/raid1/www/Hosts/bankrupt/TCRLA_Public/170626.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, June 26, 2017, Vol. 18, No. 125
Headlines
A R G E N T I N A
PAMPA ENERGIA: S&P Assigns 'B' Rating to $300MM 5-Yr. Sr. Notes
PAMPA ENERGIA: Fitch to Rate Proposed Bond Issue B+/RR3
PAMPA ENERGIA: Moody's Rates Proposed USD500MM Global Notes B3
B A H A M A S
BAHAMAS: Government Addressing Investor Concerns About Long Waits
C A Y M A N I S L A N D S
CLOVIS CAPITAL: Commences Liquidation Proceedings
CLOVIS CAPITAL MASTER: Commences Liquidation Proceedings
COLAO LTD: Creditors' Proofs of Debt Due July 20
GLOBAL PARTNERS: Placed Under Voluntary Wind-Up
JB OFFSHORE: Creditors' Proofs of Debt Due July 20
TIGER GLOBAL: Placed Under Voluntary Wind-Up
WACK INVESTMENTS: Creditors' Proofs of Debt Due July 18
WHITE OAK: Creditors' Proofs of Debt Due July 30
WIMBLEDON FUND: Commences Liquidation Proceedings
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: 20% Tax on Soft Drinks Will Impact Jobs
M E X I C O
UNIFIN FINANCIERA: Fitch Affirms 'BB' IDR; Outlook Stable
P A N A M A
* PANAMA: Climate Change Threatening Future Canal Expansion
P U E R T O R I C O
AEROPOSTALE: Sues Hilco, et al., for Turnover of $1.3M Funds
PUERTO RICO: Parties Object to Commonwealth-COFINA Procedures
PUERTO RICO: Fiscal Board Slammed for Restructuring Deal Delay
* Moody's Lowers Ratings on 57 Tranches Backed by P.R. RMBS Loans
T R I N I D A D & T O B A G O
BPTT: Protest at Firm's Pt Galeota Operations
V E N E Z U E L A
VENEZUELA: Protesters, Security Forces Clash Again
X X X X X X X X X
* BOND PRICING: For the Week From June 19 to June 23, 2017
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A R G E N T I N A
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PAMPA ENERGIA: S&P Assigns 'B' Rating to $300MM 5-Yr. Sr. Notes
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' debt rating to Pampa Energia
S.A.'s proposed $300 million five-year senior unsecured notes.
The proposed notes will be denominated in Argentinean pesos but
payable in dollars and will bear a fixed interest rate. The notes
will have covenants that limit incurrence of debt. The covenants
are the same as those on Pampa's $750 million senior unsecured
notes and include a minimum EBITDA interest coverage of 2x and a
maximum leverage defined as a debt-to-EBITDA ratio below 3.5x.
The rating on the notes is the same as S&P's corporate credit
rating on Pampa because, following consolidation with Petrobras
Argentina S.A., Pampa has become an operating holding company that
generates cash flows on its own, mitigating structural
subordination and resulting in no material disadvantage for
Pampa's creditors against creditors of its subsidiaries. S&P
expects the company to use the proceeds of the notes to finance
capital expenditures, which S&P already incorporates in its base
case.
The ratings reflect Pampa Energia's competitive position as a
strong player in the Argentine energy sector, which is tempered by
exposure to the country's fragile economy and volatile regulatory
framework, as well as Pampa's limited geographic diversification.
In addition, although Pampa's consolidated leverage pro forma the
Petrobras Argentina acquisition is moderate, amid significant
capital expenditures, S&P expects the company to post a free
operating cash flow shortfall in the next two years, weighing on
the rating. On the other hand, S&P believes that in the medium
term, the company will benefit from improved cash generation from
the electric generation and distribution sectors, while still
focusing on the production of natural gas. The announcement at
the end of January 2017 of the Integral Tariff Review (ITR) for
the electric sector, which sets the legal grounds for a more
transparent and predictable rate-setting process, improves cash-
flow predictability in the medium term and reduces Edenor's
(Pampa's electric distribution subsidiary) dependence on
compensation from a market clearinghouse, Compania Administradora
del Mercado Mayorista Electrico S.A. (CAMMESA). Additionally, the
update in February 2017 of the remuneration scheme for the
generation business will result in margin improvements in this
business.
We expect that, despite the increase in debt following Petrobras'
acquisition and our expectations that the company will maintain
solid capex plans, the oil and gas operations' consolidation and
upside from the electric business will lead to moderate leverage
levels with a debt-to-EBITDA ratio close to 2.5x in 2017 that will
fall from 2018 onwards to levels of about 2x.
The ratings also reflects S&P's view that Pampa's credit quality
is limited by that of the sovereign, considering the dependence of
the energy sector on the regulatory framework and government
support, and S&P's belief that in a hypothetical sovereign default
scenario high inflation, sharp devaluation, and overall
macroeconomic conditions would undermine Pampa's financial
flexibility.
RATINGS LIST
Pampa Energia S.A.
Corporate Credit Rating B/Stable/--
New Rating
Pampa Energia S.A.
$300 mil. five-year sr unsec notes B
PAMPA ENERGIA: Fitch to Rate Proposed Bond Issue B+/RR3
-------------------------------------------------------
Fitch Ratings expects to assign a rating of 'B+/RR3' to Pampa
Energia S.A.'s (Pampa) proposed bond issuance of senior unsecured
notes due 2022. The notes will be denominated in Argentine pesos,
payable in U.S. dollars, and will carry a fixed rate. The proceeds
will be used to refinance existing debt and to fund fixed asset
investments in Argentina and working capital requirements. The
notes will rank at least pari passu in priority of payment with
all other Pampa senior unsecured debt, and will be rated the same
as all of Pampa's senior unsecured obligations.
At closing the issuance amount will be converted into an initial
equivalent Argentine Peso (ARS) amount based on the then current
exchange rate. The ARS amounts payable in respect of principal and
interest will be converted to U.S. dollars (USD) based on the
local exchange rate prevailing at that moment. Payment of the
notes is therefore exposed to exchange rate fluctuations, and
payment of principal and interest can decrease in USD terms if the
Argentine peso depreciates.
KEY RATING DRIVERS
The ratings consider Pampa's status as Argentina's largest
integrated energy company, with significant market shares across
all its business lines. In particular, the ratings reflect the
company's substantial operations in exploration & production
(E&P), as well as the favorable domestic price environment for its
natural gas business in Argentina. Additionally, the company's
electricity generation segment is expected to provide cash flow
stability and gradual growth as new plants qualifying for more
profitable regulatory programs are constructed. In addition to
broad macroeconomic constraints captured by Argentina's Long-Term
IDR of 'B', a potential pressure point for the company is its
participation in the historically unprofitable electricity
distribution company, Edenor.
Pampa's foreign currency rating is constrained by the 'B' country
ceiling of the Republic of Argentina, which limits the foreign
currency rating of most Argentine corporates. Country ceilings are
designed to reflect the risks associated with sovereigns placing
restrictions upon private sector corporates that may prevent them
from converting local currency to any foreign currency under a
stress scenario and/or may not allow the transfer of foreign
currency abroad to service foreign currency debt obligations.
FAVORABLE NATURAL GAS PRICES
In an attempt to foster energy independence, Argentina has created
various incentive programs across the energy sector including
subsidies that guarantee a realized price of USD7.5 per million
BTU (mmbtu) for qualifying gas production, known as Plan Gas and
Plan Gas II. Fitch estimates approximately 60% of the company's
natural gas production will qualify for these price incentives in
2017. In March of this year, the government approved a new program
that extends gas incentives by fixing natural gas prices for the
Neuquino Basin between USD7.5/mmbtu and USD6/mmbtu through 2021.
This is in line with Fitch's previous expectations with respect to
the realized prices relative to substitution costs implied by LNG
imports and Fuel Oil #6.
Pampa's joint venture with YPF S.A. for the exploitation of the
Rincon del Mangrullo and its purchase of Petrobras Argentina have
had a transformative effect on the company, growing its production
volumes from around 3,000 barrels of oil equivalent per day
(boe/d) in 2013 to an expected 75,000 to 80,000 boe/d over the
next three years, making it the fourth largest oil and gas
producer in the country. Under Fitch's base case assumptions, the
consolidated E&P operations of Pampa and Petrobras Argentina
should generate around 80% of consolidated EBITDA in 2017,
excluding Pampa's electricity distribution business.
INVESTMENTS IN GENERATION IMPROVE PROFITABILITY
The company's 3,433MW of installed capacity represent 10% of the
country's total capacity. However, most of Pampa's generation
assets operate under a regulatory system applied to older
generation units, remunerated at lower prices to reflect their
inefficiency. As a result, a significant portion of Pampa's growth
capex is expected to go toward the construction of new plants that
would qualify for new regulatory schemes that offer higher
capacity prices and are denominated in USD.
In October 2016, the company won bids for four generation plants
(three thermal, one windpower) totalling approximately 400MW of
capacity, with expected commercial operation dates (CODs) in the
second half of 2017. Fitch expects this strategy of seeking higher
generation margins through the construction of new plants to
continue through the medium term.
IMPROVEMENTS IN ELECTRICITY DISTRIBUTION EXPECTED
For the last decade, Argentina's electricity prices have been
artificially suppressed, with average monthly electricity bills of
around USD3. As a result, distribution companies, such as Pampa's
Edenor, have operated at significant losses, requiring various
government subsidies and credit programs to stay afloat.
Nevertheless, with the aggressive efforts at liberalizing
Argentina's energy sector under the Mauricio Macri administration,
there are indications that this sector should return to
profitability. This year, an increase in the distribution tariff
for Edenor was finalized that will be applicable for the next five
years. The adjustment will be implemented in four stages between
February 2017 and February 2018 for a cumulative increase of 98%.
Fitch expects EBTIDA of around USD80 million this year, and EBTIDA
of USD300 million-USD500 million thereafter.
In addition to the upward revision to the distribution component
of the tariff, even the revised fuel cost component (approximately
ARS300/MWh) remains significantly below breakeven costs of
approximately ARS650/MWh as of year-end 2015. While the Macri
administration has already run into some legal and political
obstructions that resulted in a tempering of the liberalization
process, this is a clear priority. Less clear is the speed at
which the system will be effectively transformed, much less how
long such a transformation would last. With low expectations
informed by the last decade's electricity regulation, the upside
potential could represent yet another transformational change for
Pampa.
KEY ASSUMPTIONS
-- Natural gas production of between 45,000 and 55,000 boe/d over
the next three years; total hydrocarbon production of between
70,000 and 80,000 boe/d during the same period.
-- Average realized natural gas price of USD6/mmBTU; crude prices
reaching international parity over the next 12 to 18 months.
-- Average of USD150 million invested annually in additional
generation capacity
-- Gradual improvement in cash flow for Edenor over the next
three years.
RATING SENSITIVITIES
Although the Argentine regulatory environment for oil and gas and
utilities appears to be undergoing positive changes, detrimental
government intervention remains the greatest risk to Pampa's
ratings. In that vein, failure to implement effective tariff
adjustments through the medium term could potentially lead to a
downgrade. While all recent trends point to a supportive view of
the E&P sector (and particularly natural gas), any reversal in
that environment would have a material impact on Pampa's cash
flow. Finally, failure to balance expansion goals with the
maintenance of a solid capital structure would be viewed
negatively. Gross leverage of above 3.0x on a sustained basis
could lead to a negative rating action.
Barring an upgrade to the sovereign, an upgrade for Pampa is
unlikely in the near term. However, sustained improvement in the
company's distribution segment would be viewed positively,
particularly if it resulted in substantial deleveraging.
LIQUIDITY
Fitch expects year-end debt of around USD2.5 billion. Proceeds
from the company's proposed issuance will be used to refinance
USD140 million of existing debt, with excess funds to be used for
general corporate purposes, including investment in Pampa's
growing generation portfolio. Following this issuance, the company
will have more than 80% of its debt maturing beyond five years.
Other significant debt obligations include a USD750 million
issuance from the beginning of this year to refinance acquisition-
related debt, a USD500 million Petrobras Argentina bond (absorbed
by Pampa in 1Q17), and a USD176 million Edenor bond (structurally
subordinate to Pampa-level issuances).
FULL LIST OF RATING ACTIONS
Fitch currently rates Pampa Energia S.A. as follows:
-- Long-Term Foreign Currency IDR 'B'; Outlook Stable;
-- Long-Term Local Currency IDR 'BB-'; Outlook Stable;
-- Notes due 2027 'B+'/'RR3'.
PAMPA ENERGIA: Moody's Rates Proposed USD500MM Global Notes B3
---------------------------------------------------------------
Moody's Investors Service has assigned a B3 global scale rating to
Pampa Energia S.A. proposed up to USD500 million Argentine-peso
equivalent in global notes due 2022. The notes will be denominated
in Argentine pesos but payable in US dollars in New York, at a
specified foreign exchange rate. The notes will be registered
under rule 144A/Reg. S and governed by New York law. The outlook
on the ratings is stable.
RATINGS RATIONALE
Pampa's B3 ratings consider the company's low to negative free
cash flow, although fueled by expansionary capital investments in
natural gas and power projects, which have favorable prospects;
low interest coverage and low retained cash flow compared to total
debt, pro forma for the proposed notes; as well as exposure to
volatile, highly-regulated power and oil and gas industries in
Argentina. On the other hand, these factors are mitigated by the
company's strategy to focus on businesses with positive pricing
outlooks, namely natural gas production and power generation; the
expected stable demand for electricity and strong demand for
natural gas in Argentina; as well as low foreign exchange risk.
About half of the company's costs, mainly in the oil and gas
business, is linked to the US dollar and, pro forma for the
proposed notes, close to 75% of the company's debt will be in US
dollars. However, close to 80% of Pampa's EBITDA is generated in
the gas and power generation businesses, whose sales are US
dollar-linked, although dependent on prevailing exchange rate.
While the peso/dollar exchange rate had been controlled and kept
low by the Argentine government in the past, since the new
government took place, in early 2016, the exchange rate has been
set by the market, with limited government intervention. The risks
of convertibility of local currency into US dollars and
transferability of foreign currency abroad are high and considered
in Pampa's ratings.
Pampa's free cash flow will be low to negative in the next two
years given high expansionary capital expenditures compared to
operating cash generation. However, the company's debt burden will
not be materially high compared to retained cash flow in the
medium term: retained cash flow/total debt ratio will hover around
30% in the next two years (Moody's considers the USD170 million
owed to Cammesa, Argentina's wholesale power market administrator,
as short-term payable, not financial debt). Likewise, Moody's
forecasts that the company's Moody's-adjusted EBITDA/interest
expenses will be above 4 times in 2017 and 2018, which is low for
a volatile business profile.
Pampa operates in the power as well as the oil and gas industries
in Argentina, which are highly-regulated and pose high operating
risk. But the industry fundamentals in Argentina for the gas
industry in particular are favorable since local natural gas
production supplies only 75% of the country's needs, while the 25%
difference is imported from Bolivia and Chile, among others, a
situation which should prevail for the next 6 to 7 years, at
current local natural gas production growth rate. This dependence
on imports of gas, which is paid in kind and with US dollars, a
scarce currency in the past for the country, sustains solid
prospects for the gas industry in the country in the medium to
long term. For instance, tight and shale gas prices were fixed for
2018-21 at favorable levels, starting at USD7.5/MMBTU in 2018 and
declining to USD6/MMBTU in 2021. In turn, while margins in the
refining business have been under pressure given low economic
growth and demand for oil products, as well as labor pressure for
high wages and benefits, this line of business is small on a
consolidated basis.
In the electricity segment, it is positive that, during the first
quarter 2017, the government approved a new pricing scheme for
power generators, pegging prices to the US dollar; in addition,
generators will now collect full amounts from Cammesa, with
practically no payment delays. In turn, in March 2016, the
Secretariat of Energy of Argentina announced adjustments in
electricity prices as part of an effort to normalize tariffs ("the
RTI process") and to allow participants in the electricity sector
to cover costs resulting from inflation and currency devaluation.
The Ente Nacional Regulador de la Electricidad (the Argentine
National Electricity Regulator, or the "ENRE") issued the new 5-
year tariff schedule for Edenor, Transener and TGS with granted
tariff review increases of 98%, 215% and 1.100%, respectively.
As of March 2017, Pampa's liquidity profile was good: its USD753
million in cash & equivalents plus USD900 million in EBITDA
compared to close to USD750 million in capital expenditures and
USD300 million in taxes and interest expenses for the following 12
months. Similarly, Pampa's refinancing risk is low since in the
reminder of 2017 debt maturities amount to only USD112 million and
the next major debt payment, of USD500 million, is not due before
2023. However, as per the company's financial policies, it would
always maintain a minimum of up to USD100 million in cash at all
times, which would not be available to repay debt. In addition,
the company does not count with revolving credit facilities.
The stable outlook on Pampa's ratings reflects Moody's expectation
that the company will be able to steadily, though slowly, improve
cash generation based on adequate electricity tariffs and natural
gas prices, fueled by lower local supply vis-a-vis demand. Moody's
believes that Pampa's credit metrics related to debt burden and
interest coverage will remain in line with its B3 rating in the
next 24 months or more.
Pampa's B3 ratings could be downgraded if the company materially
increases its leverage, measured as retained cash flow (funds from
operations less dividends) to total debt lower than 10%, or if its
interest coverage, as per EBITDA to interest expense, declined to
below 2 times with limited prospects of a quick turnaround. Also,
a deterioration of the company's liquidity profile could lead to a
rating downgrade.
In turn, a rating upgrade could occur is Pampa's retained cash
flow to total debt ratio is higher than 35% and its EBITDA to
interest expense rate is above 6 times on a sustainable basis. An
upgrade on the ratings of the Government of Argentina would not
necessarily translate into an immediate upgrade of Pampa's
ratings.
The principal methodology used in this ratings was Independent
Exploration and Production Industry published in May 2017.
Pampa is engaged in generation, distribution and transmission of
electric power in Argentina as well as on oil and gas production,
refining, petrochemicals and hydrocarbon commercialization and
transportation in Argentina and, to a lesser extent, in Venezuela.
As of March 31, 2017, Pampa was the third largest power generator
in Argentina, with approximately 10.6% market share. In addition,
it was the fourth oil and gas producer in the country, with an
equity oil and gas production of over 70 thousands of barrels of
oil equivalent per day.
=============
B A H A M A S
=============
BAHAMAS: Government Addressing Investor Concerns About Long Waits
-----------------------------------------------------------------
Caribbean360.com reports that the Bahamas Government will
introduce a "Decision Timeline" that will inform applicants and
investors when they should receive a response on a given matter.
Prime Minister, Dr. Hubert Minnis said the move will address
concerns by investors and other businesspersons regarding the long
length of time it has taken to receive a response from the
Government on various applications and proposals, according to
Caribbean360.com.
The report notes that Dr. Minnis said an Advanced Tracking System
will also be put in place to identify the bottlenecks and
roadblocks in the system. Relevant agencies will be monitored to
see how well, or how poorly, they are meeting or missing their
deadlines.
"This should help with the ease of doing business for potential
investors," the report quoted Dr. Minnis as saying.
Dr. Minnis said some foreign investors have left the country, fed
up at the time it had taken various Cabinet Ministers or
government offices to respond, the report relays.
"Because time is money, the amount of time it has taken The
Bahamas to respond to various investors has likely cost the
country hundreds of millions of dollars, at a minimum," lamented
the Prime Minister whose Free National Movement came into office
after winning general elections last month, the report notes.
The report relays Dr. Minnis said slow response times from the
Department of Immigration had also left a sour taste in the mouths
of investors.
To combat this issue, Dr. Minnis has advised the Minister of
Immigration, as a matter of urgency, to reduce the time it takes
for an application or renewal to be processed, the report says.
The Prime Minister said the business license process will also be
shortened. "The inertia in the process must be removed," he
insisted, notes the report.
Dr. Minnis said his government believes that establishing a "one
stop shop" for doing business with the Government is a practical
solution, the report notes. "We will be developing a 'one window
to government services' strategy going forward. This will require
government departments working across silos and utilizing
appropriate technology within government departments to integrate
systems and databases," he added.
Dr. Minnis said his administration would also remove "unnecessary
double approval regimes" which should also help to reduce long
timelines, the report relays.
"After the Securities Commission approves certain licenses by a
foreign entity or individual, why must BIA (Bahamas Investment
Authority) have to give another approval?" Prime Minister Minnis
questioned. "We will review this process," he added.
==========================
C A Y M A N I S L A N D S
==========================
CLOVIS CAPITAL: Commences Liquidation Proceedings
-------------------------------------------------
The sole shareholder of Clovis Capital Partners (Cayman), Ltd., on
May 30, 2017, resolved 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:
Clovis Capital Management, LP
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6386
CLOVIS CAPITAL MASTER: Commences Liquidation Proceedings
--------------------------------------------------------
The sole shareholder of Clovis Capital Long Master Fund (Cayman),
Ltd., on May 30, 2017, resolved 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:
Clovis Capital Management, LP
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6386
COLAO LTD: Creditors' Proofs of Debt Due July 20
------------------------------------------------
The creditors of Colao Ltd. are required to file their proofs of
debt by July 20, 2017, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on May 30, 2017.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
GLOBAL PARTNERS: Placed Under Voluntary Wind-Up
-----------------------------------------------
At an extraordinary meeting held on May 26, 2017, the sole
shareholder of Global Partners Fund Ltd. resolved 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:
Fides Limited
c/o Sacha Propper
The Grand Pavilion, 2nd Floor
Commercial Centre
P.O. Box 10338 Grand Cayman KY1-1003
Cayman Islands
Telephone: (345) 949 7232
JB OFFSHORE: Creditors' Proofs of Debt Due July 20
--------------------------------------------------
The creditors of JB Offshore Ltd. are required to file their
proofs of debt by July 20, 2017, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on May 29, 2017.
The company's liquidator is:
DMS Corporate Services Ltd.
c/o Nicola Cowan
DMS Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
TIGER GLOBAL: Placed Under Voluntary Wind-Up
--------------------------------------------
The sole member of Tiger Global India Real Estate Company, Ltd.,
on May 30, 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:
Steven Boyd
Steven Boyd
c/o Campbells
Willow House, Floor 4
Cricket Square
Grand Cayman KY1-9010
Cayman Islands
Telephone: +1 (345) 949 2648
Facsimile: +1 (345) 949 8613
WACK INVESTMENTS: Creditors' Proofs of Debt Due July 18
-------------------------------------------------------
The creditors of Wack Investments Limited are required to file
their proofs of debt by July 18, 2017, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on May 30, 2017.
The company's liquidator is:
Ian Phillips
2nd Floor Canella Court, Suite 4210
48 Market Street, Camana Bay
P.O. Box 32203 Grand Cayman, KY1-1208
Cayman Islands
Telephone: (345) 749-3344
Facsimile: (345) 749-2230
WHITE OAK: Creditors' Proofs of Debt Due July 30
------------------------------------------------
The creditors of White Oak Strategic Fund Ltd are required to file
their proofs of debt by July 30, 2017, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on May 31, 2017.
The company's liquidator is:
Margot MacInnis
Borrelli Walsh (Cayman) Limited
Harbour Place, Ground Floor
103 South Church Street, George Town
Grand Cayman
Cayman Islands
P.O. Box 30847 Grand Cayman KY1-1204
Cayman Islands
Telephone: +1 (345) 743 8810
Facsimile: +1 (345) 743 8801
WIMBLEDON FUND: Commences Liquidation Proceedings
-------------------------------------------------
At an extraordinary general meeting held on May 23, 2017, the
shareholders of The Wimbledon Fund, SPC resolved 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:
Michael Pearson
c/o Trudy-Ann Scott
FFP (Cayman) Limited
Harbour Centre, 2nd Floor
42 North Church Street, George Town, Grand Cayman
10 Market Street, #769, Camana Bay
Grand Cayman KY1-9006
Cayman Islands
Telephone: +1 (345) 947 5854
e-mail: trudyann.scott@ffp.ky
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: 20% Tax on Soft Drinks Will Impact Jobs
-----------------------------------------------------------
Dominican Today reports that Dominican Industries Association
(AIRD) Executive Vice President Circe said that the proposed 20%
tax on soft drinks or non-alcoholic beverages with sugar content
would hurt an industry that employs more than 42,000 people and a
key pillar of domestic production.
In a letter to the author of the bill, Deputy Ramon Cabrera, the
AIRD notes that the non-alcoholic beverages industry with sugar
content contributes more than 4,800 jobs with annual wages
exceeding RD$2.2 billion, according to Dominican Today.
The report notes that Mr. Almanzar said the industry indirectly
contributes more than 38,000 jobs, with salaries surpassing RD$11
billion annually.
"A reduction in consumption of the BNAA-induced tax would affect
the domestic industry, losing important jobs directly and
indirectly affecting other industries linked to the value chain of
such beverages," says the letter delivered to the Chamber of
Deputies, the report relays.
The industrialists also emphasize that a cutback in production
derived from reduced consumption would impact some 42,000
families, 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
===========
UNIFIN FINANCIERA: Fitch Affirms 'BB' IDR; Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed the Long- and Short-Term Foreign and
Local Currency Issuer Default Ratings (IDRs) of Unifin Financiera,
S.A.B. de C.V. Sofom E.N.R. (Unifin) at 'BB'/'B'. The Long- and
Short-Term National Scale ratings were also affirmed at
'A(mex)'/'F1(mex)'. The Rating Outlook on the Long-Term ratings is
Stable.
KEY RATING DRIVERS
IDRs, National Scale and Senior Unsecured Debt Ratings
Unifin's ratings reflect its moderately sized franchise in the
financial sector, its sound national market position in leasing,
and business concentration. It also reflects its business
expertise and robust legal resources for collection purposes,
which have allowed it to consistently generate earnings and
maintain adequate asset quality under sustained expansion.
Unifin's ratings also reflect its aggressive growth and recurrent
dividend payment that rapidly have weakened capital and leverage
ratios. Unifin's ratings also consider the company's improved but
still concentrated securitizations funding profile, as well as,
its proactivity in mitigated its market risks (interest rate and
currency) through hedging practices.
Unifin's weakened capitalization and leverage ratios are driven by
the accelerated growth and recurrent dividend payment. As of March
2017, Unifin's leverage (measured as total debt to tangible
equity) reached 8.1x (Dec 2016: 7.4x), which Fitch considers is
the company's weakest link at the current rating level. Unifin is
planning to strengthen its capitalization metrics in the next 18
months through an extraordinary capital injection that would
relieve capital pressures, driving the debt to tangible capital
ratio to nearly 5x. Fitch's expectation that such plans are likely
to be completed over the projected timeframe, is highly
influencing the rating affirmation and the Stable Outlook.
Unifin is the national leader for specialized independent (i.e.
not related to a banking-holding company) leasing in Mexico and
still holds third place within the total leasing sector. Fitch
believes that Unifin's growth targets are aggressive. At end of
March 2017, Unifin's loan portfolio grew approximately 61% over
YoY, the entity expects to reduce its growth pace during 2017 to
around 25%, a level that is still high but more in line with its
relatively ample internal capital generation.
Unifin's ample expertise drives its strong ability to consistently
generate earnings through economic cycle. Over the past four
years, pre-tax income to average assets and operating ROE averaged
5.5% and 43%, respectively. As of March 2017, pre-tax income to
average assets and operating ROE stood at 3.9% and 31%,
respectively. The entity's good financial results are driven by
controlled operational expenses and credit costs, its business
focus on SMEs and its reasonable interest margins, albeit
declining due to a natural pressure given the entity reliance on
wholesale funding and the recurrent interest rate increases in the
country. Fitch considers Unifin's earnings as somewhat
overestimated because of its low reserve coverage relative to
other institutions, although the robust credit process provide
some room to maintain relatively tight reserve coverage ratios.
Unifin's asset quality is adequate and has had reasonable
nonperforming loans (NPLs) levels, almost no chargeoffs and very
low levels of foreclosed assets. However, it still exhibits
limited reserve coverage. In Fitch's view, Unifin's adherence to
its credit policy, adequate collection practices, ownership of the
leased assets and the solid legal methods to recover them mitigate
the possibility of a material deterioration of its portfolio.
Under Fitch's metrics, the NPL ratio (NPLs at 90 days overdue plus
the remaining contractual rents) averaged around 3.7% in the past
four years with reserves for impaired loans coverage of less than
25% impaired loans (as of March 2017 3.5% and 18.3%,
respectively).
Concentration per client relative to capital has remained at
stable levels. The top 20 obligors represented 0.93x Unifin's
total equity as of March 2017 (March 2016: 0.90x). However,
concentration per client continues to be exacerbated by the low
loan loss reserve cushion, which does not even cover the main
debtor.
Unifin has diversified its funding sources. However, in Fitch's
view it still holds important concentrations in market debt
issuances. Unifin is heavily reliant on wholesale debt through
local debt issuances via securitizations and international bonds
(62% of its total interest bearing liabilities). Nevertheless,
this funding structure is functional for Unifin because it helps
in maturity matching of its earning assets which are long-term
nature. As of March 2017, the weighted average maturity of the
company's total interest-bearing liabilities was 38 months versus
a loan portfolio with a weighted average maturity of 34 months. In
Fitch's view this adequately mitigates Unifin's liquidity risk.
Fitch considers that Unifin refinancing risk is carefully
monitored and managed because the company's has a more diversified
funding structure compared with some of its closest peers, has
well-planned liability-maturities and good financial flexibility.
Also, the reasonable flexibility provided by the current portfolio
securitizations and adequate levels of unencumbered loans help to
mitigate refinancing risk.
As of March 2017, Unifin's total available funding was MXN9
billion, which Fitch considers adequate for planned growth, the
company has access to 13 banks whose provide long-term credit
facilities, liquid assets that represented 25% of short-term
interest-bearing liabilities, and unencumbered loans of MXN13.5
billion (without residual values) or equivalent to 43% of total
loans. Unifin estimates one year of liquidity coming from
securitizations in case of market stress.
RATING SENSITIVITIES
IDRs, National Scale and Senior Unsecured Debt ratings
Unifin's ratings could be downgraded if its capitalization and
leverage metrics do not improve and remain consistently pressured.
Specifically if the total debt to tangible equity ratio remains
above 7x, in line with the figures reported in the latest
financial statements.
Upside potential is limited in view of the company's aggressive
capital management policies, but it could eventually arise,
contingent to material and permanent enhancements of Unifin's
capitalization and leverage ratios, particularly if the company's
total debt to tangible equity ratio is reduced and maintained
consistently at around 5x, while maintaining its sound other
financial fundamentals and a strong competitive position.
Fitch has affirmed the following ratings:
-- Long-Term Foreign and Local currency IDRs at 'BB';
-- Short-Term Foreign and Local currency IDRs at 'B';
-- National Scale Long-Term rating at 'A(mex)';
-- National Scale Short-Term rating at 'F1(mex)';
-- 7-year USD450 million 7.00% senior unsecured notes at 'BB';
-- 7-year USD400 million 7.25% senior unsecured notes at 'BB';
-- 5-year USD400 million 6.25% senior unsecured notes at 'BB'.
The Rating Outlook is Stable.
===========
P A N A M A
===========
* PANAMA: Climate Change Threatening Future Canal Expansion
-----------------------------------------------------------
EFE News reports that the projections prepared by the Panama Canal
regarding international trade demonstrate the need, within 15
years or less, for a second expansion of the waterway, but climate
change appears to present an obstacle to those plans due to its
effect on water sources.
"A fourth set of locks without more water is just a dream," said
Panama Canal Authority (ACP) administrator Jorge Quijano in
discussing the plans for a future second expansion of the waterway
just a few days before the one-year anniversary on June 26 of the
entry into service of the first expansion, according to EFE News.
A sign that climate change "is occurring" is that already in
Panama there has not been "as before, continuous precipitation in
. . . May, June and July," when -- in the past -- there "always"
used to be rain "almost every day, the report relays."
"Now we're seeing . . . three days of a lot of rain and then three
days without rain. And that is part of climate change. For the
Canal, water is life, just as it is for us humans," he said, the
report notes.
The interoceanic waterway, through which 6 percent of world trade
passes, experienced the effect of climate change in 2016, when the
two artificial lakes that feed it -- Gatun and Alhajuela -- began
the year at abnormally low levels, the report discloses.
That was a "unique situation in the past 100 years," said ACP
Environment, Water and Energy Vice President Carlos Vargas at the
time, the report says.
The ongoing drought in May 2016 forced restricting the size of the
vessels passing through the Canal, and even the expanded Canal was
inaugurated last June 26 with a lower water level than would have
been available under "normal" conditions, the report notes.
Last April, the Canal reported that hydroelectric production had
been suspended at one of the two lakes to be able to maintain the
water level needed for regular operation amid the "intense"
drought that was still under way, the report relays.
The two lakes supply not only the Canal, but also 55 percent of
Panama's population, which is concentrated in Panama City and its
vicinity, the report notes.
Human consumption of water "has been increasing to incredible
levels," said Mr. Quijano, going on to complain about the loss of
potable water due to the repeated breakage of pipes in the
metropolitan area, a situation that the authorities must resolve
"because it's impacting the reservoirs," the report adds.
======================
P U E R T O R I C O
======================
AEROPOSTALE: Sues Hilco, et al., for Turnover of $1.3M Funds
------------------------------------------------------------
BankruptcyData.com reported that Aeropostale Inc. filed with the
U.S. Bankruptcy Court a complaint against Hilco Merchant
Resources, Gordon Brothers Retail Partners and Aero Opco
(Defendants). Aeropostale argues, "Plaintiffs bring this action to
obtain an order directing Defendants to turnover $1,335,471.84,
the amount of a vendor deposit made by the Debtors to Star Fancy
Holdings in July 2016 as a prepayment for certain goods, that
Defendants are wrongfully withholding from the estates. On
September 13, 2016, shortly after the Debtors paid the Deposit to
Star Fancy, the Court approved the sale of substantially all of
the Debtors' business to Aero OpCo (the 'Sale'). In connection
with the Sale, the Debtors and Aero OpCo designated a joint
venture composed of Hilco and GB to serve as their exclusive Agent
for purposes of selling certain inventory including that which was
subject to open purchase orders at the time of the Sale, including
the goods that the Debtors purchased from Star Fancy. Vendor
deposits, like the Star Fancy Deposit, were expressly excluded
from the Sale. Under the terms of the Purchase Agreement and
Agency Agreement, the Agent, upon delivery of goods subject to a
vendor deposit paid by the Debtors, is required to reimburse the
Debtors for the full amount of the vendor deposit. In October
2016, Star Fancy delivered the goods subject to the Debtors'
prepayment Deposit, thus triggering the Agent's obligation to
reimburse the Debtors for the Deposit. The Debtors promptly
demanded that the Agent turn over the full amount of the Deposit
to them. The Agent has refused to do so."
About Aeropostale, Inc.
Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of
casual apparel and accessories, principally serving young women
and men through its Aeropostale(R) and Aeropostale Factory(TM)
stores and website and 4 to 12 year-olds through its P.S. From
Aeropostale stores and website. The Company provides customers
with a focused selection of high quality fashion and fashion basic
merchandise at compelling values in an exciting and customer
friendly store environment. Aeropostale maintains control over
its proprietary brands by designing, sourcing, marketing and
selling all of its own merchandise. As of May 1, 2016, the
Company operated 739 Aeropostale(R) stores in 50 states and Puerto
Rico, 41 Aeropostale stores in Canada and 25 P.S. from
Aeropostale(R) stores in 12 states. In addition, pursuant to
various licensing agreements, the Company's licensees currently
operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations
in the Middle East, Asia, Europe, and Latin America. Since
November 2012, Aeropostale, Inc., has operated GoJane.com, an
online women's fashion footwear and apparel retailer.
Aeropostale, Inc., and 10 of its affiliates each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 16-11275) on May 4, 2016. The petitions were signed
by Marc G. Schubac, senior vice president, general counsel and
secretary.
The Debtors disclosed assets of $354.38 million and total debt
of $390.02 million as of Jan. 30, 2016.
The Debtors hired Weil, Gotshal & Manges LLP as counsel; FTI
Consulting, Inc., as restructuring advisor; Stifel, Nicolaus &
Company, Inc., and Miller Buckfire & Company LLC as investment
bankers; RCS Real Estate Advisors as real estate advisors; Prime
Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as
Canadian counsel; and Togut, Segal & Segal LLP as conflicts
counsel.
Judge Sean H. Lane is assigned to the cases.
The U.S. trustee for Region 2 on May 11, 2016, appointed seven
creditors of Aeropostale Inc. to serve on the official committee
of
unsecured creditors. The Committee retained Pachulski Stang Ziehl
& Jones LLP as counsel.
PUERTO RICO: Parties Object to Commonwealth-COFINA Procedures
-------------------------------------------------------------
BankruptcyData.com reported that multiple parties -- including
Mutual Fund Group and the Puerto Rico Funds, National Public
Finance Guarantee, Ambac Assurance and the COFINA Senior
Bondholders' Coalition -- filed with the U.S. Bankruptcy Court
separate objections to the Commonwealth of Puerto Rico's motion
for an order approving procedures to resolve the Commonwealth-
COFINA dispute. The Mutual Fund Group and the Puerto Rico Funds
objection asserts, "The Mutual Fund Group and the Puerto Rico
Funds ('Objectors'), who collectively hold over $4 billion in
COFINA senior and subordinate bonds, object to the Debtors' Motion
for Order Approving Procedure to Resolve Commonwealth-COFINA
Dispute . . . the Court should deny the Protocol Motion. The
Oversight Board seeks -- without any legal authority -- to wrest
control over the Commonwealth-COFINA Dispute4 through entry of an
order (the' Proposed Order') that would exceed the bounds of
PROMESA and violate the United States Constitution. The Proposed
Order would appoint an agent to enforce COFINA's right to pledged
revenues in which COFINA itself has only minimal equity -- the
agent would act as a receiver. There is no authority for such
appointment. The Proposed Order provides for a collusive
litigation between the Oversight Board's own agents, on the
Oversight Board's own schedule, with the Oversight Board retaining
the power to settle, in violation of Article III of the United
States Constitution . . . Puerto Rico law is the lynchpin. Under
the United States Constitution, federal law cannot deprive COFINA
and its bondholders of property interests that are valid under
Puerto Rico law. If, under Puerto Rico law, COFINA owns the
revenues it pledged to its bonds, PROMESA is powerless to take the
revenues away. The only issue in this dispute is whether Puerto
Rico statutes transferring revenues to COFINA and securing its
bonds are valid under Puerto Rico's Constitution -- an
unprecedented issue that can only be decided definitively by the
Puerto Rico Supreme Court, and can be so decided prior to November
1."
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ("PROMESA").
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21.
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., and Philip M. Abelson, Esq., of
Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges
are onboard as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets
Inc. is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at:
https://cases.primeclerk.com/puertorico
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
Bondholders' Attorneys
Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin
Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc.,
Franklin Advisers, Inc., and the First Puerto Rico Family of
Funds, which collectively hold over $3.5 billion in COFINA Bonds
and over $2.9 billion in other bonds issued by Puerto Rico and
other instrumentalities, including over $1.8 billion of Puerto
Rico general obligation bonds ("GO Bonds").
White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual
Advisers LLC, Monarch Alternative Capital LP, Senator Investment
Group LP, and Stone Lion Capital Partners L.P.
Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.
Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).
PUERTO RICO: Fiscal Board Slammed for Restructuring Deal Delay
--------------------------------------------------------------
Alex Wolf, writing for Bankruptcy Law360, reports that Rep. Rob
Bishop, R-Utah, the head of the U.S. House Committee on Natural
Resources, sent a letter to the chairman of the Financial
Oversight and Management Board of Puerto Rico, criticizing the
board supervising Puerto Rico's troubled finances for delaying
approval of a $9 billion restructuring deal between the
territory's power utility and its bondholders that Congress has
already blessed.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ("PROMESA").
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21.
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., and Philip M. Abelson, Esq., of
Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges
are onboard as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets
Inc. is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at:
https://cases.primeclerk.com/puertorico
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
Bondholders' Attorneys
Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin
Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc.,
Franklin Advisers, Inc., and the First Puerto Rico Family of
Funds, which collectively hold over $3.5 billion in COFINA Bonds
and over $2.9 billion in other bonds issued by Puerto Rico and
other instrumentalities, including over $1.8 billion of Puerto
Rico general obligation bonds ("GO Bonds").
White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual
Advisers LLC, Monarch Alternative Capital LP, Senator Investment
Group LP, and Stone Lion Capital Partners L.P.
Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.
Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).
* Moody's Lowers Ratings on 57 Tranches Backed by P.R. RMBS Loans
-----------------------------------------------------------------
Moody's Investors Service has downgraded the rating of 57 tranches
from three transactions, backed by Puerto Rican RMBS loans, issued
by multiple issuers.
Complete rating actions are:
Issuer: CSMC Mortgage-Backed Trust Series 2006-9
Cl. 1-A-1, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to Caa1 (sf)
Cl. 2-A-1, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to Caa1 (sf)
Cl. 3-A-1, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-1, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-2, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-3, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-4, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-5, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-6, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-7, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-8, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-9, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-10, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-11, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-12, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-13, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-14, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 4-A-15, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. D-P, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to Caa1 (sf)
Cl. D-X, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to Caa1 (sf)
Issuer: Deutsche Mortgage Securities, Inc. Mortgage Loan Trust,
Series 2006-PR1
Cl. 1-A-1, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to Caa1 (sf)
Cl. 2-PO, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 3-PO, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 4-PO, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-PO, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 2-A-F, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 2-A-S, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 3-A-I, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 3-A-S, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 3-A-F-1, Affirmed A2 (sf); previously on Jan 18, 2013
Downgraded to A2 (sf)
Underlying Rating: Downgraded to Caa2 (sf); previously on Aug 8,
2014 Downgraded to B3 (sf)
Financial Guarantor: Assured Guaranty Municipal Corp (Affirmed at
A2, Outlook Stable on August 8, 2016)
Cl. 3-A-F-2, Affirmed A2 (sf); previously on Jan 18, 2013
Downgraded to A2 (sf)
Underlying Rating: Downgraded to Caa2 (sf); previously on Aug 8,
2014 Downgraded to B3 (sf)
Financial Guarantor: Assured Guaranty Municipal Corp (Affirmed at
A2, Outlook Stable on August 8, 2016)
Cl. 4-A-F-1, Affirmed A2 (sf); previously on Jan 18, 2013
Downgraded to A2 (sf)
Underlying Rating: Downgraded to Caa2 (sf); previously on Aug 8,
2014 Downgraded to B3 (sf)
Financial Guarantor: Assured Guaranty Municipal Corp (Affirmed at
A2, Outlook Stable on August 8, 2016)
Cl. 4-A-F-2, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 4-A-I-1, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 4-A-I-2, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 4-A-S-1, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 4-A-S-2, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-F-1, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-F-2, Affirmed A2 (sf); previously on Jan 18, 2013
Downgraded to A2 (sf)
Underlying Rating: Downgraded to Caa2 (sf); previously on Aug 8,
2014 Downgraded to B3 (sf)
Financial Guarantor: Assured Guaranty Municipal Corp (Affirmed at
A2, Outlook Stable on August 8, 2016)
Cl. 5-A-F-3, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-F-4, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-I-1, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-I-2, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-I-3, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-I-4, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-S-1, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-S-2, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-S-3, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Cl. 5-A-S-4, Downgraded to Caa2 (sf); previously on Aug 8, 2014
Downgraded to B3 (sf)
Issuer: PRIME Mortgage Trust 2006-DR1
Cl. I-A-1, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to B2 (sf)
Cl. I-A-2, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to B2 (sf)
Cl. II-A-1, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to B3 (sf)
Cl. II-A-2, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to B3 (sf)
Cl. I-PO, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to B2 (sf)
Cl. I-X, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to B2 (sf)
Cl. II-PO, Downgraded to Caa2 (sf); previously on Jan 12, 2011
Downgraded to B3 (sf)
Cl. II-X, Downgraded to Caa2 (sf); previously on Jun 16, 2015
Downgraded to B3 (sf)
RATINGS RATIONALE
The actions reflect the recent performance of the underlying pools
and reflect Moody's updated loss expectations on the pools. The
ratings downgraded are a result of the continued depreciation or
lack of credit enhancement available to bonds. In addition, the
rating actions take into account the continued adverse pressures
on Puerto Rico's economy, such as its persistent budget deficits
and high public debt, and Moody's expectation that delinquencies
(and future defaults) will remain high as a result of Puerto
Rico's extended recession.
The principal methodology used in these ratings was "US RMBS
Surveillance Methodology" published in January 2017.
Additionally, the methodology used in rating CSMC Mortgage-Backed
Trust Series 2006-9 Cl. 4-A-2, Cl. 4-A-3, Cl. 4-A-4, Cl. 4-A-5,
Cl. 4-A-6, Cl. 4-A-7, Cl. 4-A-8, Cl. 4-A-10, Cl. 4-A-11, and Cl.
D-X, Deutsche Mortgage Securities, Inc. Mortgage Loan Trust,
Series 2006-PR1 Cl. 2-A-S, Cl. 3-A-S, Cl. 4-A-S-1, Cl. 4-A-S-2,
Cl. 5-A-S-1, Cl. 5-A-S-2, Cl. 5-A-S-3, and Cl. 5-A-S-4, and PRIME
Mortgage Trust 2006-DR1 Cl. I-X and Cl. II-X was "Moody's Approach
to Rating Structured Finance Interest-Only (IO) Securities"
published in June 2017.
Factors that would lead to an upgrade or downgrade of the ratings:
Ratings in the US RMBS sector remain exposed to the high level of
macroeconomic uncertainty, and in particular the unemployment
rate.
The unemployment rate fell to 4.3% in May 2017 from 4.7% in May
2016. Moody's forecasts an unemployment central range of 4.5% to
5.5% for the 2017 year. Deviations from this central scenario
could lead to rating actions in the sector.
House prices are another key driver of US RMBS performance.
Moody's expects house prices to continue to rise in 2017. Lower
increases than Moody's expects or decreases could lead to negative
rating actions.
Finally, performance of RMBS continues to remain highly dependent
on servicer procedures. Any change resulting from servicing
transfers or other policy or regulatory change can impact the
performance of these transactions.
================================
T R I N I D A D & T O B A G O
================================
BPTT: Protest at Firm's Pt Galeota Operations
---------------------------------------------
Trinidad Express reports that weeks after 22 men living in Mayaro
and Guayaguayare lost their jobs at energy bpTT, residents staged
a protest outside bpTT's headquarters in Guayaguayare.
Head of the Mayaro/Guayaguayare Unemployment Association Devon
Williams said that the fired workers were replaced by people, some
of whom live outside of their community, according to Trinidad
Express.
The report notes that the protest began at the gates of bpTT's
head office, with dozens of residents wearing red tee shirts,
bearing placards and singing and chanting in protest.
The report relays that Mr. Williams said they demonstrated against
the lack of jobs being made available to residents in the
community.
"The company is bringing in a lot of foreign contractors when
there are local contractors that can do the same job. It is not
sitting very well with us," said Mr. Williams, the report notes.
"They are not really giving back enough to the community."
Mr. Williams said that three weeks ago the residents were fired
from a rig after concerns were raised over safety issues, the
report relays.
During a recent visit to Trinidad, BP Chief Executive, Upstream
Bernard Looney expressed BP's commitment to Trinidad and Tobago,
the report notes.
A release posted on the company's website stated that at an event
held on June 1 to mark several milestones achieved by the company,
BPTT announced exploration success in its Savannah and Macadamia
wells and the sanction of its latest project, Angelin, the report
says.
"The 2017 start ups of TROC, Sercan II and the imminent start-up
of Juniper provide near term relief to the gas supply issues, the
sanction and anticipated start-up of Angelin in 2019 ensures that
gas volumes can be maintained into the medium term and the
exploration success gives confidence to maintaining gas supply
levels into the longer term, post 2020", the statement said, the
report notes.
Mr. Looney had said that the milestones announced represent BP's
confidence in Trinidad and Tobago and commitment to deliver over
the short to long-term, the report relays.
"We remain committed to being the best stewards of our acreage and
to ensuring that Trinidad and Tobago benefits from our investments
here. We will continue to invest in our people, in our technology
and in our operations to sustain production and to actively
participate in the broader development of the country", the report
quoted Mr. Looney as saying.
Express Multimedia has contacted bpTT's communications department
and is awaiting a company response, the report adds.
=================
V E N E Z U E L A
=================
VENEZUELA: Protesters, Security Forces Clash Again
--------------------------------------------------
Associated Press reports that young protesters broke down a metal
fence guarding an air base in Caracas before being repelled by
security forces firing tear gas in another day of antigovernment
protests in Venezuela's capital.
Demonstrators threw stones, and some protesters were injured,
according to Associated Press.
The clashes took place after a peaceful mass demonstration next to
La Carlota base, where a 22-year-old protester was killed this
week when a national guardsman shot him in the chest at close
range with rubber bullets, the report notes.
Protesters also fought with security forces outside the base on
June 23, and activists burned some vehicles during the
confrontation, the report relays.
President Nicolas Maduro said in an address to troops that he had
managed to break up a U.S.-backed plot to oust him, the report
says. Like his predecessor, the late Hugo Chavez, Mr. Maduro
frequently accuses the U.S. of trying to topple Venezuela's
socialist administration, the report relays.
Mr. Maduro praised Venezuela's military for standing by the
government, and he warned that attempts are under way to try to
sow further dissent, the report notes.
More than 70 people have been killed and hundreds injured in
almost three months of demonstrations, the report adds.
As reported by The Troubled Company Reporter-Latin America,
S&P Global Ratings, on Feb. 28, 2017, affirmed its 'CCC' long-term
foreign and local currency sovereign credit ratings on the
Bolivarian Republic of Venezuela. The outlook on both long-term
ratings remains negative. S&P also affirmed its 'C' short-term
foreign and local currency sovereign ratings. In addition, S&P
affirmed its 'CCC' transfer and convertibility assessment on the
sovereign.
=================
X X X X X X X X X
=================
* BOND PRICING: For the Week From June 19 to June 23, 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 * * *