/raid1/www/Hosts/bankrupt/TCRLA_Public/170529.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
Monday, May 29, 2017, Vol. 18, No. 105
Headlines
B A R B A D O S
BARBADOS: Minister Hits Back as Bankers Suspend Transactions
B E R M U D A
BW GROUP: S&P Affirms Then Withdraws 'BB' CCR
B O L I V I A
BOLIVIA: S&P Revises Outlook to Negative & Affirms 'BB' Rating
B R A Z I L
ODEBRECHT OLEO: Services Unit Reaches Deal on Debt Restructuring
C A Y M A N I S L A N D S
AKYLAS LIMITED: Members' Final Meeting Set for June 22
ALKEON GLOBAL: Members' Final Meeting Set for June 22
AMAANAH MASTER: Contributories to Hold Final Meeting on May 31
CVI GVF 26: Contributories to Hold Final Meeting on May 31
CVI GVF 28: Contributories to Hold Final Meeting on May 31
DGAM UNIQUE: Contributories to Hold Final Meeting on May 31
DR II HOLDINGS: Contributories to Hold Final Meeting on May 31
SWISS-ASIA: Shareholder Receives Wind-Up Report
TIMES FILMS: Shareholders' Final Meeting Set for June 21
WORLDWIDE AGGRESSIVE: Shareholder to Hear Wind-Up Report on May 30
D O M I N I C A N R E P U B L I C
DOMINICAN REP: Merchants Says There's No One in Haiti to Talk To
DOMINICAN REPUBLIC: Firms Push Approval of Money Laundering Law
M E X I C O
MAXCOM TELECOMUNICACIONES: S&P Raises CCR to 'CCC+'
* Investors Concerned by Challenges Facing Mexican Corporates
P U E R T O R I C O
SPANISH BROADCASTING: Incurs $10.8 Million Net Loss for Q1
V E N E Z U E L A
* VENEZUELA: Dominicans Want to Leave, Properties Hold Them Back
X X X X X X X X X
* BOND PRICING: For the Week From May 22 to May 26, 2017
- - - - -
===============
B A R B A D O S
===============
BARBADOS: Minister Hits Back as Bankers Suspend Transactions
------------------------------------------------------------
Caribbean 360 reports that the Barbados Government and the
island's commercial banks are on a collision course over a
controversial tax clearance certificate imposed under the amended
Barbados Revenue Authority (BRA) Act.
The new measure, which took effect on March 16, mandates that
private citizens and corporations must have paid all their taxes
to secure the certificate, notes the report.
But in a worrying backlash, commercial banks have suspended over
300 real estate-related transactions estimated at BDS$211 million
(US$105.5 million), Carribean 360 says.
According to the report, President of the Barbados Bankers
Association (BBA) Donna Wellington explained that until there was
clarification on the process of obtaining a tax clearance
certificate, the financial institutions would not be in a position
to close any real estate-related transactions or disburse monies
associated with those deals.
The move has drawn the ire of Finance Minister Chris Sinckler, who
described the move as "unwarranted" and charged that it was all
part of an excuse not to cooperate with the Government and the
BRA, the report relays.
"It is rather unfortunate that some banks and some lawyers in
Barbados are hell-bent on frustrating Government's legitimate
attempts to collect the tax revenue that is due to the state by
their clients," the report quoted Mr. Sinckler as saying in a
statement issued by the Ministry of Finance. "First they said it
was unconstitutional, then they said they were not clear about how
the law would work, now they are claiming it is delaying
transactions because the BRA cannot give tax clearance
certificates fast enough."
Furthermore, notes Caribbean 360, he served notice that the law
would remained unchanged, declaring that the Government would not
be bullied into scrapping the move "because some people believe it
should not be".
"It is nothing short of amazing that these very actors have at
times in the past sought to defend and excuse the reasons why it
takes as long and costs client as much as it does to complete
their work in getting mortgages and other real estate transactions
done, but now are apparently determined to hold an entire country
to ransom because they do not wish to cooperate with Government to
halt the chronic hemorrhaging of tax revenue in Barbados,"
Sinckler contended, notes the report.
However, economist Jeremy Stephen has called on both sides to
urgently settle their differences on the matter, as he said it had
far reaching implications for the economy, the report relays.
"The effects would be on the general economy and probably
would begin to [affect] interest rates. Interest rates on savings
could also fall further and, as a result, also impact on liquidity
in the banking system if this is allowed to drag out," he told
online newspaper Barbados Today, according to the report.
The Finance Minister says he will meet with the bankers'
association.
As reported in the Troubled Company Reporter-Latin America on
March 7, 2017, S&P Global Ratings lowered its long-term foreign
and local currency sovereign ratings on Barbados to 'CCC+' from
'B-'. The outlook is negative. S&P also lowered the short-term
ratings to 'C' from 'B.' At the same time, S&P lowered its
transfer and convertibility assessment for Barbados to 'CCC+' from
'B-'.
=============
B E R M U D A
=============
BW GROUP: S&P Affirms Then Withdraws 'BB' CCR
---------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term corporate credit
rating on BW Group Ltd. The outlook is stable. S&P also affirmed
its 'axBBB-' ASEAN regional scale rating on the Bermuda-
incorporated maritime company. S&P then withdrew the ratings at
the company's request.
At the time of the withdrawal, the rating reflected BW Group's
stable cash flows backed by fixed-income charter contracts and
strong market positions, tempered by unpredictable conditions in
the global energy shipping business.
The company recently announced the sale of its fleet of very large
crude carriers (VLCC) to DHT Holdings Inc., in exchange for common
and preferred shares of DHT and cash. S&P views the sale as a
positive credit factor because it lowers BW Group's capital
expenditure requirements while the company retains access to the
VLCC fleet. While the cash proceeds from the transaction will
improve BW Group's financial leverage, it is unlikely to be enough
to meet S&P's upgrade trigger of debt-to-EBITDA ratio of 3.0x over
the next 12 months.
The stable outlook at the time of withdrawal reflected S&P's
expectation that BW Group will maintain a ratio of debt to EBITDA
f 3.0x-3.5x over the coming 12-18 months. S&P's estimate factors
in our softer outlook for the oil and gas shipping segments, in
which the group operates.
=============
B O L I V I A
=============
BOLIVIA: S&P Revises Outlook to Negative & Affirms 'BB' Rating
---------------------------------------------------------------
S&P Global Ratings revised its rating outlook on the Plurinational
State of Bolivia to negative from stable. At the same time, S&P
affirmed its 'BB' long-term foreign and local currency sovereign
credit ratings and S&P's 'B' short-term foreign and local currency
ratings. The transfer and convertibility assessment is unchanged
at 'BB'.
RATIONALE
The negative outlook reflects the at least one-in-three likelihood
that Bolivia's persistent current account deficits could
contribute to macroeconomic imbalances, weakening the country's
external profile beyond S&P's current expectations, over the next
two years. Low export prices for natural gas, along with only
modest success in boosting prospects for gas production, are
weighing on Bolivia's external position. Potentially prolonged
current account deficits, as well as continued high public-sector
spending and sustained rapid growth in domestic credit in recent
years, could erode the country's still-strong external position.
For the third consecutive year, the combination of low export
prices for natural gas and the government's policy of sustaining
public-sector investment is likely to contribute to a current
account deficit (CAD) approaching 5.3% of GDP in 2017, similar to
the 5.5% deficit in 2016. Both the trade and current account
deficits are likely to slightly narrow over the next two years,
with the CAD likely approaching 4%-5% of GDP, based on a modest
increase in gas export volumes and prices.
S&P projects that narrow net external debt (total external debt
less official foreign exchange reserves plus public- and
financial-sector liquid external assets) will evolve toward a
debtor position next year from -30% of current account receipts
(CAR) in 2017 and -73% in 2015. Bolivia could become a net
external debtor on this measure in the next two years, absent a
substantial reduction in its CAD. S&P expects Bolivia's gross
external financing needs (current account payments and public- and
private-sector external debt due by remaining maturity) relative
to CAR and usable foreign exchange reserves to rise toward 70%
from 59% last year.
Bolivia's stable exchange rate vis-a-vis the U.S. dollar since
2011 has anchored inflation expectations and contributed to
significantly lower dollarization in the country. However, steps
toward greater exchange rate flexibility would contain external
vulnerabilities if current account deficits persist and foreign
exchange reserves continue to decline.
The ratings on Bolivia still reflect its strong external balance
sheet, low debt burden, and favorable debt profile. They also
reflect Bolivia's evolving public institutions, low per capita
income (projected to exceed US$3,300 in 2017), and fiscal and
export dependence on commodities. Hydrocarbons (mainly natural
gas) and minerals account for the bulk of the country's exports,
contributing to volatility in its terms of trade (the prices of
exports compared with prices of imports). In addition, S&P's
ratings on Bolivia reflect its limited monetary flexibility.
Bolivia's GDP grew 4.3% in 2016 (or 2.7% in per capita terms),
despite lower earnings from energy exports. S&P expects GDP
growth to be around 3.8% in 2017 (or just above 2.2% in per capita
terms), sustained by public-sector spending, and hover around 3%-
3.5% in the following couple of years, given low commodity prices.
However, growth could be higher if oil prices rise beyond S&P's
current expectations.
S&P expects the general government deficit to be around 3% of GDP
in 2017 and remain relatively stable in the next three years.
Public-sector revenues may rise modestly because of a higher
contribution from the hydrocarbon sector, reflecting the lagged
impact of a modest recovery in oil prices, which are linked to the
export price for Bolivia's natural gas. S&P also expects public
spending to slightly increase in terms of GDP, reflecting the
government's economic development strategy that relies on public
investment. As a result, general government debt could increase
by over 3.4% of GDP, on average annually, during 2017-2020.
S&P projects net general government debt could approach 18% of GDP
in 2017, up from 16.5% in 2016, and continue climbing toward 25%
of GDP in 2020. Interest costs will likely rise to 2.6% of
general government revenue in 2017 and exceed 3% in the next three
years, reflecting increasing debt. S&P expects net public-sector
debt to continue increasing in the next three years to around 44%
in 2020.
The consolidated public-sector deficit is likely to be around 6.5%
of GDP this year. The government is likely to fund about 70% of
the overall public-sector deficit by drawing upon its ample fiscal
reserves and other domestic sources (internal resources, local
debt issuances, and new credit from the central bank) and the rest
from borrowing abroad, including from official and commercial
lenders.
Success in boosting the country's proven reserves of natural gas
would, at least partially, compensate for a potentially prolonged
fall in commodity prices, as well as facilitate the government's
strategy for industrialization. Gas output declined 4% in 2016,
after falling 1% in 2015. The government projects that gas output
will rise 2% in 2017. From 2019, gas output is projected to
decline more substantially, absent new output from recent
exploration investments. More than three-quarters is sold to
Argentina and Brazil, while the rest is consumed domestically.
Uncertainty about future gas production could affect upcoming
negotiations to renew long-term sales contracts with Brazil (due
in 2019) and Argentina (due in 2027).
Investment in the hydrocarbon sector amounted to $725 million in
2016, down from $1.15 billion in 2015. The government is
projecting about $5.2 billion in investment in exploration and
exploitation in the sector during 2017-2020.
Despite recent efforts to diversify the economy, it is still
dependent on the hydrocarbon sector. Commodity exports account
for more than 75% of total exports, while natural gas was around
30% of all exports in 2016, down from more than 50% in 2013. On
average, about 47% of public-sector revenues (in the form of
royalties and tax revenues) came from the hydrocarbon sector
during 2010-2014, diminishing to 32% in 2016.
Bolivia's public institutions are still developing and susceptible
to politicization, and economic policymaking is highly
centralized. President Evo Morales will likely run for a fourth
term in 2019. Despite losing a referendum in 2016 to change the
constitution to allow Morales to run for a third consecutive
mandate, it is likely that the president will seek approval to
pursue another mandate. The governing Movimiento al Socialismo
(MAS) political party holds a more than two-thirds majority in
Congress and has a widespread presence throughout the country.
There is no clear successor to Morales within his political
movement, and no one within the MAS has similar political
credentials, while the opposition remains divided, limiting its
chances in the next presidential elections.
Unlike most of its counterparts, the Bolivian central bank lends
to public-sector enterprises (mainly to YPFB, the oil and gas
company) and manages funds that are available for investment in
various projects. All such funds, as well as dollars kept in a
bank deposit guarantee fund, are distinct from the central bank's
foreign exchange reserves. Total central bank lending to public
enterprises and trust funds reached just less than 12% of GDP in
2016.
Inflation is likely to be 4.5% in 2017, similar to 2016, and hover
around 4.5% on average over the coming three to four years.
Inflation will be anchored by Bolivia's stable exchange rate;
however, S&P believes that it remains vulnerable to supply shocks.
The level of dollarization continues to fall from previously high
levels. Deposits denominated in local currency increased to
around 85% of total deposits by the end of 2016 from 6% in 2002,
and loans in local currency increased from 53% to 97% during the
same period.
The reported capital adequacy ratio of the banks exceeds 12%, and
deposits fully fund the loan book. The financial system is likely
to remain a net external creditor in the coming three years.
Total bank lending to the private sector grew around 17% in 2016
and may grow at a slower pace this year. Total domestic credit to
the private and the nonfinancial public sector grew rapidly to 58%
of GDP in 2016 from 39% in 2012, and S&P expects it to reach 66%
of GDP in 2019. While nonperforming loans are around 1.5% of
total loans and are fully covered by loan loss provisions, rapid
credit growth raises the risk of potentially higher nonperforming
loans in the event of lower-than-expected growth. The long-term
health of the financial system depends in large part on the
government's pragmatism in prudently encouraging lending to
targeted sectors, avoiding excessive credit growth and risk-
taking, and maintaining bank profitability.
OUTLOOK
The negative outlook reflects the risk that Bolivia's external
position could deteriorate beyond S&P's current expectations as a
result of persistently large current account deficits over the
next two years. Growing economic imbalances, including potential
risks to the financial system emanating from the rapid increase in
domestic credit in recent years, could raise the country's
vulnerability to an adverse external shock. A weaker external or
monetary profile could result in a downgrade.
Conversely, timely adjustment in fiscal and monetary policies
could contain further deterioration in Bolivia's external profile
and its economic resilience. Similarly, better-than-expected
export performance, especially through improved prospects for
long-term hydrocarbon output and exports, could sustain favorable
GDP growth, contain the CAD, and reduce macroeconomic imbalances.
S&P could revise the outlook to stable as a result.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee agreed that all key rating factors were unchanged.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
actors is described in the methodology used in this rating action.
RATINGS LIST
Ratings Affirmed; Outlook Action
To From
Bolivia (Plurinational State of)
Sovereign Credit Rating BB/Neg./B BB/Stable/B
Ratings Affirmed
Bolivia (Plurinational State of)
Senior Unsecured BB
Transfer & Convertibility Assessment BB
===========
B R A Z I L
===========
ODEBRECHT OLEO: Services Unit Reaches Deal on Debt Restructuring
----------------------------------------------------------------
The Financial Times reports that Odebrecht Oleo e Gas, the oil-
industry services subsidiary of the embattled Brazilian
conglomerate, said that it reached a restructuring deal with a
pool of creditors that hold about $5 billion in debt.
The holding company is in the midst of a corruption scandal that
has sent shock waves across the Americas, according to The
Financial Times.
The report notes that the company said in a statement: "The terms
of the restructuring were consensually agreed with a group of
creditors representing more than 60 per cent of the total amount
of the restructured claims."
That includes $3 billion in debt notes and $2 billion in corporate
creditors, such as "some of the largest Brazilian banks and large
international fixed-income investment funds," added Odebrecht Oleo
e Gas, the report relays.
As reported in the Troubled Company Reporter-Latin America on
July 26, 2016, S&P Global Ratings affirmed its 'D' global scale
corporate credit ratings on Odebrecht Oleo e Gas S.A. At the same
time, S&P affirmed its issue-level rating on Odebrecht Oil & Gas
Finance Limited at 'D'. S&P is revising its recovery ratings on
the senior perpetual notes to '5' from '3', indicating recovery
prospects between 10% and 30%, which are below S&P's previous
expectations.
==========================
C A Y M A N I S L A N D S
==========================
AKYLAS LIMITED: Members' Final Meeting Set for June 22
------------------------------------------------------
The members of Akylas Limited will hold their final meeting on
June 22, 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, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
ALKEON GLOBAL: Members' Final Meeting Set for June 22
-----------------------------------------------------
The members of Alkeon Global Alpha Ltd. will hold their final
meeting on June 22, 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, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
AMAANAH MASTER: Contributories to Hold Final Meeting on May 31
--------------------------------------------------------------
The contributories of Amaanah Master Fund will hold their final
meeting on May 31, 2017, at 9:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Griffin
c/o Kelsey Hedgecock
FTI Consulting (Cayman) Ltd.
Suite 3212, 53 Market Street
Camana Bay
P.O. Box 30613 Grand Cayman KY1 - 1203
Cayman Islands
Telephone: +1 (345) 743 6830
CVI GVF 26: Contributories to Hold Final Meeting on May 31
----------------------------------------------------------
The contributories of CVI GVF Holdings 26 Limited will hold their
final meeting on May 31, 2017, at 11:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
David Griffin
c/o Kelsey Hedgecock
FTI Consulting (Cayman) Ltd.
Suite 3212, 53 Market Street
Camana Bay
P.O. Box 30613 Grand Cayman KY1 - 1203
Cayman Islands
Telephone: +1 (345) 743 6830
CVI GVF 28: Contributories to Hold Final Meeting on May 31
----------------------------------------------------------
The contributories of CVI GVF Holdings 28 Limited will hold their
final meeting on May 31, 2017, at 12:00 noon, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
David Griffin
c/o Kelsey Hedgecock
FTI Consulting (Cayman) Ltd.
Suite 3212, 53 Market Street
Camana Bay
P.O. Box 30613 Grand Cayman KY1 - 1203
Cayman Islands
Telephone: +1 (345) 743 6830
DGAM UNIQUE: Contributories to Hold Final Meeting on May 31
-----------------------------------------------------------
The contributories of DGAM Unique SPV will hold their final
meeting on May 31, 2017, at 1:00 p.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Griffin
c/o Kelsey Hedgecock
FTI Consulting (Cayman) Ltd.
Suite 3212, 53 Market Street
Camana Bay
P.O. Box 30613 Grand Cayman KY1 - 1203
Cayman Islands
Telephone: +1 (345) 743 6830
DR II HOLDINGS: Contributories to Hold Final Meeting on May 31
--------------------------------------------------------------
The contributories of DR II Holdings will hold their final meeting
on May 31, 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:
David Griffin
c/o Kelsey Hedgecock
FTI Consulting (Cayman) Ltd.
Suite 3212, 53 Market Street
Camana Bay
P.O. Box 30613 Grand Cayman KY1 - 1203
Cayman Islands
Telephone: +1 (345) 743 6830
SWISS-ASIA: Shareholder Receives Wind-Up Report
-----------------------------------------------
The shareholder of Swiss-Asia Growth Fund, on May 9, 2017,
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Olivier Pascal Mivelaz
House 104, Chestnut Drive
Singapore 679325
Telephone + 011 65 6887 5790
Facsimile: + 011 65 6887 5767
TIMES FILMS: Shareholders' Final Meeting Set for June 21
--------------------------------------------------------
The shareholders of Times Films Limited will hold their final
meeting on June 21, 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:
Ge, Hui
c/o Arun Abraham or Michael Crothers
P.O. Box 61 Grand Cayman KY1-1102
Harbour Centre, George Town
Cayman Islands
Telephone: 345-814-2873
Facsimile: 345-949-8635
WORLDWIDE AGGRESSIVE: Shareholder to Hear Wind-Up Report on May 30
------------------------------------------------------------------
The shareholder of Worldwide Aggressive Growth Fund will hear on
May 30, 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:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REP: Merchants Says There's No One in Haiti to Talk To
-----------------------------------------------------------------
Dominican Today reports that two deputies from border towns
denounced that big Haitian monopolies have the most to gain from
the ban on the entry of domestic products to that country and
asked the Dominican government to deal with the problem, even if
"there's no one in Haiti to talk to."
Opposition party (PRM) lawmaker Israel Terrero, and ruling party
(PLD) deputy Francisco Bautista agreed that the measure supported
by Haitian merchants harms consumers on both sides of the border,
according to Dominican Today.
Terrero (Dajabon) said particular interests in Haiti benefit from
the ban on 21 products of Dominican origin, the report relays.
"Obviously this is due to a decision of particular interests that
are taking advantage of preventing Haitians from entering these
types of goods from the Dominican Republic," the report quoted Mr.
Dajabon as saying.
Eggs, farm products and flours figure among the Dominican products
prevented from entering Haiti, the report relays.
For his part, Bautista (Elias Pi§a-west), said the ban on
Dominican products is a measure implemented by Haiti's most
reactionary commercial sectors, the report discloses.
He noted that only rich Haitians continue to receive Dominican
products by plane and by boat, "that is, Dominican products
continue to arrive, for which the rich of that nation lack
nothing," the report notes.
"The Haitian authorities have a problem because they don't comply
with their international commitments. Right now there's no one in
Haiti to talk to, because the mixed commissions do-not work and I
propose that it be done at the highest level of governments to
solve the problem," Mr. Bautista said, the report adds.
As reported in the Troubled Company Reporter-Latin America on
May 1, 2017, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable. The transfer and convertibility (T&C)
assessment is unchanged at 'BB+'.
DOMINICAN REPUBLIC: Firms Push Approval of Money Laundering Law
---------------------------------------------------------------
Dominican Today reports that the National Business Council (CONEP)
warned that failure to approve the Money Laundering and Anti-
Terrorism Financing Law would lead to Dominican Republic's
disqualification by the Financial Action Task Force (FATF) which
in turn would negatively impact the country's business climate.
CONEP President Pedro Brache cautioned that the country would face
the risk of losing all accounts of correspondents, thus affecting
foreign investment, according to Dominican Today.
During a visit to the Chamber of Deputies Justice Commission, the
business leader stressed the business sector's interest in getting
the legislation passed, so that the country ensures the FATF's
positive qualification, the report notes.
"We came to confirm that a bill will pass and meets the FATF's
expectations," the report quoted Mr. Brache as saying.
Mr. Brache said the FATF's role is to oversee the majority of
financial transactions globally and that the Dominican Republic's
main interest is to belong to the Gafilat Group, which heads
operations in 36 member countries and 8 regional groups in Latin
America, the report adds.
As reported in the Troubled Company Reporter-Latin America on
May 1, 2017, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable. The transfer and convertibility (T&C)
assessment is unchanged at 'BB+'.
===========
M E X I C O
===========
MAXCOM TELECOMUNICACIONES: S&P Raises CCR to 'CCC+'
---------------------------------------------------
S&P Global Ratings raised its corporate credit rating on Maxcom
Telecomunicaciones S.A.B. de C.V. to 'CCC+' from 'SD'. The
outlook is stable. At the same time, S&P raised its issue-level
ratings on the remaining outstanding amount of the company's
senior secured step-up notes due 2020 to 'CCC+' from 'D'. S&P
affirmed the '4' recovery rating on the notes, indicating its
expectation for average (30%-50%) recovery in the event of a
payment default.
The upgrade reflects S&P's reassessment of its corporate credit
rating after the company repurchased $13.1 million of its
outstanding senior secured step-up notes due 2020 at substantially
below par. While the repurchase somewhat improved Maxcom's debt
to EBITDA ratio, it will remain above 7.0x in 2017 and will weaken
the company's cash position. However, the latter will still be
sufficient to cover short-term obligations.
The 'CCC+' rating reflects Maxcom's weak credit metrics, low
EBITDA margins, and the unsustainability of its business model due
to high competitive pressures from larger and better capitalized
telecom and cable companies. The latter prompted the company's
announcement that it will wind down its residential business to
focus on the commercial business. While this will take a toll on
revenue and EBITDA generation for the following two years, it will
allow Maxcom more efficient use of resources, focusing its capital
expenditures (capex) on increasing its participation in the
commercial segment.
* Investors Concerned by Challenges Facing Mexican Corporates
-------------------------------------------------------------
Investors are focused on the effects of lackluster growth, higher
inflation, rising interest rates and uncertainty related to U.S.
trade policy on Mexican corporates, according to a new Fitch
Ratings report.
During a recent trip to Mexico, Fitch met with buy-side investors
and corporate treasuries, who expressed interest in a variety of
issues including:
-- What is causing increased leverage and is that concerning?
-- What are the impacts of currency depreciation?
-- Does U.S. trade policy factor into ratings?
-- How will slow growth and NAFTA risk affect real estate?
-- Will increased regulation, technology advances and changing
consumer habits affect telecom and media?
-- What are the linkages between PEMEX and CFE and how may they
evolve?
The full report titled 'What Investors Want to Know: Mexican
Corporates' is available at www.fitchratings.com.
======================
P U E R T O R I C O
======================
SPANISH BROADCASTING: Incurs $10.8 Million Net Loss for Q1
----------------------------------------------------------
Spanish Broadcasting System, Inc. filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $10.83 million on $31.35 million of net revenue for
the three months ended March 31, 2017, compared to a net loss of
$11.31 million on $31.61 million of net revenue for the three
months ended March 31, 2016.
As of March 31, 2017, Spanish Broadcasting had $451.1 million in
total assets, $576.0 million in total liabilities and a total
stockholders' deficit of $124.9 million.
"Our first quarter results mark a good start to the year as we
continued to grow our total audience shares while also delivering
improved operating results," said Raul Alarcon, Chairman and CEO.
"Our strategy remains centered on maximizing the reach of our
multi-media assets, including our radio stations which continue to
hold leadership positions across the nation's largest Hispanic
markets. We have also further advanced our experiential platform
and our mobile entertainment presence through our unique LaMusica
app. Looking ahead, we will continue to operate with a focus on
innovation as we look to capitalize on our multi-media
capabilities and connect advertisers and brands with highly
engaged Latino audiences across all media platforms."
Consolidated Adjusted OIBDA, a non-GAAP measure, totaled $5.9
million compared to $5.4 million for the same prior year period,
representing an increase of $0.5 million or 9%. The Company's
radio segment Adjusted OIBDA decreased $0.1 million or 1%,
primarily due to a decrease in operating expenses of $0.2 million
and an decrease in net revenues of $0.3 million. Radio station
operating expenses decreased mainly due to decreases compensation
and benefits, commissions, facilities expenses and professional
fees offset by increases in digital programming costs related to
the LaMusica App, affiliate station compensation and special
events expenses. The Company's television segment Adjusted OIBDA
improved $0.4 million or 37%, due to the increase in net revenues
of less than $0.1 million and a decrease in operating expenses of
$0.3 million. Television station operating expenses decreased
primarily due to decreases in professional fees, compensation and
benefits, and barter expenses offset by increases in originally
produced content costs and reduced production tax credits in
Puerto Rico.
The Company's corporate expenses, excluding non-cash stock-based
compensation, decreased $0.3 million or 10%, mostly due to a
decrease in professional fees offset by an increase in
compensation and benefits.
Operating income totaled $3.8 million compared to $3.8 million for
the same prior year period, representing an increase of less than
$0.1 million or 2%. This increase in operating income was
primarily due to decreases in operating and corporate expenses and
offset by a decrease in net revenues and an increase in
recapitalization costs of $0.8 million related to professional
fees incurred by the Company in evaluating all options available
towards executing a comprehensive recapitalization plan.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/WkP22y
About Spanish Broadcasting
Spanish Broadcasting System, Inc. (OTCMKTS:SBSAA) --
http://www.spanishbroadcasting.com/-- is one of the largest
owners and operators of radio stations in the United States. SBS
owns and operates 17 radio stations located in the top U.S.
Hispanic markets of New York, Los Angeles, Miami, Chicago, San
Francisco and Puerto Rico, airing the Spanish Tropical, Regional
Mexican, Spanish Adult Contemporary, Top 40 and Latin Rhythmic
format genres. SBS also operates AIRE Radio Networks, a national
radio platform which creates, distributes and markets leading
Spanish-language radio programming to over 250 affiliated stations
reaching 93% of the U.S. Hispanic audience. SBS also owns MegaTV,
a television operation with over-the-air, cable and satellite
distribution and affiliates throughout the U.S. and Puerto Rico.
SBS also produces live concerts and events and owns multiple
bilingual websites, including http://www.LaMusica.com/,an online
destination and mobile app providing content related to Latin
music, entertainment, news and culture.
Spanish Broadcasting reported a net loss of $16.34 million for the
year ended Dec. 31, 2016, compared with a net loss of $26.95
million for the year ended Dec. 31, 2015.
Crowe Horwath LLP, in Fort Lauderdale, Florida, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2016, stating that the 12.5% Senior
Secured Notes had a maturity date of April 15, 2017. Cash from
operations or the sale of assets was not sufficient to repay the
notes and other short term obligations when they became due, which
resulted in significant liquidity requirements on the Company that
raise substantial doubt about its ability to continue as a going
concern.
* * *
As reported by the TCR on May 25, 2017, S&P Global Ratings
withdrew its 'D' corporate credit rating and issue-level ratings
on U.S.-based Spanish-language broadcaster Spanish Broadcasting
System. "We withdrew the ratings because we were unlikely to
raise them from 'D', based on SBS' ongoing plans to restructure
its debt," said S&P Global Ratings' credit analyst Scott Zari.
S&P had downgraded SBS to 'D' on April 21, 2017, following the
company's announcement that it didn't repay its $275 million 12.5%
senior secured notes that were due April 15, 2017.
In April 2017, Moody's Investors Service downgraded SBS's
corporate family rating to 'Ca' from 'Caa2'. SBS's 'Ca' corporate
family rating reflects an elevated expected loss rate following
the recently announced default under the company's 12.5% senior
secured notes due April 2017.
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V E N E Z U E L A
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* VENEZUELA: Dominicans Want to Leave, Properties Hold Them Back
----------------------------------------------------------------
Dominican Today reports that more than 500 Dominicans living in
Venezuela want to return to their country, as the crisis facing
the South American country rages.
National Council for Dominican Communities Abroad (Condex) vice
President Ramiro Espino, said most of those Dominicans are unable
to leave Venezuela because they have real properties and if they
sell it would be at a much a lower price than what they paid,
according to Dominican Today.
The official added that the Government is looking for a solution
to resolve that problem in the next few days, the report notes.
Mr. Espino spoke at the launch of the newsletter "El Informativo
del Condex," which seeks to keep Dominicans abroad abreast of
local events.
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.
=================
X X X X X X X X X
=================
* BOND PRICING: For the Week From May 22 to May 26, 2017
--------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
BA-CA Finance Cayman Lt 0.518 62.07 KY EUR
CSN Islands XII Corp 7 68 BR USD
CSN Islands XII Corp 7 67.75 BR USD
Decimo Primer Fideicomi 4.54 52.63 10/25/2041 PA USD
Decimo Primer Fideicomi 6 63.5 10/25/2041 PA USD
Dolomite Capital Ltd 13.26 67.2 12/20/2019 CN ZAR
Empresa de Telecomunica 7 73.14 1/17/2023 CO COP
Empresa de Telecomunica 7 73.14 1/17/2023 CO COP
ESFG International Ltd 5.75 0.66 KY EUR
General Shopping Financ 10 72.5 KY USD
General Shopping Financ 10 71.7 KY USD
Global A&T Electronics 10 74 2/1/2019 SG USD
Global A&T Electronics 10 74.5 2/1/2019 SG USD
Global A&T Electronics 10 65.5 2/1/2019 SG USD
Global A&T Electronics 10 65 2/1/2019 SG USD
Gol Finance 8.75 63 BR USD
Gol Finance 8.75 63.88 BR USD
Gol Linhas Aereas SA 10.75 34.63 2/12/2023 BR USD
Gol Linhas Aereas SA 10.75 34.63 2/12/2023 BR USD
Inversora Electrica de 6.5 55 9/26/2017 AR USD
Inversora Electrica de 6.5 55 9/26/2017 AR USD
MIE Holdings Corp 7.5 75.16 4/25/2019 HK USD
MIE Holdings Corp 7.5 75.26 4/25/2019 HK USD
NB Finance Ltd/Cayman I 3.88 58.01 2/7/2035 KY EUR
Newland International P 9.5 19.88 7/3/2017 PA USD
Newland International P 9.5 19.88 7/3/2017 PA USD
Noble Holding Internati 5.25 72.98 3/15/2042 KY USD
Ocean Rig UDW Inc 7.25 39 4/1/2019 CY USD
Ocean Rig UDW Inc 7.25 38 4/1/2019 CY USD
Odebrecht Drilling Norb 6.35 48.5 6/30/2021 KY USD
Odebrecht Drilling Norb 6.35 47.25 6/30/2021 KY USD
Odebrecht Finance Ltd 7.5 49 KY USD
Odebrecht Finance Ltd 4.3 48.29 4/25/2025 KY USD
Odebrecht Finance Ltd 7.12 48.2 6/26/2042 KY USD
Odebrecht Finance Ltd 5.25 46.15 6/27/2029 KY USD
Odebrecht Finance Ltd 7 57.02 4/21/2020 KY USD
Odebrecht Finance Ltd 5.12 53.51 6/26/2022 KY USD
Odebrecht Finance Ltd 8.25 70.88 4/25/2018 KY BRL
Odebrecht Finance Ltd 6 51.47 4/5/2023 KY USD
Odebrecht Finance Ltd 5.25 45.92 6/27/2029 KY USD
Odebrecht Finance Ltd 7.1 47.82 6/26/2042 KY USD
Odebrecht Finance Ltd 7.5 49.25 KY USD
Odebrecht Finance Ltd 4.3 48.39 4/25/2025 KY USD
Odebrecht Finance Ltd 6 51.77 4/5/2023 KY USD
Odebrecht Finance Ltd 8.2 70.88 4/25/2018 KY BRL
Odebrecht Finance Ltd 7 56.85 4/21/2020 KY USD
Odebrecht Finance Ltd 5.1 52.99 6/26/2022 KY USD
Odebrecht Offshore Dril 6.6 39.64 10/1/2022 KY USD
Odebrecht Offshore Dril 6.7 36.44 10/1/2022 KY USD
Odebrecht Offshore Dril 6.6 38.79 10/1/2022 KY USD
Odebrecht Offshore Dril 6.7 38.75 10/1/2022 KY USD
Petroleos de Venezuela 12.75 67.19 2/17/2022 VE USD
Petroleos de Venezuela 9 58.28 11/17/2021 VE USD
Petroleos de Venezuela 6 40.32 5/16/2024 VE USD
Petroleos de Venezuela 9.75 50.15 5/17/2035 VE USD
Petroleos de Venezuela 6 38.22 11/15/2026 VE USD
Petroleos de Venezuela 5.37 37.39 4/12/2027 VE USD
Petroleos de Venezuela 5.5 37.1 4/12/2037 VE USD
Petroleos de Venezuela 6 41.25 10/28/2022 VE USD
Petroleos de Venezuela 6 40.01 5/16/2024 VE USD
Petroleos de Venezuela 9 58.11 11/17/2021 VE USD
Petroleos de Venezuela 6 38.13 11/15/2026 VE USD
Petroleos de Venezuela 12.75 67.2 2/17/2022 VE USD
Petroleos de Venezuela 9.75 49.94 5/17/2035 VE USD
Polarcus Ltd 5.6 60 3/30/2022 AE USD
Siem Offshore Inc 5.8 49.75 1/30/2018 NO NOK
Siem Offshore Inc 5.59 50.25 3/28/2019 NO NOK
STB Finance Cayman Ltd 2.04 58.35 KY JPY
Sylph Ltd 2.36 50.93 9/25/2036 KY USD
Uruguay Notas del Tesor 5.25 68.02 12/29/2021 UY UYU
US Capital Funding IV L 1.25 51.35 12/1/2039 KY USD
US Capital Funding IV L 1.25 51.35 12/1/2039 KY USD
USJ Acucar e Alcool SA 9.87 67.5 11/9/2019 BR USD
USJ Acucar e Alcool SA 9.87 65.75 11/9/2019 BR USD
Venezuela Government In 9.25 48.75 5/7/2028 VE USD
Venezuela Government In 13.63 82.58 8/15/2018 VE USD
Venezuela Government In 9 51.75 5/7/2023 VE USD
Venezuela Government In 9.37 49 1/13/2034 VE USD
Venezuela Government In 7 71.88 12/1/2018 VE USD
Venezuela Government In 9.25 52 9/15/2027 VE USD
Venezuela Government In 7.65 46.38 4/21/2025 VE USD
Venezuela Government In 13.63 82.58 8/15/2018 VE USD
Venezuela Government In 7.75 61.75 10/13/2019 VE USD
Venezuela Government In 11.95 58.13 8/5/2031 VE USD
Venezuela Government In 6 53.75 12/9/2020 VE USD
Venezuela Government In 12.75 67 8/23/2022 VE USD
Venezuela Government In 7 44 3/31/2038 VE USD
Venezuela Government In 6.5 36.53 12/29/2036 VE USD
Venezuela Government In 8.25 47.75 10/13/2024 VE USD
Venezuela Government In 11.75 57.75 10/21/2026 VE USD
Venezuela Government TI 5.25 69.59 3/21/2019 VE USD
***********
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 * * *