/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170824.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 Thursday, August 24, 2017, Vol. 18, No. 168 Headlines B R A Z I L BRASKEM SA: Moody's Confirms Ba1 LT Corporate Family Rating COMPANHIA SIDERURGICA: S&P Cuts Global Scale Ratings to 'CCC' C A Y M A N I S L A N D S PLATINUM PARTNERS: Intermediate Fund Files Chapter 15 Petition D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Miners 'Misery' Prompts Ban on Stone Exports DOMINICAN REPUBLIC: Gov. Earmarks US$2BB to Boost Agro, Fund SMEs G U A T E M A L A CEMENTOS PROGRESO: S&P Affirms 'BB' CCR & Retains Negative Outlook J A M A I C A JAMAICA: Shopkeepers Call for Return of Unlabelled Sugar JAMAICA: Gets Mixed Review from Global Forum on Transparency M E X I C O ROKA BIOSCIENCE: Agrees to Sell Assets to EIH Subsidiary TUXTLA GUTIERREZ: Moody's Cuts Issuer Rating to B1; Outlook Neg. WELLMAN DYNAMICS: Amended Docs on Assets Sale Due Aug. 25 P U E R T O R I C O WEST WINDOWS: Unsecureds to Recoup 19.14% Under Plan V E N E Z U E L A VENEZUELA: US Weighs Restricting Trades in Debt to Punish Maduro VENEZUELA: Maduro Says He Will Win 2018 Presidential Elections VENEZUELA: President Plans Overture to Trump - - - - - =========== B R A Z I L =========== BRASKEM SA: Moody's Confirms Ba1 LT Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service confirmed Braskem S.A. corporate family rating at Ba1 and the ratings on the foreign currency debt issuances of Braskem Finance Ltd and Braskem America Finance Company, fully guaranteed by Braskem S.A, at Ba1. The rating outlook is negative. Ratings Actions: Issuer: Braskem S.A. LT Corporate Family Rating, confirmed at Ba1 Issuer: Braskem America Finance Company USD750mm GTD Global Senior Unsecured notes due 2041, confirmed at Ba1 Issuer: Braskem Finance Ltd USD500mm GTD Global Senior Unsecured notes due 2018, confirmed at Ba1 USD750mm GTD Global Senior Unsecured bonds due 2020, confirmed at Ba1 USD1000mm GTD Global Senior Unsecured bonds due 2021, confirmed at Ba1 USD500mm GTD Global Senior Unsecured notes due 2022, confirmed at Ba1 USD750mm GTD Global Senior Unsecured notes due 2024, confirmed at Ba1 USD700mm GTD Global Senior Unsecured notes (perpetual), confirmed at Ba1 Outlook Actions: Issuer:: Braskem S.A: -- Outlook, Changed To Negative from Rating Under Review Issuer: Braskem America Finance Company: -- Outlook, Changed To Negative from Rating Under Review Issuer: Braskem Finance Ltd -- Outlook, Changed To Negative from Rating Under Review RATINGS RATIONALE The confirmation of the Ba1 ratings reflects the publication of audited financial statements for fiscal-year 2016 and 1st and 2nd quarters of 2017 with no material changes to unaudited results previously released. As a consequence, the company is now in compliance with Brazil's Securities and Exchange Commission (CVM) reporting regulations, as well as capital market debt agreements. This eliminates the risk that bondholders would take actions that could lead to a declaration of default and a debt acceleration, therefore removing a material liquidity risk for Braskem. However, the company has not yet filed the 20-F, and is not in compliance with SEC reporting regulations. The SEC has extended the filing deadline for the 20-F report until mid-November 2017. Still, Moody's understand this delay does not carry the risk of potential debt acceleration because the financial reporting requirements under capital markets debt agreements have been met by the CVM filing. The Ba1 rating reflects Braskem's standalone credit profile and risks. The rating is supported by its size as the largest petrochemical company in Brazil and in the Americas by production capacity of resins, with historically above industry average operating margins coming from high capacity utilization rates, long-term client relationships, and product customization. The rating also reflects the company's dominant market position in Brazil and the geographic diversification with operations in the USA, Mexico and Europe. Exports from Brazil and international operations in the US, Europe and Mexico already represented about 49% and 51% of the company's consolidated revenues and EBITDA, respectively, in LTM ended June 2017. Geographic diversity should improve further as the company maintains its strategy of international expansion, enhancing product and feedstock diversification, reducing the inherent volatility to the petrochemical cycles, and helping to offset the impact of weak domestic economic fundamentals on the company's creditworthiness. Braskem's Ba1 rating ranks one notch above Brazil's government bond rating. Challenges for the company's credit metrics include the timid economic growth in the Brazilian domestic market, which somewhat limits sales volume in Brazil, and the expected decline in PE spreads from 2017 onwards as new capacity hits the market, which will also compete with Braskem's established markets. The rating also factors in the company's exposure to naphtha and gas prices and its dependence on Petroleo Brasileiro S.A. - Petrobras (B1 positive) for the supply of a large portion of those inputs in Brazil and on Petroleos Mexicanos -- PEMEX (Baa3 negative) for the ethane supply in Mexico. Deceleration in global demand for resins and basic petrochemicals is an additional challenge. The negative outlook reflects the outlook of Brazil's government bond rating. An upgrade of Braskem's rating is unlikely given the high credit risk of the company's controlling shareholder Odebrecht S.A. (unrated), that could require Braskem to increase its dividend distribution to levels materially above the minimum law requirements, jeopardizing its liquidity position. In 2016, Braskem, supported by its strong cash flows, distributed BRL2 billion in dividends relative to FY 2015, a substantial increase when compared to dividends distributed in previous years (2011- 2015). Quantitatively, an upgrade would also require Braskem's leverage (as measured by Total Adjusted Debt to EBITDA) to be sustained below 3x (3.1x in the LTM ended June 2017, incorporating Mexico's project finance debt) and the maintenance of a sound liquidity profile and positive free cash flow generation. Negative pressure on the rating could result from weaker operating results or from persistently high leverage, with Total Adjusted Debt to EBITDA of 3.5x or above and Retained Cash Flow/Total Debt lower than 15% (17.9% in the LTM ended June 2017) on a sustained basis, with dividend payout consistently above the minimum established by the law. Furthermore, the rating could be negatively affected if Braskem faces material liabilities from litigations and class actions in addition to the amount related to the Global Agreement signed in December 2016 or if Braskem assumes substantial risks related to greenfield projects. The principal methodology used in these ratings was Global Chemical Industry Rating Methodology published in December 2013. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology. Braskem S.A. (Braskem) is the largest producer of thermoplastic resins (Polyethylene, Polypropylene and Polyvinyl chloride) in the Americas, with annual production capacity of 8.9 million tons. Braskem also has production capacity of 10.8 million tons of basic petrochemicals as ethylene, propylene, gasoline, among others and 1 million ton of caustic soda and chlorine. In the LTM ended June 2017, Braskem reported consolidated net revenues of BRL 48.5 billion (USD15.0 billion). COMPANHIA SIDERURGICA: S&P Cuts Global Scale Ratings to 'CCC' ------------------------------------------------------------- S&P Global Ratings has lowered its global scale rating to 'CCC' from 'CCC+' on Companhia Siderurgica Nacional (CSN). S&P said, "We also lowered our Brazilian national scale ratings on the company to 'brCCC' from 'brB'. At the same time, we have lowered the issue-level ratings on CSN's senior unsecured notes to 'CCC' from 'CCC+'. Finally, we placed the ratings on CreditWatch negative. S&P said, "The recovery ratings on CSN's senior unsecured notes remain at '4', given our expectation of average recovery of about 45%. "The downgrade reflects increasing liquidity pressures given that CSN faces about R$19.5 billion of debt maturities in the next three years, out of which about R$5.6 billion are senior unsecured notes due 2019 and 2020, which we believe CSN will have less flexibility to negotiate." The remainder of the debt is mostly with local banks in Brazil with whom CSN has good relationship. Nonetheless, CSN's short term debt represents a considerable refinancing risk while market conditions remain challenging despite some improvements in prices and volumes. Recent reductions of base interest rates in Brazil will contribute to lower overall interest cost for the company, but its high debt continues to lead to significant interest burden that limits CSN's ability to generate cash. In addition, delays to present audited financial statements have weakened CSN's financial flexibility, because they hamper the company's refinancing efforts, despite CSN's good relationship with banks in Brazil, and exposes the company to debt acceleration covenants, especially under its senior notes. The negative CreditWatch listing reflects the risk of further deterioration of CSN's liquidity if debt holders accelerate the company's debt payments due to the breach of information covenants. Also, uncertainties arising from the lack of timely information can hamper the company's ability to access the debt markets for its refinancing needs, which combined with CSN's high debt and some maturity schedule concentration over the next three years, could increase the chances for a distressed negotiation. S&P expects to resolve the CreditWatch listing over the next 90 days, once it has more clarity on imminent liquidity pressures, the company's refinancing strategy, and cash generation ability. ========================== C A Y M A N I S L A N D S ========================== PLATINUM PARTNERS: Intermediate Fund Files Chapter 15 Petition -------------------------------------------------------------- Liquidators of Platinum Partners Value Arbitrage Immediate Fund, Ltd., have filed a Chapter 15 petition to seek U.S. recognition of the liquidation proceedings in the Cayman Islands of the investment funds managed by the Platinum group. Margot MacInnis and Cosimo Borrelli, the duly appointed joint official liquidators of Platinum Partners Value Arbitrage Intermediate Fund Ltd., filed with the U.S. Bankruptcy Court for the Southern District of New York a verified petition for recognition of the liquidation in the Financial Services Division of the Grand Court of the Cayman Islands (Cause No. FSD 30 of 2017 (AJJ)) as "foreign main proceeding". The U.S. Court is already overseeing the Chapter 15 proceedings of the Platinum Partners Value Arbitrage Fund (International) Ltd. (in Official Liquidation) (the "International Fund") and Platinum Partners Value Arbitrage Fund LP. (in Official Liquidation) (the "Master Fund") -- collectively with the Intermediate Fund -- which are also in liquidation proceedings in the Cayman Islands. The Intermediate Fund is the remaining entity in the Platinum Partners Value Arbitrage offshore master/feeder structure (the "PPVA Offshore Group") yet to receive Chapter 15 recognition of its corresponding Cayman liquidation. Cayman Liquidation The Cayman Liquidation arose from the collapse of a set of investment funds promoted and managed by the Platinum group. The Court has already recognized the Master Fund's and the International Fund's liquidations in the Cayman Islands as the foreign main proceedings of those entities. The Intermediate Fund is the third Cayman Islands entity in the PPVA Offshore Group. The Intermediate Fund is a Cayman Islands exempted company, incorporated on April 9, 2010, with registration number 239229. Its registered office was previously located at Intertrust Corporate Services (Cayman) Limited, 190 Elgin Avenue, George Town, Grand Cayman KY'1-9005, Cayman Islands. Upon the appointment of the Liquidators, the location of the Intermediate Fund's registered office was Changed to Borrelli Walsh, G/F Harbour Place, PO Box 30847, Grand Cayman, KY1-1204. The Intermediate Fund was intended to serve as a flow-through, tax efficient blocker entity between the Master Fund and the International Fund. The International Fund operates as an investment fund, which invests all of its investable capital in the Intermediate Fund. In turn, the Intermediate Fund invests all of its investable capital in, and serves as a limited partner of, the Master Fund. The Master Fund invests and trades in US and non-US. financial instruments and other funds, as well as in certain other assets and holding companies. The authorized share capital of the Intermediate Fund is US$50,000, divided into: (a) 100 Class M Shares of a nominal or par value of US$1.00 each, of which one share is issued and outstanding, registered in the name of the Platinum Partners Value Arbitrage, LP -- Management Shareholder -- and (b) 4,990,000 Participating, Non-Voting Shares of a nominal or par value of US$0.01 each, of which the register of members shows no shares having been issued. The Management Shareholder is a Delaware limited partnership, and its general partner is Platinum Partners Value Arbitrage (GP) Corp., a Delaware corporation. The limited partners are stated to be Uri Landesman, Mark Nordlicht, and the Mark Nordlicht Grantor Trust. Mark Nordlicht is the sole director of the Management Shareholder. Pursuant to a Fourth Amended and Restated Investment Management Agreement dated March 9, 2007 -- amended and restated as of April 27, 2007, July 1, 2010, September 1, 2010 and December 1, 2010) -- Platinum Management (NY) LLC acted as the investment manager for the Intermediate Fund. Separately, SS&C Technologies, Inc. serves as the administrator for the Intermediate Fund. Criminal Proceedings in U.S. Various entities in the Platinum group and individuals associated with former management of the Platinum group are currently subject to criminal and regulatory proceedings in the United States. The United States Attorney's Office for the Eastern District of New York filed a criminal indictment on Dec. 14, 2016, against Mr. Nordlicht and six other executives of the Platinum Group. To the best of the Liquidators' knowledge, Mr. Nordlicht is currently on release under the terms of a Release Order (as amended) approved by the District Court for the Eastern District of New York. The United States Securities and Exchange Commission has also filed a civil complaint, dated Dec. 19, 2016, against the Investment Manager and eight others, including Mr. Nordlicht and the other individuals subject to the criminal indictment. The SEC has obtained an order from the District Court for the Eastern District of New York appointing a third-party independent receiver over the assets of certain other Platinum Group entities associated with other funds managed by the Investment Manager. Prior to the appointment of the Liquidators, control of the Intermediate Fund remained with Mr. Nordlicht. On Feb. 6, 2017, the International Fund liquidators, as shareholders of the Intermediate Fund, petitioned the Grand Court to enter an order that the Intermediate Fund would be wound up. Among other arguments, the Winding Up Petition asserted the following: (a) the ability of the Investment Manager, the Management Shareholder, and the Intermediate Fund to be appropriately managed had been significantly impaired; (b) a formal insolvency process would "allow court-appointed official liquidators to fully consider the affairs of the Intermediate Fund and ensure the efficient flow- through of any funds to be realized from the Master Fund for the benefit of the International Fund and its economic stakeholders; and (c) because the other entities in the Intermediate Fund's master/feeder structure (the Master Fund and the International Fund), are both in official liquidation, the Intermediate Fund necessarily is unable to continue its operations; there is no active business for the Intermediate Fund to undertake, In response, the Grand Court entered an order on Feb. 14, 2017 directing that the Intermediate Fund be wound up in accordance with the Companies Law, and appointing the Liquidators with immediate effect. Chapter 15 Recognition Because the Intermediate Fund serves as the conduit between the International Fund and the Master Fund, the Liquidators request recognition of the Cayman Liquidation so that the entire PPVA Offshore Group can benefit from the protections of Chapter 15 of the Bankruptcy Code, and to allow the winding up of the PPVA Offshore Group to be administered and implemented in an orderly and efficient manner across the three PPVA entities. In addition to the Intermediate Fund, one additional fund acts as a direct feeder fund into, and is a limited partner of, the Master Fund. This entity is registered in Delaware and is known as Platinum Partners Value Arbitrage Fund (USA) L.P. The Cayman Liquidation is a collective judicial proceeding as referenced in 15 U.S.C. Sec. 101(23), subject to the oversight and control of the Grand Court, encompassing all stakeholders of the Intermediate Fund. The proceeding is pending in the Cayman Islands, the country in which the Intermediate Fund was formed, maintains a registered office, maintains its center of main interests ("MI"), and where the Liquidators are engaged in the wind-down and liquidation of the Intermediate Fund's businesses and affairs, alongside the winding-down of the International Fund and the Master Fund, the other two offshore entities in the Intermediate Fund's master/feeder structure. The Liquidators submit that: (i) the Cayman Liquidation is the foreign main proceeding within the meaning of Sections 101(23) and 1502(4) of the Bankruptcy Code, (ii) the Liquidators are the duly appointed foreign representatives of the Intermediate Fund within the meaning of Section 101(24); (iii) the Liquidators and the Petition comply with all of the requirements of Sec. 1515 and Bankruptcy Rule 1007(a)(4); and (iv) recognition of the Cayman Liquidation would not be contrary to public policy under Sec. 1506 of the Bankruptcy Code. About Platinum Partners Funds New York-based Platinum Partners was $1.4 billion hedge fund founded by Mark Nordlicht. Cayman-based Platinum Partners Value Arbitrage Fund L.P. ("Master Fund"), Platinum Partners Value Arbitrage Fund (International) Ltd. ("International Fund"), and Platinum Partners Value Arbitrage Immediate Fund, Ltd. ("Intermediate Fund"), were investment funds promoted and managed by the Platinum group. Master Fund, registered with and regulated by the Cayman Islands Monetary Authority as a master fund, was a multi-strategy hedge fund. International Fund, registered with and regulated by CIMA as a mutual fund, offered participating shares to prospective investors. The International Fund's investment objective was to achieve superior capital appreciation through its indirect investment in the Master Fund. The Intermediate Fund was intended to serve as a flow-through, tax efficient blocker entity between the Master Fund and the International Fund. As of June 30, 2016, the Master Fund had total assets of $1,092,668,500. The Master Fund's total debt as of May 31, 2016, was $382,000,000. On Oct. 27, 2016, the Grand Court of Cayman Islands entered an order to wind up the operations of the Master Fund and the International Fund. Both Funds are in liquidation pursuant to the orders of the Financial Services Division of the Grand Court of the Cayman Islands (cause nos. FSD 131 of 2016 (AJJ) (Master Fund) and 118 of 2016 (AJJ) (International Fund) pursuant to Sections 92 and 104 of the Companies Law, of the Cayman Islands (2016 Revision) in relation to the International Fund and Master Fund, respectively. The Grand Court entered an order on Feb. 14, 2017 directing that the Intermediate Fund be wound up in accordance with the Companies Law. In December 2016, Mark Nordlicht was arrested at his home in New Rochelle, New York, in the U.S. He and six others were charged in connection to a $1 billion investment fraud that prosecutors said led the firm to be operated like a Ponzi scheme. Liquidators filed voluntary petitions under Chapter 15 of the Bankruptcy Code for the Master Fund and International Fund (Bankr. S.D.N.Y. Case Nos. 16-12925 and 16-12934) in New York. The Chapter 15 petitions were filed on Oct. 18, 2016, by Christopher Barnett Kennedy and Matthew James Wright, the duly appointed joint provisional liquidators of Master Fund. Liquidators of the Intermediate Fund filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 17-12269) on August 17, 2017. The Hon. Shelley C. Chapman is the case judge. Liquidators who signed the petition were Margot MacInnis and Cosimo Borrelli. Morgan, Lewis & Bockius LLP is the U.S. counsel. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Miners 'Misery' Prompts Ban on Stone Exports ---------------------------------------------------------------- Dominican Today reports that Energy and Mines Minister Antonio Isa disclosed a ban on amber and larimar exports until it regulates their extraction and marketing. Minister Isa said Energy and Mines aims to prevent exploitation he affirms affect several thousand workers, practitioners of what he called the " subsistent mining," from continuing to be "exploited mercilessly" by middlemen and exporters of the semiprecious stones, "while they live in absolute misery, risking their lives," the report notes. Minister Isa vowed to make the regulation to extract and market amber and larimar "simple," to improve profits for miners and exporters, the report relays. In a statement, Isa acknowledged reluctance to accept that measure, citing deficient extraction of amber and larimar, but warned that exports are banned until the situation is regulated, the report notes. As reported in Troubled Company Reporter-Latin America on July 24, 2017, Moody's Investors Service has upgraded the Dominican Republic's long term issuer and debt ratings to Ba3 from B1 and changed the outlook to stable from positive, based on the following key drivers: (1) The Dominican Republic's continued robust growth outlook compared to rating peers, coupled with a reduction in external risks as current account deficits have declined and international reserves have increased. (2) The reduction in fiscal deficits over the last four years and Moody's expectation that fiscal deficits will remain shy of 3% of GDP, supported by fiscal restraint and reduced transfers to the electricity sector. DOMINICAN REPUBLIC: Gov. Earmarks US$2BB to Boost Agro, Fund SMEs ----------------------------------------------------------------- Dominican Today reports that the government, through four credit institutions, has earmarked RD$104.7 billion (US$2.2 billion) to support agro producers and finance small and medium businesses over a five-year period. The Agricultural Bank has provided RD$80 billion at a soft rate, to finance agro producers and develop other agriculture projects, according to Dominican Today. Meanwhile, the Special Fund for Agricultural Development has disbursed RD$4 billion for the financing of 38 projects arising from the surprise visits that every Sunday made by President Danilo Medina, the report notes. Moreover, the director of the State-owned bank, Banca Solidaria, Mayra Jimenez said it has financed 386,762 micro and small businesses in lower income neighborhoods and communities nationwide, the report relays. The official said for that, RD$118.0 billion has been disbursed through the entity's 88 branches across the country, the report notes. Meanwhile Rosa Rita Alvarez, head of Reservas del Pais, said it has provided RD$2.7 billion of solidarity financing to 44 entities, adding that its loan portfolio is at RD$1.6 billion with arrears at less than one percent, the report adds. As reported in Troubled Company Reporter-Latin America on July 24, 2017, Moody's Investors Service has upgraded the Dominican Republic's long term issuer and debt ratings to Ba3 from B1 and changed the outlook to stable from positive, based on the following key drivers: (1) The Dominican Republic's continued robust growth outlook compared to rating peers, coupled with a reduction in external risks as current account deficits have declined and international reserves have increased. (2) The reduction in fiscal deficits over the last four years and Moody's expectation that fiscal deficits will remain shy of 3% of GDP, supported by fiscal restraint and reduced transfers to the electricity sector. ================= G U A T E M A L A ================= CEMENTOS PROGRESO: S&P Affirms 'BB' CCR & Retains Negative Outlook ------------------------------------------------------------------ S&P Global Ratings Services affirmed its 'BB' corporate credit rating on Cementos Progreso S.A. (CemPro). The outlook on the corporate credit rating remains negative. At the same time, S&P affirmed the 'BB' issue-level rating on Cementos Progreso Trust's $350 million senior unsecured notes due 2023. Over the recent quarters, CemPro has been able to maintain its about 80% share of the Guatemalan cement market despite the increase in competition given the entrance of a new local player. S&P said, "We expect CemPro to be able to protect its market share based on its long experience in Guatemala, large installed capacity for the country, and strong brand recognition and pricing power. CemPro also benefits from a large distribution network through its franchise ConstruRed, which consists of independent distributors with more than 379 sales points, which allows for broad domestic market coverage. However, in our view, the company's concentration in Guatemala, limits CemPro's capacity to increase its scale of operations compared with other global industry peers, given the modest economic growth in that country. "At the end of June 2017, the construction of the San Gabriel plant was more than 90% complete, and we expect the company to ramp-up the plant's operations during the first quarter of 2018. Throughout the construction phase, the company has been able to maintain its debt to EBITDA at close to 2.0x consistently, reflecting its prudent financial policy towards the use of debt. The new plant will increase CemPro's installed capacity to about 5 million tons per year, and its output will partly substitute the company's old production lines at its La Pedrega and San Miguel plants. In our view, the new cement plant will provide CemPro with additional operating efficiencies, given that it will reduce the company's less efficient production lines, and energy and transportation costs, increasing its profitability, with EBITDA margins trending towards the 44% area starting in 2018. The latter will compare favorably than those of CemPro's global rated industry peers." ============= J A M A I C A ============= JAMAICA: Shopkeepers Call for Return of Unlabelled Sugar -------------------------------------------------------- RJR News reports that some shopkeepers and operators of wholesale establishments across the island are calling for the return of unlabeled sugar until the packaging problem is resolved. The Ministry of Agriculture refuted claims of a shortage of sugar, instead stating that there was a shortfall in the 500-gram packages, according to RJR News. It said this resulted from a sharp increase in demand for that size, the report notes. Callers to the RJR News center say several areas are being affected by the shortfall and called for unlabelled sugar to be used in the interim, the report relays. However, President of the Jamaica Manufacturers Association, Metry Seaga, said this would be a retrograde step and urged sugar producers to quickly address the problem, the report discloses. The Agriculture Ministry expects the shortfall in the 500-gram packages to be addressed within two weeks, the report adds. As reported in the Troubled Company Reporter-Latin America on Feb. 9, 2017, Fitch Ratings affirmed Jamaica's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B' with a Stable Outlook. The issue ratings on Jamaica's senior unsecured Foreign and Local Currency bonds are also affirmed at 'B'. The Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is affirmed at 'B' and the Short-Term Foreign Currency and Local Currency IDRs at 'B'. JAMAICA: Gets Mixed Review from Global Forum on Transparency ------------------------------------------------------------ RJR News reports that Jamaica has received a mixed review from the OECD's Global Forum on Transparency. The country was rated "partially compliant," with the OECD citing the lack of a legal framework to ensure that beneficial ownership information is maintained and available, according to RJR News. The OECD noted that Jamaica has some requirements on beneficial ownership, but doesn't have "robust mechanisms" in place to ensure that the rules are applied to all Jamaican entities, especially corporations incorporated outside Jamaica but centrally managed from there, the report notes. Jamaica had been rated "largely compliant" in a 2013 review, but has fallen due to its failure to implement recommendations from that report, or for new standards introduced since then, the report relays. As reported in the Troubled Company Reporter-Latin America on Feb. 9, 2017, Fitch Ratings affirmed Jamaica's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B' with a Stable Outlook. The issue ratings on Jamaica's senior unsecured Foreign and Local Currency bonds are also affirmed at 'B'. The Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is affirmed at 'B' and the Short-Term Foreign Currency and Local Currency IDRs at 'B'. =========== M E X I C O =========== ROKA BIOSCIENCE: Agrees to Sell Assets to EIH Subsidiary -------------------------------------------------------- Roka Bioscience, Inc., a molecular diagnostics company focused on providing advanced testing solutions for the detection of foodborne pathogens, on Aug. 17, 2017, disclosed that it has entered into an asset purchase agreement with Rokabio, Inc., a newly formed, wholly-owned subsidiary of Institute for Environmental Health, Inc. ("IEH"), for the sale of substantially all of the assets of Roka Bioscience in an all-cash transaction for an aggregate purchase price of $17.5 million, subject to certain adjustments set forth in the asset purchase agreement. IEH's focus is to provide comprehensive risk management services to the food industry. In addition, the IEH family of companies is involved in the production and distribution of reagents, supplies, test kits and equipment to food testing laboratories and food companies. The IEH group operates in the U.S., Canada, Mexico, Germany, Austria, England, China and Australia. The closing of the transactions contemplated by the asset purchase agreement is subject to certain customary conditions, including the receipt of consent of Roka Bioscience's lender and approval by the stockholders of Roka Bioscience of the transactions contemplated by the asset purchase agreement. As part of the transaction, Roka Bioscience will be required to make a $2.5 million milestone payment pursuant to its license agreement. The asset sale is the initial step in a contemplated liquidation of Roka Bioscience. Stockholder approval will also be required for the plan of liquidation. "The announcement of this asset sale follows an extensive review of a range of strategic alternatives for Roka Bioscience, including obtaining further financing to continue as an independent entity and exploring the possibility of mergers and acquisitions," said Mary Duseau, Chief Executive Officer of Roka Bioscience. "This transaction represents the conclusion of a thorough process. We believe that the asset sale and anticipated liquidation will provide the greatest value to our stockholders." Pursuant to the terms of the asset purchase agreement, Roka Bioscience is required to provide transition services to the buyer through no later than December 31, 2017, with the intention of ensuring a successful transition of Roka Bioscience's business to the buyer. Assuming stockholder approval, liquidating distributions, in an amount to be determined, are expected to begin shortly after the completion of the transition services period. Roka Bioscience cannot assure you that the conditions to the closing of the transactions contemplated by the asset purchase agreement will be satisfied, or that the transactions will be completed. In the event Roka Bioscience does not successfully complete the transactions contemplated by the asset purchase agreement or complete a transaction resulting from a superior proposal (as described in the asset purchase agreement), Roka Bioscience will have limited options for financing its ongoing operations and will likely cease its operations or file for bankruptcy protection. About Roka Bioscience Roka Bioscience, Inc. (NASDAQ: ROKA) -- https://www.rokabio.com/ - - is a molecular diagnostics company focused on developing and commercializing advanced testing solutions for the food safety testing market. Its Atlas(R)Detection Assays incorporate its advanced molecular technologies and are performed on its "sample-in, result out" Atlas System that automates all aspects of molecular diagnostic testing on a single, integrated platform. The Atlas System and Detection Assays are designed to provide its customers with accurate and rapid test results with reduced labor costs and improved laboratory efficiencies. TUXTLA GUTIERREZ: Moody's Cuts Issuer Rating to B1; Outlook Neg. ---------------------------------------------------------------- Moody's de Mexico downgraded the issuer ratings of the Municipality of Tuxtla Gutierrez to B1 from Ba3 (Global Scale, local currency) and to Baa2.mx from A3.mx (Mexico National Scale). The outlook remains negative. RATINGS RATIONALE The downgrade of the issuer ratings reflects the deterioration of Tuxtla Gutierrez's operating and financial balances, along with its recent use of short term debt to finance operating expenditures, which will add pressure to its already tight liquidity position. Moody's expects the municipality's financial performance will remain weak, and that it will continue to post deficits over the next two years. In 2016, Tuxtla Gutierrez's operating margin fell to its weakest level in five years, equaling -13% of operating revenues, a substantial decline from 10.1% in 2013. Last year's result was the product of a large 36.8% rise in operating expenditures, driven by increased outlays for personnel and general services that were caused by rising wages and a large, one-time expense for public infrastructure studies. The municipality's consolidated financial deficit equaled -7.3% of total revenues, representing its second consecutive annual deficit. While the large increase in general services spending observed in 2016 is not expected to be repeated this year, Moody's estimates that the municipality will continue to experience fiscal pressure in 2017 and 2018, with operating results averaging -7% of operating revenues and financial deficits averaging -6% of total revenues. Tuxtla Gutierrez's low own source revenues, which equaled 16.8% of operating revenues in 2016, limit its ability to strengthen its operating performance. The municipality's operating deficits have led to a deterioration of its already weak liquidity position, reflected in a ratio of cash and equivalents to current liabilities of 0.30 times (x) in 2016. In December 2016 it had to contract a short term loan in the amount of MXN 95.8 million to meet current obligations, and the current outstanding balance of MXN 10.7 million will be repaid in December 2017. Moody's notes that that to the extent that Tuxtla Gutierrez continues to post large operational and financial shortfalls, it's liquidity will remain very weak, raising risks it may have to contract additional short-term loans in the future. The B1 rating also reflects Tuxtla Gutierrez's credit profile relative to Mexican peers. Tuxtla Gutierrez's debt level of 23% of operating revenues is low and in line with the median of the municipalities rated at B1 (23.7%) and debt service to total revenues of 1.8% compares favorably (B1 median, 3%). The negative outlook reflects the ongoing challenges that Tuxtla Gutierrez faces to consistently improve its operating and financial results, as well as its recent use of short term debt, which raises its liquidity pressure. WHAT COULD CHANGE THE RATING UP/DOWN Given the negative outlook, an upgrade is unlikely in the near term. However, the ratings can stabilize if Tuxtla Gutierrez improves and reduces the volatility in its operating balances in conjunction with a strengthening of its liquidity position. On the other hand, a further deterioration of the gross operating balance that leads to continued declines in its liquidity position and a higher use of short term debt could result in a rating downgrade. A downgrade Mexico's Sovereign rating could also lead to a downgrade of the issuer's ratings. The principal methodology used in these ratings was Regional and Local Governments published in June 2017. The period of time covered in the financial information used to determine the Municipality of Tuxtla Gutierrez's rating is between 01/01/2012 and 31/12/2016. (Source: Municipality of Tuxtla Gutierrez) Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. WELLMAN DYNAMICS: Amended Docs on Assets Sale Due Aug. 25 ---------------------------------------------------------- Judge Anita L. Shodeen of the U.S. Bankruptcy Court for the Southern District of Iowa ordered Wellman Dynamics Machining & Assembly, Inc., to file with the Court on Aug. 25, 2017, the amended documents in connection with the sale of substantially all assets to TCTM Financial DS, LLC for (i) a credit bid of $8,000,000, plus the assumption of the Assumed Liabilities, subject to overbid. A hearing on the Motion was conducted on Aug. 17, 2017. Based upon the representations of counsel, the parties have agreed to changes that involve the pending Motion, bid procedures and APA. Upon review of the filed amendments, the Court may enter an order approving the bid procedures without further notice or hearing. About Fansteel and Affiliates Headquartered in Creston, Iowa, Fansteel, Inc., operates four business units at four locations in the USA and one in Mexico with a workforce of more than 600 employees. Fansteel generated approximately $87.4 million in revenue in 2015 on a consolidated basis. Wellman Dynamics Corporation contributed 67% of Fansteel's sales. The rest of the sales are generated from Intercast, a division of Fansteel, and other non-debtor subsidiaries. Fansteel, Wellman Dynamics and Wellman Dynamics Machinery & Assembly, Inc., filed Chapter 11 petitions (Bankr. S.D. Iowa Case Nos. 16-01823, 16-01825 and 16-01827) on Sept. 13, 2016. The petitions were signed by Jim Mahoney, CEO. The cases are assigned to Judge Anita L. Shodeen. The Debtors disclosed total assets of $32.9 million and total debt of $41.97 million. The companies tapped Jeffrey D. Goetz, Esq., and Krystal R. Mikkilineni, Esq., at Bradshaw, Fowler, Proctor & Fairgrave, P.C., as counsel; RSM US LLP as tax advisor; Jeffrey Sands and Dorset Partners, LLC as business broker; and Mark J. Steger, Esq., at the Clark Hill Law Firm as Environmental Counsel. The companies filed motions to jointly administer the cases pursuant to Bankruptcy Rule 1015(b), and the court ordered the joint administration on Oct. 17, 2016. The court subsequently entered an order on May 24, 2017, vacating its Oct. 17 order and discontinuing the joint administration of the cases under the lead case of Fansteel. On Sept. 23, 2016, the U.S. Trustee for Region 12 appointed an official committee of unsecured creditors in Fansteel's bankruptcy case. The committee retained Morris Anderson & Associates, Ltd., as financial advisor; and Archer & Greiner, P.C. and Nyemaster Goode, P.C., as counsel. In March 2017, the U.S. trustee announced that the unsecured creditors' committee of Fansteel would no longer serve as the official committee in its case and that it would be reconstituted as the official committee of unsecured creditors in the Chapter 11 cases of Wellman Dynamics and Wellman Dynamics Machinery. As of March 22, 2017, a new creditors' committee has not yet been appointed in Fansteel's bankruptcy case. Wellman Dynamics filed a Chapter 11 plan of reorganization and disclosure statement on Jan. 11, 2017. On May 8, 2017, the creditors' committee of Wellman Dynamics filed a rival Chapter 11 plan of liquidation for the company. ====================== P U E R T O R I C O ====================== WEST WINDOWS: Unsecureds to Recoup 19.14% Under Plan ---------------------------------------------------- West Window Films Corp. and Eric William Maurosa Toro filed with the U.S. Bankruptcy Court for the District of Puerto Rico a disclosure statement dated Aug. 9, 2017, referring to the Debtor's plan of reorganization dated Aug. 9, 2017. Holders of Class 6 General Unsecured Claims -- totaling $167,141.01 -- will receive a total repayment of 19.14% of their claimed or listed debt which equals $32,000 to be paid pro rata to all allowed claimants under the class. Class 6 claimants will receive from the Debtor a non-negotiable, interest bearing at 2.75% annually, promissory note dated as of the Effective Date. Unsecured Creditors will receive 55 equal monthly installments in the amount of $620.04 (principal plus interest) starting Dec. 15, 2017. This installment will be distributed pro rata among creditors of this class. This class is impaired. Upon confirmation of the Plan, the Debtors will have sufficient funds to make all payments then due under the Plan. The funds will be obtained from the Debtors' business income. On the effective date of the Plan, the distribution, administration, management of the Debtors' affairs, collection of money, sale of property and distribution to creditors, unless otherwise provided, will be under the control of the Debtors. The funding of the Plan is contingent to the continuation of the Debtors' business. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/prb17-03604-58.pdf About West Windows Films Corp. West Window Films Corp. and Eric William Maurosa Toro, the company's president, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case Nos. 17-03607 and 17-03604) on May 23, 2017. Mr. Toro signed the petitions. The cases are substantially consolidated pursuant to an order issued on June 16, 2017. At the time of the filing, West Window disclosed that it had estimated assets of less than $100,000 and liabilities of less than $500,000. The Debtors are represented by Gloria Justiniano Irizarry, Esq., at the Justiniano's Law Office. ================= V E N E Z U E L A ================= VENEZUELA: US Weighs Restricting Trades in Debt to Punish Maduro ---------------------------------------------------------------- Anatoly Kurmanaev and Ian Talley at The Wall Street Journal report that the U.S. government is considering restricting trades in Venezuelan debt as it seeks to punish President Nicolas Maduro for undermining the country's democracy, according to people familiar with the matter. The unusual move would temporarily ban U.S.-regulated financial institutions from buying and selling dollar-denominated bonds issued by the Republic of Venezuela and state oil company Petroleos de Venezuela SA, according to a person who was briefed on the proposal, according to The Wall Street Journal. Another person familiar with the matter cautioned that the measure was one of several steps under consideration regarding Venezuela, the report notes. The person said the final decision would rest with President Donald Trump, the report relays. One option being considered is banning the trading in just some papers issued by the state oil company to limit its access to external funds, said a third person, the report discloses. The ban would be the first step against the Venezuelan financial system since Mr. Trump promised "swift economic action" against Mr. Maduro for installing a parallel parliament staffed with loyalists earlier this month, the report says. Up to now, the progressive waves of U.S. sanctions have targeted dozens of Venezuelan officials, banning them from traveling to the U.S. and freezing any assets in the country for alleged human rights abuses and corruption, the report notes. Vice President Michael Pence is scheduled to speak to Venezuelan expatriates in Miami, the report relays. The ban is designed to damage Mr. Maduro's support among military officers and government contractors who hold Venezuelan bonds, without immediately hurting the wider population, said the person briefed on the matter, the report discloses. Mr. Maduro's government has continued making bond payments despite undergoing the world's deepest recession, rewarding risk-tolerant investors with the world's highest yields, the report notes. Many major U.S. fund managers rely on Venezuelan debt for growth at a time when most rich countries offer negative interest rates on their bonds, the report says. The Venezuelan government has about $65 billion of outstanding debt, which is among the most frequently traded in the emerging markets, the report relays. Mr. Maduro has prioritized international debt payments at all costs, even as the country sank deeper into an economic crisis and his government cut back on imports of food and medicine, the report notes. Venezuelan bond trading attracted public scrutiny earlier this year after the asset-management business of Goldman Sachs Group Inc. bought $2.8 billion-worth of the country's debt at about 30 cents on the dollar, the report relays. The WSJ notes that Venezuelan opposition accused the investment bank of financing the Mr. Maduro's repression of peaceful protesters. Goldman Sachs had said the bonds were bought on the secondary markets and did not add any fresh funds to the government, the report discloses. Earlier this month, Goldman Sachs's rival Credit Suisse Group said it prohibited its traders from buying and selling certain Venezuelan bonds because of the risk the trades would finance human rights abuses, the report notes. The policy forbids employees from trading or using as collateral two specific bonds, one issued by the Venezuelan government due in 2036, and one by state oil PDVSA due in 2022, as well as bonds from government entities issued after June 1, 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'." VENEZUELA: Maduro Says He Will Win 2018 Presidential Elections -------------------------------------------------------------- Carlos Camacho at The Latin American Herald reports that Venezuela's embattled head of state, Nicolas Maduro, said he was going to emerge as the victor in the 2018 Presidential elections. "There will be elections and we will win, you can write it down," Mr. Maduro told foreign and domestic media representatives, according to The Latin American Herald. The report notes that President Maduro accompanied his predictions with jabs at U.S. President Donald Trump: "Not even if Trump shows up dressed as a Marine will the elections be stopped," exclaimed Maduro. "Not even if Trump invades Venezuela!" Later -- apparently forgetting that he had just mocked Trump -- Maduro said he wanted "a relationship of respect" with Trump, a man who over the last two weeks has called Maduro a dictator, hinted at invading Venezuela and included the Venezuelan in the short, short list of heads of state ever sanctioned by the U.S. Treasury as Specially Designated Nationals -- comprised of only six Presidents in the last 200 years, two of which are dead, the report relays. Later President Maduro said, again, that he wanted to speak on the phone with Trump, who has famously rebuked Maduro's calls and said he would only talk to the President of a Venezuela where democracy has been restored, the report notes. "You need to be brave to talk," he said in what seemed to be yet another jab at Trump, only to add later: "Maybe I will send him a letter!," the report discloses. The report relays that President Maduro over the weekend said, in a TV interview with longtime supporter Jose Vicente Rangel, that he was trying to tame his "burlesque" sense of humor, which he called in Spanish "sentido del humor burlistico" -- a good example of the malapropisms that seem to plague Maduro's speeches. A Trump-worthy impasse between journalists and security personnel arose during Maduro's broadcast, with bodyguards demanding some media cease broadcasting Maduro's speech live using smartphones, tablets and similar, smaller, devices, the report notes. "Only state television!" one security personnel was heard shouting to journalists. Some media representatives abandoned Miraflores in disgust, including international news service Reuters, 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'." VENEZUELA: President Plans Overture to Trump -------------------------------------------- EFE News reports that Venezuela's Nicolas Maduro said that he plans to write to US President Donald Trump in a bid to reduce tensions between Caracas and Washington. "I am going to send a letter to Trump very soon, because I'm certain that if he reads it with a little goodwill, many things can change for the good, and I want relations with the United States to change for the good," the leftist head of state told a press conference. "I hope he reads it and I hope that . . . sooner rather than later, we can have telephonic contact," the report quoted President Maduro as saying, according to EFE News. It was nearly two weeks ago that Maduro instructed Foreign Minister Jorge Arreaza to start the process of arranging a phone call with the US president, only for Trump to publicly reject any contact with the Venezuelan, the report relays. Denouncing Maduro as a dictator, Trump said that his administration would not rule out a "possible military option" to address the situation in Venezuela, where months of politically motivated violence have left more than 100 dead, including both supporters and opponents of the government, the report notes. "The path of the world has to be the path of dialogue," President Maduro said, though reminding reporters that his government has scheduled massive military readiness exercises for the coming weeks, the report relays. President Maduro went on to say that the Venezuelan armed forces have "various missile systems, defensive, ground-to-ground, ground-to-air, the various kinds of artillery, of anti-aircraft defense," all acquired from Russia in the framework of military cooperation, the report relays. "So I can tell you that Venezuela, together with Russia, has built a fortress for our sovereign defense because we Venezuelans -- and nobody else -- will defend this territory," President Maduro said, the report notes. The Trump administration has already imposed sanctions on Maduro and members of his government and Washington has indicated that it is prepared to go further, the report discloses. Amid public speculation about possible US measures targeting Venezuela's vital oil industry, Maduro said that he has devised a package of measures to "defend ourselves from the trade, petroleum and financial blockade that Donald Trump is going to order," the report relays President Maduro said that his government is analyzing the range of possible economic scenarios in partnership with the National Constituent Assembly, a body with sweeping powers that the opposition -- supported by many foreign governments -- rejects as illegitimate, 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 * * *