/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160802.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, August 2, 2016, Vol. 17, No. 151 Headlines A R G E N T I N A ARGENTINA: Fitch Says Corp Upgrades to Outpace Cuts Since 2007 B R A Z I L ENERGISA SA: S&P Affirms 'BB' Rating, Outlook Remains Negative GOL LINHAS: Fitch Hikes Long-Term Issuer Default Ratings to 'CC' OI SA: Judge May Soon Force Vote on Board Change, Lawyer Says C A Y M A N I S L A N D S ATTALUS ACTIVE: Shareholders' Final Meeting Set for Aug. 16 BOW STREET: Shareholder to Hear Wind-Up Report on Aug. 9 GLOBAL FOCUSED: Members' Final Meeting Set for Aug. 12 GOLDMAN SACHS EVENT: Members' Final Meeting Set for Aug. 11 GOLDMAN SACHS GLOBAL: Members' Final Meeting Set for Aug. 11 GOLDMAN SACHS PROPRIETARY: Members' Final Meeting Set for Aug. 11 GOLDMAN SACHS STRUCTURED: Members' Final Meeting Set for Aug. 11 HARRISON CORP: Shareholders' Final Meeting Set for Aug. 11 INVEST AD: Shareholders' Final Meeting Set for Aug. 31 KEMNAY VALTURA: Members' Final Meeting Set for Aug. 19 LIBERTY HARBOR: Members' Final Meeting Set for Aug. 11 PERGAMON MASTER: Shareholders' Final Meeting Set for Aug. 9 PERGAMON OFFSHORE: Members' Final Meeting Set for Aug. 9 WP X INVESTMENTS: Members' Final Meeting Set for Aug. 12 J A M A I C A JAMAICA: OKs US$4MM Repayment to Venezuela Under PetroCaribe Deal M E X I C O CEMEX SAB: Reports Second Quarter 2016 Results P U E R T O R I C O AEROPOSTALE INC: Court to Take Up Exit Plan on August 23 ECRA GROUP: Hires Luis D. Flores Gonzalez as Legal Counsel HYPERBARICS AND WOUND: Hires Heriberto Acevedo as Auditor LINCOLN RESTAURANTS: Hires Arvelo & Vazquez as Counsel PUERTO RICO: Towns to Share Services, Cut Costs Amid Crisis V E N E Z U E L A VENEZUELA: May be on The Brink of Total Collapse, NY Post Opines - - - - - ================= A R G E N T I N A ================= ARGENTINA: Fitch Says Corp Upgrades to Outpace Cuts Since 2007 -------------------------------------------------------------- For the first time since 2007, Argentine annual corporate upgrades are projected to outpace downgrades, according to a new Fitch Ratings report. Argentina's Country Ceiling was upgraded to 'B' from 'CCC' in March 2016. Nine companies were subsequently upgraded, since the majority of their ratings are constrained by the country ceiling rating. The Fitch-rated Argentine portfolio was comprised by 11 companies as of June 30, 2016. Approximately 73% of Fitch's Argentine corporate portfolio has been assigned a Stable Outlook, while 18% have a Negative Outlook; the remainder have no Rating Outlook assigned because Fitch does not assign Outlooks to issuers rated 'CCC' or below. Argentine corporates have weak liquidity. The country's low cash levels compared with regional counterparts reflect the previous administration's restrictive policies and the general lack of investment opportunities. Short-term debt balances are also high in proportion to total debt. "The Fitch-rated Argentine portfolio issued US$3.2 billion in bonds as of June 30, 2016. Fitch expects issuances to continue, as corporates are looking to replace expensive, local debt with cheaper, longer-term U.S. dollar-denominated debt," said Cristina Madero, Associate Director. The proportion of U.S. dollar-denominated debt is increasing as companies are refinancing local debt with international issuances. For some oil and gas companies, almost 100% of debt is denominated in U.S. dollars. =========== B R A Z I L =========== ENERGISA SA: S&P Affirms 'BB' Rating, Outlook Remains Negative -------------------------------------------------------------- S&P Global Ratings affirmed its 'BB' global scale and 'brAA-' national scale ratings on Energisa S.A. and its subsidiaries, Energisa Paraiba-Distribuidora de Energia S.A. and Energisa Sergipe-Distribuidora de Energia S.A. The outlook remains negative. Ratings on Brazil (BB/Negative/B, brAA-/Negative/--) continue to cap ratings on Energisa and its subsidiaries. In S&P's view, the Brazilian electric sector is highly regulated, especially the distribution and transmission segments because the regulator (ANEEL) determines the rates for each company of the sector. S&P believes Energisa, as other regulated utilities in Brazil, could be subject to government intervention in a scenario of sovereign default. "The stronger SACP, in turn, reflects our view that Energisa should post comfortable credit metrics over the next few years, as a result of the improved operating performance at the electricity distribution assets that the group acquired from Rede Energia. In addition, Energisa strengthened its capital structure, after some initiatives that included a broad agreement with the Brazilian Development Bank (BNDES)--which consisted of a R$250 million capital injection from Energis's controlling shareholder last year, the issuance of R$1 billion debentures, and a syndicated bank loan (R$660 million already disbursed)--and the recently announced R$1.5 billion public equity offering, R$1.4 billion of which is already completed and net proceeds to be received in early August. These measures, in our view, help enhance the group's liquidity position, especially amid tight credit conditions in Brazil," S&P said. Energisa's business risk profile benefits from the group's distribution assets that operate as natural monopolies under a favorable regulatory framework. Energisa is one of the largest utilities in Brazil, distributing electricity to about 6.4 million consumers in 788 municipalities. The group is focusing on integrating and improving the efficiency of the distributors it acquired from Rede Energia. S&P believes that the group has a favorable track record in such endeavor because its two core subsidiaries have posted significant operating improvements over the past few years, resulting in stronger quality metrics. Despite Brazil' economic slump, S&P expects Energisa's recent initiatives to keep client delinquency and electricity losses under control, after they increased over the past few quarters. Based on S&P's expectation of a decline in electricity consumption in Energisa's concession area in 2016, its energy purchases should exceed demand by more than the 5% regulatory limit over the next few years. As distributors are not entitled to pass-through surpluses above this threshold in their rates, they must sell excess energy in the spot market. However, spot market prices are currently below the average ones under Energisa's energy purchase agreements. But S&P doesn't expect this scenario to impair Energisa's ratings. The association of domestic distributors has held several discussions with ANEEL, which have already resulted in some mitigating measures. In addition, they could reduce Energisa's excess energy, depending on their final outcome. "We assess Energisa and its subsidiaries on a consolidated basis, because the group adopts an integrated financial management approach, in our view, and the holding company, Energisa, actively manages its subsidiaries, including Energisa Paraiba and Energisa Sergipe. We expect Energisa to continue converting its regulatory assets into cash in 2016, which fell to R$425 million in December 2015 and to R$257 million in the first quarter of 2016, after reaching a peak of R$509 million in the third quarter of 2015. This would allow it to reduce significantly its working capital needs," S&P said. GOL LINHAS: Fitch Hikes Long-Term Issuer Default Ratings to 'CC' ---------------------------------------------------------------- Fitch Ratings has upgraded Gol Linhas Aereas Inteligentes S.A.'s (GOL) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'CC' from 'RD' and its National Scale rating to 'CC(bra)' from 'RD(bra)'. Fitch has also upgraded GOL's fully owned subsidiaries' secured notes from CC/RR3 to CCC-/RR3 and affirmed GOL's fully owned subsidiaries' unsecured bond ratings at C/RR5. The rating actions reflect Fitch's reassessment of GOL's IDRs and issuance debt ratings incorporating the company's credit quality following its recently executed debt exchange offer. The ratings reflect the company's continued high leverage and weak cash flow relative to debt obligations. GOL's financial and operational strategy included the execution of the following actions: the debt exchange offer with a 21% acceptance, the refinancing of its debt with Brazilian banks reducing principal payments during 2016 - 2017 and obtaining waivers until Dec. 31 2016, reducing the scale of its operations by returning approximately 15% of its total number of aircraft and reducing its total consolidated capacity with a target of 6% to 8% decrease during 2016. Also, the company has negotiated an agreement to postpone aircraft delivery with the aim to materially reduce total capital expenditures (capex) during 2016. Although recent developments provide some relief to the company regarding financial flexibility, Fitch sees only the potential for a limited recovery in the company's operational performance during the next 12 months given Brazil's weak economic environment. GOL's liquidity deterioration - driven mainly by continued weak operational performance - continues to be a key concern. The 'RR3' Recovery Rating (RR) for the new secured notes reflects above-average recovery prospects in an event of default. These notes are secured by collateral that has been valued at US$222.7 million, representing a principal coverage ratio of over 3 to 1. Fitch recovery analysis for the secured new notes resulted in higher values but has been capped at 'RR3' considering that some jurisdiction's issues could affect the recovery prospects. The 'RR5' for the senior unsecured notes reflects below average recovery prospects in an event of default. KEY RATING DRIVERS Demand Decline Continues Brazil's total domestic traffic is anticipated to decline by 8% to 12% during 2016 as demand fundamentals and corporate activity remain weak. In this environment, GOL's total number of transported passengers decreased by 22% and 16% during the second quarter and the first half of 2016 (1H 2016), respectively, when compared to the same periods last year. Fitch's base case considers that GOL's total transported passengers will decline by approximately 15% during 2016. The strengthening of the Brazilian real against the U.S. dollar, which occurred in recent months, is a positive for the company's operations, as GOL generates approximately 90% of its revenues in Brazilian reals, while around 60% of its total costs and 80% of its total debt are denominated in U.S. dollars. Capacity Adjustments and Fleet Size Reduction Incorporated During 1H 2016, GOL managed to reduce its total capacity, measured as available seat kilometers (ASK), by approximately 7.5%, closing this period with 23 billion of ASK. The company's capacity reductions in the domestic and international segments were 6.3% and 15.6%, respectively. For 2016, Fitch expects the company to reduce its total capacity - in the domestic and international segments combined - by 6% to 8%. GOL has also reduced its flight route network to focus on profitability. In conjunction with these measures, the company is reducing the number of operational aircraft. The company expects to return at least 20 aircraft during 2016 - 15 aircraft already returned by the end of June 2016 - closing the year with a total fleet of 124 aircraft, 84 of those under operational leases and the remaining balance under financial leases. Negative 2016 EBIT Margin, High Leverage Fitch expects GOL to reach negative EBIT margin, around -2%, in 2016. Fitch's 2016 base case for GOL considers a 15% decline in total transported passengers, an increase in yields in the 7% to 10% range helped by the reduction in capacity, and total non-fuel cask around BRL 14.2 cents. Fitch views the trend in yield as one of the key factors for the company's 2016 operational performance. GOL's adjusted gross leverage, measured as total adjusted debt/EBITDAR, was 11x at March 31, 2016, compared with 6.7x in 2014. The company's total adjusted debt was BRL16.9 billion at March 31, 2016. This debt includes BRL7.9 billion in on-balance- sheet debt and BRL9.0 billion in off-balance-sheet obligations related to operating leases with combined rental payments of around BRL1.2 billion during LTM March 2016. Fitch expects the company's adjusted gross leverage to be in the range of 10x to 12x during 2016. Liquidity under Pressure GOL's liquidity is viewed as weak. GOL would need to improve its operational performance, minimize capex levels and continue refinancing its debt to avoid a material decline in its liquidity position during the next few quarters. GOL's readily available cash, measured as total cash plus marketable securities, was BRL1.4 billion as of March 31, 2016. The company has debt principal payments due of approximately BRL439 million and BRL696 million during the second half of 2016 and 2017, respectively. During LTM March 2016 the company's FCF generation was negative BRL1.7 billion, resulting in a FCF margin (LTM FCF/LTM revenues) of negative 16.7%. The company's cash flow from operations for 2016 is forecasted to be negative at around BRL621 million, reflecting the company's limited capacity to cover cash interest expenses and cash taxes, estimated at levels around BRL738 million and BRL246 million, respectively. Without a recovery in the company's operational performance, Fitch believes GOL's 2016 - 2017 FCF generation will remain negative and will continue to pressure its liquidity position. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for GOL's ratings include: -- 2016 consolidated RPK declines of around 12.5%; -- 2016 consolidated ASK declines around 6% to 8%; -- 2016 EBIT margin negative of around 2%; -- 2016 FCF margin negative of around 10%; -- Minimum levels of net capital expenditure levels below BRL100 million in 2016; -- 2016 Coverage ratio, EBITDAR/Gross Interest Expense + Rents), around 0.7x; -- Gross adjusted financial leverage (total adjusted debt/EBITDAR) at levels around 11x by the end of 2016. RATING SENSITIVITIES Negative Rating Action: Future actions that may individually or collectively cause Fitch to take a negative rating action include: -- Weaker than expected operational performance in 2016; -- 2016 FCF margin persistently below negative 13%; -- Readily available cash, measured as total cash plus marketable securities, consistently declining; Positive Rating Action: Fitch could consider a positive rating action if GOL generates operational and FCF margins consistently above than those levels incorporated in the ratings, resulting in lower financial adjusted gross leverage while keeping current liquidity profile. FULL LIST OF RATING ACTIONS Fitch has taken the following ratings: Gol Linhas Aereas Inteligentes S.A. (GOL): -- Long-Term Foreign and Local-Currency Issuer Default Ratings ( IDRs) upgraded to 'CC' from 'RD'; -- Long-Term National Rating upgraded to 'CC(bra)' from 'RD(bra)'; -- US$200 million perpetual bonds affirmed at 'C/RR5'. VRG Linhas Aereas S.A. (VRG): -- Long-Term Foreign and Local-Currency IDRs upgraded to 'CC' from 'RD; -- Long-term national rating upgraded to 'CC(bra)' from 'RD(bra)'. GOL Finance, a company incorporated with limited liability in the Cayman Islands: -- US$225 million of senior unsecured notes due 2017 affirmed at 'C/RR5'; -- US$300 million of senior unsecured notes due 2020 affirmed at 'C/RR5'; GOL LuxCo S.A.: -- US$200 million of senior unsecured notes due 2023 affirmed at 'C/RR5'; -- US$325 million of senior unsecured notes due 2022 affirmed at 'C/RR5'; -- US$14.1 million of senior secured notes due 2018 upgraded to 'CCC-/RR3' from 'CC/RR3; -- US$41.3 million of senior secured notes due 2021 upgraded to 'CCC-/RR3' from 'CC/RR3; -- US$18.1 million of senior secured notes due 2028 upgraded to 'CCC-/RR3' from 'CC/RR3; OI SA: Judge May Soon Force Vote on Board Change, Lawyer Says ------------------------------------------------------------- Ana Mano at Reuters reports that the judge overseeing the bankruptcy protection of Brazilian phone carrier Oi SA could force the company to call a shareholder vote on proposed changes to its board as soon as this week, according to a lawyer for an activist shareholder. The ruling should come after the judge hears opinions from PricewaterhouseCoopers, the in-court administrator in Oi's bankruptcy, and the public prosecutor's office, Joao Mendes de Oliveira Castro, legal advisor to Oi's minority shareholder Societe Mondiale, said in a phone interview, according to Reuters. The investment fund recently acquired 7 percent of the Oi's voting shares and is demanding the replacement of five board executives linked to Portugal-based Pharol SGPS, formerly Portugal Telecom SGPS SA, which owns 27.5 percent of the company's voting shares, according to its website, Reuters notes. Oi and a court representative declined to comment on the possible ruling by Judge Fernando Viana. Brazil's largest fixed-line operator filed last month for protection from creditors on a record BRL65.4 billion ($19.9 billion) of bonds, bank debt and operating liabilities, suffering from stiff competition and years of shareholder spats, the report relays. Differences on Oi SA's board spoiled efforts to negotiate an out- of-court restructuring, triggering the departure of its chief executive and contributing to tensions among shareholders, sources said at the time, the report relays. Societe Mondiale, run by Brazilian entrepreneur Nelson Tanure, is open to negotiations with other minority shareholders to promote board changes, Castro said, the report discloses. Anatel, the industry watchdog, told Societe Mondiale in a statement that "no prior authorization" is required to elect new board members for Oi, the report notes. The statement, seen by Reuters and submitted as evidence to the court by Societe Mondiale, said Anatel would weigh in regarding any new board members before they take office, the report adds. About Oi SA Headquartered in Rio de Janeiro, and operating almost exclusively within Brazil, the Oi Group provides services like fixed-line data transmission and network usage for phones, internet, and cable, Wi-Fi hot-spots in public areas, and mobile phone and data services, and employs approximately 142,000 direct and indirect employees. Ojas N. Shah filed a Chapter 15 petition for Oi S.A. (Bankr. S.D.N.Y. Case No. 16-11791), Oi Movel S.A. (Bankr. S.D.N.Y. Case No. 16-11792), Telemar Norte Leste S.A. (Bankr. S.D.N.Y. Case No. 16-11793), and Oi Brasil Holdings Cooperatief U.A. (Bankr. S.D.N.Y. Case No. 16-11794) on June 21, 2016. The case is assigned to Judge Sean H. Lane. The Chapter 15 Petitioner is represented by John K. Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP, in New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida. ========================== C A Y M A N I S L A N D S ========================== ATTALUS ACTIVE: Shareholders' Final Meeting Set for Aug. 16 ----------------------------------------------------------- The shareholders of Attalus Active Benchmark Opportunities will hold their final meeting on Aug. 16, 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: Michael Saville c/o Prudence Pryce 10 Market Street Camana Bay P.O. Box 765 Grand Cayman KY1-9006 Cayman Islands Telephone: +1 (345) 949 7100 Facsimile: +1 (345) 949 7120 BOW STREET: Shareholder to Hear Wind-Up Report on Aug. 9 -------------------------------------------------------- The shareholder of Bow Street Offshore Fund, Ltd. will hear on Aug. 9, 2016, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bow Street LLC c/o Sophia Leavett 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 GLOBAL FOCUSED: Members' Final Meeting Set for Aug. 12 ------------------------------------------------------ The members of Global Focused Value International Fund, Ltd. will hold their final meeting on Aug. 12, 2016, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes c/o Jo-Anne Maher Telephone: (345) 814 9255 Facsimile: (345) 949 4647 Erik Weir 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands GOLDMAN SACHS EVENT: Members' Final Meeting Set for Aug. 11 ----------------------------------------------------------- The members of Goldman Sachs Event Risk Premium Opportunities Fund Offshore Ltd. will hold their final meeting on Aug. 11, 2016, at 11:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GOLDMAN SACHS GLOBAL: Members' Final Meeting Set for Aug. 11 ------------------------------------------------------------ The members of Goldman Sachs Global Opportunities Select Offshore, Ltd. will hold their final meeting on Aug. 11, 2016, at 11:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GOLDMAN SACHS PROPRIETARY: Members' Final Meeting Set for Aug. 11 ----------------------------------------------------------------- The members of Goldman Sachs Proprietary Loan Access Fund Ltd. will hold their final meeting on Aug. 11, 2016, at 11:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GOLDMAN SACHS STRUCTURED: Members' Final Meeting Set for Aug. 11 ---------------------------------------------------------------- The members of Goldman Sachs Structured Emerging Markets Equity Fund, Ltd. will hold their final meeting on Aug. 11, 2016, at 11:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 HARRISON CORP: Shareholders' Final Meeting Set for Aug. 11 ---------------------------------------------------------- The shareholders of Harrison Corporation will hold their final meeting on Aug. 11, 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: Robert C. Muffly 299 Park Avenue, New York, NY 10171 United States Telephone: (212) 888-3033 e-mail: rmuffly@beckerglynn.com INVEST AD: Shareholders' Final Meeting Set for Aug. 31 ------------------------------------------------------ The shareholders of Invest AD - Iraq Opportunity Fund will hold their final meeting on Aug. 31, 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: Ken Stewart c/o Apex Fund Services (Cayman) Limited 161a Artillery Court, P.O. Box 10085 Grand Cayman KY1 1001 Cayman Islands KEMNAY VALTURA: Members' Final Meeting Set for Aug. 19 ------------------------------------------------------ The members of Kemnay Valtura Limited will hold their final meeting on Aug. 19, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mahesh Nagendram c/o Scotiabank & Trust (Cayman) Ltd. 6 Cardinall Avenue P.O. Box 501 Grand Cayman KY1-1106 Telephone: 345 914 6294 LIBERTY HARBOR: Members' Final Meeting Set for Aug. 11 ------------------------------------------------------ The members of Liberty Harbor Convex Strategies, Ltd. will hold their final meeting on Aug. 11, 2016, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 PERGAMON MASTER: Shareholders' Final Meeting Set for Aug. 9 ----------------------------------------------------------- The shareholders of Pergamon Master Fund, Ltd. will hold their final meeting on Aug. 9, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cathy Fleming 590 Madison Avenue, 30th Floor New York, NY 10022 PERGAMON OFFSHORE: Members' Final Meeting Set for Aug. 9 -------------------------------------------------------- The members of Pergamon Offshore Fund, Ltd. will hold their final meeting on Aug. 9, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cathy Fleming 590 Madison Avenue, 30th Floor New York, NY 10022 WP X INVESTMENTS: Members' Final Meeting Set for Aug. 12 -------------------------------------------------------- The members of WP X Investments I Ltd. will hold their final meeting on Aug. 12, 2016, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited c/o Jo-Anne Maher 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 814-9255 Facsimile: (345) 949-4647 ============= J A M A I C A ============= JAMAICA: OKs US$4MM Repayment to Venezuela Under PetroCaribe Deal ----------------------------------------------------------------- RJR News reports that Jamaica's Cabinet has approved a reactivation of the trade compensation mechanism under bilateral arrangements with Venezuela. This is valued at US$4 million. Under the PetroCaribe Agreement, loan repayments to Venezuela may be made by way of goods and services, valued at preferential rates, according to RJR News. This is to promote the exchange of goods and services and to build domestic production capacity and trade relations, the report notes. The arrangement will be coordinated through the Petrocaribe Development Fund, the report adds. * * * 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 =========== CEMEX SAB: Reports Second Quarter 2016 Results ---------------------------------------------- Reuters reports that CEMEX, S.A.B. de C.V.'s net income for second quarter 2016 increased 81% on a year-over-year, reaching $205 million. Net sales in operations in Mexico increased 7% in second quarter of 2016 to $796 million, according to Reuters. The report notes that operating earnings before other expenses, net, in second quarter increased 11% and 24% on a like-to-like basis to $539 million The report relays that operating EBITDA increased 6% during second quarter to $771 million The report says that consolidated net sales reached $3.7 billion during second quarter, an increase of 6% on a like-to-like basis adjusting for currency. Operating EBITDA increased by 16% on a like-to-like basis during quarter, the report notes. The report relays that total debt plus perpetual notes decreased by $1,151 million during quarter. Cemex's operations in United States reported net sales of $1,036 million in second quarter of 2016, up 3%, the report notes. Controlling interest net income improved 81% during second quarter of 2016 to $205 million from $114 million in second quarter 2015, the report adds. As reported in the Troubled Company Reporter-Latin America on July 27, 2016, Fitch Ratings affirmed CEMEX, S.A.B. de C.V.'s (CEMEX) Long-Term Issuer Default Rating (IDR) at 'BB-'. Fitch has also upgraded the company's National Scale Long-Term Rating to 'A(mex)' from 'A- (mex)' and affirmed the company's National Scale Short-Term rating at 'F2 (mex)'. The Rating Outlook remains Stable. ====================== P U E R T O R I C O ====================== AEROPOSTALE INC: Court to Take Up Exit Plan on August 23 -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York is set to hold a hearing on August 23 to consider the plan proposed by Aeropostale Inc. to exit Chapter 11 protection. The hearing will take place at the U.S. Bankruptcy Court, One Bowling Green, New York. Objections to the plan must be filed no later than August 12. Aeropostale on July 15 filed a restructuring plan, which proposes to sell almost all assets of the company and its affiliates. An auction is scheduled for August 22. The proceeds from the sale will first be used to pay a group of lenders led by Crystal Financial LLC that provided a loan to get Aeropostale through bankruptcy. After the payment, the company will use the proceeds to fund wind-down costs of the bankruptcy cases and pay creditors under the plan. Under the proposed plan, each general unsecured creditor in Class 5 will receive a pro rata share of available cash. These creditors hold a total of $110 million to $340 million in claims, according to the disclosure statement detailing the plan. A copy of the disclosure statement is available for free at https://is.gd/aTPqZT About Aeropostale Inc. Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. from Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016 the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc. has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc. and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schuback as senior vice president, general counsel and secretary. The Debtors listed total assets of $354.38 million and total debts of $390.02 million as of Jan. 30, 2016. The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc. as restructuring advisor; Stifel, Nicolaus & Company, Inc. and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11 appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee hired Pachulski Stang Ziehl & Jones LLP as counsel. ECRA GROUP: Hires Luis D. Flores Gonzalez as Legal Counsel ---------------------------------------------------------- ECRA Group Corp. seeks permission from the U.S. Bankruptcy Court for the District of Puerto Rico to employ The Law Offices of Luis D. Flores Gonzalez as its legal counsel. The Debtor needs legal counsel and representation to fully comply with its duties. Counseling and representation will be necessary in connection with the filing of Schedules, the Statement of Financial Affairs filed under Chapter 11, the payment plan that will be proposed, the examination of the claims filed, the Disclosure Statement and other related matters. The Law Offices of Luis D. Flores Gonzalez will be paid at these hourly rates: Luis D. Flores Gonzalez $200 Legal Assistants $60 Paraprofessionals $40 The firm has received $5,000 as retainer. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Luis D. Flores Gonzalez assured the Court that his firm is a "disinterested person" as the term is defined in Sections 101(14) and 327 of the Bankruptcy Code, and does not represent any interest adverse to the Debtor and its estate. The Law Offices of Luis D. Flores Gonzalez may be reached at: Luis D. Flores Gonzalez The Law Offices of Luis D. Flores Gonzalez 80 Georgetti, Suite 202 Rio Piedras, PR 00925 Tel: (787)758-3606 E-mail: ldfglaw@coqui.net ldfglaw@yahoo.com About ECRA Group, Corp. ECRA Group, Corp. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-04651) on June 10, 2016. Luis D. Flores Gonzalez at The Law Offices of Luis D. Flores Gonzalez as bankruptcy counsel. HYPERBARICS AND WOUND: Hires Heriberto Acevedo as Auditor --------------------------------------------------------- Hyperbarics and Wound Care Centers of Puerto Rico, Corp. seeks authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Heriberto Reguero Acevedo as the Certified Public Accountant to act as external auditor and business consultant of the Debtor. The Debtor requires the external accountant to: (a) provide assistance to the Debtor in preparing the Monthly Reports of Operation; (b) prepare the necessary financial statements; (c) assist the Debtor in preparing the cash flow projections and or any other projection needed for the Disclosure Statement; (d) assist the Debtor in any/all financial and accounting pertaining to, or in connection with the administration of the estate; (e) assist the Debtor in the preparation and filing of federal, state and municipal tax returns; and (f) assist the Debtor in any other assignment that might be properly delegated by management; The external accountant will be paid at these hourly rates: Heriberto Reguero Acevedo $150 Associates $75 Mr. Acevedo will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Acevedo assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The external accountant can be reached at: Heriberto Reguero Acevedo 105 Avenue, Borinquen Base Ramey Aguadilla, PR 00603 About Hyperbarics Hyperbarics and Wound Care Centers of Puerto Rico Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-04810) on June 16, 2016. LINCOLN RESTAURANTS: Hires Arvelo & Vazquez as Counsel ------------------------------------------------------ Lincoln Restaurants Incorporated asks permission from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Arvelo & Vazquez, P.S.C. as counsel. Arvelo & Vazquez will be paid at these hourly rates: Pedro E. Vazquez Melendez $150 Partners/Associates $125 Paralegal $80 Arvelo & Vazquez will also be reimbursed for reasonable out-of-pocket expenses incurred. Arvelo & Vazquez received a $5,000 retainer from the Debtor. Pedro E. Vazquez Melendez, principal of Arvelo & Vazquez, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Arvelo & Vazquez can be reached at: Pedro E. Vazquez Melendez, Esq. ARVELO & VAZQUEZ, P.S.C. P.O. Box 9024025 San Juan, PR 00902-4025 Tel: (787) 721-7255 Fax: (787) 722-7255 E-mail: quiebras@gmail.com Lincoln Restaurants Incorporated, filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-05006) on June 23, 2016. The Debtor is represented by Pedro E. Vazquez Melendez, Esq. PUERTO RICO: Towns to Share Services, Cut Costs Amid Crisis ----------------------------------------------------------- Associated Press reports that Puerto Rico's governor has signed a bill letting the island's 78 municipal governments share administrative services as a cost-saving measure amid a deep fiscal crisis. The measure amends a 1991 law to let local governments set up agreements between two or more municipalities to cooperate on finance, public works and other areas, instead of each town having a department for each service, according to Associated Press. Gov. Alejandro Garcia Padilla said it is expected to result in substantial savings, the report notes. About $2 billion is spent each year to run the U.S. territory's town governments, which employ 56,400 workers, the report relays. Island mayors have backed the new measure as Puerto Rico struggles with nearly $70 billion in debt and a prolonged economic downturn, the report adds. * * * The Troubled Company Reporter-Latin America reported on June 15, 2016, that the U.S. Supreme Court struck down a Puerto Rico law that would have let its public utilities restructure their debt over the objection of creditors leaving it to Congress to help the island resolve its fiscal crisis. Siding with bondholders challenging the law, the court ruled 5-2 that the measure was barred under federal bankruptcy law. Justice Clarence Thomas, writing for the majority in the 5-to-2 decision, said the law was at odds with the federal bankruptcy code, which bars states and lower units of government from enacting their own versions of bankruptcy law. Puerto Rico is struggling with $72 billion in debt and has argued that it needs to restructure at least some of it under Chapter 9, the part of the bankruptcy code for insolvent local governments. But Puerto Rico is not permitted to do so, because Chapter 9 specifically excludes it. The federal law, Justice Thomas wrote, "bars Puerto Rico from enacting its own municipal bankruptcy scheme to restructure the debt of its insolvent public utilities." Chief Justice John G. Roberts Jr. and Justices Anthony M. Kennedy, Stephen G. Breyer and Elena Kagan joined him. Consequently, Puerto Rico opted to default on $911 million in constitutionally guaranteed debt, or roughly half of the $2 billion in principal and interest that came due July 1, EFE News reported. The reported further noted that Puerto Rico enacted a debt moratorium due to liquidity restraints -- a move that coincided with a new U.S. law signed by President Obama that installs a financial control board to restructure the island's debt and provides a retroactive stay on lawsuits by bondholders. On July 11, 2016, the TCR-LA reported that S&P Global Ratings has downgraded the Commonwealth of Puerto Rico's general obligation secured debt to 'D' (default) from 'CC' following the commonwealth's default. On July 7, 2016, Fitch Ratings has downgraded the Commonwealth of Puerto Rico's Long-Term Issuer Default Rating (IDR) to 'RD' from 'C' and general obligation (GO) bond rating to 'D' from 'C' following the payment default on certain GO bonds on July 1, 2016. Both ratings are removed from Rating Watch. Ratings on securities that have not defaulted will remain at 'C' until the point of default. The ratings on non-defaulted bonds remain on Rating Watch Negative. ================= V E N E Z U E L A ================= VENEZUELA: May be on The Brink of Total Collapse, NY Post Opines ---------------------------------------------------------------- New York Post noted in an editorial piece that Venezuela may be on the brink of total collapse. New York Post notes that Venezuela was praised by celebrities when Hugo Chavez led the country until his death in 2013, but things have grown worse under Chavez's handpicked successor, Nicolas Manduro. Venezuela is beset by severe food shortages, riots in the streets and hyperinflation that's closing in on 700 percent, New York Post relays. World oil prices have plummeted and Venezuela relies on oil for 95 percent of its income, the report discloses. Agriculture was neglected as Chavez and Maduro placed all their economic chips on crude and elected to import goods from abroad while spending on social programs that rallied the poor behind the government, the report relays. But now Venezuela has no cash to import food or other essentials. And because Chavez nationalized so much industry, it has no private sector to compensate, New York Post discloses. New York Post cites that at present, Maduro has issued an executive decree that subjects all workers to being forced to work for 60 days (or more, "if circumstances merit") in the fields, growing badly needed food. The move, New York Post opines, makes no sense economically. Morally, New York Post says, it's barely one step up from government-sanctioned slavery. As reported in the Troubled Company Reporter-Latin America on July 5, 2016, Fitch Ratings affirmed Venezuela's Long-Term Foreign-and Local-Currency Issuer Default Ratings (LT FC/LC IDR) at 'CCC'. Fitch has also affirmed the sovereign's Short-Term Foreign Currency (ST FC) IDR at 'C' and country ceiling at 'CCC'. *********** 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 * * *