/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170808.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 8, 2017, Vol. 18, No. 156 Headlines A R G E N T I N A ENTAL SA: Moody's Alters Outlook to Stable & Affirms 'Ba3' CFR B A H A M A S BAHAMAS: Poses 'Challenge' for IDB B R A Z I L BRAZIL: Thousands of Soldiers Enter Rio Slums to Curb Violence CONCESSIONARIA RODOVIAS: Moody's Cuts CFR to Caa2, Outlook Neg. JBS SA: Divests Interest in Dairy Business PDG REALTY: Reaches Non-Binding Agreement With Banks SHREE RENUKA: COFCO Eyes Bid for Renuka Sugar Mill C O L O M B I A SEADRILL LIMITED: New Rig Set to Start Exploring for Natgas P U E R T O R I C O EMPRESAS ALVARO: Court Approves Disclosures, Confirms Bankr. Plan MBTI OF PUERTO RICO: Selling San Juan Six Properties for $2MM SHORT BARK: Sept. 18 Auction of All Assets Set T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Continues to Face Economic Challenges TRINIDAD & TOBAGO: 4,000 Retrenched Since September V E N E Z U E L A PDVSA: Asks Bondholders to Waive Financial Reporting Requirements VENEZUELA: New Assembly Fires Attorney General - - - - - ================= A R G E N T I N A ================= ENTAL SA: Moody's Alters Outlook to Stable & Affirms 'Ba3' CFR -------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo SA, changed the outlook on Empresa Nacional de Telecomunicaciones S.A. (ENTEL S.A.) to stable from negative and affirmed the global and national scale corporate family ratings of Ba3 and Aaa.bo, respectively. The rating action follows Moody's Investors Service's decision on August 1 to change the outlook on Bolivia's Ba3 government bond rating to stable from negative. RATINGS RATIONALE The stable outlook on ENTEL S.A.'s ratings reflects the stable outlook on the ratings of the Government of Bolivia (Ba3 stable), which owns 97.5% of ENTEL S.A.'s shares through the Ministry of Public Works, Utilities and Housing. The change of the sovereign outlook to stable incorporates Bolivia's stabilizing fiscal and current account deficits which suggest that the impact of lower hydrocarbon prices on the sovereign's credit profile has been contained, and Moody's expectation that Bolivia's growth, fiscal and external metrics, although weakened, are likely to remain consistent with its Ba3 rating. The affirmation of ENTEL S.A.'s global and national scale corporate family ratings of Ba3/Aaa.bo considers the company's operating strength among peers and strong liquidity. ENTEL S.A.'s ratings are furthermore supported by its leading market position in the mobile business and steady cash generation. Despite operating in a capital intensive industry, ENTEL S.A. has only minimal debt-like obligations while maintaining sufficient cash on hand. ENTEL S.A.'s rating is restrained by its modest scale when compared to global peers, a product portfolio largely limited to the prepaid mobile business, and revenue growth pressured by Bolivia's highly competitive operating environment as well as macroeconomic limitations. Through at least the end of 2017, ENTEL S.A. will continue to carry out significant capital investments which will generate sustained negative free cash flow. ENTEL S.A.'s ratings also reflect the application of Moody's joint default rating methodology for government-related issuers (GRIs). ENTEL S.A.'s rating combines: (i) ENTEL S.A.'s underlying baseline credit assessment (BCA) of ba3, and (ii) the willingness and ability of the government of Bolivia to provide credit support to ENTEL S.A. in a distress scenario. The Bolivian government's ability to provide support to ENTEL S.A. is measured by its Ba3 rating and stable outlook, weakened somewhat by the moderate dependence of the government and the company on credit factors that could cause stress on both simultaneously. Moody's considers the government's willingness to support the company in the event of financial distress as high. The ratings or outlook could be downgraded if the Government of Bolivia's rating or outlook are downgraded. ENTEL S.A.'s ratings could also experience downward pressure if overall credit metrics significantly deteriorate, such that adjusted debt/EBITDA is sustained above 2.3 times or adjusted EBITDA margin falls below 35% on a sustained basis. In addition, ENTEL S.A.'s ratings or outlook could fall under pressure in case of negative regulatory developments, or a loss of government support. A large debt-funded acquisition would also put negative pressure on the rating. Given the majority participation of the Government of Bolivia in ENTEL S.A., a rating upgrade would be dependent on a positive rating action on the sovereign rating. ENTEL S.A. is Bolivia's incumbent telecommunications service provider. Initially, the company was a public entity under the Ministry of Civil Transportation, Communications and Aeronautics until it became a subsidiary of Telecom Italia S.p.A. (Ba1 stable) in 1995. In 2008, the Government of Bolivia (Ba3 stable) carried out the nationalization of ENTEL S.A. and now holds 97.5% of the company's shares through the Ministry of Public Works, Utilities and Housing. The remaining 2.5% is held by a group of minority shareholders. The company derives over 80% of its revenue from the mobile voice and internet segment, where it has approximately 47% of market share with full national coverage through 2G and 4G networks. In addition, the company offers fixed landline and broadband, wireless data, corporate and satellite television services. During the last twelve months as of March 31, 2017, ENTEL S.A. reported revenues totaling close to USD 638 million. The methodologies used in these ratings were Telecommunications Service Providers published in January 2017, and Government- Related Issuers published in October 2014. ============= B A H A M A S ============= BAHAMAS: Poses 'Challenge' for IDB ---------------------------------- RJR News reports that a multilateral lender says the Bahamas poses a unique challenge for it, with surface-level wealth asking significant income inequality where almost half of those living in poverty are the working poor. The Inter-American Development Bank, in a June 2017 report, reveals just how this nation has stagnated from a social, economic and equality perspective since the 21st century began, according to RJR News. Kick-starting a review of its Bahamas country program for the past seven-and-a-half years, the IDB said household income distribution had undergone "a significant deterioration" since 1999, with the poverty rate jumping from 9.3 per cent in 2001 to 12.8 per cent in 2013, the report notes. As reported in the Troubled Company Reporter-Latin America on July 31, 2017, Caribbean360.com reports that Bahamian Prime Minister Dr. Hubert Minnis has disclosed harsh cuts in the Bahamas Government spending as he embarks on a strategy to remedy the country's fiscal deficit, which is projected to reach $500 million this year. =========== B R A Z I L =========== BRAZIL: Thousands of Soldiers Enter Rio Slums to Curb Violence -------------------------------------------------------------- Associated Press reports that more than 3,500 Brazilian soldiers are occupying slum communities in northern Rio de Janeiro as part of efforts to combat a spike in violence. The troops moved into the Complexo do Lins communities and neighboring Camarista Meier, according to Associated Press. Defense Minister Raul Jungmann told Globo TV that the troops would stay there as long as necessary, the report notes. About 8,500 soldiers were deployed in Rio to fight organized crime gangs, which control many of the city's slums, the report relays. Brazilian television showed soldiers armed with automatic rifles sitting atop tanks as they patrolled the communities, the report notes. Mounting violence has led authorities to acknowledge in recent weeks that much of the city is out of their control, the report discloses. In late June, authorities arrested nearly 100 police officers in Rio de Janeiro suspected of allowing gangs to traffic drugs in the city's slums in exchange for bribes, the report adds. As reported in the Troubled Company Reporter-Latin America on May 30, 2017, Moody's Investors Service has changed the outlook on Brazil's issuer rating to negative from stable and affirmed its issuer, senior unsecured and shelf ratings at Ba2 and (P)Ba2 respectively. CONCESSIONARIA RODOVIAS: Moody's Cuts CFR to Caa2, Outlook Neg. --------------------------------------------------------------- Moody's America Latina has downgraded Concessionaria Rodovias do Tiete S.A.'s corporate family and senior secured ratings to Caa2/Caa2.br from Caa1/B3.br on the global and the Brazilian national scales (NSR) respectively. The outlook remains negative. RATINGS RATIONALE The downgrade reflects Moody's expectations that the company's initial debt restructuring proposal would imply a 10% to 20% loss to the existing debenture holders if approved. Moody's also perceives much weaker support from Rodovias do Tiete's main shareholders which, in Moody's views, materially limits the company's ability to address the problems related to its capital structure in a way that doesn't impact debenture holders. A demanding capital investment program (BRL 400-500 million within the next three years) required under the concession with very limited flexibility further adds pressure to the credit profile of Rodovias do Tiete. What Could Change the Rating - Up /Down In light of the latest rating action and the negative outlook, an upgrade of the ratings is unlikely in the near term. While unexpected, a debt restructuring result with lower loses to creditors could prompt Moody's to review the ratings as would a significant improvement in the company's liquidity and leverage levels. Further deterioration of the company's liquidity position would negatively affect the ratings as would a debt restructuring that infers higher than expected loses to creditors. Deterioration of key credit metrics such as the FFO to Debt ratio staying below 5% on a sustainable basis or DSCR below 1x would also prompt a downgrade. Failure to comply with all obligations under the concession on a timely manner would add negative pressure on the ratings. Rodovias do Tiete holds a 30-year toll road concession granted by ARTESP in April 2009 to expand, operate and maintain a 415 km toll road system composed by five roads located in the State of Sao Paulo: SP-101 (Rodovia Jornalista Francisco Aguirra Proenáa), SP- 113 (Rodovia Dr. Joao Jose Rodrigues), SP-308 (Rodovia Comendador M†rio Dedini), SP-300 (Rodovia Marechal Rondon) e SP-209 (Rodovia Prof. Joao Hipolito Martins). The service area includes 25 municipalities, where the largest cities are Bauru, Campinas, and Piracicaba, with a diversified traffic profile, mainly composed by agricultural, industries and commuters. Heavy traffic accounts for 55% of total equivalent vehicles (VEQ) with light vehicles representing the remaining 45%. In the last twelve months ended March 2017, the company registered Moody's- adjusted BRL 202 million Net Sales and EBITDA of BRL 182 million (including insurance indemnification) with total debt of BRL1.45 billion. Rodovias do Tiete is owned by a joint venture of Atlantia Bertin Concessoes S.A. (50%) and the Portuguese ASCENDI International Holdings B.V. (50%). Atlantia-Bertin Concessoes is a joint venture between Italian toll-road operator Atlantia S.p.A (Baa2, negative) and Brazil's Grupo Bertin (not rated). The principal methodology used in these ratings was Privately Managed Toll Roads published in May 2014. JBS SA: Divests Interest in Dairy Business ------------------------------------------ meatpoultry.com reports that JBS SA officials disclosed on Aug. 3 the sale of its 19 percent interest in Vigor Alimentos SA, a large dairy business based in Mexico, to Grupo Lala S.A.B de C.V. for BRL1.12 billion (US$361 million). JBS will receive approximately BRL780 million (US$250.18 million) in equity value according to a statement, according to meatpoultry.com. "JBS intends to use a portion of the proceeds from this transaction to further reduce debt in connection with its Stabilization Agreement," the company said, referencing its July 25 announcement regarding company debt, the report notes. The deal was approved by the JBS board of directors and is subject to regulatory approvals, the report relays. Publicly traded on the Mexican Stock Exchange, Grupo LALA has a 60-year history and maintains operations in the US, Central America and Mexico with reported annual net sales of $2.9 billion for the 12-month period ending June 30, 2017, the report adds. As reported in the Troubled Company Reporter-Latin America on July 31, 2017, S&P Global Ratings affirmed its 'B+' global scale corporate credit ratings on JBS S.A. and JBS USA and its 'brBBB-' national scale rating on JBS. S&P also affirmed the 'B+' senior unsecured debt ratings on JBS and JBS USA and the 'BB' senior secured debt ratings on JBS USA. At the same time, S&P removed all ratings from CreditWatch. The outlook is negative. PDG REALTY: Reaches Non-Binding Agreement With Banks ---------------------------------------------------- Reuters reports that PDG Realty SA, the largest Brazilian homebuilder to have filed for bankruptcy protection, reached a non-binding agreement with bank creditors as part of restructuring talks, the company said in a filing. PDG filed for bankruptcy protection in February after citing a severe cash crunch and onerous debt of BRL7.3 billion (US$2.33 billion), according to Reuters. It presented an in-court reorganization plan on June 7, the report notes. Banks Caixa Economica Federal, Banco do Brasil SA and Itau Unibanco Holding SA and the company agreed to leave segregated assets outside the in-court reorganization, the filing said, the report relays. PDG has struggled with cost overruns since it purchased smaller rival Agre Participacoes SA in May 2010, while also dealing with Brazil's deep recession over the last two years, the report says. As reported in the Troubled Company Reporter-Latin America on March 13, 2017, Moody's America Latina Ltda. has withdrawn all of PDG Realty S.A Empreendimentos e Participacoes ratings following the company's announcement on Feb. 22, 2017 that it filed for bankruptcy protection under the Brazilian law 11.101/05 (recovery and bankruptcy law) which was approved by the Brazilian court on March 2, 2017. SHREE RENUKA: COFCO Eyes Bid for Renuka Sugar Mill -------------------------------------------------- Jose Roberto Gomes at Reuters reports that Chinese commodities trader COFCO has asked to participate in an auction in Brazil where a sugar mill owned by India's Shree Renuka Sugars Ltd will be sold as part of an in-court debt restructuring, according to court documents. COFCO already owns four sugar and ethanol plants in Brazil capable of processing a combined 15 million tons of cane per year, according to Reuters. The company looked at other potential targets last year, but said prices were too high, the report relays. Renuka, which is under bankruptcy protection, will sell its Revati mill in the municipality of Brejo Alegre in Sao Paulo state, the report says. The plant, which is near COFCO's Sao Paulo operations, has capacity to process 4 million tons of cane per year, the report says. The auction is scheduled for Sept. 4. If successful, it would be the third sale of sugar and ethanol plants in Brazil through judicial auctions in less than a year, as players with stronger capital structure snap up the assets of heavily indebted rivals, the report notes. Glencore Plc bought the Guararapes mill in November from distressed sugar group Unialco, the report relays. Ra°zen Energia SA, a 50-50 joint venture between Cosan SA Industria e Comercio and Royal Dutch Shell Plc, acquired two mills from Tonon Bioenergia SA in June, the report notes. According to the court documents seen by Reuters, Brazilian sugar firm Companhia Mineira de Acucar e Alcool (CMAA), which owns two mills in Minas Gerais state, has also asked to take part in the auction, the report discloses. Last year, CMAA acquired the Vale do Pontal mill from U.S.-based Archer Daniels Midland, the report adds. =============== C O L O M B I A =============== SEADRILL LIMITED: New Rig Set to Start Exploring for Natgas ----------------------------------------------------------- Workers are putting the finishing touches on the state-of-the-art West Freedom rig, which is scheduled to sail into the waters of Colombia's La Guajira province to start exploring for natural gas, officials at the port of Cartagena told EFE News. The rig, which is owned by Bermuda-based deep-water drilling contractor Seadrill, arrived from Mexico and will begin exploring for natural gas in the Molusco-1 well, according to EFE News. About Seadrill Seadrill Limited is a deepwater drilling contractor, which provides drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London. Seadrill reported a net loss of US$155 million on US$3.17 billion of total operating revenues for the year ended Dec. 31, 2016, following a net loss of US$635 million on US$4.33 billion of total operating revenues for the year ended in 2015. Seadrill had net income of US$57 million on US$569 million of operating revenue for the three months ended March 31, 2017, compared with US$149 million of net income on US$891 million of operating revenue in the same period in 2016. "[W]e continue to believe that implementation of a comprehensive restructuring plan will likely involve chapter 11 proceedings, and we are preparing accordingly. The extension provides additional time to finalise negotiations and prepare for the necessary potential implementation filings," Seadrill said in the July 26 statement. "It is likely that the comprehensive restructuring plan will require a substantial impairment or conversion of our bonds, as well as impairment and losses for other stakeholders, including shipyards. As a result, the Company currently expects that shareholders are likely to receive minimal recovery for their existing shares." The Company's business operations remain unaffected by these restructuring efforts and the Company expects to continue to meet its ongoing customer and business counterparty obligations. "Over the past year, the Company has been engaged in discussions with its banks, potential new investors, existing stakeholders and bondholders in order to restructure its secured credit facilities and unsecured bonds, and in order to raise new capital. The Company expects the implementation of a comprehensive restructuring plan will likely involve commencing schemes of arrangement in the United Kingdom or Bermuda or proceedings under Chapter 11 of the United States Bankruptcy Code," Seadrill said in May 2017 when it released its first quarter 2017 results. "Although discussions are well advanced and significant progress has been made, until such time our restructuring is completed, uncertainty remains and therefore substantial doubt exists over the Company's ability to continue as a going concern for twelve months after the date the financial statements are issued." Seadrill reported $21.31 billion in assets against $4.732 billion in current liabilities and $6.473 billion in non-current liabilities as of March 31, 2017. ====================== P U E R T O R I C O ====================== EMPRESAS ALVARO: Court Approves Disclosures, Confirms Bankr. Plan ----------------------------------------------------------------- Judge Edward A. Godoy of the U.S. Bankruptcy Court for the District of Puerto Rico approved Empresas Alvaro Torres Corp.'s disclosure statement and confirmed the Debtor's plan of reorganization, dated June 22, 2017. The Troubled Company Reporter previously reported that the restructuring plan proposes to pay each Class 4 general unsecured creditor 5% of its allowed claim. General unsecured creditors will receive monthly payments over five years. The plan will be funded from cash on hand available on the effective date of the plan, new professional services contracts with private and government agencies, and future income. A copy of the disclosure statement is available for free at: https://is.gd/v5gUq5 About Empresas Alvaro Torres Empresas Alvaro Torres Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-08029) on October 6, 2016. The petition was signed by Frances J. Alvaro Torres, president. At the time of the filing, the Debtor estimated assets and liabilities of less than $500,000. Judge Edward A. Godoy presides over the case. The Law Offices of Luis D. Flores Gonzalez represents the Debtor as bankruptcy counsel. MBTI OF PUERTO RICO: Selling San Juan Six Properties for $2MM ------------------------------------------------------------- MBTI of Puerto Rico, Inc., asks the U.S. Bankruptcy Court for the District of Puerto Rico to authorize the sale of six disabled properties: (i) located at #1654 Santa Ana St., Santurce Ward, San Juan, Puerto Rico ("Property No. 2,731") to Mena Group, Inc. for $60,000; (ii) located at 610 Ramon Figueroa, Santurce Ward, San Juan, Puerto Rico ("Property No. 3,583") to Morgan Reed Group, LLC, for $118,000; (iii) a property in San Juan, Puerto ("Property No. 4,632") to Connect Assistance for $1,425,000; (iv) a parking lot in Fajardo, Puerto Rico ("Property No. 12,239") to Universidad Interamericana de Puerto Rico for $30,000; (v) a three-story commercial building in Fajardo, Puerto Rico ("Property No. 13,947") to Universidad Interamericana de Puerto Rico for $250,000; and (vi) a two-story commercial building in Fajardo, Puerto Rico ("Property No. 16,947) to Universidad Interamericana de Puerto Rico for $115,000. Property No. 2,731 is recorded at Page 216 of Volume 111 of Santurce Sur, Registry of Property, First Section of San Juan. Property No. 3,583 is recorded at Page 86 of Volume 72 of Santurce Sur, Registry of Property, First Section of San Juan. Property No. 4,632 recorded at Page 83 of Volume 134 of Santurce Sur, Registry of Property, First Section of San Juan. Property No. 12,239 is recorded at Page 36 of Volume 290 of Fajardo, Registry of Property, Fajardo Section. Property No. 13,947 is recorded at Page 106 of Volume 322 of Fajardo, Registry of Property, Fajardo Section. Property No. 16,978 is recorded at Page 8 of Volume 401 de Fajardo, Registry of Property, Fajardo Section. The purchase price for each Property has been agreed to by Debtor and the Purchaser and will be paid at closing. While the Debtor's counsel and its financial consultant have rendered professional services to Universidad Interamericana de Puerto Rico in unrelated matters, the Debtor's negotiation therewith have been conducted at arm's-length with no participation by its counsel or financial consultant. A copy of the Purchase Agreements attached to the Motion is available for free at: http://bankrupt.com/misc/MBTI_OF_PUERTO_196_Sales.pdf Property No. 2,731 was last appraised on March 7, 2012, by Beverly & Associates, PSC, with a market value of $180,000. At that time, Property No. 2,731 was occupied by Debtor for its operations and is now vacant and vandalized. Property No. 3,583 was last appraised on June 30, 2015 by RPA Appraisal Advisors with a market value of $290,000. At that time, the Property No. 3,583 was occupied by Debtor for its operations and is now vacant and deteriorated. Property No. 4,632 was last appraised on March 7, 2012 by Beverly & Associates with a market value of $2,200,000. At that time, the Property No. 4,632 was occupied by Debtor for its operations and is now vacant and deteriorated. Property No. 12,239 was last appraised on June 12, 2017, by ODV Appraisal Group with a market value of $30,000, equal to the agreed to purchase price. Property No. 13,947 was last appraised on June 9, 2017, by ODV Appraisal Group with a market value of $115,000 equal to the agreed to purchase price. Property No. 16,978 was last appraised on June 9, 2017, by ODV Appraisal Group with a market value of $250,000, equal to the agreed to purchase price. The Properties have been vacant since September 2016 when the Debtor ceased its operations and some have been the object of vandalism. Furthermore, the real estate market in Puerto Rico as a result of Puerto Rico's economic crisis continues to deteriorate. The Debtor's management is knowledgeable of the condition of the Properties and has concluded that the purchase offers referred are fair and represent the Properties' current market value. The Debtor has no use for the Properties, which are totally encumbered in favor of Oriental Bank in excess of $5,900,000, with no equity, as reflected in the title studies prepared by Estudios Legales LLC on Nov. 23, 2016 and Title Solutions Corp., on Oct. 20 and 25, 2016. On Nov. 20, 2016, Oriental filed a motion for relief from stay as to, inter alia, the Properties in order to proceed with the foreclosure of its mortgages thereon. Oriental and the Debtor have agreed that from the proceeds of the sale of the Properties, totaling $1,998,000, Oriental is to receive a net payment of $1,670,000, with the balance of $328,000, to be retained by the Debtor for the payment of the real estate taxes due on the Properties ($68,440), Real Estate Broker's commission ($99,900), Notarial fees and Internal Revenue stamps ($15,790), and administrative expenses as due in the regular course or as otherwise authorized by the Court, with the balance to be maintained in the Debtor's DIP operating account. Otherwise the sale of the Properties is to be free and clear if any interest thereon. The Municipal Revenue Collection Center's statements relative thereto are: (i) Property No. 2,731 - $4,608; (ii) Property No. 3,583 - $8,173; (iii) Property No. 4,632 - $43,879; (iv) Property No. 12,239 - $429; (v) Property No. 13,947 - $0; and (vi) Property No. 16,978 - $11,351. The total is $68,440. The Debtor asks the Court that after the expiration of the notice period without an objection, an order be entered authorizing the sale of the Properties. The Purchasers can be reached at: MENA GROUP, INC. Attn.: Wally Rodriguez Telephone: (787) 390-0122 Brian Tenenbaum, COO MORGAN REED GROUP, LLC 5151 Collins Ave. Miami Beach, FL 33140 CONNECT ASSISTANCE Attn.: Antonio Ortiz 701 Ave Ponce De Leon, Suite 305 San Juan, PR 00907 Telephone: (787) 379-7435 E-mial: ajortiz@connect.pr Manuel J Fernos, President UNIVERSIDAD INTERAMERICANA DE PUERTO RICO P.O. BOX 363255 San Juan, PR 00936-3255 Telephone: (787) 766-1912 Facsimile: (787) 751-3375 About MBTI of Puerto Rico MBTI of Puerto Rico, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-08091) on Oct. 7, 2016. The petition was signed by Barbara Alozo Vila, president. At the time of the filing, the Debtor disclosed $12.99 million in assets and $16.07 million in liabilities. The case is assigned to Judge Edward A. Godoy. Charles A. Cuprill, Esq., at Charles A. Cuprill, P.S.C., Law Offices, in San Juan, Puerto Rico, serves as counsel. SHORT BARK: Sept. 18 Auction of All Assets Set ---------------------------------------------- Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware authorized the bidding procedures of Short Bark Industries, Inc. and EXO SBI, LLC in connection with their sale of substantially all assets at auction. The salient terms of the Bidding Procedures are: a. Minimum Deposit: 5% of the proposed purchase price b. Bid Deadline: Sept. 15, 2017 at 5:00 p.m. (PET) c. Sale Objection Deadline and Cure/Assignment Objection d. Auction: Sept. 18, 2017 at 10:00 a.m. (PET) at the offices of Klehr Harrison Harvey Branzburg LLP, I835 Market Street, Suite I400, Philadelphia, Pennsylvania. e. Starting Qualified Bid: The Debtors, with the consent of LSQ will determine which Qualified Bid or combination of Qualified Bids that represent the then-highest or otherwise best bid for the Assets. f. Bidding Increments: The Auction will commence with the Starting Qualified Bid and then proceed in minimum increments to be announced at the Auction. g. Closing with Alternative Backup Bidders: Prior to the entry of the Sale Order, the Debtors will announce the identity of the Qualified Bidder or combination of Qualified Bidders who submitted the Successful Bid at the Auction. h. Sale Hearing: Sept. 19, 2017, at 1:30 p.m. (PET) The Assets will be sold "as is, where is" without representation and warranties of any kind, and No later than three business days after entry of the Bidding Procedures Order, or as soon thereafter as such parties can be identified, the Debtors will cause the Notice of Auction and Sale Hearing upon all Notice Parties. No later than three business days after entry of the Bidding Procedures Order or three business days after entry of an Order approving an asset purchase agreement with a Stalking Horse Bidder, the Debtors will: (i) serve the Notice of Auction and Sale Hearing on all known creditors of the Debtors; and (ii) subject to applicable submission deadlines, publish the Notice of Auction and Sale Hearing once in one or more publications as the Debtors deem appropriate. No later than three business days after entry of the Bidding Procedures Order or three business days after entry of an Order approving an asset purchase agreement with a Stalking Horse Bidder, the Debtors will serve the Notice of Assumption and Assignment identifying the calculation of the cure amounts that the Debtors believe must be paid to cure all prepetition defaults under the Assigned Contracts upon all Notice Parties. The Sale/Cure/Assignment Objection Deadline is Sept. 12, 2017 at 4:00 p.m. (PET) or seven days after service of the relevant Supplemental Notice of Assumption and Assignment. A copy of the Bidding Procedures, Notice of Auction and Sale Hearing, and Notice of Assumption and Assignment attached to the Order is available for free at: http://bankrupt.com/misc/Short_Bark_96_Order.pdf The stays provided for in Bankruptcy Rules 6004(h) and 6006(d) are waived and Bidding Procedures Order will be effective immediately upon its entry. About Short Bark Industries Short Bark Industries, Inc. -- http://www.shortbark.com/-- provides military apparels for the Department of Defense, law enforcement industry. The company's manufactured items in the military category include military MOLLE, medium and large rucksacks, assault packs, IWCS, ACU, ABU, BDU, helmet covers, FROG, A2CU and more. It offers men and boys suits, over garments, bag, and coats. The company holds over 120,000+ square feet of manufacturing capacity with operations in Florida, Puerto Rico and Tennessee. Short Bark and EXO SBI, LLC, sought bankruptcy protection (Bankr. D. Del., Lead Case No. 17-11502) on July 10, 2017. The petitions Were signed by Phil Williams, CEO and chairman. The Debtors listed total assets of $10 million to $50 million and total liabilities of $10 million to $50 million. Bielli & Klauder, LLC serves as lead bankruptcy counsel to the Debtors. On July 18, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Continues to Face Economic Challenges -------------------------------------------------------- An International Monetary Fund staff team led by Mr. Elie Canetti visited Trinidad and Tobago during July 20 - August 2, 2017 to conduct the annual Article IV consultation. At the end of the visit, Mr. Canetti issued the following statement in Port of Spain: "Trinidad and Tobago continues to face economic challenges stemming primarily from the sharp declines in global energy prices since 2014, combined with a fall in natural gas and oil production in recent years. These, along with the prolonged economic stagnation, capital allowances, and challenges with tax administration have continued to contribute to weak revenue collections, leading to still significant fiscal deficits and rising public debt levels. "Although preliminary data shows that the economy contracted in the first half of the year on weak energy production and spillovers to the non-energy sector, the economy may be starting to turn a corner as a result of a projected recovery in gas output, though growth may still be flat or somewhat negative for the year as a whole. The economic improvement that is now beginning is projected to continue into the medium-term, notably given a pipeline of projects that will improve the supply of natural gas to the downstream energy sector. Oil output is growing due to state-owned Petrotrin's recent exploration efforts and refinery upgrade. As the energy sector recovers, the non-energy sector is expected to rebound due to positive energy-related spillovers, and as implementation of the Public-Sector Investment Program picks up. "The team welcomed ongoing fiscal policy adjustments, including the government's efforts to reform the energy tax regime and to boost domestic revenues. Nonetheless, it cautioned that sustainable fiscal adjustment will require additional measures (including containment of current expenditure) to rebalance the public finances, especially as one-off, non-debt creating financing options such as asset sales will diminish over time. The team urged the authorities to undertake a medium-term, modestly front-loaded fiscal adjustment to rebalance the public finances and put debt on a sustainable path. Delaying fiscal adjustments would only make it harder to arrest rising debt levels and restore confidence down the road. In addition, the team sees the need for an increase in capital investment to set the stage for a lasting recovery in economic growth and for economic diversification. The authorities and the team held fruitful discussions on a number of adjustment measures to achieve the necessary fiscal consolidation. "Although Trinidad and Tobago still holds healthy levels of international reserves, there has been a sharp drop in foreign exchange inflows as energy prices and volumes have both fallen. This, combined with still high demand for foreign exchange, has created a notable imbalance in the foreign exchange market that has had a number of adverse consequences. The team continues to believe that reducing and eventually eliminating the imbalance in the foreign exchange market is of paramount importance, and outlined that a range of measures will likely be necessary to do so. These include fiscal adjustment, structural reforms to enhance the country's foreign exchange earnings capacity and operating the foreign exchange market with a greater degree of flexibility. "Wide-ranging structural reforms will be needed to enhance the functioning of the government and increase the scope for growth and diversification. These include carrying through with envisaged procurement reforms, continuing to ease the costs of doing business, modernizing financial supervision and continuing to push through reforms that will enhance, and speed-up the production of, the country's economic statistics." TRINIDAD & TOBAGO: 4,000 Retrenched Since September --------------------------------------------------- Verne Burnett at Trinidad and Tobago Newsday reports that from last September to the present, about 4,000 people have been retrenched and president of the Banking, Insurance and General Workers Union (BIGWU) Vincent Cabrera says retrenchment is the major industrial relations malady facing trade unions. According to Mr. Cabrera, between 1985 and 1993, 6,698 workers were retrenched in the public and private sectors, the report notes. He said that in 1992, the Minister of Labor reported to the International Labor Organization (ILO) that 10,000 retrenchments were reported between 1986 and 1990, according to the report. Mr. Cabrera added that rising unemployment benefitted no one and that large scale dismissals lead to an increase in the numbers of people who participate in the "informal economy," saying there were increasing numbers of vendors as well as people who go into criminal activity, Trinidad and Tobago Newsday relays. Mr. Cabrera said that from September 2016 to now, about 4,000 workers had been retrenched, the report notes. However, he said he was sure that the figure was higher because that number was based on reports to the ministry by employers and they are not required to report when they retrench fewer than five workers, the report discloses. Mr. Cabrera said trickles of workers are being retrenched every day. "Every Monday morning some new employer is saying they are restructuring and once they say that they are restructuring, we know what coming down after," he said. Mr. Cabrera gave the figures at a news conference at the union's Barataria headquarters at which he accused a little known UK oil services company ASCO based at New Street in Port of Spain of committing several industrial relations offences when it retrenched an entire bargaining unit of 16 people without giving formal notice to the Ministry of Labor and without consulting with the union, the report relays. Mr. Cabrera said in January, the union was granted approval as the recognised majority union for a bargaining unit comprising monthly-rated workers at the company. He said the union received its recognition certificate on January 11, 2016, the report notes. The company later said it lost its contract with bp and retrenched all workers in the bargaining unit, the report says. Mr. Cabrera said the workers told the union that they had been told that if they behaved themselves and did not join the union, the company would place them in jobs with another company which had got the bp contract. Mr. Cabrera said something was strange about that because while the bargaining unit for which the union had been recognized had been retrenched, another bargaining unit was continuing to work and the company was continuing its operations, the report relays. Mr. Cabrera said that last November the union submitted proposals to the company for negotiations for an industrial agreement and the company submitted its counter-proposals in March this year, the report notes. Mr. Cabrera said that in April, the union had to report to the Ministry of Labor that there was a trade dispute between the parties, the report relays. According to Mr. Cabrera, after several conciliation meetings at the Ministry of Labor, the ministry prepared an agreement for both parties to sign but on the day that they were supposed to sign the agreement the company representative attended the meeting and said it was not prepared to sign the agreement and would not continue the negotiations with the union, the report notes. Mr. Cabrera said this was gross disrespect and unethical. He said the union is now awaiting a statement from the Ministry of Labor certifying that an unresolved dispute exists and a referral to take the matter to the Industrial Court, the report relays. A spokesmn for ASCO said "No comment", to the union's charges. ================= V E N E Z U E L A ================= PDVSA: Asks Bondholders to Waive Financial Reporting Requirements ----------------------------------------------------------------- Katia Porzecanski and Nathan Crooks at Bloomberg News report that Venezuela's state oil company, ensnared in the political crisis gripping the country, is asking bond investors for a temporary waiver from financial reporting requirements because it can't complete the documents on time. Bloomberg News notes that Petroleos de Venezuela asked trustee Mitsubishi UFJ Financial Group Inc. for an extension to Aug. 11, at which point it expects to make the documents available, according to a letter dated July 31 that the bank sent to holders of notes due in 2020. PDVSA was obligated under the indenture to provide audited financial reports for last year by the end of June, and failing to produce them could allow bondholders to declare the company in default, according to Bloomberg News. "Given the complexity of PDVSA's consolidated operations, the completion of the end of the year Financial Statements of PDVSA has taken significantly longer than in previous years," PDVSA wrote to the trustee in a letter dated July 21 that the bank distributed in its missive, Bloomberg News relays. A representative for PDVSA declined to comment. Venezuela and its state oil company are under intense scrutiny from investors as U.S. sanctions against key government officials and a power grab by President Nicolas Maduro threaten to disrupt financial flows, Bloomberg News notes. Prices for government and PDVSA bonds have tumbled in recent weeks amid concerns that Maduro's actions will trigger more severe measures against the oil-producing nation that may choke off its ability to pay debt, Bloomberg News says. In order to provide the waiver, the trustee would need the permission of holders with at least 50 percent of the principal amount of bonds outstanding, Bloomberg News discloses. If no permission is given, holders of 25 percent of the outstanding debt can issue a notice of default, which would trigger an event of default 60 days later if the situation hasn't been remedied, Bloomberg News relays. It is unclear if a similar request has been made to holders of other PDVSA bonds, Bloomberg News relays. The company's 2020 notes are backed by a first-priority lien on a 50.1 percent stake in Citgo Holding Inc., PDVSA's U.S. refining arm, Bloomberg News adds. The notes rose 2.7 cents on the dollar to 67.25 at 12:17 p.m. on Aug. 3, in New York. The upfront cost to protect PDVSA debt for one year with credit-default swaps was 52 percent on Aug. 4, implying a 73 percent probability of non-payment, according to CMA intraday data, Bloomberg News says. As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Moody's Investors Service assigned a Caa3 rating to Petroleos de Venezuela, S.A. (PDVSA)'s 8.5% $3.4 billion in senior secured notes due 2020. The outlook on the rating is negative. VENEZUELA: New Assembly Fires Attorney General ---------------------------------------------- Anatoly Kurmanaev and Juan Francisco Alonso at The Wall Street Journal report that Venezuela's new all-powerful Constituent Assembly swiftly moved forward with its pledge to stamp out dissent, removing Attorney General Luisa Ortega from office in its first session. Soldiers in riot gear cordoned off the attorney general's office early Saturday, denying entry to Ms. Ortega, who in recent months broke with President Nicolas Maduro and launched a series of investigations into corruption and human-rights abuses, according to The Wall Street Journal. Minutes later, government allies in the Supreme Court made public Friday's ruling to suspend her from office, and the new all- powerful Constituent Assembly voted unanimously to replace her with Tarek Saab, a Maduro loyalist sanctioned by the United States, the report notes. "Ortega had become a center of impunity," said Diosdado Cabello, a leading member of the Constituent Assembly, as he announced her removal, the report notes. "Here we must have justice, not revenge," the report quoted Mr. Cabello as saying. The report relays that Ms. Ortega has said the Supreme Court had no power to suspend her from office and that she would continue her investigations. "Liberty has been lost in this country," Ms. Ortega told reporters outside her office, adding that soldiers pushed her back from the entrance with riot shields, the report notes. "They want to hide the corruption in Venezuela and the violations of human rights," she added. The report relays that Ms. Ortega was once a fierce Maduro supporter, playing a crucial role in his consolidation of power. She rebelled against the president's decision to elect the Constituent Assembly, which she called illegal, the report notes. The body, made up of government loyalists including Mr. Maduro's wife and son, has powers to override other institutions and rewrite the constitution, the report relays. The assembly's swift removal of Ms. Ortega comes amid fears from the opposition that the body will stamp out last vestiges of democracy, banning free elections and dissolving congress, the report says. "The government is using brute force because it has nothing else left," Julio Borges, president of the opposition-controlled congress, said outside the attorney general's office, the report notes. "We are here to support democracy and rule of law," Mr. Borges added. The assembly voted to remain in power for at least two years, compared with the six months used by the last such body, which convened in 1999, the report says. Its members implied that their next target would be the private sector, whom they blame for hyperinflation, chronic food shortages and economic collapse, the report notes. "To live you have to eat, and today eating is very dependent on big corporations and their distribution networks," said Isaias Rodriguez, the assembly's vice president. "We have to make decisions on that matter," he added. Thousands of government supporters converged on downtown Caracas to inaugurate the Constituent Assembly in the Legislative Palace, which also houses the opposition-controlled congress, the report relays. The opposition said it would convene for a congressional session in the building, the report notes. It is unclear soldiers will allow them to enter, the report discloses. The government claims more than eight million Venezuelans voted for new assembly members in Sunday's election, which was boycotted by the opposition, the report says. The company that oversaw the elections, Smartmatic, said the election was a fraud, the report notes. The election has drawn global condemnation, with about 40 countries saying they wouldn't recognize the new assembly, the report says. The U.S. sanctioned Mr. Maduro and a dozen top officials, including the new attorney general, in the past month for human- rights violations, corruption and undermining democracy, the report discloses. Regional trading block Mercosur voted to suspend Venezuela for failing to follow democratic norms, the report relays. "For the first time the group is making a political statement about the regime," said Paulo Estivallet de Mesquita, a Brazilian diplomat at Mercosur, 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'." *********** 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. 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 * * *