/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150715.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, July 15, 2015, Vol. 16, No. 138 Headlines B R A Z I L BANCO INDUSVAL: S&P Affirms 'BB-' LT ICR; Outlook Remains Negative GOL LINHAS: Delta Plans Equity Purchase as Firm Issues New Stock C A Y M A N I S L A N D S GOLDMAN SACHS 2004: Commences Liquidation Proceedings GOLDMAN SACHS 2005: Commences Liquidation Proceedings GOLDMAN SACHS ADVISORS: Commences Liquidation Proceedings GOLDMAN SACHS COLUMBUS: Commences Liquidation Proceedings GOLDMAN SACHS DISTRESSED: Commences Liquidation Proceedings GOLDMAN SACHS EQUITY: Commences Liquidation Proceedings GOLDMAN SACHS IX: Commences Liquidation Proceedings GOLDMAN SACHS OFFSHORE: Commences Liquidation Proceedings GOLDMAN SACHS PEP: Commences Liquidation Proceedings GOLDMAN SACHS PRIVATE: Commences Liquidation Proceedings D O M I N I C A DOMINICA: At "High Risk" of Debt Trap, Says Jubilee D O M I N I C A N R E P U B L I C DOMINICAN REP: Cost to Grow Rice Falls 30% Spurred by Trade Pact DOMINICAN REP: Deportation Row is Hurting Agriculture & Trade P U E R T O R I C O ANNA'S LINENS: SM 101 Seeks to Repossess Santa Maria, Calif. Land ANNA'S LINENS: Seeks Court's Final Approval of Agency Deal ANNA'S LINEN: Has Until July 29 to File Schedules and Statements STANDARD REGISTER: Needs Until Oct. 8 to File Liquidating Plan STANDARD REGISTER: Creditors Sue Silver Point Over Deal STANDARD REGISTER: Former Workers' Summary Judgment Bids Denied T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Government Must Tackle Spending X X X X X X X X X LATIN AMERICA: CARICOM States to Push for Debt Write-Off - - - - - =========== B R A Z I L =========== BANCO INDUSVAL: S&P Affirms 'BB-' LT ICR; Outlook Remains Negative ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its global scale long- term 'BB-' and short-term 'B' issuer credit ratings on Banco Indusval & Partners S.A. (BI&P). At the same time, S&P affirmed its national scale long-term 'brA-' and short-term 'brA-2' issuer credit ratings on the bank. The outlook remains negative. The negative outlook reflects S&P's view of the negative trend in Brazil's BICRA Economic Risk; it also reflects potential financial deterioration from pressures on the Brazilian banking system as a result of the impact of fiscal and monetary tightening in S&P's economic assessment of Brazil. A confirmation of this negative trend could trigger a downgrade on the ratings on the bank, as well as a downgrade on SACP, because S&P believes a more difficult operating environment would hurt the bank. The outlook also reflects a negative trend that S&P sees in the bank's business position. S&P believes its small market presence and customer base could continue to pressure the bank's business stability, as demonstrated by poor financial results during the past 24 months. S&P will keep monitoring how the bank's revenues base develops as it deleverages its loans portfolio and focuses on noncredit related business lines. S&P could revise its outlook on BI&P to stable if the negative trend in Brazil's BICRA Economic Risk abates and the bank improves its profitability through a stable revenue base. GOL LINHAS: Delta Plans Equity Purchase as Firm Issues New Stock ---------------------------------------------------------------- Edward Dufner at Bloomberg News reports that Delta Air Lines Inc. will expand its equity stake in Brazil's Gol Linhas Aereas Inteligentes SA with a stock purchase of as much as $56 million as the struggling discount carrier issues new shares. Gol's biggest shareholder, Fundo de Investimento em Participacoes Volluto, will invest as much as $90 million. Delta also will guarantee a term loan with third-party lenders for as much as $300 million, Gol said, according to Bloomberg News. "The board of Gol will determine the exact amount of capital increase in Brazilian reais," the airline said in a statement, Bloomberg News relates. Delta's move expands ties to Gol that include a 2.9 percent holding and a seat on the board of the Sao Paulo-based airline, Bloomberg News notes. With debts denominated in dollars, the currency weakening and Brazil sliding into recession, Gol has been mired in annual losses since 2011, Bloomberg News says. Its shares have tumbled 60 percent this year, Bloomberg News adds. * * * As reported in the Troubled Company Reporter-Latin America on June 15, 2015, Standard & Poor's Ratings Services revised its outlook on the 'B' global scale rating on Gol Linhas Aereas Inteligentes S.A. to negative from stable. S&P also affirmed this rating. At the same time, S&P lowered its Brazilian national scale rating on the company to 'brBB' from 'brBBB-'. The outlook on this rating is also negative. ========================== C A Y M A N I S L A N D S ========================== GOLDMAN SACHS 2004: Commences Liquidation Proceedings ----------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs Pep 2004 Offshore Holdings Advisors, Inc. resolved to voluntarily 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 GOLDMAN SACHS 2005: Commences Liquidation Proceedings ----------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs Pep 2005 Offshore Holdings Advisors, Inc. resolved to voluntarily 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 GOLDMAN SACHS ADVISORS: Commences Liquidation Proceedings --------------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs Pep 2005 Offshore Advisors, Inc. resolved to voluntarily 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 GOLDMAN SACHS COLUMBUS: Commences Liquidation Proceedings --------------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs Columbus Co-Investment Advisors Offshore, Inc. resolved to voluntarily 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 GOLDMAN SACHS DISTRESSED: Commences Liquidation Proceedings ----------------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs Distressed Opportunities II Offshore Advisors, Inc. resolved to voluntarily 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 GOLDMAN SACHS EQUITY: Commences Liquidation Proceedings ------------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs Private Equity Concentrated Opportunities Offshore Holdings Advisors, Inc. resolved to voluntarily 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 GOLDMAN SACHS IX: Commences Liquidation Proceedings --------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs Pep IX Offshore Advisors, Inc. resolved to voluntarily 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 GOLDMAN SACHS OFFSHORE: Commences Liquidation Proceedings --------------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs Distressed Opportunities II Offshore Holdings Advisors, Inc. resolved to voluntarily 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 GOLDMAN SACHS PEP: Commences Liquidation Proceedings ---------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs PEP 2004 Offshore Advisors, Inc. resolved to voluntarily 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 GOLDMAN SACHS PRIVATE: Commences Liquidation Proceedings -------------------------------------------------------- On June 19, 2015, the sole shareholder of Goldman Sachs Private Equity Concentrated Opportunities Offshore Advisors, Inc. resolved to voluntarily 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 =============== D O M I N I C A =============== DOMINICA: At "High Risk" of Debt Trap, Says Jubilee --------------------------------------------------- Caribbean360.com reports that four Caribbean Community (CARICOM) nations have been named among countries at risk of government external debt crises -- one of them specially highlighted among those "rapidly heading" in that direction. Guyana, Haiti and St. Lucia are in a list of 29 countries identified by Jubilee Debt Campaign -- a coalition of national organizations and local groups around the UK calling for the unjust and unpayable debts of the poorest countries to be cancelled -- as facing a risk of finding themselves in debt crisis, while Dominica is said to be at "high risk" based on large external debt, a large and persistent current account deficit, and high projected future government debt payments, according to Caribbean360.com. The report notes that the information is contained in the Jubilee's 40-page document entitled The new debt trap: How the response to the last global financial crisis has laid the ground for the next, which analyses public and private debts owed by countries across the world. Jubilee's analysis defines countries as at risk of a government debt crisis if they have net debt higher than 30 per cent of GDP, or current account deficit more than five per cent of GDP); and future government debt payments exceeding 10 per cent of government revenue or, where projections are not available, current government external debt already over 40 per cent of GDP, the report relays. The 14 countries at high risk have net debt of more than 30 per cent of GDP; future government debt payments exceeding 15 per cent of government revenue or, where projections are not available, current government external debt already over 50 per cent of GDP; and a current account deficit that is more than five per cent of GDP, the report says. "Of these, some are already likely to be back in debt crisis, but the figures are not yet available to show that they are. These are expected to have high government debt payments over the next few years; they include nations such as Dominica, Ghana and Mauritania," the report stated, Caribbean360.com discloses. It also pointed out that Belize, the Dominican Republic, Grenada, Jamaica and St. Vincent and the Grenadines are among 22 countries already in a government external debt crisis, with "high government debt payments leading to large amounts of money leaving their country each year, along with an overall net debt with the rest of the world," the report notes. Net debt for that group stands at over 30 per cent of GDP and external debt payments exceed 15 per cent of government revenue, the report relays. No Caribbean nation was named in the list of 28 countries at risk of facing a private-sector debt crisis, the report adds. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: Cost to Grow Rice Falls 30% Spurred by Trade Pact ---------------------------------------------------------------- Dominican Today reports that the cost to grow rice has fallen by 30% on half of local production in the last three years, as the result of a process that will ensure the sector's competitiveness when the tariff of CAFTA free trade pact is lifted. Agriculture Bank (Bagricola) Administrator Carlos Segura said that when producer was using 20 pounds of seed per 630 per square meter on average, now uses only six pounds, by eliminating tillage, soil leveling and by planting in bulk, "considerably reducing production costs," according to Dominican Today. The report relates that Mr. Segura stressed the improved equipment used to prepare soil throughout the production process, saving 27 pesos per sack of rice. Mr. Segura said Bagricola finances, promotes and develops rice production with loans to the subsector, notes the report. "In recent years this institution formalized RD$976.8 million in loans to rice farmers, or 58.5% compared with those targeting other agricultural items, and the funding allowed to cover a surface of more than 72,000 hectares of the grain," Mr. Segura added. DOMINICAN REP: Deportation Row is Hurting Agriculture & Trade ------------------------------------------------------------- Dominican Today reports that Agriculture Minister Angel said he shares the American Chamber of Commerce's concern voiced on the situation between Dominican Republic and Haiti as it affects trade in farm products, though he hopes the two nations reach an understanding. The official said he expects Dominican and Haitian authorities to find a solution to this conflict over deportation, according to Dominican Today. "We both need each other, this will pass and all will be alright," the report quoted Mr. Angel as saying. "As minister of agriculture I'm worried because it's something affects which affects the workflow in both areas of agriculture and trade, but that will be resolved," said Estevez, who also noted that both countries have always reached agreements. "Like it or we have to get along with our Haitian brothers because we live face to face." ===================== P U E R T O R I C O ===================== ANNA'S LINENS: SM 101 Seeks to Repossess Santa Maria, Calif. Land ----------------------------------------------------------------- SM 101 Six, LLC, asks the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division, to lift the automatic stay imposed in the Chapter 11 case of Anna's Linens, Inc., in order to repossess a property located at 2342 South Bradley Road, Unit B, in Santa Maria, California. SM 101's counsel, Gordon G. May, Esq., at Grant, Genovese & Baratta, LLP, in Irvine, California, asserts that the Debtor has no right to continue occupying the leases premises as the lease had already expired on June 11, 2015, and an unlawful detainer proceeding was already commenced on June 12, 2015. Mr. May tells the Court that lease payments have not been made after the filing of the bankruptcy petition. Mr. May further asserts that the Debtor has no equity in the Property and that the Property is not necessary to an effective reorganization. Mr. May says that if relief from stay is not granted with respect to the Property because the Property is the subject of a lease that may be assumable, SM 101 asks that the Court grant it adequate protection in the form of regular payments at the lease rate from the petition date until assumption or rejection if the lease. The hearing on the Motion is scheduled on July 28, 2015, at 10:30 am. SM 101 is represented by: Gordon G. May, Esq. GRANT, GENOVESE & BARATTA, LLP 2030 Main Street, Suite 1600 Irvine, CA 92614 Telephone: (949)660-1600 Facsimile: (949)660-6060 Email: ggm@ggb-law.com About Anna's Linens Anna's Linens is a specialty retailer offering home textiles, furnishings and decor at attractive prices. Headquartered in Costa Mesa, California, operates a chain of 268 company owned retail stores throughout 19 states in the United States (including Puerto Rico and Washington, D.C.) generates over $300 million in annual revenue and employs a workforce of over 2,500 associates. Anna's Linens sought Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 15-13008) in Santa Ana, California, on June 14, 2015. The case is assigned to Judge Theodor Albert. The Debtor tapped Levene, Neale, Bender, Yoo & Brill LLP as counsel. The Debtor estimated assets of $50 million to $100 million and debt of $100 million to $500 million. The U.S. trustee overseeing the Chapter 11 case of Anna's Linens Inc. appointed seven creditors to serve on the official committee of unsecured creditors. ANNA'S LINENS: Seeks Court's Final Approval of Agency Deal ---------------------------------------------------------- Anna's Linens Inc. is seeking U.S. Bankruptcy Judge Theodor Albert's final approval of its bid to assume an agency agreement with a joint venture selected to conduct the sale of its assets. The bankruptcy judge earlier gave the retailer interim approval to assume the agreement with a joint venture between Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC. The joint venture emerged as the winning bidder at an auction held last month for the right to liquidate Anna's Linens' assets, beating out the stalking horse bidder Tiger Capital Group LLC and Yellen Partners LLC. The winning bid offers a guaranteed recovery of 111% of the cost value of Anna's Linens' merchandise with a so-called "merchandise threshold" of not less than $61.5 million and not more than $67 million, subject to certain adjustments, court filings show. Judge Albert must consider whether to approve or not the payment of a breakup fee to the stalking horse bidder and to The Great American Group LLC, which also took part in the auction. Anna's Linens' has proposed to pay the stalking horse bidder a breakup fee of $650,000, plus expense reimbursement of up to $350,000. Meanwhile, the retailer has proposed to pay $250,000 to Great American. Anna's Linens' official committee of unsecured creditors filed in court an objection to the terms of the sale. The group expressed concern the deal would leave Anna's Linens' estate "administratively insolvent," unable to pay millions of dollars of creditors holding administrative claims. The group also questioned the proposed payment of breakup fees, saying they "do not meet the statutory criteria for administrative expenses that can be put ahead of unsecured creditors." Anna's Linens' also received an objection from tax authorities in Texas and from Welcome Industrial Corp., the retailer's largest unsecured creditor. The tax agencies said they will oppose any move to distribute proceeds from the sale of their collateral unless their claims are paid in full. Welcome Industrial meanwhile seeks clarification that any liens asserted by the company will attach to proceeds from the sale. Both objections have already been resolved, court filings show. About Anna's Linens Anna's Linens is a specialty retailer offering home textiles, furnishings and decor at attractive prices. Headquartered in Costa Mesa, California, operates a chain of 268 company owned retail stores throughout 19 states in the United States (including Puerto Rico and Washington, D.C.) generates over $300 million in annual revenue and employs a workforce of over 2,500 associates. Anna's Linens sought Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 15-13008) in Santa Ana, California, on June 14, 2015. The case is assigned to Judge Theodor Albert. The Debtor tapped Levene, Neale, Bender, Yoo & Brill LLP as counsel. The Debtor estimated assets of $50 million to $100 million and debt of $100 million to $500 million. The U.S. trustee overseeing the Chapter 11 case of Anna's Linens Inc. appointed seven creditors to serve on the official committee of unsecured creditors. ANNA'S LINEN: Has Until July 29 to File Schedules and Statements ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California extended until July 29, 2015, Anna's Linens, Inc.'s time to file schedules of assets and liabilities and statement of financial affairs. About Anna's Linens Anna's Linens is a specialty retailer offering home textiles, furnishings and decor at attractive prices. Headquartered in Costa Mesa, California, operates a chain of 268 company owned retail stores throughout 19 states in the United States (including Puerto Rico and Washington, D.C.) generates over $300 million in annual revenue and employs a workforce of over 2,500 associates. Anna's Linens sought Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 15-13008) in Santa Ana, California, on June 14, 2015. The case is assigned to Judge Theodor Albert. The Debtor tapped Levene, Neale, Bender, Yoo & Brill LLP as counsel. The Debtor estimated assets of $50 million to $100 million and debt of $100 million to $500 million. The U.S. trustee overseeing the Chapter 11 case of Anna's Linens Inc. appointed seven creditors to serve on the official committee of unsecured creditors. STANDARD REGISTER: Needs Until Oct. 8 to File Liquidating Plan -------------------------------------------------------------- The Standard Register Company, et al., ask the U.S. Bankruptcy Court for the District of Delaware to further extend their exclusive plan filing period to October 8, 2015, and their exclusive solicitation period to December 7, 2015, to give them time to close the sale of substantially all of their assets, and, subsequent thereto, wind down their estates. According to the Debtors, following the closing, they intend to pursue a Chapter 11 plan of liquidation to efficiently and expeditiously conclude the proceedings. The extension motion was filed by Andrew L. Magaziner, Esq., Michael R. Nestor, Esq., and Kara Hammond Coyle, Esq., at Young, Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware; and Michael A. Rosenthal, Esq., Samuel A. Newman, Esq., Jeremy L. Graves, Esq., and Matthew G. Bouslog, Esq., at Gibson, Dunn & Crutcher LLP, in New York, on behalf of the Debtors. About Standard Register Standard Register provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. The Official Committee of Unsecured Creditors tapped Lowenstein Sandler LLP as its counsel, Polsinelli PC as Delaware counsel and conflicts counsel, Jefferies LLC as its exclusive investment banker, and Zolfo Cooper, LLC, as its financial and forensic advisors. STANDARD REGISTER: Creditors Sue Silver Point Over Deal ------------------------------------------------------- The Official Committee of Unsecured Creditors in Standard Register's Chapter 11 cases in June filed a lawsuit against Company's board and officers, as well as equity firm Silver Point Capital, L.P., and other firms. The Committee claims that the Company received "less than reasonably equivalent value" in connection with its assumption of $210 million of secured debt related to its acquisition of WorkflowOne, LLC, in 2013. "These Chapter 11 Cases are the final act in a strategy orchestrated by Silver Point to obtain ownership of the Debtors' business, eviscerate hundreds of millions of dollars of unsecured claims, offload liability for the Debtors' underfunded defined benefit pension plan onto the PBGC, and reap the resulting cash flow benefits entirely for itself at the expense of the Debtors' other creditors and stakeholders," the Committee's attorney, Kenneth A. Rosen, Esq., at Lowenstein Sandler LLP, says in the lawsuit. Through the adversary proceeding commenced in the U.S. Bankruptcy Court for the District of Delaware, the Creditors Committee, on behalf of the Debtors' estates, seeks to (among other things): * avoid and unwind, pursuant to sections 544 and 548 of the Bankruptcy Code and applicable state law, the fraudulent transfers made and obligations incurred by certain Debtors, in their largest acquisition ever, in exchange for ownership of their deeply insolvent competitor WorkflowOne in a lopsided transaction in which the Debtors received less than reasonably equivalent value and were left insolvent, undercapitalized, and unable to pay their debts as they came due; * recover damages from the Debtors' board of directors and certain key officers for the breach of their fiduciary duties in approving the wasteful acquisition of WorkflowOne; * recover fees and transaction bonuses paid in connection with the WorkflowOne acquisition; * avoid liens on certain of the Debtors' assets that were not properly perfected prior to the commencement of the Chapter 11 Cases; and * obtain a judgment declaring that certain of the Debtors' assets were unencumbered prior to the commencement of the Chapter 11 cases. The Committee says the relief it seeks through the adversary proceeding will, among other things, substantially reduce the Debtors' obligations, preserve the value of the Debtors' unencumbered assets for the benefit of unsecured creditors, provide meaningful financial recoveries for the Debtors' estates, and prevent Silver Point from obtaining all of the value of the Debtors' business at the expense of the Debtors' other stakeholders, including unsecured creditors. Workflow, a competitor of Standard Register, filed for Chapter 11 bankruptcy in September 2010. It emerged from bankruptcy in February 2011 with a plan pursuant to which, (i) WF Holdings, an entity affiliated with Silver Point, acquired all of the assets, and (ii) the Workflow secured loans were converted into first and second lien notes issued by WF Holdings. Standard Register in 2013 acquired WorkflowOne by agreeing to pay $218 million, notwithstanding WorkflowOne's deteriorating revenues. Standard Register incurred $210 million of new term loan obligations as of the closing of the acquisition. According to the Committee, prior to the WorkflowOne acquisition, Standard Register had very little interest-bearing debt. Although its defined benefit pension plan was underfunded, its capital structure was manageable. Immediately following the acquisition, the Debtors' liabilities exceeded the fair value of their assets. Because Silver Point knew that the acquisition would leave the Debtors overleveraged and that the Debtors would thereafter need to use a chapter 11 proceeding to eliminate their pension liability (in addition to other liabilities), the Committee contends that Silver Point did not act in good faith in extending the terms loans to the Debtors through the WorkflowOne acquisition. The Committee says that Silver Point, as it had done with the Workflow Debtors, caused the Standard Register to commence the Chapter 11 cases on March 12, 2015 to effectuate an acquisition of the Debtors' assets free and clear of liens and claims (including but not limited to the Debtors' underfunded pension liability) pursuant to section 363 of the Bankruptcy Code, with a Silver Point affiliate credit bidding a substantial portion of the prepetition term loans as the stalking horse purchaser. The Committee claims that CEO Joseph P. Morgan, Jr., and CFO Robert M. Ginnan had a significant personal interest in pursuing the WorfklowOne acquisition by virtue of their interest in maintaining their senior officer positions and receiving significant bonuses and other compensation upon consummation of the transaction. A copy of the complaint is available for free at: http://bankrupt.com/misc/Standard_R_Suit_Silver_Point.pdf * * * The Committee in June 2015 won approval of its motion for standing to pursue the lawsuit against the Company's board and Silver Point Capital, L.P., an equity firm that agreed to acquire the Company, over the acquisition of WorkflowOne in 2013. The Debtors, Bank of America, N.A., as agent for the prepetition and postpetition ABL lenders, Silver Point, strongly opposed the Committee's plans to sue, noting, among other things, that the value of Standard Register's common stock increased 380%, from $3 per share to $14.40 per share following the announcement of the WorkflowOne transaction. About Standard Register Standard Register -- http://www.standardregister.com/-- provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. STANDARD REGISTER: Former Workers' Summary Judgment Bids Denied --------------------------------------------------------------- Judge J. Michael Seabright of the United States District Court for District of Hawaii denied motions for summary judgment in the case filed by Standard Register Company and WorkflowOne LLC against their former employees Lynden Keala, Jaxcine Kaulili-Guzon, and Sharon Brown-Henry, as well as against the Individual Defendants' current employer, American Business Forms, Inc., dba American Solutions for Business, based on diversity of citizenship under 28 U.S.C. Section 1332. The Plaintiffs allege that the Individual Defendants violated non- solicitation and/or non-disclosure provisions of their employment agreements when, after leaving to work for ASB, they solicited and/or accepted business from the Plaintiffs' clients and/or disclosed trade secrets. The Amended Complaint makes claims against the Individual Defendants for breach of contract, and against all the Defendants for misappropriation of trade secrets and tortious interference with business relations. WorkflowOne's business is "providing print, print-related, and promotional marketing solutions, including print and promotional marketing and distribution of promotional products." ASB is a competitor of WorkflowOne in the same business. Judge Seabright denied the Defendants' motions for summary judgment as to the consideration issue. Any other aspects of the Motions, if appropriate, may be raised in subsequent motions after sufficient discovery is completed in compliance with the previous Scheduling Order, Judge Seabright ruled. Further, the Plaintiffs are directed to notify the Court and the Defendants regarding their position as to further injunctive relief (given that the covenants at issue appear to be restricted to one year after an individual leaves WorkflowOne). The parties are also directed to contact Magistrate Judge Puglisi to establish new dates and deadlines for the remaining aspects of the litigation. The case is THE STANDARD REGISTER COMPANY, ET AL., Plaintiffs, v. LYNDEN KEALA, ET AL., Defendants, CIV. NO. 14-00291 JMS-RLP (D. Haw.). A full-text copy of Judge Seabright's Order dated June 8, 2015, is available at http://is.gd/xEpKiffrom Leagle.com. Jason W. Hilliard, Esq. -- jason.hilliard@dinsmore.com -- and Ryan W. Green, Esq. -- ryan.green@dinsmore.com -- of Dinsmore & Shohl and James H. Hershey, Esq. -- jhh@fmhc-law.com -- of Fukunaga Matayoshi Hershey Ching & Kop serve as counsel for Plaintiff The Standard Register Company. Richard M. Rand, Esq. -- rrand@marrjones.com -- of Marr Jones & Wang LLLP serves as counsel for Defendant Lynden Keala. About Standard Register Standard Register -- http://www.standardregister.com/-- provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. =============================== T R I N I D A D & T O B A G O =============================== TRINIDAD & TOBAGO: Government Must Tackle Spending -------------------------------------------------- Trinidad and Tobago Newsday reports that Trinidad and Tobago government must "have the political will to address spending." This was the view advanced by the Unit Trust Corporation of Trinidad and Tobago (UTT) in a recent power point presentation on the local and international economic outlook for the second quarter of 2015. In expressing this view, the UTC did not indicate whether it was referring to the incumbent People's Partnership administration or any other political party which could form the government after the September 7 General Election, according to Trinidad and Tobago Newsday. In examining the issue of expenditure, the UTC said the nominal budget shortfall will widen this year, the report notes. "Government may reduce expenditure but given an election year, expect spending to outpace revenues thus driving deficit further into the red," UTC said, the report relates. The report adds that the fiscal deficit is projected to come in at 3.1 percent of Gross Domestic Product (GDP) this year, compared to the estimated shortfall of 2.6 percent of GDP in the last financial year. Total government revenues are expected to fall by ten percent in the 2015 financial year to TT$53. 9 billion, following growth of 13.6 percent in the 2014 financial year, the report discloses. The report notes that the UTC also said this country's nominal budget balance is expected to "remain in the red over the coming years." Structural weakness, an over-reliance on the energy sector amid lower crude oil prices (50 percent of real GDP); according to the UTC, "will serve as headwinds to Trinidad and Tobago's economic performance in the years ahead," notes the report. The report discloses that the UTC said, "These factors will prevent the economy from returning to the 7.8 average annual real GDP growth seen in the decade prior to the 2009 crisis." Against this background, the UTC said, the country can "expect modest real GDP growth averaging 1.5 percent through to 2024." West Texas Intermediate (WTI), the crude oil price against which this country's annual budget is pegged, is expected to average between US$52 and US56 per barrel in 2015 and 2016, the report relays. WTI prices are expected to remain below US$65 per barrel through to 2019, the report notes. The UTC observed that lower oil prices "could spur a prolonged recession," particularly if foreign direct investment (FDI) into the energy sector dries up on the back of smaller prospective profit margins, the report discloses. However on a positive note, the UTC said Government may be able to secure major bilateral loans, which could help to soften the impact of lower oil prices on the country's fiscal account, the report relays. The UTC added that the expansion of the Panama Canal in 2016 could facilitate larger shipments of natural gas to higher priced markets in Asia, notes the report. While TT has crude oil, liquefied natural gas (LNG) and a significant stock of foreign reserves, it is an "open small economy with no controls on profit remittance or capital repatriation," the report says. The report discloses that the UTC explained this means that TT "can run the risk of strong fluctuations in capital outflows (large unidentified foreign exchange transactions)." The UTC also expected a modest depreciation of the TT and identified factors which would prevent a more substantial depreciation of the local currency, the report notes. These included the Central Bank selling US dollars to local banks to soak up the excess liquidity held in reserve at the Central Bank and interest rate hikes to support exchange rate stability, the report relates. ================= X X X X X X X X X ================= LATIN AMERICA: CARICOM States to Push for Debt Write-Off -------------------------------------------------------- RJR News reports that Caribbean Community (CARICOM) is considering a proposal for the region to pursue a gradual write-off of its members' multi-lateral debt. The debt relief strategy was presented by the Economic Commission of Latin America and the Caribbean (ECLAC), at the recent Caricom Heads of Government meeting in Barbados, according to RJR News. Senator A.J Nicholson, Jamaia's Foreign Affairs Minister, in a report in the Senate, said the proposal is for 100 per cent debt write-off over time, and would involve cooperation of multi- lateral institutions, donor countries and small state debtor countries, the report notes. Senator Nicholson said the debt relief would create more fiscal space, and assist member governments in adapting to social, economic and climate challenges, the report adds. *********** 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 2015. 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 * * *