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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, September 6, 2016, Vol. 17, No. 176
Headlines
A R G E N T I N A
NACION REASEGUROS: Fitch Assigns 'B' IFS Rating; Outlook Stable
NACION SEGUROS: Fitch Assigns 'B' IFS; Outlook Stable
B R A Z I L
BANCO BRADESCO: Fitch Affirms 'BB+' IDR; Outlook Negative
BANCO SANTANDER: Fitch Affirms 'BB+' IDR; Outlook Negative
CAMARGO CORREA: Fitch Says Divestiture of CPFL a Credit Positive
ITAU UNIBANCO: Fitch Affirms 'BB+' IDR; Outlook Negative
SANTANDER BRASIL: Fitch Affirms 'BB+' IDR; Outlook Negative
C O S T A R I C A
BANCO INTERNACIONAL: Fitch Affirms 'BB+' IDR; Outlook Remains Neg.
P U E R T O R I C O
AEROPOSTALE INC: Joint Venture Chosen as Winner Over Sycamore
AEROPOSTALE INC: Sycamore, Joint Venture Bidding on Retailer
AEROPOSTALE INC: Gets Bid from Mall Group to Keep 229 Stores Open
CRISTALEX INC: Taps MRO Attorneys as Legal Counsel
SAN JUAN PROPERTIES: Hires Davila Law Offices as Counsel
SOCIEDAD EL PARAISO: Exit Plan to Pay $42K to Unsecured Creditors
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A R G E N T I N A
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NACION REASEGUROS: Fitch Assigns 'B' IFS Rating; Outlook Stable
---------------------------------------------------------------
Fitch Ratings has assigned a 'B' Insurer Financial Strength (IFS)
rating to Nacion Reaseguros S.A. The Rating Outlook is Stable.
KEY RATING DRIVERS
Nacion Reaseguros S.A.'s ratings reflects Fitch's expectation that
the company would receive support from its parent, Banco de la
Nacion Argentina (BNA), should the need arise. This view is a
result of the reinsurance company's strategic importance to the
banking group, high level of management and operational
integration, and strong synergies with the parent. It also
reflects that any required support would be immaterial relative to
the ability of BNA to provide it, given the relatively small size
of the insurance operations. BNA is a state-owned bank and its
operations are guaranteed by the Argentinian Government. It is
one of the largest banks in the country, and together with the
insurance subsidiaries, plays an important social role while
supporting the government's policies. Fitch rates Argentina's
Long-Term Foreign Currency IDR at 'B'/Stable Outlook.
Nacion Reaseguros had an equity base of ARS219 million in
March 2016, 489% above minimum regulatory capital requirements.
The bulk of capital consists of paid-in capital (82%), which is
sufficient to support the company's growth. The company, like
other state-owned enterprises, has a conservative dividend policy
which in the future will benefit the sustained growth of its
capital base.
Nacion Reaseguros, similar to competitors in the Argentine
reinsurance industry, has a short financial history that dates
back to the end of 2011, when regulations were enacted allowing
only companies domiciled in Argentina to operate as reinsurers.
As of March 2016, the company held a meaningful share of
Argentina's diversified reinsurance market, with 4.3% of the
industry's written premiums. Nacion Reaseguros is a leading
reinsurer in such lines as fire, technical, and aviation hull
insurance.
In March 2016, the company reported a net income of ARS36 million,
for a return on assets and a return on equity of 10.4% and 24.4%,
respectively. While its combined ratio remains highly competitive
(50.1%), Nacion Reaseguros' net income is mainly explained by the
large volume of financial income. In March 2016, financial income
represented 1.3x of net income, originating primarily from
government securities or infrastructure-focused mutual funds
managed by the state.
The company's investment portfolio has direct ties to the
Argentine government, consisting of short- and medium-term
investments from the Central Bank, as well as quotas in Pellegrini
Investment Fund, also linked to the Argentine government.
Overall, the investments linked to the state account for around
80% of the portfolio.
Nacion Reaseguros accepts premiums only from its related company
Nacion Seguros. In Fitch's opinion, Nacion Reaseguros'
retrocession program is adequately diversified in a large number
of retrocessionaires, using proportional quota share and no-
proportional coverage by line of products. In March 2016, the
company's maximum per-event exposure represented 13% of its
equity.
RATING SENSITIVITIES
The Outlook is Stable. Any changes in Fitch's evaluation of BNA's
capacity and/or its willingness to support Nacion Reaseguros,
would result in changes to the reinsurer's ratings.
NACION SEGUROS: Fitch Assigns 'B' IFS; Outlook Stable
-----------------------------------------------------
Fitch Ratings has assigned a 'B' Insurer Financial Strength (IFS)
rating to Nacion Seguros S.A. The Rating Outlook is Stable.
KEY RATING DRIVERS
Nacion Seguros S.A.'s rating reflects Fitch's expectation that the
company would receive support from its parent, Banco de la Nacion
Argentina (BNA), should the need arise. This view is a result of
the insurance company's strategic importance to the banking group,
high level of management and operational integration, and strong
synergies with its parent. It also reflects the fact that any
required support would be immaterial relative to the ability of
BNA to provide it, given the relatively small size of the
insurance operations. BNA is one of the largest banks in the
country, and together with its insurance subsidiaries, plays an
important social role while supporting the government's policies.
Fitch rates Argentina's Long-Term Foreign Currency IDR at
'B'/Stable Outlook.
As of March 2016, Nacion Seguros' leverage (net
liabilities/equity) reached 2.5x, which is lower than the
Argentine industry average of 3.8x, partly reflecting its focus on
short-term liabilities. Similarly, operating leverage (earned
retained premiums/equity) is also relatively limited at 1.9x,
reflecting the conservative policy of retaining total annual net
income to strengthen the capital base.
The company focuses on insurance segments targeting the mass
market, such as auto insurance and group life insurance, which, as
of March 2016, represented 53% of written premiums, followed by
technical and fire segments, which made up 34% of total written
premiums. The company benefits significantly from its
relationship with BNA, which has an extended branch network
throughout the country.
Nacion Seguros posted positive results of ARS584 million as of
March 2016, a 59% increase over the previous period. The positive
net results were driven by the financial income earned on
investments, reflected in a combined ratio of 102.1% and an
operating ratio of 67.9%. As of March 2016, the entity exhibited
a highly competitive return on both equity and assets of 51.4% and
14.4%, respectively.
Due to local regulations that restrict investments outside the
country and in foreign currency, the investment portfolio is
concentrated in local securities denominated in Argentine pesos.
As of March 2016 the investment portfolio remains highly
concentrated in government securities, which correlate its
investment risk with Argentina's sovereign risk.
Nacion Seguros has a meaningful market share within the Argentine
insurance industry, making up 2.8% of the premiums as of March
2016. The company is one of the leaders in auto, group life,
fire, and technical insurance branches. In addition, the company
benefits from the brand name of the parent locally, which supports
its positioning in the industry.
As of March 2016, the company had ceded 32.7% of its premiums
(primarily technical and fire insurance premiums) to Nacion
Reaseguro S.A., presenting a maximum catastrophic loss severity
limited at 0.2% of its capital. In Fitch's opinion the
reinsurance coverage is adequate, though concentrated in only one
reinsurer.
RATING SENSITIVITIES
The Outlook is Stable. Any changes in Fitch's evaluation of BNA's
capacity and/or its willingness to support Nacion Seguros, would
result in changes to the insurer's ratings.
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B R A Z I L
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BANCO BRADESCO: Fitch Affirms 'BB+' IDR; Outlook Negative
---------------------------------------------------------
Fitch Ratings has affirmed the ratings for Banco Bradesco S.A.'s
including the Long-Term Foreign and Local Currency IDRs at
'BB+'/Outlook Negative.
KEY RATING DRIVERS
VR, IDRs, NATIONAL RATINGS AND SENIOR DEBT
Bradesco's Long-Term Foreign- and Local-Currency IDR are driven by
the bank's 'bb+' Viability Rating (VR) and reflects its consistent
performance throughout the economic cycles, even during periods of
economic crises; the solid franchise in the local market;
conservative risk administration; diversified revenue and funding
bases; strong liquidity; adequate asset quality; and good
capitalization.
Bradesco's VR is constrained by the Brazil's operating
environment. Its VR was downgraded some notches since October
2015, following the downgrades of Brazil's sovereign rating.
Bradesco's IDRs are one notch above Brazil's rating and are
constrained by the country ceiling (BB+), reflecting the bank's
very strong credit profile.
The Negative Outlook for the banks' Long-Term IDR mirrors the
Negative Outlook on the sovereign's IDRs. The Rating Outlook for
the National Long-Term Rating is Stable.
On June 8, 2016 the authorities approved the acquisition, by
Bradesco, of HSBC Bank Brasil S.A. - Banco Multiplo (HSBC Brasil),
the sixth largest commercial bank in the country. In Fitch
Ratings' opinion, this transaction is complementary with the
bank's current business model, mainly in high net-worth and in the
corporate market, although the bank paid a high price for the
acquisition. Such an acquisition should add between 2% and 3%
market share in terms of assets, credit and deposits, thus
improving its already strong franchise and competitive position.
As with any merger and acquisition transaction, the business model
and IT integration will be essential, as well as the retention of
clients and professionals, but Bradesco has capacity to overcome
these challenges, given the banks' successful record with other
acquisitions.
Bradesco has achieved or has been close to achieving its credit,
revenue and result goals, showing the flexibility to revise them
during adverse economic scenarios. This view has prevailed since
2012, given the country's weak operating environment. Bradesco
has a relatively low and very well-controlled risk appetite,
especially with credit, including its exposure to private
securities.
Bradesco's profitability is still better than that of local retail
banks' averages, with ROAE and ROAA of 18.7% and 1.5%,
respectively, since 2012, despite the increase credit costs and
the lower credit portfolio growth. The bank has adopted a
strategy of controlling credit expansion in traditional business
segments and higher exposure to lower risk segments, which should
minimize pressures from the current operating environment
challenges.
As with local peers, Bradesco's asset quality indicators have been
weakening since 2014, with non-performing loans (NPLs) of 4.6% in
June 2016 from 4.1% in December 2015 and 3.5% in 2014, following
the recessive operating environment. However, the bank has
increased credit provisions, and loan loss reserves covered a high
201%, with BRL6.4 billion provisioning above local rules in June
2016. The bank's robust revenue-generating capacity and
conservative level of provisions should provide it with strong
loss absorption capacity.
Bradesco's ample client deposit base, as well as its conservative
funding policies, ensures a strong liquidity position. The
adequate Fitch core capital (FCC, 11.9% in June 2016) ratio has
increased since 2013, following the gradual implementation of
Basel III local rules, which should not be a challenge for the
bank. The regulatory capital has remained stable (17.7% in June
2016).
SUPPORT RATING AND SUPPORT RATING FLOOR
Bradesco's Fitch Sovereign-based Support Rating of '3' and Support
Rating Floor of 'BB-', reflect the bank's ample size and domestic
systemic importance, but also indicates the moderate probability
of support due to uncertainties surrounding the the capacity or
willingness of the Brazilian government to provide support.
Bradesco is systemically important for the country, as it is the
second largest private bank. It holds high market share in
various domestic financial system segments, with approximately 11%
of total assets and 9% of the financial system deposits in
December 2015 and plays a fundamental role in the private pension
system and insurance sector.
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
The IDR of its subordinated notes is two notches below its VR,
reflecting the regular notching applied by Fitch to hybrid
securities with coupon deferral mechanisms. More specifically,
the securities are notched once due the higher loss severity
derived from its subordinated nature and another notch due to
incremental non-performance risk imposed by the ability to defer
coupon payments when the minimum regulatory capital ratio is
breached.
RATING SENSITIVITIES
IDRs, SENIOR AND SUBORDINATED DEBT
Bradesco's IDRs and debt ratings are sensitive to a change in
Fitch's assumptions around specific issuer rating factors and
rating factors affecting the sovereign. The Negative Outlook on
the IDRs reflects Fitch's current negative view on the operating
environment for Brazilian banks, which in turn is heavily
influenced by the Negative Outlook on Brazil's Sovereign rating.
Bradesco's ratings could be downgraded if the sovereign's ratings
are further downgraded. The Rating Outlook for the sovereign is
negative.
NATIONAL RATINGS
As the National Ratings are at the highest possible rating on
Fitch's Rating Scale, a further upgrade would not be possible,
thus the Rating Outlook for the National Rating is Stable. These
ratings could only be downgraded in the event of Bradesco being
rated at or below the sovereign rating on the international scale.
VR
Bradesco's VRs are sensitive to a change in Fitch's assumptions
regarding the bank's rating factors. Bradesco's VR could be
negatively affected in case of loss absorption capacity reduction,
or sustained FCCs lowering to less than 9% and decline in
provisioning ratios from current levels. ROAA below 1.25% and
NPLs above 6%, for a sustained period, could also lead to a
downgrade of the bank's ratings.
SUPPORT RATING AND SUPPORT RATING FLOOR
The SR is potentially sensitive to any change in assumptions
around the propensity or ability of the sovereign to provide
timely support to the bank.
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
Bradesco's subordinated debt ratings are broadly sensitive to the
same considerations that might affect bank's VR.
Fitch has affirmed these ratings:
Banco Bradesco
Long-term Foreign and Local-Currency IDR at 'BB+'; Outlook
Negative;
Short-term Foreign and Local-Currency IDR at 'B';
Viability Rating at 'bb+';
Support Rating at '3';
Support Rating Floor at 'BB-';
National Long-term Rating at 'AAA(bra)'; Outlook Stable;
National Short-term Rating at 'F1+(bra)'.
Subordinated Notes due September 2019, January 2021 and March
2022
Long-term Foreign-Currency Rating at 'BB-'.
BANCO SANTANDER: Fitch Affirms 'BB+' IDR; Outlook Negative
----------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign Currency Issuer
Default Rating of Banco Santander Brasil S.A. at 'BB+'/Outlook
Negative. Fitch has also affirmed the bank's other ratings and
the National Ratings of Santander Leasing S.A. - Arrendamento
Mercantil (Santander Leasing) at 'AAA(bra)'/Outlook Stable.
KEY RATING DRIVERS
IDRS, SUPPORT RATING, NATIONAL RATINGS AND SENIOR DEBT
Santander Brasil's IDRs are driven by the support that Fitch
believes the bank would receive from its parent, Banco Santander
S.A. Spain (SAN), should it be needed.
Fitch's affirmation of Santander Brasil's Support rating at '3'
reflects Fitch's view that there is high probability of support to
the bank from SAN, if needed. Fitch views the Brazilian
subsidiary as very important for SAN for earnings diversification;
Santander Brasil shares the same brand and is highly integrated
with its parent, having contributed 20%-25% of the group's
consolidated net income over the past few years.
Currently, the IDRs of Santander Brasil is constrained by the
Sovereign Rating of Brazil. As such its Local Currency LT IDR of
'BBB-' is limited by the maximum uplift of two notches above the
sovereign rating, while the FC LT IDR of 'BB+' is equalized to and
limited by Brazil's Country Ceiling of 'BB+'.
The unfavorable operating environment for Brazil has reduced the
growth prospects of Santander Brazil along with the rest of the
country's financial industry. Even so, the Brazilian subsidiary
is expected to continue contributing significantly to the group's
earnings. Given the relative size of Santander Brasil to SAN,
Fitch adopts a one-notch differential even though the Brazilian
subsidiary is considered core to SAN.
Santander Brasil's National Ratings reflect the relative position
of Santander among other Brazilian issuers and these are at the
highest level in the local scale, since the bank is rated on the
international scale above the Brazil's sovereign rating.
VR
Fitch affirmed Santander Brasil's VR at 'bb', reflecting its
strong capitalization, extensive local franchise, and its
diversified, self-funded profile, as the bank's funding is mostly
sourced within its home market. Santander Brasil does not rely on
the parent for funding its day-to-day business. Its management
team and board of directors enjoy a high degree of operating
independence.
Santander Brasil's VR also reflects the challenges to improve
profitability, especially under an unfavourable operating
environment and macroeconomic scenario. The bank's profitability
still does not compare as well to that of its peers. A more
contained risk appetite has resulted in improvements in the bank's
overall risk management function and on asset quality indicators,
which now are more aligned with those of its domestic private-
sector peers' VR.
The bank's diversified funding, supported by its large branch
network and client base, enables the bank to remain liquid and
independent. Despite a special dividend of BRL6 billion to
existing shareholders in 2014, Santander Brasil's capital metrics
still compare well to those of its peer group.
Santander Leasing
Santander Leasing's ratings are driven by potential support from
Santander Brasil, since Fitch views the leasing subsidiary as an
integral part of Santander Brasil's franchise as it shares
management, policies and strategies with its direct parent. As a
result, Santander Leasing's National scale ratings are equalized
with those of Santander Brasil.
The National ratings of Santander Leasing's legacy Tier 2
subordinated issuances are one notch below the National ratings of
Santander Brasil, as they incorporate Fitch's loss severity
assumption in case of liquidation.
RATING SENSITIVITIES
IDRS, SUPPORT RATINGS, NATIONAL RATINGS AND SENIOR DEBT
Changes in the willingness and capacity of SAN to provide support
to Santander Brazil may result in changes in the IDRs, National
Ratings and Support Rating of Santander Brasil. Santander
Brasil's Foreign Currency IDR is constrained by Brazil's country
ceiling ('BB+').
Santander Brasil's IDRs and debt ratings are also sensitive to a
change in Fitch's assumptions around rating factors affecting the
sovereign. The Negative Outlook on the IDRs reflects Fitch's
current negative view on the operating environment for Brazilian
banks and mirrors the Negative Outlook on Brazil's Sovereign
rating.
Changes on Brazil's Sovereign Rating could result in changes on
Santander Brasil's IDRs,
National Ratings could be revised in case of changes on the
Sovereign Rating that leads to a revision in the Brazilian
national scale or in case the bank's IDR is downgraded due to a
change on Fit assessment on the support from SAN.
The Stable Outlook assigned to the bank's National Long Term
Rating reflects the fact that Fitch does not expect the bank's
relative position in the national scale to change as there is no
expected deterioration on its credit profile.
VR
Santander Brasil's VR is at the sovereign level and while the bank
maintains a good credit profile, Fitch does not consider that it
can be rated above the sovereign on its own intrinsic merits.
If asset quality becomes relatively inferior to its peers and ROAA
is consistently below 0.5%, negatively affecting its comfortable
capital ratios, the result could be a negative action on the VR.
Santander Leasing
Santander Leasing's ratings will move in tandem with the ratings
of Santander Brasil.
Fitch has affirmed these ratings:
Santander Brasil:
-- Long-term foreign currency IDR at 'BB+', Outlook Negative;
-- Long-term local currency IDR at 'BBB-'; Outlook Negative;
-- Short-term foreign currency IDR at 'B';
-- Short-term local currency IDR at 'F3';
-- Viability rating at 'bb';
-- Support rating at '3';
-- National Long-term rating at 'AAA(bra)'; Outlook Stable;
-- National short-term rating at 'F1+(bra)'.
Santander Brasil Senior notes due 2017:
-- Long-term foreign currency rating at 'BB+'.
Santander Leasing:
-- National long-term rating at 'AAA(bra)'; Outlook Stable;
-- National short-term rating at 'F1+(bra)'.
Santander Leasing 4th and 5th Subordinated Debentures due 2017:
-- National long-term rating at 'AA+(bra) .
CAMARGO CORREA: Fitch Says Divestiture of CPFL a Credit Positive
----------------------------------------------------------------
Fitch Ratings views Camargo Correa S.A's (Camargo Correa 'BB-
'/Outlook Stable) announced sale of its 23.6% interest in CPFL
Energia S.A. (CPFL; 'AA(bra)'/Outlook Negative) as a credit
positive. Camargo Correa plans to sell its interest to State Grid
Corporation of China (SGCC; 'A+'/Outlook Stable) for BRL5.85
billion.
However, given the weakness of Camargo Correa at its current
rating level, and uncertainties regarding the timing of the
transaction and use of the proceeds, this announcement does not
lead to a change in the company's current ratings and Outlook. The
transaction is still subject to approval from government
authorities.
This sale is expected to alleviate refinancing pressure for
Camargo Correa during the next 24 months. At the holding company
level, Carmargo Correa faces BRL2.7 billion of debt maturities
during this time period. Its controlled subsidiaries, excluding
InterCement, have additional maturities of BRL2.4 billion.. These
figures compare unfavorably with cash of approximately BRL2.7
billion and nonmeaningful operating company dividends to the
holding company. Positively, Camargo has a BRL2 billion stand-by
facility available until May 2017.
Uncertainties remain regarding effective use of the asset sale
proceeds, such as if there will be any additional equity support
for InterCement Participacoes S.A. (InterCement; 'BB-'/Outlook
Stable). InterCement, Camargo Correa's cement division, accounted
for 60% of Camargo's consolidated revenues and 69% of its EBITDA
during 2015. It is currently highly leveraged, as a result of
plummeting demand for cement in Brazil.
On a consolidated basis, Camargo Correa's pro forma leverage ratio
would decline to 3.6x from 5.9x at Dec. 31 2015. On a standalone
basis (holding company), Camargo would have a pro forma net cash
position of BRL2.35 billion, considering holding company debt of
BRL4.4 billion and cash of BRL928 million at the end of December
2015.
The associated risks of the Lava-Jato investigation continue to
represent a negative headwind for Camargo Correa's ratings. The
company has been challenged to replace its backlog, which extends
only through 2018.
ITAU UNIBANCO: Fitch Affirms 'BB+' IDR; Outlook Negative
--------------------------------------------------------
Fitch Ratings has affirmed the ratings for Itau Unibanco Holding
S.A. (IUH) and its subsidiary, Itau Unibanco S.A., including the
Long-Term Foreign and Local Currency IDRs at 'BB+'. The Rating
Outlook is Negative.
KEY RATING DRIVERS
VR, IDRs, NATIONAL RATINGS AND SENIOR DEBT
The bank's IDRs, National and senior debt ratings are driven by
the bank's 'bb+' Viability Rating (VR) and reflects IUH's
consistent performance during the challenging economic cycle of
the last few years.
The bank's VRs reflects IUH's credit metrics which have
consistently shown diversified sources of liquidity/funding, good
capitalization, consistent levels of profitability and comfortable
levels of Asset Quality. IUH's VR is limited by Brazil's current
operating environment. The VR was downgraded by multiple notches
since October 2015, following the various downgrades of the
sovereign rating. However, IUH's IDRs are one notch above the
Sovereign Rating and are constrained by the country ceiling
('BB+'). The 'AAA(bra)' National Rating reflects the bank's very
strong credit profile.
One rationale for IUH's IDRs being above the sovereign rating is
that IUH is the largest private sector financial conglomerate in
Brazil, and Latin America, where it is a market leader in assets,
deposits, credit, and asset management. With a substantial branch
network focusing on a solid and diversified base of depositors and
customers, IUH is considered locally as a safe haven in times of
crisis. While having limited its credit appetite in the last few
years over concerns with the difficult operating environment in
Brazil, the bank continued its expansion in other Latin American
and overseas countries as an effort to diversify its risks and
sources of revenues. The most recent and relevant effort was via
the merger between Itau Chile and CorpBanca that was concluded on
April 1st. As of the second quarter of 2016, Itau Corpbanca was
consolidated into IUH's financial statements, as IUH is the
controlling shareholder, with a nearly 33.6% ownership.
IUH continues to perform satisfactorily in the continued
challenging environment as evidenced most recently by the results
of the first half of 2016 when it reported a ROAA of 1.6% and a
ROAE of 19.2%. However, these results were lower than those
reported a year earlier they compare well to those of its direct
peers. Profitability was impacted by the need for loan loss
provisions as the level of impaired loans rose; however, IUH's
asset quality metrics remained satisfactory and compare well with
peers, (consolidated 90-day NPL Ratio reached 3.6% and the 90-day
NPL coverage ratio was at 215%). Reflecting management's
conservatism, the bank maintained a consolidated excess provision
of BRL10.2 billion at June 30, 2016.
The bank's extensive deposit base, along with its other multiple
sources of funding, provides a comfortable level of liquidity.
The bank's large securities portfolio represents a relevant
portion of IUH's of total assets. The current low risk appetite
is evidenced by the fact that a significant amount of the on-
balance sheet loan and advances currently have tenors that are
under one year.
Capitalization ratios are also at comfortable levels and are
expected to remain so given management's recently revised guidance
for a decrease in credit growth for the remainder of 2016, ranging
between -10.5% to -5.5%. Fitch Core Capital at June 30, 2016,
reached one of its highest levels of the past five years at 12.6%,
which compares well to peers. IUH's CET I at June 30, 2016, was
14.8%. Given IUH's expected performance and conservative risk
appetite, IUH is not expected to have any difficulty adapting to
the BIS III requirements, and if those were fully implemented as
of June 30, 2016, the simulated CET I would be 14.1%. In the
event of an unlikely need to do so, IUH could use its excess
reserves to further support future growth while maintaining a
comfortable capital ratio.
SUPPORT RATING AND SUPPORT RATING FLOOR
The bank's Support Rating and Support Rating Floor reflect the
strong franchise and market share within the banking system where
is accounts for nearly 14% of the loans and 16.9% of the deposits.
As the largest private-sector bank in Brazil and its role as a
payment and other banking services provider, Fitch believes that
in the unlikely event of need, the government would provide
support. However, the support rating also reflects a moderate
probability of support in view of the uncertainty over the
capacity and willingness to provide extensive support.
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
Following Fitch's rating criteria, the IUH Tier II subordinated
debt was rated two notches below its Viability Rating (VR), one
notch lower due to Loss Severity features and its subordinated
status, and a one notch deduction due to the risk of non-
performance. IUH's subordinated debt carry a cumulative coupon
deferral mechanism. A deferral will only occur if IUH is
noncompliant with its regulatory capital requirement.
SUBSIDIARY AND AFFILIATED COMPANY
Itau Unibanco S.A. is a wholly owned subsidiary of IUH. Itau
Unibanco have the same VR as IUH as this reflects the agency's
view of their integral roles to the consolidated operation, and
the fact that broad risk management and strategic direction are
coordinated as a consolidated entity.
RATING SENSITIVITIES
IDRs, SENIOR AND SUBORDINATED DEBT
IUH's and Itau Unibanco's IDRs, and debt ratings are sensitive to
a change in Fitch's assumptions around specific issuer rating
factors and rating factors affecting the sovereign. The Negative
Outlook on the IDRs reflects Fitch's current negative view on the
operating environment for Brazilian banks, which in turn is
heavily influenced by the Negative Outlook on Brazil's Sovereign
rating.
A downgrade of the sovereign could lead to a downgrade of IUH's
ratings. The Rating Outlook for the sovereign is currently
Negative.
NATIONAL RATINGS
As the National Ratings are at the highest possible rating on
Fitch's Rating Scale a further upgrade would not be possible, thus
the Rating Outlook for the National Rating is Stable. These
ratings could only be downgraded in the event of Itau being rated
at or below the sovereign rating on the international scale.
VR
IUH's and Itau Unibanco's VRs are sensitive to a change in Fitch's
assumptions regarding the bank's rating factors. The VR could be
downgraded if the bank's loss absorption capacity diminishes. In
the unlikely event that the issuers FCC falls below 9%, or a
sustained decrease in ROAA below 1.25% and over 90-day NPL ratios
are above 6% (currently 3.6%, a ratings review would be triggered.
SUPPORT RATING AND SUPPORT RATING FLOOR
The SR is potentially sensitive to any change in assumptions
around the propensity or ability of the sovereign to provide
timely support to the bank.
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
IUH's subordinated debt ratings are broadly sensitive to the same
considerations that might affect IUH's VR.
IUH is the largest private sector financial conglomerate in
Brazil, and Latin America, where it is a market leader in assets,
deposits, credit, and asset management. With a substantial branch
network focusing on a solid and diversified base of depositors and
customers, IUH is considered locally as a safe haven in times of
crisis.
Fitch has affirmed these ratings:
IUH
-- Long-Term Foreign- and Local-Currency IDRs at 'BB+'; Outlook
Negative;
-- Short-Term Foreign- and Local-Currency IDRs at 'B';
-- Viability Rating at 'bb+';
-- National Long-Term Rating at 'AAA(bra)'; Outlook Stable;
-- National Short-Term Rating at 'F1+(bra)';
-- Support Rating at '3'
-- Support Rating Floor at 'BB-'.
-- Senior USD notes due 2018, Long-Term Foreign Currency Rating
at 'BB+'.
-- Subordinated USD notes due 2020 - 2023 Long-Term Foreign
Currency Rating at 'BB-'.
Itau Unibanco
-- Long-Term Foreign- and Local-Currency IDRs at 'BB+'; Outlook
Negative;
-- Short-Term Foreign- and Local-Currency IDRs at 'B';
-- Viability Rating at 'bb+';
-- National Long-Term Rating at 'AAA(bra)'; Outlook Stable;
-- National Short-Term Rating at 'F1+(bra)';
-- Support Rating at '3'
-- Support Rating Floor at 'BB-'.
SANTANDER BRASIL: Fitch Affirms 'BB+' IDR; Outlook Negative
---------------------------------------------------------------
Fitch Ratings has affirmed the ratings of the three largest
private sector Brazilian banks:
-- Itau Unibanco Holding S.A. (Itau Unibanco Holding) and
subsidiary Itau Unibanco S.A. (Itau Unibanco)
-- Banco Bradesco S.A. (Bradesco)
-- Banco Santander Brasil S.A. (Santander Brasil) and
subsidiary Santander Leasing S.A. Arrendamento Mercantil
(Santander Leasing)
Fitch has affirmed these ratings:
Itau Unibanco Holding:
Long-Term Foreign- and Local-Currency IDRs at 'BB+'; Outlook
Negative;
Short-Term Foreign- and Local-Currency IDRs at 'B';
Viability Rating at 'bb+';
National Long-Term Rating at 'AAA(bra)'; Outlook Stable;
National Short-Term Rating at 'F1+(bra)';
Support Rating at '3';
Support Rating Floor at 'BB-';
Senior USD notes due May 2018, Long-Term Foreign Currency Rating
at 'BB+';
Subordinated USD notes due April 2020, January and Dec. 2021,
March and August 2022 and May 2023 Long-Term Foreign Currency
Rating at 'BB-'.
Itau Unibanco:
Long-Term Foreign- and Local-Currency IDRs at 'BB+'; Outlook
Negative;
Short-Term Foreign- and Local-Currency IDRs at 'B';
Viability Rating at 'bb+';
National Long-Term Rating at 'AAA(bra)'; Outlook Stable;
National Short-Term Rating at 'F1+(bra)';
Support Rating at '3';
Support Rating Floor at 'BB-'.
Bradesco:
Long-Term Foreign and Local-Currency IDR at 'BB+'; Outlook
Negative;
Short-Term Foreign and Local-Currency IDR at 'B';
Viability Rating at 'bb+';
Support Rating at '3';
Support Rating Floor at 'BB-';
National Long-Term Rating at 'AAA(bra)'; Outlook Stable;
National Short-Term Rating at 'F1+(bra)';
Subordinated Notes due September 2019, January 2021 and March
2022
Long-Term Foreign-Currency rating at 'BB-'.
Santander Brasil
Long-Term Foreign Currency IDR at 'BB+', Outlook Negative;
Long-Term Local Currency IDR at 'BBB-'; Outlook Negative;
Short-Term Foreign Currency IDR at 'B';
Short-Term Local Currency IDR at 'F3';
Viability Rating at 'bb';
Support Rating at '3';
National Long-Term Rating at 'AAA(bra)'; Outlook Stable;
National Short-Term Rating at 'F1+(bra)'.
Santander Brasil Senior notes due 2017:
Long-Term Foreign Currency rating at 'BB+'.
Santander Leasing
National Long-Term Rating at 'AAA(bra)'; Outlook Stable;
National Short-Term Rating at 'F1+(bra)'.
Santander Leasing 4th and 5th Subordinated Debentures due 2017:
National Long-Term rating at 'AA+(bra) .
===================
C O S T A R I C A
===================
BANCO INTERNACIONAL: Fitch Affirms 'BB+' IDR; Outlook Remains Neg.
------------------------------------------------------------------
Fitch Ratings has affirmed Banco Internacional de Costa Rica,
S.A.'s (BICSA) Long-Term Issuer Default Ratings at 'BB+'. Fitch
has also downgraded BICSA's Viability Rating (VR) to 'b+' from
'bb'. The Rating Outlook for the bank's IDR and Long-Term
National Rating remains Negative.
The downgrade of BICSA's VR reflects the deterioration of the
bank's funding profile in recent months, reliance on ordinary
liquidity support from the shareholders, Banco de Costa Rica (BCR,
51%) and Banco Nacional de Costa Rica (BNCR, 49%). Fitch's
opinion of BICSA's corporate governance effectiveness has also
deteriorated following the resignations of board members
representing BNCR on Aug. 1. While shareholder participation in
the board has been restored, Fitch believes there is no certainty
of effective coordination between both shareholders in order to
properly oversee the bank's performance.
KEY RATING DRIVERS
IDRS, NATIONAL RATINGS AND SENIOR DEBT
The IDRs, Support and National ratings assigned to BICSA reflect
the support that, in Fitch's opinion, the entity will receive from
its main shareholder, Banco de Costa Rica (BCR; 'BB+'/Outlook
Negative), if needed. The bank's IDR and long-term National
rating have a Negative Outlook, which is in line with BCR's IDR
which is driven by the Costa Rica sovereign rating ('BB+'/Outlook
Negative). The affirmation of the bank's Support Rating reflects
Fitch's view that the probability of support remains unchanged.
In May of 2016 the bank received ordinary liquidity support to
face the bank's funding needs.
VR
BICSA's VR reflects its highly concentrated funding and tight
liquidity that result in a lower financial flexibility compared to
its peers and Fitch's diminished perception of corporate
governance effectiveness. The rating also considers the bank's
moderate profitability, good capital ratios and low delinquency.
Liquidity has been under pressure recently and currently is
considered low, with cash & equivalents and investments
representing 17% of total financial liabilities showing a decline
from previous years. Also the bank operates with a concentrated
funding structure that is vulnerable to deposits volatility. The
concentrated funding structure and lower liquidity in 2016 poses a
material challenge for the bank's financial profile that
materialized in recent months and was overcome with the support
from both shareholders.
Corporate Governance in BICSA has evidenced its weaknesses
recently with the resignation on Aug. 1, of three board members
representing BNCR. This event reflected a material lack of
coordination between shareholders and that there is no certainty
that actions taken by the owners will always be in favor of
BICSA's oversight.
BICSA is characterized by low delinquency levels under
international standards, with nonperforming loan (NPL) ratios
below 1% over the past four years. In June 2016, this metric
deteriorated somewhat to 1.1% as a result of the deterioration of
a small number of debtors. The bank delinquency metrics compare
below local peers, but this is expected given the Costa Rican
exposure.
The bank's financial performance is consistent with its corporate
focus, although it did decline since 2015. As of June 2016, its
return on assets was 0.7%, which is lower than previous years, due
to provisioning expenses and higher cost of funding. Also, the
bank's performance was hit by loan prepayments. Its already-low
NIM has been declining over the past few years as a result of
fierce competition.
Fitch considers BICSA's capitalization to be good, with a Fitch
core capital (FCC) of 12.8% as of June 2016. Contributing to the
company's good capitalization is its asset growth, which is in
line with its internal generation of capital and its zero-dividend
payout policy.
RATING SENSITIVITIES
IDRS, SUPPORT RATING, NATIONAL RATINGS
The bank's IDRs, support and national ratings are sensitive to a
change, in Fitch's view, as to BCR's capacity or willingness to
support BICSA. The Negative Outlook on BICSA's IDR reflects the
likelihood that a downgrade of BCR's IDRs would result in a
similar action on BICSA's IDR and national ratings in Panama.
VR
Reductions in the bank's VR could come from a material increase of
the refinancing risk reflected in reductions of funding sources
combined with a weaker liquidity cushion. Also deterioration of
the bank's VR could come from further deterioration of Fitch's
opinion of the corporate governance effectiveness.
Fitch has affirmed BICSA's ratings as:
International ratings
-- Long-Term IDR at 'BB+'; Outlook Negative;
-- Short-Term IDR at 'B';
-- Support Rating at '3'.
National ratings
-- Long-term National rating at 'AA-(pan)'; Outlook Negative;
-- Short-term National rating at 'F1+(pan)';
-- Long-term senior unsecured bonds at 'AA-(pan)';
-- Commercial paper at 'F1+(pan)'.
-- Long-term senior unsecured bonds in El Salvador at
'AAA(slv)'; Outlook Stable
Fitch has downgraded this rating:
-- Viability Rating to 'b+' from 'bb'.
======================
P U E R T O R I C O
======================
AEROPOSTALE INC: Joint Venture Chosen as Winner Over Sycamore
-------------------------------------------------------------
Peg Brickley, writing for The Wall Street Journal Pro Bankruptcy,
reported that landlords, liquidators and licensing firm Authentic
Brands Group have been declared the winners of a contest for
distressed retailer Aeropostale, with an offer of $243.3 million
in a deal that preserves part of the business, according to a
person familiar with the matter.
According to the report, the results of a bankruptcy auction that
closed on Sept. 2, 2016, mean Aeropostale will survive chapter 11
in a streamlined form, with a chain that once numbered 800 stores
cut back but still in operation.
Aeropostale said in a statement that it would emerge from
bankruptcy "with new ownership as a financially stronger company
positioned to compete and succeed in an evolving retail
landscape," the report related.
Major Aeropostale landlords Simon Property Group and General
Growth Properties are part of the joint venture that formed ranks,
as the sprawling store chain seemed headed to liquidation, the
report further related.
Also part of the Authentic Brands joint venture are liquidators
Gordon Brothers Retail Partners LLC and Hilco Merchant Resources
LLC, the report said. Terms of the joint venture deal call for at
least 229 stores to be kept in operation, the report added. The
venture partners will be selling off inventory in stores that are
slated to be shut down, the report noted.
If the joint venture bid fails to close, Sycamore will be declared
the winner, the report said.
Auction results will be put before a bankruptcy judge Sept. 12,
for a ruling on whether Aeropostale's choice of a winner meets the
test of being the highest and best for creditors of the troubled
company, the report noted. The sale will close as part of the
chapter 11 plan that will carry Aeropostale out of bankruptcy, the
company said, the report added.
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 million and total debt
of $390 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, 2016, 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.
* * *
The Bankruptcy Court entered an order establishing (i) July 25,
2016 at 5:00 p.m. (Eastern Time) as the deadline for each person
Or entity, not including governmental units to file proofs of
claim in respect of any prepetition claims against any of the
Debtors, and (ii) Oct. 31, 2016, at 5:00 p.m. (Eastern Time) as
the deadline for governmental units to file proofs of claim in
respect of any prepetition claims against any of the Debtors.
AEROPOSTALE INC: Sycamore, Joint Venture Bidding on Retailer
------------------------------------------------------------
Peg Brickley and Lillian Rizzo, writing for The Wall Street
Journal Pro Bankruptcy, reported that an auction that will
determine the future of Aeropostale moves into a fourth day, with
competing bids from a group that would save some 229 stores and
from private-equity firm Sycamore Partners.
According to the report, a consortium of landlords, liquidators
and brand specialist Authentic Brands Group has offered to save
some 229 stores and thousands of jobs. Sycamore, which controls a
major lender to the retailer, declined to discuss the shape of the
offer it made, which it says tops the joint venture bid, the
report related.
While the form of Sycamore's bid is still unclear, the firm has
been in discussions with Neil Cole, the former chief executive of
licensing company Iconix Brands Group, the report further related,
citing people familiar with the matter. Sycamore hasn't said if,
and what kind of role, Mr. Cole would take on with Aeropostale,
but he could manage the licensing aspect of the business, the
report added, further citing the people.
A spokeswoman for Aeropostale told WSJ it would be premature to
speculate on the outcome of the auction but said the company
"remains hopeful that an agreement will be reached that preserves
corporate and retail jobs, and allows the company to operate its
e-commerce and international licensing business moving forward."
Bradford Sandler, lawyer for the official committee representing
Aeropostale's landlords, suppliers and other unsecured creditors,
said creditors are "optimistic" the auction will produce a deal
that will keep part of the company in operation, WSJ said.
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 million and total debt
of $390 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, 2016, 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.
* * *
The Bankruptcy Court entered an order establishing (i) July 25,
2016 at 5:00 p.m. (Eastern Time) as the deadline for each person
Or entity, not including governmental units to file proofs of
claim in respect of any prepetition claims against any of the
Debtors, and (ii) Oct. 31, 2016, at 5:00 p.m. (Eastern Time) as
the deadline for governmental units to file proofs of claim in
respect of any prepetition claims against any of the Debtors.
AEROPOSTALE INC: Gets Bid from Mall Group to Keep 229 Stores Open
-----------------------------------------------------------------
Adrienne Roberts, writing for Bloomberg News, reported that
Aeropostale Inc., the bankrupt teen clothing chain, says a group
including mall operators General Growth Properties Inc. and Simon
Property Group Inc. has bid for "substantially all" of its assets
with an eye toward keeping at least 229 stores open.
According to the report, the going concern bid would also cover
expenses including Aeropostale's bankruptcy financing, the company
said in a filing on Aug. 31 in Manhattan federal court. The
amount of the bid wasn't disclosed, the report related.
Lawyers for Aeropostale updated the bankruptcy judge on the
auction on Sept. 1, saying they were working on documentation for
the group's offer, while also evaluating other bids, the report
further related.
A lawyer for Sycamore said that the private equity firm hasn't yet
decided whether it will support the going concern bid, or whether
it will pursue an offer of its own, the report said. It needs to
figure out how the mall group's bid will affect its recoveries
before deciding what to do, the lawyer said, the report added.
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 million and total debt
of $390 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, 2016, 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.
* * *
The Bankruptcy Court entered an order establishing (i) July 25,
2016 at 5:00 p.m. (Eastern Time) as the deadline for each person
Or entity, not including governmental units to file proofs of
claim in respect of any prepetition claims against any of the
Debtors, and (ii) Oct. 31, 2016, at 5:00 p.m. (Eastern Time) as
the deadline for governmental units to file proofs of claim in
respect of any prepetition claims against any of the Debtors.
CRISTALEX INC: Taps MRO Attorneys as Legal Counsel
--------------------------------------------------
Cristalex, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Puerto Rico to hire a legal counsel in connection
with its Chapter 11 case.
The Debtor proposes to hire MRO Attorneys at Law, LLC to provide
legal services necessary in the reorganization of its business.
Myrna Ruiz-Olmo, Esq., the attorney designated to represent the
Debtor, will be paid $200 per hour for her services.
In a court filing, Ms. Ruiz-Olmo disclosed that she is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
Ms. Ruiz-Olmo's contact information is:
Myrna L. Ruiz-Olmo, Esq.
MRO Attorneys at Law LLC
P.O. Box 367819
San Juan, PR 00936-7819
Tel. 787-237-7440
Email: mro@prbankruptcy.com
About Cristalex Inc.
Cristalex, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 16-06385) on August 11,
2016. The petition was signed by Marta Pagan Batista, president.
At the time of the filing, the Debtor estimated assets of less
than $500,000 and liabilities of $500,001 to $1 million.
SAN JUAN PROPERTIES: Hires Davila Law Offices as Counsel
--------------------------------------------------------
San Juan Properties, Inc., seeks authorization from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ the Law
Offices of Emily D. Davila as counsel.
The Debtor requires the Law Offices of Emily D. Davila to:
a. prepare bankruptcy schedules, pleadings, applications and
conducting examinations incidental to any related proceedings or
to
the administration of this case;
b. develop the relationship of the status of the Debtor to the
claims of creditors in this case;
c. advise the Debtor of its rights, duties, and obligations as
Debtor operating under Chapter 11 of the Bankruptcy Code;
d. take any and all other necessary action incident to the
proper preservation and administration of this Chapter 11 case;
and
e. advise and assist the Debtor in the formation and
preservation of a plan pursuant to Chapter 11 of the Bankruptcy
Code, the disclosure statement, and any and all matters related
thereto.
The Debtor will compensate Emily D. Davila at $200.00 per hour
The Debtor has paid the firm a retainer in the sum of $5,0000.00
in attorney's fees and $1,717.00.00 for filing fee.
Emily D. Davila, Esq., of Law Offices of Emily D. Davila, 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 Debtor and its estates.
The Law Offices of Emily D. Davila may be reached at:
Emily D. Davila
Law Offices of Emily D. Davila
420 Ponce de Leon, Midtown #311
San Juan, P.R. 00918
Tel: 759-8090/759-9620
About San Juan Properties, Inc.
San Juan Properties, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. D.P.R. Case No. 16-05397) on July 7, 2016. Hon.
Mildred Caban Flores presides over the case. The Law Offices of
Emily D. Davila represents the Debtor as counsel.
In its petition, the Debtor estimated $1 million to $10 million in
both assets and liabilities. The petition was signed by Rolando
Avila, president.
SOCIEDAD EL PARAISO: Exit Plan to Pay $42K to Unsecured Creditors
-----------------------------------------------------------------
Sociedad El Paraiso S.E. and Conrado Rosa Guzman filed a Chapter
11 plan of reorganization that will set aside $42,017 to pay
general unsecured creditors.
Under the plan, Class 11 general unsecured creditors will receive
from the Debtors a promissory note, providing a payment of $42,017
to be made in consecutive monthly installments of $700 over five
years.
Payments under the plan will be funded by the Debtors' rental
income from a commercial building, according to their disclosure
statement filed with the U.S. Bankruptcy Court for the District of
Puerto.
A copy of the disclosure statement is available for free at
https://is.gd/dna8TX
The Debtors are represented by:
Alexis A. Betancourt Vincenty, Esq.
Wigberto Lugo Mender, Esq.
Lugo Mender Group, LLC
100 Carr. 165 Suite 501
Guaynabo, P.R. 00968-8052
Tel.: (787) 707-0404
Fax: (787) 707-0412
Email: a_betancourt@lugomender.com
Email: wlugo@lugomender.com
About Sociedad El Paraiso
Sociedad El Paraiso, SE, a special partnership organized by
Conrado Rosa Guzman in Puerto Rico, operates privately-owned
properties leased to third parties for residential and commercial
purposes.
The Debtors sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Lead Case No. 14-09700) on November 24, 2014.
The petitions were signed by Conrado Rosa Guzman, authorized
representative.
At the time of the filing, Sociedad El Paraiso estimated its
assets and debts at $1 million to $10 million.
***********
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.
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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 commercial use, resale or
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The TCR Latin America subscription rate is US$775 per half-year,
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