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/raid1/www/Hosts/bankrupt/TCRLA_Public/170512.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, May 12, 2017, Vol. 18, No. 93 Headlines B R A Z I L BRAZIL: Plans Changes to Bankruptcy Law to Bolster Recovery BRAZIL: Plans Law to Intervene in Troubled Telecoms, Anatel Says OI SA: Orascom Gives Firm Until June 1 for Reorganization Plan C A Y M A N I S L A N D S CMEH CORP: Creditors' Proofs of Debt Due May 22 CONAIR INTERNATIONAL: Creditors' Proofs of Debt Due May 22 JVK HOLDING: Creditors' Proofs of Debt Due May 15 KAZIMIR RUSSIA: Commences Liquidation Proceedings L&M INDEMNITY: Commences Liquidation Proceedings MFA 90: Placed Under Voluntary Wind-Up POLARCUS 2: Commences Liquidation Proceedings POLARCUS 6: Commences Liquidation Proceedings SAN VALLEY: Creditors' Proofs of Debt Due May 22 SMART PRINT: Creditors' Proofs of Debt Due May 11 E L S A L V A D O R BANCO AGRICOLA: S&P Affirms 'B-' Issuer Credit Ratings M E X I C O CREDIVALORES: S&P Withdraws 'B' Rating on $100MM Sr. Unsec. Notes GRUPO POSADAS: S&P Affirms 'B+' CCR; Outlook Remains Stable MEXICO: Domestic Problems Threaten to Undermine NAFTA Talks METALSA SA: S&P Affirms 'BB+' CCR; Outlook Remains Stable P A R A G U A Y BBVA PARAGUAY: S&P Affirms Then Withdraws 'BB-' ICRs P U E R T O R I C O CONDADO RESTAURANT: Disclosure Statement Hearing Moved to June 21 DORADO COMMUNITY: Hires Fuertes & Fuertes as Counsel INMOBILIARIA HMMA: Hires Cintron Law Offices as Counsel LEGAL CREDIT: Hires Carrasquillo as Financial Consultant LUAR CLEANERS: Taps Jacqueline Santiago as Legal Counsel LUCY LOPEZ ROIG: Plan Confirmation Hearing on June 7 PUERTO RICO: Judge Laura Taylor Swain to Preside Over Bankr. Case PUERTO RICO: Bond Default Called Over Fiscal Plan's Debt Cuts T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Committee Questions Execs on Free Trips - - - - - =========== B R A Z I L =========== BRAZIL: Plans Changes to Bankruptcy Law to Bolster Recovery ----------------------------------------------------------- Bruno Federowski at Reuters, citing Finance Minister Henrique Meirelles' statement, reports that the Brazilian government plans to change the bankruptcy law to help indebted firms emerge faster from creditor protection. The changes would reduce the average length of bankruptcy protection to two years, compared to between seven and eight years currently, Mr. Meirelles said in an interview published in the O Estado de S. Paulo newspaper, according to Reuters. Bankers and lawyers expect bankruptcies to set a record in 2017, with tight credit and the lingering recession forcing a growing number of large Brazilian companies to seek protection from creditors, the report notes. The bill, which will be submitted to Congress in June, would make it easier for companies under creditor protection to maintain operations and borrow funds, according to the newspaper article, Reuters relays. It would also grant creditors stronger power in the discussions, Mr. Meirelles added, without providing further details, Reuters notes. Reuters relays that this development is the latest in a wide series of microeconomic reforms proposed by President Michel Temer's administration to lift Latin America's largest economy from its deepest recession in decades and secure steady growth from then on. Together with ongoing plans to streamline the social security system, reform labor laws and other efforts, those changes would allow Brazil's gross domestic product (GDP) to expand at a 3.5 percent to 4 percent annual pace without accelerating inflation, Mr. Meirelles said, the report says. Currently, Mr. Meirelles said, so-called potential growth stands at between 2 percent and 2.25 percent, Reuters notes. Major firms, such as wireless carrier Oi SA and homebuilder PDG Realty SA, have been ensnared in thorny debt renegotiation talks after filing for protection from creditors as years of robust economic growth faded away, the report adds. As reported in the Troubled Company Reporter-Latin America on March 17, 2017, Moody's Investors Service has changed the outlook on Brazil's rating to stable from negative and affirmed its issuer rating, senior unsecured at Ba2 and shelf ratings at (P) Ba2. BRAZIL: Plans Law to Intervene in Troubled Telecoms, Anatel Says ---------------------------------------------------------------- Leonardo Goy at Reuters reports that the Brazilian government will introduce legislation granting it the power to intervene in telecom operators under bankruptcy protection, telecoms regulator Anatel President Juarez Quadros said. Mr. Quadros said the decision was meant to avoid any judicial questioning of future interventions, but did not say when the government planned to submit the legislation, according to Reuters. Since March, the government has promised to enact a decree to allow authorities to intervene in debt-laden OI SA, Reuters notes. The phone carrier sought court protection from creditors last June on about BRL65 billion (US$21 billion) in Brazil's biggest-ever bankruptcy filing, the report relays. The legislation would allow for government intervention in telecoms for over a year that could be extended for another year, Mr. Quadros said, the report discloses. The government is also preparing a decree to facilitate the recovery of state credit granted to financially weak operators, Mr. Quadros said, the report notes. The decree would allow carriers to substitute fines for new investment and pay fines in installments, the report adds. As reported in the Troubled Company Reporter-Latin America on March 17, 2017, Moody's Investors Service has changed the outlook on Brazil's rating to stable from negative and affirmed its issuer rating, senior unsecured at Ba2 and shelf ratings at (P) Ba2. OI SA: Orascom Gives Firm Until June 1 for Reorganization Plan -------------------------------------------------------------- Alberto Alerig at Reuters reports that Brazilian phone company Oi SA said Orascom TMT Holdings SAE, controlled by Egyptian billionaire Naguib Sawiris, and a group of bondholder have given the carrier until June 1 to put together a restructuring plan to help it exit bankruptcy protection. This is the fourth extension granted to Oi by Orascom, which offered in December an exchange of debt for shares and a capital injection of as much as $1.25 billion in the phone company, according to Reuters. Oi SA filed for bankruptcy protection in June last year under the burden of debts totaling BRL65 billion (US$20.6 billion), the report notes. Reuters relays that the reorganization process has been marked by disputes between creditors and shareholders over the fate of Brazil's No. 4 wireless carrier. The Brazilian government has threatened to intervene should Oi stakeholders fail to reach an agreement, the report says. The reorganization plan was due in late April but the ad hoc group of bondholders allied to Mr. Sawiris said it was revising the plan, the report relays. "A number of recent developments have led to the need to revise the plan presented by our group," said Otavio Guazzelli, of Moelis & Company, financial advisor to the group, the report notes. One development has been a government plan to allow telecom operators to exchange debt with the state for investments in the public sector, Reuters relays. According to regulator Anatel, Oi owes the government close to BRL15 billion in fines, the report adds. About Oi SA Headquartered in Rio de Janeiro, and operating almost exclusively within Brazil, the Oi Group provides services like fixed-line data transmission and network usage for phones, internet, and cable, Wi-Fi hot-spots in public areas, and mobile phone and data services, and employs approximately 142,000 direct and indirect employees. Ojas N. Shah filed a Chapter 15 petition for Oi S.A. (Bankr. S.D.N.Y. Case No. 16-11791), Oi Movel S.A. (Bankr. S.D.N.Y. Case No. 16-11792), Telemar Norte Leste S.A. (Bankr. S.D.N.Y. Case No. 16-11793), and Oi Brasil Holdings Cooperatief U.A. (Bankr. S.D.N.Y. Case No. 16-11794) on June 21, 2016. The case is assigned to Judge Sean H. Lane. The Chapter 15 Petitioner is represented by John K. Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP, in New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida. As reported in the Troubled Company Reporter-Latin America on Feb. 24, 2017, S&P Global Ratings affirmed its 'D' corporate credit and issue-level global and national scale ratings on Oi S.A. At the same time, S&P withdrew the recovery ratings on the company's rated debt, until it has an updated capital structure once Oi emerges from judicial reorganization. ========================== C A Y M A N I S L A N D S ========================== CMEH CORP: Creditors' Proofs of Debt Due May 22 ----------------------------------------------- The creditors of CMEH Corp. are required to file their proofs of debt by May 22, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 12, 2017. CONAIR INTERNATIONAL: Creditors' Proofs of Debt Due May 22 ---------------------------------------------------------- The creditors of Conair International Holdings are required to file their proofs of debt by May 22, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 12, 2017. JVK HOLDING: Creditors' Proofs of Debt Due May 15 ------------------------------------------------- The creditors of JVK Holding Ltd. are required to file their proofs of debt by May 15, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 7, 2017. The company's liquidator is: Westport Services Ltd. c/o Avril G. Brophy P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 KAZIMIR RUSSIA: Commences Liquidation Proceedings ------------------------------------------------- The sole shareholder of Kazimir Russia Offshore Fund Ltd., on April 12, 2017, passed a resolution to 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: Frances Holliday c/o Jasmine Amaria Walkers 6 Gracechurch Street London EC3V 0AT United Kingdom Telephone: +44 207 220 4970 L&M INDEMNITY: Commences Liquidation Proceedings ------------------------------------------------ The sole shareholder of L&M Indemnity Company, Ltd., on April 3, 2017, passed a resolution to 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: Graham Robinson c/o Tanya Armstrong P.O. Box 2499, Grand Cayman KYl-1104 Cayman Islands Telephone: (345) 946-0820 Facsimile: (345) 946-0864 MFA 90: Placed Under Voluntary Wind-Up -------------------------------------- The shareholder of MFA 90 Company Limited, on April 3, 2017, passed resolution to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 POLARCUS 2: Commences Liquidation Proceedings --------------------------------------------- The sole shareholder of Polarcus 2 Ltd., on April 11, 2017, passed a resolution to 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 POLARCUS 6: Commences Liquidation Proceedings --------------------------------------------- The sole shareholder of Polarcus 2 Ltd., on April 11, 2017, passed a resolution to 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 SAN VALLEY: Creditors' Proofs of Debt Due May 22 ------------------------------------------------ The creditors of San Valley Biotechnology, Inc. are required to file their proofs of debt by May 22, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 10, 2017. The company's liquidator is: Maricorp Services Ltd. c/o Roger L. Nelson #31 The Strand, 46 Canal Point Drive P.O. Box 2075, Grand Cayman KY1-1105 Cayman Islands Telephone: (345) 949-9710 SMART PRINT: Creditors' Proofs of Debt Due May 11 ------------------------------------------------- The creditors of Smart Print Ltd. are required to file their proofs of debt by May 11, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 14, 2017. 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 ==================== E L S A L V A D O R ==================== BANCO AGRICOLA: S&P Affirms 'B-' Issuer Credit Ratings ------------------------------------------------------ S&P Global Ratings affirmed its 'B-' long- and 'B' short-term issuer credit ratings on Banco Agricola S.A. The bank's stand- alone credit profile (SACP) remains at 'bb-'. S&P revised its BICRA score on El Salvador (CC/Negative/C) to group '9' from '8' as a result of S&P's revision of the economic risk score to '10' from '9'. The latter reflects the increasing economic imbalances stemming from the weakening external debt position. On the other hand, S&P kept its '7' industry risk score unchanged. The anchor for banks operating in the country remains at 'b+' despite the BICRA group and economic risk score revisions. The weaker economic risk score on El Salvador reflects the potentially costlier external financing--as a result of the missed CIPs payments. This could spill over to the Salvadorian banking system, hurting its external debt position, underscoring the system's significant vulnerability. In S&P's view, El Salvador's low GDP growth prospects, likely to be around 1.3% for 2017-2020, limited fiscal flexibility, due to political polarization that continues to hamper the government's debt management, and absence of monetary flexibility, stemming from the 2001 switch to dollars, exacerbate the sovereign's economic risk. In S&P's opinion, the country's economic growth remains vulnerable to changes in the U.S. commercial and immigration policies because 48.4% of El Salvador's exports are destined for the U.S. and remittances from the latter represented 16% of the Central American country's GDP in 2015. On the other hand, lower foreign direct investment (FDI), coupled with high fiscal deficits, could increase risks to the domestic banking system in terms of economic imbalances. In this sense, S&P believes that Salvadorian banks' resilience to adverse economic developments will still be under pressure. At the same time, S&P revised the trend on our economic risk to stable from negative given that El Salvador's BICRA economic risk score currently stands at the highest level and can't deteriorate further. S&P observes higher industry risks in El Salvador's banking system because political polarization keeps weakening the government's ability to gain access to liquidity. S&P believes that the sovereign credit stress has worsened, as seen in Congress' failure on April 7, 2017, to allocate funds to cover the pension obligations. In S&P's opinion, this undermines investor confidence and represents a disadvantage for Salvadorian banks. Therefore, S&P views system-wide funding in El Salvador as extremely high risk. Risk appetite in the Salvadorian banking system is currently moderate, reflected in modest share of high- risk lending and manageable growth of total assets. In addition, competitive dynamics benefit from a relatively concentrated banking system that contributes to industry stability. The large presence of foreign-owned banks in the system, whose parent companies are mostly following international standards, would enable their Salvadorian subsidiaries to adopt Basel III standards smoothly, once the country implements these rules. The trend on industry risk remains negative. If the industry risks materializes, S&P could revise the industry risk score to a weaker category. Such action could result in a revision of S&P's BICRA group to the weakest category (group '10'), which could cause the anchor to drop to 'b' from the current 'b+'. Despite the changes in BICRA, S&P is affirming its 'B-/B' issuer credit ratings on Banco Agricola, because S&P don't believe it's currently vulnerable or dependent upon favorable business, financial, and economic conditions to meet its financial commitments during the next 12 months. The bank's SACP remains unchanged, given that no changes to the anchor for banks operating in the country occurred, Banco Agricola's risk-adjusted capitalization ratio (RAC) remains in the moderate category. The latter factor is despite higher charges related to greater economic risk, riskier BICRA group, and sovereign's rating. S&P's issuer credit ratings on Banco Agricola still reflect its strong business position--based on its leading position in El Salvador's banking industry--adequate risk position, due to its stable asset quality metrics, and average funding with adequate liquidity as a result of a stable and fragmented deposit base. The bank's capital and earnings remains moderate based on a projected RAC ratio at around 5.7% for the next 12 months. Banco Agricola is a core subsidiary of Bancolombia, S. A. y Companias Subordinadas (BBB-/Negative/A-3). =========== M E X I C O =========== CREDIVALORES: S&P Withdraws 'B' Rating on $100MM Sr. Unsec. Notes ----------------------------------------------------------------- S&P Global Ratings withdrew its 'B' issue - level rating on Credivalores - Crediservicios SAS' (Credivalores; B+/Stable/B) senior unsecured notes for up to $100 million. The withdrawal is the result of the issuer's decision for not issuing the notes. RATINGS LIST To From Credivalores - Crediservicios SAS Senior Unsecured NR B GRUPO POSADAS: S&P Affirms 'B+' CCR; Outlook Remains Stable ----------------------------------------------------------- S&P Global Ratings affirmed its 'B+' corporate credit and issue- level ratings on Grupo Posadas S.A.B. de C.V. The recovery rating on the notes remains at '3', indicating S&P's expectation of a meaningful (50%-70%) recovery in the higher end of the range, for unsecured lenders in a hypothetical event of a payment default. The outlook on the corporate credit rating remains stable. The rating affirmation follows S&P's view that the terms and conditions of the settlement that the company reached with the tax authority won't compromise Posadas' liquidity position, expansion plans, or credit indicators. S&P don't believe this settlement will affect the company's cash flow generation prospects, because Posadas will net part of the effect of this liability by reducing future current taxes through the amortization of tax-loss carry- forwards. As a result, S&P continues to expect Posadas to fund its operations and expansion plans with internal cash flow generation, without requiring incremental debt. This factor, coupled with a solid operating performance, should keep the company's credit metrics in line with S&P's current financial risk profile assessment and overall rating. The settlement with the tax authority consisted of these factors: -- Posadas acknowledged its obligation to pay MXN2.4 billion related to taxes and accrued interests to date. Of the total amount, Posadas has made a MXN610 million payment in April 2017, and is expected to pay the remaining portion in annual installments of about MXN307 million (increasing in line with inflation) in 2018-2023. A one-time fiscal loss to be registered in 2017 of MXN930 million as a result of the increase in long-term liabilities related to taxes payable. -- Ratify Posadas right to amortize pending fiscal losses accumulated as of 2013, for an estimated amount of MXN7.7 billion. At this point, Posadas and the fiscal authorities are in talks to resolve their differences over the application of fiscal criteria in 2006. S&P will continue to monitor the resolution process, as well as any potential effect on the company's credit quality and liquidity. MEXICO: Domestic Problems Threaten to Undermine NAFTA Talks ----------------------------------------------------------- Jude Webber at The Financial Times relays that when President Enrique Pena Nieto called Donald Trump and persuaded him not to scrap the North American Free Trade Agreement (NAFTA) on his 100th day in office, it was a reminder that Mexico has not lost its touch in managing international crises. The Financial Times points out that Mexico now faces potentially the trickiest crisis yet, the NAFTA renegotiation -- an issue that is political dynamite in the US and affects Mexico's business model as a country. Mexico's government can draw comfort from the fact that its turbulent economic history has schooled a core cadre of officials with Ivy League pedigrees and expertise in dealing with the US, Reuters cites. Luis Videgaray, fired as finance minister after organising a disastrous visit by Mr. Trump to Mexico City last August, was named foreign minister in January to lead the NAFTA charge, the report notes. He has been seeking advice from Mexico's top US experts and his strategy of forging ties with Jared Kushner, Mr. Trump's son-in-law, appears to be paying off, the report relays. However, while the country has handled international crises well, domestic problems are another issue, Reuters cites. Mr. Pena Nieto faces multiplying problems just as his home State of Mexico -- a traditional stronghold for the ruling Institutional Revolutionary party -- goes to the polls in gubernatorial elections on June 4, Reuters notes. A poor showing for the PRI candidate, who is also the president's cousin, could spell doom for the once mighty party next year, the report says. Moreover, Reuters cites, the Mexican government appears unable to tame a spike in violence, including a 30 per cent rise in homicides and extortion and a 20 per cent increase in kidnappings in the first quarter against the same period last year. The discovery of huge mass graves and the still unresolved disappearance of 43 students at the hands of corrupt local police and a drugs gang have sickened Mexicans, the report discloses. Corruption scandals involving former PRI governors have deepened public disgust, as has the saga of a mansion for Mr. Pena Nieto's wife paid for by a government contractor, report adds. The series of crises has fuelled the return of Andres Manuel Lopez Obrador, a maverick leftist politician who almost won the presidency in 2006 and is increasingly looking like the man to beat in 2018, according to Reuters. Mr. Pena Nieto, in the meantime, appears keen to wrap the NAFTA talks swiftly, as is the Trump administration, Reuters says. But if the timetable should slip, Mr. Lopez Obrador has made clear his own desire to weigh in on the renegotiation, the report discloses. That might mark the moment when Mexico's sorry history of dealing with problems at home undermines its accomplished record of handling international crises, Reuters points out. METALSA SA: S&P Affirms 'BB+' CCR; Outlook Remains Stable --------------------------------------------------------- S&P Global Ratings said that it affirmed its 'BB+' long-term corporate credit rating on Metalsa S.A. de C.V. S&P also affirmed its 'BB+' long-term issue-level rating on the company's $300 million senior unsecured notes due in 2023 with a recovery rating of '3', indicating S&P's expectation of meaningful (50%- 90%; rounded estimate: 90%) recovery in the event of a payment default. The outlook on the corporate credit rating remains stable. The affirmation reflects S&P's expectation that Metalsa will maintain good performance in the next two years, posting key credit metrics with debt-to-EBITDA ratio below 2x and FFO to debt above 40% due to continued operating efficiencies, consistent debt levels, and already-booked business that comprises existing platforms and recently awarded new and expanded platforms. In S&P's view, the new awarded platforms reflect the commitment and confidence OEMs have in Metalsa, as well as in the NAFTA region industry fundamentals (particularly in light vehicles) amid uncertainty with the potential renegotiation of the trade agreement and U.S. import tariffs from Mexico. S&P believes that Metalsa will not be affected in the short term by a trade policy change between Mexico and the U.S. given its healthy financial metrics, comfortable debt maturity profile, strong liquidity, and leading market position. The stable outlook reflects S&P's expectation that Metalsa will post a debt-to-EBITDA ratio below 2x and FFO to debt above 40% in the next two years, thanks to still stable industry fundamentals in North America, already-booked platforms, and recently awarded and renewals of platforms. It also reflects Metalsa's leading market position, long-term relationships with OEMs, prudent financial policy, and continued operating efficiencies to underpin margins. Furthermore, the outlook also reflects S&P's belief that the company's business and performance is not likely to be affected in the short to medium term by potential NAFTA renegotiation or other trade policy changes with the U.S. S&P could lower its rating if global vehicle demand weakens while Metalsa can't maintain its operating margins, resulting on a debt- to-EBITDA ratio above 3x and/or FOCF to debt below 25%, unless temporarily driven by a down cycle and with a clear path to recovery. This could occur from additional capex requirements and a deterioration of margins. While unlikely over the coming two years, S&P could upgrade Metalsa if its geographic, client, and product diversification significantly improves with, for instance, less than 50% of revenues from its top three customers while it maintains key financial metrics consistent with our expectations of debt to EBITDA below 1.5x and FOCF to debt above 25%. =============== P A R A G U A Y =============== BBVA PARAGUAY: S&P Affirms Then Withdraws 'BB-' ICRs ---------------------------------------------------- S&P Global Ratings affirmed its 'BB-' long- and 'B' short-term issuer credit ratings on Banco Bilbao Vizcaya Argentaria Paraguay S.A. (BBVA Paraguay). S&P subsequently withdrew the ratings at the issuer's request. The outlook was stable at the time of the withdrawal. At the time of withdrawal, the ratings on BBVA Paraguay reflected its good competitive position in the Paraguayan system, with a focus on lending to the agribusiness sector, a forecasted risk- adjusted capital of about 4.8% in the next 12-18 months, manageable asset quality metrics and the expectation they will improve in the next few quarters, stable funding structure that benefits from a healthy deposit base, and its liquidity position that provides adequate cushion to cover short-term maturities. The 'BB-' long-term issuer credit rating on BBVA Paraguay incorporated one notch of group support. S&P believes that the bank is a moderately strategic subsidiary for its Spain-based parent, Banco Bilbao Vizcaya Argentaria S.A. (BBB+/Positive/A-2), which owns 99.99% of the bank's equity. S&P's stable rating outlook at the time of withdrawal incorporated its expectation that in the next 12 months BBVA Paraguay will gradually improve its asset quality metrics. The outlook also incorporated S&P's expectation of the group's continued support to the bank. ====================== P U E R T O R I C O ====================== CONDADO RESTAURANT: Disclosure Statement Hearing Moved to June 21 ----------------------------------------------------------------- The U.S. Bankruptcy Court in Puerto Rico moved the hearing on the disclosure statement of Condado Restaurant Group Inc. and Restaurant Associates of Puerto Rico, Inc., to June 21, at 2:00 p.m. The hearing will take place at Jose V. Toledo Federal Building and U.S. Courthouse, Courtroom No. 1, Second Floor, 300 Recinto, Sur, Old San Juan, Puerto Rico. The companies' Chapter 11 plan of reorganization proposes to pay general unsecured creditors 75% of their allowed claims over 72 months. About Condado Restaurant Condado Restaurant Group, Inc., and Restaurant Associates of Puerto Rico filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case Nos. 16-01329 and 16-01330) on Feb. 24, 2016. The petitions were signed by Dayn Smith, president. The Debtors' cases were consolidated on May 12, 2016, in lead Case No. 16- 01329. The Debtors are represented by Javier A. Vega Villalba, Esq., at Weinstein Bacal & Miller, PSC. The Debtor hired Acosta & Ramirez as financial consultant. Condado Restaurant Group, Inc., estimated assets and liabilities at between $1 million and $10 million. Restaurant Associates of Puerto Rico, Inc., estimated assets at $100,000 to $500,000 and liabilities at $1 million to $10 million. DORADO COMMUNITY: Hires Fuertes & Fuertes as Counsel ---------------------------------------------------- Dorado Community Health, Inc., seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Fuertes & Fuertes Law Office, as counsel to the Debtor. Dorado Community requires Fuertes & Fuertes to: a. give the Debtor legal advice with respect to its powers and duties as debtor in possession in the continued operation of its business and management of its property; b. prepare on behalf of the Debtor as debtor in possession necessary applications, answers, orders, reports and other legal papers; and c. perform all other legal services for the Debtor as debtor in possession which may be necessary, and it is necessary for the Debtor to employ an attorney for professional services; Fuertes & Fuertes will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Alberto R. Fuertes Masarovic, member of Fuertes & Fuertes Law Office, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Fuertes & Fuertes can be reached at: Alberto R. Fuertes Masarovic, Esq. FUERTES & FUERTES LAW OFFICE PO Box 194000 San Juan, PR 00919-4000 Tel: (787) 296-000 About Dorado Community Health, Inc. Dorado Community Health Inc., filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 17-01565) on March 7, 2017, disclosing under $1 million in both assets and liabilities. The Debtor is represented by Jaime Rodriguez Perez, Esq. at Hatillo Law Office. The Debtor hired Fuertes & Fuertes Law Office, as counsel; and Julio Borges-Alvarado, as accountant. INMOBILIARIA HMMA: Hires Cintron Law Offices as Counsel ------------------------------------------------------- Inmobiliaria HMMA Inc., seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ the Law Offices of Jose R. Cintron, as counsel to the Debtor. Inmobiliaria HMMA requires Cintron to: a. prepare all Court documents; b. appear at the 341 meeting of creditors and other Court hearings; c. provide accounting, tax and financial analyses; d. prepare a Plan and Disclosure Statement; e. prepare and litigate adversary proceedings, and objections to claims. Cintron will be paid at the hourly rate $150. Cintron will be paid a retainer in the amount of $5,000. Cintron will also be reimbursed for reasonable out-of-pocket expenses incurred. Jose R. Cintron, member of the Law Offices of Jose R. Cintron, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Cintron can be reached at: Jose R. Cintron, Esq. LAW OFFICES OF JOSE R. CINTRON Calle Condado 605, Suite 602 Santurce, PR 00907 Tel: (787) 725-4027 Fax: (787) 725-1709 About Inmobiliaria HMMA Inc. Inmobiliaria HMMA Inc., based in Bayamon, Puerto Rico, filed a Chapter 11 petition (Bankr. D.P.R. Case No. 17-03150) on May 3, 2017. The Hon. Enrique S. Lamoutte Inclan presides over the case. Jose R. Cintron, Esq., at the Law Offices of Jose R. Cintron, serves as bankruptcy counsel. In its petition, the Debtor estimated $340,000 in assets and $1.73 million in liabilities. The petition was signed by Manuel Henriquez Moreno, president. LEGAL CREDIT: Hires Carrasquillo as Financial Consultant -------------------------------------------------------- Legal Credit Solutions, Inc., seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ CPA Luis R. Carrasquillo & Co., P.S.C., as financial consultant to the Debtor. On March 23, 2017, the Bankruptcy Court granted the withdrawal of the Debtor's former financial consultant. Legal Credit requires Carrasquillo to: a. assist in obtaining the necessary data for the preparation of the Chapter 11 bankruptcy proceedings; b. assist in obtaining the necessary financial information to complete the Chapter 11 Schedules and Statement of Financial Affairs; c. assist in the preparation of all financial data to be presented to the U.S. Trustee Office within the first 15 days after the filing. d. prepare the financial projections and cash flows statements together with Accountant's Compilation Report therein; e. prepare the Liquidation Analysis for the Bankruptcy Court along with its related Notes and Accountants Report; f. assist the Debtor's counsel in the preparation of the Plan of Reorganization, Disclosure Statement, and all the related documents for the Bankruptcy Court; g. assist the Debtor's counsel in the efforts to restructure bank debts, obtain new financing sources, and any Debtor- in-Possession or post-petition financing; h. assist the Debtor's counsel in any litigation that may arise during the course of the reorganization that may require financial and accounting testimony and litigation support; and i. provide special work as accountant and administrator of the estates. Carrasquillo will be paid at these hourly rates: Partner $175 Senior CPA $80-$125 Staff $45 Carrasquillo will also be reimbursed for reasonable out-of-pocket expenses incurred. Luis R. Carrasquillo, partner of CPA Luis R. Carrasquillo & Co., P.S.C., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Carrasquillo can be reached at: Luis R. Carrasquillo CPA LUIS R. CARRASQUILLO & CO., P.S.C. 28th Street, TI-26, Turabo Gardens Avenue Caguas, PR 00725 Tel: (787) 746-4555 Fax: (787) 746-4564 About Legal Credit Solutions, Inc. Headquartered in Guaynabo, Puerto Rico, Legal Credit Solutions, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 16-03685) on May 6, 2016, estimating its assets at up to $50,000 and its liabilities at between $1 million and $10 million. The petition was signed by Mrs. Yahairie Tapia, president. Judge Brian K. Tester presides over the case. Paul James Hammer, Esq., at Estrella, LLC, serves as the Debtor's bankruptcy counsel. LUAR CLEANERS: Taps Jacqueline Santiago as Legal Counsel -------------------------------------------------------- Luar Cleaners Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to hire the law office of Jacqueline Hernandez Santiago, Esq., to, among other things, give legal advice regarding its duties under the Bankruptcy Code, negotiate with creditors, and assist in the preparation of a bankruptcy plan. The proposed fee arrangement is an agreed hourly rate of $250 for the attorney, and a retainer of $1,000, plus $1,717 for the filing fee. Ms. Santiago disclosed in a court filing that she and all employees of her firm are "disinterested persons" as defined in section 101(14) of the Bankruptcy Code. Ms. Santiago maintains an office at: Jacqueline Hernandez Santiago, Esq. Calle Mayagez 22, Interior Hato Rey, PR 00917 Phone: (787) 766-0570 Email: quiebras1@gmail.com About Luar Cleaners Inc. Luar Cleaners Inc. owns dry-cleaning plants in Guaynabo, Puerto Rico. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 17-02840) on April 25, 2017. The petition was signed by Paul Palacios Velez, president. The case is assigned to Judge Brian K. Tester. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. The Debtor previously filed Chapter 11 petitions (Bankr. D.P.R. Case No. 12-09294) and (Bankr. D.P.R. Case No. 14-04974). The cases were filed on Nov. 25, 2012, and on June 18, 2014. Judge Brian K. Tester, who handled the 2014 case, dismissed it on June 29, 2016. LUCY LOPEZ ROIG: Plan Confirmation Hearing on June 7 ---------------------------------------------------- The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico has conditionally approved Lucy Lopez Roig E.A.P., Inc.'s disclosure statement dated April 25, 2017, referring to the Debtor's plan of reorganization. A hearing to consider final approval of the Disclosure Statement and confirmation of the Plan has been set for June 7, 2017, at 9:00 a.m. Objections to the final approval of the Disclosure Statement and confirmation of the Plan must be filed on or before 14 days prior to the plan confirmation hearing. Acceptances or rejections of the Plan must be filed on or before 14 days prior to the plan confirmation hearing. About Lucy Lopez Roig Lucy Lopez Roig E.A.P., Inc., San Juan, P.R., filed a Chapter 11 petition (Bankr. D.P.R. Case No. 16-09790) on Dec. 16, 2016. The Hon. Mildred Caban Flores presides over the case. Carmen D. Conde Torres, Esq., serves as bankruptcy counsel. In its petition, the Debtor indicated $82,830 in total assets and $1.17 million in total liabilities. The petition was signed by Marion A. Wennerholm, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb16-09790.pdf PUERTO RICO: Judge Laura Taylor Swain to Preside Over Bankr. Case ----------------------------------------------------------------- Bankruptcy Law360 reports that U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over Puerto Rico's bankruptcy case. Experts say Judge Swain's judicious temperament and legal acumen make her suited for the task, Law360 relates. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is posted at http://bankrupt.com/misc/17-01578-00001.pdf The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at: https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. PUERTO RICO: Bond Default Called Over Fiscal Plan's Debt Cuts ------------------------------------------------------------- Andrew Scurria, writing for The Wall Street Journal Pro Bankruptcy, reported that Puerto Rico's entry into court protection is exacerbating tensions between Wall Street firms holding sales-tax bonds that the territory's federal overseers want impaired. According to the report, Bank of New York Mellon Corp., the trustee for $17 billion in sales-tax bonds known as Cofinas, notified Puerto Rico in a letter that it believes events of default have occurred. The alleged defaults stem from the controversial fiscal plan that Puerto Rico's oversight board adopted as its framework for restructuring a $73 billion mountain of public debt, the report related. Governor Ricardo Rossello signed a local law to comply with the fiscal plan that allows him under certain circumstances to break the lockbox securing the sales tax revenues and move them into Puerto Rico's grasp, the report further related. "As a result of these limitations and restrictions on Cofina's rights and ability to meet its obligations to bondholders, the commonwealth's enactment of the fiscal plan compliance law constitutes a default," BNY Mellon said in the letter, the report added. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is posted at: http://bankrupt.com/misc/17-01578-00001.pdf The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP and Hermann D. Bauer, Esq., At O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at: https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is serving as counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN AIRLINES: Committee Questions Execs on Free Trips ----------------------------------------------------------- RJR News reports that members of a parliamentary committee in Trinidad & Tobago have asked executives of Caribbean Airlines (CAL) to explain why a pilot employed to the entity made 100 free trips in one year on personal business. The issue was raised earlier by the Joint Select Committee on State Enterprises when members of Caribbean Airline's executive appeared before the committee, according to RJR News. Senator David Small, chairman of the committee, described the frequent trips as an abuse of privilege, the report relays. The report notes that Hyacinth Guy, Caribbean Airlines Vice- President for Human Resources, told the committee that all employees are entitled to 20 trips per year. The report relays that Ms. Guy said an analysis showed that, on average, employees use between six and eight flights adding that the use of the jump-seat was industry practice and her department would not have had sight of the frequency of flights used by the particular pilot. She told the committee that, in some cases, members of staff work in Trinidad but live elsewhere and could be utilizing the privilege so it might not necessarily be an abuse of the system, the report notes. In response, Mr. Small said the Joint Select Committee will have some clear recommendations for the airline although the number of flights taken by the employee may not have impacted on the revenue of the airline, the report discloses. Caribbean Airlines chairman Shameer Mohammed, who was also present at the sitting of the committee, said he too was concerned about the frequency with which some employees used the carrier, the report adds. About Caribbean Airlines Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on November 2, 2015, RJR News said that Michael DiLollo, Chief Executive Officer of Caribbean Airlines Limited has quit after just 17 months on the job. The 48-year-old Canadian national, citing personal reasons, resigned with immediate effect. His resignation was accepted by the airline's board of directors. Mr. DiLollo was appointed Caribbean Airlines CEO in May 2014, following the sudden resignation of Robert Corbie in September 2013. In early February 2015, Larry Howai, then Finance Minister, told Parliament that unaudited accounts for 2014 showed the airline made a loss of US$60 million, inclusive of its Air Jamaica operations, and the airline planned to break even by 2017. Mr. Howai told the Parliament that a five-year strategic plan had been completed and was in the process of being approved for implementation. In an interview with the Trinidad & Tobago Guardian in early November 2015, Mr. DiLollo said CAL did not need a bailout just yet. Mr. DiLollo said the airline had benefited from extremely patient shareholders for years and he believed the airline was strategically positioned to break even in three years. *********** 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, 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 Joseph Cardillo at 856-381-8268. * * * End of Transmission * * *