/raid1/www/Hosts/bankrupt/TCRLA_Public/161004.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, October 4, 2016, Vol. 17, No. 196
Headlines
A R G E N T I N A
ARGENTINA: SMEs Need Better System for Accessing Credit, IMF Says
B R A Z I L
BANCO BMG: Views Sale of JV Shares as Positive, Fitch Says
ELETROPAULO METROPOLITANA: Fitch Affirms 'BB' IDR; Outlook Stable
GENERAL SHOPPING: Fitch Raises Issuer Default Ratings to 'CC'
ULTRAPAR INT'L: Moody's Rates Prop. $750MM Sr. Unsec. Notes 'Ba1'
C A Y M A N I S L A N D S
A330 300: Creditors' Proofs of Debt Due Oct. 26
BADEN INVEST: Creditors' Proofs of Debt Due Oct. 26
CORRUM CAPITAL: Creditors' Proofs of Debt Due Oct. 27
EXPERIENCE CORPORATION: Commences Liquidation Proceedings
JUN 22: Creditors' Proofs of Debt Due Oct. 24
LAMBOURN INVESTMENTS: Placed Under Voluntary Wind-Up
NEVADA ASSET: Placed Under Voluntary Wind-Up
QUALITY PUMA: Creditors' Proofs of Debt Due Oct. 17
SOUTH DAKOTA: Placed Under Voluntary Wind-Up
STONE DRUM: Commences Liquidation Proceedings
TGW CAPITAL: Commences Liquidation Proceedings
TGW GLOBAL: Commences Liquidation Proceedings
TOWN & COUNTRY: Commences Liquidation Proceedings
WYOMING ASSET: Placed Under Voluntary Wind-Up
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Meeting With Haiti Heralds Stronger Trade Ties
DOMINICAN REPUBLIC: Halts Agro, Livestock on Sensitive Highlands
J A M A I C A
JAMAICA: Finance Minister Confident in Securing New IMF Agreement
NORANDA ALUMINUM: Bids Submitted for Company's Assets
M E X I C O
MEXICO: Finance Head Assured on Debt Plan Even With Rate Rise
P E R U
CAMPOSOL HOLDING: Fitch Affirms B- IDR; Removes From Watch Neg.
P U E R T O R I C O
APRICUS BIOSCIENCES: Closes Sale of Common Stock and Warrants
DF SERVICING: Court to Consider Plan Confirmation on Dec. 13
ENTERPRISE BUSINESS: Confirmation Hearing Set for Nov. 3
SUCN. PEDRO: Taps Luis R. Carrasquillo as Financial Consultant
UNIVERSITY OF PUERTO RICO: S&P Affirms 'CC' Rating on P & Q Bonds
T R I N I D A D & T O B A G O
TRINIDAD & TOBAGO: Gov't. Must Help Rest of Tourism Industry
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Ups Debt Swap Exchange Offer, Sets Limit
VENEZUELA: China is Cutting Off Cash to Country
X X X X X X X X X
* LATAM: Hurricane Matthew Powers Towards Jamaica and Haiti
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: SMEs Need Better System for Accessing Credit, IMF Says
-----------------------------------------------------------------
EFE News reports that an International Monetary Fund mission to
Argentina, the first in a decade, said that the nation's small and
medium enterprises need a better system for accessing credit, a
business federation said after meeting with the delegation in this
capital.
"They talked about the need for a better credit system for SMEs
because they believe the economy can't function under the current
one," Osvaldo Cornide, head of the Argentine Confederation of
Medium Enterprises, or Came, said after the meeting, according to
EFE News.
The head of the IMF delegation, Roberto Cardarelli, told reporters
he spoke with Came leaders about different issues such as
inflation, the exchange rate and structural economic reforms
carried out by President Mauricio Macri's administration in recent
months, the report notes.
The IMF delegation's two-week visit to Argentina marks its first
annual review of Argentina's economic health since 2006, when the
administration of then-President Nestor Kirchner suspended those
audits due to tensions with the multilateral lender, the report
relays.
The visit will end with a meeting between the IMF delegation and
Argentine Finance Minister Alfonso Prat-Gay, after which the
lender will issue a preliminary report on its findings, the report
relays.
A final report with conclusions on the evolution of Argentina's
economy based on talks with representatives of the government and
the private sector, including institutions such as Cane, will be
issued in November, the report notes.
"The IMF is an instrument, like a violin: it can play a wedding
march or a requiem," mr. Cornide said, adding that he hopes
Macri's government will reach beneficial agreements with that
financial institution that avoid a repeat of past situations in
which relations with the Fund meant "austerity and more
austerity," the report discloses.
Many in Argentina blame the IMF in part for Argentina's economic
collapse early last decade, while the lender's internal audit unit
found in 2004 that the Fund had supported "inadequate policies"
that in late 2001 led to a massive default and the worst crisis in
the country's recent history, the report notes.
Mr. Cornide said he communicated to Cardarelli his confederation's
satisfaction with some of Macri's reforms, including the lifting
of currency controls, but also its disagreement with decisions
such as the slashing of subsidies that had kept utility prices
low, the report relays.
"The sector was bad off and now things are worse," Mr. Cornide
said, adding that consumer spending had fallen over the past month
by 7 percent, the report notes. "We depend on people having money
(to spend) and people have less money."
* * *
On April 19, 2016, the Troubled Company Reporter-Latin America
reported that Moody's Investors Service upgraded on April 15,
2016, Argentina's government bond rating to B3 from Caa1, with the
outlook changed to stable from positive. The key drivers for the
upgrade are (i) Moody's expectation that Argentina will settle
holdout creditor claims which will result in a lifting of court
injunctions and clear the way for Argentina to access
international capital markets, as well as the likelihood that
Argentina will make payments to restructured bondholders increased
significantly following an April 13, US circuit court ruling in
favor of Argentina, and (ii) the economic policy improvements
since Mauricio Macri's administration took office last December.
The new government lifted capital controls and allowed the peso to
float more freely, reduced energy and transportation subsidies and
has begun to address longstanding macroeconomic imbalances.
As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-day grace
period on a US$539 million interest payment. Earlier that day,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago.
On March 30, 2016, after more than 12 hours of debate in the
Senate, Argentina's Congress passed a bill that will allow the
government to repay holders of debt that the South American
country defaulted on in 2001, including a group of litigating
hedge funds that won judgments in a New York court. The bill
passed by a vote of 54-16.
On March 24, 2016, Fitch Ratings upgraded Argentina's Long-
term local-currency Issuer Default Rating (LT LC IDR) to 'B' from
'CCC', with a Stable Outlook. Fitch has affirmed Argentina's Long-
term foreign-currency (FC) IDR at 'RD' and the short-term FC IDR
at 'RD'. In addition, Fitch has upgraded the Country Ceiling to
'B' from 'CCC'.
===========
B R A Z I L
===========
BANCO BMG: Views Sale of JV Shares as Positive, Fitch Says
----------------------------------------------------------
Fitch Ratings views announcement by Banco BMG S.A. (BMG, IDR 'BB-
'/LT National Rating 'A(bra)') that it will sell its 40 percent
ownership in Itau BMG Consignado S.A. as a credit positive. BMG
plans to sell the shares to its joint venture partner, Itau
Unibanco Holding S.A. (Itau Unibanco, IDR 'BB+'/'AAA(bra)'), which
owns the remaining 60% balance.
As per the share sale and purchase agreement announced by both
partner banks, BMG will receive approximately BRL 1.28 billion
updated by CDI interest rate since December 31, 2015 from Itau
Unibanco upon the closing of the sale. The sale and proceeds are
expected to strengthen BMG's credit metrics, mainly the
capitalization ratios, while it continues to grow its core
business of credit card lending backed by payroll deduction
(cartao de credito consignado).
Despite the sale of all its shareholdings to Itau Unibanco, the
two banks will continue to maintain an association via a 10-year
agreement for the distribution of payroll-backed loans of Itau BMG
Consignado on an exclusive basis through distribution channels
linked to BMG.
Fitch views both these developments as credit positives for BMG
and will continue to monitor the sale as it develops. The
conclusion of the sale is expected to take place during the fourth
quarter of this year following the obtainment of applicable
regulatory authorizations.
Founded in 1930 and controlled by Flavio Pentagna Guimaraes, BMG
is a mid-sized bank focused in payroll credit card, as well as
operations for small and mid-size enterprises and other consumer
products.
ELETROPAULO METROPOLITANA: Fitch Affirms 'BB' IDR; Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Eletropaulo Metropolitana de
Eletricidade de Sao Paulo S.A.'s Foreign and Local Currency Issuer
Default Ratings at 'BB' and long-term National Scale Rating at
'AA-(bra)'. The Rating Outlook for the corporate ratings is
Stable.
KEY RATING DRIVERS
Eletropaulo's ratings reflect its moderate leverage, robust
liquidity position and lengthened debt maturity profile. Fitch
expects that negative pressures on energy consumption, delinquency
and energy losses due to the challenging Brazilian macroeconomic
environment will have limited impact to the company's credit
profile in the coming years.
Fitch estimates Eletropaulo's free cash flow (FCF) to turn
positive only after 2018 due to high capital expenditures (capex)
and operating expenses (opex) needs in the next two years. The
company operational efficiency measured by quality indicators of
duration and frequency of supply interruptions is currently worse
than regulatory levels what will demand strong investments to
bring them to acceptable levels. Also the company's fourth tariff
review implemented on July 4, 2015, slightly pressures its EBITDA
as the 1.6% readjustment applied to manageable costs was below
inflation.
The company benefits from its business risk profile, in view of
its exclusive rights to distribute electricity within its
concession area in the Metropolitan Region of Greater Sao Paulo.
The ratings incorporate a moderate regulatory and hydrological
risk for the Brazilian power sector.
Moderate Leverage to Remain
Fitch expects Eletropaulo's net leverage at moderate levels in the
range of 2.5x-3.5x in the next three years. For the last 12
months (LTM) ended on June 30, 2016, the company reported total
debt-to-EBITDA ratio of 4.1x, while the net debt-to-EBITDA ratio
was 2.6x, in comparison with 3.8x and 3.2x, respectively, in 2015.
Fitch's calculations does not incorporate BRL1.3 billion on the
debt related to pension funds obligations, which also take part on
the company's financial covenants, excluding pension fund expenses
from EBITDA.
Positive FCF in 2018
FCF should be positive in 2018 based on a more robust cash flow
from operations (CFFO) and considering annual capital expenditures
around BRL750 million and limited dividends distribution. In the
LTM ended on June 30, 2016, CFFO of BRL884 million was strong and
benefited from the recovery of BRL1.3 billion in non-manageable
costs in the first half of 2016. The CFFO was sufficient to cover
capital expenditures of BRL713 million and dividends of BRL18
million, leading to a FCF of BRL172 million.
In the same period, net revenues were BRL12 billion, not
considering construction revenues, while EBITDA of BRL911 million
remains significantly below the estimated regulated EBITDA of
BRL1.2 billion defined during the last tariff review process in
2015. Part of this gap is explained by the costs associated with
higher volumes of energy purchases that cannot be passed through
tariff. The regulation allows up to 105% of the demand to be
incorporated on tariffs, while Eletropaulo is currently at around
114%. Fitch expects the company to manage this situation in order
to avoid high losses.
Fitch does not expect non-recurring items, such as the discussion
(ANEEL) with the regulator related to a difference on its asset
base adopted on the 2nd Tariff Review Cycle and the loan debt
involving Centrais Eletricas Brasileiras S.A. (Eletrobras) and
Companhia de Transmissao de Energia Eletrica Paulista S.A. (CTEEP)
to negatively impact Eletropaulo's cash flow generation. If those
items materialize, the agency will review its projections.
Increasing Opex
Fitch does not expect opex to return to historical figures before
2019 due to the company needs to bring quality indicators to
regulatory levels. Eletropaulo service quality indicators are
above regulatory limits, leading to a strong need of opex and
capex to meet the regulatory standards in order to avoid penalties
on its concession contract. Personnel costs have grown in line
with inflation, but since 2015, other manageable costs, such as
third party services, have grown above historical levels.
Capex Funded by BNDES is Positive
Positively, Banco Nacional de Desenvolvimento Economico e Social
(BNDES) is partially funding Eletropaulo's capex needs. Fitch
believes this will change the funding sources mix, which has been
concentrated on capital markets and bank loans for the last years,
and reduce average cost of debt. As of June 2016, from
Eletropaulo's capex needs of approximately BRL700 million-BRL800
million per year, BNDES has disbursed BRL272 million.
Low Energy Consumption
Fitch expects an energy consumption decline of around 3.0% in
Eletropaulo's concession area in 2016, resuming small growths in
the following years. High energy tariffs and challenging
macroeconomic scenario are negatively impacting consumptions
levels since 2015. In the first half of 2016, energy consumption
on Eletropaulo's concession area has declined 3.1% compared with
the same period of the previous year, with minus 4.4% in 2015.
KEY ASSUMPTIONS
Fitch's main assumptions, in accordance with the base case
scenario for this issuer include:
-- Consumption decline of 3.1% in 2016, with growths of 0.7%
and 1.0% in 2017 and 2018, respectively;
-- Annual average capex of BRL700 billion-BRL800 billion from
2016 to 2019;
-- Payout dividend ratio of around of 25% after 2016.
RATING SENSITIVITIES
Future developments that may individually or collectively lead to
a negative rating action includes:
-- Net leverage consistently above 4.0x;
-- Cash and equivalents + CFFO/short-term debt ratio below
2.0x;
-- Non-expected significant cash outflows due to the litigation
with CTEEP and Eletrobras or to unfavourable regulatory
decisions.
Future developments that may individually or collectively lead to
a positive rating action includes:
-- Net leverage consistently below 2.5x;
-- Cash and equivalents+CFFO/short-term debt ratio above 3.0x
LIQUIDITY
Eletropaulo presents a strong liquidity position and a lengthened
debt maturity profile, with proven access to capital markets and
bank financings. As of June 30, 2016, the company's cash and
marketable securities position of BRL1.3 billion covered 1.5x its
short-term debt of BRL898 million. Cash plus funds from
operations (FFO)-to-short-term debt ratio and cash plus CFFO-to-
short-term debt ratio of 3.5x and 2.5x, respectively, are also
robust. Total debt of BRL3.7 billion was mainly composed of
debentures (79%) and commercial bank loans (CCB) (8%).
FULL LIST OF RATING ACTIONS
Fitch has affirmed Eletropaulo's ratings as:
-- Foreign and Local Currency IDRs at 'BB';
-- Long-term National Scale Rating at 'AA-(bra)';
-- 9th debenture issue, in the amount of BRL250 million, due
2018, at 'AA-(bra)';
-- 11th debenture issue, in the amount of BRL200 million, due
2018, at 'AA-(bra)'; and
-- 15th debenture issue, in the amount of BRL750 million, due
2018, at 'AA-(bra)'.
The Rating Outlook for the corporate ratings is Stable.
GENERAL SHOPPING: Fitch Raises Issuer Default Ratings to 'CC'
-------------------------------------------------------------
Fitch Ratings has upgraded General Shopping Brasil SA's (GSB)
Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs)
to 'CC' from 'RD' and National Scale rating to 'CC(bra)' from
'RD(bra)'.
The rating actions reflect Fitch's reassessment of GSB's IDRs and
issuance debt ratings incorporating the company's credit quality
following its recently executed debt exchange offer.
Fitch believes GSB's main challenge is to improve its
unsustainable capital structure and weak liquidity. On the
operational side, the company's efforts are oriented towards
improving its tenant mix and maintaining stable operational
performance. On the financial side, during 2015 - 2016 GSB has
pursued several strategies to preserve liquidity, reduce financial
leverage and lower FX exposure. The appreciation of the Brazilian
real during 2016 is a positive factor for the company's capacity
to service its debt, as GSB's cash flow generation is 100% in
local currency and its debt is approximately 55% denominated in
U.S. currency.
KEY RATING DRIVERS
Unclear Strategy on Capital Structure
Despite the company's efforts to reduce its financial leverage
during 2015 - 2016, GSB's capital structure remains unsustainable
due to limited capacity to service its debt. During the last-12-
months ended in June 2016, GSB launched a debt exchange offer for
its perpetual notes, completed an equity injection of around BRL57
million and launched a debt exchange offering for its subordinated
perpetual notes. During the same period GSB decided to defer the
interest payments corresponding to its subordinated perpetual
notes and executed several asset sale transactions resulting in
net process for approximately BRL 70 million.
Limited Deleverage from Recent Debt Exchange
Fitch continues to see GSB's financial leverage as high and
capacity to service its debt as limited. The company's total debt
is BRL1.8 billion - on a proforma basis - as of June 30, 2016. It
consists of BRL614 million in real estate credit bills, BRL180
million in secured loans and financing, BRL534 million in
perpetual notes, BRL427 million in subordinated perpetual notes,
BRL29 million in new secured notes and BRL 26 million in unsecured
loans. The company's net leverage was 9.6x as of June 30, 2016.
When considering the 50% equity credit, GSB's net leverage is
estimated at 8.1x as of June 30, 2016. Fitch's rating case
incorporates the expectation GSB's net leverage ratio around 9x
during 2016 - 2017, it assumes the company will require to take
additional debt to preserve liquidity.
Resilient Operational Performance
Despite the weakening in some operational indicators, GSB
operational performance has remained relatively stable during
2015 - 2016. The company's same store sales (SSS) and same store
rent (SSR) has weakened during the last-12-month period ended in
June 2016 GSB's SSS declined to levels in the low single digits
during the first half of 2016, while its levels of SSR were in the
6% to 7% range during the same period. Fitch expects GSB to
maintain EBITDA margins of around 65%, occupancy levels around
94%, and total annual revenues per square meter increasing at an
annual growth rate in the 7% to 8% range during 2016 - 2017.
Fitch expects GSB's annual revenues in the BRL270 million to BRL
286 million during this period.
Quality Assets and Subordination Incorporated in Debt Recovery
As of June 30, 2016, GSB's total assets were valued at an
estimated BRL2.8 billion, with encumbered and unencumbered assets
representing approximately 84% and 16%, respectively, of the total
assets value. Fitch's expectation in the recovery prospects on
GSB's notes reflect the view that an ongoing concern scenario is
more likely to occur - versus a liquidation scenario - if GSB's
financial distress results in a debt restructuring process. The
Recovery Rating (RR) of 'RR4' for the USD250 million perpetual
notes reflects the average recovery prospects (the 31% to 50%
range) in an event of default The 'RR5' for the USD150 million
subordinated perpetual notes reflects below average recovery
prospects of approximately 11% - 30%. The Recovery Rating (RR) of
'RR3' for the USD8.9 million new secured notes reflects good
recovery prospects (the 51% to 70% range) in an event of default.
GSB's new secured notes were assessed as benefiting from higher
recovery prospects but reduced to 'RR3' because of Brazil's
specific recovery rating caps.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for GSB's ratings
include:
-- The company's capacity to cover cash interest payments and
cash taxes is very limited, below 1x, during 2016 - 2018;
-- The company continues refinancing its debt due during 2016-
2018, and increasing some revolving debt to maintain
liquidity;
-- EBITDA margin around 65% during 2016 - 2018;
-- The company continues deferring interest payments on the
subordinated perpetual notes during 2016 - 2018;
-- No capital expenditures during 2H2016 and 2017 - 2018.
RATING SENSITIVITIES
The following factors may have a negative impact on GSB's ratings:
-- Further deterioration of GSB's liquidity position;
-- Execution of a distressed debt exchange;
-- Defaults on scheduled amortization/interest payments and/or
formally filing for bankruptcy protection.
These factors may have a positive impact on GSB's ratings:
-- Material improvement in the company's liquidity and
financial leverage through some combination of the following
actions: equity injection, asset sales with limited impact
on cash flow generation, and lower FX exposure.
ULTRAPAR INT'L: Moody's Rates Prop. $750MM Sr. Unsec. Notes 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba1 foreign currency rating
to Ultrapar's proposed up to USD 750 million senior unsecured
notes due 2026 to be issued by Ultrapar International S.A. and
irrevocably and unconditionally guaranteed by Ultrapar
Participacoes S.A. ("Ultrapar") and by Ipiranga Produtos de
Petr¢leo S.A. The deal is part of Ultrapar's liability management
strategy and net proceeds from the issuance will be used for
general corporate purposes and for debt refinancing.
The rating of the proposed notes assumes that the final
transaction documents will not be materially different from draft
legal documentation reviewed by Moody's to date and assume that
these agreements are legally valid, binding and enforceable.
Ratings assigned:
Issuer: Ultrapar International S.A.:
-- Proposed up to USD 750 million senior unsecured notes due
2026: Ba1 (foreign currency)
-- The outlook is negative.
RATINGS RATIONALE
Ultrapar's Ba1 rating reflects primarily the company's solid
business model, low risk profile, stable cash flows and leading
position in different segments. Over the past few years the
company demonstrated its ability to post robust growth across all
business lines and to sustain conservative credit metrics and
strong cash generation even under adverse market conditions and
sizable capex plan.
On the other hand, the rating is primarily constrained by Brazil's
sovereign government bond rating. The company's acquisitive growth
strategy and its dependence on a few key suppliers for raw
materials are additional negative rating considerations. To a
lesser extent, the more cyclical nature of its specialty chemicals
business is also viewed as credit negative.
Ultrapar's Ba1 rating stands one notch above Brazil's government
bond rating of Ba2. Granted only on an exceptional basis, the
notching represents a fundamental corporate profile that is
stronger than the sovereign's government bond rating. This is
evidenced by the resilient nature of Ultrapar's cash flows and
financial flexibility, which allow it to withstand Brazil's
weakened economic and fiscal condition.
The proposed notes are part of Ultrapar's liability management
strategy and net proceeds will be used for general corporate
purposes and for debt refinancing. Moody's said, "Pro-forma for
the issuance, we estimate Ultrapar's total gross debt will
increase by BRL 1.0 billion, while adjusted leverage will modestly
raise to 2.2 times from 2.0 times. Despite the immediate leverage
increase, the proposed transaction will improve the company's
liquidity profile, lengthening its debt amortization schedule and
reinforcing its cash position."
"We expect Ultrapar to continue to conservatively manage its
foreign currency assets and liabilities to prevent currency
mismatch risks on its cash flow. Pro forma for the transaction, we
estimate that 30% of Ultrapar's debt will be denominated in
foreign currency (totaling roughly BRL 3.0 billion), while
approximately 17% of its LTM EBITDA was pegged to the USD
(equivalent to BRL 707 million)." Moody's said.
Ultrapar's cash needs in the near to mid-term include the payment
of around BRL 1.4 billion for the acquisition of Alesat, Brazil's
4th largest fuel distributor. The deal, which included the
assumption of BRL 737 million in debt, will be closed after the
approval of Brazil's anti-trust agent -- CADE. Moody's said, "As
the acquired assets are integrated with synergy benefits, we
expect Ultrapar's leverage to gradually decline to pre-acquisition
levels within a reasonable timeframe. In turn, Ultrapar will
consolidate its second place status in the local market surpassing
the 9,316 gas stations mark, up from 7,279."
The negative outlook on Ultrapar's rating mirrors Brazil's
sovereign ratings outlook.
Although unlikely in the short term, an upgrade of Ultrapar's
rating would depend on an upgrade of Brazil's sovereign rating and
on the maintenance by Ultrapar of strong credit metrics and
liquidity profile.
Negative pressure on the rating could arise from a deterioration
in the group's liquidity position or an increase in leverage (debt
to EBITDA above 4.0x) without prospects of deleveraging in the
near term. A drop in interest coverage as measured by EBIT to
interest expense below 2.5x for a prolonged period of time, and
operating margins below 3.0%, could negatively pressure the
rating. Additional negative actions on Brazil's sovereign rating
would also trigger a downgrade of Ultrapar's ratings.
Ultrapar Participacoes S.A., headquartered in Sao Paulo, Brazil,
is engaged in fuel (Ipiranga) and liquefied petroleum gas
(Ultragaz) distribution, specialty chemicals production (Oxiteno),
storage for liquid bulk (Ultracargo) and retail drugstore
(Extrafarma). In the last twelve months ended June 2016, Ultrapar
reported consolidated net revenues of BRL 78.6 billion (about USD
21.4 billion). Fuel distribution is the group's largest business
segment, representing 86% of consolidated net revenues and 69% of
EBITDA in the same period.
The principal methodology used in this rating was "Retail
Industry" published in October 2015.
==========================
C A Y M A N I S L A N D S
==========================
A330 300: Creditors' Proofs of Debt Due Oct. 26
-----------------------------------------------
The creditors of A330 300 Aircraft 456 Limited are required to
file their proofs of debt by Oct. 26, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 14, 2016.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Susan Craig/Jennifer Chailler
Telephone: (345) 943-3100
BADEN INVEST: Creditors' Proofs of Debt Due Oct. 26
---------------------------------------------------
The creditors of Baden Invest Corp. are required to file their
proofs of debt by Oct. 26, 2016, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Sept. 13, 2016.
The company's liquidator is:
Ezequiel A. Camerini
c/o Fox Horan & Camerini LLP
825 Third Avenue
New York, NY 10022
USA
Telephone: (212) 480-4800
CORRUM CAPITAL: Creditors' Proofs of Debt Due Oct. 27
-----------------------------------------------------
The creditors of Corrum Capital Equity (Offshore) Fund - Select,
Ltd. are required to file their proofs of debt by Oct. 27, 2016,
to be included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 8, 2016.
The company's liquidator is:
DMS Corporate Services Ltd.
c/o Norman Chan
PO Box 1344 KY1-1108
dms House, 20 Genesis Close George Town
Cayman Islands
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
EXPERIENCE CORPORATION: Commences Liquidation Proceedings
---------------------------------------------------------
On Aug. 2, 2016, the shareholders of Experience Corporation
resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Shuangdi Xiang
Fiona C.
Orient Century Building, 16th Floor
Room 1611,
No.345, Xianxia Road
200336 Shanghai
China
Telephone: (86 21) 5108 7509
Facsimile: (86 21) 5168 5710
JUN 22: Creditors' Proofs of Debt Due Oct. 24
---------------------------------------------
The creditors of Jun 22 Inc. are required to file their proofs of
debt by Oct. 24, 2016, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on May 12, 2016.
The company's liquidator is:
Amicorp Cayman Fiduciary Limited
The Grand Pavilion Commercial Centre, 1st Floor
802 West Bay Road
P.O. Box 10655 Grand Cayman KY1-1006
Cayman Islands
c/o Nicole Ebanks-Sloley
Telephone: (345) 943-6055
LAMBOURN INVESTMENTS: Placed Under Voluntary Wind-Up
----------------------------------------------------
On Sept. 13, 2016, the shareholder of Lambourn Investments Ltd
resolved to voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
NEVADA ASSET: Placed Under Voluntary Wind-Up
--------------------------------------------
On Sept. 15, 2016, the sole shareholder of Nevada Asset Holding
resolved to voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Elian Fiduciary Services (Cayman) Limited
c/o Julie Hughes
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
Telephone: +1 (345) 815 1426
Facsimile: +1 (345) 945-6265
QUALITY PUMA: Creditors' Proofs of Debt Due Oct. 17
---------------------------------------------------
The creditors of Quality Puma Limited are required to file their
proofs of debt by Oct. 17, 2016, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Sept. 14, 2016.
The company's liquidator is:
Richard Fear
c/o Ryan Charles
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
Telephone: (345) 814 7364
Facsimile: (345) 945 3902
SOUTH DAKOTA: Placed Under Voluntary Wind-Up
--------------------------------------------
On Sept. 15, 2016, the sole shareholder of South Dakota Asset
Holding resolved to voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Elian Fiduciary Services (Cayman) Limited
c/o Julie Hughes
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
Telephone: +1 (345) 815 1426
Facsimile: +1 (345) 945-6265
STONE DRUM: Commences Liquidation Proceedings
---------------------------------------------
On Sept. 14, 2016, the sole shareholder of Stone Drum Pacific
Opportunities Fund Inc. resolved to voluntarily liquidate the
company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Walkers Liquidations Limited
c/o Cate Barbour
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: +44 (0)20 7220 4970
TGW CAPITAL: Commences Liquidation Proceedings
----------------------------------------------
On Sept. 9, 2016, the sole shareholder of TGW Capital resolved to
voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Yau Sheung Kam
Flat D, 23rd Floor, Block 19, Upper Baguio Villa
555 Victoria Road
Pokfulam
Hong Kong
TGW GLOBAL: Commences Liquidation Proceedings
---------------------------------------------
On Sept. 9, 2016, the sole shareholder of TGW Global Opportunity
Fund resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Yau Sheung Kam
Flat D, 23rd Floor, Block 19, Upper Baguio Villa
555 Victoria Road
Pokfulam
Hong Kong
TOWN & COUNTRY: Commences Liquidation Proceedings
-------------------------------------------------
On Sept. 1, 2016, the members of Town & Country Development Co.
Ltd. resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Jeffrey D. Johnstone
Broadhurst LLC
40 Linwood Street
P.O. Box 2503 Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949-7237
Facsimile: (345) 949-7725
WYOMING ASSET: Placed Under Voluntary Wind-Up
---------------------------------------------
On Sept. 15, 2016, the sole shareholder of Wyoming Asset Holding
resolved to voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Elian Fiduciary Services (Cayman) Limited
c/o Julie Hughes
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
Telephone: +1 (345) 815 1426
Facsimile: +1 (345) 945-6265
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Meeting With Haiti Heralds Stronger Trade Ties
------------------------------------------------------------------
Dominican Today reports that the foreign ministers of the
Dominican Republic, Miguel Vargas and of Haiti, and Pierrot
Delienne, announced a meeting of the Joint Bilateral Commission
set for October 19, when topics pending since the last meeting in
Port au Prince will be addressed.
They said technical staffs will advance proposals that the
governments can mutually accepted, according to Dominican Today.
The officials, who held their third meeting since Vargas was named
to the post August 16, said both governments recognize the
importance of regulating immigrants, for which the Haitian
government pledged to issue 112,000 passports to its nationals in
the Dominican Republic, the report notes.
In that regard, Vargas said Dominican Republic adheres to the
fundamental principles and values of human rights and
international law on repatriations of Haitian citizens, noting
that both governments understand that trade relations should not
be interrupted, the report relays.
Mr. Delienne reiterated that Dominican exports which comply with
customs requirements can be imported by any means into Haiti, the
report discloses.
Haiti Election
The foreign ministers assessed the importance of Haiti's elections
set for October 9 and are expected to occur in peace and with a
wide participation, the report adds.
As reported in the Troubled Company Reporter-Latin America on
July 1, 2016, Moody's Investors Service has changed the outlook on
the Dominican Republic's long term issuer and debt ratings to
positive from stable. The ratings have been affirmed at B1.
DOMINICAN REPUBLIC: Halts Agro, Livestock on Sensitive Highlands
----------------------------------------------------------------
Dominican Today reports that the Environment Ministry announced a
plan to recover the area of Valle Nuevo including Juan Bautista
Perez Rancier National Park, and issued a 120-day deadline to
farmers and squatters to leave the protected area located around
30 kilometers from the highland town of Constanza (central).
Among the measures announced by the "Mother of the Waters" Co-
management Council figure the total elimination of all agro
activities, a ban on the introduction of seeds, fertilizers and
supplies, as well as any type of motor vehicle, according to
Dominican Today.
Valle Nuevo and adjacent Omar Rancier National Park are the source
of several rivers and streams that flow to the Caribbean and the
Atlantic, and power three major hydroelectric dams, the report
notes.
As reported in the Troubled Company Reporter-Latin America on
July 1, 2016, Moody's Investors Service has changed the outlook on
the Dominican Republic's long term issuer and debt ratings to
positive from stable. The ratings have been affirmed at B1.
=============
J A M A I C A
=============
JAMAICA: Finance Minister Confident in Securing New IMF Agreement
------------------------------------------------------------------
RJR News reports that Finance Minister Audley Shaw has expressed
confidence that the Government and the International Monetary Fund
(IMF) will reach an agreement on a successor arrangement for the
Extended Fund Facility.
Minister Shaw said that based on the administration's discussions
now underway with members of the IMF's Country Team who are in the
island a Precautionary Standby Agreement will emerge, according
to RJR News.
In an address at Prime Asset Management's ninth Annual Pensions
Seminar Shaw said the new arrangement being explored would see the
administration maintaining its targets of fiscal prudence and
consolidation, the report notes.
It's likely that there will be half-yearly instead of quarterly
reviews, the report relays.
The Finance Minister says discussions are going well and the plan
is to have a seamless transfer from the Extended Fund Facility,
the report adds.
As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2016, S&P Global Ratings affirmed its 'B' long-term and
short-term foreign and local currency sovereign credit ratings on
Jamaica. The outlook on the long-term sovereign credit ratings
remains stable. In addition, S&P affirmed its transfer and
convertibility assessment at 'B+'.
NORANDA ALUMINUM: Bids Submitted for Company's Assets
-----------------------------------------------------
RJR News reports that competing bids have been submitted for
bankrupt US aluminum producer Noranda's assets including its
bauxite mining operation in Jamaica.
According to a court filing the bids were submitted during [the
Sept. 28] auction, RJR News notes.
They came from ARG International, a Swiss company, and MFR, a
company that specialises in industrial and commercial asset
disposal and liquidation, according to RJR News.
Noranda spokesman, John Parker, confirmed there were two bidders,
says the report.
A Judge is expected to decide which bidder is the winner during a
sale hearing in St. Louis, the report relays.
Until ARG's entry, it appeared that at least some of Noranda's
upstream assets were destined for liquidation, the report notes.
Noranda, based in Franklin, Tennessee, filed for Chapter Eleven
bankruptcy reorganisation on February 8.
===========
M E X I C O
===========
MEXICO: Finance Head Assured on Debt Plan Even With Rate Rise
-------------------------------------------------------------
Eric Martin and Nacha Cattan at Bloomberg News report that Mexican
Finance Minister Jose Antonio Meade said he's confident that
increases in the key interest rate and the decline in the nation's
currency will have no more than a marginal effect on the nation's
debt level and fiscal balance.
Minister Meade, who replaced Luis Videgaray three weeks ago,
predicted Mexico will maintain its credit rating, on negative
outlook at S&P Global Ratings and Moody's Investors Service, given
its plan to have a primary surplus of 0.4 percent of gross
domestic product in 2017, according to Bloomberg News.
The nation's currency commission, which Minister Meade leads, has
refrained from selling dollars to bolster the currency because the
market has maintained sufficient liquidity even as the peso
tumbled to a record low, he said in an interview, Bloomberg News
notes.
Mexico's central bank lifted the nation's interest rate by a half-
point to 4.75 percent, the highest level since 2009, the report
relays. The increase reflected concern for the nation's public
finances and growth and improving odds for Donald Trump to win the
U.S. presidential election, which sent the peso to an all-time low
near 20 per dollar earlier this week, Bloomberg News notes.
"In my view, and according to the very standards set by the
ratings companies, there wouldn't be elements that would bring
about a change" in Mexico's credit grade, Minister Meade said,
Bloomberg News says.
Selloffs this year in Mexico's currency have forced policy makers
to respond with interest-rate increases and spending cuts to
reassure investors about the nation's economic management, protect
it against inflation and prevent further market instability,
Bloomberg News notes.
Traders often use the peso, the most actively-traded currency in
emerging markets, to hedge risks, which in turn makes the currency
more vulnerable to price swings, Bloomberg News discloses.
On Sept. 8, a day after being sworn in, Meade went to Congress's
lower house to present President Enrique Pena Nieto's budget
proposal for next year, the report relays. The plan estimates
that the broadest measure of debt will reach 50.5 percent of gross
domestic product this year and drop to 50.2 percent next year, the
report notes. If a rebound in oil prices gives the nation revenue
next year that exceeds the ministry's expectations, the government
will use those funds to reduce the nation's debt burden, Minister
Meade said, Bloomberg News relays.
Minister Meade suggested that the peso exchange rate incorporated
in the final budget passed by Congress may need to be changed from
the 18.2 per dollar assumption in the proposal sent to lawmakers,
given that private-sector analysts have lowered their forecasts
for the currency since the proposal was presented earlier this
month, Bloomberg News relays.
Minister Meade, 47, is taking his second turn as finance minister
after serving in the role for almost two years at the end of the
presidency of Pena Nieto's predecessor, Felipe Calderon, of the
rival National Action Party, the report notes. Minister Meade was
one of the few cabinet members who stayed on to become part of
Pena Nieto's government in December 2012, serving as Mexico's
foreign minister before heading the Social Development Ministry,
Bloomberg News says.
With a bit more than two years in his job this time around -- if
Minister Meade serves through the end of Pena Nieto's term in 2018
-- Minister Meade said he wants his greatest achievement to be
contributing to the further strengthening of the nation's
macroeconomic management, Bloomberg News discloses.
"Mexico has more than two decades of distinguishing itself for
economic prudence," he said. "It makes sense that we look to end
our period of counter-cyclical policy and return little by little
to primary surpluses, with a level of debt that's reasonable and
manageable," Bloomberg News adds.
=======
P E R U
=======
CAMPOSOL HOLDING: Fitch Affirms B- IDR; Removes From Watch Neg.
---------------------------------------------------------------
Fitch Ratings has removed from Rating Watch Negative and affirmed
at 'B-' the Foreign and Local Currency Issuer Default Ratings
(IDRs) for Camposol Holding Ltd. (Camposol) and its wholly-owned
subsidiary Camposol S.A. The Rating Outlook is Stable. In
addition, Fitch has affirmed Camposol S.A.'s senior secured notes
at 'B-/RR4'. Camposol's Recovery Rating has been capped at 'RR4'
reflecting average recovery prospects.
KEY RATING DRIVERS
Stable Outlook:
The Stable Outlook reflects Fitch's view that Camposol will
improve its leverage and repay the remaining amount of its 9.875%
notes due Feb. 2, 2017, whose holders did not participate in the
company's debt exchange offer. In May 2016, Camposol exchanged an
aggregate principal amount of USD147.5 million notes due 2017,
representing 73.75% of holders' participation for the newly issued
10.5% senior secured notes due 2021. Fitch expects the company to
repay the remaining USD52.5 million notes due in 2017 with a
medium-term committed bank loan of USD15 million, a USD 10 million
shareholder's subordinated loan and cash flow generation.
Shareholders' Commitment and Support:
Fitch factors into Camposol's ratings the tangible support from
its shareholder, which was evidenced by a capital injection of
USD5 million in March 2016. Also, the shareholder is committed to
providing a subordinated loan of USD10 million and a working
capital credit line of up to USD20 million should the company need
it. Shareholder commitment is also reflected by the capex of USD33
million being executed in 2016.
Improvement of Operating Results:
Camposol has improved its operating results with EBITDA of USD48
million as of LTM ended June 30, 2016. The EBITDA increased from
2014 and 2015 (USD34 million and USD42 million, respectively) was
mainly due to higher volumes of blueberry sales. Camposol's
blueberry segment has allowed the company to improve its EBITDA
margin from 12.9% in 2014 to 15.6% and 18.3% in 2015 and LTM June
2016, respectively. The gross margin for blueberries is higher
than 50% compared to 30% on average. The shrimp business reported
positive EBITDA in the first half of 2016.
Leverage Reduction and Positive FCF:
For LTM June 2016, free cash flow generation (FCF) was positive
due to lower capex and improvements in working capital management
explained by the reduction in inventories of preserved products
given the company's decision to focus on the fresh and frozen
segments. Following years of intensive capex oriented to increase
and diversify the product portfolio, capex for 2016 will be USD33
million mainly allocated in new blueberry plantations. Higher
operating cash flow generation coming from higher yield phases of
avocado and blueberry plantations (only 51% of total planted areas
have reached peak yields) and improvements in shrimp production
would allow the company to maintain a positive FCF and reduce
leverage.
Fitch expects net leverage would decline to below 3.5x by the end
of 2016. Camposol's net leverage decreased to 4.2x in June 2016
from 5.3x in FYE15 due to higher EBITDA as well as debt reduction.
As of June 2016, Camposol's total debt was USD228 million (USD251
million as of December 2015) mainly explained by its USD147.5
million notes due 2021 and the remaining USD52.5 million note due
February 2017. The debt is secured by land, biological assets,
machinery and equipment and all licenses, including water
licenses. The company still has unencumbered assets consisting of
the seafood business.
Exposure to Climatic Risks and International Prices:
Camposol is exposed to seasonality, volatility on prices and
external factors such as climatic events like 'El Nino' or 'La
Nina' phenomenon and/or proliferation of existing or new plagues.
All of which could negatively impact production yields and cash
flow generation. In the last five years, Camposol has faced
several 'El Nino' phenomenon that have negatively impacted
asparagus crops as well as shrimp yields due to higher mortality.
The company is investing in intensive shrimp ponds to reduce its
exposure to environmental issues. Camposol has decided to exit the
asparagus business as yields decreased due to fields reaching
mature stages. The 474 hectares used to plant asparagus will be
dedicated to blueberry plantations.
High Product and Geographical Concentration:
Camposol's production is originated in the north of Peru. The
company has been diversifying its production, but 40% of its
revenues are still concentrated on two products (avocado and
blueberry). Any variation in prices, costs and volumes of these
products would have an important impact on the company's results.
90% of Camposol's revenues are sold in Europe (50%) and the United
States (40%).
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for the issuer
include:
-- Increasing production, mainly in blueberries and avocados,
as new plantations are entering into high-yield phases;
-- Recovery in shrimp production and processing other seafood
products in order to maximize utilization capacity of new
facilities;
-- Three-year average prices for most agriculture products;
-- Fixed costs at level reduced in 2015 (13% of revenues);
-- Capex at USD33 million for 2016 and USD25 million for 2017;
-- No dividend payments;
-- Payment of the remaining USD52.5 million notes due 2017;
-- Shareholders' tangible support of USD10 million subordinated
loan already committed;
-- A strong 'El Nino' impact is not considered into base case
assumptions.
RATING SENSITIVITIES
Negative Rating Action: Factors that could lead to a rating
downgrade include deterioration of Camposol's liquidity without
any tangible additional support from shareholders, and/or
reduction in profitability as a result of lower production volumes
and yields due to climatic events. Another potential detriment to
Camposol's ratings would be a decline of product prices due to
lower demand for its key markets resulting in gross leverage
levels consistently above 6.0x and/or interest coverage declining
to 1.5x or lower.
Positive Rating Action: Factors that could lead to a positive
rating action would be an improvement in Camposol's financial
flexibility following the repayment of the notes as well as an
increase in cash flow generation while maintaining a good
liquidity and a sustainable gross leverage below 4.0x.
LIQUIDITY
Following debt exchange, Camposol's available credit lines for
short-term financing would increase to USD38 million by YE2016
from its lowest level of USD23 million as of June 30, 2016. This
increase is explained by new credit lines from banks and does not
include the additional shareholders' credit line of USD20 million
for working capital if required. Camposol's credit lines had
reduced to USD36 million in 2015 from USD60 million in 2014.
Fitch expects Camposol's cash position to be around USD60 million
as of YE2016. This amount considers cash position of about USD30
million as of June 2016, new mid-term and subordinated loans
already committed and own cash generation during the second half
of the year when 60% of production is concentrated. Fitch expects
these funds to be enough to repay the notes due February 2017.
Working capital management has been improving since 2015 when the
Company decided to exit the preserved business. After the debt
repayment, Camposol expects to maintain its minimum cash target of
USD20 million.
FULL LIST OF RATING ACTIONS
Fitch has affirmed the following ratings:
Camposol Holding Ltd.
-- Long-term foreign currency IDR at 'B-';
-- Long-term local currency IDR at 'B-'.
Camposol S.A.
-- Long-term foreign currency IDR at 'B-';
-- Long-term local currency IDR at 'B-';
-- Senior secured notes due 2017 at 'B-/RR4';
-- Senior secured notes due 2021 at 'B-/RR4'.
The Outlook is Stable.
======================
P U E R T O R I C O
======================
APRICUS BIOSCIENCES: Closes Sale of Common Stock and Warrants
-------------------------------------------------------------
Apricus Biosciences, Inc., and certain investors mutually agreed
to terminate a Securities Purchase Agreement, dated Sept. 22,
2016, effective immediately. No shares of common stock were sold
under the Original Agreement and no additional shares of the
Company's common stock will be offered or sold pursuant to the
Original Agreement or the prospectus supplement dated as of Sept.
22, 2016, and filed with the Securities and Exchange Commission on
Sept. 26, 2016. The parties terminated the Original Agreement in
order to conduct a new registered direct offering pursuant to a
new purchase agreement with the Investors.
On Sept. 27, 2016, the Company entered into the Purchase Agreement
with the Investors for the sale by the Company of an aggregate of
10,824,018 common shares at a purchase price of $0.345 per share.
Concurrently with the sale of the Common Shares, pursuant to the
Purchase Agreement the Company also sold warrants to purchase an
aggregate of up to 8,118,014 shares of Common Stock. The
aggregate gross proceeds for the sale of the Common Shares and
Warrants will be approximately $3.7 million. Subject to certain
ownership limitations, the Warrants will be exercisable six months
following the closing date at an exercise price equal to $0.45 per
share of Common Stock, subject to adjustments as provided under
the terms of the Warrants. The Warrants are exercisable for five
years from the initial exercise date. The closing of the sales of
these securities under the Purchase Agreement occurred on
Sept. 28, 2016.
The net proceeds to the Company from the transactions, after
deducting the placement agent's fees and expenses but before
paying the Company's estimated offering expenses, and excluding
the proceeds, if any, from the exercise of the Warrants, are
expected to be approximately $3.4 million. The Company intends to
use the net proceeds from the transactions for general corporate
and working capital purposes.
The Common Shares (but not the Warrants or shares issuable upon
exercise of the Warrant) were offered and sold by the Company
pursuant to an effective shelf registration statement on Form S-3,
which was filed with the SEC on August 12, 2014 and subsequently
declared effective on August 25, 2014 (File No. 333-198066), and a
related prospectus.
As previously disclosed, the Company entered into an engagement
letter on Sept. 20, 2016 with Rodman & Renshaw, a unit of H.C.
Wainwright & Co., LLC, pursuant to which Wainwright agreed to
serve as exclusive placement agent for the issuance and sale of
the Common Shares and Warrants. The Company has agreed to pay
Wainwright an aggregate fee equal to 7.0% of the gross proceeds
received by the Company from the sale of the securities in the
transaction. Pursuant to the Engagement Letter, the Company also
agreed to grant to Wainwright or its designees warrants to
purchase up to 5.0% of the aggregate number of shares of Common
Stock sold in the transactions. The Engagement Letter has a six
month tail and right of first offer period (subject to certain
limitations), indemnity and other customary provisions for
transactions of this nature. The Wainwright Warrants have
substantially the same terms as the Warrants, except that the
Wainwright Warrants will have a term of five years and an exercise
price equal to 125% of the Purchase Price. The Wainwright
Warrants and the shares issuable upon exercise of the Wainwright
Warrants will be issued in reliance on the exemption from
registration provided by Section 4(a)(2) of the Securities Act as
transactions not involving a public offering and in reliance on
similar exemptions under applicable state laws.
The Company will also pay Wainwright a reimbursement for legal
fees and expenses of the placement agent in the amount of $50,000.
A full-text copy of the Form 8-K filing is available at:
goo.gl/80fYf6
About Apricus Biosciences
Apricus Biosciences, Inc., is a Nevada corporation that was
initially formed in 1987. The Company has operated in the
pharmaceutical industry since 1995. The Company's current focus
is on the development and commercialization of innovative products
and product candidates in the areas of urology and rheumatology.
The Company's proprietary drug delivery technology is a permeation
enhancer called NexACT.
Apricus reported a net loss of $19.02 million in 2015, a net loss
of $21.8 million in 2014 and a net loss of $16.9 million in 2013.
The Company's balance sheet at June 30, 2016, showed total assets
of $6.17 million, total liabilities of $15.60 million and
stockholders' deficit of $9.44 million.
BDO USA, LLP, in La Jolla, California, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2015, citing that the Company has negative
working capital and has suffered recurring losses and negative
cash flows from operations that raise substantial doubt about its
ability to continue as a going concern.
DF SERVICING: Court to Consider Plan Confirmation on Dec. 13
------------------------------------------------------------
The Bankruptcy Court for the District of Puerto Rico has
determined, in the case of DF Servicing, LLC, et al., that a
disclosure statement is not required and has thus ordered that a
hearing will be held on December 13, 2016, at 10:00 a.m. in Old
San Juan, Puerto Rico, for the consideration of the confirmation
of the Debtors' Plan.
Written objections to the Plan must be formally filed on or before
21 days prior to the Confirmation Hearing.
About DF Servicing
Engaged in the business of purchase and sale of construction
projects, DF Servicing, LLC, DF Tier I, LLC, DF Investments, LLC,
and DF Holdings LLC filed Chapter 11 bankruptcy petitions (Bankr.
D.P.R. Case Nos. 15-10253 to 15-10256) on Dec. 24, 2015. The
petitions were signed by Mark Mashburn, the president.
Charles A Cuprill, PSC Law Office, serves as counsel to the
Debtors, CPA Luis R. Carrasquillo & Co, P.S.C. as financial
consultant, AFS CPA Group, LLC, serves as auditor, and Salichs Pou
& Associates, PSC, as special counsel.
On Feb. 3, 2016, the Court ordered the administrative
Consolidation of the Chapter 11 cases of DF Servicing, LLC, Case
No. 15-10253(ESL); DF Investments, LLC, Case No. 15-10254(ESL); DF
Holdings, LLC, Case No. 15-10255(ESL); and DF Tier I, LLC, Case
No. 15-10256(ESL).
ENTERPRISE BUSINESS: Confirmation Hearing Set for Nov. 3
--------------------------------------------------------
Judge Edward A. Godoy of the U.S. Bankruptcy Court for the
District of Puerto Rico approved the Disclosure Statement filed by
Enterprise Business Corporation in support of its Chapter 11 Plan.
A hearing for the consideration of the confirmation of the Plan
will be held on November 3, 2016, at 9:30 a.m., in Ponce, Puerto
Rico.
Enterprise Business Corporation sought bankruptcy protection
(Bankr. D.P.R. Case No. 13-10452) on Dec. 17, 2013. Nydia
Gonzalez Ortiz, Esq. of Santiago & Gonzalez, represents the
Debtor.
SUCN. PEDRO: Taps Luis R. Carrasquillo as Financial Consultant
-------------------------------------------------------------
Sucn. Pedro Bigay Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire CPA Luis R.
Carrasquillo & Co., P.S.C. as its financial consultant.
The firm will assist the Debtor in the restructuring of its
affairs by providing advice on strategic planning; participate in
negotiations with creditors; and prepare the Debtor's plan of
reorganization and business plan.
The firm's professionals and their hourly rates are:
Luis Carrasquillo, CPA $175
Marcelo Gutierrez, CPA $125
Other CPAs $90 - $125
Lionel Rodriguez Perez $90
Carmen Callejas Echevarria $85
Alfredo Segarra $80
Janet Marrero $45
Iris Franqui $45
In a court filing, Mr. Carrasquillo disclosed that he and other
members of the firm are "disinterested persons" as defined in
section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Luis R. Carrasquillo
CPA Luis R. Carrasquillo & Co., P.S.C.
28th Street, #TI-26
Turabo Gardens Avenue
Caguas, PR 00725
Phone: 787-746-4555 and 787-746-4556
Fax: 787-746-4564
Email: luis@cpacarrasquillo.com
About Sucn. Pedro Bigay Inc.
Sucn. Pedro Bigay Inc. filed a Chapter 11 bankruptcy petition
(Bankr. D.P.R. Case No. 16-00055) on January 8, 2016. Jesus
Santiago Malavet, Esq., at Santiago Malavet and Santiago Law
Office initially served as bankruptcy counsel to the Debtor. The
firm later resigned and the Debtor retained Carlos A. Piovanetti
Dohnert as counsel.
UNIVERSITY OF PUERTO RICO: S&P Affirms 'CC' Rating on P & Q Bonds
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'CC' long-term and underlying
rating (SPUR) on the University of Puerto Rico's (UPR) series P
and series Q bonds, and affirmed its long-term 'CC' rating on the
series 2000A bonds issued by the Puerto Rico Industrial, Tourist,
Educational, Medical, and Environmental Control Facilities
Authority for the Plaza Universitaria Project (UPR) bonds. At the
same time, S&P affirmed its 'CC' rating on the University. The
outlook for all ratings remains negative.
S&P understands that on June 30, 2016, the governor of Puerto Rico
signed an executive order that suspended the university's ability
to make monthly payments to the trustee for its debt obligations
through Jan. 31, 2017.
"The negative outlook reflects the potential for a default on
UPR's rated bonds following the implementation of the executive
order suspending trustee payments for future bond payments," said
S&P Global Ratings analyst Charlene Butterfield. "In addition,
the negative outlook reflects uncertainty regarding receipts of
future state appropriations given the commonwealth's ongoing
fiscal crisis and potential future spending cuts."
S&P affirmed the rating on the university given the limits imposed
by the executive order, and the potential for default on the
series P, Q, and 2000A bonds, combined with the possibility of
delay or reduction in appropriations (66% of revenues in fiscal
2015) related to Puerto Rico's ongoing fiscal crisis.
The university system's revenue bonds are obligations of the
University of Puerto Rico, secured primarily by a first lien on
tuition and fees and certain other specifically pledged revenues.
S&P views this as an unlimited student fee equivalent pledge.
S&P could lower the rating on the series P, Q, and 2000A bonds to
'D' if the trustee is unable to pay UPR bondholders for scheduled
debt service within the next year. Given the uncertainty
regarding future payment of debt service, S&P do not expect to
revise the outlook to stable during the next year.
================================
T R I N I D A D & T O B A G O
================================
TRINIDAD & TOBAGO: Gov't. Must Help Rest of Tourism Industry
--------------------------------------------------------------
Trinidad Express reports that with international arrivals down to
18,000 a year in Tobago, according to data being used by Tobago
Hotel and Tourism Association (THTA), most hoteliers on the island
are looking to the establishment of the Sandals Resorts
International brand to re-energise the industry.
But Government must not forget to incentivise the rest of the
industry to bring itself up to standard, hotel consultant Rene
Seepersadsingh said, following Finance Minister Colm Imbert's
budget statement which included Government's proposal to introduce
a Sandals Resort and accompanying Beaches Hotel to Tobago,
according to Trinidad Express.
The possibility of a Sandals investment at the Golden Grove Estate
in Tobago was first mentioned last month by Prime Minister Dr
Keith Rowley, the report notes.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Ups Debt Swap Exchange Offer, Sets Limit
----------------------------------------------------------------
Christine Jenkins at Bloomberg News reports that Venezuela's
state-owned oil company offered an improved deal to bondholders as
it seeks to push back debt payments coming due this year and next.
Petroleos de Venezuela SA said it will pay investors as much as
1.22 times the face value of the notes they hold in exchange for
longer-maturity securities, after offering no price premium in a
proposal Sept. 16. While the original swap offer was for $7.1
billion of bonds, PDVSA said it wouldn't swap more than $5.325
billion of securities, according to Bloomberg News. The new bonds
maturing in 2020 will continue to be backed by a stake in Citgo
Holding Inc.
Bloomberg News notes that PDVSA is seeking to postpone debt
payments after the collapse in oil prices and a decline in crude
output hampered its ability to pay, putting the country of default
watch for the past two years. The country has always managed to
service its debts, even as foreign-currency reserves fell and its
hard-currency drought led to shortages and protests, Bloomberg
News relays.
"The offer is still less than what I would have expected to make
this swap attractive enough to succeed," said Russ Dallen, a
managing partner at brokerage Caracas Capital, Bloomberg News
says.
The 1.22 times face value offer applies to $4.1 billion of notes
due in November 2017. The $3 billion of securities that mature in
April of that year would be exchanged at 1.17 times face value,
according to a statement on the oil company's website, Bloomberg
News notes. PDVSA also said it was extending the early tender
deadline to Oct. 6. D.F. King & Co. is the exchange agent for the
deal.
As reported in the Troubled Company Reporter-Latin America on
March 10, 2016, Moody's Investors Service changed the outlook on
Petroleos de Venezuela (PDVSA)'s ratings to negative from stable.
Moody's also affirmed PDVSA's Caa3 issuer rating and lowered the
company's baseline credit assessment (BCA) to caa3 from caa1.
These rating actions follow Moody's decision on March 4, 2016, to
change the outlook on the Government of Venezuela's bond ratings
to negative from stable.
VENEZUELA: China is Cutting Off Cash to Country
-----------------------------------------------
Patrick Gillespie at CNN reports that after pouring billions into
Venezuela over the last decade, China is cutting off new loans to
the Latin American nation. It's a major reversal of relations
between the two nations, experts say. It also comes at the worst
time for Venezuela, which is spiraling into an economic and
humanitarian crisis, according to CNN.
"China is not especially interested in loaning more money to
Venezuela," says Margaret Myers, a director at Inter-American
Dialogue, a Washington research group that tracks loans between
China and Latin America, the report notes.
Since 2007, China's state banks loaned Venezuela $60 billion,
according to the Inter-American Dialogue, the report relates.
That's more that it loaned to any other Latin American country.
China is considered Venezuela's most important creditor, the
report notes.
Of that, Venezuela still owes China approximately $20 billion,
experts say, and there's no sign that it can pay back the amount
amid its crisis, the report relays.
Venezuela pays back the vast majority of its loans to China with
oil shipments, the report relays. Last year, Venezuela's state-
run oil company, PDVSA, shipped about 579,000 barrels of oil per
day to China, according to the company's financial audit, says the
report.
But this year, Venezuela -- which has the world's largest oil
reserves -- has seen oil production crash to a 13-year low, the
report says. Some of its service providers, such as Schlumberger
(SLB), have dramatically lowered operations due to unpaid bills
from the Venezuelan government, reports CNN.
Socialist President Nicolas Maduro has led a regime that
mismanaged Venezuela's resources and pushed the economy into a
crisis, experts say, the report discloses. China has now run out
of patience.
"The Chinese have allowed the Venezuelans to be stupid," says
Derek Scissors, a resident scholar at the American Enterprise
Institute who tracks Chinese investment around the world,
according to CNN. "The Chinese don't want to allow the Venezuelans
to be stupid anymore," Mr. Scissors added.
Like the government, Chinese companies too are losing interest
interest in Venezuela, the report discloses. Since 2010, Chinese
companies have invested $2.5 billion a year on average in projects
in Venezuela. In the first half of this year, they only invested
$300 million, according to AEI, the report relays.
Mr. Scissors emphasizes that the data can change if China hands
gives even one big loan to Venezuela before the end of the year,
the report notes. However, he too agrees China is in no mood to
dole out more money, adds CNN.
That souring sentiment played out last year when the China Railway
Engineering Company halted construction on a "bullet train" it had
been working on in Venezuela, the report discloses. The train's
construction sites, once a sign of blossoming relations, now sit
abandoned.
According to CNN, China long saw Venezuela as one of its top
allies in Latin America, experts say. In exchange for cash and
infrastructure developments, China wanted a secure source of oil
for years to come, the report discloses.
But China's ambitions have hit the reality of the crisis in
Venezuela, where inflation is expected to skyrocket 700% and the
economy is projected to shrink 8% this year, the report, citing
IMF, discloses. Its currency has plummeted in value and many
experts believe Venezuela could default on its debt, the report
notes.
With dwindling revenues, Venezuela can't pay for many imports of
food and medicine, causing massive shortages in those items. Some
Venezuelans, who can, are even traveling to the United States to
buy basics like toilet paper and tuna fish, says CNN.
Amid widespread protests for Maduro to resign, his government must
now push on without China's help, the report relays.
"In the specific case of Venezuela, it's true that [the Chinese]
are not willing to continue acting as the lender of last resort,"
the report quoted Mauro Roca, a Latin American economist at
Goldman Sachs, as saying. "The country is already in a deep
crisis, but things can unravel even more."
=================
X X X X X X X X X
=================
* LATAM: Hurricane Matthew Powers Towards Jamaica and Haiti
-----------------------------------------------------------
BBC News reports that one of the most powerful Atlantic hurricanes
in recent years is expected to batter parts of the Caribbean.
Hurricane Matthew has been heading north toward densely populated
Jamaica and Haiti -- unleashing winds of 150 mph -- enough to
destroy homes and power lines, according to BBC News.
Jamaica started warning people to evacuate and prepare two days
ago, BBC News notes.
But some islanders "said they would rather stay" to protect their
homes, the report relays.
Authorities have scrambled to protect buildings and shelter
residents as the storm approaches, expected to bring with it
torrential rain that may trigger landslides and floods, the report
says.
"No turning back now", said Minister of local Government, Desmond
Mackenzie. "It is a matter of how long we have to wait this out,"
the report relays.
As Jamaica starts to feel some of the effects of Matthew, Haiti is
expected to suffer the main force of the storm with authorities
there telling people to stock up on food and water, the report
discloses.
The difficulty facing many Haitians however is that thousands of
people are still living in tents following the huge earthquake in
2010 and there are worries this storm could be devastating for the
country, the report notes.
With both airports now closed, officials say that about 1,300
emergency shelters have been constructed, enough to accommodate
340,000 people, the report relays.
Warnings have been broadcast over the radio stations to be
prepared, with residents being told to evacuate to shelters if
they live in buildings at risk of collapse, the report relays.
Southern areas of the Caribbean island are expected to see the
worst of the heavy rain and powerful winds as it continues its way
north towards Cuba, the report adds.
***********
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 commercial 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 * * *