/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/151020.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, October 20, 2015, Vol. 16, No. 207 Headlines B R A Z I L BRAZIL: Next Big Crisis Is Scaring Bankers and Wiping Out Jobs C A Y M A N I S L A N D S ALPINE CAPITAL: Commences Liquidation Proceedings ASPEN BELL: Shareholders' Final Meeting Set for Oct. 30 ASPEN LUCIAN: Shareholders' Final Meeting Set for Oct. 30 ASPEN NOAH: Shareholders' Final Meeting Set for Oct. 30 CREDIT LINKED: Shareholders' Final Meeting Set for Oct. 30 DING YI: Shareholders' Final Meeting Set for Oct. 26 FULLHAN HOLDINGS: Shareholders' Final Meeting Set for Oct. 26 HORIZON SUKUK: Shareholders' Final Meeting Set for Oct. 30 JAPAN SECURITIES: Shareholders' Final Meeting Set for Oct. 30 RX PROPERTIES: Shareholders' Final Meeting Today RYE SELECT: Creditors' Proofs of Debt Due Nov. 30 SAAD INVESTMENTS: Creditors to Hold Meeting Today VINCI ZAFFERANO: Shareholder to Hear Wind-Up Report on Nov. 18 C H I L E RUTA DEL BOSQUE: S&P Affirms then Withdraws 'BB+' Rating on Notes D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Shares in South Florida's US$116 Billion Trade DOMINICAN REP: Despair at Haiti Border as Shutout Enters 9th Day M E X I C O CESPT: Moody's Affirms Ba2/A2.mx Issuer Rating; Outlook Negative DESARROLLADORA HOMES: Says its Shares Can Trade Again P A R A G U A Y VISION BANCO: S&P Affirms BB- Rating; Outlook Negative P U E R T O R I C O ANNA'S LINENS: Court Approves Sale of Store Leases ANNA'S LINENS: Incurs $25.02 Million Net Loss in July ANNA'S LINENS: Net Loss Decreases to $3.36 Million in August PUERTO RICO: In Talks With Treasury to Restructure Island's Debt - - - - - =========== B R A Z I L =========== BRAZIL: Next Big Crisis Is Scaring Bankers and Wiping Out Jobs --------------------------------------------------------------- Blake Schmidt and Cristiane Lucchesi, writing for Bloomberg News, report that in the smog-filled, run-down industrial hubs that ring the southern end of Sao Paulo, Brazil's next big crisis is taking root. Bloomberg News says the labor market, long the country's lone economic bright spot as growth stagnated, is suddenly deteriorating rapidly, driving unemployment all the way up to 7.6 percent from a record-low 4.3 percent at the end of 2014. Nowhere are the layoffs that are fueling that surge more acute than here, in this gritty complex of steel, auto and auto-parts factories built decades ago by the likes of Ford Motor Co. and Volkswagen AG, says the report. Sao Paulo is now losing about 20,000 jobs each and every month, the state's industrial federation estimates. Talk privately with Brazil's most senior bankers and nearly all of them will point to unemployment as a crucial concern, says the report. For starters, it's underpinning the national dissatisfaction that is fanning calls for the impeachment of President Dilma Rousseff and creating policy paralysis in the capital city of Brasilia. More importantly, in a country that has based its growth model in recent years on a credit-fueled boom in consumer spending, it threatens to both deepen the recession -- already the worst since 1990 -- and leave millions of Brazilians scrambling to repay their loans, says Bloomberg News. One year after a massive corruption scandal broke out at the state-run oil company and four months after Brazil officially entered recession, the financial indicators are grim across the board, Bloomberg News relates. The real has fallen more than any other major currency in the world this year; annual inflation has soared to almost 10 percent; the budget deficit has swelled to the widest in at least two decades; and the government's credit rating was cut to junk by Standard & Poor's. Last week, analysts at Itau Unibanco Holding predicted the economy will shrink 3 percent this year and unemployment will top 10 percent by 2016, the report recalls. Bloomberg New says it all marks quite a fall from grace for a BRIC nation that emerged from the 2008 financial crisis so strongly that pundits were touting it as a key engine for global growth alongside China. (In late 2009, The Economist splashed on its cover an image of Rio's famed Christ the Redeemer statue taking off like a rocket.) But commodities back then, unlike now, were still in hot demand, bringing in a flood of cash to a country that's a dominant global exporter of everything from soybeans to iron ore. The current corruption scandal -- which has hobbled Rousseff's deficit-cutting initiatives and hamstrung companies ensnared in the probe -- as well as the effects of years of the government's interventionist measures have only deepened the slump, the report adds. That the jobless rate, often a lagging indicator in any economy, has been the last data point to buckle in the recession isn't unusual, of course, notes Bloomberg News. But what's eye-catching here is how, after confounding local economists by remaining so stubbornly low amid three years of sluggish growth, the rate suddenly spiked higher in just a matter of months. In a week-long series of informal conversations with Sao Paulo bankers, unemployment came up time and again as they laid out the reasons that the recession and financial crisis could intensify. They're worried that the increase in the jobless rate has just begun; that it's eroding consumer demand, leaving once-crowded shopping malls empty; and that, ultimately, it could drive up loan defaults, the report relates. Over the past decade, says Bloomberg News, Latin America's largest economy underwent a spectacular credit boom that helped pull some 40 million Brazilians into the middle class. Total loans in the banking sector climbed five-fold over that time to BRL3.1 trillion. Family household indebtedness, as a percent of annual income, jumped to 46 percent from 20 percent. Borrowing costs are rising now -- the benchmark rate's up to 14.25 percent -- as policy makers try to curb inflation, and loan delinquencies are starting to inch up too. In August, they accounted for 3.1 percent of all loans, the most in two years, the report notes. "Everyone believes this crisis isn't over," the report quoted Marcilio Moreira, an ex-finance minister who formed part of the government team in the early 1990s that struggled to tame hyperinflation, as saying. Brace for things to get worse, he said, "in terms of production, inflation and unemployment." That's bad news for Rossini Santos, a laid-off steel worker, notes the report. Jobs are already plenty hard to find in his home town of Santo Andre. This is the heart of the auto industry complex, the region that people in Sao Paulo call the ABC. It's Brazil's version of Detroit. Names like General Motors Co. and Daimler AG can be found on factories alongside Volkswagen and Ford. Back in the 1970s, it was here that a young labor leader named Luiz Inacio Lula da Silva -- Rousseff's predecessor and mentor -- rose to national prominence, recalls the report. Lula is still revered in these parts, says Bloomberg News. A picture of him posing with local leaders hangs from the wall of the union office that represents Santos. The photo was taken back in 2010, the final year of his presidency. The boom was still on then: the economy grew 7.6 percent that year; car sales rose 30 percent. This year, sales are down 23 percent. And in August, Sao Paulo state lost another 26,000 jobs, bringing the total drop over the past 12 months to 216,000, says the report. ========================== C A Y M A N I S L A N D S ========================== ALPINE CAPITAL: Commences Liquidation Proceedings ------------------------------------------------- Alpine Capital (Cayman) Ltd. has commenced liquidation proceedings. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidators are: Geoffrey Varga Duff & Phelps, LLC 675 Third Avenue, 21st Floor New York, New York USA; and Jess Shakespeare Kinetic Partners (Cayman) Limited 42 North church Street Grand Cayman Cayman Islands ASPEN BELL: Shareholders' Final Meeting Set for Oct. 30 ------------------------------------------------------- The shareholders of Aspen Bell, Limited will hold their final meeting on Oct. 30, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ASPEN LUCIAN: Shareholders' Final Meeting Set for Oct. 30 --------------------------------------------------------- The shareholders of Aspen Lucian, Limited will hold their final meeting on Oct. 30, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ASPEN NOAH: Shareholders' Final Meeting Set for Oct. 30 ------------------------------------------------------- The shareholders of Aspen Noah, Limited will hold their final meeting on Oct. 30, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands CREDIT LINKED: Shareholders' Final Meeting Set for Oct. 30 ---------------------------------------------------------- The shareholders of Credit Linked Notes Ltd. 2006-1 will hold their final meeting on Oct. 30, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands DING YI: Shareholders' Final Meeting Set for Oct. 26 ---------------------------------------------------- The shareholders of Ding Yi Feng Group Limited will hold their final meeting on Oct. 26, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Yuan Chen Beijing Kerry Centre, 22nd Floor South 1 Guang Hua Road Chaoyang District Beijing P.R. China 100020 Telephone: + 86 10 84028800 Facsimile: + 86 84020999 FULLHAN HOLDINGS: Shareholders' Final Meeting Set for Oct. 26 ------------------------------------------------------------- The shareholders of Fullhan Holdings Limited will hold their final meeting on Oct. 26, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Dai Bo East Building A, Room 703 No. 1050, Wuzhong Road Minhang District, Shanghai, PRC Telephone: (021) 6112 1558 HORIZON SUKUK: Shareholders' Final Meeting Set for Oct. 30 ---------------------------------------------------------- The shareholders of Horizon Sukuk Limited will hold their final meeting on Oct. 30, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands JAPAN SECURITIES: Shareholders' Final Meeting Set for Oct. 30 ------------------------------------------------------------- The shareholders of Japan Securities Loan And Investment Program Limited will hold their final meeting on Oct. 30, 2015, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands RX PROPERTIES: Shareholders' Final Meeting Today ------------------------------------------------ The shareholders of RX Properties Fund Ltd will hold their final meeting on Oct. 20, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Julien Leonard Downtown Dubai #1707 P.O Box 123234 Mohammed Bin Rashid Blvd Dubai United Arab Emirates RYE SELECT: Creditors' Proofs of Debt Due Nov. 30 ------------------------------------------------- The creditors of Rye Select Broad Market Insurance Portfolio, LDC are required to file their proofs of debt by Nov. 30, 2015, to be included in the company's final dividend distribution. The company's liquidator is: Eleanor Fisher c/o Kevin Gulrey Zolfo Cooper, Suite 776 10 Market Street, Camana Bay Grand Cayman, KYI-9006 Cayman Islands Telephone: (345) 814-4038 Facsimile: (345) 946-0082 SAAD INVESTMENTS: Creditors to Hold Meeting Today ------------------------------------------------- The creditors of Saad Investments Company Limited will hold a meeting today, Oct. 20, 2015, at 9:00 a.m., at the offices of Grant Thornton Specialist Services (Cayman) Limited, 48 Market Street, 2nd Floor, Suite 4290, Canella Court in Camana Bay, Grand Cayman, Cayman Islands. Creditors may also attend at the offices of Linklaters LLP, in 1 Silk Street, London eC2Y 8HQ (at 3p.m. UK time). VINCI ZAFFERANO: Shareholder to Hear Wind-Up Report on Nov. 18 -------------------------------------------------------------- The shareholder of Vinci Zafferano Emerging Markets Opportunities Master Fund Limited will hear on Nov. 18, 2015, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Highwater Limited c/o Nicole Gagliano Telephone: (345) 943 2295 Facsimile: (345) 943 2294 Grand Pavilion Commercial Centre, 1st Floor 802 West Bay Road P.O. Box 31855 Grand Cayman KY1-1207 Cayman Islands ========= C H I L E ========= RUTA DEL BOSQUE: S&P Affirms then Withdraws 'BB+' Rating on Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' long-term senior secured debt ratings on Ruta del Bosque Sociedad Concesionaria S.A.'s (RdB's) notes and subsequently withdrew the rating at issuer's request. The outlook at the time of the withdrawal was stable. The 'BB+' debt ratings on RdB reflected a 'bb+' stand-alone credit profile. The bond insurance provider is Syncora Guarantee Inc. (not rated, formerly XL Capital Assurance). The rating affirmation reflected S&P's expectations that the RdB should generate adequate cash flows with minimum and average debt service coverage ratios (DSCR) that would remain in line with S&P's base case scenario -- at 1.24x and 1.45x, respectively -- in the next five years, when S&P expects the concession to expire. In addition, the affirmation incorporated S&P's expectations that the project will continue to generate sizable cash balances, which will strengthen its liquidity position and enable the prepayment of bonds at the end of the concession. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Shares in South Florida's US$116 Billion Trade ------------------------------------------------------------------ Dominican Today reports that the Dominican Republic is South Florida's fifth largest trading partner globally and takes its share of Miami Customs District's total of US$116 billion in international trade last year. The figure was revealed during a business a conference of the Dominican International Business Tourism & Development Federation as part of Hispanic Heritage month in the US, according to Dominican Today. The report notes that Miami-Dade County 12th district commissioner Jose "Pepe" Diaz headed the event and lauded Dominican Republic- Miami's "great business," with many Dominican residents and home owners and retailers. Mr. Diaz said international trade creates business opportunities for both countries, the report relates. "That's why I invite your organization to consider bringing a trade mission from the Dominican Republic to Miami-Dade County," the report quoted Mr. Diaz as saying. Federation president and founder Pedro Diaz Ballester cited the objectives and convenience of his organization's work headed by Dominicans and Dominican-Americans, but among its members also figure Americans, Hispanics and other nationalities, and from the most important areas of business, tourism and development, the report notes. Quoted by listin.com.do, Mr. Diaz stressed Dominican Republic's benefits for business purposes, especially those who enjoy its ambiance and attractions and a growing market for conferences, fairs, conventions and incentives at Bavaro-Punta Cana, Santo Domingo, Puerto Plata, Santiago, Juan Dolio, Bayahibe, and other attractive areas on the advantages such as its eight international airports, among other factors, the report notes. DOMINICAN REP: Despair at Haiti Border as Shutout Enters 9th Day ---------------------------------------------------------------- Dominican Today, citing local media, reports that nine days of a shuttered Dominican-Haiti binational market has brought despair to both sides of the border as merchants' profits dwindle and consumers have to buy foods at inflated prices. A carton of eggs which had cost from DOP150 to DOP200, surged to DOP450, while similar jumps on other items have led to rising cases of smuggling of goods such as garlic and rum, according to Dominican Today. Hundreds of Haitians flock to the border gate next to the Masacre river bridge trying to enter the Dominican side to stock up on products while a group of Dominican merchants calls to reopen the market, the report notes. The report relates that Dajabon merchants have also blocked the entry of workers to the Binational Free Zone, to press the government for a solution to the standoff stemming from Haiti's ban on the overland entry of 23 Dominican products into its territory. Meanwhile, Dominican Border Security (Cesfront) agents have conducted raids leading to the confiscation of an SUV that transported cocaine and marijuana at Puesto Canongo, near Dajabon, the report notes. =========== M E X I C O =========== CESPT: Moody's Affirms Ba2/A2.mx Issuer Rating; Outlook Negative ---------------------------------------------------------------- Moody's de Mexico affirmed CESPT's issuer ratings at Ba2/A2.mx and the negative outlook. At the same time, Moody's affirmed the debt ratings on a MXN 280 million (original face value) enhanced loan from Banorte to CESPT at Ba2 (Global Scale, local currency) and A1.mx (Mexico National Scale). RATINGS RATIONALE RATIONALE FOR THE RATING AFFIRMATION The affirmation of CESPT's issuer ratings reflects an improvement in the water company's financials over 2014 and the first half of 2015. It also reflects Moody's view that the company plays a strategic role for the state of Baja California (Baa3/Aa3.mx, negative). CESPT's main source of revenue is the collection of water bills in the relatively wealthy urban areas of Tijuana and Rosarito. Moody's considers that CESPT's capacity to collect these revenues is not affected by the change in outlook of the State of Baja California to negative from stable. The affirmation of the rating on the enhanced loan reflects Moody's assessment that the credit quality of the cash flows entering into the trust are directly tied to CESPT's fundamental credit characteristics. The affirmation of the national scale rating at A1.mx considers the relative strengths of the loan as compared with CESPT's A2.mx ratings. These include a strong track record with a solid debt service coverage that averaged 6x in 2013 and a reserve fund equivalent to 3x. Such performance provides a better protection to the lender than the standalone credit quality of CESPT. RATIONALE FOR NEGATIVE OUTLOOK CESPT's negative outlook reflects our expectations that the metrics of the State of Baja California, CESPT's support provider, could deteriorate in the medium-term, impairing its ability to provide extraordinary support in case of need. WHAT COULD CHANGE THE RATINGS UP/DOWN Given the negative outlook, Moody's does not expect upward pressure in the medium term. The outlook could be moved to stable if the company maintains or improves positive operating margins and reduces debt levels. Jointly, a stabilization of the state's outlook could also lead to a stabilization of CESPT's issuer ratings. The continuous posting of negative operating margins with an increase in debt levels, or a further weakening of liquidity, could exert downward pressure on the ratings. A further downgrade of the state which, in Moody's opinion, could affect its capacity to provide support in case of financial distress, could also exert downward pressure on CESPT's issuer ratings. The principal methodology used in these ratings was Government- Related Issuers published in October 2014. The period of time covered in the financial information used to determine Comision Estatal de Servicios Pub de Tijuana's rating is between 01/01/2010 and 31/12/2014 (source: Comision Estatal de Servicios Pub de Tijuana). DESARROLLADORA HOMES: Says its Shares Can Trade Again ----------------------------------------------------- Elinor Comlay at Reuters reports that Desarrolladora Homex, S.A.B. de C.V., which emerged from bankruptcy proceedings in July, said that the national securities regulator CNBV has cleared its shares to trade again. Homex shares were suspended last year, when a debt crisis and lack of demand for its homes prompted the company to file for bankruptcy, according to Reuters. The shares, which closed at MXN3.15 in February 2014, were untraded as of 1600 GMT (1100 local time), according to Reuters' Oct. 15 report. 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 April 18, 2013, Fitch Ratings downgrades Desarrolladora Homex, S.A.B. de C.V.'s ratings as follows: -- Foreign currency Issuer Default Rating (IDR) to 'B' from 'BB'; -- Local currency IDR to 'B' from 'BB-'; -- USD250 million in senior notes due 2015 to 'B/RR4' from 'BB-'; -- USD250 million in senior notes due 2019 to 'B/RR4' from 'BB-'; -- USD400 million in senior notes due 2020 to 'B/RR4' from 'BB-'. The ratings remain on Rating Watch Negative. =============== P A R A G U A Y =============== VISION BANCO: S&P Affirms BB- Rating; Outlook Negative ------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Vision Banco S.A.E.C.A. and Banco Continental SAECA to negative from stable. In addition, S&P affirmed its 'BB-' and 'BB' ratings on these banks, respectively. S&P also affirmed its 'BB/B' ratings on Banco Bilbao Vizcaya Argentaria Paraguay S.A. (BBVA Paraguay) and S&P's 'BB-' ratings on Banco Regional S.E.A.C.A. The outlook on these two banks remains stable. S&P maintains its BICRA on Paraguay (foreign currency: BB/Positive/B; local currency: BB/Positive/B) at group '8', with an anchor for banks operating in the country at 'bb-'. S&P also maintains its '8' economic and industry risk scores. However, S&P revised the BICRA economic risk trend to negative from stable and kept the industry risk trend as stable. In S&P's view, the Paraguayan financial system's credit risk is rising amid high dollarization, thanks to which almost a half of dollar-denominated loans in the system are concentrated in cyclical sectors. S&P considers the latter could pose additional risks during economic slowdown, lower commodities prices, and sluggish regional economy. If the negative economic risk trend materializes, S&P would revise its BICRA to group '9' from group '8' and the anchor to 'b+' from 'bb-.' S&P considers Paraguayan banking system, although still resilient to global economic downturn, to be exposed to weaker commodity prices and weather-related risk and to dollar-denominated lending to cyclical sectors such as agriculture and livestock. In addition, the weak economies of Paraguay's main trading partners in the region and lower soy bean prices could dent these two sectors' performance. Dollarization remains high, with about 50% of total lending denominated in dollars. Although S&P takes into account the natural hedge these two sectors offer given that receipts are mostly denominated in dollars, S&P still considers that a significant depreciation of the Guaran¡ and further deterioration of Paraguay's trading partners could pose significant risk to the banking system. As of 2014, about 47% of dollar-denominated loans were to agricultural and livestock sectors. S&P expects credit growth to be in the range of 15%-20% for the next two years in nominal terms, influenced by GDP growth trends and the Guarani's weakening pace against the dollar. S&P believes that this rapid credit expansion associated with still low GDP per capita could add risks -- in the form of lower payment capacity -- to the financial system as household and corporate debt climb. S&P still considers nonperforming loans (NPLs) and credit losses to be manageable, although S&P expects NPLs to domestic loans to increase to a range of 3.0%-3.5% in the next two years, and credit losses to 1.5%-2.0%. Conversely, S&P could revise the economic risk trend to stable in the next 12-24 months if it considers that asset quality metrics in the banking system prove to be resilient to the adverse economic conditions in the region and if S&P assess that banks haven't relaxed their underwriting standards amid rapid lending growth. ====================== P U E R T O R I C O ====================== ANNA'S LINENS: Court Approves Sale of Store Leases -------------------------------------------------- Judge Theodor C. Albert of the U.S. Bankruptcy Court for the Central District of California approved the sale of Anna's Linens, Inc.'s store leases, free and clear of interests. The Debtor's sale of its unexpired store real property leases was made at an auction held on August 27, 2015. Decron Properties Corp., as agent for the landlord NF Plant Enterprises, was deemed the successful bidder for the Store Lease for Store No. 97, which is located at 7888-2 Van Nuys Boulevard, in Van Nuys, California. FP Stores, Inc., was deemed the successful bidder for the remaining 41 Store Leases. The Court authorized the Debtor to assume the FP Store Leases and to assign the FP Store Leases to FP. Judge Albert scheduled a hearing on October 28, 2015, at 10:00 a.m., for the Court to consider any requests by landlords under the FP Store Leases for the payment of additional cure amounts related solely to attorneys' fees asserted by landlords to be due and payable under their respective leases which have not been resolved by mutual agreeement of the Debtor and the applicable landlords. Anna's Linens, Inc., is represented by: David B. Golubchik, Esq. Eve H. Karasik, Esq. Juliet Y. Oh, Esq. Lindsey L. Smith, Esq. LEVENE, NEALE, BENDER, YOO & BRILL L.L.P. 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Telephone: (310)229-1234 Facsimile: (310)229-1244 Email: DBG@LNBYB.COM EHK@LNBYB.COM JYO@LNBYB.COM LLS@LNBYB.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: Incurs $25.02 Million Net Loss in July ----------------------------------------------------- Anna's Linens, on August 24, 2015, filed a monthly operating report for the period for the period July 6, 2015, to August 2, 2015. The Debtor incurred a net loss of $25.02 million for the period. For the reporting period, the Debtor posted total assets of $43.86 million, total liabilities of $126.07 million, and -$82.21 million in total shareholders' equity. The Debtor had $9.51 million cash at the start of the period. It listed $144.04 million in total receipts and $137.18 million in total disbursements for the period. The Debtor ended the period with $16.37 million. A copy of the monthly operating report is available at: http://bankrupt.com/misc/ANNASLINENSjul2015mor.pdf 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: Net Loss Decreases to $3.36 Million in August ------------------------------------------------------------ Anna's Linens, on September 15, 2015, filed a monthly operating report for the period August 2, 2015, to August 30, 2015. The Debtor incurred a net loss of $3.36 million for the period. As of August 30, 2015, the Debtor posted total assets of $21.67 million, total liabilities of $107.24 million, and -$85.57 million in total shareholders' equity. The Debtor had $16.37 million cash at the start of the period. It listed $109.91 million in total receipts and $114.51 million in total disbursements for the period. The Debtor ended the period with $11.77 million. A copy of the monthly operating report is available at: http://bankrupt.com/misc/ANNASLINENSaug2015mor2.pdf 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. PUERTO RICO: In Talks With Treasury to Restructure Island's Debt ---------------------------------------------------------------- Matt Wirz at The Wall Street Journal reports that Puerto Rico and U.S. officials are discussing the issuance of a "superbond" possibly administered by the U.S. Treasury Department that would help restructure the commonwealth's $72 billion of debt, people familiar with the plan said. Under the plan, the Treasury or a designated third party would administer an account holding at least some of the island's tax collections, according to The Wall Street Journal. Funds in the account would be used to pay holders of the superbond, which would be issued to existing Puerto Rico bondholders in exchange for outstanding debt at a negotiated ratio, the report notes. The report relates that investors would receive less debt, likely taking an effective "haircut" on the value of their holdings, but would have higher expectations for getting repaid. The proposal would mark an important change in Puerto Rico's relationship with the U.S. government, which has resisted wading into the island's debt morass, the report says. A superbond would need to clear high political hurdles in Washington and Puerto Rico to become a reality. Discussions with bondholders over the size of any haircut could present further challenges to reaching a deal, notes the report. Talks between Puerto Rico's representatives and Treasury officials are preliminary, and any plan wouldn't include financial aid or a U.S. guarantee of Puerto Rico debt, the people said, the report discloses. They said the proposed bond would be just one piece of a restructuring puzzle that the island's government is trying to assemble, after admitting this year that it cannot pay its debt in full, the report relays. The plan has no immediate precedent but echoes in some respects the Brady bonds used in Latin American debt restructurings of the 1980s. One major difference: Those bonds, named for former Treasury Secretary Nicholas Brady, were backed by Treasury-issued zero-coupon bonds, which guaranteed repayment of the principal and part of the interest of the Latin debt, the report notes. The Obama administration "has said repeatedly that it has no plans to provide a bailout to Puerto Rico," and the Treasury Department isn't engaged in talks to "undertake any of Puerto Rico's financial obligations," a Treasury spokesman said, the report relays. The Treasury and the commonwealth are debating how much of Puerto Rico's taxes would be funneled to the account and who would collect the taxes, the people said, the report notes. Puerto Rico's leaders may not be willing to surrender control of tax revenue as required by the deal, the people said, the report discloses. Depending on how it is structured, it could also require congressional approval, the report says. Puerto Rico hasn't been able to sell bonds after years of issuing new debt to fund budget deficits, the report notes. The commonwealth and its advisers have been working for months to develop a package of fiscal and financial overhauls, the report relays. According to WSJ, a superbond could be appealing to creditors. Hedge funds that own billions of dollars of Puerto Rico debt have been pushing the idea of a superbond for months, hoping it would prevent a default and boost the value of their investments. Bondholders have been unwilling to swap the debt they hold for new bonds backed only by tax revenues under Puerto Rico's supervision because they fear the money could be diverted, the report relates. Puerto Rico is working with law firm Cleary Gottlieb Steen & Hamilton LLP, a specialist in government defaults, and Millstein & Co., a financial-advisory firm founded by the Treasury's former chief restructuring officer, Jim Millstein, who ran the successful turnaround of American International Group Inc, the report notes. Puerto Rico cannot restructure its bonds in bankruptcy court because it is a commonwealth, not a state. Democratic lawmakers have proposed bills making the island's municipal entities eligible for bankruptcy protection, the report relays. Republicans in Congress have floated the idea of a federal control board and have said they want Puerto Rico to produce a more detailed plan to balance its budget before they support the legislation, the report discloses. Concerns about a potential default intensified over the summer as it became clear Puerto Rico was using tax revenue earmarked for debt payments to plug budget gaps, the report recalls. The commonwealth disclosed in September that it expects a $205 million shortfall this year when large bond payments are due. Government Development Bank of Puerto Rico bonds that mature in 2016 traded at 49 cents on the dollar this month compared with 77 cents on the dollar in June, according to data from Electronic Municipal Market Access, WSJ relays. Fears of a default are intensifying divisions between different types of bondholders who are splitting into various factions, each of which claims priority in the event of a restructuring, the report discloses. "Our view has always been that there's a high probability of disorderly litigation here, and we see this looming now as imminent," said Ted Hampton, an analyst at Moody's Investors Service, the report notes. In September, a bondholder group represented by GLC Advisors & Co. with more than $5 billion in bonds of different stripes split into separate groups, the report relays. Mutual funds managed by OppenheimerFunds Inc. and Franklin Advisers Inc. also own billions of dollars of Puerto Rico debt, while bond insurers Assured Guaranty Ltd., MBIA Inc. and Ambac Financial Group Inc. have guaranteed billions of dollars of bonds, the report notes. Puerto Rico is attempting to capitalize on the divisions by agreeing to negotiate only with bondholders who agree not to discuss terms with investors holding different types of bonds, a person involved in the talks said, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 14, 2015, Standard & Poor's Ratings Services lowered its ratings on the Commonwealth of Puerto Rico's tax-backed debt to 'CC' from 'CCC-' and removed the ratings from CreditWatch, where they had been placed with negative implications July 20. The outlook is negative. *********** 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 * * *