/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160407.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 Thursday, April 7, 2016, Vol. 17, No. 68 Headlines B O L I V I A BOLIVIA: To Get US$90MM IDB Loan to Improve Water, Irrigation B R A Z I L BRAZIL: Bankruptcy Filings More Than Double as Recession Deepens RUMO LOGISTICA: Fitch Says Capital Hike Cuts Pressure on Ratings C A Y M A N I S L A N D S BERMA LIMITED: Members' Final Meeting Set for April 18 BK-SAMUI: Members' Final Meeting Set for April 14 CORDIA HOLDINGS: Commences Liquidation Proceedings DEMETER HEDGING: Members' Final Meeting Set for April 18 DEMETER HEDGING LTD: Members' Final Meeting Set for April 16 DOWNSTREAM LTD: Commences Liquidation Proceedings ECHO INVESTMENT: Creditors' Proofs of Debt Due May 14 EUSTACE CAYMAN: Commences Liquidation Proceedings HAMBURG FINANCE: Creditors' Proofs of Debt Due April 13 MOONCREST LTD: Members' Final Meeting Set for April 18 REDBREAST AEROSPACE: Placed Under Voluntary Wind-Up ROSFUND SPC: Creditors' Proofs of Debt Due April 13 SEEED INC: Creditors' Proofs of Debt Due April 13 TARA INVESTMENTS: Placed Under Voluntary Wind-Up THA LIMITED: Members' Final Meeting Set for April 14 TURTLE BAY: Commences Liquidation Proceedings D O M I N I C A N R E P U B L I C DOMINICAN REP: To Review Business Sector's Substantial Tax Breaks M E X I C O MEXICO: Foreign Reserves Rise by $811 Million P U E R T O R I C O ALONSO & CARUS: Settlement With Banco Popular Approved ALONSO & CARUS: Wins Approval of Consensual Plan CANEJAS S.E.: Case Summary & 14 Unsecured Creditors PACIFIC SUNWEAR: Said to Be Preparing to File for Bankruptcy SPORTS AUTHORITY: Brown Rudnick Representing Term Loan Lenders SPORTS AUTHORITY: April 22 Auction of Assets - - - - - ============= B O L I V I A ============= BOLIVIA: To Get US$90MM IDB Loan to Improve Water, Irrigation ------------------------------------------------------------- Bolivia will reform its public policies to improve the coverage and management of irrigation, potable water and sanitation services with a $90 million loan from the Inter-American Development Bank (IDB). The loan will help the Bolivian government to improve planning, strengthen institutional development, apply financial policies and develop monitoring and evaluation instruments in the areas of potable water, sanitation and irrigation. The reforms achieved through these reforms will help to expand potable water services to 83 percent of homes, while sanitation services would be expanded to 56 percent of the population. "The program will improve investment planning, which will allow an emphasis on some of the poorer sectors of society," said Omar Garzonio, head of the IDB's project team. "These include peri- urban, rural and small-town populations, with the goal of reducing the gap in coverage compared to major urban centers." The program also will support irrigation in Bolivia. While one- third of the working population of the country is involved in agriculture, less than 10 percent of the area under cultivation has irrigation, a relatively low level for Latin America. "The country is pushing hard to expand the area with irrigation, and this project will help it to reach that goal," said Garzonio. The credit, which will be executed by the Ministry for the Environment and Water, will help to expand irrigated lands by about 60,000 hectares. The financing -- the second and last part of programmatic loans for the sector, also will allow substantial improvements in the operational and financial efficiency of water and sanitation services. The IDB loan has two parts: One for $76.5 million from ordinary capital, for 30 years, with a six-year grace period and an interest rate based on LIBOR; and a $13.5 million installment from the Special Operations Fund, for 40 years, with a 40-year grace period and an interest rate of .25 percent. =========== B R A Z I L =========== BRAZIL: Bankruptcy Filings More Than Double as Recession Deepens ---------------------------------------------------------------- Pilar Olivares at Reuters reports that bankruptcy protection requests in Brazil more than doubled in the first quarter from the year-earlier period, as businesses suffered from the highest borrowing costs in a decade and a steep recession dragged down revenue, credit Research Company Serasa Experian said. Companies filed 409 requests for court protection from creditors last quarter, the highest number since the country enacted a bankruptcy law in 2005, Serasa said in a report, according to Reuters. In the first quarter of last year, 191 companies sought bankruptcy protection, Serasa said, Reuters notes. "Brazil's deepening recession and an increase in operational and financial costs have led to successive records in the number of bankruptcy protection filings," Serasa said in the report, Reuters relays. Small-sized companies filed more than half of the first quarter's requests, the report discloses. Brazil's economy has been going through the second year of what is expected to be its worst recession in more than a century, the report notes. The central bank expects the economy to shrink 3.5 percent this year following a contraction of 3.8 percent in 2015, the report adds. Brazil's benchmark interest rate, at 14.25 percent, is also among the highest of the world's major economies, says Reuters. As reported in the Troubled Company Reporter-Latin America on March 29, 2016, severe contraction that was preceded by several years of below-trend growth has impaired Brazil's (Ba2 negative) underlying economic strength, despite the country's large and diversified economy, says Moody's Investors Service. The country's credit rating is also coming under pressure from the government's high level of mandatory spending. RUMO LOGISTICA: Fitch Says Capital Hike Cuts Pressure on Ratings ---------------------------------------------------------------- The initiatives announced by Rumo Logistica Operadora Multimodal S.A. (Rumo) on March 28, 2015 regarding the rebalancing of capital structure and liquidity are, in the opinion of Fitch Ratings, positive for the ratings of Rumo and America Latina Logistica S.A. (ALL). These initiatives consist of the issuance of BRL2.9 billion in new debt to refinance Rumo's short- and medium-term debt and the proposal of a new share offering for a minimum of BRL2 billion. The company also announced the likely financial support to be received from Banco Nacional de Desenvolvimento Economico e Social (BILLIONDES, the Brazilian Development Bank) in the financing of its capex program. The announcement does not affect Rumo's and ALL's ratings as they already incorporate the companies' satisfactory financial flexibility and ability to refinance their short-term debt with new medium- and long-term debt. However, if combined with satisfactory business performance, the favorable terms of debt, the extensions and expected material liquidity enhancements are all considered credit positives that should lead to rating stabilization in the future. "Fitch understands that the conclusion of these initiatives will reduce the company's refinancing risks considerably. Along with the high consolidated leverage, refinancing risk is one of our main concerns. The ratings already incorporate the expectation that the company will improve its cash-to-short-term debt coverage ratio during the whole capex period, and that BILLIONDES will finance a large part of these investments with terms that suit the company's future cash flow." As of Dec. 31, 2015, Rumo's liquidity position was tight. The company reported, on a pro forma basis, BRL581 million of cash and marketable securities, and BRL12.9 billion of consolidated debt, to yield cash-to-short-term debt coverage of only 0.3x. The new issuance of BRL2.9 billion should consist of debentures with a total tenor of eight years including a grace period of 3.5 years. The company will use the proceeds to repay debt due in 2016, 2017 and 2018. "While materially strengthening the company's consolidated liquidity, the restricted share offering is not expected to significantly change Rumo's leverage metrics, which are still high for the rating category. As of Dec. 31, 2015, the net adjusted debt/EBITDAR ratio was 6.4x and we do not expect this to significantly change in 2016. On a pro forma basis, which incorporates the debenture issuance, Rumo's net leverage would be around 5.2x at year-end 2016." Following conclusion of the ongoing measures, the company will still face the major challenge to capture increasing load volumes and raise its business operations profitability. Rumo needs to continue reinforcing its business base and operating cash flow generation in order to push gradual and sustainable deleveraging. In Fitch's view, the issuance of long-term financing to fund the company's aggressive investment plan is a key factor that will contribute to the growth of its operating base, lead to scale gains and, consequently, the expansion of its operating cash flow generation capacity, based on healthy financial flexibility. More prominent leverage reduction is expected to start in 2017, when the cash flow from large part of Rumo's medium-term investment program is expected to kick in. Fitch rates Rumo and ALL with Foreign and Local Currency Issuer Default Ratings (IDRs) of 'BB-' and Long-Term National Rating of 'A(bra)', both with a Negative Outlook. The other ALL subsidiaries are rated Long-Term National Rating 'A(bra)', Negative Outlook. Fitch also rates the unsecured debenture issuances of all these companies with a Long-Term National Rating of 'A(bra)'. ========================== C A Y M A N I S L A N D S ========================== BERMA LIMITED: Members' Final Meeting Set for April 18 ------------------------------------------------------ The members of Berma Limited will hold their final meeting on April 18, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands BK-SAMUI: Members' Final Meeting Set for April 14 --------------------------------------------------- The members of BK-Samui Limited will hold their final meeting on April 14, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ellen J. Christian c/o BNP Paribas Bank & Trust Cayman Limited Royal Bank House, 3rd Floor 24 Shedden Road, George Town P.O. Box 10632 Grand Cayman KY1-1006 Cayman Islands e-mail: ellen.christian@bnpparibas.ky CORDIA HOLDINGS: Commences Liquidation Proceedings -------------------------------------------------- On March 4, 2016, the sole shareholder of Cordia Holdings Limited 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: Ian Goddard Telephone: (345) 926 0860 P.O. Box 2734 Grand Cayman KY1-1111 Cayman Islands DEMETER HEDGING: Members' Final Meeting Set for April 18 -------------------------------------------------------- The members of Demeter Hedging (Americas) Ltd. will hold their final meeting on April 18, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands DEMETER HEDGING LTD: Members' Final Meeting Set for April 16 ------------------------------------------------------------ The members of Demeter Hedging Ltd. will hold their final meeting on April 16, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands DOWNSTREAM LTD: Commences Liquidation Proceedings ------------------------------------------------- On March 4, 2016, the sole shareholder of Downstream Ltd. 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: Tim Miller Apt. 619, 4025 McGinnis Ferry Road Suwanee, Georgia 30024 United States ECHO INVESTMENT: Creditors' Proofs of Debt Due May 14 ----------------------------------------------------- The creditors of Echo Investment Holdings Limited are required to file their proofs of debt by May 14, 2016, to be included in the company's final dividend distribution. The company's liquidator is: Margot Macinnis Harbour Place, Ground Floor 103 South Church Street Camana Bay Grand Cayman KY1-9006 Cayman Islands Telephone: +1 (345) 743 8800 Fscsimile: +1 (345) 743 8801 EUSTACE CAYMAN: Commences Liquidation Proceedings ------------------------------------------------- On March 1, 2016, the shareholders of Eustace Cayman 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: Michel Byungju Kim Harneys Services (Cayman) Limited Harbour Place, 4th Floor 103 South Church Street P.O. Box 10240 Grand Cayman KY1-1002 Cayman Islands Telephone: +1 (646) 573 - 6818 e-mail: mbkim2005@hotmail.com HAMBURG FINANCE: Creditors' Proofs of Debt Due April 13 ------------------------------------------------------- The creditors of Hamburg Finance Company A.G. are required to file their proofs of debt by April 13, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 22, 2016. The company's liquidator is: Gladys Patino Pineapple Grove #5 Lyford Cay P.O. BOX SP 64284 Nassau, Bahamas Telephone: (305) 372-0404 Facsimile: (305) 372-2399 MOONCREST LTD: Members' Final Meeting Set for April 18 ------------------------------------------------------ The members of Mooncrest Ltd will hold their final meeting on April 18, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands REDBREAST AEROSPACE: Placed Under Voluntary Wind-Up --------------------------------------------------- On March 4, 2016, the shareholders of Redbreast Aerospace Limited resolved 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: Avalon Ltd. Reference: GL Landmark Square, 1st Floor, 64 Earth Close P.O. Box 715, Grand Cayman KY1-1107 Cayman Islands Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 ROSFUND SPC: Creditors' Proofs of Debt Due April 13 --------------------------------------------------- The creditors of Rosfund SPC are required to file their proofs of debt by April 13, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 3, 2016. The company's liquidator is: Jess Shakespeare c/o Camele Burke Duff & Phelps (Cayman) Limited The Harbour Centre 42 North Church Street P.O. Box 10387 Grand Cayman KY1-1004 Cayman Islands Telephone: (345) 623 9904 Facsimile: (345) 943 9900 SEEED INC: Creditors' Proofs of Debt Due April 13 ------------------------------------------------- The creditors of Seeed Inc. are required to file their proofs of debt by April 13, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 20, 2016. The company's liquidator is: Hao Pan 136 Ningxia Street Qingyang District Chengdu City Sichuan Province PRC Telephone: +86 15889668658 Facsimile: 0086 755 26978025 TARA INVESTMENTS: Placed Under Voluntary Wind-Up ------------------------------------------------ At an extraordinary general meeting held on Feb. 29, 2016, the shareholder of Tara Investments Ltd resolved 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: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 THA LIMITED: Members' Final Meeting Set for April 14 ---------------------------------------------------- The members of Tha Limited will hold their final meeting on April 14, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Zedra Holdings (Cayman) Limited c/o Zedra Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands TURTLE BAY: Commences Liquidation Proceedings --------------------------------------------- At an extraordinary general meeting held on March 3, 2016, the members of Turtle Bay - Lig Holdings Limited 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: David Dyer P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949-8244 Facsimile: (345) 949-5223 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: To Review Business Sector's Substantial Tax Breaks ----------------------------------------------------------------- Dominican Today reports that President Danilo Medina said that in the next term in office a fiscal pact is one of the government priorities, including a "comprehensive" review of the "substantial" tax breaks for business sectors. President Medina said the current tax system needs changing and redirect those tax exemptions to economic activities which are more productive, avoiding unfair competition to strengthen the country's competitiveness, according to Dominican Today. Speaking in the American Chamber of Commerce's (AMCHAMDR) monthly luncheon, President Medina stressed that the tax breaks represent as much as 7% of GDP, the report notes. "The Fiscal Pact will be a priority in a second term; however, I want to alert you that we will not wait until the pact is signed to take measures to ensure the sustainability of public finances," the report relays. President Medina said more than in any other Latin American nation, 94 of the country's productive sectors get tax exemptions, compared with 66 in Nicaragua, and only two in Chile, the report discloses. The presidential candidate of the ruling party (PLD) in the May 15 elections also said the Fiscal Pact should identify which sectors that now get special treatment are willing to pay taxes, the report says. "This will let the state gradually remove the tariffs from areas of great importance for development, which have a high tax burden even above the regional average, such as telecommunications," President Medina added. As reported in the Troubled Company Reporter-Latin America on Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B+'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The issue ratings on the Dominican Republic's senior unsecured foreign and local currency bonds are affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the short-term foreign currency IDR at 'B'. =========== M E X I C O =========== MEXICO: Foreign Reserves Rise by $811 Million --------------------------------------------- EFE News reports that Mexico's foreign reserves rose by $811 million to $177.47 billion last week, the Bank of Mexico said. Gold and foreign currency reserves increased in the week ending April 1 due to sales of dollars by state-owned oil giant Pemex to the central bank and a rise in the value of assets on the balance sheet, the Bank of Mexico said in a statement, according to EFE News. Foreign reserves have risen by $741 million since the end of 2015, the Bank of Mexico said, the report notes. The M1 money supply, which includes currency, coins and demand deposits, fell by MXN27.45 billion (about $1.54 billion) to nearly MXN1.21 trillion (some $68.29 billion) last week, the central bank said, the report relays. The money supply has contracted by MXN30.13 billion (nearly $1.7 billion) since Jan. 1, the report adds. ====================== P U E R T O R I C O ====================== ALONSO & CARUS: Settlement With Banco Popular Approved ------------------------------------------------------ Alonso & Carus Iron Works, Inc., and secured creditor Banco Popular de Puerto Rico won approval from the Bankruptcy Court of a stipulation regarding the treatment of BPPR's claim under the Debtor's plan of reorganization. In order to quickly and expeditiously resolve the outstanding issues among them, the Debtor and BPPR have reached an agreement providing that BPPR will have a fixed allowed reconciled secured claim of $10,228,162. The Secured Claim will be paid with equal monthly payments of $67,007, including principal and interests, at 5.25% per annum. The Secured Claim will be paid by the Debtor in monthly payments of $67,007 with a final balloon payment for the outstanding amount then due for the Claim on or before Feb. 1, 2021. Attorneys for Banco Popular de Puerto Rico: O'NEILL & BORGES, LLC Luis C. Marini-Biaggi, Esq. Nayuan Zouairabani, Esq. American International Plaza 250 Munoz Rivera Ave., Ste. 800 San Juan, PR 00918-1813 Tel: (787) 764-8181 Fax: (787) 753-8944 E-mail: luis.marini@oneillborges.com nayuan.zouairabani@oneillborges.com Attorneys for the Debtor: CHARLES A CUPRILL, PSC LAW OFFICE Charles A. Cuprill, Esq. 356 Calle Fortaleza Second Floor San Juan, Puerto Rico 00901 Tel: (787) 977-0515 Fax: (787) 977-0518 E-mail: ccuprill@cuprill.com About Alonso & Carus Alonso & Carus Iron Works, Inc., is the largest integrated structural steel and tank builder in Puerto Rico. The Company provides a full range of design, engineering, construction and erection services through an innovative, responsive and customer focused organization. The Company has participated in the construction of hundreds of demanding and challenging projects, including many landmarks in Puerto Rico and the Caribbean that showcase the superior capabilities of steel. Alonso & Carus Iron Works sought Chapter 11 protection (Bankr. D.P.R. Case No. 15-02250) in Old San Juan, Puerto Rico, on March 27, 2015. The case is assigned to Judge Enrique S. Lamoutte Inclan. The Catano, Puerto Rico-based debtor has filed schedules of assets and liabilities, disclosing $23,028,113 in total assets and $14,919,146 in total debt. ALONSO & CARUS: Wins Approval of Consensual Plan ------------------------------------------------ Alonso & Carus Iron Works, Inc., in March received confirmation of its proposed reorganization plan. The Debtor reached an agreement with the Official Committee of Unsecured Creditors on the terms of a proposed reorganization plan that's mutually acceptable. No objections to confirmation of the Plan were filed. The Plan proposes to pay unsecured creditors in full, without interest, in 72 months and let current management and owners retain control of the company. The Plan provides: * Holders of allowed general unsecured claims greater than or equal to $2,000, with claims estimated to total $3.21 million, will receive promissory notes providing for payment in full of their claims without interest in the form of equal installments over 72 months from the Effective Date. Effective on Dec. 15, 2015, and on the 15th day of each month thereafter until March 15, 2016, the Debtor will deposit into an escrow account with Debtor's counsel, the sum of $30,900, which shall be used exclusively to fund a distribution to Holders of allowed general unsecured claims. Aside from Department of the Treasury of Puerto Rico's proof of claim number 44, which is pending review by Debtor, and any Claims filed after the Bar Dates, Debtor shall not object to any other General Unsecured Claim and all such other Claims shall be allowed as filed or as otherwise listed in Debtor's Schedule F. * Holders of general unsecured claims that are less than $2,000 estimated to aggregate $45,600 will be paid in full on the Effective Date. A copy of the First Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/Alonso_Carus_196_1st_Am_DS.pdf About Alonso & Carus Alonso & Carus Iron Works, Inc., is the largest integrated structural steel and tank builder in Puerto Rico. The Company provides a full range of design, engineering, construction and erection services through an innovative, responsive and customer focused organization. The Company has participated in the construction of hundreds of demanding and challenging projects, including many landmarks in Puerto Rico and the Caribbean that showcase the superior capabilities of steel. Alonso & Carus Iron Works sought Chapter 11 protection (Bankr. D.P.R. Case No. 15-02250) in Old San Juan, Puerto Rico, on March 27, 2015. The case is assigned to Judge Enrique S. Lamoutte Inclan. The Catano, Puerto Rico-based debtor has filed schedules of assets and liabilities, disclosing $23,028,113 in total assets and $14,919,146 in total debt. The Debtor on the Petition Date filed applications to employ Charles A Curpill, PSC Law office, as counsel; and CPA Luis R. Carrasquillo & Co, PSC as financial consultant. The Official Committee of Unsecured Creditors in the Chapter 11 case retained Javier Vilarino, Esq., at Vilarino & Associates LLC, serves as Puerto Rico counsel; and Jeffrey D. Prol, Esq., at Lowenstein Sandler LLP, as general bankruptcy counsel; and Glassratner Advisory & Capital Group, LLC, as financial advisors. CANEJAS S.E.: Case Summary & 14 Unsecured Creditors --------------------------------------------------- Debtor: Canejas, S.E. Metro Office Park Calle 1, #7, Suite 204 Guaynabo, PR 00968 Case No.: 16-02644 Type of Business: Single Asset Real Estate Chapter 11 Petition Date: April 4, 2016 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Judge: Hon. Mildred Caban Flores Debtor's Counsel: Carmen D Conde Torres, Esq. C. CONDE & ASSOC. 254 San Jose Street, 5th Floor San Juan, PR 00901-1523 Tel: 787-729-2900 Fax: 787-729-2203 E-mail: notices@condelaw.com Total Assets: $11.1 million Total Debts: $8.55 million The petition was signed by Diego Chevere, socio gestor. List of Debtor's 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Acodese Rent Deposit $4,642 CRIM Property Tax $37,821 Electromatic Parking Access $262 System ITL International, Inc. Advance Rent $42,646 Luis Bonilla Cepeda Lawsuit $0 Manual Garcia Valles Lawsuit $0 MOP Owners Assoc. Mop Dues $2,602 Nosce Te Ipsum Shared Services $5,962 OneSource Facility Serv Janitorial $12,494 Services PRASA Water Bill $2,725 PREPA Electricity Bill $31,075 Sorenson Communications, Inc. Rent Deposit $5,256 Specialist Pest Control Pest Control $115 Thyssenkrupp Elevator Elevator $5,607 Maintenance PACIFIC SUNWEAR: Said to Be Preparing to File for Bankruptcy ------------------------------------------------------------ Pacific Sunwear of California, Inc., is preparing to file for bankruptcy, Bloomberg News' Lauren Coleman-Lochner and Jodi Xu Klein have reported, citing people with knowledge of the matter. One source said the Chapter 11 filing could come as soon as next week, according to Bloomberg. That source asked not to be identified because the process isn't public. Bloomberg also said the situation remains fluid, and the timing could change, according to those sources. Bloomberg noted that PacSun did not immediately respond to a request for comment. The report added that an affiliate of Golden Gate Capital has provided PacSun with a $60 million senior secured term loan, giving it sway in a potential bankruptcy. As reported by the Troubled Company Reporter on March 8, 2016, Lilian Rizzo, writing for Dow Jones' Daily Bankruptcy Review, said PacSun has hired financial advisers ahead of maturing debt load as the company continues to struggle amid a downturn in the teen retail industry. PacSun's fiscal year 2015 ended on January 30, 2016. It has yet to file its Annual Report on Form 10-K for the period. In its most recent quarterly report for the fiscal quarter ended Oct. 31, 2015, PacSun said its liquidity has been adversely impacted by negative operating results and the Company cannot ensure it will have sufficient liquidity going forward if certain negative trends continue, or if it is not able to refinance the Term Loan in light of the upcoming maturity of the Wells Fargo credit facility as well as a term loan. As of Oct. 31, 2015, the Company had cash and cash equivalents of $11 million and borrowings of $35 million under its $100 million revolving credit facility with Wells Fargo Bank, N.A., which is scheduled to mature on Dec. 7, 2016. During the fourth quarter of fiscal 2015, the Company expects to borrow up to an additional $35 million under the Wells Credit Facility primarily to fund inventory purchases for the peak holiday selling season. The Company said in the Quarterly Report that it anticipates that a substantial portion of these borrowings will be repaid prior to the end of the fourth quarter. The Company also has a $60 million term loan with an affiliate of Golden Gate Capital, which is scheduled to mature on December 7, 2016. Upon maturity of the Term Loan, $27 million of payable-in-kind ("PIK") interest also will become due and payable. "In light of the upcoming maturity of the Term Loan and the Wells Credit Facility, the Company is considering various alternatives regarding the Term Loan, including discussions with Golden Gate. As part of such evaluation, the Company is considering the sales and leasebacks of its corporate headquarters in Anaheim, California and the distribution center in Olathe, Kansas, as a source of potential additional liquidity. There can be no assurance that any contemplated alternatives can be achieved," the Company said. At October 31, 2015, PacSun had total assets of $298,853,000; against total current liabilities of $153,807,000; total long-term liabilities of $151,249,000 and total shareholders' deficit of $6,203,000. About PacSun Based in Anaheim, California, Pacific Sunwear of California, Inc. is a specialty retailer rooted in the action sports, fashion and music influences of the California lifestyle. It operates a nationwide, primarily mall-based chain of retail stores under the names "Pacific Sunwear" and "PacSun." In addition, the Company operates an e-commerce website at www.pacsun.com which sells PacSun merchandise online, provides content and community for its target customers and provides information about the Company. As of October 31, 2015, the Company leased and operated 611 stores in each of the 50 states and Puerto Rico. SPORTS AUTHORITY: Brown Rudnick Representing Term Loan Lenders -------------------------------------------------------------- To comply with the requirements imposed by Rule 2019 of the Federal Rules of Bankruptcy Procedure, Brown Rudnick LLP disclosed that it serves as lead counsel and Morris, Nichols, Arsht & Tunnell LLP disclosed that it serves as local counsel to the Ad Hoc Committee of Prepetition Term Loan Lenders, which consists of lenders that have made loans under that certain Amended and Restated Credit Agreement, dated as of November 16, 2010. Brown Rudnick relates that the lenders hired the firm in October 2015 in connection with potential restructuring discussions involving the Debtors. Subsequently, in December 2015, Wilmington Savings Fund Society, FSB, in its capacity as successor Administrative Agent under the Prepetition Term Loan Credit Agreement, engaged Brown Rudnick to represent the Successor Agent in connection with potential restructuring discussions involving the Debtors. On or about February 26, 2016, the Ad Hoc Committee and the Successor Agent engaged Morris Nichols as their Delaware co-counsel in connection with the Debtors' anticipated filing for relief under Chapter 11. The Brown Rudnick lawyers are: Robert J. Stark, Esq. Bennett S. Silverberg, Esq. BROWN RUDNICK LLP Seven Times Square New York, NY 10036 Tel: (212) 209-4800 The lenders and the amounts they are owed are: Name & Address Loan Amount -------------- ----------- Columbia Management Investment Advisers, LLC 100 N. Sepulveda Blvd., Suite 650 El Segundo, California 90245 $59,952,813.89 CVC Credit Partners, LLC 712 Fifth Avenue, 42nd Floor New York, New York 10019 $18,744,697.70 FMR LLC 245 Summer Street Boston, Massachusetts 02210 $20,235,844.14 Fort Warren Capital Management, LP 175 Federal Street, Suite 900 Boston, Massachusetts 02110 $16,859,681.36 GoldenTree Asset Management, LP 300 Park Ave. New York, NY 10022 $28,526,468.67 GSO / Blackstone Debt Funds Management LLC 345 Park Ave, 29th Floor New York, NY 10154 $20,485,720.01 GSO Capital Partners LP 345 Park Ave, 31st Floor New York, NY 10154 $36,778,966.85 Wellington Management Company LLP 280 Congress Street Boston, MA 02210 $27,325,392.24 About Sports Authority Holdings Sports Authority Holdings, et al., are sporting goods retailers with roots dating back to 1928. The Debtors currently operate 464 stores and five distribution centers across 40 U.S. states and Puerto Rico. The Debtors offer a broad selection of goods from a wide array of household and specialty brands, including Adidas, Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and Fitness, Nike, The North Face, and Under Armour, in addition to their own private label brands. The Debtors employ 13,000 people. Sports Authority and six of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to 16-10533) on March 2, 2016. The petitions were signed by Michael E. Foss as chairman & chief executive officer. The Debtors have engaged Gibson, Dunn & Crutcher LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel, Rothschild Inc. as investment banker, FTI Consulting, Inc., as financial advisor and Kurtzman Carson Consultants LLC as notice, claims, solicitation, balloting and tabulation agent. Lawyers at Pachulski Stang Ziehl & Jones LLP represent the Official Committee of Unsecured Creditors. SPORTS AUTHORITY: April 22 Auction of Assets -------------------------------------------- Sports Authority Holdings, Inc., et al., informed the U.S. Bankruptcy Court that the correct proposed date for the auction of substantially all of their assets is April 22, 2016, instead of April 24, 2016, as inadvertently listed in the Sale Procedures Motion, and that the proposed Sale Timeline is accurate in all respects as provided in the Motion. The Debtors, in consultation with their advisors, determined that it is in the best interest of their estates to immediately prepare for closure up to 200 stores and two of their their distribution centers. The Sale Guidelines provide, among other things, that: (a) all sales of Store Assets would be deemed free and clear of all encumbrances; (b) ,erchandise could be sold with the benefit of various marketing techniques and price mark-downs to promote efficient liquidation; and (c) certain Store Assets that cannot be promptly liquidated may be abandoned if and when the Debtors determine, in their business judgment, that retaining, storing, or removing those assets would result in unnecessary expense with little or no benefit to the estates. Sports Authority Holdings, Inc. and its affiliated debtors are represented by: Michael R. Nestor, Esq. Kenneth J. Enos, Esq. Andrew L. Magaziner, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, Delaware 19801 Telephone: (302) 571-6600 Facsimile: (302) 571-1253 Email: mnestor@ycst.com kenos@ycst.com amagaziner@ycst.com -- and -- Robert A. Klyman, Esq. Matthew J. Williams, Esq. Jeremy L. Graves, Esq. Sabina Jacobs, Esq. GIBSON, DUNN & CRUTCHER LLP 333 South Grand Avenue Los Angeles, CA 90071-1512 Telephone: (213) 229-7000 Facsimile: (213) 229-7520 Email: rklyman@gibsondunn.com mjwilliams@gibsondunn.com jgraves@gibsondunn.com sjacobs@gibsondunn.com About Sports Authority Holdings Sports Authority Holdings, et al., are sporting goods retailers with roots dating back to 1928. The Debtors currently operate 464 stores and five distribution centers across 40 U.S. states and Puerto Rico. The Debtors offer a broad selection of goods from a wide array of household and specialty brands, including Adidas, Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and Fitness, Nike, The North Face, and Under Armour, in addition to their own private label brands. The Debtors employ 13,000 people. Sports Authority and six of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to 16-10533) on March 2, 2016. The petitions were signed by Michael E. Foss as chairman & chief executive officer. The Debtors have engaged Gibson, Dunn & Crutcher LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel, Rothschild Inc. as investment banker, FTI Consulting, Inc., as financial advisor and Kurtzman Carson Consultants LLC as notice, claims, solicitation, balloting and tabulation agent. Andrew Vara, Acting U.S. trustee for Region 3, appointed seven creditors of Sports Authority Holdings Inc. to serve on the official committee of unsecured creditors. *********** 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. 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