/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/161216.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, December 16, 2016, Vol. 17, No. 249 Headlines A R G E N T I N A INDUSTRIAL AND COMMERCIAL: Moody's Rates Notes Issuance 'Ba3' B R A Z I L BRASKEM SA: To Pay $957 Million in Corruption Case BRAZIL: Presidential Adviser Resigns Amid Reports of Corruption C A Y M A N I S L A N D S ALPHABET OFFSHORE: Members' Final Meeting Set for Jan. 6 ALPHABET OFFSHORE MASTER: Members' Final Meeting Set for Jan. 6 AMINA LIMITED: Creditors' Proofs of Debt Due Dec. 21 BLOOMING ORIENTAL: Members Receive Wind-Up Report CHC GROUP: Seeks Approval of Foreign Proceeding in Cayman Islands DYNAVEST: Shareholders' Final Meeting Set for Dec. 20 EMERALD THREE: Sole Member Receives Wind-Up Report HEADCROWN1234: Members Receive Wind-Up Report ROCKWOOD INTERNATIONAL: Members' Final Meeting Set for Dec. 22 SEAST FUNDING: Shareholders' Final Meeting Set for Dec. 28 TRIANGULAR AMP: Shareholders' Final Meeting Set for Dec. 15 TRIANGULAR EGL: Shareholders' Final Meeting Set for Dec. 15 TRIANGULAR QCM: Shareholders' Final Meeting Set for Dec. 15 P U E R T O R I C O ALFREDO SEPULVEDA: Unsecureds to Get Full Payment in 72 Months LEVITT HOMES: Disclosure Statement Hearing Set for Feb. 2 SAN JUAN OIL: Disclosures OK'd; Plan Hearing on Feb. 17 WILLIAM CONTRACTOR: To Liquidate If No Favorable Ruling in Suit U R U G U A Y * URUGUAY: Shows Resilience Amid Recessions of 2 Neighbors V E N E Z U E L A VENEZUELA: Gets 10-day Extension for Notes - - - - - ================= A R G E N T I N A ================= INDUSTRIAL AND COMMERCIAL: Moody's Rates Notes Issuance 'Ba3' ------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo (MLA) assigned a Ba3 global local currency senior unsecured debt rating and an Aaa.ar Argentina national scale senior debt rating to Industrial and Commercial Bank of China (Argentina) S.A. (ICBC Argentina)'s Class VII issuance. The notes will be due 2018 and will be issued under ICBC Argentina's existing multi-currency senior unsecured program of $250 million, and up to ARS 700 million issued amount. The outlook on ICBC Argentina's senior unsecured debt rating is stable. The following ratings were assigned to ICBC Argentina's Class VII local currency senior unsecured note issuances: -- Global local currency senior unsecured debt rating of Ba3; stable outlook -- Argentinean national scale local currency senior unsecured debt rating of Aaa.ar RATINGS RATIONALE ICBC Argentina's Ba3 rating incorporates Argentina's operating environment, which remains challenging despite the country's recent return to global capital markets and various other market- friendly policy reforms implemented in recent months by the new administration. The ratings capture ICBC Argentina's well-established and diversified franchise, oriented to retail banking and corporate loans, supported by adequate capitalization levels and conservative risk management guidelines. Risk discipline has supported steadily superior asset quality with non-performing loans in 3Q16 at 1.60%, below the 1.9% system average, while reservesremained adequate at 2.43% of total loans. The loan book grew 25,23% in the nine months ended in September 2016, which represented a contraction in real terms of more than 10% against YE 2015. ICBC Argentina's profitability increased over the past two years supported by high benchmark interest rates on government securities holdings and business diversification. Having reported a 4.52% net income as a percentage of tangible assets in June 2016, ICBC Argentina's future performance will be challenged by the declining trend in policy rates and the normalization of financial markets that will boost competition in a low credit penetration system. The potential approval of a law that caps fees on credit and debit card transactions, which represents almost 10% of the bank's average revenues, is another source of pressure on the bank's results. In the context of increasing competition and the lack of credit demand, ICBC Argentina has been focusing on expanding the range of products and offering low rate consumer loans, a way to attract new clients and enhance penetration. With an adequate regulatory CET1 capital position at 13.84% in 3Q16, the bank's shareholders intend to maintain a low dividend payout ratio to support ICBC Argentina's expansion strategy in Argentina. The Ba3 global local currency deposit rating of ICBC Argentina derives from the bank's b3 baseline credit assessment (BCA) and our assessment of a very high probability of parental support to be provided by its shareholder Industrial & Commercial Bank of China Ltd rated A1 with negative outlook. The analysis of support, in Moody's view, considers the track record of capital injections and funding commitments extended by shareholders to the Argentinean subsidiary. Despite ICBC Argentina's speculative grade in global scale, it is one of the strongest credits in Argentina thanks to the very high probability of support from its parent, as reflected in its Aaa.ar Argentinean national scale local-currency deposit and debt ratings. The national scale ratings are positioned at the top of the range of available options for issuers with Ba3 in global scale, and consider that the global scale rating is constrained by Argentina's local currency country ceiling. WHAT COULD CHANGE THE RATING UP/DOWN At this point, ICBC Argentina's standalone assessment of b3 is currently at the same level of the Argentine sovereign's B3 rating as well as its Ba3 supported global local currency deposit rating, which is constrained by the country ceiling for local currency deposits. ICBC Argentina could face downward ratings pressure if the operating environment deteriorates and the sovereign rating is downgraded . The standalone BCA could be lowered if the bank grows aggressively to protect its market position in the competitive Argentine financial market, falling victim of adverse selection affecting asset quality and core earnings profile. This scenario could exert pressure on its capital position and loss absorption capacity. The principal methodology used in these ratings was Banks published in January 2016. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. Industrial and Commercial Bank of China (Argentina) S.A. is headquartered in Buenos Aires, with assets of ARS 62.56 billion ($4.10 billion) and equity of ARS 8.57 billion ($561.94 million) as of 30 September 2016. =========== B R A Z I L =========== BRASKEM SA: To Pay $957 Million in Corruption Case -------------------------------------------------- Jeffrey T. Lewis at The Wall Street Journal reports that Brazilian chemical company Braskem SA said it has agreed to pay fines and damages of about $957 million as part of a leniency accord with prosecutors investigating a corruption scheme centered on state- controlled oil company Petroleo Brasileiro SA, or Petrobras. Braskem said it would continue to cooperate with authorities and that it will be subject to external monitoring, but declined to provide details about any criminal offenses it may have committed, according to The Wall Street Journal. Some terms of the agreement are confidential, the company added. Braskem SA agreed to pay about half of the fines and damages up front, once the agreement has been ratified by the courts, the report notes. The rest will be paid in six annual installments, adjusted for inflation, starting in January 2018, the company said, the report relays. Braskem SA said that, at the end of the third quarter, it had liquid assets of BRL10.7 billion ($3.2 billion), more than enough to make the first payment, the report notes. The anticorruption investigation, known as Operation Car Wash, has led to the arrests of dozens of executives of construction companies for their involvement in the graft scheme, in which builders overcharged Petrobras for projects and then channeled some of the money to politicians and their parties, the report relays. Scores of politicians are also under investigation by the probe. Braskem is controlled by Petrobras and construction company Odebrecht SA, which together own 97.1% of the chemical maker's voting capital and 74.4% of its total capital, the report relays. Odebrecht's former chief executive officer, Marcelo Odebrecht, was arrested in June 2015 for his involvement in the graft scheme at Petrobras and last year was sentenced to 19 years in jail for corruption, money laundering and conspiracy, the report notes. Prosecutors have signed plea bargain agreements with 77 people linked to Odebrecht SA, including Mr. Odebrecht, and the company has also signed a leniency accord with prosecutors, a person close to the negotiations said earlier this month, the report adds. BRAZIL: Presidential Adviser Resigns Amid Reports of Corruption --------------------------------------------------------------- Jeffrey T. Lewis at The Wall Street Journal reports that an adviser to Brazilian President Michel Temer resigned amid media reports he accepted illegal payments from construction company Odebrecht SA, another blow to the embattled chief executive as he works to push unpopular economic reforms through Congress. Jose Yunes, who until Dec. 14 was a "special adviser" to Mr. Temer, is among several prominent officials who reportedly were named in a plea bargain deal by a former employee of construction giant Odebrecht, according to The Wall Street Journal. Local news organizations said part of an illicit BRL10 million ($3 million) payment to Mr. Temer's Brazilian Democratic Movement Party was delivered to the office of Mr. Yunes, a lawyer, the report notes. In his resignation letter, Mr. Yunes rejected the "ignominious" reports and expressed outrage at having his name dragged through the mud, the report relays. Mr. Yunes has denied any wrongdoing, and Mr. Temer's office declined to comment on the investigation. The Temer administration was rocked over the weekend by reports the president himself solicited the BRL10 million from Odebrecht, a charge the president strongly denied, saying donations to his party by the builder were all carried out by bank transfer and registered with election officials, the report notes. Mr. Yunes's resignation is a new complication for the president just as he's had some success getting economic reforms through Congress, said Rafael Cortez, a political science expert at the Tendencias consultancy in Sao Paulo, the report says. "The political situation for Temer is still very negative," said Mr. Cortez, the report discloses. "Recent polls show him with little support, which creates concerns among markets" about his ability to get legislation passed, Mr. Cortez notes. Brazil's Senate approved a controversial bill that would cap government spending increases, sparking violent protests in the capital, the report relays. The measure now awaits Mr. Temer's signature, the report says. Another reform, one to the country's insolvent pension system that financial markets see as vital, was just sent to Congress and still faces strong resistance from Brazilians, the report notes. The spending limit bill "was the first step, but it won't be enough if it's not accompanied by the pension reform," Mr. Cortez said, the report discloses. Mr. Temer replaced the former president, Dilma Rousseff, whose approval ratings hovered near 10% before she was ousted for violating budget laws, and within months his own government's approval ratings have sunk just as low, the report says. Several cabinet members resigned in the first few weeks after Ms. Rousseff's ouster amid reports of corruption, and more have gone since, with the most recent quitting in November, the report relays. The recent reports are based on the plea bargain agreement with a former Odebrecht official, which was leaked to several Brazilian news organizations, the report notes. Prosecutors directing the mammoth Operation Car Wash anticorruption investigation, centered on kickbacks at state-controlled oil company Petroleo Brasileiro SA, or Petrobras, signed such agreements with 77 people linked to the builder, including former chief executive officer Marcelo Odebrecht, a person close to the negotiations told The Wall Street Journal earlier this month, the report discloses. The construction company also signed a leniency agreement with prosecutors regarding its involvement in the graft at Petrobras, people close to the talks said in early December, the report relays. The company issued a statement admitting to unspecified "improper practices" while promising to fight corruption in all forms in the future, the report adds. As reported in the Troubled Company Reporter-Latin America on Nov. 15, 2016, Fitch Ratings has affirmed Brazil's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'/ Negative Outlook. Brazil's senior unsecured Foreign- and Local- Currency bonds are also affirmed at 'BB'. The Country Ceiling is affirmed at 'BB+' and the Short-Term Foreign and Local-Currency IDRs at 'B'. ========================== C A Y M A N I S L A N D S ========================== ALPHABET OFFSHORE: Members' Final Meeting Set for Jan. 6 -------------------------------------------------------- The members of Alphabet Offshore, Ltd. will hold their final meeting on Jan. 6, 2017, 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 George Town KY1-1108 dms House, 20 Genesis Close Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 ALPHABET OFFSHORE MASTER: Members' Final Meeting Set for Jan. 6 --------------------------------------------------------------- The members of Alphabet Offshore Master, LP will hold their final meeting on Jan. 6, 2017, 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 George Town KY1-1108 dms House, 20 Genesis Close Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 AMINA LIMITED: Creditors' Proofs of Debt Due Dec. 21 ---------------------------------------------------- The creditors of Amina Limited are required to file their proofs of debt by Dec. 21, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 30, 2016. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Zedra Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 949-7128 BLOOMING ORIENTAL: Members Receive Wind-Up Report ------------------------------------------------- The members of Blooming Oriental Fund received on Dec. 13, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Fear c/o Kevin Butler P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7374 Facsimile: (345) 945 3902 CHC GROUP: Seeks Approval of Foreign Proceeding in Cayman Islands ----------------------------------------------------------------- BankruptcyData.com reported that CHC Group filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing a Debtor affiliate to commence a foreign an ancillary proceeding in the Cayman Islands with respect to CHC Parent's estate. The motion explains, "As a result of CHC's global operations and the anticipated need to pursue ancillary proceedings in foreign jurisdictions to effectuate the Debtors' reorganization, the Debtors sought and received an order authorizing CHC Parent to act as foreign representative on behalf of the Debtors' estates in any 'foreign jurisdiction in which the Debtors determine it is necessary to commence an ancillary proceeding.' The use of a provisional liquidation within a winding-up proceeding is a common means of implementing a cross-border restructuring in the Cayman Islands. Pursuant to recent Cayman Islands case law, it appears that CHC Parent cannot petition for its own winding up. In the circumstances, to enable CHC Parent to seek relief before the Cayman Court to assist with the implementation of the chapter 11 plan, it is intended that an intercompany creditor of CHC Parent will commence the winding-up proceeding, after which CHC Parent (acting by its directors) will apply for the appointment of joint provisional liquidators within the creditor-commenced proceeding." The Court scheduled a January 6, 2016 hearing to consider the motion, with objections due by December 30, 2016. About CHC Group Ltd. Headquartered in Irving, Texas, CHC Group Ltd. is a global commercial helicopter services company primarily servicing the offshore oil and gas industry. CHC maintains bases on six continents with major operations in the North Sea, Brazil, Australia, and several locations across Africa, Eastern Europe, and South East Asia. CHC maintains a fleet of 230 medium and heavy helicopters, 67 of which are owned by it and the remainder are leased from various third-party lessors. CHC Group Ltd. and 42 of its wholly-owned subsidiaries each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 16-31854) on May 5, 2016. As of Jan. 31, 2016, CHG had $2.16 billion in total assets and $2.19 billion in total liabilities. The Debtors hired Weil, Gotshal & Manges LLP as counsel, Debevoise & Plimpton LLP as special aircraft counsel, PJT Partners LP as investment banker, Seabury Corporate Advisors LLC as financial advisor, CDG Group, LLC, as restructuring advisor, and Kurtzman Carson Consultants LLC as claims and noticing agent. The Office of the U.S. Trustee on May 13, 2016, appointed five creditors of CHC Group Ltd. to serve on the official committee of unsecured creditors. The Creditors Committee's attorneys are Marcus A. Helt, Esq., and Mark C. Moore, at Gardere Wynne Sewell LLP, and Douglas H. Mannal, Esq., Gregory A. Horowitz, Esq., and Anupama Yerramalli, Esq., at Kramer Levin Naftalis & Frankel LLP. Angelo, Gordon & Co. and Cross Ocean Partners, which either hold claims or manage funds and accounts that hold claims against the Debtors' estates arising on account of the 9.25% Senior Secured Notes due 2020 issued under the Indenture, dated as of Oct. 4, 2010, by and among CHC Helicopter S.A., as issuer, each of the guarantors named therein, HSBC Corporate Trustee Company (UK) Limited, as collateral agent, and the Bank of New York Mellon, as indenture trustee, are represented by Jones Day. DYNAVEST: Shareholders' Final Meeting Set for Dec. 20 ----------------------------------------------------- The shareholders of Dynavest will hold their final meeting on Dec. 20, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jane Fleming P.O. Box 30464 Grand Cayman KY1-1202 Cayman Islands Telephone: (345) 945-2187 Facsimile: (345) 945-2197 EMERALD THREE: Sole Member Receives Wind-Up Report -------------------------------------------------- The sole member of Emerald Three Limited received on Dec. 13, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Phang Thim Fatt 6 Shenton Way #18-01 S068811 HEADCROWN1234: Members Receive Wind-Up Report --------------------------------------------- The members of Headcrown1234 received on Oct. 21, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Zedra Trust Company (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 949-7128 ROCKWOOD INTERNATIONAL: Members' Final Meeting Set for Dec. 22 -------------------------------------------------------------- The members of Rockwood International Ltd. will hold their final meeting on Dec. 22, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands SEAST FUNDING: Shareholders' Final Meeting Set for Dec. 28 ---------------------------------------------------------- The shareholders of Seast Funding Limited will hold their final meeting on Dec. 28, 2016, at 9:00 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 Bonnie Willkom P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 TRIANGULAR AMP: Shareholders' Final Meeting Set for Dec. 15 ----------------------------------------------------------- The shareholders of Triangular AMP Fund Ltd. will hold their final meeting on Dec. 15, 2016, at 10:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alun Davies Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 TRIANGULAR EGL: Shareholders' Final Meeting Set for Dec. 15 ----------------------------------------------------------- The shareholders of Triangular EGL Fund Ltd. will hold their final meeting on Dec. 15, 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: Alun Davies Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 TRIANGULAR QCM: Shareholders' Final Meeting Set for Dec. 15 ----------------------------------------------------------- The shareholders of Triangular QCM Fund Ltd. will hold their final meeting on Dec. 15, 2016, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alun Davies Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 ====================== P U E R T O R I C O ====================== ALFREDO SEPULVEDA: Unsecureds to Get Full Payment in 72 Months -------------------------------------------------------------- Alfredo L. Figueroa Sepulveda and his spouse Aliena V. Suarez Franceschi filed with the U.S. Bankruptcy Court for the District of Puerto Rico a disclosure statement and plan of reorganization, which proposes that general unsecured non-insider creditors (Class 4) will be paid in full, through 72 equal consecutive monthly installments of approximately $973, commencing on the Effective Date of the Plan and continuing on the 30th day of the subsequent 71 months. Class 1 is impaired under the Plan and is entitled to vote to accept or reject the Plan. Triangle Cayman Asset Co.'s Claim, secured by the Debtors' Shopping Center known as Plaza Real Anon, at Road No. 511, Coto Laurel Ward, in Ponce, Puerto Rico, with an estimated value of $2,200,000, will be paid in full through 360 consecutive monthly installments of $5,665.00, including principal and interest at 5.25% per annum, commencing on the Effective Date and continuing on the 30th day of the subsequent 359 months. TCA will retain unaltered its security interest over the Shopping Center, until the full payment of its claim. The Plan contemplates for the Debtors to continue with their leasing operations at the Shopping Center, averaging $15,000 in monthly rent. Claims will be paid with available funds arising from the Debtors' rental income, the sale of their Dr. Veve Property and their available cash balance on the Effective Date. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/prb16-05664-11-52.pdf The Debtors are represented by: Charles A. Cuprill P.S.C., Law Offices 356 Fortaleza Street-Second Floor San Juan, PR 00901 Tel.: 787-977-0515 Fax: 787-977-0518 E-Mail: ccuprill@cuprill.com Alfredo L Figueroa Sepulveda and Aliena Valderez Suarez sought for Chapter 11 protection (Bankr. D.P.R. Case No. 16-05664) on July 15, 2016. LEVITT HOMES: Disclosure Statement Hearing Set for Feb. 2 --------------------------------------------------------- Judge Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for the District of Puerto Rico will hold a hearing on Feb. 2, 2017 at 10:00 A.M. to consider approval of the disclosure statement filed by Levitt Homes Corp. Objections to the form and content of the disclosure statement should be in writing and filed not less than 14 days prior to the hearing. Headquartered in San Juan, Puerto Rico, Levitt Homes Corp. filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No.15-03368) on May 4, 2015, listing $4.5 million in total assets and $4.6 million in total liabilities. The petition was signed by Jose Manuel Rodriquez, CPA, vice-president. SAN JUAN OIL: Disclosures OK'd; Plan Hearing on Feb. 17 ------------------------------------------------------- The Hon. Edward A Godoy of the U.S. Bankruptcy Court has approved San Juan Oil Company Inc.'s disclosure statement filed on Aug. 29, 2016, referring to a Chapter 11 plan filed on Aug. 29, 2016. A hearing for the consideration of confirmation of the Plan will be held on Feb. 17, 2017, at 9:30 a.m. Acceptances or rejections of the Plan may be filed in writing by the holders of all claims on or before 14 days prior to the date of the hearing on confirmation of the Plan. Any objection to confirmation of the Plan will be filed on or before 14 days prior to the date of the hearing on confirmation of the Plan. The Debtor estimates Class 6 General Unsecured Creditors to total $22,246,151. This Class will receive a lump sum payment of a total amount of $10,000, on the effective date of the Plan. Each member of this class holding an allowed claim will start receiving a pro-rata dividend of the proposed distribution, as per the schedule payments under the Plan. This class is impaired. About San Juan Oil Headquartered in Carolina, Puerto Rico, San Juan Oil Company Inc. is a closely held domestic corporation organized and existing under the laws of the Commonwealth of Puerto Rico since Feb. 2, 1973. For some years up to 2008, the Debtor thrived in businesses as a wholesaler of gasoline. The Debtor distributed gas to retailers and gas stations around the island. In addition, the Debtor owned several real properties which were destined and/or operated as gas stations in their majority. Currently, Debtor is the owner of the following six gas stations, which are scattered around the Commonwealth of Puerto Rico. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 15-09593) on Dec. 1, 2015, estimating its assets at between $1 million and $10 million and its liabilities at between $10 million and $50 million. The petition was signed by Nestor del Castillo-Hernandez, president. Wigberto Lugo Mender, Esq., at Lugo Mender Group, LLC, serves as the Debtor's bankruptcy counsel. WILLIAM CONTRACTOR: To Liquidate If No Favorable Ruling in Suit --------------------------------------------------------------- William Contractor Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico an amended disclosure statement describing its plan of reorganization, a full copy of which is available at: http://bankrupt.com/misc/prb15-06311-11-120.pdf Under the Plan, Class 5 consists of Banco Popular de Puerto Rico's unsecured claims totaling $549,658. The Debtor listed BPPR's claim in the total unsecured amount of $353,000, holding a lien over Debtor's shareholder real estate. The Debtor will provide payment to BPPR's allowed secured claim up to the value of the collateral, or pursuant to agreement between the parties. Class 6 consists of all allowed general unsecured claims for contractors and all claims related to the construction and development business. The liability under this class is estimated to be in the amount of $784,919. This class will be paid on a prorate basis from the carve-out to be agreed with the secured creditor or as agreed with claimant. This class is impaired. The Debtor has identified as income for distribution the collection of the account receivables or from a pending adversary proceeding alleging that BPRR, Multiplazas de Puerto Rico, owner of Plaza del Mar shopping mall, or MPR shareholders never paid it the remaining amounts of work already certified for $4.8 million. The Debtor said that if it does not obtain a favorable judgment in the adversary proceeding, it will devise a plan of liquidation. About William Contractor Headquartered in Aguada, Puerto Rico, William Contractor Inc. filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 15-06311) on Aug. 18, 2015, listing $6.38 million in total assets and $2.56 million in total liabilities. The petition was signed by Lymari Benique Moralez, vice president - secretary. Damaris Quinones Vargas, Esq., at Bufete Quinones Vargas & Asoc serves as the Debtor's bankruptcy counsel. ============= U R U G U A Y ============= * URUGUAY: Shows Resilience Amid Recessions of 2 Neighbors ---------------------------------------------------------- Uruguay has demonstrated considerable resilience in the face of recessions in its two large neighbors. Prudent macroeconomic policies, strong institutions, and success in diversifying its markets and products within the dominant agriculture and forestry sectors have helped stabilize the economy. Furthermore, the country has maintained strong financial buffers that complement the flexible exchange rate in absorbing external shocks. Nonetheless, no country is an island, and the Uruguayan economy has slowed significantly since end-2015. Faced with this slowdown, the authorities avoided an overly contractionary policy stance in 2016, keeping fiscal policy fairly neutral. But room for countercyclical policies is limited, and the fiscal package for 2017 is projected to be pro-cyclical (if considered in isolation), as further delaying structural fiscal consolidation could jeopardize Uruguay's hard-won credibility with international investors, and potentially force a tougher adjustment down the line. Given the low growth and announced fiscal plans, the current monetary stance seems appropriate. However, the authorities should stand ready to tighten monetary policy in 2017 as needed to help guide inflation towards the target range. In the medium term, solidifying the economic and social achievements of the past decade will require structural reform to boost diversified and inclusive growth. While several key prerequisites for this are in place, such as a trusted public sector and a high degree of social stability, gaps will need to be addressed in transportation infrastructure, skills formation, and the provision of credit for private sector investment. I. Recent Developments, outlook and risks 1. Uruguay is demonstrating resilience in the face of sharp recessions in its large neighbors. With both Argentina and Brazil in deep recession in 2016, Uruguay's projected growth of 0.7 percent is a marked departure from yesteryears when growth remained close to the average of its two neighbors. GDP growth is projected to exhibit a modest recovery to about 1.1 percent in 2017, as the external environment strengthens, together with private consumption. However, the planned contractionary fiscal stance may impose a drag on overall domestic demand. 2. After weakening against the U.S. dollar in nominal terms in early 2016, the Uruguayan peso stabilized and reversed course in April, broadly in line with regional peers. The currency appreciated about 6 percent in the year through end-October, but depreciation pressures reemerged in November. The current account deficit is expected to shrink to just under 2 percent of GDP in 2016, before gradually rising to 2´ percent in the medium-term as domestic demand recovers. 3. Despite the slowdown in activity, inflation persists at levels above the central bank's target range. Driven by one-off increases in administered prices, and the nominal exchange rate depreciation at the start of 2016, inflation temporarily peaked at 11 percent (y-o-y) in May. The central bank tightened reserve requirements in April 2016 and lowered its reference range for narrow money (M1+) growth in April and July. Inflation is expected to remain below 9 percent in 2017, tapering to about 6 percent in the medium-term, while the output gap gradually closes. 4. Financial stability risks seem limited . Real credit growth to both corporates and households has come to a virtual halt since 2015 because of tepid demand and supply constraints in Uruguay's segmented financial market. Non-performing loans have more than doubled as a share of gross loans since 2014, but remain relatively low, at 3.5% of total loans, while provisions are high. Staff stress tests confirm that credit and liquidity risks remain contained, and that the banking system could withstand even a large exchange rate shock that impaired loans to non-hedged borrowers. 5. Risks to the outlook are both external and domestic: External risks. Although Uruguay's regional economic ties have lessened, a slower-than-expected recovery in Argentina and Brazil could weigh on the economy, as could weaker-than-projected growth in China. Moreover, a tightening in global financial conditions could weaken growth across the region and raise Uruguay's cost of financing. The high share of nonresident holdings of public debt could also pose some external risk, although maturities are long. Domestic risks. If the recovery in 2017 were weaker than expected, the authorities could face a difficult trade-off between their fiscal consolidation plan and avoiding a strongly pro-cyclical fiscal stance that would exacerbate the slowdown. On the other hand, a potential large foreign investment (about 7 percent of GDP) in a third pulp mill presents an upside risk to growth. 6. Uruguay's strong liquidity buffers and the flexible exchange rate should enable an orderly adjustment to shocks. * Public sector financing risks are limited by sizeable liquid financial assets, buttressed by the government's access to contingent credit lines at international financial institutions. * The authorities' willingness to allow the exchange rate to adjust in response to shifts in economic fundamentals has been key to absorbing external shocks. * The BCU's gross reserves are ample relative to standard prudential benchmarks and could help cushion severe external shocks. II. POLICY RECOMMENDATIONS Implementing fiscal consolidation 7. Implementing the authorities' fiscal consolidation path will be critical to put net debt on a downward trajectory. The government avoided an overly pro-cyclical fiscal stance in 2016, while locking in the required fiscal adjustment for 2017. The announced measures are expected to have a lasting effect on the primary balance. As growth rebounds, staff projects the primary surplus to exceed 0.5 percent of GDP in 2019, allowing for a gradual reduction in gross and net public debt. 8. The government's focus on fiscal consolidation is appropriate, although there is some space to respond to unanticipated shocks. Debt levels have risen sizably in recent years, and financial markets are keeping a close watch on the implementation of the fiscal adjustment, aimed at ensuring fiscal sustainability. The announced structural consolidation, to reduce the overall deficit to 2.5 percent of GDP by 2019, will help maintain strong financial buffers while stabilizing and trimming public debt relative to GDP. As fiscal credibility is preserved, there is space for automatic fiscal stabilizers to operate. In the long-run, population aging will hit Uruguay before other countries in the region, raising the annual deficit of the defined-benefit pillar of the pension system to well above 2 percent in 2050. This will necessitate further reforms, including to limit the deficit of special pension regimes. 9. Improvements in the management and profitability of public companies are essential to strengthening the fiscal balance. Following the recapitalization of ANCAP, the government has contracted a hedge to limit the financial risk from a large oil price increase in world markets. The scope for passing through such increases into (administered) domestic fuel prices may be constrained in the near term, given the limited pass through of the prior decline in oil prices in order to help restore ANCAP's financial soundness. However, it would be useful to allow retail fuel prices to fully adjust with international oil prices as soon as feasible. Basing this on a transparent formula would remove the risks to the budget inherent to the stabilization of domestic fuel prices and promote efficient fuel usage. Consideration could be given to implementing such an approach once the current oil price hedge expires. 10. Fiscal adjustment should be designed to foster economic growth, including by supporting infrastructure investment plans. The 2017 tax package is expected to have a limited adverse effect on consumption, with an increase in personal income tax rates for middle-to-high-income earners, partly offset by lower VAT rates for electronic payments. On the expenditure side, a rationalization of the public wage bill and public enterprises' expenditures will be important to ensure a durable consolidation, and would create space for critical public investment. The use of PPPs can alleviate the initial cost of investment to the budget, but will require effective monitoring and oversight, as well as strong control of explicit and contingent liabilities. 11. Active debt management remains important to reduce financial vulnerabilities and interest payments. Financial markets have acknowledged Uruguay's prudent debt management strategy. However, the share of debt denominated in foreign currency has increased again. Building on the recently created Public Debt Management Committee, the fiscal and monetary authorities could usefully foster the development of a more liquid local-currency bond market which could help lower the dollarization of public debt. Useful steps could include the establishment of benchmarks for long-term peso debt instruments. 12. The authorities may wish to strengthen anchors to enhance the long-term credibility and counter-cyclicality of fiscal policy. An overall debt limit could become part of the existing rule, as a reference for determining the annual limit on the increase in net debt. This would strengthen confidence in the sustainability of Uruguay's public finances. Furthermore, the annual limits on debt increases could adjust to the economic cycle, to permit the operation of fiscal stabilizers. Making monetary policy more effective in curbing inflation 13. Inflation is projected to decline gradually, supported by a negative output gap and the ongoing wage discussions. Confronting inflation remains a priority, and is a precondition for de- dollarization, which would in turn improve the transmission of monetary policy. The new wage agreements offer a valuable opportunity to achieve a lasting reduction in inflation, as they are set in nominal terms, which should reduce inflation persistence, and as they include nominal wage increases that are lower for each subsequent year, gradually reducing cost pressures. Current staff projections foresee inflation moving into the 3-7 percent target range by 2019. Securing the expected gradual decline in inflation would be especially important at this juncture, as surprise inflation could jeopardize sustained progress in reshaping the wage regime. 14. Bringing inflation back to within the BCU's target range requires a tight monetary policy. After increasing in April, short-term interest rates have fallen somewhat since mid-2016. That said, given a weak recovery, and the pro-cyclical fiscal tightening in 2017, a relatively less tight monetary stance could be justified going into 2017. However, the authorities should be proactive in tightening monetary conditions in 2017 if and when demand pressures pick up, to bolster price stability and the credibility of monetary policy. 15. There is scope to enhance the effectiveness of monetary policy in the medium term. * Reduce inflation persistence further. New wage agreements typically include backward indexation after 12 months or more to offset possible real wage losses. While a longer adjustment delay would be helpful in avoiding indexation in response to temporary price shocks, the full elimination of indexation provisions would be advisable as expeditiously as possible. * Strengthen the policy framework. Money demand has proven difficult to predict. This warrants a careful monitoring of changes in money demand to avoid an unduly relaxed policy stance. The authorities could also usefully explore options to reduce the volatility of short-term interest rates, for example by using standing facilities to create an interest rate corridor, as a more stable short-term yield curve could strengthen the policy signal and serve as a reference for developing peso debt instruments and derivatives. 16. The flexible exchange rate should remain the key mechanism to absorb external shocks. Exchange rate movements since early 2015 helped cushion the downturn and support competitiveness, as neighboring countries experienced similar depreciation pressures. Interventions in the exchange market should be used parsimoniously to counter disorderly market conditions, and not to counter trends driven by fundamentals. Promoting financial development and maintaining stability 17. The ongoing steadfast implementation of the 2014 Financial Inclusion Law promises to help increase peso deposits and competition in the peso market. Private banks can capitalize on the generalization of payroll deposit accounts to increase their peso funding, and boost the peso credit market. 18. Market deepening and prudential policies to encourage domestic currency deposits and loans could support de-dollarization. The financing of public infrastructure projects could be designed to foster the development of new capital market instruments in peso, including for retail investors. On the regulatory side, reinstating differentiated reserve requirements on peso and foreign-currency deposits could encourage banks to favor peso deposits. Supervision should remain alert to monitoring banks' exposures, and containing stability risks. Supporting Inclusive Growth 19. Social policies and transfers have played a significant role in reducing poverty and inequality in Uruguay. Uruguay stands out as the country with the largest drop in the Gini coefficient in Latin America over the past decade. This reflects both government guidelines to bolster low wages, and increased redistribution through income taxes and transfers. Greater income equality can add to countries' long term growth potential. However, looking ahead, further redistributive policies may be constrained by their fiscal costs, and should be designed with careful consideration of their impact on labor supply and incentives to seek training 20. Education reform is essential to sustain strong and inclusive growth. Despite a clearly higher teacher-to-student ratio, education outcomes are not better than regional averages, indicating room for improvement in the efficiency of education spending. 21. Further increasing female labor force participation could help tackle the challenges from population aging. Female labor force participation is fairly high in Uruguay compared to other Latin American countries. Nonetheless, in addition to increasing the supply of affordable public child care, extending paternity leave could also help reduce the gender gap. 22. New free trade agreements and progress in international integration could contribute to potential growth. Given the diversification of Uruguay's export markets, and its focus on highly regulated and protected agricultural products, ensuring beneficial market access will be critical. The recent trade agreement with Chile, which complements the 1996 agreement between Chile and Mercosur, and the possible conclusion of trade negotiations between Mercosur and the European Union, should benefit Uruguay's exports. ================= V E N E Z U E L A ================= VENEZUELA: Gets 10-day Extension for Notes ------------------------------------------ Australian Associated Press reports that Venezuelan Central Bank President Nelson Merentes has announced that the deadline for turning in all VEB100 bills will be extended by "approximately" 10 days after the 72-hour period originally proclaimed for withdrawing those bills from circulation. President Merentes held a press conference at which he said that the process will be undertaken with the participation of public and private banks, along with the central bank, according to Australian Associated Press. "We're . . . going to provide information to the entire Venezuelan population of this exchange process that will come after the deposit process ends," the report quoted President Merentes as saying. Meanwhile, thousands of Venezuelans rushed to public and private banks around the country to turn in their VEB100-bolivar bills, the highest denomination in the local currency, the report notes. The bills were originally slated to lose their value and be removed from circulation on Thursday by order of President Nicolas Maduro, the report says. According to the EFE, lines of up to 150 people were forming at banks located in the eastern part of the Venezuelan capital and most of those citizens were elderly and waiting their turn to turn in their currency, the report relays. Just one private financial institution among those checked by EFE said that it was exchanging cash, that is to say, accepting up to VEB50,000 (about AU$100) in VEB100 bills and returning the same sum to customers in two, five and VEB10 bills, the report notes. The rest of the banks were accepting the bills as deposits to people's accounts, the report discloses. About a dozen customers told EFE that they had decided to make a trip to their banks exclusively to deposit those bills during the first of the three days the government has designated for Venezuelans to get rid of them, the report says. As reported in the Troubled Company Reporter-Latin America on July 5, 2016, Fitch Ratings affirmed Venezuela's Long-Term Foreign-and Local-Currency Issuer Default Ratings (LT FC/LC IDR) at 'CCC'. Fitch has also affirmed the sovereign's Short-Term Foreign Currency (ST FC) IDR at 'C' and country ceiling at 'CCC'. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2016. All rights reserved. ISSN 1529-2746. This material is copyrighted and any 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 * * *