/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170203.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, February 3, 2017, Vol. 18, No. 025 Headlines B R A Z I L JBS SA: Discloses Unit's Independent Board Members JBS SA: Moody's Assigns Ba1 Rating to USA Lux's $2.8BB Term Loan MARFRIG GLOBAL: Moody's Changes Outlook to Pos; Affirms B2 CFR C A Y M A N I S L A N D S LIBERTY HOLDINGS: Shareholders' Final Meeting Set for Feb. 3 LV PACIFIC: Shareholders Receive Wind-Up Report PANTHALASSA GP: Shareholders Receive Wind-Up Report PRASLIN LIMITED: Shareholder Receives Wind-Up Report RIOGAMA LIMITED: Shareholders Receive Wind-Up Report SECUREX LIMITED: Shareholders Receive Wind-Up Report STRAVA ENHANCED: Shareholder Receives Wind-Up Report STRAVA OFFSHORE: Shareholder Receives Wind-Up Report TETON SPC: Shareholder Receives Wind-Up Report THREE MOUNTAIN: Shareholders Receive Wind-Up Report THREE MOUNTAIN MASTER: Shareholders Receive Wind-Up Report Y2L COMPANY: Shareholders Receive Wind-Up Report E L S A L V A D O R EL SALVADOR: Fitch Lowers IDRs to 'B'; Outlook Revised to Negative G U Y A N A GUYANA: Tax on Domestic Flights Causing Turbulence M E X I C O MEXICO: NAFTA Renegotiations to Start in 90 Days MEXICO: President Under Fire Over Trump Phone Call P U E R T O R I C O PASO GAS: Hires Vega CPA as Accountant SPI ENERGY: LDK New Energy Holds 21.7% of Shares as of Jan. 25 T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Leaders Seek State Of Emergency Declaration - - - - - =========== B R A Z I L =========== JBS SA: Discloses Unit's Independent Board Members -------------------------------------------------- JBS S.A. disclosed to its shareholders and the market in general the appointment of independent members of the Board of its subsidiary JBS Foods International. The directors will serve on the JBS Foods International Board of Directors only after the company's effective listing on the NYSE. Mr. John Boehner The Honorable John Boehner is the 53rd Speaker of the U.S. House of Representatives. He served as the representative of Ohio's 8th Congressional District from 1991 to 2015. During his time in Congress, he served as Vice Chairman of the U.S. House Committee on Agriculture and as Chairman of the U.S. House Committee on Education and the Workforce. He was the House majority leader from 2006 to 2007, and House minority leader from 2007 through 2010. In January 2011, he was elected U.S. Speaker of the House. He retired from Congress in October 2015 after more than 30 years of public service. Speaker Boehner is currently a Senior Strategic Advisor at Squire Patton Boggs, a full-service global law and public policy firm, where he provides strategic advice and counsel to clients on all aspects of domestic and international policy, drawing from his decades of experience both in business and at the highest levels of the U.S. government. He currently serves as a member of the Board of Directors of Reynolds American (RAI). Mr. Greg Heckman Mr. Heckman is an accomplished leader with more than 30 years of experience in the agriculture and energy industries, and a strong understanding of commodity and overall business risk management. Mr. Heckman is the former President and CEO of The Gavilon Group, where he directed the carve-out of the company from ConAgra Foods in 2008. As CEO of Gavilon, he doubled the size of the Company from 2008 to 2012, and led its successful sale to Marubeni in 2013. Prior to leading Gavilon, he spent 24 years with ConAgra Foods, where he had leadership responsibility for multiple business segments and corporate functions. Currently, Mr. Heckman is one of the founding partners of Flatwater Partners, LLC, a private investment company. Mr. Heckman serves as a member of the Board of Directors of OCI N.V. (NYSE:OCI), a global producer of natural gas-based fertilizers and industrial chemicals. He is also a Board Member of Waitt Brands and previously served on the Board of Trustees for Brownell-Talbot College Preparatory School. Mr. Charles Macaluso Mr. Macaluso has been a principal at Dorchester Capital Advisors, LLC, a management consulting and corporate advisory service firm focusing on operational assessment, strategic planning and workouts, since 1998. He has significant experience in operational assessment, strategic planning, crisis management and turnaround advisory services. Mr. Macaluso currently serves as a member of the Board Directors of Darling Ingredients Inc. (DAR), Pilgrim's Pride Corporation (PPC) and Global Equipment Power Group (GLPW). During the past five years, Mr. Macaluso also served as a director of the Elder Beerman Stores Corp. and Global Crossing Limited. Mr. Macaluso is also a member of the National Association of Corporate Directors. Mr. Steven Mills Mr. Mills is a consultant and advisor, providing services to clients in the private equity, agribusiness, renewable products and financial services fields. He has nearly 40 years of experience in the fields of accounting, corporate finance, strategic planning, risk management, and mergers & acquisitions. He served as CFO of Amryis, Inc. (AMRS), an integrated renewable products company, from May 2012 to December 2013. Prior to joining Amyris, he had a 33-year career at Archer-Daniels-Midland Company (ADM), one of the world's largest agricultural processors and food ingredient providers. At ADM, he held various senior executive roles, including Chief Financial Officer, Controller, and responsibility for leading ADM's strategic efforts globally. Mr. Mills is currently a member of the Board of Directors of Black Hills Corporation (BKH), a vertically-integrated energy company, where he chairs the audit committee. He also serves on the boards of Farmers Edge, Inc., Big Red Group Holdings LLC, Hickory Point Bank & Trust. Mr. Dimitri Panayotopoulos Mr. Panayotopoulos is former Vice Chairman and Advisor to the Chairman and Chief Executive Officer of Procter & Gamble (PG), a global consumer goods company and manufacturer of family, personal and household care products. During his 37-year career at Procter & Gamble, he worked in many markets across the globe and was involved in and led significant breakthrough innovations. He continued to focus on innovation, speed to market and scale across all of Procter & Gamble's businesses while Vice Chairman of all Global Business Units. JBS SA: Moody's Assigns Ba1 Rating to USA Lux's $2.8BB Term Loan ---------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 rating to a new $2.8 billion 5-year parent-guaranteed senior secured term loan being arranged by JBS USA Lux S.A. Net proceeds from the new term loan will be used to consolidate existing senior secured term loans and to repay other debt at parent guarantor JBS S.A. (Ba2 stable) and subsidiaries. The assigned rating is subject to completion and final documentation of the offering. The rating outlook is stable. JBS USA's three existing senior secured term loans totaling $2.09 billion will be refinanced into the new $2.8 billion term loan with the incremental $710 million to be used to retire more costly debt at JBS USA or JBS S.A. and subsidiaries. The new term loan is expected to be priced at least 25 basis points lower than the debt to be retired, which could generate over $40 million of annual cash interest cost savings. JBS USA plans to complete the transaction and the refinancings in February 2017 after which time Moody's will withdraw the ratings of the existing term loans and other rated debt instruments that are repaid. RATINGS RATIONALE JBS USA's direct debt instruments are guaranteed by parent company JBS S.A, which controls JBS USA in all material respects. Thus, JBS USA's instrument ratings are driven primarily by the JBS S.A. Corporate Family Rating. Moody's expects any future changes to the JBS USA debt instrument ratings to mirror changes to the JBS S.A. Corporate Family Rating. Moody's has taken the following actions on JBS USA Lux, LLC: Rating assigned: Proposed $2.8 billion guaranteed senior secured term loan due September 2022 at Ba1. Ratings to be withdrawn at closing: $408 million guaranteed senior secured term loan due May 2018 at Ba1; $486 million guaranteed senior secured term loan due September 2020 at Ba1; $1.2 billion guaranteed senior secured term loan due September 2022 at Ba1. The rating outlook is stable. The security package, parent guarantee and right of payment of the new $2.8 billion term loan will be identical to those of the existing term loans. JBS USA currently has three senior secured term loans outstanding under a master term loan agreement: $408 million due 2018, $486 million due 2020 and $1.2 billion due 2022, all rated Ba1, or one notch above the Ba2 Corporate Family Rating of JBS S.A. The higher notching reflects the significant value of assets (over $3 billion) pledged directly to the term loan lenders and the senior position of the term loans relative to $3.5 billion of JBS USA senior unsecured debt. The term loans are effectively subordinate to a $900 million asset-based revolving line that is secured by JBS USA's most liquid assets -- accounts receivable, finished goods and supply inventories. The asset-based revolver, the secured term loans and nearly all of the unsecured notes have downstream guarantees from the ultimate parent JBS S.A., as well as from intermediate holding company, JBS Holdings. JBS USA operates the US beef and pork segments and the Australian beef and lamb operations of Brazil-based JBS S.A., the largest protein processor in the world. JBS USA also owns a controlling indirect 76.7% equity interest in US-based Pilgrim's Pride Corporation (Ba3 stable), the second largest poultry processor in the world. Reported net sales for JBS S.A. and JBS USA for the twelve months ended September 2016 were approximately BRL 175.9 billion (USD 56.4 billion) and $32.8 billion, respectively. The principal methodology used in this rating was "Global Protein and Agriculture Industry" published in May 2013. MARFRIG GLOBAL: Moody's Changes Outlook to Pos; Affirms B2 CFR -------------------------------------------------------------- Moody's Investors Service affirmed Marfrig Global Foods S.A.'s B2 ratings, including its corporate family ratings (CFR) and the senior unsecured ratings of Marfrig Holdings (Europe) B.V. and Marfrig Overseas Limited. At the same time Moody's changed the company's outlook to positive from stable. The following ratings have been affirmed: Issuer: Marfrig Global Foods S.A. -- Corporate Family Rating: B2 (global scale); Issuer: Marfrig Overseas Limited and guaranteed by Marfrig: -- USD 484 million 9.500% senior unsecured guaranteed notes due 2020: B2 (foreign currency); Issuer: Marfrig Holdings (Europe) B.V. and guaranteed by Marfrig: -- USD 281 million 8.375% senior unsecured guaranteed notes due 2018: B2 (foreign currency); -- USD 660 million 6.875% senior unsecured guaranteed notes due 2019: B2 (foreign currency); -- USD 27 million 11.250% senior unsecured guaranteed notes due 2021: B2 (foreign currency); -- USD 1000 million 8.000% senior unsecured guaranteed notes due 2023: B2 (foreign currency); The outlook of all ratings is Positive RATINGS RATIONALE The change in outlook to positive from stable follows the conversion of BRL2.1 billion in debentures to equity and the perspective of improving margins for the Latin American beef operations during 2017. Moreover, it also recognizes the company's (i) consistent strategy of organic growth and deleveraging, (ii) remarkable improvement in liquidity profile over several quarters and (iii) increased participation of the more stable US poultry business in sales. The mentioned debentures were subscribed by BNDESPAR in 2014, in order to redeem BRL2.1 in outstanding balance of debentures from the 2nd issue, and the last interest payment was made on January 26, 2017, same date in which the conversion of 214,955 debentures into shares was announced. Marfrig's B2 ratings are supported by its diversified portfolio of animal proteins, as well as a diverse geographic footprint and distribution capabilities. The company's diversity in terms of raw material sourcing reduces risks related to weather and animal diseases, while its product portfolio and food service business help to mitigate some of the volatility inherent in commodity cycles and supply-demand conditions for each specific protein. In addition, the company has maintained a clear focus on organic growth, presents a good liquidity profile, and has been working to deleverage via higher EBITDA generation and disposal of assets. On the other hand, the ratings are constrained by a considerable exposure to the commodity related business which is highly volatile. Event risks and sharp price movements are common. In recent years the deleveraging effort of the company has been delayed initially by higher USD denominated debt and interest burden caused by the Brazilian Real (BRL) depreciation. More recently, margins in the beef operations were compressed by a stronger BRL, that led to lower BRL revenues from exports while cattle costs remained at historically high levels, in BRL terms. Marfrig's adjusted leverage, measured by gross debt to EBITDA remains high, and it should peak at around 6.8x by December 2016. Pro-forma to the conversion of BRL 2.1 billion in debentures into equity this figure would be at 5.8x. Going forward, Moody's estimates that gradual improvements in operating performance will translate into overall better metrics, considering (i) the EBITDA generation from Keystone Foods, both in the US and Asia poultry operations, will remain at high single digit level, especially given the advance of sales in Asia and international low feed costs, and (ii) EBITDA margin recovery for the beef segment (Brazil, Uruguay and Argentina beef operations), with lower average cattle costs, as compared to 2016, as well as an improved consumer scenario in Brazil and an increase in export volumes, towards the end of 2017. These events paired with active liability management will also yield an improvement in interest coverage by 2018. As of September 30, 2016, Marfrig's total cash balance of BRL 5.7 billion was sufficient to cover reported short term debt by 3.1x. Additionally, the company currently holds, through its subsidiary Keystone, approximately USD300 million (BRL 940 million) in revolving credit facilities available. The positive outlook reflects Moody's views that Marfrig will be able to gradually reduce leverage while sustaining a good liquidity profile and generating positive free cash flow in 2017. FACTORS THAT COULD LEAD TO AN UPGRADE The ratings could be upgraded if Marfrig maintains a consistent and predictable execution of its financial policy with the ability to improve operating margins from current levels and maintain a good liquidity. In addition, it would require CFO/Net Debt approaching 15% and a Total Debt/EBITDA below 4.5x. FACTORS THAT COULD LEAD TO A DOWNGRADE Marfrig's ratings could be downgraded if a consistent and predictable financial policy execution is not observed going forward. A downgrade could also be triggered if liquidity were to deteriorate in a way that unrestricted cash position would represent less than 80% of short term debt. Quantitatively, downward pressure on Marfrig's B2 rating or outlook is likely if Total Debt / EBITDA is sustained above 6.0x, EBITA to gross interest expense falls below 1.0x or if Retained Cash Flow to Net Debt is below 10%. All credit metrics are according to Moody's standard adjustments and definitions. Marfrig, headquartered in Sao Paulo, Brazil, is one of the largest protein players globally, with consolidated revenues of BRL 18.9 billion (approximately USD 5.2 billion) in the last twelve months period ended in September 30, 2016. The company has significant scale and is diversified in terms of sales, raw materials and product portfolio, with operations in Brazil, US, Uruguay, Argentina, and Asia-Pacific and presence in the beef, poultry and food service segments. The company has two main business segments - Keystone Foods and Marfrig Beef, each representing approximately 50% of Marfrig's total revenues. Approximately 80% of Marfrig's sales and EBITDA are tied to foreign currencies, with food service, which produces less volatile cash flows than the in- natura exports business, representing 56% of total EBITDA. Keystone Foods, headquartered in the US, is one of the world's largest food service suppliers in the US and Asia, with Mc Donald's accounting for 57% of its revenues. Marfrig Beef is the world's third largest beef producer. The principal methodology used in these ratings was Global Protein and Agriculture Industry published in May 2013. ========================== C A Y M A N I S L A N D S ========================== LIBERTY HOLDINGS: Shareholders' Final Meeting Set for Feb. 3 ------------------------------------------------------------ The shareholders of Liberty Holdings Limited will hold their final meeting on Feb. 3, 2017, 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: Dr. Rolf Schmid Dorothee Langemann Limmatquai 94 Zurich, Switzerland CH-8021 Telephone: 41 44 711 71 71 Facsimile: 41 44 711 71 11 LV PACIFIC: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of LV Pacific Opportunities received on Jan. 12, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Larrain Vial Investment Inc. Av. El Bosque 0117, 4th Floor Las Condes Santiago Chile Telephone: +55 9 23398500 E-mail: rurzua@larrainvial.com PANTHALASSA GP: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Panthalassa GP Limited received on Jan. 11, 2017, 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 PRASLIN LIMITED: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Praslin Limited received on Jan. 19, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Priestleys c/o Anna Cummings P.O. Box 30310 Grand Cayman KY1-1202 Cayman Islands Telephone: (345) 945 1577 Facsimile: (345) 947 0826 RIOGAMA LIMITED: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Riogama Limited received on Jan. 19, 2017, 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 Enola Reid 136 Shedden Road One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman KY1-1106 Cayman Islands Telephone: +1 (345) 914-5413 SECUREX LIMITED: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Securex Limited received on Dec. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Amicorp Cayman Fiduciary Limited c/o Nicole Ebanks-Sloley The Grand Pavilion Commercial Centre, 1st Floor 802 West Bay Road P.O. Box 10655 Grand Cayman KY1-1006 Cayman Islands Telephone: (345) 943-6055 STRAVA ENHANCED: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Strava Enhanced Fund Ltd. received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Strava Capital Investments GP c/o Tim Cone Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 STRAVA OFFSHORE: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Strava Offshore Fund, Ltd. received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Strava Capital Investments GP c/o Tim Cone Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 TETON SPC: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of Teton SPC Limited received on Jan. 20, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands Telephone: (345)949-8244 Facsimile: (345)949-5223 THREE MOUNTAIN: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Three Mountain Global Macro Fund, Ltd. received on Jan. 12, 2017, 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 THREE MOUNTAIN MASTER: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Three Mountain Global Macro Master Fund, Ltd. received on Jan. 12, 2017, 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 Y2L COMPANY: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Y2L Company Limited received on Jan. 19, 2017, 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 Enola Reid 136 Shedden Road One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman KY1-1106 Cayman Islands Telephone: +1 (345) 914-5413 ==================== E L S A L V A D O R ==================== EL SALVADOR: Fitch Lowers IDRs to 'B'; Outlook Revised to Negative ------------------------------------------------------------------ Fitch Ratings has downgraded El Salvador's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B' from 'B+'. The Rating Outlook was revised to Negative from Stable. The issue ratings on El Salvador's senior unsecured Foreign and Local Currency bonds are also downgraded to 'B'. The Country Ceiling is downgraded to 'BB-' from 'BB'. The Short-Term Foreign Currency IDR is affirmed at 'B'. KEY RATING DRIVERS The downgrade reflects El Salvador's continuing high level of political polarization with a prolonged period of congressional gridlock that has severely limited the government's financing options and hindered meaningful fiscal measures to arrest the deterioration of public finances. The Negative Outlook reflects persisting risks to meeting financing needs for 2017 in the absence of a political agreement that unlocks additional external borrowing. Fiscal policy negotiations between the two main political parties broke down in January 2017 over disagreements on the 2017 budget. The political polarization between the government-led FMLN party and the main opposition ARENA party has prevented the government from issuing external debt since September 2014. A 2/3 majority of the Congress is needed to authorize external debt issuance, requiring agreement from the opposition. As a result, the government has relied mostly on the issuance of local short-term debt (Letes), which reached $1.07 billion as of end-December 2016 from $794 at year-end 2015. The legal limit of Letes issuance is $1.34 billion. Furthermore, government arrears have accumulated due to the lack of financing options and the resulting liquidity crunch. Fitch estimates El Salvador's 2017 financing needs at $1.3 billion (excluding short-term debt). Fitch's base-case scenario assumes it will be financed through some combination of external debt and local issuance. A further build-up of arrears can occur given the financing constraints the government is confronting. El Salvador has no long-term amortization of external commercial debt until 2019. Tax and pension reform measures require only a simple majority vote of the legislature and can help reduce financing needs, although the election cycle can hurt prospects for getting these measures approved in congress. In November 2016, the government and ARENA reached a partial agreement that included a Fiscal Responsibility Law (calling for a 3% of GDP adjustment over three years) and authorization of $550 million in external issuance. However, a final agreement over specific fiscal measures remains elusive. Failure to reach an agreement in a timely fashion, most likely under the auspices of an IMF program, could further constrain financing flexibility and result in a disorderly adjustment with significant damage to public finances and the overall economy. El Salvador's fiscal deficit fell to 2.5% of GDP in 2016 from 3.3% in 2015 partly as result of fiscal restraint and relatively buoyant tax revenues, which grew by an estimated 6% in 2016, although there was some build-up of government arrears as well. El Salvador's GDP growth remains low compared to that of its peers, with five-year average GDP growth at just 2% compared to a 'B ' median of 4.1%. El Salvador's growth is estimated at 2.5% in 2016, similar to the growth rate in 2015. Fitch expects growth of over 2% in 2017-18. However, the continuation of such a modest rate of growth is insufficient to generate employment, reduce poverty or stabilize the general government debt dynamics. Political polarization, security concerns, and high emigration levels undermine the business climate and hinder investment prospects and growth. Fiscal deficits and weak growth are leading to a steadily increasing debt burden, to an expected 62.8% of GDP in 2017 up from 61.6% in 2016 and 60% in 2015. Furthermore, the interest burden is expected to continue to rise, growing to nearly 14% of revenues in 2017 from 12.9% in 2016. The 'B' ratings are supported by El Salvador's macroeconomic stability underpinned by full dollarization of the economy, adequately capitalized banking system and unblemished sovereign repayment record. The country has a higher income per capita, social development and governance indicators than peers. The banking sector remains sound due to prudent regulation, although the weak economy could affect asset quality and profitability. SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO) Fitch's proprietary SRM assigns El Salvador a score equivalent to a rating of 'BB' on the Long-Term FC IDR scale. Fitch's sovereign rating committee adjusted the output from the SRM to arrive at the final LT FC IDR by applying its QO, relative to rated peers, as follows: -- Structural: Minus 1 notch to reflect the deep political polarization in El Salvador that has made fiscal and financing agreements difficult to reach. -- Public Finances: Minus 1 notch to reflect El Salvador's narrow tax base and budgetary rigidities that make fiscal consolidation difficult to achieve, as well as the government's increasing reliance on short-term debt to meet its substantial financing needs and the difficulty of obtaining authorization for external debt issuance. -- Macroeconomics: Minus 1 notch to reflect El Salvador's weaker potential growth prospects relative to the 'B' median, with important repercussions for public finances. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within our criteria that are not fully quantifiable and/or not fully reflected in the SRM. RATING SENSITIVITIES The main factors that could, individually or collectively, lead to a negative rating action are: -- Hardening financing constraints in domestic or international markets. -- Failure to break the political impasse resulting in heightened financing challenges and a further build-up in government arrears. The Rating Outlook is Negative. Consequently, Fitch's sensitivity analysis does not currently anticipate developments with a high likelihood of leading to a positive rating change. Future developments that could, individually or collectively, result in a stabilization of the Outlook include: -- An easing of political tensions that improves financing flexibility and reduces short-term debt -- Fiscal adjustment (including a possible IMF agreement) that improves prospects for debt stabilization. -- Improvements in the political and business environment that support growth and investment prospects. KEY ASSUMPTIONS -- The sovereign will continue to prioritize debt service, finance itself through treasury bills and tap the international capital markets. -- U.S. economic growth continues to support economic and external forecasts. Furthermore, oil prices rise only gradually, to $45 in 2017 and $55 in 2018, helping contain imports, utility subsidies and consumer prices. -- Monetary policy normalization in the U.S. proceeds in a gradual and orderly manner, not resulting in external financing constraints for El Salvador in 2016-2018. =========== G U Y A N A =========== GUYANA: Tax on Domestic Flights Causing Turbulence -------------------------------------------------- Caribbean360.com reports that the imposition of the 14 per cent Value Added Tax (VAT) on domestic flights in Guyana is not flying well with citizens, tourists and business leaders. Several players in key sectors are already forecasting a drop in movement and a loss of revenue, according to Caribbean360.com. President of the National Air Transportation Association (NATA) Annette Arjoon-Martins told Demerara Waves Online News it will be a major challenge for clients, including tourists and workers in the mining sectors who have to travel frequently, the report notes. "The big challenge to us is all of our customers who depend on hinterland transportation -- for example, our tourism clientele, our mining clientele -- will be affected, because the cost of interior travel will go up. We feel, as well, that this will have an effect on those sectors," the report relays. The tax measure will not affect residents from the hinterland. But Ms. Arjoon-Martins said the implementation of the measure was also confusing, saying there was no clear procedure to identify who is a hinterland resident, the report notes. One official of domestic carrier Roraima Airways has already indicated the airline will charge everyone, since the Guyana Revenue Authority (GRA) had not provided criteria, the report discloses. She said domestic carriers would be collecting data on the tax's impact on travel to make a clear case for the GRA to scrap the measure, the report says. "I am sort of comforted by the fact that we should be able to go back to the GRA within a couple of months to substantiate our claim to show obviously that there will obviously be some shrinkage, and hopefully the door will be opened for further conversation," said Ms. Arjoon-Martins. Meanwhile, president of the Tourism and Hospitality Association of Guyana Andrea De Caires has called for a 60-day grace period to avoid operators having to absorb the tax, since several bookings would have made been made months ago, the report notes. "The biggest concern is for the trips that have already been sold. If a tour operator has sold something and the customers have already paid, it is difficult for a tour operator to now go back and say there is 14 per cent more on the airfare, so the tour operators are having to absorb that cost," Ms. Arjoon-Martins told Demerara Waves Online. =========== M E X I C O =========== MEXICO: NAFTA Renegotiations to Start in 90 Days ------------------------------------------------ EFE News reports that Mexico's president said talks to renegotiate the 1994 North American Free Trade Agreement linking his country with the United States and Canada would begin after a 90-day consultation period. Referring to those consultations with productive sectors in both Mexico and the US, Enrique Pe¤a Nieto said at the launch of a campaign dubbed "Made in Mexico" that they would set the parameters for a review of NAFTA, according to EFE News. MEXICO: President Under Fire Over Trump Phone Call -------------------------------------------------- Jose De Cordoba at The Wall Street Journal reports that Mexican President Enrique Pena Nieto faced calls to disclose details of his recent telephone call with U.S. President Donald Trump after media reports said Mr. Trump criticized the efficacy of Mexico's war on drug cartels. During the call, Mr. Trump is reported to have told his Mexican counterpart that Mexico wasn't doing a good enough job fighting cartels and that the U.S. stood ready to help, according to The Wall Street. "You have some pretty tough hombres in Mexico that you may need help with. We are willing to help with that big-league, but they have be knocked out and you have not done a good job knocking them out," Mr. Trump said, according to a transcript obtained by CNN, the report notes. Mr. Trump struck an unapologetic tone over the exchange at National Prayer Breakfast in Washington, the report relays. "When you hear about the tough phone calls I'm having, don't worry about it," Mr. Trump said at the annual event. "They're tough. We have to be tough. It's time we're going to be tough, folks. We're taken advantage of by every nation in the world, virtually. It's not going to happen anymore," he added. Earlier, the Associated Press reported that Mr. Trump had threatened to send U.S. troops to help fight the cartels if Mexico's army was too timid or couldn't handle the challenge, the report relays. The Mexican government said the AP's accounts of the remarks "do not correspond to reality," the report notes "The tone was constructive and an agreement was reached so work teams could meet often to build a positive accord for both Mexico and the U.S.," Mexico's foreign ministry said, the report notes. The reported criticism of Mexico's handling of the war on drug cartels, which has claimed about 120,000 lives since 2006, hasn't sat well with Mexicans. Mexico's army, which has maintained a wary stance toward the U.S. since the 1846-48 Mexican-American War, has lost about 400 soldiers fighting drug gangs over the past decade, according to the Mexican government, the report relays. "The armed forces will question their relationship with the U.S.," said Raul Benitez, a security analyst at the Autonomous National University of Mexico. "The [new U.S. administration] is risking throwing in the garbage, in a single week, the work of 20 years building a relationship," he added. Mr. Benitez said Mr. Trump was lighting the fire of Mexican nationalism, and stoking a feeling of national unity similar to when President Lazaro Cardenas nationalized foreign oil firms in 1938, the report relays. Mr. Benitez said Mr. Trump's alleged mention of "bad hombres" that the Mexican military couldn't deal with also awoke memories of Gen, the report notes. John J. Pershing's punitive and unsuccessful expedition into Mexico in pursuit of Mexican revolutionary Pancho Villa after Mr. Villa's cross-border attack on the New Mexico town of Columbus left 18 Americans dead in 1916, the report relays. "The argument is the same," said Mr. Benitez. "Pancho Villa was a bad guy nobody could deal with," he added. Several Mexican senators called on Mr. Pe¤a Nieto to disclose the details of the call to several senate committees, the report notes. "This would give us some certainty about what really happened," said Gabriela Cuevas, head of the Senate Foreign Relations Committee in Mexico and a member of the conservative opposition, the report relays. Whether Mr. Trump's comment was a threat, an offer of assistance, or a joke, it was inappropriate, said Alejandro Hope, a public- security expert who once worked at the country's civilian intelligence agency, the report discloses. Mr. Hope said Mexican and U.S. administrations have cooperated closely in the fight against drugs for more than a decade, the report notes. That cooperation has included the exchange of intelligence as well as the U.S. providing equipment and training, the report says. U.S. intelligence, for instance, twice helped lead Mexican armed forces to capture fugitive drug lord Joaquin "El Chapo" Guzman, the report relays. Mexican officials have long acknowledged that corruption makes the domestic fight against drug cartels more difficult. But both Mexican and U.S. governments have said demand by U.S. drug users is the root cause of the drug war, the report says. U.S. criticism of Mexico's military has caused problems in the sometimes prickly relationship between the two nations before, the report notes. In 2011, U.S. Ambassador Carlos Pascual resigned after WikiLeaks released several cables bearing his signature in which the U.S. envoy questioned Mexico's ability to tackle organized crime, the report relays. Then President Felipe Calderon of the conservative National Action Party was particularly angered by one cable signed by Mr. Pascual, a 23-year career diplomat, which described the Mexican army as risk-averse and inefficient, the report notes. Mr. Benitez said both U.S. and Mexican military officials have been ordered by their superiors not to talk to media about the alleged exchange between Mr. Trump and Mr. Pe¤a Nieto in an attempt to lower tensions, the report adds. ====================== P U E R T O R I C O ====================== PASO GAS: Hires Vega CPA as Accountant -------------------------------------- Paso Gas Corp. seeks permission from the United States Bankruptcy Court for the District Of Puerto Rico to employ Luis Armando Vega as the Debtor's accountant. Services to be rendered by the firm are: a. Reconciliation of financial information to assist Debtor in the preparation of monthly operating reports. b. Assist in the reconciliation and clarification of proof of claims filed and amount due to the creditors. c. Provide general accounting and tax services to prepare quarterly tax return, withholding statements, year-end reports and income tax preparation. d. Assist Debtor and Debtor's counsel in the preparation of the supporting documents for the Chapter 11 Reorganization Plan. For the reconciliation of the monthly financial information, which is subject to the approval of the Court and as specified in the engagement letter will be hourly rate of $60.00 plus reimbursement of actual out-of-pocket incurred in case. Luis Armando Vega attests that he is a disinterested person as defined in 11 USC sec. 101(14). The Accountant can be reached through: Luis Armando Vega HC 01 BOX 2937-9615 Florida, PR 00650 Tel: (787)910-9682 / (787)621-9196 Email: luarve@gmail.com About Paso Gas Corporation Paso Gas Corporation, based in Manati, Puerto Rico, filed a Chapter 11 petition (Bankr. D.P.R. Case No. 16-06843) on August 29, 2016. Manolo R Santiago, Esq., at Rivera-Velez & Santiago LLC, serves as bankruptcy counsel. In its petition, the Debtor indicated $480,489 in assets and $1.29 million in liabilities. The petition was signed by Nestor Algarin Lopez, president. SPI ENERGY: LDK New Energy Holds 21.7% of Shares as of Jan. 25 -------------------------------------------------------------- LDK New Energy Holding Limited disclosed in an amended Schedule 13D filed with the Securities and Exchange Commission that as of Jan. 25, 2017, it directly owns 534,000 ordinary shares and 1,220,000 American depositary shares (representing 12,200,000 Shares) and holds an option to purchase 162,170,000 Shares, subject to the completion of its purchase of all shares pursuant to the September 2016 SPA. As a result, as of Jan. 25, 2017, and excluding the additional Shares issuable to LDK under the September 2016 SPA, LDK beneficially owns 174,904,000 Shares, representing 21.7% of the total outstanding Shares (assuming the issuance of the 162,170,000 option Shares) of SPI Energy Co., Ltd. As of Jan. 25, 2017, Xiaofeng Peng directly owns 20,000 ADSs (representing 200,000 Shares) and an option to purchase 2,000,000 Shares within 60 days. As the spouse of Ms. Zhou, Mr. Peng may be deemed to beneficially own the Shares owned by Ms. Zhou pursuant to Section 13(d) of the Exchange Act and the rules promulgated thereunder. Similarly, as a director of LDK, Mr. Peng may be deemed to beneficially own the Shares owned by LDK. As a result, as of Jan. 25, 2017, and excluding the additional Shares issuable to LDK under the September 2016 SPA, Mr. Peng beneficially owns 264,604,000 Shares, representing 32.7% of the total outstanding Shares (assuming the issuance of the 162,170,000 option Shares). As of Jan. 25, 2017, Tracy Shan Zhou directly owns 8,750,000 ADSs (representing 87,500,000 Shares). As the spouse of Mr. Peng, Ms. Zhou may be deemed to beneficially own the Shares owned by Mr. Peng pursuant to Section 13(d) of the Exchange Act and the rules promulgated thereunder. Similarly, as a shareholder and director of LDK, Ms. Zhou may be deemed to beneficially own the Shares owned by LDK. As a result, as of Jan. 25, 2017, and excluding the additional Shares issuable to LDK under the September 2016 SPA, Ms. Zhou beneficially owns 264,604,000 Shares, representing 32.7% of the total outstanding Shares (assuming the issuance of the 162,170,000 option Shares). A full-text copy of the regulatory filing is available at: https://is.gd/PV0iof About SPI Energy Co. SPI Energy Co., Ltd., (As successor in interest to Solar Power, Inc.), is a global provider of photovoltaic (PV) solutions for business, residential, government and utility customers and investors. SPI Energy focuses on the downstream PV market including the development, financing, installation, operation and sale of utility-scale and residential solar power projects in China, Japan, Europe and North America. The Company operates an innovative online energy e-commerce and investment platform, http://www.solarbao.com/,which enables individual and institutional investors to purchase innovative PV-based investment and other products; as well as http://www.solartao.com/, a B2B e-commerce platform offering a range of PV products for both upstream and downstream suppliers and customers. The Company has its operating headquarters in Shanghai and maintains global operations in Asia, Europe, North America and Australia. SPI Energy reported a net loss of $185 million on $191 million of net sales for the year ended Dec. 31, 2015, compared to a net loss of $5.19 million on $91.6 million of net sales for the year ended Dec. 31, 2014. As of Dec. 31, 2015, SPI Energy had $710 million in total assets, $493 million in total liabilities and $216.6 million in total stockholders' equity. KPMG Huazhen LLP, in Shanghai, China, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that SPI Energy Co., Ltd., and its subsidiaries have suffered significant losses from operations and have a negative working capital as of Dec. 31, 2015. In addition, the Group has substantial amounts of debts that will become due for repayment in 2016. The auditors said these factors raise substantial doubt about the Group's ability to continue as a going concern. =============================== T R I N I D A D & T O B A G O =============================== TRINIDAD & TOBAGO: Leaders Seek State Of Emergency Declaration -------------------------------------------------------------- Caribbean360.com reports that Trinidad and Tobago is fast becoming "a land of anarchy and chaos", the country's business leaders have lamented, and they are urging the Government to declare a limited state of emergency. In a strong statement pleading with authorities to arrest the crime situation, The Couva/Point-Lisas Chamber of Commerce, Chaguanas Chamber of Industry and Commerce and the Penal/ Debe Chamber of Commerce said enough was enough and the country had to get a handle on what it described as "a ridiculous state of lawlessness and criminal activities in our country," according to Caribbean360.com. The business groupings bemoaned both Government's response and that of citizens who have been circulating several violent videos on social media, the report notes. "It is evident that we have lost respect for public spaces, as seen on many viral videos that [were] shared via social media recently. This begs the question, what about those that were no captured? It appears we are becoming a land of anarchy and chaos," the report relays. The Chambers suggested that the situation was so dire that it merited Trinidad and Tobago seeking help from other countries to tackle the scourge, the report discloses. The business leaders also made a strong case for the Government to strengthen the resources of the police force to detect and solve crime, the report notes. "More resources should be given to the forensic authorities to assist in the detection rate by increased staffing and updated technology. Given the recent positive changes made in the Licensing Department, this information should be shared with the Trinidad and Tobago Police Service by introducing a fully computerized system to detect criminal activities, for example, using on-board computer systems in "police vehicles, dash-cam and vest-cam systems," the report relays. More than five years ago, former Prime Minister Kamla Persad- Bissessar imposed a state of emergency in Trinidad and Tobago at the height of spiraling crime, the report notes. The business community had taken issue with the initiative, expressing concern that it had harmed economic activity, particularly at night, the report adds. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Psyche A. Castillon, Julie Anne L. Toledo, Ivy B. Magdadaro, 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 * * *