/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170516.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 Tuesday, May 16, 2017, Vol. 18, No. 95 Headlines B R A Z I L BRAZIL: Auto Production Declines C A Y M A N I S L A N D S ADI SPV: Shareholders' Final Meeting Set for May 18 ALKEON GLOBAL: Shareholders' Final Meeting Set for June 8 EKRON INTERNATIONAL: Shareholders' Final Meeting Set for May 22 LARRAIN VIAL: Shareholders' Final Meeting Set for May 18 LBC BRIGHTS: Shareholders' Final Meeting Set for May 18 RAMIUS MERGER: Shareholders' Final Meeting Set for May 15 RED RIVER: Shareholders' Final Meeting Set for May 18 SWISS CAPITAL: Shareholders' Final Meeting Set for May 31 TIDE POOL: Shareholders' Final Meeting Set for May 25 WILLIE RESOURCES: Shareholder to Hear Wind-Up Report on May 26 M E X I C O MBIA MEXICO: S&P Affirms 'CCC' Counterparty Credit Ratings P U E R T O R I C O PUERTO RICO: Cede & Co Added to List of Top Unsecured Creditors PUERTO RICO: COFINA Files Petition; Joint Administration Sought PUERTO RICO: COFINA's Case Summary & List of Creditors PUERTO RICO: Proposes Prime Clerk as Claims Agent PUERTO RICO: Retirees Ask for Own Official Committee S T. K I T T S & N E V I S * ST. KITTS & NEVIS: Economy to Grow Again in 2017, IMF Says T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Unemployment Rate Down to 4% in 3rdQ TRINIDAD & TOBAGO: Chair Warns Gov't. on Informal Forex Controls V E N E Z U E L A VENEZUELA: Maduro Replaces Top Health Official After Data Released - - - - - =========== B R A Z I L =========== BRAZIL: Auto Production Declines -------------------------------- EFE News reports that motor vehicle production in Brazil fell 18.8 percent last month compared with March, the Anfavea trade association said. At the same time, the 191,069 vehicles that rolled off assembly lines last month represented a gain of 11.4 percent from the level of output in April 2016, according to EFE News. Brazilian automakers produced a total of 801,600 units in the first four months of this year, up 20.9 percent over the same period in 2016, the report notes. The report says that vehicle exports advanced 64.2 percent in January-April from the same period last year, to 232,192 units, the report relays. Brazil's auto industry -- No. 6 in the world -- has suffered from the economic crisis that saw gross domestic product decline for two successive years for the first time since the 1950s, the report relays. Firms in the sector have resorted to early retirement, layoffs, and furloughs to bring the size of the workforce into life with sharply reduced demand for new cars and trucks, the report notes. Nearly 11,000 Brazilian autoworkers were affected by reductions in hours last month, according to Anfavea, the report discloses. Sales of new vehicles in Brazil totaled 156,894 units last month, a drop of 3.7 percent month compared with April 2016, the dealers association said, 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. ========================== C A Y M A N I S L A N D S ========================== ADI SPV: Shareholders' Final Meeting Set for May 18 --------------------------------------------------- The shareholders of ADI SPV Fund (Offshore) Ltd. will hold their final meeting on May 18, 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: ADI Capital Management LLC Paritosh Gupta 295 Madison Avenue, 36th Floor New York New York 10017 United States of America Telephone: +1 (212) 7630 ALKEON GLOBAL: Shareholders' Final Meeting Set for June 8 --------------------------------------------------------- The shareholders of Alkeon Global Alpha Master Fund L.P. will hold their final meeting on June 8, 2017, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Nicola Cowan dms House, 20 Genesis Close P.O. Box 1344 George Town KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 EKRON INTERNATIONAL: Shareholders' Final Meeting Set for May 22 --------------------------------------------------------------- The shareholders of Ekron International Ltd. will hold their final meeting on May 22 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: Lily Lee Campbells Directors Limited Willow House, Floor 4, Cricket Square Grand Cayman KY1-9010 Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 LARRAIN VIAL: Shareholders' Final Meeting Set for May 18 -------------------------------------------------------- The shareholders of Larrain Vial Investment Management Ltd will hold their final meeting on May 18, 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: Larrain Vial Investment Inc Av. El Bosque 0117, 4th Floor Las Condes Santiago Chile Telephone: +55 9 23398500 e-mail: alarrain@larrainvial.com LBC BRIGHTS: Shareholders' Final Meeting Set for May 18 ------------------------------------------------------- The shareholders of LBC Brights Creek, Ltd. will hold their final meeting on May 18, 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: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 RAMIUS MERGER: Shareholders' Final Meeting Set for May 15 --------------------------------------------------------- The shareholders of Ramius Merger Arbitrage Master Fund Ltd will hold their final meeting on May 15, 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: Ramius LLC c/o Michael Benwitt 599 Lexington Avenue, 19th Floor New York NY 10022 USA Telephone: (212) 823 0226 e-mail: Michael.Benwitt@cowen.com RED RIVER: Shareholders' Final Meeting Set for May 18 ----------------------------------------------------- The shareholders of Red River Holding will hold their final meeting on May 18, 2017, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 SWISS CAPITAL: Shareholders' Final Meeting Set for May 31 --------------------------------------------------------- The shareholders of Swiss Capital Alternative Investments GP Limited will hold their final meeting on May 31, 2017, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stephen Penney Landmark Square West Bay Road P.O. Box 775 Grand Cayman KY1-9006 TIDE POOL: Shareholders' Final Meeting Set for May 25 ----------------------------------------------------- The shareholders of Tide Pool Offshore Income Fund, Ltd. will hold their final meeting on May 25, 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: Victor Murray MG Management Ltd. Landmark Square, 2nd Floor, 64 Earth Close Seven Mile Beach P.O. Box 30116 Grand Cayman KY1-1201 Cayman Islands Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 WILLIE RESOURCES: Shareholder to Hear Wind-Up Report on May 26 -------------------------------------------------------------- The shareholder of Willie Resources Incorporated will hear on May 26, 2017, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Man Wai Chuen China United Centre, 32nd Floor 28 Marble Road North Point Hong Kong Telephone: +852 3198 0130 =========== M E X I C O =========== MBIA MEXICO: S&P Affirms 'CCC' Counterparty Credit Ratings ---------------------------------------------------------- S&P Global Ratings affirmed its 'CCC' global scale counterparty credit and financial strength ratings on MBIA Mexico S.A. de C.V. S&P also affirmed its 'mxCCC' national scale financial strength rating on the company. The outlook on both ratings remains negative. Ratings on MBIA Mexico reflect S&P's opinion of its status as core subsidiary of MBIA Insurance Corp. (MBIA Corp.; CCC/Negative/--). This status is based on the parent support, which consists of a reinsurance agreement between the two companies, given that MBIA Mexico cedes 100% of its net liability to MBIA Corp. Additionally, MBIA Mexico benefits from a net worth maintenance agreement (NWMA) in which MBIA Corp. commits to maintain its subsidiary's capital base at the minimum regulatory requirement in Mexico or at US$10 million, whichever is greater. MBIA Mexico is in run-off and its portfolio consists of two financial guarantee policies backing Mexican RMBS issuances maturing in 2036. MBIA Mexico is currently undergoing the cancellation of its outstanding policies to be replaced by policies issued by MBIA Corp., according to an agreement with bondholders. The regulatory filing and approval is currently ongoing. If and when this process is completed and the Mexican subsidiary ceases to exist, S&P will discontinue its ratings. In S&P's view, MBIA Corp.'s liquidity position is weak, and absent favorable developments, the company is unlikely to meet all of its insurance policy obligations in the next 12 months. ====================== P U E R T O R I C O ====================== PUERTO RICO: Cede & Co Added to List of Top Unsecured Creditors --------------------------------------------------------------- The Commonwealth of Puerto Rico filed an amended list of creditors who have the 20 largest unsecured claims and are not insiders to provide that Cede & Co., as nominee of the Depositary Trust Company, as holder of the $12,096,636,080 bond debt, replacing Banco Popular de Puerto Rico, which was in the original list as the bond trustee. Cede & Co represents publicly held beneficial holders of the bond debt. For questions regarding holders of the bond debt please contact Prime Clerk at 844-822-9231. Entity Nature of Claim Amount ------ --------------- ------ Cede & Co., as Bond Debt $12,096,636,080 55 Water St. New York, NY 10041 U.S. Army Corps of Engineers Services $212,302,479 Annex Building Fundacion Angel Ramos 2nd Floor Suite 202 Franklin Delano Roosevelt Avenue #383 San Juan, Puerto Rico-00917 Fax: 787-729-6875 Email: Antilles.AO@usacc.army.mil Total Petroleum Corps. Supplies $11,506,512 PO Box 362916 San Juan, Puerto Rico 00936-2916 Attn: Luis Llado Fax: 787-783-0407 Email: Luis.Llado@tpprc.com EVERTEC Inc. Services $10,167,835 Carr. #176 k.m. 1.3 Cupey Bajo Rio Piedras, PR 00926 Fax: 787-250-7356 Email: eserrano@evertecinc.com Microsoft Services $8,120,058 City View Plaza I Suite 107 #48 State Road 165 Km 1.2 Guaynabo, PR 00968 Attn: Jenny Rivera Fax: 787-273-3634 Email: jerivera@microsoft.com Baxter Sales & Distrib PR Corp. Supplies $6,974,075 P.O. Box 360002 San Juan, PR 00936-0002 Attn: Eric Ruiz Malave & John Almeida Fax: 787-792-4646 Email: cric_ruiz@baxter.com pat_johnsen@baxter.com One Baxter Park Way Deerfield, Illinois 60015 Cesar Castillo Inc. Supplies $6,008,917 PO Box 191149 San Juan, PR 00919-1149 Attn: Jose L. Castillo Fax: 787-999-1613 Email: jgonzalez@cesarcastilo.com IKON Solutions, Inc. Services $5,857,040 270 Avenida Munoz Rivera PHI San Juan, PR 00918 Attn: Pedro J. Latorre Negron Fax: 787-620-0590 Email: pedro.latorre@ikonpr.com Kirkland & Ellis LLP Services $5,342,970 655 Fifteen Street, N.W. Washington DC 20005 Attn: Travis Langenkamp & Michael F. Williams Email: mwilliams@kirkland.com MC&CS Services $3,998,904 428 Ave Escorial Caparra Hts Vicjo San Juan, Puerto Rico 00926 Attn: Carlos Colon Medina Fax: 787-774-1870 Email: carloscolon@mccspr.com ccolon@mccspr.com Manpower Services $3,236,683 268 Munoz Rivera Ave, Ground Floor San Juan, PR 00918 Attn: Melissa Rivera Fax: 787-767-7611 Email: melissa.rivera@manpower.com COSALL Services $3,234,442 Carr 181 Km 2.0 Trujillo Alto, Puerto Rico 00976 Attn: Jorge 1, Valentin Asencio Fax: 787-292-1211 Email: jorge.valentin@cosallpr.com PO Box 1858 Trujillo Alto, P.R. 00977 Puerto Rico Telephone Company Services $3,200,935 1515 F.D. Roosevelt Avenue Guaynabo, PR 00968 Attn: Enrique Ortiz de Montelano Rangel Fax: 787-792-9830 Email: enrique.ortiz@claropr.com Ediciones Santillana, Inc. Supplies $2,807,231 Avenida Roosvelt 1506 Guaynabo, PR 00968 Attn: Daniel Sanz & Obed Betancourt Fax: 787-486-4826 Email: dsanz@santilluna.com ydejesus@santillana.com obetancourt@santillana.com Corporacion de Servicios Services $2,517,577 Educativos de Yabucoa Sector Juan Martin Carretera #3 Km 93.7 Ruta 901 Yabucoa, PR 00767 Attn: Dr. Roque Diaz Tizol Fax: 787-266-3881 Email: mmedia@cosey.org Cardinal Health PR Supplies $2,460,000 Centro Internacional de Distribucion PR -165 Km 2.4 Edificio 10 Guaynabo, PR 00965 Attn: Deborah Weitzman @ Kaleny Nazario Bartolomei Fax: 787-625-4322 Email: kaleny.nazario@cardinalhealth.com deborah.weitzman@cardinalhealth.com PO Box 366211 San Juan PR, 00936 Institucion Educativa NETS, LLC Services $2,439,180 84-11 70 Street, Sierra Bayamon Bayamon, PR 00961 Attn: Nydia T. Rodriguez Lopez Fax: 787-785-5564 Email: mrodriguez@netspr.com Braxton School of Puerto Rico Services $2,153,106 K-2 Ave. San Patricio Guaynabo, PR 00968 Attn: Angelina Sosa Fax: 787-793-0495 Email: wmunoz@baraxtonpr.com academico@braxtonpr.com braxton.dp@gmail.com Workforce Training and Services $2,063,354 Employment Center, Inc. (WOTEC) Marginal 65 Infanteria #23 Urb. San Agustin San Juan, PR 00925 Attn: Rosa J. Orama Ortiz Fax: 787-815-0432 Email: info@wotecpr.org Ediciones SM Supplies $1,893,127 Barrio Palmas 776 Calle 7, Suite 2 Catano, PR 00962 Attn: Marisol Diaz Fax: 787-625-9799 Email: marisol.diaz@primaspr.net consultas@sm-pr.com 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 available at http://bankrupt.com/misc/17-01578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. U.S. Chief Justice John Roberts has named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. 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: COFINA Files Petition; Joint Administration Sought --------------------------------------------------------------- The Financial Oversight and Management Board for Puerto Rico issued on May 5, 2017, a restructuring certification pursuant to PROMESA sections 104(j) and 206 and filed a voluntary petition for relief for Puerto Rico Sales Tax Financing Corporation pursuant to PROMESA section 304(a), commencing a case under title III thereof (D.P.R. Case No. 17-01599). COFINA was created, among other things, to raise money for the Commonwealth in exchange for the Commonwealth's transfer to COFINA of certain sales and use taxes. The Commonwealth of Puerto Rico (which earlier filed a PROMESA petition) and COFINA have filed a motion, through the Oversight Board, as the Debtors' representative pursuant to section 315(b) of PROMESA, filed a motion, pursuant to PROMESA section 304(g), and rule 1015(b) of the Federal Rules of Bankruptcy Procedure, made applicable to these cases by PROMESA section 310, for entry of an order directing the joint administration of the Debtors' Title III Cases. "Joint administration of the Title III Cases will save the Debtors substantial time and expense, because it will remove the need to prepare, replicate, file, and serve duplicative notices, applications, and orders in each of the Debtors' cases. Further, joint administration will relieve administrative burdens otherwise placed on the Court as a result of having to enter potentially duplicative orders and maintaining duplicative files and dockets. Joint administration of these Title III Cases will therefore promote judicial economy and efficiencies, reducing delay and expenses for the Debtors, their creditors, and other interested parties," Martin J. Bienenstock, Esq., at Proskauer Rose LLP, explains. 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 available at http://bankrupt.com/misc/17-01578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. U.S. Chief Justice John Roberts has named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. 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: COFINA's Case Summary & List of Creditors ------------------------------------------------------ Debtor: Puerto Rico Sales Tax Financing Corporation c/o Financial Oversight and Management Board for Puerto Rico, as Representative of the Debtor Jacob Javits Federal Bldg. 26 Federal Plaza Room 2-128, Attn: Jaime El Koury New York, NY 10278 Case No.: 17-01579 About the Debtor: COFINA was created, among other things, to raise money for the Commonwealth in exchange for the Commonwealth of Puerto Rico's transfer to COFINA of certain sales and use taxes. On Sept. 30, 2016, COFINA was designated by the Financial Oversight and Management Board for Puerto Rico as a Covered Territorial Instrumentality pursuant to Sec. 101(d)(1)(A) of PROMESA. Title III of PROMESA provides a means for a covered territory (such as the Commonwealth) that has encountered financial difficulty to work with its creditors to adjust its debts. To that end, certain sections of the United States Bankruptcy Code, 11 U.S.C. Sec. 101 et seq., are incorporated and made applicable to cases under title III of PROMESA. During the Title III Case, the Commonwealth will remain in possession and control of its property, and will continue to maintain its functions and provide services for the benefit of the citizens of Puerto Rico. The Commonwealth intends to propose a plan for the adjustment of the Commonwealth's debts. PROMESA Title III Petition Date: May 5, 2017 Court: United States District Court District of Puerto Rico 150 Carlos Chardon Street San Juan, PR 00918-1767 http://www.prd.uscourts.gov/ Judge: Judge Laura Taylor Swain Related entity that earlier filed PROMESA petition: Petition Debtor Case No. Date ------ -------- ---- The Commonwealth of Puerto Rico 17-01578 May 3, 2017 Attorneys for the Financial Oversight and Management Board: Martin J. Bienenstock, Esq. Scott K. Rutsky, Esq. Philip M. Abelson, Esq. PROSKAUER ROSE LLP 11 Times Square, New York NY 10036 Tel: (212) 969-3000 Fax: (212) 969-2900 E-mail: mbienenstock@proskauer.com srutsky@proskauer.com pabelson@proskauer.com Co-Attorneys for the Oversight Board: Hermann D. Bauer, Esq. O'NEILL & BORGES LLC 250 Munoz Rivera Ave., Suite 800 San Juan, PR 00918-1813 Tel: (787) 764-8181 Fax: (787) 753-8944 E-mail: hermann.bauer@oneillborges.com Oversight Board's Strategic Consultant: MCKINSEY & CO. Oversight Board's Municipal Investment Banker: CITIGROUP GLOBAL MARKETS Oversight Board's Financial Advisor: ERNST & YOUNG Counsel to the Puerto Rico Fiscal Agency and Financial Advisory Authority: John J. Rapisardi, Esq. Suzzanne Uhland, Esq. Peter Friedman, Esq. O'MELVENY & MYERS LLP 7 Times Square New York, NY 10036 Tel: 212.326.2000 Fax: 212.326.2061 E-mail: jrapisardi@omm.com suhland@omm.com pfriedman@omm.com Claims & Noticing Agent: PRIME CLERK LLC The petition was signed by Jaime El Koury, general counsel. A copy of COFINA's Petition is available at: http://bankrupt.com/misc/prb17-01599_PR-COFINA_Petition.pdf COFINA's List of Creditors Who Have the 20 Largest Unsecured Claims and Are Not Insiders: Entity Nature of Claim Amount ------ --------------- ------ Lehman Brothers Holdings Inc. Legal Claim- SWAP $3,400,000 c/o Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, NY Attn: Garrett A. Fail. Fax: (212) 310-8007 KPMG, LLC Audit Fees $218,811 American Int'l Plaza, 250 Ave. Luis Munoz Rivera San Juan, PR 00918 Attn: Angel Perez & Luisette Negron Fax: (787) 754-6175 E-mail: aperez@kpmg.com lnegron@kpmg.com PUERTO RICO: Proposes Prime Clerk as Claims Agent ------------------------------------------------- The Commonwealth of Puerto Rico and the Puerto Rico Sales Tax Financing Corporation, by and through the Financial Oversight and Management Board for Puerto Rico, ask the U.S. District Court for the District of Puerto Rico, to authorize the employment and payment of Primer Clerk LLC as the official solicitation, notice, and claims agent in the Title III cases. According to the Debtors, appointing Prime Clerk as the solicitation, notice and claims agent in the Title III cases expedites the distribution of notices and solicitation of votes on a plan of adjustment, and relieves the office of the Clerk of the Court of the administrative burden of processing a potentially overwhelming amount of claims. Prime Clerk will, to the extent requested by the Oversight Board and the Debtors: (a) prepare and serve required notices and documents in the Title III Cases in accordance with PROMESA, the Bankruptcy Code, and the Bankruptcy Rules. (b) prepare and file or cause to be filed with the Clerk an affidavit or certificate of service for all notices, motions, orders, other pleadings, or documents served within 3 business days of service. (c) maintain a list of all potential creditors and other parties in interest, maintain a core mailing list of all parties described in Bankruptcy Rule 2002(i),(j), and (i) and those parties that have filed a notice of appearance under Bankruptcy Rule 9010; and (iii) update and make available the foregoing lists upon request by a party in interest or the Clerk. (d) identify and correct any incomplete or incorrect addresses in any mailing or service lists. (e) furnish a notice to all potential creditors of the last date for filing proofs of claim. (f) maintain a post office box or address for the purpose of receiving claims and returned mail, and process all mail received. (g) process all proofs of claim received, including those received by the Clerk, check said processing for accuracy and maintain the original proofs of claim in a secure area. (h) provide an electronic interface for filing proofs of claim. (i) maintain the official claims register for the Debtors on behalf of the Clerk. (j) implement necessary security measures to secure the completeness and integrity of the Claims Registers and the safekeeping of the original claims. (k) record all transfers of claims and provide any notices of such transfers as required by Bankruptcy Rule 3001(e). (l) relocate, by messenger or overnight delivery, all of the court-filed proofs of claim to the offices of Prime Clerk, not less than weekly. (m) upon completion of the docketing process for all claims received to date, turn over to the Clerk a copy of the Claims Register for the Clerk's review. (n) monitor the Court's docket for all notices of appearance, address changes, and claims-related pleadings and orders filed. (o) assist in the dissemination of information to the public and respond to requests for administrative information regarding these Title III Cases. (p) 30 days before the close of these Title III Cases, to the extent practicable, request that the Oversight Board, on behalf of the Debtors, submit to the Court a proposed order dismissing Prime Clerk as solicitation, notice and claims agent and terminating its services in such capacity upon completion of its duties and responsibilities and upon the closing these Title III cases. (q) within seven days of notice to Prime Clerk of entry of an order closing these Title III Cases, provide to the Court the final version of the Claims Register as of the date immediately before by the close of the Title III Cases. (r) at the close of the Title III Cases, box and transport all original documents to any location requested by the Clerk's office. (s) assist with the solicitation, balloting and tabulation of votes and preparation of any related reports, as required in support of a confirmation of a plan of adjustment. (t) prepare an official ballot certification. (u) manage and coordinate any distributions pursuant to a plan of adjustment. (v) provide such other processing solicitation balloting and other administrative services as may be requested from time to time by the Debtors, the Oversight Board, the Court or the Clerk. Prime Clerk has agreed to be employed by the Debtors conditioned upon its ability to work under its customary terms and conditions of employment, including the proposed compensation arrangements set for in the Engagement Agreement. The Debtors have agreed to pay Prime Clerk an advance of $100,000. 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 available at http://bankrupt.com/misc/17-01578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. U.S. Chief Justice John Roberts has named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. 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: Retirees Ask for Own Official Committee ---------------------------------------------------- The Ad Hoc Committee for the Protection of Accrued Retirement Benefits of Puerto Rico's Public Employees and Retirees is asking the U.S. District Court for the Commonwealth of Puerto Rico for entry of an order directing the appointment of an official retiree committee with respect to the interests of Puerto Rico's public employees and retirees as holders of accrued pension and other retirement benefits. The Ad Hoc Committee also wants the District Court to enter an order specifically appointing the members of the Ad Hoc Retiree Committee to serve as the members of the Official Retiree Committee. "[T]he size and complexity of this case clearly militate in favor of creating an Official Retiree Committee to ensure adequate representation of Retirees. There are approximate 160,000 public-employment retirees in Puerto Rico and approximately another 160,000 active public employees holdings accrued retirement benefits. The claims of these Retirees for pension benefits, health care and other post-employment benefits are complex and completely distinct from other types of unsecured claims. The claims for pension underfunding alone are estimated at approximately alone are estimated at approximately $50 billion. In light of the size, volume, uniqueness and complexity of Retiree claims, the appointment of an Official Retiree Committee is warranted and necessary to provide adequate representation of Retirees," explains A.J. Bennazar-Zequeira, Esq., at Bennazar, Garcia & Milian, C.S.P. "If an unsecured creditors committee is appointed, participation of Retirees on that committee would not provide adequate representation of Retirees. The claims of Retirees will likely be in direct conflict with those of financial and trade creditors on such committee, whose claims in total are also in the billions of dollars. Thus, an unsecured creditors committee comprising Retirees along with financial and trade creditors would likely be rendered dysfunctional and would not serve the representation needs of Retirees." "Negotiating with over 300,000 individual creditors is simply impossible, and any attempt to do so would engender enormous delay and costs in administering these proceedings. Moreover, these individuals generally lack the means to represent themselves individually in this matter. Even collectively, as mentioned, the Ad Hoc Retiree Committee cannot afford to pay legal fees of its counsel and is receiving legal services at present on a concessionary basis. In contrast, an Official Retiree Committee would be authorized to employee counsel and other professionals necessary to protecting Retiree interests, with the expenses being borne by the Debtor, pursuant to 11 U.S.C. Sec. 1103, PROMESA Sections 316 and 317 (48 U.S.C. Sec. 2176, 2177), and any other applicable orders of the Court. Thus, an Official Retiree Committee able to deploy professionals to analyze issues and appear at court and in negotiations on behalf of all Retirees, collectively, is a more effective, efficient and realistic method of giving voice to Retiree concerns and also provides a centralized point of contact for the professionals representing the Oversight Board and Governor Rosello's administration. For these very reasons, retiree committees charged with appearing and negotiating on behalf of retirees are routinely appointed in municipal bankruptcies. See In re City of Detroit, Case No. 13- 53846 (Bankr. E.D. Mich.), Appointment of Official Committee of Retirees (Dkt. No. 566, Aug. 22, 2013); In re City of Stockton, Case No. 12-32118 (Bankr. E.D. Cal.), Appointment of Official Committee of Retirees (Dkt. No. 846, Apr. 1, 2013); In re City of Vallejo, Case No. 08-26813 (Bankr. E.D. Cal.), Appointment of Official Unsecured Creditors Committee of Retirees (Dkt. No. 286, Oct. 8, 2008). In fact, consistent with this Motion, in In re city of Stockton, a prepetition ad hoc retiree committee was appointed to serve as the official retiree committee." "Also, in this case, many Retirees may struggle to understand pleadings and reports written in English. Having an Official Retiree Committee regularly posting information in Spanish regarding matters occurring in the Court would provide an important public information function." "While Governor Rossello, the Oversight Board, and bondholders have differed in their views as to what is the appropriate level of cuts to accrued pension benefits, they have all contemplated such cuts, and the certified fiscal plan clearly envisions such reductions -- without permitting the effected parties (i.e. the Retirees) to participate in the negotiations. As stated, counsel for the Ad Hoc Retiree Committee attended a meeting with counsel for the Oversight Board and the Governor in Washington, D.C., and participated in a public meeting of the Oversight Board. However, the Committee has not been invited to participate in any debt- restructuring negotiations to date. Not permitting the Retirees to participate in restructuring negotiations that contemplate cuts to their own accrued retirement benefits blatantly threatens prejudice to Retiree interests and is completely antithetical to the holistic and inclusive approach that is the hallmark of multi- party creditor restructuring negotiations. Therefore, even if Title VI-type negotiations may continue to be pursued under Title III, the time has come for Retirees to be at the table to protect their interests. As creditors owed an estimated aggregate underfunding claim of approximately $50 billion, the Retirees clearly deserve at the negotiating table. If an Official Retiree Committee is appointed pursuant to 11 U.S.C. Sec. 1102 and 1103, such Committee would be affirmatively authorized to participate in the restructuring negotiations." Counsel of the Ad Hoc Retiree Committee: A.J. Bennazar-Zequeira, Esq. BENNAZAR, GARCIA & MILIAN, C.S.P. Edificio Union Plaza, PH-A 416 Ave. Ponce de Leon Hato Rey, Puerto Rico 00918 Tel: (787) 754-9191 Fax: (787) 764-3101 E-mail: ajb@bennazar.org Co-Counsel to the Ad Hoc Retiree Committee: Robert D. Gordon, Esq. Shannon L. Deeby, Esq. Jennifer K. Green, Esq. CLARK HILL PLC 151 South Old Woodward Avenue, Suite 200 Birmingham, MI 48009 Tel: (248) 988-5882 Fax: (248) 988-2502 E-mail: rgordon@clarkhill.com sdeeby@clarkhill.com jgreen@clarkhill.com Members of Ad Hoc Committee The Ad Hoc Retiree Committee comprises a group of public- employment retiree organizations based in Puerto Rico that share a common concern regarding the protection of accrued retirement benefits in the restructuring process under PROMESA. In addition, there are several individuals who serve on the Ad Hoc Retiree Committee solely in their individual retiree capacities. All individuals participating on the Ad Hoc Retiree Committee are personally holders of accrued public pension and other retirement benefits. The Ad Hoc Retiree Committee's constituent organizations represent over 91,000 Retirees. Retirees who participate in four out of the five public pension systems in Puerto Rico are represented by the Ad Hoc Retiree Committee; only retirees from the Puerto Rico Electrical Power Authority are currently unrepresented by the Committee. To date, these associations and individuals have joined the Ad Hoc Retiree Committee: i. Asociacion de Empleados de Comedores y Pensionados del Gobierno de Puerto Rico (Retired school lunch workers); ii. Asociacion de Empleados Jubilados de la UPR (Retired University of Puerto Rico employees); iii. Asociacion de Ex Empleados Socios; iv. Asociacion de Pensionados del Gobierno de Puerto Rico (APGPR) (Retired Government of Puerto Rico employees); v. Asociacion de Profesores Jubilados de la UPR-Humacao (Retired Professors of the University of Puerto Rico Humacao Campus); vi. Departamento de Pensionados y/o Retirados Asociacioni de Maestros (Retired teachers/ members of the Teachers' Association); vii. Pensionados C.F.S.E. (Retired employees of the State Workers Compensation Insurance Fund); viii. Retirados AEELA INC (Retired AEELA employees); ix. Sindicato de Policias Puertorriquenos (Retired members of the Policemen's Syndicate); x. Asociacion de Retirados Residentes en el Exterior A.S.R.E.P. (Retirees residing outside of Puerto Rico); xi. Asociacion de Medicos Jubilados C.F.S.E. (Retired doctors of the Workers Compensation Insurance Fund); xii. Movimiento Retiro 447 (Active employees who still qualify for Law 447 Defined Benefit Plan); xiii. Individual Pensionado S.R.M. (Retired employees of the Teachers Retirement System); xiv. Individual Pensionada E.L.A. (Retired Judge, Judiciary Retirement System); xv. Empleados Jubilados de la Comision Industrial (Retired Employees of the Industrial Commission); xvi. Capitulo de Jubilados de Federacion de Maestros (Chapter of Retired Members of the Teachers Federation); and xvii. Asociacion de Veteranos de la Policia Inc. (Police Veterans Association). The Ad Hoc Retiree Committee's roster also includes the American Association of Retired Persons ("AARP") as an ex-officio member. The scope of retirees represented by the Ad Hoc Retiree Committee includes representation of, inter alia, retired teachers, police officers, school lunch room employees, professors, judges, and general government employees. The Ad Hoc Retiree Committee has retained qualified legal counsel, Clark Hill PLC, the same first that represented the General Retirement System and the Police and Fire Retirement System of the City of Detroit in the historic City of Detroit municipal restructuring case. 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 available at http://bankrupt.com/misc/17-01578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. U.S. Chief Justice John Roberts has named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. 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. ============================= S T. K I T T S & N E V I S ============================= * ST. KITTS & NEVIS: Economy to Grow Again in 2017, IMF Says ------------------------------------------------------------ An IMF mission visited St. Kitts and Nevis during April 18-May 4 to conduct the 2017 Article IV consultation. Notwithstanding a difficult international environment, St. Kitts and Nevis' economy is expected to grow again in 2017 for the 5th consecutive year. St. Kitts and Nevis' strong macroeconomic performance owes much to the robust Citizenship-by-Investment (CBI) inflows and their spillovers to the economy, as well as overall prudent macroeconomic policies. Against the background of elevated risks to CBI inflows and risks associated with completion of the debt-land swap, the mission focused on measures to safeguard macroeconomic and financial stability, including by strengthening the fiscal policy framework and reducing reliance on CBI inflows, and necessary reforms to attain sustainable, inclusive growth. 1. Economic performance moderated somewhat in 2016 compared to the recent years. The economy grew at a modest 3.2 percent in 2016, compared to 4.9 percent in 2015, while still exceeding the average growth rate in the ECCU region. The overall fiscal surplus, at 4.2 percent of GDP, deteriorated compared to 2015, owing mainly to lower CBI receipts. The underlying overall balance (that is, the overall balance excluding SIDF grants, CBI-related receipts and due diligence expenditure) remains in deficit, around 3.3 percent of GDP. A combination of lower CBI-budgetary receipts and a larger trade deficit resulted in a significant widening of the current account deficit. At the same time, public debt fell further, projected to reach the 60 percent ECCU debt-to-GDP target by 2018, ahead of ECCU peers. 2. The authorities made significant efforts to strengthen the CBI program, given risks to CBI revenues in a challenging regional and global environment. They have strengthened the due-diligence process with dedicated resources and global collaboration, as this is essential to reduce integrity and security risks, preserve the program's credibility, and avoid a race-to-the-bottom. 3. The medium-term outlook incorporates conservative assumptions on future CBI flows. Growth is projected to be 2.7 percent for 2017 and is expected to average around 3 percent in the medium term. The projected slowdown in construction would be offset by public investment on infrastructure and higher tourism growth (as source market growth accelerates and new tourism facilities come on stream in 2017-19). The external current account deficit should remain large with CBI inflows tapering off. 4. Risks to the medium-term outlook are broadly balanced. Key risks include further delays in completing the debt-land swap and a sharp drop in CBI inflows due to more acute competition and global security concerns. Other negative risks include a stronger U.S. dollar, a tighter financial environment, a more severe Zika epidemic, and a major natural disaster. Loss of correspondent banking relationships (CBRs) could add to challenges. Softer global climate change policy may exacerbate natural-disaster risks. On the upside, stronger CBI inflows (from ongoing program reforms and tougher immigration policies in the United States on other countries) and weaker oil-prices could support faster growth. 5. The authorities' 2017 policy priorities focus on preserving the gains in fiscal sustainability while supporting growth and strengthening resilience. The strategy aims at controlling government recurrent spending while scaling up public investment to build resilience, and to support stronger sustainable and inclusive growth. The budget does not propose new taxes, but envisages streamlining concessions over the next 2-3 years and implementing public financial management reform. 6. The medium-term fiscal framework should continue to focus on reducing reliance on CBI inflows in a world of heightened uncertainty. The VAT and import-duty exemptions since 2014 have weakened the fiscal framework. Notwithstanding the large fiscal buffers accumulated, an extreme scenario of a sharp drop in CBI inflows could result in fiscal deficits that erode the buffers as early as 2020 and risk reversing the downward debt trajectory, absent fiscal adjustment. An economic slowdown could further weaken tax performance. 7. A medium-term fiscal framework anchored to a balanced underlying primary-balance target would help increase resilience to sharp drops in CBI inflows, with needed adjustment at about 2.1 percent of GDP paced over 3-5 years. Such a target, along with the ECCB-debt target, could be enshrined in fiscal responsibility legislation that would provide the government with a commitment device to anchor its adjustments. It would safeguard against pressure to deviate from the adjustment path, and save windfall CBI inflows, excluded from the rule, in a contingency fund. Approval of both Cabinets of an action plan to meet the primary balance target at the country level is key. 8. On the revenue side, the tax base should be broadened, including by streamlining tax incentives and continuing to improve tax administration. The revenue loss from tax incentives remains high (at 6.4 percent of GDP -- both discretionary and granted by legislation). [2] Tax incentives should be transparent, rule- based, and well-targeted. The Fund supports the authorities' intention to refine the system and stands ready to assist. Consideration should also be given to updating property valuations and enhancing compliance. Other taxes, including on cigarette, alcohol, and sugary products (consistent with initiatives that CARICOM is exploring) can raise revenue, while contributing to government efforts to reduce no communicable diseases. 9. On the expenditure side, containing spending on goods and services and the public wage bill should remain a priority. We welcome the intention to establish a more predictable system for public pay-packages and recommend that pay increases be consistent with budgetary constraints, macroeconomic developments, and regular benchmarking with private sector wages. A ceiling on the public-wage bill could be set, guided by the medium-term fiscal framework anchored to the debt and primary-balance targets. Allocations could be communicated by Cabinet to line ministries within the budget process, taking into account the envisaged qualification- and performance-based incentive system. 10. Plans to introduce universal health-coverage (UHC) are commendable, but its fiscal implications should be carefully managed. The design, coverage, and financing of UHC should limit risk to fiscal sustainability. The scheme should be funded from permanent revenue sources to avoid recurrent drains on the budget. The benefit package for the population should ensure the system's financial viability, and use specific measures to target the poor. Appropriate incentives and regulatory tools should contain costs. Drawing on expertise from PAHO and the World Bank should help tailor the scheme appropriate to the country characteristics. 11. We welcome the commitment to establish a Growth and Resilience Fund (GRF) and stand ready to assist with the modalities. The GRF should have a simple sovereign-wealth-fund structure, with a prudent investment strategy and flows fully integrated with the fiscal framework. We welcome the agreement on the budgetary arrears with PDVSA and near-agreement on NIA debt-restructuring, and support any further liability-management efforts, including reducing outstanding T-bills, accelerating payment of expensive debt, and improving debt terms. 12. Structural reforms to strengthen public financial management need urgent attention. The SIDF's quasi-fiscal spending should be contained, including by streamlining its activities and integrating with the general government's consolidated account to facilitate more comprehensive fiscal planning and cash management. Once the GRF is established, the authorities should consider transferring revenue from CBI flows and resulting SIDF deposits to the GRF. The authorities have accepted the need to enhance the oversight of public corporations by enforcing timely reporting of financial statements. The overall public financial management would also benefit from the strengthening of the NIA's debt and cash management frameworks. 13. Fiscal efforts should address the need to prepare for the inevitable recurrence of natural disasters. A comprehensive risk- management framework focusing on risk reduction and mitigation is critical to building resilience and reducing the fiscal burden of disasters. Natural disaster risk could be assessed and incorporated into budget and debt management frameworks, with investments in risk reduction (e.g., targeted infrastructure projects, early warning systems, and risk maps), and self- insurance (financed through fiscal buffers). Contingent financing plans, risk-transfer arrangements, and encouraging private sector investment in risk mitigation are also essential. 14. The sale of lands under the debt-land swap arrangement must be completed urgently to limit fiscal and financial risks. A clear action plan and timetable with concrete milestones are needed. Completing existing purchase proposals and stepped up marketing to generate sales, including through real-estate agents and the SLSC website, will help establish momentum and remove the policy uncertainty. Cooperation with CIU and SKIPA is welcome and should support these efforts. We welcome the ongoing discussions on the renewal of the dividend-guarantee agreement with banks at renegotiated terms. 15. The authorities should continue strong efforts to reduce CBR risks and maintain the integrity of the CBI-program. The authorities have further improved compliance with international AML/CFT standards and exchange of information, and are jointly working with the ECCB to implement AML/CFT standards. Banks continue to suffer from increasing costs through higher fees, lengthier transactions, and increased due diligence, but open communication and information-sharing between respondent and correspondent banks have helped limit loss of CBRs. Introducing Basel II and the continued implementation of risk-based supervision should also improve perceptions. Careful consideration of amalgamation opportunities can help address volume-of-business concerns and improve risk-management capability. 16. Banks are still burdened by high levels of nonperforming loans (NPLs). Their swift resolution is critical to limit further deterioration, revive credit expansion, and support economic growth. The establishment of the ECAMC will allow for a more efficient collection and disposal of distressed assets. Ongoing efforts to modernize the foreclosure and insolvency frameworks would help maximize recovery. The new collateral appraisal guidelines, credit bureau, and land registry should help contain future losses from NPLs. 17. The authorities should monitor other potential risks, including the implications of a slowdown in CBI inflows for the banking system. While the direct impact may be limited, and even though the local and CBI-related real-estate markets are segmented, and most CBI-properties are self-financed, slower inflows may affect banks through reduced construction activity and its spillover effects on borrowers' repayment capacity. Authorities should monitor market developments closely and ensure adequate prudential oversight to minimize any potential effects on banks of further slowdown in CBI inflows and the ending of the 5- year holding-period for existing CBI properties. 18. The authorities should adopt a comprehensive strategy to overcome persistent structural challenges that continue to limit the potential for inclusive growth. Ongoing efforts to expedite business registration, establish a dedicated land-registry, credit bureau, and SME partial-credit-guarantee scheme, and revise the foreclosure legislation should improve the weak business environment that lags peers. Alternative investment options under the CBI program could channel funds to renewable energy, health, education, supporting skill development and economic diversification, while also reducing the risk of asset bubbles. Soft-skills training program is welcome; however, time-bound participation should be enforced upon certification, and stipends set below the minimum wage. A substantial rise in the minimum wage (already high compared to non-Caribbean tourist-islands and competitive middle-income countries) should be avoided without increased productivity. Focusing on housing programs for the poorest and emphasis on gender gaps in the National Social Protection Policy should support inclusiveness. Ongoing actions to reduce crime through increased use of CCTV systems and community- related programs are welcome. 19. The authorities welcome Technical Assistance to improve the availability and quality of data with respect to balance of payments, national accounts, and labor market and social statistics. These are key to assessing vulnerabilities and for effective policymaking. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Unemployment Rate Down to 4% in 3rdQ ------------------------------------------------------- Leah Sorias at Trinidad Express reports that the Central Statistical Office has reported a decrease in Trinidad and Tobago's unemployment rate-from 4.4 per cent in the second quarter of 2016 to four per cent in the third quarter. However, compared to the third quarter of 2015, there was an overall increase in the unemployment rate, according to Trinidad Express. The rate for 2015 stood at 3.4 per cent, the report notes. In its latest labor force bulletin, the CSO indicated that the largest number of jobs lost were seen in the public sector, with employment in "Government public service/statutory board" falling by 9,400 or 6.5 per cent, the report relays. It noted, though, that this decrease was offset by an increase in the number of self-employed persons (by 9,100 or 8.5 per cent), the report says. CSO said the decrease in the third quarter rate was not uncommon for the period and was mainly due to seasonality changes, the report adds. TRINIDAD & TOBAGO: Chair Warns Gov't. on Informal Forex Controls ---------------------------------------------------------------- Trinidad and Tobago Newsday reports that Dr. Terrence Farrell, Trinidad and Tobago chairman of the Economic Development Advisory Board, has sounded the alarm on what he sees as a potentially dangerous development in the foreign exchange situation. Giving his comments during an armchair discussion at the first instalment of the Chamber of Commerce's Economic Transformation Series, "Is Oil and Gas Smothering the Private Sector in Trinidad and Tobago?", Mr. Farrell agreed with Ronald Hinds, chamber president, that the institution of what appeared to be informal controls in distributing forex was a "slippery slope," according to Trinidad and Tobago Newsday. The report notes that Mr. Farrell, who identified himself as a director of Republic Bank, said banks were responsible for selling foreign exchange to the public, while the Central Bank's job was to disburse that foreign exchange to the market. He pointed out that the Minister of Finance was telling the Central Bank to tell the commercial banks they must prioritize manufacturers, the report notes. He said, "What is a banker to do? "Corruption is going to enter into that. I have told my colleagues at Republic Bank precisely that. The Bankers Association of this country should have told the Central Bank, told the Ministry of Finance, 'We are not prepared to do exchange controls for you.' But they have not said that. And they are going to get themselves in a lot of trouble, the bankers are going to get themselves in a lot of trouble. Because customers are going to say, 'You are favoring that one,' and it is going to open us up to a royal mess," notes the report. Mr. Farrell said the float system put in place in 1993 was more than enough to manage forex without exchange controls, the report relays. "What we are doing now is re-introducing exchange controls. They do not work. They cause corruption, they cause problems," he added, notes Trinidad and Tobago Newsday. The finance minister presented the mid-year budget review, in which he reiterated government's stance that priority was to be given to manufacturers to access US dollars, the report adds. ================= V E N E Z U E L A ================= VENEZUELA: Maduro Replaces Top Health Official After Data Released ------------------------------------------------------------------ Kejal Vyas at The Wall Street Journal reports that Venezuela President Nicolas Maduro replaced his top health official just days after her ministry reported a severe worsening in public health in a rare release of government statistics. After withholding data since 2015, the Health Ministry in Venezuela last week published an epidemiological bulletin showing a 30% increase in infant mortality and a 66% rise in maternal mortality last year, while malaria cases rose by 76%, according to The Wall Street Journal. The report was the latest blow for Mr. Maduro, whose government has foregone publishing basic health and economic statistics during a troubled four-year tenure marked by food and medicine scarcity, The WSJ notes. Since April, thousands of Venezuelans have poured into the streets almost daily to protest Mr. Maduro's economic oversight and call for his ouster, The WSJ relays. He has also drawn criticism from within his own party, the report discloses. The Maduro administration said Luis Lopez, a 43-year-old pharmacist and activist for the ruling Socialist party, will take over as health minister for Antonieta Caporale, a gynecologist who had been appointed to the post in early January, the report notes. In announcing Mr. Lopez's appointment, Vice President Tareck El Aissami didn't give a reason for the move, the report relays. "President Maduro appreciates Dr. Antonieta Caporale's work and commitment for the ministry," Mr. El Aissami said in a Twitter post, the report discloses. Mr. Lopez previously served as a health secretary for the state of Aragua under Mr. El Aissami, who used to be governor of that state, the report says. Mr. Lopez becomes the eighth health minister under Mr. Maduro and takes over a health-care system that has been plagued by shortages of everything from antibiotics to vaccines to mosquito repellent, the report relays. The Health Ministry report showed that in 2016, rates of infant deaths rose along with the spread of illnesses like diphtheria and malaria, the report says. Venezuela's top advocacy group for pharmaceutical companies says that 85% of basic medications are unavailable as the government lacks dollars to pay for imports and local industries close amid the recession, the report notes. As the economy worsens, the Maduro administration has stopped regularly publishing a host of indicators ranging from gross domestic product and inflation to homicides, the report adds. As reported by The Troubled Company Reporter-Latin America, S&P Global Ratings, on Feb. 28, 2017, affirmed its 'CCC' long-term foreign and local currency sovereign credit ratings on the Bolivarian Republic of Venezuela. The outlook on both long-term ratings remains negative. S&P also affirmed its 'C' short-term foreign and local currency sovereign ratings. In addition, S&P affirmed its 'CCC' transfer and convertibility assessment on the sovereign. *********** 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 * * *