/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170623.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, June 23, 2017, Vol. 18, No. 124 Headlines B E R M U D A ACORN RE 2015-1: Fitch Affirms BB Rating on Catastrophe Risk CRANBERRY RE: Fitch Affirms Bsf Rating on Variable Rate Notes B R A Z I L BANCO PAN: S&P Keeps 'B+/B' Rating on CreditWatch Negative HYPERMARCAS SA: S&P Affirms 'BB+' CCR; Outlook Remains Positive RUMO SA: Fitch Affirms BB- Long-Term Issuer Default Ratings C A Y M A N I S L A N D S KAMCO GLOBAL: Member to Hear Wind-Up Report on June 3 UBS IB CO-INVESTMENT: Members' Final Meeting Set for Sept. 4 VCP IV (GP): Shareholders' Final Meeting Set for June 27 WILLY INVESTMENT: Members' Final Meeting Set for June 30 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Group Wants Haiti Ban on Local Products Solved J A M A I C A JAMAICA: BPO Sector Wants Meeting Before SEZ Regulations Finalized M E X I C O BANCO DEL BAJIO: Fitch Affirms BB- Support Rating Floor BANCO INTERACCIONES: Fitch Affirms BB+ IDRs; Outlook Stable EMPRESAS ICA: S&P Affirms Then Withdraws 'D' Ratings P E R U HOCHSCHILD MINING: Moody's Hikes CFR to Ba3; Outlook Stable P U E R T O R I C O CRISTALEX INC: Unsecureds to Recover 2.21% Under Plan FARMACIA BRISAS: Hires Gratacos Law Firm as Counsel KOMODIDAD DISTRIBUTORS: Hires Fernandez Collins as Special Counsel T R I N I D A D & T O B A G O PETROTRIN: The Way Forward for Firm TRINIDAD & TOBAGO: Farmers Counting Losses - - - - - ============= B E R M U D A ============= ACORN RE 2015-1: Fitch Affirms BB Rating on Catastrophe Risk ------------------------------------------------------------ Fitch Ratings has affirmed the Principal-At-Risk Variable Rate Notes issued by Acorn Re Ltd., a duly formed special purpose insurer vehicle domiciled in Bermuda: -- $300,000,000 2015-1 Class A Principal At-Risk Variable Rate Notes with an expected maturity of July 17, 2018 at 'BBsf'; Outlook Stable. This affirmation is based on Fitch's annual surveillance review of the notes that includes an evaluation of the natural catastrophe risk, counterparty exposure, collateral assets and structural performance. Fitch continues to believe the natural catastrophe risk is the weakest link in this transaction. KEY RATING DRIVERS The Series 2015-1 Notes provide reinsurance protection to Hannover Rueck SE ('A+' Issuer Default Rating; Outlook Stable). The notes are exposed to Earthquakes for an area that includes the States of California, Oregon, Washington, Idaho, Utah, Nevada and Arizona of the United States, the Province of British Columbia of Canada, and the States of Baja California, Baja California Sur and Sonora of Mexico. Hannover Rueck SE also established a similar reinsurance agreement with Oak Tree Assurance, Ltd., (not rated by Fitch) a wholly owned subsidiary of Kaiser Foundation Health Plan, Inc. ('A+' Insurer Financial Strength Rating; Outlook Stable). The trigger is per occurrence based on a parametric 'cat-in-a-box' structure utilizing up to 430 predetermined Earthquake Box Locations that are each a square box of size one degree by one degree on the Earth's surface. The area that comprises the group of Earthquake Box Locations is delineated by latitudes +26 degrees and +54 degrees and longitudes -132 degrees and -110 degrees. Fitch received a Model Update Report from the Calculation Agent ("RMS") due to the release of an updated version of the Initial Model. This report indicated the Updated Modeled Expected Loss to be 0.64% versus the Initial Modeled Expected Loss of 0.74%. As a result, the interest spread on the Notes will decrease to 3.29% from 3.40%. The change in the expected loss did not alter Fitch's implied rating of the catastrophe risk of 'BB', which as the "weakest link", is the driver of the notes. Fitch believes the notes and indirect counterparties are performing as required. There have been no reported early redemption notices or events of default, and all agents remain in place. Additional information regarding the note can be found in the prior press releases dated July 13, 2015 (2015-1 Class A) and June 29, 2016 available at www.fitchratings.com. RATING SENSITIVITIES This rating is sensitive to the occurrence of Covered Event(s), the counterparty risk of Hannover Rueck SE or changes to the ratings or performance of the assets held in the Retrocession Trust account. In the case of a triggering Covered Event, Fitch will downgrade the notes reflecting an effective loss of principal and impairment of the notes, and issue a Recovery Rating. To a lesser extent, the notes may be downgraded if Hannover Rueck SE is significantly downgraded or fails to perform its obligations under the Retrocession Agreement to Acorn Re Ltd. Likewise, the ratings on the notes may be affected if the IBRD notes (which are held in the Retrocession Trust account) should suffer a serious downgrade, or the terms of the IBRD notes are altered or if the subsequent assets held in the Retrocession Trust account perform significantly worse than expectations for high quality, short-term investments. CRANBERRY RE: Fitch Affirms Bsf Rating on Variable Rate Notes ------------------------------------------------------------- Fitch Ratings affirms the 'Bsf' rating to the Principal At-Risk Variable Rate Notes issued by Cranberry Re Ltd., a special purpose insurer vehicle domiciled in Bermuda: -- $300,000,000 Principal At-Risk Variable Rate Notes; scheduled maturity July 6, 2018. The Rating Outlook is Stable. This affirmation is based on Fitch's annual surveillance review of the Notes and includes an updated evaluation of the natural catastrophe risk, counterparty exposure, collateral assets and structural performance KEY RATING DRIVERS The notes are exposed to insured property losses caused by 'named storms', 'severe thunderstorms' and 'winter storms' on an annual aggregate basis using an indemnity trigger, from Subject Business written by the Massachusetts Property Insurance Underwriting Association (MPIUA, also known as the MA FAIR Plan). On April 14, 2017, AIR Worldwide (AIR), acting as the Reset Agent, completed the Reset Report that indicated an updated modeled annual attachment probability as 3.198% for the third (and final) Annual Risk Period, July 1, 2017 through June 30, 2018. This corresponds to an implied rating of 'B' per the calibration table listed in Fitch's 'Insurance-Linked Securities Methodology'. The updated modeled attachment probability reflects updated property exposures within the Subject Business in the Covered Area that have been run through the escrowed AIR model. This is a small increase over the updated modeled attachment probability for the previous Annual Risk Period of 3.152%. The Updated Attachment Level and Updated Exhaustion Level remain unchanged from the prior levels at $300 million and $1.4 billion, respectively. Per a specified formula in the Indenture (the "Risk Spread Calculation"), the Updated Risk Interest Spread will be reset to 3.90% effective July 1, 2017. This is a slight increase from the prior period (3.86%) reflecting the increase in the Updated Modeled Expected Loss of 1.429% from the prior expected loss of 1.407%. Hannover Rueck SE (Issuer Default Rating 'A+', Stable Outlook) is a reinsurance company that acts as a transformer and sits between MPIUA and Cranberry Re Ltd. The collateral assets, the BlackRock Treasury Trust, meets Fitch's criteria requirement for a highly- rated U.S. dollar-denominated money market fund. Fitch believes the Notes and indirect counterparties are performing as required. There have been no reported early redemption notices or events of default and all agents remain in place. Additional information regarding the Note can be found in the prior rating action commentary on April 30, 2015 and April 27, 2016 (available at www.fitchratings.com). RATING SENSITIVITIES This rating is sensitive to the occurrence of a qualifying event(s), the counterparty rating of Hannover Rueck SE and the rating on the assets held in the collateral account. If qualifying covered events occur that causes annual aggregate losses to exceed the Updated Attachment Level ($300 million), Fitch will downgrade the notes reflecting an effective default and issue a Recovery Rating. To a lesser extent, the notes may be downgraded if the U.S. dollar-denominated money market funds should 'break the buck', Hannover Rueck SE fails to make timely retrocession premium payments or MPIUA materially changes its mission or operations. The catastrophe risk element is highly model-driven and actual losses may differ from the results of the simulation analysis. The escrow models may not reflect future methodology enhancements by AIR which may have an adverse or beneficial effect on the implied rating of the notes were such future methodology considered. =========== B R A Z I L =========== BANCO PAN: S&P Keeps 'B+/B' Rating on CreditWatch Negative ---------------------------------------------------------- S&P Global Ratings kept its 'B+/B' global scale and 'brBBB-/brA-3' national scale ratings on Banco Pan S.A. on CreditWatch negative. The bank's stand-alone credit profile (SACP) remains at 'b+'. Banco Pan's Basel III regulatory ratio fell to 11.3% as of March 2017 from 13.3% as of December 2016 due to regulatory deductions related to DTAs and Tier II subordinated debt added to the bank's weak internal capital generation. Brazil is currently implementing Basel III DTA deductions on a phase-in basis that will be completed in 2018. Every year since 2015, Brazilian banks had to deduct from their regulatory capital 20% of their DTAs from net losses and the balance of DTAs from temporary differences, not related to credit provisions, higher than 10% of their Tier I equity. Moreover, most subordinated debts issued prior to Basel III implementation were also part of the deduction framework due to the subordinated debts' low capacity to absorb losses. Banco Pan's high amount of DTAs caused its regulatory capital to shrink by around R$230 million as of March 2017 and the deduction of the bank's debt instrument from the Tier II capital totaling R$118 million decreased its Basel III ratio to 11.3%. HYPERMARCAS SA: S&P Affirms 'BB+' CCR; Outlook Remains Positive --------------------------------------------------------------- S&P Global Ratings Services affirmed its 'BB+' global scale and 'brAA+' Brazilian national scale corporate credit ratings on Hypermarcas S.A. The outlook remains positive. The rating affirmation and positive outlook reflect S&P's expectation that Hypermarcas will maintain very robust leverage metrics amid a prudent financial risk policy regarding debt- financed acquisitions and shareholders' remuneration. At the same time, S&P expects Hypermarcas to remain focused on the pharmaceutical segment, mainly in the branded prescription drugs, in order to increase market penetration and maintain strong profitability over the next few years. RUMO SA: Fitch Affirms BB- Long-Term Issuer Default Ratings ----------------------------------------------------------- Fitch Ratings has affirmed at 'BB-' the Long-Term (LT) Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) of Rumo S.A. (Rumo) and the rating of its USD750 million of unsecured global notes, due in 2024, issued by Rumo Luxembourg S.a.r.l, a whole-owned subsidiary of Rumo. Fitch has also affirmed at 'A(bra)' the National Scale Long-Term ratings of Rumo, its subsidiaries and all of their related unsecured debentures. At the same time, Fitch has assigned 'A(bra)' to the 9th debentures issuance of the subsidiary Rumo Malha Norte S.A (Rumo Malha Norte). The debentures total BRL2,375 million and is due in 2023. Fitch has also withdrawn the rating of Rumo Logistica Operadora Multimodal S.A. (Rumo Logistica). The Rating Outlook for corporate ratings has been revised to Positive from Stable. The rating incorporates Rumo's leveraged capital structure, offset by the high predictability of its cash flow generation under adverse economic conditions through several cycles, and its solid business position as a railroad and logistic operator in the Brazilian infrastructure industry. Fitch sees as a credit positive Rumo's affiliation with the Cosan Group (Cosan Limited; FC LT IDR 'BB'/Stable Outlook), which provides reasonable financial flexibility to the company. The substantial capex plan for expansion and negative free cash flows (FCF) expected for the next two years constrain the ratings. The revision of the Outlook to Positive from Stable reflects Fitch's expectation of fast deleverage trends following the company's ongoing gains of scale and improving operating profitability. According to Fitch's base case, Rumo's FCF is likely to become neutral to positive as from 2019, when the aggressive investment plans get matured. The company still has the challenge to consistently capture increasing volumes, strengthen its business position and improve operating cash flow generation in order to reduce leverage on a sustainable basis. Positive rating actions also depend on Rumo's ability to maintain its strong liquidity by financing its expansion with long-term debt lines and improve FFO margins to levels closer to 25%. Fitch has withdrawn Rumo Logistica's ratings as the entity no longer exists. KEY RATING DRIVERS High Leverage Expected to Decline: Fitch expects Rumo's net adjusted leverage to rapidly decline to levels below 4.0x in 2018, reaching a ratio close to 2.5x in 2020, when the aggressive investment program matures. The deleverage process is supported by consistent EBITDAR expansion, thanks to the increasing capacity and improved cost structure allowed by the past investments. The company's pro forma net adjusted debt/EBITDAR ratio reached 4.5x as of the LTM ended March 31, 2017, in line with 2016. This ratio compares to 5.2x in 2015. Challenging Operating Performance Improvement: The company still faces challenges to capture increasing load volumes and raise its business operations profitability from 2017 onwards following the conclusion of the measures taken to improve its operating and financial profile in 2016. The businesses are strongly exposed to Brazil's agricultural performance, which led volumes to slightly decline during 2016. Rumo's business model is highly dependent on increased railroad volumes going forward, in order to benefit from operating margins expansion as consequence of operational efficiencies unleashed by its capex program. Pressured FCF: The sizeable capex plan is expected to lead to negative free cash flows up to 2018, but Fitch's base case forecasts FCF to become neutral to slightly positive as of 2019. Rumo is expected to invest about BRL7.0 billion up to 2020, which should result in volume increases of above 10% per year up to 2018, according to Fitch's assumptions. The company is expected to finance investment with long-term debt mostly. Business Profile Remains Strong: Rumo enjoys a solid business position as the sole railroad transportation operator in the South and Mid-Western regions of Brazil, areas with high growth potential due to stable demand for grains worldwide. Rumo's businesses rely on four rail concessions to operate railway lines that extend over approximately 12 thousand kilometres within Brazil, with access to three main Brazilian ports. Due to its cost structure, Rumo's businesses enjoy solid competitive advantages over the truck services. This factor enhances its consistent demand and limits volume volatilities over the cycles. The company will continue to expand its businesses within the industry by putting an aggressive capex plan to add capacity to its operations over the next four years. DERIVATION SUMMARY Rumo enjoys strong business profile. Its operations are geographically concentrated in Brazil, but predominantly linked with the country exports of grains, which enjoys positive perspectives. Brazilian railroads coverage region are well-defined and distinct, which limits the competition among them. The company's business model is enhanced by its important market share in the ports the company serves, compared with the high-cost truck service. The rating incorporates Rumo's leveraged capital structure, offset by the high predictability of its cash flow generation under adverse economic conditions through several cycles. The substantial capex plan for expansion and negative free cash flows (FCF) expected for the next years constrain the ratings. Fitch sees as credit positive Rumo's affiliation with the Cosan Group (Cosan Limited; FC LT IDR 'BB'/Stable Outlook), which provides reasonable financial flexibility to the company. The revision of the Outlook to Positive from Stable reflects Rumo's fast deleverage trends following the ongoing gains of scale and improving operating profitability, while the ambitious investment plans mature. The company has the challenge to consistently capture increasing volumes, strengthen its business position and improve operating cash flow generation in order to reduce leverage on a sustainable basis. Positive rating actions rely on Rumo's ability to maintain its strong liquidity and financial flexibility while financing its expansion. KEY ASSUMPTIONS Fitch's key assumptions within Fitch ratings case for the issuer include: -- 10% to 15% of volume increases per year in 2017 and 2018; mid-single digit volume growth from 2019 to 2020; -- Tariff increase of 4.5% in 2017 and 5.0% in 2018; -- EBITDAR of BRL2.5 billion in 2017, BRL2.8 billion in 2018 and BRL3.2 billion in 2019; -- BRL2.2 billion capex in 2017 and BRL4.8 billion capex from 2018 to 2020; -- Adjusted net debt to EBITDA, according to Fitch' calculation, close to 4.0x in 2017 and at the range of 3.8x-3.2x in 2018 and 2019. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Net adjusted leverage trends below 4.0x, considering only financial debt, in a sustainable basis; -- Maintenance of strong liquidity and positive debt refinancing schedule; -- FFO margin closer to 25%. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Inability to finance capex with long-term and low cost debt, putting pressure on debt amortization schedule; -- Substantial weakening of current EBITDA margins. LIQUIDITY Sound Liquidity: The capital injection of BRL2.6 billion and the extension of medium-term debt, during 2016, combined with the seven-year bond issuance during 1Q17 strengthened Rumo's liquidity significantly. As of March 31, 2017, the company reported cash position of BRL3.1 billion, which covered short-term debt of BRL2.3 billion by 1.4x. This coverage ratio improves to 1.8x when the CFFO is added to cash. Fitch understands Rumo's liquidity is adequate and sustainable in the long term, considering the financial flexibility the company has presented to finance part of its aggressive capex plan. The company is expected to use part of its cash and operating cash flow generation to finance the ongoing investments, while proceeds from the already framed BRL3.5 billion long-term debt from Banco Nacional de Desenvolvimento Economico e Social (BNDES) are not received. Fitch expects part of proceeds from BNDES to be received during 2017. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: Rumo S.A. -- FC and LC IDR at 'BB-' ; -- National Scale Rating at 'A(bra)' ; -- BRL750 million 10th debentures issuance maturing in 2017 at 'A(bra)' . Rumo Luxembourg S.a.r.l. -- the USD750 million unsecured global notes due in 2024 at 'BB-'. Rumo Malha Norte S.A. -- National Scale Rating at 'A(bra)' ; -- BRL166.67 million 6th debentures issuance maturing in 2018 at 'A(bra)'; -- BRL160 million 8th debentures issuance maturing in 2020 at 'A(bra)' Rumo Malha Sul S.A. -- National Scale Rating at 'A(bra)' ; -- BRL166.67 million 3rd debentures issuance maturing in 2018 at 'A(bra)'. Rumo Malha Paulista S.A. -- National Scale Rating at 'A(bra)' ; -- BRL166.67 million 1st debentures issuance maturing in 2018 at 'A(bra)'. The Outlook on corporate ratings has been revised to Positive From Stable. Fitch has assigned the following rating: Rumo Malha Norte S.A. -- BRL2,375 million 9th debentures issuance maturing in 2023 'A(bra)'. Fitch has withdrawn the following ratings: Rumo Logistica Operadora Multimodal S.A. -- 'BB-' Foreign and Local Currency IDR; -- 'A(bra)' National Scale Rating. ========================== C A Y M A N I S L A N D S ========================== KAMCO GLOBAL: Member to Hear Wind-Up Report on June 3 ----------------------------------------------------- The member of Kamco Global Advisory Limited will hear on July 3, 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: Kim Chan Su Admiralty Centre Room 1808, 18th Floor, Tower II 18 Harcourt Road, Admiralty Hong Kong Telephone: +852 2528 9899 Facsimile: +852 2804 1004 UBS IB CO-INVESTMENT: Members' Final Meeting Set for Sept. 4 ------------------------------------------------------------ The members of UBS IB Co-Investment 2001 GP Limited will hold their final meeting on Sept. 4, 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: Simon Conway c/o Gabby Whitter P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949 7000 Facsimile: (345) 945 4237 VCP IV (GP): Shareholders' Final Meeting Set for June 27 -------------------------------------------------------- The shareholders of VCP IV (GP) Limited will hold their final meeting on June 27, 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: Richard Fear c/o Kevin Butler P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7374 Facsimile: (345) 945 3902 WILLY INVESTMENT: Members' Final Meeting Set for June 30 -------------------------------------------------------- The members of Willy Investment Limited will hold their final meeting on June 30, 2017, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal The company's liquidator is: Carob Seeds Limited Telephone: +598 2909 2121 Pasea Estate, Road Town Tortola, BVI =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Group Wants Haiti Ban on Local Products Solved ------------------------------------------------------------------ Dominican Today reports that retailers and transport organizations from the four border provinces formed an association to promote talks with the authorities to solve the deadlock with Haiti's ban on numerous Dominican products, that has hobbled the cross-border markets. The representatives from Dajabon, Elias Pina, Pedernales and Jimani gathered in Santo Domingo's Bono Center, where they vowed to defend, protect and develop cross-border trade, according to Dominican Today. "The lack of clear rules, spaces for dialogue between the governments of both countries, a regulatory body in the legal, fiscal, transportation, trading and market logistics relationships are factors that translate into elements that distort the functionality and development of the border markets between the Dominican Republic and Haiti," they said, the report notes. They say that directly, the situation hurts the trade sector on both sides of the border, as merchants never know what new incident would hamper the sales of their merchandise, the report relays. "The climate of instability and the deregulation of the main commercial land ports of the Dominican Republic in its relations with Haiti is affected by not having established measures to ensure its proper functioning," the report notes. "For the 14 border markets there is an indirect economic benefit for thousands of families throughout the country and directly affects a population of 211,160 inhabitants in the municipalities of Dajabon, Elias Pina, Jimani and Pedernales provinces, which have the highest poverty rates in the Dominican Republic," the new organization 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+'. ============= J A M A I C A ============= JAMAICA: BPO Sector Wants Meeting Before SEZ Regulations Finalized ------------------------------------------------------------------ RJR News reports that the Business Process Industry Association of Jamaica (BPIAJ) is calling on the government to engage with the association before it finalizes Special Economic Zone (SEZ) regulations, which in the view of the BPIAJ has the potential to stifle the growth of BPO in Jamaica. The BPIAJ represents a majority of Business Process Outsourcing Companies Island wide, according to RJR News. Chief among the BPIAJ's concerns is how the industry will be treated under the Special Economic Zone regime, which imposes not only a host of fees and regulations, but also more red tape and bureaucracy, the report notes. Jamaica's BPO industry has been identified as the main driver of the country's growth agenda, and the government has targeted the creation of 100,000 BPO jobs in five years, the report relays. The BPO sector is the island's largest employer, and the fastest growing industry, contributing over US$400 million annually to the local economy, the report adds. As reported in the Troubled Company Reporter-Latin America on Feb. 9, 2017, Fitch Ratings affirmed Jamaica's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B' with a Stable Outlook. The issue ratings on Jamaica's senior unsecured Foreign and Local Currency bonds are also affirmed at 'B'. The Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is affirmed at 'B' and the Short-Term Foreign Currency and Local Currency IDRs at 'B'. =========== M E X I C O =========== BANCO DEL BAJIO: Fitch Affirms BB- Support Rating Floor ------------------------------------------------------- Fitch Ratings has affirmed Banco del Bajio, S.A. Institucion de Banca Multiple (BanBajio)'s Long- and Short-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BBB-' and 'F3', respectively. In addition, the Viability Rating (VR) is affirmed at 'bbb-'. At the same time, BanBajio and Financiera Bajio, S.A. de C.V. Sofom E.R. (FinBajio) Long-Term National Scale Rating is upgraded to 'AA(mex)' from 'AA-(mex)'. The Short-term National Scale Rating is affirmed at 'F1+(mex). The Rating Outlook of the long-term ratings on both scales is Stable. Fitch's upgrade of BanBajio National Long-Term Rating reflects the strengthened capitalization due to recent IPO, improving profitability and stable asset quality in relation to its national peers. Although these factors did not immediately impact the VR and IDR, in Fitch's view BanBajio's global ratings could be increased if current profitability metrics are sustained and recently enhanced capital ratios consolidate around the bank's target levels after the recent IPO, but also on the maintenance of Fitch's assessment of the operating environment, which currently mirrors the Negative Outlook of the sovereign rating. KEY RATING DRIVERS VR, IDRS AND NATIONAL RATINGS BanBajio's VR, which drives its IDRs and national ratings, considers the bank's recurrent adequate profitability metrics, which have been improving, and healthy loan portfolio. The rating also takes into account the bank's adequate and enhanced capital metrics that derives from the bank's recent IPO. BanBajio's current rating is also in line with its company profile highlighted by a modest but growing franchise and consolidated business model focused on commercial lending, particularly SMEs and agribusiness. BanBajio is a Mexican mid-sized traditional commercial bank, with a focus on medium enterprises. The bank remains as the eight largest bank in Mexico, with a market share in loans and deposits of around 3% and 2.4%, respectively. BanBajio's performance has been consistently improving, enhanced by a growing business volume of operations (approximately 17% during 2016), low cost funding mix and recurrent increases of the interest rates in Mexico. As of the first quarter of 2017 (1Q17), the bank's operating profit to Risk Weighted Assets (RWA) ratio improved to nearly 3%, from a four-year average of 1.8%. BanBajio's profits have also benefited from controlled operating expenses derived from the consolidation of current branches as well as from relatively low loan impairment charges due to its healthy portfolio. Fitch believes that if the bank manages to reach its growth target in an orderly manner, current higher profitably levels could be sustained. The bank's asset quality has continued its positive trend, highlighted by the improvement of its non-performing loan (NPL) ratio. As of 1Q17, this ratio stood at 1% (1Q16: 1.3%), and considering the adjusted NPL (impaired loans + net charge offs), the ratio stands nearly at 1.8%, which compares favourably with its national peers. Also, reserve coverage of impaired loans is adequate. As a result of its gradual expansion, the bank has reduced its portfolio concentrations both geographically and per borrower. As of 1Q17, the top 20 obligors accounted for nearly 1.3x (1Q16: 1.5x) its Fitch Core Capital (FCC), which positively compares with some other medium banks, however, the two main clients still represented nearly 28% of the FCC at the same date. Concentrations will likely be reduced with the enhanced capital. Capitalization was one of the bank's major weaknesses in the recent past. However, the recent IPO improved its loss absorption capacity, but it is yet to be seen at which level it will stabilize after the gradual depletion of the newly raised capital, which will be used to prepay some of the Bajio's most expensive liabilities to enhance profitability, and to continue growing its loans portfolio. As of March 2017, BanBajio's FCC stood at 11.4%; after the capital inflow from the IPO of about MXN3,300 million, Fitch expects this metric to be around 13%. Sustained internal capital generation will become a relevant factor to sustain capital ratios around recently enhanced levels. Dividend payments have been around 30% of net income over the past two years, but the bank plans to declare dividends of around 20% going forward. Fitch believes that BanBajio's funding profile is positive and enhances its ALM. The bank's main funding source comes from customer deposits, which have been increasing steadily (year-over- year [YOY]: 2016: 6.5%). Concentrations at the bank's deposit base are moderate, as the major 20 depositors make up about 16% of its total customer deposit base. BanBajio's loans to deposit ratio increased in 2016 and stood at nearly 130% in March 2017. The bank shows tenor mismatches due to the short-term tenure of its deposits, while most of its loans are long-term. However, the bank's deposit base has proved to be stable over the years. Likewise, BanBajio's regulatory LCR is over 100%, which is another sing of its adequate liquidity profile. Also, the bank recurrently uses facilities from Mexican development banks that typically allow for a virtual maturity and interest rate perfect match. Fitch believes that liquidity risk is manageable for the bank. SUPPORT RATING AND SUPPORT RATING FLOOR The bank's SR and SRF are driven by BanBajio's moderate market share of core customer deposits. BanBajio is one of the few mid- size banks that, in Fitch's opinion, could receive sovereign support if needed; this is supported on the bank's market share of customer deposits which is also widespread geographically. Fitch's SRFs indicate a level below which the agency will not lower the bank's Long-Term IDRs as long as the assessment of the support factors does not change. FINANCIERA BAJIO FinBajio's ratings are at the same level of BanBajio's given Fitch's assessment that the subsidiary is core to its parent due to its strategic role in providing core products such as factoring and leasing, which are complement to the range of products offered by the bank to its clients. The ratings also consider the high level of integration and fungibility of capital and funding. RATING SENSITIVITIES VR, IDRS AND NATIONAL RATINGS- BANCO DEL BAJIO BanBajio's global ratings could be upgraded in the next 12 to 18 months if the bank consistently maintains its current financial metrics characterized by improved profitability and materially higher than historical capital ratios, particularly if operating profits to RWA and FCC ratios remain above 2.5% and 13%, respectively; while good asset quality is maintained. Upside potential would only arise if Fitch's current assessment of the Mexican banking sector's operating environment do not worsen over that period. The outlook on this external factor is negative, mirroring that of the country's sovereign rating. A downgrade could result from deterioration on its performance that negatively affects its FCC ratio to levels below 10% and/or operating profits to RWAs consistently under 1.5%. National ratings could be downgraded or upgraded if Fitch perceives material changes in the relative creditworthiness of BanBajio as compared to other Mexican peers. SUPPORT RATING AND SUPPORT RATING FLOOR Upside potential for the SR and SRF is limited and can only occur over time with a material gain of the bank's systemic importance. These ratings could be downgraded if the bank loses material market share in terms of retail customer deposits. FINANCIERA BAJIO Any potential changes of Financiera Bajio's ratings will be driven by any changes in BanBajio's ratings or a modification on the entity's strategic importance to the bank. Fitch has taken the following rating actions: BanBajio -- Foreign Currency Long-Term IDR affirmed at 'BBB-'; Outlook Stable; -- Foreign Currency Short-Term IDR affirmed at 'F3'; -- Local Currency Long-Term IDR affirmed at 'BBB-'; Outlook Stable; -- Local Currency Short-Term IDR affirmed at 'F3'; -- Viability Rating affirmed at 'bbb-'; -- Support Rating affirmed at '4'; -- Support Rating Floor affirmed at 'BB-'. -- National Long-Term Rating upgraded to 'AA(mex)' from 'AA-(mex)'; Outlook Stable; -- National Short-Term Rating affirmed at 'F1+(mex)'. Financiera Bajio -- National Long-Term Rating upgraded to 'AA(mex)' from 'AA-(mex)'; Outlook Stable; -- National Short-Term Rating affirmed at 'F1+(mex)'. BANCO INTERACCIONES: Fitch Affirms BB+ IDRs; Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Banco Interacciones S.A.'s (Interacciones) Viability rating (VR) at 'bb+' and its Long- and Short-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB+/B'. Fitch has also affirmed the national scale ratings of Interacciones Casa de Bolsa, S.A. de C.V. Grupo Financiero Interacciones (Interacciones CB) at 'A+(mex)' and 'F1(mex)', for the long- and short-term ratings, respectively. The Rating Outlook on the long-term ratings is Stable. KEY RATING DRIVERS VR, IDRS AND NATIONAL RATINGS Interacciones's local and foreign currency IDRs are driven by its VR of 'bb+', which is highly influenced by its moderate franchise in the Mexican financial system and concentrated business model but with a competitive position and strong market recognition in the public sector lending. Interacciones is the second major player of financing to states and municipalities and holds about 20% of market share. The VR also considers its adequate loss absorption capacity, an increasingly stable and diversified funding mix, its consistent financial performance underpinned by recurrent earnings, reasonable asset quality that drives low credit costs, as well as controlled operating expenses. The bank's profitability exhibited slight pressures as of March 2017. Interacciones' operating return to RWAs stood at 2.6% during March 2017, compared with the 2.9% and 3.4% registered during 2016 and 2015, respectively. This performance reflects the seasonality of the business model, as well as given the number of elections last year and the implications within the context of the Ley de Disciplina Financiera. Fitch believes the recurring operating profit to RWAs will remain in a range of 2% and 3%, which still compares well to its peers. However, the the bank's future metrics could be challenged due to tightest interest margin within the context of the legal changes that are creating a more competitive government lending. Interacciones' ratings factor in the adequate asset quality with a significantly low impaired loan ratio of 0.1% over the past years and robust collaterals given that more than 90% of gross loans have secured source of payments (federal fiscal sources). The ratings also incorporate the high concentrations by borrower, where the 20 largest creditors accounted for 72.8% of gross loans or 6.1x Fitch Core Capital (FCC). The bank maintains wide loan loss reserves and improved to 23.3x of impaired loans during 1Q17, compared to an average of 16.5x for the past four years. However, these reserves are moderate when considering credit concentrations since those only cover 1.3% of gross loans. Fitch views positively the bank's efforts to decrease its credit concentrations over the years. However, given the bank's business model these will continue to be high and could undermine the bank's liquidity. Interacciones' capital metrics are good and compares reasonably to its national peers. The bank's FCC to Risk Weighted Assets (RWAs) ratio has been stable over the past four years. It stood at 13.1% by the end of the 1Q17 and averaged 12.9% from 2013 to 2016. Intreracciones' capital base relies on its ability to internally generate capital despite the recurrent dividend payment. The bank's loss absorption capacity is also underpinned by an ample loan loss reserves. Interacciones' funding mix and liquidity profile have improved gradually by increasing its customer deposit base and liquid asset, as well as accessing longer tenor financing sources. Interacciones' customer deposits have grown steadily over the last four years; these grew at a rate of 31.1% y-o-y as of 1Q17 and accounted for 49.5% of total funding excluding derivatives. Deposits concentration has gradually decreased but is still high, and the top 20 depositors represented about 50% of total core deposits and are mostly composed of state federal and local government accounts. However, positively, the bank has also consistently incorporated corporate clients. Total liquid assets (cash and cash equivalents plus deposits with banks plus trading and available for sale securities net of trading liabilities) accounted for a sound 34.4% of total assets and roughly 50% of its short-term funding. Liquidity for Interacciones continues to be challenged by maturities mismatches given the long-term tenor of the government loans and the short-term tenor of deposits. Negative cumulative gaps are exhibited from the 30 days buckets, but the bank has available facilities granted by development entities and an adequate liquidity position to address this risk. The gap between the average tenor of assets and the average term of liabilities continue improving and stood at 1.8 years during 1Q17, down from 2.3 years in 1Q16. Fitch's core metric, loans to deposits ratio, improved to 115.8% during 1Q17, down from 136% and 143% in 2016 and 2015, respectively and compares favorably respect to its national closest peers. The improvement is driven by higher deposit growth compared to loan growth. The bank has local senior unsecured certificates, which were also affirmed at the same level as its national scale rating given the likelihood of default of any given senior unsecured obligation is the same as the likelihood of default of the bank. SUPPORT RATING Interacciones' Support Rating and Support Rating Floor are affirmed at '5' and 'NF', respectively, in view of the bank's low systemic importance. In Fitch's view, external support cannot be relied upon. SUBORDINATED NOTES The local subordinated hybrids of Interacciones were affirmed at 'BBB+(mex)', three notches below the applicable anchor rating, the bank's long-term national scale rating of 'A+(mex)', in order to maintain the relativity. The issue's rating is notched down reflecting the loss severity and non-performance risk. The notching for non-performance risk (-2) is typical for hybrids issued by Mexican banks, since Fitch considers that the triggers for coupon deferrals or cancellations are relatively high, according to applicable local regulations. In turn, the notching for loss severity (-1) reflects that these securities are plain- vanilla subordinated debt (subordinated preferred, under the local terminology). INTERACCIONES CB NATIONAL SCALE RATINGS The Interacciones CB ratings reflect the support it could receive, if needed, from its ultimate parent, Grupo Financiero Interacciones (GFI) whose credit quality profile is aligned with its main subsidiary, Interacciones. The support is based on the local regulatory framework regarding the legal obligation of financial groups with its subsidiaries, if needed. Interacciones CB's activities are core for the group's strategy and business model; especially given its position as funding mechanism for the bank. RATING SENSITIVITIES VRs, IDRS AND NATIONAL RATINGS An upgrade of Interacciones' ratings is hardly conceivable at present, given its current niche oriented and concentrations in both sides of the balance. Fitch believes it could occur if the bank materially reduces its risk concentrations, coupled with sustained improvements in its assets and liabilities maturity mismatches. In turn, a downgrade of Interacciones' ratings would arise if its capital metrics and profitability weaken significantly. Specifically, if the bank shows a FCC to RWAs ratio consistently below 12.5% and operating profit to RWAs metric falls below 2%. Material deteriorations of the bank's asset quality profile could also exert pressure on the ratings. The bank's senior debt ratings would mirror any change in the bank's national scale ratings. SUPPORT RATING A potential upgrade of Interacciones' Support Rating and Support Rating Floor is limited at present, since external support cannot be relied upon. SUBORDINATED NOTES The bank's subordinated debt ratings will likely mirror any change in the bank national scale ratings, as these are expected to maintain the same relevance to Interacciones' credit rating. INTERACCIONES CB NATIONAL SCALE RATINGS Any potential changes in INTERACCIONES CB's ratings will be driven by any changes in Interacciones' ratings. Fitch has affirmed the following ratings: Banco Interacciones, S.A. -- Long-term foreign and local currency IDRs at 'BB+', Outlook Stable; -- Short-term foreign and local currency IDRs at 'B'; -- Viability rating at 'bb+'; -- Support rating at '5'; -- Support rating floor at 'NF'; -- National scale long-term rating at 'A+(mex)', Outlook Stable; -- National scale short-term rating at 'F1(mex)'; -- National scale long-term rating for local senior unsecured debt issues at 'A+(mex)'; -- National scale long-term rating for local subordinated debt issues at 'BBB+(mex). Interacciones Casa de Bolsa, S.A. de C.V. -- National scale long-term rating at 'A+(mex)', Outlook Stable; -- National scale short-term rating at 'F1(mex)'. EMPRESAS ICA: S&P Affirms Then Withdraws 'D' Ratings ---------------------------------------------------- S&P Global Ratings affirmed its 'D' global scale and national scale corporate credit and senior unsecured debt ratings on Empresas ICA S.A.B. de C.V. (ICA) and its '5' recovery rating, indicating that S&P expects a modest (10% to 30%; rounded estimate: 15%) recovery to creditors in the event of a payment default. S&P subsequently withdrew the ratings at the company's request. At the time of the withdrawal, ICA was still negotiating with its debtholders to reach a definitive agreement on debt restructuring. ======= P E R U ======= HOCHSCHILD MINING: Moody's Hikes CFR to Ba3; Outlook Stable ----------------------------------------------------------- Moody's Investors Service has upgraded to Ba3 from B1 the corporate family rating of Hochschild Mining plc. and its senior unsecured notes due in 2021, issued by Compania Minera Ares S.A.C.. The notes are fully and unconditionally guaranteed by Hochschild Mining plc. and its main subsidiaries. The outlook was changed to stable from positive. Rating Actions: Issuer: Hochschild Mining plc Corporate Family Rating: upgraded to Ba3 from B1 Issuer: Compania Minera Ares S.A.C. Gtd. Senior unsecured notes due 2021: upgraded to Ba3 from B1 Outlook Actions: -- Outlook, changed to Stable The upgrade to Ba3 incorporates Hochschild's enhanced operating performance, characterized by higher production volumes, a balanced sales mix (silver and gold contributing to 50% of sales volumes) and a lighter cost structure, which will promote a sustained strengthening of its financial and liquidity profiles. The upgrade also reflects Moody's expectations for an ongoing and steep deleveraging trend to under 1.0 time by year-end 2018, supported by Moody's expectations of continued reduction in absolute debt levels, as observed in the past year. Lower capex requirements through 2019 compared to prior years and conservative shareholder returns will also contribute to positive free cash flow generation, providing operating flexibility. While stronger precious metals prices (compared to late 2015/early 2016) also contribute to the company's more robust performance in recent quarters, its less concentrated business profile, lower costs and capital intensity, and deleveraging initiatives provided a stronger cushion for potential stress scenarios when compared to past years. RATINGS RATIONALE Hochschild's Ba3 rating incorporates a competitive cost position, positive free cash flow generation and conservative financial policies. Enhancements to the company's business profile following the integration of Inmaculada in July 2015 promote higher production volumes and cost reductions, supporting sustained, steady cash generation. The rating also mirrors Hochschild's low debt profile, declining capex needs, ongoing deleveraging trend and good liquidity. The ratings are constrained by Hochschild's relatively small size compared to global peers, its limited diversification in metals, number or operating mines and geography, weighing on its capacity to absorb shocks and increasing its susceptibility to precious metal price volatility. The stable outlook is based on Moody's views that Hochschild will continue to generate positive free cash flows, supported by stable profitability, lower capex and limited shareholder distributions while simultaneously reducing leverage. The outlook also reflects the company's good liquidity profile and continued investments in brownfield projects to increase reserves and ensure long-term operating viability. An upgrade could be considered with the maintenance of Hochschild's competitive cost position and strong liquidity, as well as its capacity to increase future production capacity while it continues to deleverage. An upgrade of Hochschild's rating could be considered if the company maintains positive free cash flow generation and stable EBIT margins above 10% on a sustained basis. Downward pressure on Hochschild's rating could arise if profitability or liquidity materially deteriorates as a result of higher cash burn or dividend distribution, or the company generates sustained negative free cash flow. Specifically, if EBIT margins fall below 5%, leverage ratios trending towards 4.0 times or interest coverage falls below 2.5 times, all on a sustained basis. Disruptions to its operations or sustained pressure on precious metals prices could also place downward pressure on the ratings. The principal methodology used in these ratings was Global Mining Industry published in August 2014. Hochschild Mining PLC, headquartered in Lima, Peru, is primarily a producer and seller of gold and silver, mined from its four core underground mines, with three located in southern Peru and one in southern Argentina. For the last twelve months ended December 31, 2016, Hochschild reported consolidated revenues of USD 688 million. ====================== P U E R T O R I C O ====================== CRISTALEX INC: Unsecureds to Recover 2.21% Under Plan ----------------------------------------------------- Cristalex, Inc., et al., filed with the U.S. Bankruptcy Court for the District of Puerto Rico a disclosure statement dated June 7, 2017, referring to the Debtors' Chapter 11 plan. Class 6 Unsecured Class of Claims is impaired by the Plan. This class will receive a distribution of $5,000, which amounts to approximately 2.21% of their current allowed claims amount. Payments and distributions under the Plan will be funded by the on-going operations of Cristalex. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/prb16-06385-96.pdf About Cristalex, Inc. Cristalex, Inc., is a corporation engaged in the custom glass and mirror business that sells and installs windows, doors and other glass products for commercial and residential customers. Felix V. Rolon Latorre and Marta L. Pagan Batista are individuals who own 100% property interest in the Debtor, and are employed by Debtor. Marta L. Pagan Batista is the president and, together with Felix V. Rolon Latorre, holds 100% of ownership of the Debtor. The President of Cristalex before and during the Debtor's Chapter 11 case has been Marta L. Pagan Batista. Cristalex sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-06385) on Aug. 11, 2016. The petition was signed by Marta Pagan Batista, president. The Debtor is represented by Myrna L. Ruiz-Olmo, Esq., at MRO Attorneys at Law, LLC. At the time of the filing, the Debtor estimated assets at $100,001 to $500,000 and liabilities at $500,001 to $1 million. The Debtor engaged Falcon-Sanchez & Associates, PSC, as accountant. FARMACIA BRISAS: Hires Gratacos Law Firm as Counsel --------------------------------------------------- Farmacia Brisas Del Mar, Inc. seeks authority from the US Bankruptcy Court for the District of Puerto Rico to employ Gratacos Law Firm, PSC, as its legal representative. The Debtor needs Gratacos Law Firm to: a. advice the Debtor with respect to their duties, powers and responsibilities in this case, under the laws of the United States and Puerto Rico in which the debtor in possession conducts the operations, does business or is involved in litigation; b. advice the Debtor in connection with the determination of whether reorganization is feasible and, if not, helps the Debtor in the orderly liquidation of its assets; c. assist the Debtor in negotiations with creditors -- in arranging the orderly liquidation of assets, and/or proposing a viable plan of reorganization; d. prepare on behalf of the Debtor the necessary complaints, answers, orders, reports, memoranda of law and/or any other legal papers or documents, including a Disclosure Statement and a Plan of Reorganization; e. perform the required legal services needed by the Debtor to proceed or in connection with the operation of and involvement of their business; f. in addition, perform the professional services as necessary for the benefit of the Debtor and of the estate. Victor Gratacos Diaz attests that Gratacos Law Firm, PSC is a "disinterested" person within the meaning of 11 USC Sec. 101(14). The firm will be paid $200 per hour for sole owner and business director attorney services. The firm has received a retainer in the amount of $1,717.00 for filing fees; the fund was generated by the Debtors from their business. The Firm can be reached through: Victor Gratacos Diaz, Esq. GRATACOS LAW FIRM, PSC PO Box 7571 Caguas, PR 00726 Tel: 787 746-4772 Fax: 787 746-3633 E-mail: bankruptcy@gratacoslaw.com About Farmacia Brisas Del Mar Headquartered in Luquillo, Puerto Rico, Farmacia Brisas Del Mar, Inc. is a corporation dedicated to pharmaceutical services. It sells mostly pharmaceuticals goods; only a limited amount of sales come from miscellaneous goods such as toys, beverages, school supplies and beauty supplies. Farmacia Brisas Del Mar filed a Chapter 11 bankruptcy petition (Bankr. D. P.R. Case No. 17-04155) on June 9, 2017, in Old San Juan, Puerto Rico. It listed $461,158 in total assets and $1.61 million in total liabilities. The petition was signed by Ana I De La Cruz Padilla, secretary. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 16-00054) on Jan. 8, 2016. It estimated assets of less than $500,000 and liabilities of $1 million to $10 million. The 2016 petition was signed by Ana I. De La Cruz Padilla, secretary. Victor Gratacos Diaz, Esq., at Gratacos Law Firm, P.S.C., serves as the Debtor's bankruptcy counsel in both the 2016 and 2017 cases. Judge Lamoutte Inclan presided over the 2016 case. KOMODIDAD DISTRIBUTORS: Hires Fernandez Collins as Special Counsel ------------------------------------------------------------------ Komodidad Distributors Inc. and its debtor-affiliates seek authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Rafael L. Rovira Arbona and Fernandez Collins Cuyar & PLA as corporate special counsel. After the filing of its Chapter 11 petitions, the Debtors engaged the services of Ferraiuoli, LLC to act as its counsel regarding corporate matters and for tax credit incentives procurement. Pertinent to the application, Ferraiuoli's retention for corporate matters was made in order to provide support to the Debtors in the drafting of definitive documentation regarding the Debtors' Reorganization Plan dated December 28, 2016. Due to certain circumstances outside of the Debtors' reasonable control, the Debtors did not move the Court to confirm their Reorganization Plan. Furthermore, upon consent of all parties, Stabilis LLC -- the third party financer under the Amended Chapter 11 Plan dated May 28, 2017 -- is working with the Debtors to procure an Exit Loan and has retained the services of Ferraiuoli to perform its due diligence and drafting. Therefore, Ferraiuoli will not be assisting the Debtors regarding the corporate matters related to the Amended Chapter 11 Plan. The Debtors require Fernandez Collins to: (a) provide legal advice and support concerning the settlement agreements of Debtors with the largest creditor; (b) provide legal advice and support in relation to the loan collateral documents to be entered thereby with third party financing and an exit loan with Stabilis LLC during the term of the engagement. Fernandez Collins will be paid at these hourly rates: Rafael L. Rovira Arbona $225 Paralegals $100 Fernandez Collins will also be reimbursed for reasonable out-of-pocket expenses incurred. Rafael L. Rovira Arbona, a partner of Fernandez Collins, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Fernandez Collins can be reached at: Rafael L. Rovira Arbona, Esq. Fernandez Collins Cuyar & Pla 500 Tanca Street, Ochoa Building, Suite 201 San Juan PR 00901 Tel: (787) 977-3772 Fax: (787) 977-3773 About Komodidad Distributors Komodidad Distributors, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-04161) on May 25, 2016. The petition was signed by Jorge Galliano, president. The Hon. Enrique S. Lamoutte Inclan presides over the case. The Debtor estimated assets of $50 million to $100 million and estimated debts of $10 million to $50 million. Komodidad Distributors' Chapter 11 case is jointly administered with those of G.A. Design & Sourcing, Inc., Gamaxport, Inc., G.A. Investors, S.E., and G.A. Property Development, Corp., under (Bankr. D.P.R. Case No. 16-04164). Javier Vilarino, Esq., at Vilarino & Associates serves as the Debtor's bankruptcy counsel. Silva-Cofresi, Manzano & Padro LLC serves as its special counsel in labor laws. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultant and Vallejo & Vallejo serves as real estate appraiser to the Debtor. ================================ T R I N I D A D & T O B A G O ================================ PETROTRIN: The Way Forward for Firm ----------------------------------- Trinidad Express reports that the Energy Sub-Committee of the Cabinet met to review the recently completed report on the operations of State-owned Petrotrin. The Sub-Committee, which is chaired by Prime Minister Dr. Keith Rowley, made recommendations which will be forwarded to Cabinet for its decision on the way forward for the energy company, the Office of the Prime Minister said in a statement, according to Trinidad Express. The Petrotrin Review Committee was appointed by the Prime Minister in March, following a Cabinet decision to review the operations at Petrotrin in light of the company's falling revenues, allegations of mismanagement and decreasing oil prices worldwide, the report notes. TRINIDAD & TOBAGO: Farmers Counting Losses ------------------------------------------ Stacy Moore at Trinidad and Tobago Newsday reports that residents in Central Trinidad are still counting their losses as tens of thousands of dollars in livestock drowned while entire fields of food crops were destroyed by flooding left behind by Tropical Storm Bret which struck and continued into the pre-dawn hours of Tuesday, June 20. Agricultural areas impacted in Central include Brasso Seco, Caparo, Mamoral, Flanagin Town, Longdenville, Enterprise and Endeavour. The farmers said that no amount of preparation was enough to lessen the impact of the storm, according to Trinidad and Tobago Newsday. Many said they spent several hours securing their livestock, but all in vain, the report notes. "For the past 25 years I have been rearing livestock and this is the first time I am faced with such great losses. This is the first time I have seen so much water in all my life," said Fatima Baksh, 43, of Lynch Trace, Mamoral, the report relays. The report notes that she said the rain started at 11.30 pm Monday and did not stop for the next five hours. "When I looked through the window, I saw flood water had reached to the neck of my hogs. I could not stay indoors and watch my animals die . . . . I had to do something," the report quoted Mr. Baksh as saying. The mother of three said she and her husband went out into the storm, the report relays. "We took a chance and walked through the flood which was rising by the minute." The report notes that Mr. Baksh said while she was able to secure the hogs on higher ground, 14 piglets and dozens of chickens and ducks were swept away. "I really tried to save them, but the water kept gushing and pushing against me. I cried when I realized I could not save the poor piglets," Mr. Baksh said, the report relays. Farmer Rhiam Ramnarine, 42, of Caparo said he was helpless as two dozen chickens were carried away in the flood, the report notes. "When the water reached my chest, I knew it would be in vain to save my animals. I have lost thousands of dollars from this one flood," Mr. Ramnarine added. *********** 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. 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