6616. Brower Piven also encourages anyone with information
regarding the Company's conduct during the period in question to
contact the firm, including whistleblowers, former employees,
shareholders and others.
Attorneys at Brower Piven have extensive experience in litigating
securities and other class action cases and have been advocating
for the rights of shareholders since the 1980s. If you choose to
retain counsel, you may retain Brower Piven without financial
obligation or cost to you, or you may retain other counsel of your
choice. You need take no action at this time to be a member of
the class.
About Homex
Desarrolladora Homex, S.A.B. de C.V. is a vertically integrated
home-development company focused on affordable entry-level and
middle-income housing in Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 20, 2015, Reuters reported that Desarrolladora Homex, S.A.B.
de C.V., which emerged from bankruptcy proceedings in July 2015,
said that the national securities regulator CNBV has cleared its
shares to trade again.
Homex shares were suspended 2014, when a debt crisis and lack
of demand for its homes prompted the company to file for
bankruptcy.
QUALITAS CONTROLADORA: S&P Affirms BB+ Counterparty Credit Rating
-----------------------------------------------------------------
S&P Global Ratings said it affirmed its 'BB+' global scale
counterparty credit rating on Qualitas Controladora S.A.B. de C.V.
(QualCon). S&P also affirmed its 'mxAA+/mxA-1+' counterparty
credit and financial strength national scale ratings on Qualitas
Compania de Seguros S.A. de C.V. y Subsidiarias. In addition, S&P
affirmed its 'BBB-' counterparty credit and financial strength
ratings on Qualitas Insurance Co. (Quic). The outlook for all
ratings remains stable.
S&P's ratings on Qualitas reflect its satisfactory business risk
profile and lower adequate financial risk profile.
Qualitas is a monoline auto insurance company with operations
primarily in Mexico, although Quic is licensed and operates in the
U.S. S&P considers Quic a highly strategic subsidiary to the
group because it primarily serves the Qualitas' customer base in
the U.S. The group also has some operations in El Salvador and
Costa Rica, although these and the U.S. operations are small
compared with the size of the Mexican business, which generates
more than 90% of premiums. QualCon serves as the ultimate non-
operating holding company, which owns the other Latin American
international operations in addition to Qualitas and Qic, and
S&P's rating on QualCon reflects its subordination to, and
dependence on, the insurance operating companies for dividends.
S&P's business risk profile on the group reflects its adequate
competitive position due to its reliance upon a single business
line. Operating performance has been stable over the past few
years, and S&P considers it neutral to the rating. In 2016,
revenue rose significantly due to an accounting change that
resulted in a reserve release as well as due to increased sales of
a multiyear auto insurance product that provides guaranteed
premiums to policyholders. As a result of the longer duration of
these policies, S&P considers them higher risk than those of the
more traditional single-year policies. S&P will continue to
monitor the operating performance of this product line as its
share of Qualitas' sales and business rises.
S&P considers the group's financial risk profile lower adequate
due to its prospective capital adequacy (according to S&P's model)
slightly below the 'BBB' benchmark. Qualitas has a relatively
aggressive dividend policy, in S&P's view, although the group
maintains a solvency ratio well in excess of regulatory
requirements (about 172% solvency ratio as of the end of 2016).
Financial flexibility is adequate. Qualitas has no leverage,
which S&P considers positive, but the company's track record of
accessing multiple sources of external capital (including debt
capital markets) is limited.
S&P revised its view of Qualitas' risk position to intermediate
from moderate. S&P had previously considered sources of capital
and earnings volatility as negative as a result of the group's
monoline concentration in auto insurance, but S&P has revised its
opinion given the relatively short-term (compared with, for
example, certain life insurance products) nature of the risk.
In S&P's view, Qualitas' management and governance (M&G) is fair
and enterprise risk management (ERM) is adequate, and S&P
considers both factors neutral to the ratings. S&P's assessment
of M&G reflects S&P's negative view of management's risk
tolerances, which stems from S&P's concerns about Qualitas'
aggressive growth strategy, particularly in the multiyear policy
line.
"While the group has made investments in its ERM program over the
last few years as part of compliance requirements for the Mexican
regulator, we're still concerned about risk controls, given
Qualitas' significantly lower return on investment income in
2016," said S&P Global Ratings credit analyst Jesus Palacios.
The outlook on Qualitas reflects S&P's expectation that it will
maintain its leadership position in the Mexican auto insurance
market and that the rating fundamentals--including operating
performance and capital adequacy levels--will remain at the
current levels, with a combined ratio in the 97%-98% range and
risk-based capital moderately below the 'BBB' benchmark in the
next two years. The stable outlook on both QualCon and Quic
parallels Qualitas' outlook.
S&P could downgrade Qualitas in the next two years if its capital
falls below S&P's expectations as a result of weak operating
performance or due to an aggressive dividend policy that erodes
capitalization levels over time. S&P could also lower the ratings
if operating performance deteriorated, resulting in its revision
of the company's competitive position.
S&P could upgrade Qualitas if it strengthens its capitalization
ratios to levels consistently above S&P's benchmark for the 'BBB'
levels and the group maintains sound risk management practices
with adequate operating performance.
======================
P U E R T O R I C O
======================
LIBERTY CABLEVISION: S&P Affirms 'B' CCR; Outlook Remains Stable
----------------------------------------------------------------
S&P Global Ratings said it affirmed its 'B' corporate credit
rating, and all other ratings, on San Juan, P.R.-based Liberty
Cablevision of Puerto Rico LLC. The outlook remains stable.
"The affirmation recognizes improving operating performance and
scale since the company acquired Choice Cable TV in June 2015, but
also considers uncertainty surrounding future earnings and the
potential for future re-leveraging," said S&P Global Ratings
credit analyst William Savage.
Over the past year, debt to EBITDA has fallen to about 4.5x from
over 5x in the past and S&P expects only a slight improvement in
2017, reflecting flat to low-single-digit EBITDA growth.
The stable rating outlook on LCPR reflects S&P's expectation that
due to flat to low-single-digit EBITDA growth, leverage will
continue to decline slightly to the low- to mid-4x area in 2017
from 4.5x at the end of fiscal 2016. Nevertheless, S&P believes
there is uncertainty around the sustainability of these metrics
due to macroeconomic challenges and financial policy.
***********
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, Ivy B.
Magdadaro, and Peter A. Chapman, Editors.
Copyright 2017. 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 * * *