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/raid1/www/Hosts/bankrupt/TCRLA_Public/170119.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 Thursday, January 19, 2017, Vol. 18, No. 014 Headlines B R A Z I L ODEBRECHT ENGENHARIA: Fitch Lowers Issuer Default Ratings to CC * Brazil Financial Cos. Face Low Loan Growth in 2017, Fitch Says C A Y M A N I S L A N D S CENTENNIAL UK II: Commences Liquidation Proceedings COMMODITIES (ALPHA): Commences Liquidation Proceedings DBARN NET: Commences Liquidation Proceedings ELECTRICINVEST (WINDCO II): Commences Liquidation Proceedings LB ALPHA: Commences Liquidation Proceedings LB BETA: Commences Liquidation Proceedings LIMETREE CAPITAL: Commences Liquidation Proceedings MAXIMUM EMERGING: Commences Liquidation Proceedings RACON FUND: Placed Under Voluntary Wind-Up RACON MASTER: Placed Under Voluntary Wind-Up SHARPS SP I 2006-NC2N: Commences Liquidation Proceedings SHARPS SP I 2006-RS6N: Commences Liquidation Proceedings STANDARD PACIFIC: Commences Liquidation Proceedings D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Scrap Yards Halted on Rivers J A M A I C A JAMAICA: No Need to Rely on Int'l Market to Raise Funds in 2017 P U E R T O R I C O AEROPOSTALE INC: Court Extends Plan Filing Period to March 1 FARMACIAS FREDDY: Hires Batista Law Group as Counsel T R I N I D A D & T O B A G O PETROTRIN: $600 Million in Projected Loss for 2016 PETROTRIN: Consultant Makes Suggestions for Firm to Stay Relevant - - - - - =========== B R A Z I L =========== ODEBRECHT ENGENHARIA: Fitch Lowers Issuer Default Ratings to CC --------------------------------------------------------------- Fitch Ratings has downgraded and removed from Rating Watch Negative Odebrecht Engenharia e Construcao S.A.'s (OEC) ratings, including its foreign and local currency long-term Issuer Default Ratings (IDRs) to 'CC' from 'B-' and its national scale long-term rating to 'CC(bra)' from 'BB-(bra)'. Fitch has also downgraded to 'CC/RR4' from 'B-/RR4' approximately USD3.1 billion issuances of Odebrecht Finance Ltd. (OFL), which OEC unconditionally and irrevocably guarantees. The 'CC/RR4' rating of OFL's unsecured public debt reflects average recovery prospects in the event of a default, ranging between 31% to 50%. KEY RATING DRIVERS The downgrades reflect the increasing and substantial challenges OEC faces in 2017 to restructure its activities and recover its cash flow generation capacity amidst a continuing cash burn for parental support. Fitch sees the company's ability to replace its backlog as further impaired after details were published by the U.S. Department of Justice (DoJ) under a plea agreement. The information published has exacerbated OEC's reputational risk and triggered a series of investigations in some countries where the company operates. New Investigations Fitch's expectations that the plea agreement would improve the status for OEC have not materialized. Instead, it has already triggered further corruption investigations in Colombia, Ecuador, Panama and Peru, which is likely to result in the stoppage of projects under construction, suspension from participating in new public biddings and request of fine payments. These governments may uphold payments related with the ongoing contracts under scrutiny, which worsens the company's increasing receivables balance and further pressure its liquidity. OEC will have to negotiate a solution in each of these countries in order to be able to participate in new biddings. Fitch understands all potential additional fines to be charged by other countries will be covered under the BRL3.8 billion initially negotiated by Odebrecht group. Backlog Renewal Relevant Challenges Fitch anticipates another year of backlog reduction for OEC in 2017 with potential to reach as low as USD18 billion by the end of the year. The Brazilian weak macroeconomic condition and infrastructure agenda combined with the company's damaged reputational risks poses substantial concern on OEC's capability to replace backlog domestically and abroad. By the end of September 2016, OEC's backlog of USD21.3 billion decreased 24% from USD28.1 billion registered by the end 2015. Fitch is also concerned with OEC's backlog quality deterioration. As the company executes projects with payments performing as expected, it is being left with projects facing suspended or late payments. The agency estimates that approximately 42% of the company's USD21.3 billion backlog in the third quarter of 2016 has been executed at a very slow pace (i.e. beyond 15 years to conclude). Difficulty to Monetize Receivables OEC continues to face difficulties monetizing receivables. Oil exporter countries have stretched contracts to reduce monthly disbursements, and BNDES has suspended the loans of projects abroad due to the corruption scandal. Receivables stopped piling up in third quarter of 2016 at the expense of revenue deceleration since second quarter 2016. In September 2016, OEC had BRL12.8 billion (USD3.9 billion) in short-term receivables. Cash Burn for Parental Support OEC continues to support its parent, which further pressures liquidity. In the third quarter 2016, OEC provided USD100 million intercompany loan to Odebrecht S.A., with an additional amount in the fourth quarter 2016. This support materially differs from Fitch's initial expectation that Odebrecht S.A. would pay back the USD250 million loan to OEC in 2016. The timeframe of holding support returning to OEC is uncertain as it depends on the group's sale of assets strategy. KEY ASSUMPTIONS -- Backlog falling 40% in 2016 and 6% in 2017 with execution pace slowing down; -- Net revenues falling 64% in 2016 and 15% in 2017 in BRL terms; -- EBITDA margin of 8.2% in 2016 and 8.4% in 2017 pressured by severance payments; -- Capex at 2% of net revenues for both years and no dividends distribution in 2016. RATING SENSITIVITIES Future developments that may, individually or collectively, lead to a negative rating action include: -- The announcement of debt restructuring; -- Difficulties maintaining and executing OEC's backlog at historical run-rates, affecting its cash generation; -- Gradual liquidity position weakening. Upgrades are unlikely until the company recovers its backlog and reputation. LIQUIDITY Fitch forecasts OEC liquidity under pressure as more significant debt matures. As of Sept. 30, 2016, OEC's cash position of USD1.6 billion was lower than the USD2.5 billion in the fourth quarter of 2015. On top of the USD210 million in short0term debt, the next big amortization is a USD154 million in April 2018. The agency will also continue to follow the company's efficiency in avoiding cash burn derived from operational activity and group support. FULL LIST OF RATING ACTIONS Fitch has downgraded these ratings: Odebrecht Engenharia e Construcao S.A. (OEC) -- Long-Term Foreign and Local-Currency IDRs to 'CC' from 'B-'; -- National Scale Rating to 'CC(bra)' from 'BB-(bra)'. Odebrecht Finance Limited (OFL) -- BRL500 million senior unsecured notes due 2018 to 'CC/RR4' from 'B-/RR4'; -- USD500 million senior unsecured notes due 2020 to 'CC/RR4' from 'B-/RR4'; -- USD600 million senior unsecured noted due 2022 to 'CC/RR4' from 'B-/RR4'; -- USD800 million senior unsecured notes due 2023 to 'CC/RR4' from 'B-/RR4'; -- USD550 million senior unsecured notes due 2025 to 'CC/RR4' from 'B-/RR4'; -- USD500 million senior unsecured notes due 2029 to 'CC/RR4' from 'B-/RR4'; -- USD850 million senior unsecured notes due 2042 to 'CC/RR4' from 'B-/RR4'; -- USD750 million perpetual bonds to 'CC/RR4' from 'B-/RR4'. The ratings have been removed from Rating Watch Negative. * Brazil Financial Cos. Face Low Loan Growth in 2017, Fitch Says ---------------------------------------------------------------- Coming off a year of exceptionally low loan growth, Brazilian finance companies face continued weak growth at levels lower that in recent years, according to a new Fitch Ratings report. "After a cycle of high delinquency and lower profitability, the performance of the operating environment, especially with regard to unemployment and GDP evolution, is the main driver of the financial health of Brazilian financial companies in 2017," said Jean Lopes, Director. "A well-defined and resilient long-term business model, deep mismatch monitoring between assets and liabilities, and effectiveness in risk and collection controls will be important." Loan growth as of September 2016 was only 0.7 percent, compared to 3 percent during the same period in 2015. High delinquencies have been an issue, which is expected to continue to grow at above average rates. Much of the default is offset by high spreads, which led to high profitability. However, the high volume of provision expenses has offset profitability growth. Consolidated capitalization was comfortable at close to 25 percent as of September 2016, well above the financial system's 16.8 percent. The dashboard includes analysis of 44 independent finance companies including profitability, capitalization, funding, and credit quality. ========================== C A Y M A N I S L A N D S ========================== CENTENNIAL UK II: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary meeting held on Dec. 5, 2016, the members of Centennial UK II Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 9, 2017, will be included in the company's dividend distribution. The company's liquidator is: Isa Zainal c/o Ica Eden P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 COMMODITIES (ALPHA): Commences Liquidation Proceedings ------------------------------------------------------ On Dec. 6, 2016, the sole shareholder of Commodities (Alpha) Master Inst 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: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 DBARN NET: Commences Liquidation Proceedings -------------------------------------------- The sole shareholder of Dbarn Net Interest Margin 2006-FM2N, on Nov. 25, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 31, 2016, will be included in the company's dividend distribution. The company's liquidator is: Alan Turner c/o Andrew Johnson Circumference FS (Cayman) Ltd. P.O. Box 32322 Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 814 0700 ELECTRICINVEST (WINDCO II): Commences Liquidation Proceedings ------------------------------------------------------------- At an extraordinary meeting held on Dec. 5, 2016, the members of Centennial UK II Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 9, 2017, will be included in the company's dividend distribution. The company's liquidator is: Isa Zainal c/o Ica Eden P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 LB ALPHA: Commences Liquidation Proceedings ------------------------------------------- The shareholders of LB Alpha Finance Cayman Limited, on Nov. 30, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 2017, will be included in the company's dividend distribution. The company's liquidator is: Christopher Smith Krys Global Vl Services Limited Governors Square, Building 6, 2nd Floor 23 Lime Tree Bay Avenue, P.O. Box 31237 Grand Cayman KY1-1205 Telephone: (345) 947 4700 LB BETA: Commences Liquidation Proceedings ------------------------------------------ The sole shareholder of LB Beta Finance Cayman Limited, on Nov. 30, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 2017, will be included in the company's dividend distribution. The company's liquidator is: Christopher Smith Krys Global Vl Services Limited Governors Square, Building 6, 2nd Floor 23 Lime Tree Bay Avenue, P.O. Box 31237 Grand Cayman KY1-1205 Telephone: (345) 947 4700 LIMETREE CAPITAL: Commences Liquidation Proceedings --------------------------------------------------- The sole shareholder of Limetree Capital Partners Limited, on Dec. 6, 2016, 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: Cathlin Rossiter c/o Genesis Trust & Corporate Services Ltd. P.O. Box 448 Grand Cayman KY1-1106 Elgin Court Elgin Avenue, George Town Cayman Islands Telephone: (345) 815 8512 Facsimile: (345) 945 3470 MAXIMUM EMERGING: Commences Liquidation Proceedings --------------------------------------------------- The shareholders of Maximum Emerging Markets Alpha, on Dec. 2, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands RACON FUND: Placed Under Voluntary Wind-Up ------------------------------------------ The sole shareholder of Racon Fund Ltd., on Dec. 9, 2016, 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: Racon Capital Partners LLC c/o Sophia Leavett Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands RACON MASTER: Placed Under Voluntary Wind-Up -------------------------------------------- The sole shareholder of Racon Master Fund Ltd., on Dec. 9, 2016, 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: Racon Capital Partners LLC c/o Sophia Leavett Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands SHARPS SP I 2006-NC2N: Commences Liquidation Proceedings -------------------------------------------------------- The sole shareholder of Sharps SP I LLC Net Interest Margin 2006- NC2N, on Nov. 25, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 31, 2016, will be included in the company's dividend distribution. The company's liquidator is: Alan Turner c/o Andrew Johnson Telephone: (345) 814 0700 Circumference FS (Cayman) Ltd. P.O. Box 32322 Grand Cayman, KY1-1209 Cayman Islands SHARPS SP I 2006-RS6N: Commences Liquidation Proceedings -------------------------------------------------------- The sole shareholder of Sharps SP I LLC Net Interest Margin 2006- RS6N, on Nov. 25, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 31, 2016, will be included in the company's dividend distribution. The company's liquidator is: Alan Turner c/o Andrew Johnson Circumference FS (Cayman) Ltd. P.O. Box 32322 Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 814 0700 STANDARD PACIFIC: Commences Liquidation Proceedings --------------------------------------------------- The members of Standard Pacific Pan-Asia Fund, Ltd., on Dec. 6, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Scrap Yards Halted on Rivers ------------------------------------------------ RJR News reports that the Dominican Republic Environment Ministry supervises the 241 companies that dump waste directly into the Ozama and Isabela rivers to determine if their operations include treatment plants. "We inventoried 241 companies and divided them into blocks of 60. We are visiting them one by one and depending on their characteristics, we will take the correspond decisions," Environment Minister Francisco Dominguez said, according to RJR News. The report notes that Mr. Dominguez said they visited some slaughterhouses and what "we observed was crazy. They are full of worms, they do not have hygienic conditions and they hurl all their waste to the rivers." Mr. Dominguez said some of the companies they have visited have treatment plants, but should improve them, the report relays. Mr. Dominguez met with leaders of community organizations who reiterated their support for the resolution to rescue and clean-up of the Isabela and Ozama rivers. When asked why the companies that gut ships for scrap metal still operate on the Ozama and Isabela despite the expired deadline, Mr. Dominguez said they are completing their repairs and are not scrapping, the report relays. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Fitch Ratings has taken the following rating actions on the Dominican Republic: -- Long-Term Foreign Currency Issuer Default Rating (IDR) upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Senior unsecured Foreign and Local Currency bonds upgraded to 'BB-' from 'B+'; -- Short-Term Foreign Currency IDR affirmed at 'B'; -- Short-Term Local Currency IDR affirmed at 'B'. ============= J A M A I C A ============= JAMAICA: No Need to Rely on Int'l Market to Raise Funds in 2017 --------------------------------------------------------------- RJR News reports that the Government has signaled that it will not have to rely on the international capital market to raise funds during the next financial year. Finance Minister Audley Shaw says with the early redemption of some Government of Jamaica bonds the need for foreign cash has been reduced, according to RJR News. "And this is the main reason for the elevated figure on the debt servicing side. What this means is that for the next fiscal year, there will be no need to go into the international capital market . . . . " Mr. Shaw said, the report notes. Meanwhile, the Government is faced with more debt than it expected this fiscal year -- it is estimated at J$224.5 billion, the report relays. Principal payments are expected to increase by $6.9 billion and interest payments $1.7 billion, the report notes. The Finance Minister says the impact of exchange rate movements and pre-financing arrangements also impacted the debt stock, 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+'. ====================== P U E R T O R I C O ====================== AEROPOSTALE INC: Court Extends Plan Filing Period to March 1 ------------------------------------------------------------ Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York extended Aeropostale, Inc., et al.'s exclusive periods for filing a chapter 11 plan and soliciting acceptances to the plan through March 1, 2017 and April 30, 2017, respectively. Absent the extension, the Debtor's exclusive plan filing period would have expired on December 31, 2016. The Debtor's exclusive solicitation period was set to expire on March 1, 2017. About Aeropostale, Inc. Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. From Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016 the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc. has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc., and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schubac, senior vice president, general counsel and secretary. The Debtors listed total assets of $354.38 million and total debts of $390.02 million as of Jan. 30, 2016. The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc., as restructuring advisor; Stifel, Nicolaus & Company, Inc., and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11, 2016, appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee hired Pachulski Stang Ziehl & Jones LLP as counsel. FARMACIAS FREDDY: Hires Batista Law Group as Counsel ---------------------------------------------------- Farmacias Freddy, Inc., seeks authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Batista Law Group, PSC as counsel for the Debtor. The Debtor said it is not sufficiently familiar with the law to be able to plan and conduct the Chapter 11 proceedings without competent legal counsel. The Debtor has found the law firm and its members to be duly qualified to represent the Debtor in these proceedings by reason of their ability, integrity and professional experience. Batista Law Group will be paid at these hourly rates: Jesus E. Batista Sanchez, Esq. $225.00 Associates $150.00 Paralegals $75.00 Batista will also be reimbursed for reasonable out-of-pocket expenses incurred. Jesus E. Batista Sanchez, Esq., principal of the Batista Law Group, PSC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code anddoes not represent any interest adverse to the Debtor and its estates. Batista Law Group may be reached at: Jesus E. Batista Sanchez, Esq. Batista Law Group, PSC 20 Ave. Munoz Rivera, Suite 901 San Juan, PR 00918 Telephone: 787-620-2856 Fax: 787-777-1589 Farmacias Freddy, Inc., based in Naguabo, Puerto Rico, filed a Chapter 11 bankruptcy petition (Bankr. D. P.R. Case No. 16-09980) on December 23, 2016. The Hon. Brian K. Tester presides over the case. Jesus Enrique Batista Sanchez, Esq., at The Batista Law Group, PSC, serves as Chapter 11 counsel. In its petition, the Debtor listed $646,094 in total assets and $1.05 million in total liabilities. The petition was signed by Ivan Garcia, president. ================================ T R I N I D A D & T O B A G O ================================ PETROTRIN: $600 Million in Projected Loss for 2016 -------------------------------------------------- Trinidad Express reports that it is alarming, though not surprising, how the crown jewel of Trinidad and Tobago's oil industry, Petrotrin, could, in less than two decades, turn into a crown of thorns that inflicts pain on a nation to which, not long ago, it delivered huge profits and paid more taxes than any other corporation. The one-time giant, which is still the biggest producer of crude oil and has the biggest asset-base in Trinidad & Tobago ($37 billion in 2015, down from $45 billion in 2014), has been brought to its knees with a staggering debt of $13.2 billion and a bond of US$850 million that is payable in 2019, according to Trinidad Express. This grim financial scenario comes in the wake of the company's revenue falling from $29 billion in 2014 to $19 billion in 2015 and $16 billion in 2016, the report notes. Petrotrin posted a loss of $822 million in 2015 and the projected loss for 2016 is $600 million, according to the report. About Petrotrin Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on July 23, 2015, Trinidad Express reports that state-owned Petroleum Company of Trinidad and Tobago (Petrotrin) multiplied its losses 11.2 times to reach US$168 million for the nine months ended June 30 compared to US$15 million loss for the same period last year, but its earnings before income tax, depreciation and amortisation (EBITDA) rose 132 per cent between March and June, preliminary financials show. TCRLA reported on Dec. 2, 2014, that Trinidad and Tobago Newsday said that in the face of falling global oil prices, which is starring to impact on Trinidad and Tobago's earnings from its petroleum resources, Petroleum Company of Trinidad and Tobago has rolled out a plan to remain viable and to survive in the harsh global oil industry. Petrotrin said in a media release that it is forging ahead with objective cost management decisions imperative to secure its viability, according to Trinidad and Tobago Newsday. The report said Petrotrin's operations have also been severely impacted due to unfavorable margins. The TCRLA reported on Jan. 21, 2014 that Trinidad Express, citing Energy Minister Kevin Ramnarine, said Petrotrin will make a loss for its 2013 financial year. According to Mr. Ramnarine, Petrotrin was scheduled to make the loss even before the series of oil spills affecting Trinidad's southwestern peninsula since December, reports Trinidad Express. PETROTRIN: Consultant Makes Suggestions for Firm to Stay Relevant ----------------------------------------------------------------- Trinidad Express reports that Ved Seereeram, financial consultant and former Citibank vice president, and Vaalmikki Arjoon, University of the West Indies (The UWI) financial economics lecturer, offered some solutions financial for Petrotrin. They suggested to make Petrotrin an essential service, expedite the plan to power vehicles with compressed natural gas (CNG), allow competition in fuel supply, and cut staff, according to Trinidad Express. "Developing a contingency plan for the supply of fuel to industries and the citizens is critical, since a shut down of the refinery could occur for many reasons. In the case of other monopolistic industries, there are alternatives to create competition through the establishment of mini plants," Mr. Seereeram said, adding that new technology available today can allow this to happen, the report adds. About Petrotrin Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on July 23, 2015, Trinidad Express reports that state-owned Petroleum Company of Trinidad and Tobago (Petrotrin) multiplied its losses 11.2 times to reach US$168 million for the nine months ended June 30 compared to US$15 million loss for the same period last year, but its earnings before income tax, depreciation and amortisation (EBITDA) rose 132 per cent between March and June, preliminary financials show. TCRLA reported on Dec. 2, 2014, that Trinidad and Tobago Newsday said that in the face of falling global oil prices, which is starring to impact on Trinidad and Tobago's earnings from its petroleum resources, Petroleum Company of Trinidad and Tobago has rolled out a plan to remain viable and to survive in the harsh global oil industry. Petrotrin said in a media release that it is forging ahead with objective cost management decisions imperative to secure its viability, according to Trinidad and Tobago Newsday. The report said Petrotrin's operations have also been severely impacted due to unfavorable margins. The TCRLA reported on Jan. 21, 2014 that Trinidad Express, citing Energy Minister Kevin Ramnarine, said Petrotrin will make a loss for its 2013 financial year. According to Mr. Ramnarine, Petrotrin was scheduled to make the loss even before the series of oil spills affecting Trinidad's southwestern peninsula since December, reports Trinidad Express. *********** 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, Ivy B. Magdadaro, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2017. 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 * * *