/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/161007.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, October 7, 2016, Vol. 17, No. 199 Headlines A R G E N T I N A BANCO HIPOTECARIO: Moody's Assigns B3 Local Currency Debt Rating B R A Z I L SAMARCO MINERACAO: Bonds Plummet After Missed Interest Payment SAMARCO MINERACAO: Hires Houlihan as Financial Advisor C A Y M A N I S L A N D S ADAR WORLD: Shareholder to Hear Wind-Up Report on Oct. 24 ASHDOWN INTERNATIONAL: Members' Final Meeting Set for Nov. 1 BADEN INVEST: Sole Member to Hear Wind-Up Report on Oct. 27 BRISPHER HOLDINGS: Shareholders' Final Meeting Set for Oct. 24 CAMBRIDGE COMPANY: Shareholders' Final Meeting Set for Oct. 28 CHEPSTOW CAPITAL: Shareholders' Final Meeting Set for Oct. 17 ELECTRA INTERNATIONAL: Shareholders' Final Meeting Set for Oct. 21 GRF FUND: Shareholders' Final Meeting Set for Oct. 20 HANNIBAL LEASING: Sole Member Receives Wind-Up Report HARBORWALK GLOBAL: Members' Final Meeting Set for Nov. 11 INDEPENDENT DEVELOPMENT: Members' Final Meeting Set for Oct. 28 JULYSUNNY 747-01: Sole Member Receives Wind-Up Report VERTEX ORBIT: Shareholders' Final Meeting Set for Oct. 18 M E X I C O MEXICO: Finance Head Assured on Debt Plan Even With Rate Rise SAN LUIS STATE: Moody's Cuts Issuer Rating to Ba3/Baa1.mx P U E R T O R I C O EJS INCORPORADO: Hires Padilla as Accountant MOTEL TROPICAL: Unsecureds to Recoup 1% Under First Amended Plan SANDWICH D' LIGHT: Disclosures OK'd; Nov. 1 Plan Hearing Set T R I N I D A D & T O B A G O CL FIN'L: Gov't Committed to Finding Solution to CLICO Collapse * TRINIDAD & TOBAGO: Need to Avoid 1982/1983 Financial Crisis - - - - - ================= A R G E N T I N A ================= BANCO HIPOTECARIO: Moody's Assigns B3 Local Currency Debt Rating --------------------------------------------------------------- Moody's Investors Service assigned a B3 global scale local currency debt rating to Banco Hipotecario S.A. (Hipotecario)'s Class XL notes for a total amount of up to $400 million peso equivalent, which will be due in 39 months. The notes are governed by New York law, and will be denominated and subscribed in Argentine pesos and will be payable in US dollars at the specified exchange rate, and sold in the local and foreign capital markets. The debt rating has a stable outlook. The following rating was assigned to Banco Hipotecario S.A.: -- Class XL notes in pesos equivalent for up to $400 million B3 Global Local Currency Debt Rating RATINGS RATIONALE Moody's B3 local currency rating assigned to Hipotecario's notes derives from its b3 baseline credit assessment (BCA), and are aligned to the government bond rating of Argentina. The bca incorporates the bank's average asset quality metrics, relative to peers, which result from a balanced business focus on mortgage and consumer lending, and its capitalization ratio of 12.5% as of 2Q2016, which has been reasonably steady for the past three years. The 1.77% nonperforming loan ratio (NPL) reported in 2Q2016 reflects the recent fast pace of loan growth, but it is well protected by reserves at levels of 106% of NPLs. The ratings also incorporate Hipotecario's higher reliance on wholesale deposits, relative to other Argentine banks, which translates into higher funding costs and may expose it to refinancing risks. Moody's said, "We acknowledge the bank continues to work on improving its funding mix, which will support its profitability in a scenario of rising interest rates and increasing competition." Hipotecario's sizable non-interest income, in the form of fees and commissions, helps support income stability. The stable outlook on the bank's rating is in line with the stable outlook on the B3 rating for Argentina's government bonds. What could move the rating up or down The bank's rating is effectively aligned to the Argentine sovereign's B3 rating and stable outlook, and consequently there is no upward pressure at this time. The bank could face downward rating pressure if its asset quality or capitalization metrics deteriorate substantially, and its profitability. Hipotecario is 58.4% owned by Argentina's national government (B3, stable) through Banco de la Naci¢n Argentina (unrated) and ANSES (unrated), and 30% owned by Inversiones y Representaciones S.A. (IRSA, unrated). However, IRSA holds 46.6% of the voting shares and appoints the majority of the bank's board. The principal methodology used in this rating was Banks published in January 2016. =========== B R A Z I L =========== SAMARCO MINERACAO: Bonds Plummet After Missed Interest Payment -------------------------------------------------------------- Paul Kiernan and Benjamin Parkin at The Wall Street Journal reports that troubled Brazilian mining company Samarco Mineracao SA's publicly traded bonds plummeted to eight-month lows on Sept. 27 after it missed an interest payment on $500 million in bonds. Bank of New York Mellon, the trustee on the debt, said that Samarco had missed the payment to bondholders but added that the company is still in the 30-day grace period for payment. A spokeswoman for the bank declined to comment further, according to The Wall Street Journal. Samarco declined to comment. The price of Samarco's 10-year bond, due 2024, was recently down 6.2% at 32 cents on the dollar on Sept. 27, its lowest level since January, the report notes. Analysts noted that Samarco is also scheduled to make coupon payments in October and November for bonds due in 2023 and 2022, the report relays. "We expect both bonds not to pay their coupon," said Cedric Rimaud, director of emerging markets research at bond research firm Gimme Credit, the report relays. "A restructuring is becoming necessary," Mr. Rimaud added. The report notes that Samarco, a joint-venture between Brazilian mining giant Vale SA and Australia's BHP Billiton Ltd., has had virtually no cash flow since last November, when a tailings dam at its iron-ore operation collapsed. The failing at the Fundao dam is believed to be Brazil's worst-ever environmental disaster and one of the worst in the history of mining, with 19 people killed as waste from the collapsed dam destroyed villages and polluted more than 400 miles of waterways, the report relays. The company's bonds have seesawed in the nearly 11 months since the disaster, with Samarco struggling to find a path forward after its environmental licenses were revoked and production halted at its mines. Bonds have plunged as low as 31 cents on the dollar in January and risen as high as 62 cents after the company and its shareholders reached a tentative settlement with Brazil's government in March, the report notes. Two months later, federal prosecutors filed a civil lawsuit against the mining companies in which they alleged 155 billion reais ($48 billion) in damages, triggering another selloff. The prosecutors also sought to nullify the previous settlement, which a judge suspended in July, raising the prospect of a drawn-out litigation process, the report discloses. Vale and BHP Billiton have agreed to support Samarco in its efforts to fix the environmental and social devastation left by the avalanche of mud from its tailings dam, the report says. But since the parent companies don't guarantee Samarco's debt, they have no obligation to its bondholders, notes WSJ. The major question facing the bondholders now is whether Samarco will ever be allowed to operate again, and if so, when, the report relays. Vale and BHP, which initially predicted Samarco's mines to restart by the end of this year, have more recently demurred from providing specific time frames, the report notes. As reported in the Troubled Company Reporter-Latin America on July 25, 2016, Moody's Investors Service has downgraded to C from Caa2 the corporate family rating of Samarco Mineracao S.A. and the ratings of its senior unsecured notes due 2022, 2023 and 2024. SAMARCO MINERACAO: Hires Houlihan as Financial Advisor ------------------------------------------------------ Lucy Monteiro, Fabiana Lopes, Camila Dias, and Aline Lima at DebtWire reports that an ad hoc group of Samarco Mineracao's bondholders has decided to hire Houlihan Lokey, working in association with Brazilian Metrica Investments, as financial advisor, according to a source close and a source familiar to the matter. Holders were also close to tapping Dechert and Pinheiro Guimaraes as legal advisors, the first source close said, according to DebtWire. Samarco (D/C/C) missed a coupon payment on September 26, and entered a 30-day cure period. The report notes that the Brazilian miner's financial situation has deteriorated since the company ceased operations in November last year, after a dam breach caused it to lose its operating license. As of December 31, 2015, Samarco's cash and cash equivalents were BRL 1.8 billion (USD 552.6 million), according to its most recent earnings release, the report relays. There are about 10 to 15 funds in the group, "split between hedge funds and real money," according to the first source, says the report. Large holders included Alliance Bernstein, Prudential, BlackRock, Moneda and Calpers, as reported, the report discloses. It is unclear when Samarco could restart operations or how much it and shareholders Vale and BHP Billiton will ultimately have to pay in fines and reparations, the report notes. As such, it is difficult to say what kind of restructuring could be reached, and the possibility of a recuperacao judicial bankruptcy protection request is growing, according to a second source close and a second source familiar with the matter, the report relays. "It is very likely that a bankruptcy protection request will occur," the second source familiar with the matter said, DebtWire discloses. That Samarco is not generating any cash and Vale and BHP are not providing any financial support for Samarco to meet debt obligations points to a need for protection, the second source familiar said, the report notes. "Bankruptcy in Brazil preserves the ability of shareholders to keep ownership and control while haircutting creditors forcibly," DebtWire, citing the second source close as saying, relays. "The window of opportunity for restructuring and surviving is closing very fast." A successful out-of-court restructuring would require a quick return to operations, the report discloses. However, this does not mean a bankruptcy protection request will happen immediately, said a restructuring lawyer, notes DebtWire. "The non-payment of the coupon is not something that would trigger a bankruptcy protection request in the short term, because bondholders can organize themselves and provide a waiver," the lawyer said, the report notes. "However, if it takes a long time for the company to receive authorization to operate again, the pressure will increase and Samarco will not have other alternatives except to request the bankruptcy protection." The report relays that creditors won't want equity. "I think an out-of-court restructuring is a better approach, but it will depend on how all the parties wish to behave," the first source close said, the report relays. It would be more efficient, less costly and faster, according to the first source close, adds the report. A solution involving a debt-for-equity exchange, however, is seen as an unlikely scenario given the uncertainties in the case, the first source close said, the report relays. Samarco's US$500 million 5.375% bonds due 2024 last traded at 35.5 on September 29, according to MarketAxess. The company's USD 700 million 5.750% senior unsecured 2023 bonds traded at 34.4 on Sept. 30 in small trades, and its US$1 billion 4.125% senior unsecured bonds due 2022 last traded at 34.2 Sept. 30, notes the report. Houlihan Lokey, Metrica Investments, Dechert and Pinheiro Guimaraes declined to comment on the matter. As reported in the Troubled Company Reporter-Latin America on July 25, 2016, Moody's Investors Service has downgraded to C from Caa2 the corporate family rating of Samarco Mineracao S.A. and the ratings of its senior unsecured notes due 2022, 2023 and 2024. ========================== C A Y M A N I S L A N D S ========================== ADAR WORLD: Shareholder to Hear Wind-Up Report on Oct. 24 --------------------------------------------------------- The sole shareholder of Adar World Balanced High Grade Fund Ltd. will hear on Oct. 24, 2016, at 10:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Adar Capital Partners Ltd. c/o Madeleine Welham Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 ASHDOWN INTERNATIONAL: Members' Final Meeting Set for Nov. 1 ------------------------------------------------------------ The members of Ashdown International Holdings Ltd. will hold their final meeting on Nov. 1, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Desmond Campbell Stuart Brankin Circumference FS (Cayman) Ltd. P.O. Box 32322 Grand Cayman, KY1-1209 Cayman Islands Telephone: 345 814 0711 BADEN INVEST: Sole Member to Hear Wind-Up Report on Oct. 27 ----------------------------------------------------------- The sole member of Baden Invest Corp. will hear on Oct. 27, 2016, at 12:00 noon, the liquidator's report on the company's wind-up proceedings and property disposal. 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 BRISPHER HOLDINGS: Shareholders' Final Meeting Set for Oct. 24 -------------------------------------------------------------- The shareholders of Brispher Holdings Inc. will hold their final meeting on Oct. 24, 2016, at 12:00 noon, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Morval Bank & Trust Cayman Ltd. P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands Telephone: +1 (345) 949-9808 CAMBRIDGE COMPANY: Shareholders' Final Meeting Set for Oct. 28 -------------------------------------------------------------- The shareholders of Cambridge Company Limited will hold their final meeting on Oct. 28, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Dominique Massias P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 CHEPSTOW CAPITAL: Shareholders' Final Meeting Set for Oct. 17 ------------------------------------------------------------- The shareholders of Chepstow Capital (Cayman) Limited will hold their final meeting on Oct.17, 2016, at 8:00 a.m., at 13-D1, 13th Floor of United Centre in 95 Queensway, Admiralty, Hong Kong, to receive the liquidator's report on the company's wind-up proceedings and property disposal. Vincent James Warner is the company's liquidator. ELECTRA INTERNATIONAL: Shareholders' Final Meeting Set for Oct. 21 ------------------------------------------------------------------ The shareholders of Electra International Ltd. will hold their final meeting on Oct. 21, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Trust &Corporate Services Ltd. Landmark Square, 1st Floor 64 Earth Close P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: +1 (345) 769-9351 GRF FUND: Shareholders' Final Meeting Set for Oct. 20 ----------------------------------------------------- The shareholders of GRF Fund, Ltd. will hold their final meeting on Oct. 20, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 HANNIBAL LEASING: Sole Member Receives Wind-Up Report ----------------------------------------------------- The sole member of Hannibal Leasing Limited received on Sept. 29, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Thomas Mylott Marguerite Britton c/o 238 North Church Street P.O. Box 1043, George Town Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 640-6600 HARBORWALK GLOBAL: Members' Final Meeting Set for Nov. 11 --------------------------------------------------------- The members of Harborwalk Global Healthcare Master Fund Ltd. will hold their final meeting on Nov. 11, 2016, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan P.O. Box 1344 dms House, 20 Genesis Close George Town KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 INDEPENDENT DEVELOPMENT: Members' Final Meeting Set for Oct. 28 --------------------------------------------------------------- The members of Independent Development Co Ltd will hold their final meeting on Oct. 28, 2016, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Dominique Massias P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 JULYSUNNY 747-01: Sole Member Receives Wind-Up Report ----------------------------------------------------- The sole member of Julysunny 747-01 Limited received on Sept. 29, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Thomas Mylott Marguerite Britton c/o 238 North Church Street P.O. Box 1043, George Town Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 640-6600 VERTEX ORBIT: Shareholders' Final Meeting Set for Oct. 18 --------------------------------------------------------- The shareholders of Vertex Orbit Trading Company Limited ET 258215 will hold their final meeting on Oct.18, 2016, at 11:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Doran + Minehane 59/60 O' Connell Street Limerick Ireland Telephone: 00353 61 430000 Facsimile: 00353 61 408613 =========== 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 reports 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 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, Bloomberg News 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, the report quoted Minister Meade as saying. 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 says. 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 relays. On Sept. 8, a day after being sworn in, Minister Meade went to Congress's lower house to present President Enrique Pena Nieto's budget proposal for next year, Bloomberg News discloses. 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, Bloomberg News relays. 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 notes. 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 says. Minister Meade 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, Bloomberg News relays. 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, the report discloses. With a bit more than two years in his job this time around -- if he 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 notes. "Mexico has more than two decades of distinguishing itself for economic prudence," Minister Meade said, Bloomberg News notes. "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." SAN LUIS STATE: Moody's Cuts Issuer Rating to Ba3/Baa1.mx --------------------------------------------------------- Moody's de Mexico (Moody's) downgraded the state of San Luis Potosi issuer ratings to Ba3/Baa1.mx from Ba2/A2.mx. The outlook remains negative. A MXN 2.68 billion (original amount) enhanced loan with Banorte was also downgraded to Baa2/Aa2.mx from Baa1/Aa1.mx. RATINGS RATIONALE RATIONALE FOR THE DOWNGRADE OF THE ISSUER RATING TO Ba3/Baa1.mx.mx FROM Ba2/A2.mx In 2015, San Luis Potosi's key liquidity metrics continued to show signs of deterioration in 2015. Its net working capital relative to total expenditures fell to -14.1% in 2015 from -3.9% in 2014. The deterioration of this metric is mostly driven by the recognition of expenditures amounting to MXN 4.7 billion derived from changes in the formula of education transfers implemented between 2007 and 2015. At the same time, the state's cash-to- current liabilities ratio also declined, to 0.1x in 2015 from 0.4x in 2014. Overall, San Luis Potosi's liquidity profile is no longer comparable with Mexican states rated at the Ba2 level. San Luis Potosi also experienced a deterioration in its cash financing results in 2015, which declined to -0.7% of total revenues from -0.4% in 2014. The decline is largely due to higher than expected payments to educational professionals and transfers to the manufacturing sector. The state's total revenues increased by 12.8% between 2014 and 2015 while its expenditures increased 13.2% over the same period. The Ba3/Baa1.mx ratings also reflect several credit strengths of San Luis Potosi, including an absence of short term debt and continued low debt service, which represents a very low 1.7% of total revenues. San Luis Potosi exhibits one of the lowest debt levels among Mexican states rated by Moody's, registering 12.4% of total revenues at the end of 2015, although Moody's expects debt levels to increase to around 17% in 2017 given ongoing liquidity pressures. RATIONALE FOR THE NEGATIVE OUTLOOK The negative outlook is based on Moody's expectations that San Luis Potosi's negative trends for consolidated results and liquidity will continue over the next 18-24 months. The negative outlook on the state also reflects the negative outlook on Mexico's sovereign rating (A3, negative), incorporating the heightened systemic risk for sub-sovereign issuers. Mexico's state and municipal governments have close operating and financial linkages with the federal government. RATIONALE FOR THE DOWNGRADE OF THE ENHANCED LOAN RATINGS TO Baa2/Aa2.mx FROM Baa1/Aa1.mx The rating downgrade of the MXN 2.68 billion (original face value) enhanced loan with Banorte reflects the downgrade of San Luis Potosi's issuer ratings. Per Moody's methodology on rating enhanced loans, the loan ratings are directly linked to the credit quality of the issuer, which ensures that underlying contract enforcement risks, economic risks and credit culture risks (for which the issuer rating acts as a proxy) are embedded in the ratings of the enhanced loan. WHAT COULD CHANGE THE RATING UP/DOWN Given the negative outlook, a rating upgrade in the medium term is unlikely. However, the outlook could be stabilized if the state of San Luis Potosi registers balanced cash financing results over the near and medium term and demonstrates an improvement in its liquidity levels. Conversely, the state's ratings could be downgraded if it continues registering deficits, leading to further deterioration in its liquidity or increases to its debt levels. ====================== P U E R T O R I C O ====================== EJS INCORPORADO: Hires Padilla as Accountant -------------------------------------------- EJS Incorporado seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Angel L. Mattei Padilla as accountant to the Debtor. EJS Incorporado requires Mr. Padilla to: a. review accounting records for preparation of month and year end accounting and financial reports; b. prepare estate returns and declarations; c. prepare monthly reconciliations of all bank accounts and lines of credits; d. prepare liquidation analysis, financial projections, claim reconciliations and related financial documents as support for a Plan of Reorganization; Mr. Padilla will be paid at the monthly rate of $1,000. Mr. Padilla will also be reimbursed for reasonable out-of-pocket expenses incurred. Angel L. Mattei Padilla, CPA, 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. Mr. Padilla can be reached at: Angel L. Mattei Padilla Urb. Santiago Iglesias 1450, Ave. Paz Granela San Juan, PR 00921 Tel: (787) 789-6726 Fax: (787) 789-8783 E-mail: angelmattei@yahoo.com About EJS Incorporado EJS Incorporado aka EJS Inc. filed a chapter 11 petition (Bankr. D.P.R. Case No. 16-01647) on March 1, 2016. The petition was signed by Jose Manuel Rodriguez Amador, president. The Debtor is represented by Ada M. Conde, Esq., at Ada M. Conde, Esq. The case is assigned to Judge Edward A. Godoy. The Debtor estimated assets at $0 to $50,000 and liabilities at $1 million to $10 million at the time of the filing. No official committee of unsecured creditors has been appointed in the case. MOTEL TROPICAL: Unsecureds to Recoup 1% Under First Amended Plan ---------------------------------------------------------------- Motel Tropical Inc. filed a first amended disclosure statement, dated September 26, 2016, a full-text copy of which is available at http://bankrupt.com/misc/16-00966-59.pdf A hearing on the approval of the Disclosure Statement was held on August 25, 2016. At said hearing upon representation of counsel for the Debtor, the Court granted the Debtor up to September 23, 2016, to file the objection to claims as stated in open court and an amended Disclosure Statement. The Debtor subsequently filed an objection to the claim filed by Hacienda. The Debtor stated in the First Amended Disclosure Statement that the Plan, as submitted, contemplated a 10% dividend to unsecured claims, yet upon further evaluation of the real postpetition experience regarding the actual proceeds generated postpetition, the Debtor has recalculated the dividend to unsecured creditor. The projections as amended contemplate a 1% dividend, which is still more than if the business is liquidated under a Chapter 7 scenario. The Debtor stated that the recalculation may bear on the stipulation filed with Banco Popular in as much as the stipulation states that the Debtor will be paying a 10% dividend to Banco Popular's unsecured claim as well as to all other unsecured claimants. About Motel Tropical Motel Tropical Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-00966) on February 11, 2016. The Debtor is represented by Isabel M. Fullana, Esq., at Garcia-Arregui & Fullanan PSC. The Debtor manages a motel business located at Carr 2.KM 110.7 Ave. Militar, Isabel Puerto Rico. The property on which the Debtor operates is leased to Manuel Gonzalez Valeting. SANDWICH D' LIGHT: Disclosures OK'd; Nov. 1 Plan Hearing Set ------------------------------------------------------------ The Hon. Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for the District of Puerto Rico has conditionally approved Sandwich D' Light Rincon PR, LLC's disclosure statement with respect to the Chapter 11 plan dated Sept. 19, 2016. A hearing on the final approval of the Disclosure Statement and the confirmation of the Plan will be held on Nov. 1, 2016, at 9:30 a.m. Three days prior to the hearing is fixed as the last day for filing written acceptances or rejections to the Plan. Three days prior to the hearing is fixed as the last day for filing and serving written objections to the Disclosure Statement and confirmation of the Plan. Sandwich D' Light Rincon PR, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-01213) on Feb. 19, 2016, estimating the Debtor's assets and liabilities at up to $50,000 each. Enrique M Almeida Bernal, Esq., at Almeida & Davila PSC serves as the Debtor's bankruptcy counsel. ================================ T R I N I D A D & T O B A G O ================================ CL FIN'L: Gov't Committed to Finding Solution to CLICO Collapse --------------------------------------------------------------- Trinidad Express reports that the Bahamas government said it remains committed to ensuring that all qualified policyholders of the Trinidad-based insurance conglomerate, Colonial Life Insurance Company (CLICCO) receive the full benefits of their policies. CLICO collapsed in 2009 resulting in policy holders throughout the Caribbean seeking to recoup millions of dollars in investments. A government statement said that in April an interim payment of approximately US$13.1 million was made by the government to creditors approved by the official liquidators, according to Trinidad Express. The government said that in accordance with the agreed payment terms, approved policyholders with balances owing in excess of US$10,000 by CLICO, were secured by the issuance of Promissory Notes issued by the government, the report relays. It said that the notes were expected to have been exchanged for bonds intended to be issued by a newly established Special Purpose Vehicle (SPV) no later than September 30 this year. The statement added that the SPV has been incorporated and referred to as Coral Insurance Company (Coral) to accept the transfer of CLICO insurance portfolio once duly licensed in accordance with the Insurance Act, 2005. "The Insurance license for Coral is currently being processed and is expected to be completed by the second week of November, 2016. The Government will provide capital support to the SPV to cover the liabilities with assets which are admitted by the Insurance Commission of The Bahamas (ICB) for solvency purposes," according to the statement, notes the report. It said policyholders with active in-force policies should therefore continue to make their premium payments in accordance with their policy contracts to ensure that they continue to receive coverage and benefits under their policies, the report discloses. "Coral, once duly licensed with regulatory approval in hand, its first order of business will be to undertake a Bond offering of approximately US$45,000,000 million, the proceeds of which will be earmarked for issuance to qualified policyholders of CLICO in exchange for Promissory Note letters issued by the Government reflecting residual claim balances owing following the partial claims pay out exercise in April 2016," said the statement, note Trinidad Express. The statement noted that in fulfilling its commitment to policyholders, Coral through its Issuing Agents LENO Corporate Services limited will make available for exchange the relevant Book Stocks during the second week of November 2016. A separate notice regarding the Swop/ Exchange exercise will be sent out at a later date, says Trinidad Express. "Policy holders entitled to participate in the Swop exercise should note that the Bonds will attract an interest rate of Prime plus payable semi-annually. Further, the Government is committed to honoring its original agreement as previously communicated, to undertake the note exchange on or before the September 30th, 2016. "Therefore, interest will start to accrue on the Promissory Note obligations as from October 1st, 2016 based on the proposed Bond Terms. Payment of this initial accrued interest will be made along with the first semi-annual interest instalment due on the Bonds in March 2017, "the statement said, adds the report. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 6, 2015, Trinidad Express reports that the Constitution Reform Forum (CRF) has called on Finance Minister Larry Howai to refrain from embarking on an "unnecessary drain on the Treasury" by appealing the decision of a High Court judge, who ordered that the Minister fulfil a request by president of the Joint Consultative Council (JCC) Afra Raymond for financial details relating to the bailout of CL Financial Limited. The CRF issued a release stating that if the decision is appealed, not only will it be a waste of finance but such a course of action will also demonstrate a "lack of commitment by the Government to the spirit and intent of the Freedom of Information Act FOIA", under which the request was made, according to Trinidad Express. On July 7, 2014, Trinidad Express said that the Central Bank has placed the responsibility of voluntary separation package (VSEP) negotiations for workers at insurance giant Colonial Life Insurance Company Ltd. (CLICO) with the company's board, after which it will review accordingly, the bank said in a statement. The bank's statement follows protest action by CLICO workers, supported by their union, the Banking, Insurance and General Workers' Union (BIGWU), outside the Central Bank in Port of Spain, according to Trinidad Express. In a separate TCRLA report on June 26, 2014, Caribbean360.com said that the Trinidad and Tobago government has welcomed an Appeal Court ruling that the Attorney General Anand Ramlogan said saves the country from paying out more than TT$1 billion (TT$1 = US$0.16 cents) to policyholders of the cash-strapped CLICO. The Appeal Court overturned the ruling of a High Court that ruled members of the United Policyholders Group (UPG) were entitled to be paid the full sums of their polices. CLICO financially caved in on itself at the end of 2008 after the investment instruments of major policyholders matured and they wanted hundreds of millions of dollars they were owed. On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that over TT$8 billion worth of CLICO's profitable business will be transferred to Atruis, a new company that will be owned by the state. The Trinidad Express said that the Cabinet approved the transfer as the Finance and General Purposes Committee continues to discuss a letter of intent hammered out by the Ministry of Finance and CL Financial's 400 shareholders, which envisions taxpayers will recover the more than TT$20 billion Government has injected since 2009 to keep CL subsidiary CLICO and other companies afloat. At its annual general meeting in Sept. 2013, CL Financial shareholders voted to extend the agreement with Government until August 25, 2014, while Cabinet decides on a new framework accord to recover the debt owed to Government through divestment of CL subsidiaries, including Methanol Holdings, Republic Bank, Angostura Holdings, CL World Brands and Home Construction Ltd., Caribbean360.com related. Proceeds from the divestment of these assets will go toward Government's recovery of the billions it pumped into CLICO. TCRLA reported on Sep 22, 2011, Caribbean News Now, citing Reuters, said that the cost of the Trinidad and Tobago government bailout of CL Financial Limited is likely to rise to more than TT$3 billion. * TRINIDAD & TOBAGO: Need to Avoid 1982/1983 Financial Crisis ------------------------------------------------------------- Trinidad Express reports that movement for Social Justice leader David Abdulah is calling on Government to save the country from a repeat of the 1982/83 financial crisis. Speaking at the Eastern Credit Union's post-budget review at the ECU building in St. Joseph on Monday night, Abdulah likened the current financial situation to that of the recession in the early 1980s, according to Trinidad Express. "We are in a difficult position," the report quoted Mr. Abdulah as saying. Despite labelling the budget as "unbalanced", Mr. Abdulah said there were some good points and some bad ones in the budget presented by Finance Minister Colm Imbert, the report relays. *********** 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 * * *