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/raid1/www/Hosts/bankrupt/TCRLA_Public/170531.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 Wednesday, May 31, 2017, Vol. 18, No. 107 Headlines B R A Z I L BRAZIL: Pres. Will Remain in Office Despite Resignation Demands C A Y M A N I S L A N D S CRYSTAL II: Creditors' Proofs of Debt Due June 22 FR ENERGY: Commences Liquidation Proceedings GOOD HILL: Placed Under Voluntary Wind-Up LONGPINE INVESTMENT: Commences Liquidation Proceedings MARINER PACIFIC: Creditors' Proofs of Debt Due June 12 PILLERTON SERVICES: Commences Liquidation Proceedings PLATO INVESTMENTS: Creditors' Proofs of Debt Due June 30 SYNERGY INVESTMENT: Grand Court Enters Wind-Up Order TONGJITANG CHINESE: Creditors' Proofs of Debt Due June 12 WOOSTER OFFSHORE: Creditors' Proofs of Debt Due June 12 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Rise in US Deportees Would Slump GDP H A I T I HAITI: Officials' Chaos Looks to 'Vanish' Border Market M E X I C O * MEXICO: Registers Surprise April Trade Surplus P U E R T O R I C O AMERICAN TOOLS: Unsecureds Creditors to be Paid 3% Over 5 Years X X X X X X X X X CARIBBEAN: Climate Change & Flooding Threaten People on Islands - - - - - =========== B R A Z I L =========== BRAZIL: Pres. Will Remain in Office Despite Resignation Demands --------------------------------------------------------------- Samantha Pearson and Paulo Trevisani at The Wall Street Journal report that Brazilian President Michel Temer is banking on the country's tepid economic recovery to help him survive a deep political crisis that has engulfed his government since he was accused of accepting bribes in the nation's vast corruption scandal. Speaking to a small group of foreign reporters, the unpopular leader said he expected data to show Brazil is finally emerging from a deep recession and vowed to push ahead with pension and labor overhauls to guarantee future growth, according to the WSJ. "I am fully able to continue promoting the reforms, which means I have the ability to govern," Mr. Temer told reporters at the government-organized briefing, the report notes. "Brazil will not stop," he added. His comments come after Brazil's Supreme Court released testimony this month from executives of meatpacking giant JBS saying they bribed 1,829 politicians, including Mr. Temer and his two immediate predecessors, Dilma Rousseff and Luiz Inacio Lula da Silva, the report relays. Mr. Temer has denied wrongdoing and repeatedly vowed to hang on to power, the report notes. Ms. Rousseff and Mr. da Silva have also denied wrongdoing. "It's natural that looking at the news over recent days, investors look at Brazil and wonder what will happen next," said Mr. Temer, notes the report. "But now we are coming out of the recession," he added. Earlier, Finance Minister Henrique Meirelles said data will likely show Brazil grew by 0.7%-0.8% in the first quarter, compared with the previous three months. The figures would signal the end of what has been Brazil's deepest and longest recession on record, the report notes. "His strategy is to survive one day at a time," said Christopher Garman at political risk consultancy Eurasia Group. "He will try to win small battles in Congress to create an air of governability," he said. Eurasia puts the odds of Mr. Temer being ousted at 70%. However, Mr. Temer, in his comments to reporters, remained defiant about his ability to serve out the rest of his term until presidential elections in 2018, the report relays. Mr. Temer called on Brazil's top electoral court, the TSE, for a "quick solution" in its long-running case over whether the 2014 campaign that put him and Ms. Rousseff in power was funded illegally, the report notes. While the case was opened before the recent corruption allegations against Mr. Temer, analysts believe that the TSE may now move quickly to unseat the president in light of growing calls for him to resign, the report relays. Mr. Temer declined to comment on whether he would appeal any unfavorable decision by the court. Instead, Mr. Temer highlighted his government's ability to push economic change through Congress, adding that the Senate would likely soon approve labor overhauls, the report discloses. Analysts say that if the government manages to push fiscal reforms through Congress they will likely be watered down in the process, particularly one involving unpopular changes to Brazil's generous pension system, the report relays. "Pension reform has become much more difficult," said Paulo Nepomuceno, an economist at foreign-exchange brokerage firm Coinvalores, notes the report. "The administration's support in Congress is fragmented now," he added. As reported in the Troubled Company Reporter-Latin America on May 24, 2017, S&P Global Ratings placed its 'BB' long-term foreign and local currency sovereign credit ratings on the Federative Republic of Brazil on CreditWatch with negative implications. S&P also affirmed the short-term foreign and local currency ratings at 'B'. The transfer and convertibility assessment is unchanged at 'BBB-'. In addition, S&P placed the 'brAA-' national scale rating on CreditWatch with negative implications. ========================== C A Y M A N I S L A N D S ========================== CRYSTAL II: Creditors' Proofs of Debt Due June 22 ------------------------------------------------- The creditors of Crystal II Limited are required to file their proofs of debt by June 22, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 5, 2017. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands FR ENERGY: Commences Liquidation Proceedings -------------------------------------------- The shareholders of FR Energy Growth Capital Investor GP Ltd., on March 24, 2017, passed a resolution to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Daren Schneider c/o Matt Bernardo Telephone: +1 (345)914-4268 GOOD HILL: Placed Under Voluntary Wind-Up ----------------------------------------- The sole shareholder of Good Hill SPV Ltd., on May 2, 2017, passed a resolution to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Good Hill Partners LP Ogier c/o Daniella Skotnicki 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 LONGPINE INVESTMENT: Commences Liquidation Proceedings ------------------------------------------------------ The shareholders of Longpine Investment Corp., on May 5, 2017, passed a resolution to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Longpine Investment Corp. Jeronymo Coimbra Bueno Filho Rua Leoncio Correa, 161, Leblon Rio De Janeiro, RJ 22450120 Brazil MARINER PACIFIC: Creditors' Proofs of Debt Due June 12 ------------------------------------------------------ The creditors of Mariner Pacific, Ltd. are required to file their proofs of debt by June 12, 2017, to be included in the company's dividend distribution. The company's shareholder will hear on June 13, 2017, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on May 4, 2017. The company's liquidator is: Stuarts Walker Hersant Humphries P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949 3344 Facsimile: (345) 949 2888 PILLERTON SERVICES: Commences Liquidation Proceedings ----------------------------------------------------- The shareholders of Pillerton Services Ltd., on May 1, 2017, passed a resolution to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Pillerton Services Ltd. c/o Ricardo Araujo Ribeiral Rua Cinco Nr 1041 Cidade Jardim cep 13500-040 Rio Claro - Sao Paulo Brazil PLATO INVESTMENTS: Creditors' Proofs of Debt Due June 30 -------------------------------------------------------- The creditors of Plato Investments Limited are required to file their proofs of debt by June 30, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 4, 2017. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Felisiana Ebanks 136 Shedden Road, One Capital Place, 3rd Floor P.O. Box 487 George Town Grand Cayman KY1-1106 Cayman Islands Telephone: +1 (345) 914-5424 SYNERGY INVESTMENT: Grand Court Enters Wind-Up Order ---------------------------------------------------- The Grand Court of Cayman Islands, on April 26, 2017, entered an order to wind up the operations of Synergy Investment International Company Limited. The company's liquidators are: David Griffin FTI Consulting (Cayman) Limited Suite 3212, 53 Market Street Camana Bay P.O. Box 30613, Grand Cayman KY1-1203 Cayman Islands; and Vincent Fok FTI Consulting (Hong Kong) Limited The Center, Level 22 99 Queen's Road Central Central Hong Kong TONGJITANG CHINESE: Creditors' Proofs of Debt Due June 12 --------------------------------------------------------- The creditors of Tongjitang Chinese Medicines are required to file their proofs of debt by June 12, 2017, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 5, 2017. The company's liquidator is: Richard Fear c/o Kevin Butler P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7374 Facsimile: (345) 945 3902 WOOSTER OFFSHORE: Creditors' Proofs of Debt Due June 12 ------------------------------------------------------- The creditors of Wooster Offshore Fund, Ltd. are required to file their proofs of debt by June 12, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 4, 2017. The company's liquidator is: Richard Fear c/o Kevin Butler P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7374 Facsimile: (345) 945 3902 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Rise in US Deportees Would Slump GDP -------------------------------------------------------- Dominican Today reports that the International Monetary Fund (IMF) recently forecast that if the US accelerates the deportation of people, it could depress the GDP, including Dominican Republic's. "An intensification of recent trends in deportations could depress per capita GDP in Central America, Panama, the Dominican Republic and, to a lesser extent, Mexico," says the latest IMF report titled 'Economic Perspectives-The Americas: History Of two settings,' according to Dominican Today. The impact is not only linked to the possibility of receiving fewer remittances from Dominicans living in the US, but also whether the labor market can absorb the workers who return, the report notes. The IMF also stressed the wage gap between the countries of origin of people who may be deported and the US, as well as the deteriorated confidence and country risk, the report relays. During the first 100 days of Donald Trump's presidency, the US arrested more than 41,000 undocumented immigrants, a 37.6 percent jump in just one year, notes the report. The IMF adds that a further tightening of US immigration policy would coincide with the moderation in Dominican GDP growth, after several years with rates as high as 7%, the report notes. While the Dominican Republic, with 5.3% projected growth this year, will continue to lead the region's economic growth, increased investment in sectors such as manufacturing and construction have slumped, which has been the factor that has led to moderation in the economy's performance, 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+'. ========= H A I T I ========= HAITI: Officials' Chaos Looks to 'Vanish' Border Market ------------------------------------------------------- Dominican Today reports that Haiti customs and immigration inspectors again barred the entry of several national farm and other products, without explaining the measure. Moreover, Dominican merchants said the measures by Haitian authorities caused sales to fall by more than 50 percent, according to Dominican Today. Giovanni Escotto, who heads the association of freight haulers, complained that Haitians cause difficulties to trade between both countries, the report notes. "They (the Haitians) do what they want with the Dominicans," the report quoted Mr. Escotto as saying. Moreover, Dajabon Merchants Association president Abigail Bueno said the attitude by Haitian immigration and customs inspectors hurt businesses in both nations, the report notes. "They're apparently looking to create chaos so that the border market disappears," he added, says the report. Eggs, frozen and fresh chicken, pastas, sausages and green bananas figure among the products barred from entering the neighboring nation by land, the report notes. =========== M E X I C O =========== * MEXICO: Registers Surprise April Trade Surplus ------------------------------------------------ Anthony Harrup at The Wall Street Journal reports that Mexico chalked up an unexpected $617 million trade surplus in April as higher oil and factory exports combined with a drop in imports of nonpetroleum goods. Exports last month rose 3.6% to $31.48 billion from the same period a year earlier, while imports fell 5% to $30.87 billion, the National Statistics Institute said, according to the WSJ. The surplus brought the trade balance for the first four months of the year to a deficit of $2.16 billion, the report notes. The April surplus compared with an expected deficit of $1.59 billion, according to the median estimate of economists polled by The Wall Street Journal. Petroleum exports rose 26.9% in April to $1.68 billion thanks largely to higher crude-oil prices, the report relays. Crude exports by volume were little changed from March and from a year earlier at 1.02 million barrels a day, the report says. Exports of manufactured goods increased a modest 1.9% from a year ago, with growth likely affected by the Easter holiday week that fell in April this year compared with March of 2016, the report relays. Vehicles and auto-parts shipments abroad rose 1.5% and other factory exports were 2.1% higher, the report notes. Most categories of imports were lower than a year before, except for petroleum products which increased 15.4% to $2.87 billion. Mexico exports crude oil, but imports large quantities of gasoline, diesel and natural gas, the report says. Non-oil consumer goods imports fell 7.2%, intermediate goods used in production processes declined 5.3%, and imports of equipment and machinery slid 4.9%, the report adds. ====================== P U E R T O R I C O ====================== AMERICAN TOOLS: Unsecureds Creditors to be Paid 3% Over 5 Years --------------------------------------------------------------- Unsecured creditors of American Tools Inc. will get 3% of their claims under the company's proposed plan to exit Chapter 11 protection. Under the proposed plan of reorganization, creditors holding Class 3 general unsecured claims will receive a monthly payment of $1,786.39 for 60 months for a total of $107,183.32. Payments will start 30 days after confirmation of the plan. General unsecured creditors assert a total of $3,572,777.31 in claims. Class 3 is impaired. Source of funds for payments is the collection of postpetition sales. Net monthly business income is projected to cover the total monthly payment of $7,740 proposed under the plan for secured claims, priority tax debts, and general unsecured claims, according to American Tools' disclosure statement filed on May 16 with the U.S. Bankruptcy Court in Puerto Rico. A copy of the disclosure statement is available for free at https://is.gd/Q98MjN About American Tools American Tools, Inc. manufactures custom sheet metal products in its facilities in Bayamon, Puerto Rico. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 16-08071) on October 7, 2016. Jimmy Cepeda Benavides, vice-president and treasurer, signed the petition. At the time of the filing, the Debtor estimated assets of less than $1 million and liabilities of $1 million to $10 million. The case is assigned to Judge Brian K. Tester. The Debtor hired the Law Offices of Emily D. Davila as its legal counsel. ================= X X X X X X X X X ================= CARIBBEAN: Climate Change & Flooding Threaten People on Islands --------------------------------------------------------------- A new study by the Inter-American Development Bank (IDB) estimates that 4.2 million people in Small Island Developing States (SIDS) in the Caribbean and in the Pacific are living in areas that are prone to flooding due to rising sea levels. In addition to coastal erosion, rising sea levels are expected to negatively impact economic output and employment and could aggravate inflation and cause an increase in government debt, according to the study, A Blue Urban Agenda: Adapting to Climate Change in the Coastal Cities of Caribbean and Pacific Small Island Developing States. "Caribbean and Pacific coastal cities are on the frontlines of climate change," said Michael G. Donovan, Senior Urban Specialist at the IDB, co-author of the study. "It is critical to adapt and improve the resilience of cities in coastal zones, especially those experiencing rapid urbanization. Mayors in port cities across the globe could benefit from the policies that Small Island Developing States are developing as their governments respond to coastal transformation," he added. One out of five residents of Caribbean and Pacific SIDS live in low-elevation coastal zones, which are defined as areas with elevations less than 10 meters above sealevel. This is most extreme in The Bahamas and the Republic of the Marshall Islands, where over 80 percent of the population lives at low elevations, the study said. The good news is that the international community has begun responding to the challenge. The study reviews aid and private sector flows totaling US$55.6 billion provided to Caribbean and Pacific SIDS over a 20-year period ending in 2015 and found that increasing emphasis has recently been placed on comprehensive programs for strengthening coastal city resiliency. The report also analyzes how Caribbean and Pacific SIDS have leveraged nearly $800 million in green climate funding to support coastal resilience. "The donor community and the SIDS have been innovative in their efforts to solve this problem in the context of what is known as the 'Blue Urban Agenda'. The challenge facing SIDS government officials is investing in protection of their highly vulnerable coastal cities before the damage occurs," said Michelle Mycoo, lead author from the University of West Indies, St. Augustine, located in Trinidad and Tobago. The study reviewed the efforts made by Caribbean and Pacific SIDS to implement adaptation strategies aimed at reducing vulnerability and enhancing sustainability. It shows an increasing emphasis on urban governance and institutional capacity building within city planning agencies. The report also includes several policy recommendations for making towns and cities more resilient to climate change. Those measures include improving coastal planning, land reclamation, coastal setbacks, enforcement of building codes, climate-proofing infrastructure, mangrove reforestation, and coastal surveying and monitoring. The report analyzed more than 50 projects in SIDS financed by the IDB, United States Agency for International Development (USAID), World Bank, UN-Habitat, Japan International Cooperation Agency (JICA), German Corporation for International Cooperation (GIZ), Asian Development Bank, European Union, UK Department for International Development (DFID), UNDP,CARICOM, Australian Agency for International Development (AUSAid), and the Pacific Community. These projects are located in Bridgetown (Barbados), Kingston (Jamaica), Suva (Fiji), Majuro (Marshall Islands), Nassau (Bahamas), Port-au-Prince (Haiti), Port Moresby (Papua New Guinea), and other coastal cities. This is the first report from the IDB to compare coastal cities in ecologically fragile Caribbean and Pacific Small Island Developing States. The IDB plans to share lessons learned from SIDS with Brazil, where 13.5 million people live in low-elevation coastal zones. A Blue Urban Agenda: Adapting to Climate Change in the Coastal Cities of Caribbean and Pacific Small Island Developing States provides strategies to implement commitments for SIDS in international agreements, such as the Small Island Developing States Accelerated Modalities of Action resolution (Samoa Pathway), COP21, the Sustainable Development Goals, and Habitat III. The report follows the IDB Group's announcement last year that it would increase the volume of climate-related financing to 30 percent of operational approvals by the end of 2020. *********** 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 * * *