/raid1/www/Hosts/bankrupt/TCRLA_Public/160422.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
Friday, April 22, 2016, Vol. 17, No. 79
Headlines
A R G E N T I N A
ARGENTINA: Raises $16.5BB in Bond Market to Pay Holdout Creditors
B R A Z I L
BRAZIL: March Current Account Deficit Smallest in Over Six Years
ENERGEST SA: Moody's Assigns Ba2 Rating to BRL90MM Debentures
SETE BRASIL: To File for Bankruptcy Protection
* Moody's Says Brazil's Steel Industry to Remain Under Pressure
C A Y M A N I S L A N D S
CH INDIGO: Creditors' Proofs of Debt Due May 11
CH INDIGO II: Creditors' Proofs of Debt Due May 11
CH INDIGO OFFSHORE: Creditors' Proofs of Debt Due May 11
CH INDIGO ONSHORE: Creditors' Proofs of Debt Due May 11
GLG EMERGING II: Creditors' Proofs of Debt Due May 10
GLG EMERGING MARKETS: Creditors' Proofs of Debt Due May 10
GLG EMERGING MASTER: Creditors' Proofs of Debt Due May 10
GLG GEMINI: Creditors' Proofs of Debt Due May 10
GLG GLOBAL: Creditors' Proofs of Debt Due May 10
GLG GLOBAL MASTER: Creditors' Proofs of Debt Due May 10
GLG GLOBAL RATES: Creditors' Proofs of Debt Due May 10
GLG GLOBAL RATES MASTER: Creditors' Proofs of Debt Due May 10
GLG MMI: Creditors' Proofs of Debt Due May 10
KBC CONVERTIBLES: Creditors' Proofs of Debt Due May 10
RMF MULTI-MANAGER: Creditors' Proofs of Debt Due May 10
SAKURA SECURITISATION: Creditors' Proofs of Debt Due May 11
J A M A I C A
JAMAICA: Increase in TAJ's Budgetary Allocation
M E X I C O
MEXICO: Gov't. Approves Gasoline, Diesel Imports
P U E R T O R I C O
FAST STEEL: Case Summary & 20 Largest Unsecured Creditors
SPORTS AUTHORITY: Landlords Press for March Rent Payment
U R U G U A Y
ACI AIRPORT: Fitch Affirms 'BB+' Rating on USD200MM Sr. Notes
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Raises $16.5BB in Bond Market to Pay Holdout Creditors
-----------------------------------------------------------------
EFE News reports that Argentina sold US$16.5 billion worth of
sovereign debt at yields averaging 7.14 percent, US$9.3 billion of
which will be used to pay a group of holdout creditors stemming
from a massive 2001 default.
President Mauricio Macri said of the bond placement, the country's
first in nearly 15 years, that its success had left him and his
economic team "shocked" and "amazed," according to EFE News.
Argentina received offers totaling US$68.6 billion but only opted
to accept US$16.5 billion due in part to hopes that interest rates
will come down in future bond sales, Finance Minister Alfonso
Prat-Gay said, the report notes.
The country raised US$6.5 billion through the sale of 10-year
bonds, which offered a yield of 7.5 percent and attracted the most
interest from investors, but most surprising was the interest
Argentina attracted with its 30-year bonds, US$2.75 billion of
which were sold at a yield of 7.62 percent, the report relays.
The report discloses that Prat-Gay said the success of the 30-year
bond placement was a clear vote of confidence from the markets.
Around half of the US$9.3 billion will be paid to four U.S. hedge
funds, including Elliott Management Corp. founder and CEO Paul
Singer's NML Capital Ltd., that reached a settlement in late
February with Macri's business-friendly administration, the report
relays.
Those large holdout creditors had successfully sued Argentina in a
New York federal court after rejecting debt restructurings in 2005
and 2010, in which 93 percent of bondholders accepted steep
haircuts, the report relays.
Macri's predecessor, leftist Cristina Fernandez, who stepped down
last December, had refused to settle with the hedge funds and
slammed them as "vultures," the report notes.
The origins of Argentina's late 2001 default, which was then the
largest in history and occurred amid a financial meltdown and
economic depression, go back to Argentina's 1976-1983 military
regime, which presided over a 465 percent expansion in public
indebtedness, the report adds.
* * *
On Aug. 1, 2014, the Troubled Company Reporter-Latin America
reported that Argentina defaulted on some of its debt late July 30
after expiration of a 30-day grace period on a US$539 million
interest payment. Earlier that day, talks with a court-appointed
mediator ended without resolving a standoff between the country
and a group of hedge funds seeking full payment on bonds that the
country had defaulted on in 2001. A U.S. judge had ruled that the
interest payment couldn't be made unless the hedge funds led by
Elliott Management Corp., got the US$1.5 billion they claimed.
The country hasn't been able to access international credit
markets since its US$95 billion default 13 years ago.
On April 22, 2015, Moody's Investors Service expanded the portion
of Argentina's debt that is rated (P)Caa2. The (P)Caa2 rating
reflects the higher risk of default for both Argentina's
restructured foreign legislation debt (as before) and,
additionally now, its restructured local legislation foreign
currency obligations, as compared with the risk of default on
other debt instruments issued by Argentina. Argentina's local
currency debt and its non-restructured foreign currency debt are
rated Caa1. The debt that remains in default since Argentina's
2001 default is rated Ca.
On Nov. 27, 2015, Moody's Investors Service has changed the
outlook on Argentina's Caa1 issuer rating to positive from stable.
The outlook on Argentina's (P)Caa2 foreign legislation and
restructured local legislation foreign currency obligations is
also changed to positive from stable. The outlook change is based
on Moody's view that the accession of president-elect Mauricio
Macri of the Cambiemos ("Let's Change") coalition will raise the
probability of credit positive policies being implemented,
including arriving at a resolution with holdout creditors, one of
Argentina's key credit constraints.
Mr. Macri has been working to repair relations with the
international financial world, which has largely shunned Argentina
for more than a decade.
In line with this, Argentina had requested that the injunction be
lifted after it made an offer to pay $6.5 billion to settle
lawsuits from other holdout bondholders on Feb. 5. The lower
house of Argentina's legislature has approved the holdout debt
deals, and the bill was being weighed by the Senate, which was
expected to vote by March 30.
However, there is another group of bondholders not included in the
$4.65 billion deal between Argentina and the four hedge funds who
have argued that they will get far worse terms if they agree to
Argentina's $6.5 billion proposal. NML Capital appealed Judge
Griesa's ruling, and the matter was held up because the appeals
court stayed the ruling.
On March 30, after more than 12 hours of debate in the Senate,
Argentina's Congress passed a bill that will allow the government
to repay holders of debt that the South American country defaulted
on in 2001, including a group of litigating hedge funds that won
judgments in a New York court. The bill passed by a vote of 54-16.
On March 24, 2016, Fitch Ratings has upgraded Argentina's Long-
term local-currency Issuer Default Rating (LT LC IDR) to 'B' from
'CCC', with a Stable Outlook. Fitch has affirmed Argentina's Long-
term foreign-currency (FC) IDR at 'RD' and the short-term FC IDR
at 'RD'. In addition, Fitch has upgraded the Country Ceiling to
'B' from 'CCC'.
On April 20, 2016, Standard & Poor's Ratings Services assigned its
'B-' issue rating on Argentina's planned global bond issuance of
around US$15 billion.
===========
B R A Z I L
===========
BRAZIL: March Current Account Deficit Smallest in Over Six Years
----------------------------------------------------------------
Mario Sergio Lima at Bloomberg News reports that Brazil's current
account gap in March was the narrowest since August 2009 as a
prolonged recession curbed imports.
The deficit in the current account, the broadest measure of trade
in goods and services, narrowed last month to $855 million from
$1.9 billion in February, the central bank said, according to
Mario Sergio Lima. Economists surveyed by Bloomberg forecast a
gap of $1.2 billion. Foreign investment in Brazil during the month
fell to $5.6 billion from $5.9 billion.
Brazilian imports remained at six-year lows in March as the worst
political crisis in decades weigh on consumer and business
confidence, sinking Latin America's largest economy in its worst
recession in over a century, Mario Sergio Lima relays.
Impeachment proceedings against President Dilma Rousseff, approved
by the lower house of Congress, have increased political
uncertainty and delayed an economic recovery, Bloomberg News
discloses.
A recent appreciation of the Brazilian currency hasn't had a
meaningful impact on foreign trade as exports rose in March for a
second consecutive month, Bloomberg News relays. The real has
gained the most this year among 16 major currencies tracked by
Bloomberg on prospects that the more market-friendly Vice
President Michel Temer will take over if Rousseff is ousted,
Bloomberg News notes.
This year's gains were still insufficient to make up for a 33
percent devaluation of the real in 2015, which made Brazilian
assets more appealing to foreign investors, according to Tulio
Maciel, head of the central bank's economic research department,
Bloomberg News says.
"Foreign investments remained at a high level despite
uncertainties," Maciel told reporters in Brasilia, adding that the
central bank's $60 billion forecast for the year could be seen as
conservative, Bloomberg News adds.
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.
ENERGEST SA: Moody's Assigns Ba2 Rating to BRL90MM Debentures
-------------------------------------------------------------
Moody's America Latina Ltda assigned a Ba2 rating on the global
scale and Aa2.br on the national scale to the senior unsecured
amortizing debentures of BRL 90 million of to be issued by
Energest S.A. in the local market. At the same time, Moody's
affirmed Energest's Ba2/Aa2.br issuer ratings. The outlook is
negative for all ratings.
RATINGS RATIONALE
Energest's Ba2/Aa2.br issuer ratings reflect the company's strong
credit metrics and expertise in operating hydro plants and the
implicit support of its shareholder EDP Energias do Brasil S.A.
(EDB; Ba3/A2.br negative).
The debentures issuance will consist of two series with maturities
of two and four years, respectively. Final amounts in each series
will result from a book building process. Energest will use the
proceeds of the debentures to strengthen its cash position to help
meet its short-term cash needs consisting of short-term debt and
payment of dividends.
The ratings assigned to the debentures are based on preliminary
information received by Moody's as of the rating assignment date.
Moody's will review the final documentation as soon as it is made
available by the company. Should the issuance terms and/or final
documentation deviate from the indicative terms submitted for
Moody's review, then Moody's will assess the impact that these
differences may have on the ratings, and act accordingly.
Energest's ratings are constrained by Brazil's Ba2 bond rating as
well as by the high concentration of sales in one single client
EDP Comercializacao e Serviáos de Energia Ltda (not rated) that
represents around 70% of the company's energy supply contracts.
Energest has a history of high dividend payments and, more
recently, executing capital splits.
WHAT COULD CHANGE THE RATING UP/DOWN
In light of the negative outlook, Moody's does not expect upward
rating pressure in the short to medium term. Moody's would
consider revising Energest's outlook to stable if its parent
company EDB improves its liquidity position and at the same time
achieves consolidated credit metrics commensurate with the
implicit consolidated Ba2/Aa2.br ratings. The stabilization of
Brazil's rating outlook could lead to a stabilization of
Energest's outlook.
Moody's could downgrade Energest's ratings and the debentures if
the company executes further capital splits or pay higher
dividends than expected so that there is a pronounced
deterioration of its credit metrics. Quantitatively, there would
be pressure for a downgrade rating action if retained cash flow
over debt becomes negative and interest coverage falls below 3.5X
on a consistent basis. A downgrade of Brazil's bond rating could
also prompt a downgrade.
Energest, a wholly owned subsidiary of EDB, is a hydro generation
company with an installed capacity of 198 MW (138.5 MW of physical
energy) consisting of one single hydro power plant located in the
state of Esp°rito Santo. In 2015, Energest posted consolidated
net sales of BRL290 million (USD 87 million), EBITDA of BRL 137
million (USD 41 million), which includes BRL 33 million of equity
income and BRL 3 million of cash interest income, and net profit
of BRL 82 million (USD 21 million).
SETE BRASIL: To File for Bankruptcy Protection
----------------------------------------------
Reuters reports that Brazil's rig leaser Sete Brasil Participacoes
SA has decided to file for bankruptcy protection, the company
said.
According to a source with direct knowledge of the matter, state-
controlled pension fund Petros reversed its earlier position
against the bankruptcy filing at a shareholder's meeting, Reuters
relays.
The decision allows Sete Brasil to garner the 85 percent threshold
for approval to file for creditor protection, said the source, who
requested anonymity because the matter is private, the report
notes.
* Moody's Says Brazil's Steel Industry to Remain Under Pressure
---------------------------------------------------------------
Brazil's steel industry will continue to struggle through the
year, as the nation's poor growth outlook hinders the automotive,
construction and capital goods industries, says Moody's Investors
Service.
Demand for steel has fallen in Brazil as credit conditions have
tightened with rising interest rates and lower disposable incomes.
The engineering and homebuilding sectors, which together account
for 40% of Brazil's steel consumption, are also facing serious
strains.
Compounding the issues in the domestic market, the steelmakers
also face a challenging international environment, according to
the report "Weak Operating Environment Decreases Credit Quality of
All Three Big Steelmakers." Moody's expects overcapacity in the
global steel market to persist for several more years, as Chinese
steel production remains elevated.
"The short- to medium-term fundamentals for Brazil's steel
industry have deteriorated sharply amid the industry's global
challenges," said Barbara Mattos a Vice President and Senior
Credit Officer.
Moody's has downgraded the three big Brazilian steelmakers --
Usinas Siderurgicas de Minas Gerais (Usiminas, Ca stable),
Companhia Siderurgica Nacional S.A. (CSN, Caa1 negative) and
Gerdau S.A. (Ba3 negative) -- by several notches each, since the
start of the year.
While these producers are working on a range of initiatives to
face the challenging operating environment, including cost-saving,
reduced capital spending and asset sales, Moody's ratings reflect
the uncertainty around their ability to execute their plans
quickly and at favorable terms. A persistent market downturn
without any prospects of recovery would worsen their credit
quality.
==========================
C A Y M A N I S L A N D S
==========================
CH INDIGO: Creditors' Proofs of Debt Due May 11
-----------------------------------------------
The creditors of CH Indigo Investments, Ltd. are required to file
their proofs of debt by May 11, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 18, 2016.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
c/o Susan Craig
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Telephone: (345) 943-3100
CH INDIGO II: Creditors' Proofs of Debt Due May 11
--------------------------------------------------
The creditors of CH Indigo II Ltd are required to file their
proofs of debt by May 11, 2016, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on March 18, 2016.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
c/o Susan Craig
90 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Telephone: 914 3191
CH INDIGO OFFSHORE: Creditors' Proofs of Debt Due May 11
--------------------------------------------------------
The creditors of CH Indigo Offshore Investments, Ltd. are required
to file their proofs of debt by May 11, 2016, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on March 18, 2016.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
c/o Susan Craig
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Telephone: (345) 943-3100
CH INDIGO ONSHORE: Creditors' Proofs of Debt Due May 11
-------------------------------------------------------
The creditors of CH Indigo Onshore Investments, Ltd. are required
to file their proofs of debt by May 11, 2016, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on March 18, 2016.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
c/o Susan Craig
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Telephone: (345) 943-3100
GLG EMERGING II: Creditors' Proofs of Debt Due May 10
-----------------------------------------------------
The creditors of GLG Emerging Markets Income Portfolio II Ltd. are
required to file their proofs of debt by May 10, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG EMERGING MARKETS: Creditors' Proofs of Debt Due May 10
----------------------------------------------------------
The creditors of GLG Emerging Markets Income Portfolio Ltd. are
required to file their proofs of debt by May 10, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG EMERGING MASTER: Creditors' Proofs of Debt Due May 10
---------------------------------------------------------
The creditors of GLG Emerging Markets Master Fund Ltd. are
required to file their proofs of debt by May 10, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG GEMINI: Creditors' Proofs of Debt Due May 10
------------------------------------------------
The creditors of GLG Gemini Emerging Currency and Fixed Income
Fund are required to file their proofs of debt by May 10, 2016, to
be included in the company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG GLOBAL: Creditors' Proofs of Debt Due May 10
------------------------------------------------
The creditors of GLG Global Energy Offshore Fund Ltd. are required
to file their proofs of debt by May 10, 2016, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG GLOBAL MASTER: Creditors' Proofs of Debt Due May 10
-------------------------------------------------------
The creditors of GLG Global Energy Master Fund Ltd. are required
to file their proofs of debt by May 10, 2016, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG GLOBAL RATES: Creditors' Proofs of Debt Due May 10
------------------------------------------------------
The creditors of GLG Global Rates Fund are required to file their
proofs of debt by May 10, 2016, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG GLOBAL RATES MASTER: Creditors' Proofs of Debt Due May 10
-------------------------------------------------------------
The creditors of GLG Global Rates Master Fund are required to file
their proofs of debt by May 10, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG MMI: Creditors' Proofs of Debt Due May 10
---------------------------------------------
The creditors of GLG MMI Diversified (Special Assets) Fund are
required to file their proofs of debt by May 10, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
KBC CONVERTIBLES: Creditors' Proofs of Debt Due May 10
------------------------------------------------------
The creditors of KBC Convertibles MAC 28 Ltd. are required to file
their proofs of debt by May 10, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
RMF MULTI-MANAGER: Creditors' Proofs of Debt Due May 10
-------------------------------------------------------
The creditors of RMF Multi-Manager Fund Ltd. are required to file
their proofs of debt by May 10, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 30, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
SAKURA SECURITISATION: Creditors' Proofs of Debt Due May 11
-----------------------------------------------------------
The creditors of Sakura Securitisation NQ are required to file
their proofs of debt by May 11, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 14, 2016.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
c/o Susan Craig
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Telephone: (345) 943-3100
=============
J A M A I C A
=============
JAMAICA: Increase in TAJ's Budgetary Allocation
-----------------------------------------------
RJR News reports that with the Government seeking to rake in more
tax revenue this fiscal year, there has been a big increase in the
budgetary allocation to its chief collection agency.
Tax Administration Jamaica's (TAJ) budget has been increased by
J$1.9 billion, according to RJR News.
According to the 2016/2017 Estimates of Expenditure it will
receive $7.7 billion, the report notes.
The government is expecting tax revenues to rise by more than 8
per cent this fiscal year as it targets collecting more in General
Consumption Tax and the Special Consumption Tax, the report
relays.
Total tax receipts projected are $34.5 billion more than was
collected last year, the report adds.
* * *
As reported in Troubled Company Reporter-Latin America on July 29,
2015, Standard & Poor's Ratings Services assigned its 'B' issue
rating on Jamaica's up to US$2 billion in bonds issued in two
tranches. The first tranche is for up to US$1,350 million due in
2028. The second tranche is for up to US$650 million due in 2045.
The government will use the proceeds to purchase debt that Jamaica
owes to Venezuela as well as to finance the government's 2015/2016
budget.
===========
M E X I C O
===========
MEXICO: Gov't. Approves Gasoline, Diesel Imports
------------------------------------------------
EFE News reports that a total of 11 permits to import gasoline and
21 permits to import diesel were granted to 22 domestic and
foreign companies in the first 15 days of April, the Mexican
Energy Secretariat said.
Thirty-two different companies submitted 62 import license
applications in response to the government's decision to move up
the date for the free importation of gasoline and diesel to April
1, according to EFE News.
======================
P U E R T O R I C O
======================
FAST STEEL: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Fast Steel Corporation
GPO Box 360827
San Juan, PR 00936
Case No.: 16-03092
Chapter 11 Petition Date: April 19, 2016
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Emily Darice Davila Rivera, Esq.
EMILY D DAVILA LAW FIRM
420 Ponce Leon Midtown Suite 311
San Juan, PR 00918
Tel: 787 753-2368
Fax: 787 759-9620
E-mail: davilalawe@prtc.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Victor Garcia Perez, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/prb16-03092.pdf
SPORTS AUTHORITY: Landlords Press for March Rent Payment
--------------------------------------------------------
Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review,
reported that dozens of Sports Authority Holdings Inc. landlords
are up in arms about the timing of the retailer's bankruptcy case,
which they say was designed to force them to finance some $20
million of the turnaround effort.
According to the report, citing lawyers for the landlords, that's
an estimate of the rent Sports Authority could avoid paying, even
while running going-out-of-business sales or continuing operations
at its stores. The company filed for chapter 11 protection March
2, at 33 minutes after midnight at its western-most locations,
timing that aroused suspicion among the commercial landlords that
make up a major part of the creditor body, the report pointed out.
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. Lawyers at Pachulski
Stang Ziehl & Jones LLP represent the Official Committee of
Unsecured Creditors.
=============
U R U G U A Y
=============
ACI AIRPORT: Fitch Affirms 'BB+' Rating on USD200MM Sr. Notes
-------------------------------------------------------------
Fitch Ratings has affirmed the long-term rating assigned to ACI
Airport SudAmerica, S.A.'s (ACI) USD200 million senior secured
notes at 'BB+'. The Rating Outlook remains Stable.
The affirmation reflects Carrasco International Airport's (MVD)
strategic but modest traffic base and its strong O&D share of
passenger traffic, coupled with a midrange debt structure. Credit
metrics are strong for the rating category according to applicable
criteria, with the rating constrained to sub-investment grade
levels over the medium term due to weak debt service coverage
ratios (DSCRs) up to 2019 and, to a lesser extent, to termination
risk up to 2018. Debt repayment is not dependent upon traffic
growth, withstanding a negative 2.06% CAGR over debt tenor.
Compared to rated peers (Lima Airport Partners S.R.L.'BBB+'/Stable
Outlook and Aeropuerto Internacional de Tocumen 'BBB'/Negative
Outlook), MVD has a significantly lower enplanement base and
weaker near-term financial coverage ratios.
KEY RATING DRIVERS
Fitch's ratings are based on these factors, among others:
Important Small-Scale International Gateway with Little Reliance
on Growth [Revenue Risk - Volume: Midrange]: Located in Uruguay's
capital city, MVD is the main international gateway to Uruguay
with approximately 85% of the country's flights. MVD is almost
exclusively an O&D airport with only 2% of passengers transferring
to other destinations. CAGR for 2006-2014 was 5.5%, despite the
bankruptcy of the country's flagship carrier, Pluna, and the
resulting loss of capacity and status as a regional hub. Growth
for 2015 was only 0.3%, as a result of traffic reduction from
Brazil and Argentina and FX devaluation in Uruguay. Despite
expected 2016-2032 CAGR of 2.56%, the project does not depend on
growth to meet its obligations.
No Significant Investments Needed [Infrastructure Development &
Renewal: Stronger]: The airport's current capacity of 4.5 million
passengers/year is well below management's forecast of 2.5
million-3 million passengers at the end of the concession term.
Under the amended concession agreement which extended the term
through 2033, the new taxi-way construction (USD10 million) was
extended until the end of the concession, with no other
significant mandatory investments needed in the remaining term.
Inflation and Exchange Adjusted Tariffs [Price Risk: Midrange]:
Revenues are 95% denominated in USD with Aeronautical revenues
being adjusted by a global index that considers foreign exchange
and inflation rates. Tariffs do not decrease under the adjustment
scheme; however, increases have occasionally been subject to
political risk. No increase in tariffs is assumed over the life
of the concession.
Subordinated Fixed-Rate Amortizing Issuance [Debt Structure:
Midrange]: A 'springing guarantee' covenant requires Puerta del
Sur S.A. (PDS, or the opco) to issue a guarantee of the rated debt
following the payment in full of opco debt in 2021. The
amortization schedule is back-loaded. Cash flow available for
debt service (CFAD) for the rated debt is structurally
subordinated to the notes issued at the opco level and subject to
dividend distribution tests through maturity of the opco notes in
October 2021. Lock-out of dividends is considered highly
unlikely, as a trigger breach prior to 2021 would require severe
stress in traffic declines in excess of 40%. Should a lock-out
occur, the issuance also benefits from deferrable debt service for
up to 12 months.
Limited Exposure to Termination Events: Breach of contract
termination events are standard and manageable by the
concessionaire; however, a unilateral termination for public
interest by the government in the short term (prior to 2018) would
leave the transaction exposed to a loss of less than 10% given the
debt level and subordinate nature of the issuance. Fitch
considers the risk unlikely given (i) the recent extension of the
concession and general public good-will for the project; (ii) the
increased concession fee paid by the concessionaire to the
government; (iii) the airport's operating status with no material
infrastructure construction needs; and (iv) the stability of
Uruguay as an investment grade country.
Moderate Financial Metrics: DSCRs average 1.76x and 1.50x for the
base and rating cases, respectively. Despite strong average
coverage ratios for the issuance, coverage in the early years of
the transaction life is weaker. Respective minimum DSCRs for the
base and rating cases are 1.25x and 1.13x, with the minimums
occurring in the near term while the senior debt is outstanding.
Consolidated leverage is low compared to 'BB+' peers, at 5.48x Net
Debt / EBITDA in 2015 and expected 3.15x in 2021. No dependence
on traffic growth to support debt requirements is needed, as
breakeven annual traffic growth is negative 2.06%, considering
ACI's debt service reserve account (DSRA).
Peer Group: The airport's nearest peers include Lima Airport
Partners S.R.L. ('BBB+'/Stable Outlook), which serves as an
international gateway airport with significant O&D (92%) and
relatively low leverage (maximum net debt-to-CFADS ratio of 2.89x
and base case DSCR average of 3.40x), and Aeropuerto Internacional
de Tocumen ('BBB'/Negative Outlook), which serves as the main
gateway to Panama and functions as both an O&D and transit
facility to the region. Unlike these peers, Carrasco
International Airport has a significantly lower enplanement base
and weaker near-term financial coverage ratios, which limit rating
upgrades in the short term.
RATING SENSITIVITIES
Positive:
Unlikely in the medium term, due to weak DSCR metrics up to 2019
and limited but relevant termination risk until 2018. Traffic
performance consistently in line with Fitch's base case
expectations could trigger a positive rating action after 2019.
Negative:
Rating can be downgraded if traffic levels materially diverge from
rating case projections in the mid- to long-term.
CREDIT UPDATE
The airport's traffic performance in 2015 was slightly lower than
Fitch's Rating Case (-3.3%), based on higher than expected
international departing passengers (+2.6%), but lower than
expected shuttle passengers (-18.1%; flights arriving from or
departing to Aeroparque Jorge Newbery Airport, in the city of
Buenos Aires). Also, there was no tariff increase under the
Global Index Adjustment (GIA) in 2015; tariffs are USD42 per
international departing passenger and USD19 per shuttle passenger.
The DSCR at ACI was 1.3x, in line with Fitch's rating case.
Considering the debt service reserve account (DSRA) already funded
at ACI and available cash at the opco, consolidated Net Debt /
EBITDA was 5.85x, consistent with a 'BB+' rating.
Fitch expects 1.4% and 0.3% traffic growth for 2016 in the base
and rating cases, respectively. Long-term traffic growth is
expected to be higher than 2015-2016, at 2.56% and 1.48% CAGR in
the 2016-2032 period. Nevertheless, debt repayment is not
dependent on traffic growth as the break-even traffic annual
growth rate is a negative 2.06%, considering ACI's DSRA.
Additionally, no tariff increases were considered under the GIA
for both cases. Under the base case, minimum DSCR is 1.25x in
2018, with an average financial coverage ratio of 1.76x; under the
rating case, the minimum DSCR is 1.13x in 2018, with an average
financial coverage ratio of 1.5x.
SECURITY
The security package supporting the notes is typical for project
financings and includes a pledge of 100% of the shares of the
opco, PDS and a covenant to issue a guarantee from the entity; a
pledge of 100% of the shares of Cerealsur S.A., direct owner of
PDS's shares, and a guarantee from the entity; the transaction
distribution, issuer and debt service accounts; all of the
issuer's property; and all present and future payments, proceeds
and claims of any kind with respect to the foregoing. The
transaction includes a 'springing guarantee' covenant, which
requires the opco to issue a guarantee of the rated debt following
the payment in full of the opco debt in September 2021.
Therefore, the rated debt will become pari passu with all senior
unsecured debt at the opco because of the guarantee.
***********
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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
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Copyright 2016. All rights reserved. ISSN 1529-2746.
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