/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160531.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, May 31, 2016, Vol. 17, No. 106 Headlines B R A Z I L BRAZIL: Stocks Advance as Currency Drop Buoys Pulp Producers U.S.J.-ACUCAR: Fitch Hikes Issuer Default Ratings to 'CCC' C A Y M A N I S L A N D S CYGNET LTD: Creditors' Proofs of Debt Due June 15 DHS HOLDINGS: Creditors' Proofs of Debt Due June 19 FEINGOLD O'KEEFFE: Placed Under Voluntary Wind-Up FEINGOLD O'KEEFFE MASTER: Placed Under Voluntary Wind-Up LEHMAN VIP: Creditors' Proofs of Debt Due June 19 NETWORK CITY: Commences Liquidation Proceedings PANTEL LTD: Creditors' Proofs of Debt Due June 15 RAA LIMITED: Creditors' Proofs of Debt Due June 23 SOGKI INC: Creditors' Proofs of Debt Due June 19 WFLTO KY: Commences Liquidation Proceedings J A M A I C A JAMAICA: BOJ Says Economy Grew During January to March Quarter M E X I C O CREDITO REAL: HR Ratings Ups Default Rating on Sr. Notes From BB+ HSBC MEXICO: Moody's Lowers Rating on Class A RMBS to Caa1 USINAS SIDERURGICAS: Tenaris Participates in Capital Increase P E R U CAMPOSOL HOLDING: Neg. Rating Action Could Follow Debt Exchange P U E R T O R I C O ADELPHIA COMMUNICATIONS: Accepts Claims Tendered Under Offers LA CASA DEL MAESTRO: Hires Juan C. Vazquez Hernandez as Accountant LA ESTRELLA: Wants Time to Confirm Plan Extended by 90 Days MODERN OFFICE SYSTEMS: Seeks to Hire Michael Marcus as Accountant NORFE GROUP: Hires Totti & Rodriguez as Special Counsel V I R G I N I S L A N D S STATETRUST LIFE: A.M. Best Assigns B(Fair) Fin'l. Strength Rating X X X X X X X X X LATAM: Gov'ts Should Ease Financial Regulations to Spur Economy - - - - - =========== B R A Z I L =========== BRAZIL: Stocks Advance as Currency Drop Buoys Pulp Producers ------------------------------------------------------------ Denyse Godoy at Bloomberg News reports that the Ibovespa trimmed its second consecutive weekly decline as the weakening of the Brazilian currency buoyed pulp producers, offsetting a slump by state-controlled oil producer Petroleo Brasileiro SA. Suzano Papel e Celulose SA and Fibria SA, which get most of its revenue from exports, were among the best performers on the benchmark equity index, notes the report. Brazil's real depreciated, extending the worst performance among major currencies last week, as political concerns dimmed expectations that a new economic team named by acting President Michel Temer will be able to quickly revive Latin America's biggest economy, which is facing its worst recession in a century, according to Bloomberg News. "Exporters are benefiting from the real today, but caution is the watchword on the market," Raphael Figueredo, an analyst at the brokerage Clear Corretora, said from Sao Paulo, Bloomberg News relays. The Ibovespa added 0.3 percent to 49,624.12 at 11:57 a.m. on May 27 in Sao Paulo as 40 of its 59 stocks climbed, Bloomberg News notes. Suzano gained 2.2 percent, Fibria advanced 2.4 percent. Petrobras, as Petroleo Brasileiro is known, fell 2.5 percent, says the report. Trading volume was 13 percent below the five-day average as May 25 was a holiday in Brazil, 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. U.S.J.-ACUCAR: Fitch Hikes Issuer Default Ratings to 'CCC' ----------------------------------------------------------- Fitch Ratings has upgraded U.S.J.- Acucar e Alcool S.A's (USJ) foreign and local currency Long-Term Issuer Default Ratings (IDRs) to 'CCC' from 'RD' and its National Scale rating to 'CCC(bra)' from 'RD(bra)'. At the same time, Fitch has assigned a 'CCC+/RR3' rating to the new $US197 million secured notes due 2021, and affirmed the rating on the remaining $US29 million senior unsecured notes due 2019 at 'CCC' with revision to 'RR4' from 'RR2'. KEY RATING DRIVERS The upgrade of USJ's IDRs to 'CCC' follows the conclusion on May 17, 2016 of the debt exchange offer for the $US275 million senior unsecured bonds due 2019 with approximately 90% of the noteholders participating in the exchange. According to the terms of the new notes, the company will have the option to defer coupon payments in 2016 and 2017 and pay accrued interest at maturity, which has been extended to 2021 from 2019. The upgrade also reflects Fitch's expectation for the company to achieve neutral-to-positive free cash flow (FCF) in the next two years given the positive pricing environment for sugar and ethanol, and the deferral of coupon payments in 2016 and 2017. Nevertheless, 'CCC' rating still reflects Fitch's concern on the company's ability to meet its financial obligations given the still challenging refinancing prospects for Brazilian Sugar and Ethanol (S&E) companies. Fitch expects the deferral of coupon payments for the exchanged notes, which amounted to $US197 million, to save USJ approximately $US25 million in annual interest payments. If USJ defers coupon payments in 2016 and 2017, the coupon rate will increase to 12% for these two years and return to the original 9.875% in the following years. The RR3 Recovery Rating of the new notes reflect good recovery prospects as it is secured by USJ's Araras mill, land properties and sugar cane. On a pro forma basis Fitch expects USJ's cash position to amount to BRL70 million and short-term debt to reach BRL 280 million as of FY2016, with FCF still in negative territory and net leverage at 5.5x. While Fitch does not expect material improvements in the cash-to-short-term debt coverage, the company is forecast to generate neutral to positive FCF and improve its net leverage within the 4.5 - 5.0x range in FY2017. KEY ASSUMPTIONS -- Crushed sugar cane volumes of 3.2 million tons in 2015/2016 and gradual increases of 5% thereafter; -- Mix relatively unchanged at 66% sugar and 34% ethanol for the projected period; -- Average sugar prices at around BRL1,400/ton in 2016/2017 and beyond; -- Domestic ethanol prices keep their historical correlation with international sugar prices; -- No dividends coming from SJC Bioenergia (SJC) in 2016/2017. RATING SENSITIVITIES The company's ratings could be downgraded if liquidity deteriorates further and/or the expected positive FCF for FY2017 does not materialize. Ratings will be downgraded to 'D' and D(bra) if the company formally files for bankruptcy protection. The rating on the $US29 million senior unsecured notes due 2019 could be downgraded should the company's secured debt proportion increase in coming months, resulting in deterioration in recovery prospects. The notes' current RR4 Recovery Rating reflects average recovery prospects given default. An upgrade to higher categories is unlikely over the short-term given USJ's persistently high refinancing risks. FULL LIST OF RATING ACTIONS U.S.J. - Acucar e Alcool S.A: -- Foreign and local currency Long-Term IDRs upgraded to 'CCC' from 'RD'; -- Long-Term National Scale rating upgraded to 'CCC(bra)' from 'RD(bra)'; -- $US197 million senior secured notes, due 2021, assigned rating of 'CCC+/RR3'; -- $US29 million senior unsecured notes due 2019 affirmed at 'CCC', revised to 'RR4' from 'RR2'. ========================== C A Y M A N I S L A N D S ========================== CYGNET LTD: Creditors' Proofs of Debt Due June 15 ------------------------------------------------- The creditors of Cygnet Ltd. are required to file their proofs of debt by June 15, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 25, 2016. The company's liquidator is: Susan Lo Yee Har Hopewell Centre, Level 54 183 Queen's Road East Hong Kong c/o Desmond Chisholm Telephone: (345) 814 5469 Facsimile: (345 949 8080 DHS HOLDINGS: Creditors' Proofs of Debt Due June 19 --------------------------------------------------- The creditors of DHS Holdings Co Ltd. are required to file their proofs of debt by June 19, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 27, 2016. The company's liquidator is: Christopher Smith Krys Global VL Services Limited Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 Cayman Islands Telephone: (345) 947 4700 FEINGOLD O'KEEFFE: Placed Under Voluntary Wind-Up ------------------------------------------------- On Dec. 23, 2015, the sole shareholder of Feingold O'Keeffe Capital I Offshore, 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: Newstar Capital LLC c/o Justin Savage Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands FEINGOLD O'KEEFFE MASTER: Placed Under Voluntary Wind-Up -------------------------------------------------------- On Dec. 23, 2015, the sole shareholder of Feingold O'Keeffe Master Fund, 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: Newstar Capital LLC c/o Justin Savage Ogier Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands LEHMAN VIP: Creditors' Proofs of Debt Due June 19 ------------------------------------------------- The creditors of Lehman VIP Investment LDC are required to file their proofs of debt by June 19, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 27, 2016. The company's liquidator is: Christopher Smith Krys Global VL Services Limited Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 Cayman Islands Telephone: (345) 947 4700 NETWORK CITY: Commences Liquidation Proceedings ----------------------------------------------- On May 9, 2016, the sole shareholder of Network City 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: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 PANTEL LTD: Creditors' Proofs of Debt Due June 15 ------------------------------------------------- The creditors of Pantel Ltd. are required to file their proofs of debt by June 15, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 25, 2016. The company's liquidator is: Susan Lo Yee Har Hopewell Centre, Level 54 183 Queen's Road East Hong Kong c/o Desmond Chisholm Telephone: (345) 814 5469 Facsimile: (345 949 8080 RAA LIMITED: Creditors' Proofs of Debt Due June 23 -------------------------------------------------- The creditors of RAA Limited are required to file their proofs of debt by June 23, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 27, 2016. 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 Telephone: (345) 949-7128 SOGKI INC: Creditors' Proofs of Debt Due June 19 ------------------------------------------------ The creditors of Sogki Inc. are required to file their proofs of debt by June 19, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 27, 2016. The company's liquidator is: Christopher Smith Krys Global VL Services Limited KRyS Global Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 c/o Christopher Smith Telephone: (345) 947 4700 WFLTO KY: Commences Liquidation Proceedings ------------------------------------------- On May 6, 2016, the members of WFLTO KY I L.P. 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: Arun Abraham or Gary Butler IMS Liquidations Ltd. P.O. Box 61 Harbour Centre, George Town Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-4244 Facsimile: (345) 949-8635 ============= J A M A I C A ============= JAMAICA: BOJ Says Economy Grew During January to March Quarter -------------------------------------------------------------- RJR News reports that the Bank of Jamaica said the local economy grew during the January to March quarter. Growth is estimated to have ranged between zero to one percent, according to RJR News. According to the Central Bank's quarterly monetary policy report, this resulted from growth in all industries, except Agriculture, Forestry and Fishing, Mining and Quarrying as well as producers of Government Services, the report notes. It says the estimate reflects a slowdown relative to the outturn of 0.7 per cent in the October to December quarter last year, the report relays. The Central Bank said growth in economic activity during the first three months of this year was reflective of expansions in non- tradeable industries as there were declines in tradeable industries, the report discloses. During the January to March quarter, non-tradable industries were estimated to have grown at a relatively faster pace when compared to the December 2015 quarter, the report notes. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2016, Fitch Ratings has upgraded Jamaica's Long-term foreign and local currency IDRs to 'B' from 'B-' and revised the Rating Outlooks to Stable from Positive. In addition, Fitch upgraded Jamaica's senior unsecured Foreign- and Local-Currency bonds to 'B' from 'B-'. The Country Ceiling has been affirmed at 'B' and the Short- Term Foreign-Currency IDR affirmed at 'B'. =========== M E X I C O =========== CREDITO REAL: HR Ratings Ups Default Rating on Sr. Notes From BB+ ----------------------------------------------------------------- Credito Real, S.A.B. de C.V., SOFOM, E.R. informs that HR Ratings disclosed its credit rating review. HR Ratings increased the default rating to an investment grade from BB+ to BBB- of the 425MM USD Senior Notes due 2019. The rating agency also increased the default rating from A+ to AA- of the local long term notes with ticker symbol Creal 14, Creal 15 and Creal 16. Additionally HR Ratings increased the default rating from HR2 to HR1 of the Notes Revolving Program (Cebures). Finally HR Ratings changed the Special Review of Credito Real to a Stable Outlook. According to the HR Ratings release, the increase of one notch in all the issuances of Credito Real reflects the recurring and cash flow generation, the income diversification of products and regions, mainly due to auto loans, SME's and Instacredit. The ratings are limited by the impairment of the efficiency ratio and the performance of the foreign businesses lines. Credito Real is a leading financial institution in Mexico, focusing on consumer lending with a diversified business platform in five main lines of business: payroll credits, durable goods loans, small business loans, group loans and used car loans. Credito Real offers its products mainly to the low and middle segments of the population that have historically been underserved by other financial institutions. HSBC MEXICO: Moody's Lowers Rating on Class A RMBS to Caa1 ---------------------------------------------------------- Moody's de Mexico has downgraded two residential mortgage-backed securitizations (RMBS) guaranteed by MBIA Mexico. This rating action follows the recent downgrade of the ratings of the financial guarantor, MBIA Mexico. The rating action is: Issuer: HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC, Division Fiduciaria, acting solely as trustee. -- MXMACFW 07-5U Class A, downgrade to Caa1 (sf) (Global Scale, Local Currency) and Caa1.mx (sf) (Mexican National Scale) from B3 (sf) (Global Scale, Local Currency) and B2.mx (sf) (Mexican National Scale) and previously placed under review for possible downgrade. The certificates' underlying ratings (reflecting the certificates' intrinsic credit quality absent the financial guarantee that MBIA Mexico provides) are C (sf) and C.mx (sf). -- BRHCCB 07-2U Class A-2, downgrade to Caa1 (sf) (Global Scale, Local Currency) and Caa1.mx (sf) (Mexican National Scale) from B3 (sf) (Global Scale, Local Currency) and B2.mx (sf) (Mexican National Scale) and previously placed under review for possible downgrade. The certificates' underlying ratings (reflecting the certificates' intrinsic credit quality absent the financial guarantee that MBIA Mexico provides) are Ca (sf) and Ca.mx (sf). RATINGS RATIONALE This action is driven solely by Moody's announcement on 26 May 2016 that it has downgraded the Insurance Financial Strength (IFS) ratings of MBIA Mexico. MXMACFW 07-5U and BRHCCB 07-2U benefit from a financial guaranty insurance policy issued by MBIA Mexico, that covers timely interest payment and ultimate principal payment by the certificates final maturity date of the certificates. The certificates' current ratings are consistent with Moody's modified approach to rating structured finance securities wrapped by financial guarantors at the higher of (1) the guarantor's IFS rating and (2) the underlying ratings, which reflect the intrinsic credit quality of the certificates in the absence of the guarantee. In the case of MXMACFW 07-5U Class A and BRHCCB 07-2U Class A-2, because MBIA Mexico's IFS ratings are higher than the certificates' underlying ratings, the certificates' ratings are in line with MBIA Mexico's current ratings. FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS: Any change in MBIA Mexico's IFS rating would result in a change in the ratings of the affected certificates. RATING METHODOLOGY The principal methodology used in these ratings was "Moody's Approach to Rating RMBS using the MILAN Framework" published in January 2015. This action is driven solely by the rating action on MBIA and is not a result of any change in key assumptions, expected losses, cash flows and stress scenarios on the underlying assets. Moody's considered the servicers' practices and views them as adequate. USINAS SIDERURGICAS: Tenaris Participates in Capital Increase ------------------------------------------------------------- Tenaris S.A. announced, by the expiration of the initial subscription round of the proposed issuance of 200 million ordinary shares of Usinas Siderurgicas de Minas Gerais - Usiminas at an amount of BRL 5.0 per share, that each of the entities within the Ternium/Tenaris Group, or T/T Group, (including TenarisConfab) has exercised its preemptive rights in connection with the share issuance and has also indicated its willingness to subscribe ordinary shares not subscribed by Usiminas' current shareholders up to a maximum number to be specified in due course. Accordingly, the T/T Group has subscribed to 38.7 million ordinary shares for a total amount of BRL 193.5 million, of which TenarisConfab has subscribed to 5.1 million for a total amount of BRL 25.3 million (approximately USD 7.2 million). The term for indicating the maximum number of ordinary shares to be subscribed to under the second round is expected to expire on June 14, 2016. As reported in the Troubled Company Reporter-Latin America on April 6, 2016, Moody's America Latina has downgraded Usinas Siderurgicas de Minas Gerais S.A. corporate family ratings to Ca from Caa1 (global scale) and to Ca.br from Caa1.br (national scale). The outlook for the ratings is stable. ======= P E R U ======= CAMPOSOL HOLDING: Neg. Rating Action Could Follow Debt Exchange --------------------------------------------------------------- According to Fitch Ratings, a negative rating action could occur if Camposol does not fully complete its refinancing solution with committed bank lines or shareholder funds to cover the remaining amount of notes outstanding which do not participate in the debt- exchange. The negative rating action will reflect limited refinancing options for the remaining notes due in February 2017 and liquidity would remain constrained. Camposol has announced it received tenders from 73.77% of holders of its existing notes as of May 20, 2016, representing $US147,542,000, of the aggregate $US200,000,000 principal amount of notes outstanding. It is, however, below the minimum tender condition of 95% announced in the initial debt-exchange proposal. The company has announced its intention to settle the exchange offer at the current participation level. Fitch believes that repayment of the remaining 26.33% ($US52,458,000 principal amount of existing notes) should be covered by a shareholder injection or committed lines of credit at the time of the debt-exchange transaction closing to reduce refinancing risk of the remaining notes and to avoid a downgrade. The main proposal of the debt-exchange is to extend the maturity of Camposol's existing notes due in February 2017. The new notes would mature in 2021. Post-transaction, if refinancing risk persists for the remaining notes while liquidity shrinks, a negative rating action could follow. Fitch believes sources of liquidity - additional cash from the company's own cashflow generation - such as new credit loans and/or equity injections should be committed to repay the remaining bonds. In addition to a higher interest rate for the new notes compared to the existing notes (10.5% vs 9.875%), the company has offered to pay a participation fee equal to 1.00% of the principal amount of existing notes tendered in an effort to increase the holders' participation in the exchange offer. Post- transaction, the cash position of the company would be reduced by $US10 million. The company is looking for extensions of its existing lines of credit. After settlement of the exchange offer (expected on May 26, 2016), the company intends to contact holders of existing notes who have not participated in the exchange offer in order to obtain additional exchanges for new notes. Fitch currently rates Camposol Holding Ltd. and Camposol S.A. as follows: Camposol Holding Ltd. -- Long-Term foreign currency Issuer Default Rating (IDR) 'B-'; -- Long-Term local currency IDR 'B-'. Camposol S.A. -- Long-Term foreign currency IDR 'B-'; -- Long-Term local currency IDR 'B-'; -- Senior unsecured notes 'B-/RR4'; -- Senior secured notes 'B-/RR4exp'. The Rating Outlook is Negative. ====================== P U E R T O R I C O ====================== ADELPHIA COMMUNICATIONS: Accepts Claims Tendered Under Offers ------------------------------------------------------------- ACC Claims Holdings, LLC on May 27, 2016, announced the acceptance of Claims validly tendered and not validly withdrawn Claims pursuant to its previously announced offers to certain eligible holders to exchange (i) class A limited liability company interests of ACC Claims Holdings, LLC for up to all of the outstanding ACC Senior Notes Claims (Class ACC 3) allowed under the Plan of Reorganization, including any post-petition pre- effective date interest and post-effective date interest to and including the extended expiration date of the offers (the "Senior Claims"), against Adelphia Communications Corporation, and (ii) class B limited liability company interests of ACC Claims Holdings, LLC for up to all of the outstanding ACC Trade Claims (Class ACC 4) allowed under the Plan of Reorganization, including any post-petition pre-effective date interest and post-effective date interest to and including the extended expiration date of the offers (the "ACC 4 Claims"), and ACC Other Unsecured Claims (Class ACC 5) allowed under the Plan of Reorganization, including any post-petition pre-effective date interest and post-effective date interest to and including the extended expiration date of the offers (the "ACC 5 Claims" and, together with the ACC 4 Claims, the "Other Claims"; the Senior Claims and the Other Claims, together, the "Claims"), against Adelphia Communications Corporation. The exchange offers expired at 5:00 p.m., New York City time, on Thursday, May 26, 2016 (the "Expiration Date"). The payment date for the exchange offers will be promptly following the Expiration Date and is expected to be on or about June 2, 2016. The managing member of ACC Claims Holdings, LLC announces that the holders of approximately 89% of the Senior Claims and the Other Claims have validly tendered their claims pursuant to the exchange offers. The managing member of ACC Claims Holdings, LLC has waived the minimum tender condition of 90% of the Claims held by eligible holders. At the Expiration Date, eligible holders of $4,480,394,458.00 original principal amount of ACC Senior Notes (as defined in the Plan of Reorganization) outstanding, eligible holders of $297,348,619.16 of ACC 4 Claims outstanding and eligible holders of $45,562,809.75 of ACC 5 Claims outstanding had validly tendered their Claims pursuant to the exchange offers, and all such tenders of Claims have been accepted. The exchange offers were made pursuant to (i) the offers to exchange, dated March 3, 2016, and supplemented and amended on March 9, 2016, March 21, 2016, April 1, 2016, April 8, 2016, April 15, 2016, and April 21, 2016, April 29, 2016, May 5, 2016, May 13, 2016 and May 20, 2016, and (ii) the related letter of transmittal, dated as of March 3, 2016 and supplemented and amended on March 21, 2016 and May 20, 2016. ACC Claims Holdings, LLC is a Delaware limited liability company formed on November 18, 2015. ACC Claims Holdings, LLC exists solely for the purpose of liquidating the claims and distributing the proceeds thereof to the holders of its limited liability company interests. ACC Claims Holdings, LLC does not conduct a trade or business or engage in any transactions other than transactions merely incidental to (i) liquidation of claims, whether by sale, transfer or other disposition by ACC Claims Holdings, LLC or the claims held thereby, or be merger, consolidation or other reorganization of ACC Claims Holdings, LLC, or otherwise, and (ii) its dissolution. About Adelphia Communications Based in Coudersport, Pennsylvania, Adelphia Communications Corporation was once the fifth-biggest cable company. Adelphia served customers in 30 states and Puerto Rico, and offered analog and digital video services, Internet access and other advanced services over its broadband networks. Adelphia collapsed in 2002 after disclosing that founder John Rigas and his family owed $2.3 billion in off-balance-sheet debt on bank loans taken jointly with the company. Mr. Rigas was sentenced to 12 years in prison, while son Timothy 15 years. Adelphia Communications and its more than 200 affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 02-41729) on June 25, 2002. Willkie Farr & Gallagher represented the Debtors in their restructuring effort. PricewaterhouseCoopers served as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman LLP and Klee, Tuchin, Bogdanoff & Stern LLP represented the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas-Managed Entities, were entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision LLC. The RME Debtors filed for Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642) on March 31, 2006. Their cases were jointly administered under Adelphia Communications and its debtor-affiliates' Chapter 11 cases. The Bankruptcy Court confirmed the Debtors' Joint Chapter 11 Plan of Reorganization on Jan. 5, 2007. The Plan became effective on Feb. 13, 2007. The Adelphia Recovery Trust, a Delaware Statutory Trust, was formed pursuant to the Plan. The Trust holds certain litigation claims transferred pursuant to the Plan against various third parties and exists to prosecute the causes of action transferred to it for the benefit of holders of Trust interests. Lawyers at Kasowitz, Benson, Torres & Friedman, LLP (NYC), represent the Adelphia Recovery Trust. LA CASA DEL MAESTRO: Hires Juan C. Vazquez Hernandez as Accountant ------------------------------------------------------------------ La Casa Del Maestro y El Estudiante, Inc., seeks permission from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Juan C. Vazquez Hernandez, CPA, as accountant. Mr. Hernandez will provide general accounting, taxes and overall financial consulting services in connection with the bankruptcy case. He will provide these services: a. reconciliation of financial information to assist the Debtor in preparation of monthly operating reports; b. assist in the reconciliation and clarification of proof of claims filed and amounts due to creditors; c. assist the Debtor and its counsel in the preparation of the supporting documents for the Chapter 11 reorganization plan. Mr. Hernandez will be paid $200 monthly. Mr. Hernandez assures the Court that he is disinterested person as defined in 11 U.S.C. Section 101(14). Mr. Hernandez can be reached at: Juan C. Vazquez Hernandez, CPA HC-67 Box 13158 Bayamon, PR 00956 Tel: (787) 294-0633 Fax: (787) 294-0635 E-mail: cpajuancvazquez@gmail.com The Debtor's counsel can be reached at: Mercado & Conaway Law Office Wigberto Mercado, Esq. Carmen L. Conaway Mediavilla, Esq. P.O. Box 9020281 San Juan, PR 00902-0281 Tel: (787) 269-8844 E-mail: lcdowmercado@yahoo.com La Casa Del Maestro Y El Estudiante, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-01241) on Feb. 22, 2016. Wigberto Mercado Barbosa, Esq., at Mercado & Conaway Law Office serves as the Debtor's bankruptcy counsel. LA ESTRELLA: Wants Time to Confirm Plan Extended by 90 Days ----------------------------------------------------------- La Estrella Fast Food, Inc., asks the U.S. Bankruptcy Court for the District of Puerto Rico to extend by 90 days the time to obtain confirmation of its plan of reorganization. The Debtor's exclusivity period ends on May 30, 2016, but the Debtor has not been able to confirm a plan because of the contested issues pending between biggest creditor in this case and the Debtor. On Aug. 14, 2015, the Debtor filed its proposed plan of reorganization. The Debtor filed its Amended Plan of Reorganization on Aug. 31, 2015. The Court entered an order to scheduled the confirmation hearing for Oct. 7, 2015, at 9:00 a.m. The Debtor sought relief under Chapter 11 because of the possible cancellation of lease contract and imminent eviction by Caribbean Restaurant, Inc, due to the assertion that debtor was in arrears with his lease contract. The truth of the matter is that he contested the validity of an electrical substation in the amount of $60,000 not contemplated in the original remodeling contract in the amount of $308,000. On Oct. 2, 2015, creditor Caribbean Restaurants, LLC, filed an objection to the confirmation of Debtor's Amended Plan. On Jan. 14, 2016, creditor Caribbean Restaurants, LLC, also filed a motion to lift the automatic stay if the pre-petition arrears were not cured within 30 days. Caribbean Restaurant asserts that debtor is in arrears with the lease agreement. The Debtor has provided the evidence of being current because of an excess payment over the last two years of CAM charges. According to the Debtor, creditor Caribbean Restaurant failed to disclose their true intentions from the beginning of the case. As one can see from the history of the case, a lot of time was wasted because creditor had made representations that they are willing to negotiate the prepetition arrears and that they wanted La Estrella to continue operating Business as usual. The Debtor assures the Court that the Plan is confirmable, because it has the necessary base to pay all creditors, now that the debtor will pay the prepetition arrears outside the plan more money will be available for the Plan. The Debtor is seeking a modification with Banco de Desarrollo to increase its cash flow and has already met with them. La Estrella Fast Food, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 15-02687) on April 10, 2015. The Debtor is represented by: Mar Soledad Lozada Figueroa LOZADA LAW & ASSOCIATES P.O. Box 9023888 San Juan, P.R. 00902-3888 Tel: (787) 200-0673 Cel: (787) 533-1400 E-mail: msl@lozadalaw.com MODERN OFFICE SYSTEMS: Seeks to Hire Michael Marcus as Accountant ----------------------------------------------------------------- Modern Office Systems Inc. and Luis Vargas Rodriguez, the company's president, seek approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire an accountant for the estate. The Debtors proposed to hire Michael Marcus as accountant to provide these services: (a) to close out the Debtors' books as of the date of the filing of the cases and to open new books; (b) to establish a new bookkeeping system to replace the system used by the Debtors; (c) to prepare the periodic statements of the debtors-in- possession's operations; (d) to prepare and file the Debtors' state and federal tax return; (e) to prepare General Ledger and Disbursements Register; (f) to reconcile the account; (g) to prepare Interim Financial Statements for each semester and Certified Financial Statements for each state tax return to be submitted every year on or before April 14th; (h) to provide tax and management counseling; (i) to represent the Debtors in taxes investigations; (j) to prepare weekly payroll; (k) to prepare bank reconciliations; (l) to distribute income and expenses of the corporation accordingly; (m) to prepare monthly operating reports to be submitted on or before the 20th of each month. Mr. Marcus will charge $500 monthly for his services. In a court filing, Mr. Marcus disclosed that he does not have an interest materially adverse to the interest of the Debtors' estates. Mr. Marcus maintains an office at: Michael J. Marcus P.O. Box 6494 Cabo Rojo, Puerto Rico 00732 Tel: 787-265-0970 Fax: 787-834-6635 E-mail: cpamichaelm@gmail.com The Debtors can be reached through: Modesto Bigas Mendez Modesto Bigas Law Office P.O. Box 7462 Ponce, Puerto Rico 00732-7462 Tel:787-844-1444 Fax: 787-842-4090 E-mail: modestobigas@yahoo.com About Modern Office Systems Modern Office Systems Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 15-09655) on December 4, 2015. On April 29, 2016, the court granted the substantive consolidation of Modern Office Systems' case with the Chapter 11 case (Case No. 16-00812) of Luis Vargas Rodriguez, president of the company. NORFE GROUP: Hires Totti & Rodriguez as Special Counsel ------------------------------------------------------- Norfe Group Corp. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Totti & Rodriguez Diaz, P.S.C. as its special counsel. Totti & Rodriguez will continue to represent the Debtor in a case filed by Consejo de Titulares del Condominio 221 Plaza. The firm's hourly rates are: Partners $200 Associates $175 Paralegals $80 Etienne Totti del Valle, Esq., a partner at Totti & Rodriguez, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Etienne Totti del Valle Totti & Rodriguez Diaz, P.S.C. Union Plaza Building, Suite 1200, 416 Ponce de Leon Avenue Hato Rey, Puerto Rico 00918 Phone: (787) 753-7910 Fax: (787) 764-9480 Email: trd@trdlaw.com About Norfe Group Norfe Group Corp. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-00285) in Old San Juan, Puerto Rico, on Jan. 20, 2016. The petition was signed by David Efron, president. The firm scheduled $17,269,436 in total assets and $31,441,591 in total liabilities. The Debtor tapped Charles Alfred Cuprill, Esq., at Charles A Cuprill, PSC Law Office, as counsel. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultant. =========================== V I R G I N I S L A N D S =========================== STATETRUST LIFE: A.M. Best Assigns B(Fair) Fin'l. Strength Rating ----------------------------------------------------------------- A. M. Best has assigned a financial strength rating of B (Fair) and an issuer credit rating of bb to StateTrust Life and Annuities, Limited (STL) (Tortolla, British Virgin Islands). The outlook assigned to each rating is stable. The rating assignments for STL reflect the company's relatively modest level of absolute capital, the above-average investment risk within its general account portfolio, its inconsistent profitability trend and the risks to its business profile from unanticipated changes to international tax law and investment treaties. The ratings also reflect the fact that the company's enterprise risk management and corporate governance practices are still in their developmental stages. Additionally, the majority of the company's business production is sourced from clients residing in Latin American countries that pose a unique set of risks, including higher political, capital markets and regulatory risk related to economies that are unpredictable. Finally, STL's ongoing expansion into local operations in other Latin American countries will require additional capital. However, A.M. Best acknowledges the company's previous successful share offerings. These negative rating factors are partially offset by STL's niche business profile as a provider of life insurance products, retirement and education plans to clients mainly located throughout Latin America, where medium to high net worth individuals desire products denominated in U.S. dollar, Euro and other currencies. STL offers complementary financial solutions to the existing services (such as banking and investments) offered by the StateTrust group of companies to clients located in the United States and throughout Latin American countries. A.M. Best notes that STL's product risk is heavily mitigated by the fact that most of the investment risk is borne by its customers through the use of variable life and annuity product designs that offer no secondary guarantees, and that the vast majority of mortality risk is reinsured by a highly rated reinsurer. The ratings also recognize STL's adequate level of risk-adjusted capitalization, which is further supported by its long-standing partnership with a creditworthy reinsurer. Positive rating movement for STL would be possible should the company realize a material improvement in risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), while also implementing further improvements to its enterprise risk management framework. A negative rating action could result from a significant decline in risk-adjusted capitalization, as measured by BCAR. A negative rating action could also result from further net losses resulting in a decline in absolute capital. ================= X X X X X X X X X ================= LATAM: Gov'ts Should Ease Financial Regulations to Spur Economy --------------------------------------------------------------- Paul Smith, president of the CFA Institute, said in a wide-ranging interview with EFE on investment and the capital markets in Latin America that governments should ease regulations to boost the regional economy. "Latin America's financial regulators should reduce controls if they want to bolster the region's economy," Mr. Smith said, according to EFE News. *********** 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 2016. All rights reserved. ISSN 1529-2746. This material is copyrighted and any comillionercial 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 * * *