/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170801.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, August 1, 2017, Vol. 18, No. 151 Headlines A R G E N T I N A BANCO DE LA PROVINCIA: S&P Affirms 'B' ICRs, Outlook Still Stable TRANSPORTADORA DE GAS: S&P Affirms 'B' CCRs, Outlook Still Stable B E L I Z E BELIZE: Teams Up With IDB to Ensure Sustainable Development B R A Z I L BRAZIL: Has Emerged From Crisis, President Says BRAZIL: DBRS Confirms BB LT Foreign Currency Issuer Rating CBC AMMO: Fitch Assigns 'BB' First-Time IDR; Outlook Stable USJ ACUCAR: S&P Affirms 'CCC+' CCR & Revises Outlook to Stable P U E R T O R I C O AEROPOSTALE INC: Court Approves Stipulation on $42.7M Claim COSTA DORADA: Hires MRO Attorneys at Law as Bankruptcy Counsel HALAIS GROUP: Wants To Obtain $700,000 in Financing ONCOLOGY INSTITUTE: August 22 Plan and Disclosures Hearing ONCOLOGY INSTITUTE: Unsecureds to Get $13,749 by 2021 T R I N I D A D & T O B A G O TRINIDAD CEMENT: Sees Decline in Revenue V E N E Z U E L A VENEZUELA: U.S. Puts More Venezuelan Officials Under Sanctions X X X X X X X X X LATAM: Spiralling Debt in Barbados and Trinidad Worrying CDB - - - - - ================= A R G E N T I N A ================= BANCO DE LA PROVINCIA: S&P Affirms 'B' ICRs, Outlook Still Stable ----------------------------------------------------------------- S&P Global Ratings affirmed its 'B' foreign and local currency issuer credit ratings on Banco de la Provincia de Buenos Aires (BPBA). The outlook remains stable. The SACP is 'b'. The ratings on the BPBA reflect the bank's satisfactory business position assessment, which reflects the bank's solid competitive position as the second-largest bank in Argentina and its stable and large customer base partly; its position is moderated by potentially inherent political influence on the bank which could negatively affect the banks operation. The ratings are underpinned by the bank's very weak capital and earnings based on our forecasted risk-adjusted capital ratio (RAC) of 2.9% for the next 12-18 months. The ratings on BPBA also reflects the bank's manageable credit losses, which are in line with local peers in Argentina, in spite of a moderate increase in nonperforming loans (NPLs), which S&P believes continue to be at adequate levels. S&P said, "Additionally, we believe the bank has above-average funding, given BPBA's status as the provincial government's paying agent, which provides greater stability, and its large deposit base. It has adequate liquidity with metrics that, though high, are in line with those of other rated banks in the country, considering high liquidity levels in the system. "The stable outlook on BPBA for the next 12 months reflects the stable outlook on the province of Buenos Aires -- which mirrors the stable outlook on the sovereign's local currency rating -- and our view that the bank will maintain its solid competitive position as the second-largest public lender in Argentina. We expect the bank to maintain its large and stable customer base, and asset quality metrics to continue to be manageable, despite an increase in NPLs." TRANSPORTADORA DE GAS: S&P Affirms 'B' CCRs, Outlook Still Stable ----------------------------------------------------------------- S&P Global Ratings affirmed its 'B' local and foreign currency ratings on Transportadora de Gas del Sur S.A. (TGS). The outlook remains stable. S&P said, "The ratings on TGS reflect our expectation that despite its solid current and projected credit metrics and adequate liquidity position, the 'B' sovereign rating on Argentina limits TGS's credit quality because the company won't be able to withstand a sovereign stress scenario. The sovereign stress scenario includes high inflation, sharp currency depreciation, a severe decrease in the GDP, and frozen rates for utilities." Overall, the company's performance for the 12 months ended March 31, 2017, remained in line with S&P's expectations. The improvement in EBITDA was mainly due to the transportation segment, which received a 200% rate increase in order to compensate for the company's frozen rates during the past 15 years. Moreover, a slight improvement in liquid natural gas (NGL) international prices and low export rights of 1% also contributed to higher EBITDA. Despite the company's dollar-denominated debt, its amortizing structure reduces the outstanding debt. S&P said, "We believe that the Integral Tariff Review (ITR) for TGS's regulated segment, which the government approved in April 2017, will bolster the company's financial performance. The ITR contemplates a total increase of 200%, from which the company already received 58% in April 2017, and will receive the remaining in two tranches in December 2017 and April 2018. Moreover, inflation adjustments will be applied every six months starting in December 2017, covering the second half of that year, until 2021. "The ITR also authorized an Operating Expenses and Capital Expenditures plan specific for TGS for the next five years. As a result, in the next two years and thanks to the improvement in the regulatory framework, we expect TGS's financial performance to remain more stable and predictable and less exposed to commodity prices and volume flows." =========== B E L I Z E =========== BELIZE: Teams Up With IDB to Ensure Sustainable Development ----------------------------------------------------------- Top executives from the Inter-American Development Bank (IDB) visited Belize to discuss with key government officials and representatives of the private sector ways of deepening their partnership and cooperation to ensure the country's sustainable development. IDB Executive Vice President Julie T. Katzman, accompanied by IDB Country Representative Cassandra T. Rogers and Annette Killmer, a key advisor in the Bank's Climate Change and Sustainable Development sector, met with Prime Minister Dean O. Barrow and members of the Cabinet during a three-day visit July 24-26. Also present at the meetings were Anneke Jessen, Operations Senior Advisor for the IDB's Country Department for Central America, Mexico, Panama and the Dominican Republic; Francisco Mayorga, Alternate Executive Director for the Central American Chair of the IDB Board; and Elvira Mendez, Junior Counsellor for Belize. The IDB executives and specialists also participated in a high- level panel discussion, "Partners in Sustainable Development Forum" co-organized by the Bank and the Belizean government as part of a year-long celebration of the country's 25th anniversary of IDB membership. In her closing remarks at the Forum, which was attended by more than 70 representatives of Belize's public and private sectors as well as civil society, Ms. Katzman emphasized the need for careful, long-term planning to ensure that the country takes full advantage of its unique reserve of natural resources, biodiversity and cultural heritage while protecting them from over-exploitation and natural disasters. "Sustainable development is without a doubt at the core of the future of Belize, of the economy and of people's quality of life and it is essential that everybody get this right going forward," said Ms. Katzman. "We are focused on building lasting solutions to difficult problems that have been bottlenecks for the country. Being able to solve [those challenges] in an inclusive way that creates new entrepreneurial opportunities for people who are economically disadvantaged is the kind of solution that we are looking at to really get to the heart of what we mean as sustainability." It is essential, she emphasized, to work together on a comprehensive plan to reduce Belize's vulnerability to climate change, storms and flooding, noting that for each dollar spent on risk reduction investments, it is possible to reduce up to four dollars in future losses caused by disasters. Ms. Killmer, of the Bank's Climate Change and Sustainable Development Sector, said that 29% of the IDB's $9.3 billion in approvals for sovereign-guaranteed lending in Latin America and the Caribbean in 2016 was dedicated to projects focusing on climate change and environmental sustainability. "In Belize, where natural capital is at the core of economic and social development, mainstreaming biodiversity and integrating it in key economic sectors with measures to strengthen resilience to climate change is paramount for sustainable development," she said during the Forum. Preservation of natural capital is vital in a country like Belize, where the tourism sector supports one in every six jobs, she noted. The IDB strongly supports the Government's Growth and Sustainable Development Strategy, its Coastal Zone Management Plan, and its Sustainable Tourism program, the second phase of which the Bank is currently financing. The IDB also is closely collaborating on the new master transport plan, which will increase regional competitiveness and expand the number of communities able to capitalize on the country's tourism potential. During their mission in Belize, the IDB delegation, accompanied by officials of relevant ministries, visited sites associated with the Sustainable Tourism Program II, financed by the IDB, including the international water taxi terminal in San Pedro, the Mountain Pine Ridge Forest Reserve, as well as the Caracol archeological site. In addition to their meeting with the Prime Minister, Joseph Waight, Financial Secretary of the Ministry of Finance and Natural Resources, and Yvonne Hyde, CEO of the Ministry of Economic Development, Petroleum, Investment, Trade and Commerce, they also met with Arlene Young, director of the Coastal Zone Management Authority and Institute (CZMAI). At the "Partners in Sustainable Development Forum", Minister Hyde gave opening remarks and the panel discussion, moderated by Dr. Elma Kay, Administrative and Science Director of the University of Belize's Environmental Research Institute, included Dr. Lennox Gladden , policy coordinator for the Fisheries, Forestry, Sustainable Development, the Environment, Climate Change and Solid Waste Management Authority; Mr. Yashin Dujon, Chief Executive Officer, Ministry of Tourism and Civil Aviation; Mrs. Carolyn Trench-Sandiford, President and Executive Director, Belize Association of Planners/Caribbean Planners Association; Ms. Kay Menzies, Co-Chair, Economic Development Council-Department of Public-Private Dialogue; and Mrs. Natalie Goff, General Manager, Development Finance Corporation. =========== B R A Z I L =========== BRAZIL: Has Emerged From Crisis, President Says ----------------------------------------------- EFE News reports that Brazil's president said that the South American country was no longer in an economic crisis and had regained the confidence of foreign investors. "Brazil once again is becoming a country in which everyone wants to invest," Michel Temer said prior to a signing ceremony in Brasilia for concessions to operate airports in the cities of Florianopolis, Fortaleza, Porto Alegre and Salvador, according to EFE News. The rights to operate airports in Porto Alegre and Fortaleza were awarded in March to Germany's Fraport (Frankfurt Airport Services), while France's Vinci and Switzerland's Zurich International Airport won concessions for airports in Salvador and Florianopolis, respectively, the report notes. The three groups, the lone participants in the auction, paid a total of BRL3.72 billion (some US$1.18 billion) for the rights to operate the airports, or 23.42 percent more than the minimum required by the government, the report relays. They also pledged to invest a total of BRL6.61 billion to modernize and expand the airports, the report relays. In his speech, Mr. Temer expressed concern about the high number of unemployed people (nearly 14 million) in Brazil, which has been in recession since 2015, but he said the economy was showing clear signs of recovery and hailed the recent drop in the unemployment rate, the report relays notes. He also said the fact that German, French and Swiss companies had decided to invest in Brazil showed that confidence was returning, the report relays. The report notes that Mr. Temer, who since taking office last year has carried out an austerity drive aimed at getting Brazil's financial house in order, including successfully pushing for a spending cap that limits public spending to inflation for the next 20 years, credited his administration's "responsible" fiscal policy for the increase in investor confidence. His policies have been unpopular though, as reflected in an approval rating of just 5 percent, the lowest of any Brazilian president in decades, according to a survey released, the report relays notes. The president also is in legal trouble, with lawmakers set to vote next week on whether to allow him to be tried by the Supreme Court for allegedly accepting bribes from meatpacking giant JBS, the report adds. BRAZIL: DBRS Confirms BB LT Foreign Currency Issuer Rating ---------------------------------------------------------- DBRS, Inc. has confirmed Brazil's Long-Term Foreign Currency - Issuer Rating at BB and Long-Term Local Currency - Issuer Rating at BB (high). The trend on both ratings is Negative. In addition, DBRS has confirmed Brazil's Short-Term Foreign Currency - Issuer Rating at R-4 with a Stable trend and Short-Term Local Currency - Issuer Rating at R-3 with a Negative trend. The rating confirmation reflects improvements in macroeconomic policymaking as well as advances in the government's reform agenda. In the last 12 months, prudent monetary policy consolidated inflation at low levels and re-anchored inflation expectations around the target, Congress passed a constitutional amendment to cap the pace of government spending, and labor regulation was reformed to improve market flexibility. In addition, Brazil is exiting a deep recession, though the pace of recovery will likely be gradual. The economy is expected to grow 0.3% in 2017 and 1.3% in 2018. The trend remains Negative, however, as recent political developments put the reform agenda at risk. Failure to pass pension reform in the near term would likely result in a downgrade of the ratings. Pension reform is essential to comply with the constitutional spending cap and stabilize public debt dynamics. Without pension reform, achieving fiscal consolidation targets will become increasingly difficult and will likely need to rely on measures that are less favorable to growth. Consequently, the outlook for public debt sustainability would likely weaken relative to our assumptions. The principal challenge for Brazil's credit profile is the fiscal deficit. The consolidated primary balance shifted from a surplus of 2.9% of GDP in 2011 to a deficit of 2.5% in 2016. While cyclical factors played a role, the deterioration was largely structural in nature. The Temer administration responded by implementing a gradual expenditure-based fiscal consolidation plan. If executed, DBRS estimates that the primary fiscal position will balance in 2021 and reach a surplus of 2.6% of GDP in 2026. Pension reform is essential, however, to comply with the constitutional expenditure ceiling and put fiscal accounts on a sustainable trajectory. Given the gradual pace of fiscal consolidation, public debt dynamics are not expected to stabilize in the near term. Public debt-to-GDP is expected to increase to 82% in 2017 and 86% in 2018. The upward trajectory then moderates as the fiscal adjustment proceeds. Based on the projected fiscal consolidation path, debt ratios will peak at approximately 93% of GDP in 2023. The high stock of debt leaves little room to maneuver in the event of adverse shocks. Recent developments in the Car Wash probe, however, threaten to derail the reform agenda. Last month, Prosecutor General Rodrigo Janot charged President Michel Temer with corruption. The Lower House is set to vote on whether to send the case to the Supreme Court in early August. While President Temer's congressional support appears strong enough to fend off criminal prosecution for now, prospects for pension reform are diminishing. Coalition lawmakers are starting to position themselves ahead of the 2018 election. DBRS believes that pension reform is still possible later this year, but as the costs of aligning with an unpopular president rise, the reform's narrow path to approval becomes even narrower. The ratings reflect DBRS's assessment that Brazil's medium-term growth prospects are weak. The IMF projects that Brazil will expand on average 2.0% per year from 2019-2022, below most emerging market peers. Potential growth is hindered by interlinking structural constraints of low investment, high business costs and weak competitive forces. Over the last decade, investment averaged just 20% of GDP per year despite the rapid growth of earmarked lending. Underinvestment is especially evident in Brazil's infrastructure. In particular, bottlenecks in transport infrastructure limit domestic market integration and weaken international competitiveness. Productivity is also held back by the closed nature of the economy. Due in part to tariff barriers, high compliance costs, and inward-looking policy, trade penetration in Brazil is among the lowest in the world. The consequence of limited integration is that Brazil does not fully benefit from the potential efficiency gains derived from specialization and trade. Notwithstanding Brazil's challenges, the ratings are supported by several fundamental strengths. Brazil is a large and diversified economy with abundant natural resources. The banking system is sufficiently capitalized to digest higher credit losses without posing any systemic concerns. The external accounts are also sound from both a flow and stock perspective, with a flexible exchange rate facilitating adjustments to global conditions. In addition, the government has made progress on the policy front. The central bank is easing monetary policy amid a substantially improved inflation outlook. Inflation declined to 3.0% in June 2017 after peaking at 10.7% in January 2016. The disinflation trend is generalized, with most categories of goods and services experiencing annual price increases at or below the inflation target. Inflation expectations have also settled around the target. Enhanced credibility combined with the tapering of earmarked lending should strengthen the effectiveness of monetary policy. The Temer administration is also taking steps to improve the investment climate. Regulatory changes aim to reinvigorate infrastructure concessions, on-lending by public banks is being wound down, and restrictions in the oil and gas sector have been eased. Nevertheless, given the importance of fiscal consolidation in the near term, implementation of a broader reform agenda will likely depend on the next administration. RATING DRIVERS Failure to pass pension reform in the near term would likely result in a downgrade of the ratings. On the other hand, the trend could be changed to Stable if a reform is passed that materially slows the pace of pension spending and lends credibility to the fiscal adjustment plan. CBC AMMO: Fitch Assigns 'BB' First-Time IDR; Outlook Stable ----------------------------------------------------------- Fitch Ratings has assigned an initial Long-Term Foreign Currency Issuer Default Rating (IDR) and Long-Term Local Currency IDR of 'BB' to CBC AMMO LLC (CBC) and its senior unsecured notes issued by CBC AMMO LLC and CBC FInCo Inc. due in 2021. The Rating Outlook is Stable. The ratings reflect CBC's steady profitability as a global manufacturer of small-caliber ammunition with a presence in Europe, Latin America, and the U.S. The ratings also factor in CBC's solid capital structure and strong credit metrics. CBS's ratings are constrained by its modest scale and product concentration. KEY RATING DRIVERS Business Profile: CBC's ratings reflect its well-established brands (CBC, MEN, Sellier & Bellot, and Magtech), efficient operation, product concentration and medium scale. The company is a low-cost manufacturer of small-caliber ammunition with production facilities in Brazil, Czech Republic, and Germany. CBC sells ammunition, firearms and related products to more than 100 countries worldwide. CBC is one of the largest suppliers of small- caliber ammunition to NATO member countries in Europe, the No.1 manufacturer of commercial handgun ammunition in Latin America and Europe, and the second largest exporter of brass case commercial ammunition to the U.S. Regulated Industry: The ammunition industry is heavily regulated. Regulations increase barriers to entry, especially In Brazil where CBC is the sole supplier of ammunition, as imports are severely restricted. The company is exposed to the military (21% of sales) and law enforcement budgets and discretionary consumer spending. CBC supplies primarily the commercial segment which represented about 50% of its sales as of March 31, 2017. Also, CBC maintains a long-term relationship with its clients, notably in the military where contracts usually go through a bidding process of from one to five years. Geographical Diversification: CBC benefits from its diverse geographic footprint which enables the company to reach different markets and respond quickly to shifting trends in the marketplace, reducing its vulnerability to regulatory risks. Its manufacturing presence in the Czech Republic and Brazil ensure low production costs and high margin. The company has five manufacturing facilities, including three in Brazil, one in Germany and one in the Czech Republic, as well as two distribution centers for commercial sales in Brazil and Europe. Magtech USA also maintains a distribution center in the U.S. CBC's revenues are generated in the Eurozone (41%), followed by South & Central America (22%) and North America (19%). Steady Leverage: The rating is supported by the company's conservative credit metrics. CBC has shown stable and resilient profitability, and credit ratios have remained strong. Debt/EBITDA has remained stable at about 2.3x-2.7x over the last four years. CBC has grown organically and by acquisitions to increase its production capacity (1.7 billion units) and expand its geographic footprint. Currency Risk: CBC does not hedge its USD bond maturity payment or the annual coupon, and swaps its EUR revenues into USD. As of March 31, 2017, Fitch estimates that 75% of revenues and 72% of the cost of goods sold (COGS) are in hard currencies (USD and EUR). Copper is the main raw material cost in the U.S. that is hedged. Forjas Taurus S.A.: CBC owns 66.9% of Forjas Taurus S.A., a listed company in Brazil with a market cap of BRL111 million. Taurus produces and distributes firearms (Brazil and U.S.) and helmets. Taurus recently went through a debt restructuring plan that resulted in the extension of the debt maturity by its banks. CBC is not a guarantor of Taurus' debt and vice versa; there are no cross-default clauses. Therefore, Taurus accounts are not consolidated in CBC's debt ratios and the company is not part of CBC's restricted group. However, Fitch expects CBC to continue to support Taurus if needed. Taurus' net debt amounted to BRL673 million as of March 31, 2017, and the company reported positive EBITDA of BRL6.1 million in 1Q17. DERIVATION SUMMARY CBC ratings reflect its modest scale, diversified geographical footprint and solid financial profile. The company operates in a highly regulated industry and is subject to change in consumer demand and defense budgets. It has a unique business model that is different from other industrial rated companies by Fitch. CBC's credit metrics are well-positioned relative to other industrial peers rated by Fitch. CBC's Debt/EBITDA ratio is lower than the median of the LatAm industrial portfolio. The company shows more conservative credit metrics than Tupy S.A. ('BB'), Marfrig S.A. ('BB-'), Sand Miguel Industrias PET SA ('BB+') and Controladora Mabe S.A. de CV ('BB+') but higher debt/EBITDA ratios than Nemak S.A. de CV ('BB+'). Constraining factors for the ratings are related to the product concentration in a niche market and weak corporate governance because the company is 100% privately-owned. KEY ASSUMPTIONS Fitch's key assumptions within its ratings case for the issuer include: - Steady EBITDA margin of about 24% to 25%; - Capex of about USD50 million in 2017; - Dividends of about USD50 million in 2017; Total debt/EBITDA trending toward 2x in 2018. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action - Debt/EBITDA below 2x; - Successful turnaround of Forjas Taurus S.A. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Debt/EBITDA of 4x; -- EBITDA margin below 15%. LIQUIDITY CBC's liquidity is adequate due to the company's solid access to local banks and the company's steady operating cashflow generation. The company had USD35 million of cash and cash equivalents and USD47 million of short-term debt (ACC/working capital and export finance debt) as of March 31.2017. The debt amortization is manageable as the USD 250 million senior notes are due in November 2021 FULL LIST OF RATING ACTIONS CBC AMMO LLC -- Long-Term Foreign and Local Currency IDR rated 'BB; -- Senior Unsecured debt rated 'BB.' CBC FinCo Inc. -- Senior Unsecured debt rated 'BB'. USJ ACUCAR: S&P Affirms 'CCC+' CCR & Revises Outlook to Stable -------------------------------------------------------------- S&P Global Ratings affirmed its 'CCC+' global scale corporate credit ratings on USJ Acucar e Alcool S/A (USJ), but revised its outlook to stable from negative. At the same time, S&P kept its recovery rating of '6' on USJ's unsecured debt unchanged, and affirmed the senior unsecured debt rating at 'CCC-'. The stable outlook reflects S&P's view that, using a combination of short-term debt refinancing and new issuances, USJ has addressed most of its liquidity challenges for the next 12-18 months. It also maintained a solid operating performance in fiscal 2017, with the lowest idle capacity level in several harvests and better sugar and ethanol prices, resulting in higher EBITDA levels and slightly positive FOCF generation. ====================== P U E R T O R I C O ====================== AEROPOSTALE INC: Court Approves Stipulation on $42.7M Claim ----------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court approved Aeropostale's stipulation among the Debtors, Aero Investors and MGF Sourcing Holdings. As previously reported, "On December 13, 2016, the Claimant filed administrative expense Claim No. 2503 (the 'Administrative Claim') against Debtor ARO Liquidation for $42,750,000 (the 'Administrative Claim Amount') for compensation for the diminution in value of its interests in the collateral that secures the obligations of the Debtors under the Loan Agreement; and on December 13, 2016, the Claimant also filed the following 7 claims against the Guarantors for $42,750,000 each (the 'Guarantor Claims'). The Parties hereto, subject to the Bankruptcy Court's approval agree that: Each of the Debtors is jointly and severally liable for the full amount of the Administrative Claim. If the Administrative Claim is not satisfied in full by Debtor ARO Liquidation, Claimant shall retain the right to collect the full allowed amount of the Administrative Claim from any and each of the Debtors, provided, for the avoidance of doubt, that the full allowed amount of the Administrative Claim shall only be paid once." 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. COSTA DORADA: Hires MRO Attorneys at Law as Bankruptcy Counsel -------------------------------------------------------------- Costa Dorada Apartments Corp., seeks authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ MRO Attorneys at Law, LLC as counsel for the Debtor. On June 12, 2015, the Debtor filed a petition for reorganization under the provisions of Chapter 11 of the Bankruptcy Code, and as of that date has been managing his affairs as debtor in possession, as provided for in the Bankruptcy Code. The Debtor is not sufficiently familiar with the law to be able to plan and conduct the proceedings without competent legal counsel. As such, the Debtor initially engaged the services of brother counsel Jesus Enrique Batista Sanchez, Esq. However, through a motion dated April 27, 2017, brother counsel Batista Sanchez withdrew as the Debtor's legal representative. The Debtor requires MRO to: a. provide it with legal advise with respect to its powers and duties as a debtor-in-possession in the continued operation of the Debtor's business; and b. perform all legal services for the Debtor as may be necessary in the reorganization of the Debtor's business. MRO lawyers who will work on the Debtor's case and their hourly rates are: Myrna L. Ruiz-Olmo, Esq. $250 Tomas F. Blanco Perez, Esq. $200 A retainer fee of $10,000 was paid by the Debtor prior to the filing of the application. MRO will also be reimbursed for reasonable out-of-pocket expenses incurred. Myrna L. Ruiz-Olmo, Esq., of MRO Attorneys at Law, LLC, 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 Debtor and its estates. MRO may be reached at: Myrna L. Ruiz-Olmo, Esq. MRO Attorneys at Law PO Box 367819 San Juan, P.R. 00936-7819 Tel: (787) 237-7440 About Costa Dorada Apartments Costa Dorada Apartments Corp. is based in Isabela, Puerto Rico. Costa Dorada filed a chapter 11 petition (Bankr. D. P.R. Case No. 15-04474) on June 12, 2015, and is represented by Jaime Rodriguez Rodriquez, Esq., at Rodriguez & Asociados, Abogados, CSP, in Vega Baja, Puerto Rico. At the time of the filing, the Debtor estimated assets and debts to be between $1 million to $10 million. HALAIS GROUP: Wants To Obtain $700,000 in Financing --------------------------------------------------- Halais Group, Inc., asks the U.S. Bankruptcy Court for the District of Puerto Rico for authorization to obtain financing. The amount requested for the loan is $700,000, and the current estimated potential expenses are near to $676,148.55 (sum of the amounts to be paid of each claim, and the loan related expenses). This loan will consolidate all the creditor's secured and priority claims, that will make the reorganization plan more feasible. Since filing for bankruptcy, the Debtor has made multiple efforts to get the necessary funding in order to handle its financial duties, and at the same time, continue with the business operations. Recently, Parliament Capital has reviewed the Debtor's application for financing. In order to approve the loan, Parliament requested several conditions. Some of them states as follows: (i) first priority mortgage lien position on property number 60,075 of Caguas, Puerto Rico, together with all improvements, fixtures and equipment thereon; (ii) a first priority security interest in and over any and all assets and property, including, without limitation, equipment, fixtures, inventory, accounts, accounts receivables, equipment, contracts and general intangibles; (iii) a first priority lien and collateral assignment and security interest over all leases and Rents thereunder, and other revenues arising from or relating to the property and any leases thereto; (iv) a first priority lien over the applicants operational depository account; and (v) first priority pledge of and security interest over 100% of all the issued and outstanding direct and indirect ownership interests in the applicant. The Loan will also be subject to the creation of a lockbox account whereas all business accounts, rents and any other revenues arising from or relating to the Property and any leases thereto will be deposited therein, at the sole discretion of Lender, which shall be pledged; and assigned to Lender. For the avoidance of any doubt, the term rents and other revenues will include, without limitation, any rental, proceeds, sale, commissions, revenues, fees, incentives or income produced by any billboards, telecommunication antenna, and any other advertisements activities affixed to or being carried out from the Property, as well as all proceeds and products of the foregoing, less expenses. The proposed budget for the funds will be as follows: Creditor Description Amount -------- ----------- ------ IRS claim Claim #2 $71,202 Swift Capital Pay off current $10,000 balance claim #3 Municipal Revenue Secured portion of $54,828 Collection Center claim #4 (CRIM) State Insurance Fund Priority portion of the $5,347 Corporation (Fondo claim #6 del Seguro del Estado) Bautista Cayman Secured claim #7 $420,000 Asset Company Department of Priority sales tax claim $41,879 Treasury Department of Labor Priority portion of $1,892 claim #11 ------------- TOTAL $605,149 Loan Related Expenses Description Amount ----------- ------ 4% prepaid interest $28,000 2% interest to be paid at the loan pay off $14,000 Application fee $5,000 2% Broker services charge (to be paid to Caribe Capital Advisors, LLC) $14,000 Legal fees retainer $10,000 ------- Total $71,000 The biggest benefit for the bankruptcy estate is that it will be possible to buy -- at a discounted price -- all the mortgage promissory notes under Bautista Cayman creditor control, for $420,000 (claim #7, with a balance at the moment of filing of $2,158,511.30). If the loan is approved, the debtor will be in a better position to fulfill all secured and priority claims. A copy of the Debtor's Motion is available at: http://bankrupt.com/misc/prb16-01361-193.pdf About Halais Group Headquartered in Caguas, Puerto Rico, Halais Group, Inc., d/b/a Monte Calvario, filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 16-01361) on Feb. 24, 2016, estimating its assets at between $500,000 and $1 million and its liabilities at between $1 million and $10 million. The petition was signed by Raymond Halais, president, authorized representative of Halais. Judge Mildred Caban Flores presides over the case. Carlos A Ruiz Rodriguez, Esq., at Carlos Alberto Ruiz Law Office, CSP, serves as the Debtor's bankruptcy counsel. ONCOLOGY INSTITUTE: August 22 Plan and Disclosures Hearing ---------------------------------------------------------- Judge Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for the District of Puerto Rico conditionally approved Oncology Institute of Puerto Rico P.S.C.'s disclosure statement with respect to a chapter 11 plan filed on July 17, 2017. August 22, 2017, at 10:00 A.M. is fixed for the hearing on final approval of the disclosure statement and for the hearing on confirmation of the plan. Three days prior to the hearing is fixed as the last day for filing written acceptances or rejections to the plan. Three days prior to the hearing is fixed as the last day for filing and serving written objections to the disclosure statement and confirmation of the plan. About Oncology Institute of Puerto Rico Oncology Institute of Puerto Rico, P.S.C., a health care business, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 17-00212) on January 18, 2017. Nilda Gonzalez-Cordero, Esq., serves as the Debtor's bankruptcy counsel. At the time of the filing, the Debtor estimated assets and liabilities of less than $500,000. ONCOLOGY INSTITUTE: Unsecureds to Get $13,749 by 2021 ----------------------------------------------------- Oncology Institute of Puerto Rico P.S.C. filed with the U.S. Bankruptcy Court in Puerto Rico a small business disclosure statement dated July 17, 2017, referring to the Debtor's plan of reorganization. Class 1 General Unsecured Class is impaired by the Plan. The Debtor will make 48 monthly payments of $286.44 each until year 2021. Total payout amount will be $13,749. Payments and distributions under the Plan will be funded by the continued operation of the business of the Debtor. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/prb17-00212-66.pdf About Oncology Institute of Puerto Rico Oncology Institute of Puerto Rico, P.S.C., a health care business, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 17-00212) on January 18, 2017. Nilda Gonzalez-Cordero, Esq., serves as the Debtor's bankruptcy counsel. At the time of the filing, the Debtor estimated assets and liabilities of less than $500,000. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD CEMENT: Sees Decline in Revenue ---------------------------------------- RJR News reports that Caribbean Cement's parent Trinidad Cement Limited suffered a decline in revenue during the second quarter. Revenue totaled TT$428 million bringing total revenue for the first half of the year to $850 million, according to RJR News. When compared to the corresponding periods last year, this represents declines of 15 percent over the second quarter and 14 percent over the first half of 2016, the report notes. The company says this was largely due to reduced cement sales in Trinidad and Tobago as a result of continued economic slowdown, RJR News adds. As reported in the Troubled Company Reporter-Latin America on May 18, 2017, S&P Global Ratings affirmed its 'B' long-term corporate credit rating on Trinidad & Tobago-based cement producer Trinidad Cement Limited (TCL). S&P subsequently withdrew the rating at the company's request. At the time of the withdrawal, the outlook was stable. Following the announcement of the company's redemption of its 2015 syndicated credit agreement in April 26, 2017, S&P no longer rate any of TCL's debt. ================= V E N E Z U E L A ================= VENEZUELA: U.S. Puts More Venezuelan Officials Under Sanctions -------------------------------------------------------------- Jose de Cordoba at The Wall Street Journal reports that the U.S. government leveled sanctions on 13 high-ranking Venezuelan officials for alleged corruption, human-rights violations and undermining the country's democracy, days before a scheduled vote for a constitutional assembly that many believe would deal a death blow to Venezuela's democracy. The officials targeted by the U.S. Treasury include Tibisay Lucena, the head of the country's electoral agency, as well as the chiefs of the Venezuelan Army, National Guard and National Police, according to The Wall Street Journal. The U.S. also blacklisted the finance chief of state oil firm Petroleos de Venezuela; Elias Jaua, a leading politician close to President Nicolas Maduro ; and Erick Malpica Flores, a nephew of Venezuela's powerful first lady, Cilia Flores, the report notes. Under the sanctions, the officials' U.S. assets are frozen and their U.S. visas revoked, the report relays. The measures also prohibit U.S. citizens and institutions from doing business with them, the report discloses. The U.S. government warned that any individuals who become members of the constituent assembly to be elected risked being added to the U.S. sanctions list, the report says. "The United States will not ignore the Maduro regime's ongoing efforts to undermine democracy, freedom, and the rule of law," said U.S. Treasury Secretary Steven Mnuchin, the report relays. Mr. Maduro responded to the U.S. move with defiance. "We will never kneel, and our vengeance will be our victory on Sunday July 30," he said in a broadcast to the nation, after which he bestowed ceremonial swords on Ms. Lucena and other targeted officials, the report notes. The WSJ discloses that the newest round of sanctions comes days after U.S. President Donald Trump called Mr. Maduro a "bad leader who dreams of becoming a dictator" and threatened that the U.S. would take "strong and swift economic action" if the Venezuelan leader followed through with the planned vote for the constituent assembly, which is to be tasked with rewriting the constitution. The Trump administration says Mr. Maduro's push to create the assembly is the final step toward a full dictatorship, the report notes. "We see July 30th as a critical line that, if crossed, could be the end of democracy in Venezuela," a senior Trump administration official said, the report relays. The U.S. put eight Venezuelan Supreme Court justices under similar sanctions in May after the court issued rulings that gutted the country's opposition-led congress, the report notes. Vice President Tareck El Aissami was placed on a U.S. Treasury blacklist in February for allegedly aiding drug traffickers, along with financier Samark Lopez, the report says. U.S. authorities have frozen "hundreds of millions of dollars" in assets linked to Mr. El Aissami, much more than they had previously estimated, a senior U.S. official said, the report notes. Mr. Jaua, the Venezuelan official in charge of creating the constituent assembly, said he had no assets to lose as a result of the sanctions, the report relays. "The Empire's sanctions are an acknowledgment of my 34 years of struggle for national sovereignty and for the poor of this Earth. We will overcome!," he wrote on his Twitter account, the report discloses. Mr. Maduro's efforts to convene a constituent assembly are being boycotted by Venezuela's opposition coalition, the report notes. Once elected, the assembly is set to become the country's supreme political institution, with power to rewrite the constitution and dissolve the opposition-dominated congress, the report discloses. The WSJ relays that the opposition has called a two-day general strike-its second in as many weeks-starting Wednesday, July 23 in an last-ditch attempt to stop the constituent assembly. In Caracas, some government opponents participating in the general strike supported the sanctions against the government officials, but were skeptical they would matter, the report notes. "I don't think it will have an impact on their behavior," said Henry Oliveros, a 24-year-old telecommunications worker, the report relays. Mr. Trump and other world leaders have called on Mr. Maduro to abandon the vote, which polls show more than 80% of Venezuelans oppose, the report discloses. More than 7.5 million Venezuelans voted in an unofficial referendum whose results showed overwhelming opposition to creating the new assembly, the report says. The WSJ relays that Mr. Maduro dismissed that referendum as a nonbinding internal consultation by the opposition, but as the president and his aides move ahead with their plans to hold Sunday's vote, anxiety about the adverse international reaction has been high inside the Miraflores Presidential Palace, according to people close to the ruling Socialist Party. It isn't clear, however, whether the new sanctions would fracture Mr. Maduro's backing within the military and government or unify the regime behind the president, the report notes. Trump administration officials said expanded sanctions on the country's vital oil industry, which provides 95% of Venezuela's foreign exchange, were possible if Mr. Maduro carried out his plans. "All options are on the table," the senior official said, the report relays. Many experts have warned against a broad-based ban on oil exports from Venezuela, saying it could cause a backlash against the U.S. and strengthen the Maduro regime while disrupting U.S. energy markets that rely heavily on Venezuelan crude imports. U.S. Secretary of State Rex Tillerson's past dealings with Caracas as the former chief executive of American oil giant Exxon Mobil may have helped spur the administration to take a more aggressive sanctions stance with the country, said James Lewis, a former State Department official responsible for sanctions and currently a senior vice president at the Center for Strategic and International Studies, the report notes. "Tillerson knows the Venezuela story," Mr. Lewis said, the report adds. The U.S.-based oil company, like several of its peers, was locked in a bitter legal battle during Mr. Tillerson's tenure there over Venezuelan assets nationalized by the late President Hugo Chavez, the report discloses. The WSJ notes that Venezuela, which boasts bigger oil reserves than Saudi Arabia, is mired in a deep economic and political crisis. More than 100 people have died in the last four months amid violent street protests held almost daily, the report relays. Most of them have been killed by government security forces and paramilitary gangs allied with the government, the report says. Venezuela's economy has shrunk by nearly a third in the last four years, the report notes. The International Monetary Fund estimates inflation will surpass 700% this year, the report relates. Dwindling supplies and access to food means that three out of four Venezuelans lost an average of 18 pounds last year, the report adds. As reported on Troubled Company Reporter-Latin America on July 13, 2017, S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings on the Bolivarian Republic of Venezuela to 'CCC-' from 'CCC'. The outlook on the long-term ratings is negative. S&P said, "We affirmed our 'C' short-term foreign and local currency sovereign ratings. In addition, we lowered our transfer and convertibility assessment on the sovereign to 'CCC-' from 'CCC'." ================= X X X X X X X X X ================= LATAM: Spiralling Debt in Barbados and Trinidad Worrying CDB ------------------------------------------------------------ Caribbean360.com reports that spiraling debt in some regional economies remains a major worry for the Caribbean Development Bank (CDB). The Barbados-based institution has warned that the efforts of some countries to tackle the problem are off-track and Governments have to seriously assess their management of the problem, according to Caribbean360.com. According to Director of Economics at the CDB, Dr. Justin Ram, Barbados is the most indebted country in the region and there are strong signs that the Trinidad and Tobago economy is headed for trouble, the report notes. "Although Barbados is at the top now, we have other countries there that are actually on the wrong trajectory. Trinidad and Tobago as well, I can say, their debt dynamics is on the wrong trajectory, and if things do not turn around there quickly then very soon they will have a debt-to-gross domestic product (GDP) ratio possibly in excess of 80 per cent of GDP," he told the annual review seminar of the Central Bank of Barbados, the report relays. The report says that Ram stressed the problem needed fresh, urgent action and lamented that regional governments may not be following the right examples. Highlighting experiences in Greece, Italy, Japan, Singapore, the United Kingdom and the United States he suggested the region should carefully study each case and take only the best practices Caribbean360.com discloses. "Greece, yes, [has] a primary balance now that is positive, but general government debt of 181 per cent, and what about the real GDP growth? It's actually at zero," Mr. Ram noted, the report relays. He also cited the experience in Singapore, but maintained it was not the best model for the region, the report notes. "When we look at some of the data, is it really what we want to emulate? A country that has a primary balance that is positive, yes, but I don't think we really want to go down the route of having such high levels of debt-to-GDP, and I don't think two per cent real economic growth would be sufficient for us here in the Caribbean," the CDB official said, the report relays. Mr. Ram stressed that some of the best lessons of debt recovery were in the region, pointing to economic development in Jamaica and Grenada, the report notes. "I want to emphasize to you that the lessons learned from Jamaica, and perhaps Grenada, show us that we can turn things around if we take the right policy measures and the right policy steps," Mr. Ram said, the report discloses. Mr. Ram contended that now was the time for governments to seriously map out a new direction to take forward their economies, the report says. "I would proffer to you that perhaps we want to travel down the road that is less travelled. We want to have inclusive growth with low debt and prudent fiscal management," he 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, 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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