/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170830.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 Wednesday, August 30, 2017, Vol. 18, No. 172 Headlines A R G E N T I N A NACION REASEGUROS SA: Fitch Affirms 'B' IFS Rating; Outlook Stable NACION SEGUROS DE RETIRO: Fitch Affirms 'B' IFS Rating NACION SEGUROS SA: Fitch Affirms B IFS Rating, Outlook Stable B R A Z I L JALLES MACHADO: S&P Alters Outlook to Stable & Affirms BB- CCR RB CAPITAL: Moody's Withdraws (P)Ba2 Rating on 3 Series of CRI TRANSMISSORA ALIANCA: Fitch Affirms BB+ Foreign Currency IDR C H I L E EMPRESA NACIONAL: Moody's Maintains b2 Baseline Credit Assessment C O L O M B I A CARACOL: Taken Off Venezuelan Airwaves G U A T E M A L A GUATEMALA: Court Blocks President's Expulsion of U.N. Prosecutor J A M A I C A DIGICEL GROUP: FTC to Resume Challenge of Firm's Claro Acquisition PAYLESS SHOESOURCE: Successfully Emerged From Restructuring P U E R T O R I C O PUERTO RICO: Phoenix Hired as Financial Advisor for Mediation Team PUERTO RICO: Ferrovial Agroman, Vitrol Appointed to Committee T R I N I D A D & T O B A G O ANGOSTURA HOLDINGS: Cuts 2 Executive Jobs - - - - - ================= A R G E N T I N A ================= NACION REASEGUROS SA: Fitch Affirms 'B' IFS Rating; Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Nacion Reaseguros, S.A.'s Issuer Financial Strength (IFS) rating at 'B'. The Rating Outlook is Stable. Fitch's affirmation of Nacion Reaseguros' IFS rating considers the support of its parent Banco de la Nacion Argentina (BNA). The rating also incorporates its favorable performance compared with its local and regional peers and the stability of its key financial and risk metrics. KEY RATING DRIVERS Fitch considers Nacion Reaseguros to be a core subsidiary of its parent, BNA. The company is expected to receive support from BNA if the need arises. BNA is a large, state-owned bank and its operations are guaranteed by the Argentinian government. The bank plays an important social role and supports the government policies. Fitch currently rates Argentina's long-term foreign- currency IDR 'B' with a Stable Outlook. Nacion Reaseguros has an ample equity base of ARS275 million (USD17 million) to support medium-term growth, while maintaining low leverage ratios as of June 2017. Current capital base exceeds the minimum regulatory capital requirements by 432%. The company, like other state-owned enterprises, has a conservative dividend policy, which favours sustained growth of its capital base. The company's market position benefits from a stable income stream coming from Nacion Seguros, which represents approximately 88% of total gross written premiums (GWP) as of June 2017. Additionally, the company is now underwriting risks for other local competitors, as a part of a shift in its business strategy. As of March 2017, Nacion Reaseguros is the fourth largest reinsurer in the Argentinian sector with a market share of 9.5%. In June 2017, the company reported a net income of ARS46 million, a return on assets and a return on equity of 8.5% and 18.3%, respectively. While its combined ratio remains competitive (86%), Nacion Reaseguros' net income is mainly explained by its large financial income contribution. As of the same date, financial income represented 1.5x its net income, originating primarily from government securities or infrastructure-focused mutual funds managed by the state. Nacion Reaseguros' portfolio remains highly concentrated and exposed to government related securities as a result of regulatory restrictions on investments in foreign assets and currencies. State-related securities accounted for more than 50% of total portfolio, while group related investment (term deposits in BNA) remains modest at 5%. In 2017, a new regulatory resolution opened the reinsurance sector to international competition under a gradual scheme until 2024. The new regulation will gradually lift the cap on the percentage of ceded premiums per contract with foreign reinsurers in the following years. Fitch believes the new regulatory framework generates uncertainty about the industry's long-term viability by eliminating the obligation to make reinsurance contracts with local competitors. In applying Fitch's insurance criteria when regarding the impact of ownership on Nacion Reaseguros' ratings, Fitch considered how ratings would theoretically be impacted under Fitch's bank support criteria. Fitch's insurance criteria is principles-based regarding ownership, and the referenced bank criteria was used to help inform Fitch's judgment in applying those principles. RATING SENSITIVITIES Considering the support driven ratings, any changes in Fitch's assessment of BNA's capacity and/or its willingness to support Nacion Reaseguros would result in changes to the reinsurer's ratings. NACION SEGUROS DE RETIRO: Fitch Affirms 'B' IFS Rating ------------------------------------------------------ Fitch Ratings has affirmed Nacion Seguros de Retiro S.A's (Nacion Retiro) Insurer Financial Strength (IFS) rating at 'B'. The Rating Outlook is Stable. Nacion Retiro's IFS rating considers the support of its parent, Banco de la Nacion Argentina (BNA). The rating also incorporates the company's favorable performance and the stability of its key metrics. KEY RATING DRIVERS Fitch considers Nacion Retiro to be a core entity of BNA. The company is expected to receive support from BNA if the need arises. BNA is a large, state-owned bank and its operations are guaranteed by the Argentinian government. The bank plays an important social role and supports government policies. Fitch rates Argentina's Long-term, Foreign-Currency IDR 'B'/Stable Outlook. Nacion Retiro is the second largest retirement insurer in the nation with 8.3% of Gross Written Premiums (GWP) at June 2017. This sector represents only 1.7% of Argentina's total insurance market. Nacion Retiro is focused on the group retirement savings insurance business and grew premiums by 29.5% over the last 12 months. Additionally, the company also maintains a run-off business of annuities, generated over the 2008 private pension system reform. The insurer concentrates the majority of assets in financial investments representing 98.0% of total assets as of June 30, 2017. The investment portfolio is diversified and holds reasonable liquidity. Nevertheless, the bulk of investments are exposed to Argentine government bonds, thus it is considered a relatively high risk portfolio. Leverage ratios have shown a favorable trend over the past five years, reaching a liabilities over equity ratio of 7.9x as of June 2017, supported by a growing paid-in capital coming from the retained earnings each year. Last year, Nacion Retiro profitability ratios showed a small reversion over the growing trend shown the past four years, which was sustained mainly by good financial investments income, given the country's inflation rate. Nevertheless, as of June 2017, the company reported an annualized ROAA of 3.7% and ROAE of 34.7%, remaining higher than the regional peer group. In applying Fitch's insurance criteria when regarding the impact of ownership on Nacion Retiro's ratings, Fitch considered how ratings would theoretically be impacted under Fitch's bank support criteria. Fitch's insurance criteria is principles-based regarding ownership, and the referenced bank criteria was used to help inform Fitch's judgment in applying those principles. RATING SENSITIVITIES Considering the support driven rating, any changes in Fitch's assessment of BNA's capacity and/or its willingness to support Nacion Retiro would result in changes to the insurer's ratings. NACION SEGUROS SA: Fitch Affirms B IFS Rating, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Nacion Seguros S.A's Insurer Financial Strength (IFS) rating at 'B'. The rating Outlook is Stable. Nacion Seguros' IFS rating considers the support of its parent Banco de la Nacion Argentina (BNA). The rating also incorporates the company's favorable performance compared with its local and regional peers, and the stability of its key financial and risk metrics. KEY RATING DRIVERS Fitch considers Nacion Seguros to be a core subsidiary of its parent, BNA. The company is expected to receive support from BNA if the need arises. BNA is a large, state-owned bank and its operations are guaranteed by the Argentinian government. The bank plays an important social role and supports government policies. Fitch rates Argentina's Long-Term Foreign-Currency Issuer Default Rating (IDR) 'B'/Stable Outlook. Benefiting from its relationship with BNA and the Argentine government, Nacion Seguros has historically maintained stable premium growth, positioning itself as a relevant player within the local industry, with a 4.3% share of total written premiums as of March 2017. Despite this focus on businesses with granular risk, the insurer also maintains a leading position in lines with large risks, such as fire and air transport, as well as technical lines. Nacion Seguros maintained positive net results as of June 2017 with a return on equity (ROE) of 26.5% down slightly from 2016. This compared favorably to the market average amid an economic environment characterized by high inflation (of close to 30%). The positive results over the last two fiscal years have been primarily driven by financial results that offset the negative operating earnings. The company's capital has been growing organically, as it has been retaining 100% of its earnings. The positive results and the favorable impact on the company's capital position have supported an expansion in operations, as well as significant growth in reserves as a result of regulatory adjustments. Nacion Seguros' liabilities-to-equity ratio of 2.3x (as of June 2017) compares positively with its peer group within the region (4.0x on average considering closing fiscal year information), reflecting both its retained earnings policy and its focus on short-term products. Nacion Seguros reported negative technical results as of June 2017, primarily due to an increase in auto and credit life insurance net loss. This has been partly compensated by improved cost efficiencies, with the expense ratio showing a clear downward trend. As of June 2017, the combined ratio stood at 103.8%, and is expected to return to below 100% as a result of the measures adopted by the company so far this year. Because of local regulations (that restrict investment in foreign assets and currencies), the company's investment portfolio is concentrated in local securities denominated in Argentine pesos, whose risk is correlated to Argentina's sovereign risk. Nacion Seguros operates with high retention levels, which are consistent with its business focus. Premiums are mostly ceded to its related company Nacion Reaseguros and its maximum exposure remains below 0.6% of its capital. In applying Fitch's insurance criteria when regarding the impact of ownership on Nacion Seguros' ratings, Fitch considered how ratings would theoretically be impacted under Fitch's bank support criteria. Fitch's insurance criteria is principles-based regarding ownership, and the referenced bank criteria was used to help inform Fitch's judgment in applying those principles. RATING SENSITIVITIES Considering the support driven rating, any changes in Fitch's assessment of BNA's capacity and/or its willingness to support Nacion Seguros would result in changes to the insurer's ratings. =========== B R A Z I L =========== JALLES MACHADO: S&P Alters Outlook to Stable & Affirms BB- CCR -------------------------------------------------------------- S&P Global Ratings revised its outlook on Jalles Machado S.A. (Jalles) to stable from positive. S&P also affirmed its 'BB-' global scale and 'brA+' national scale corporate credit ratings on the company. S&P said, "We revised the outlook to stable from positive to reflect the fact that Jalles hasn't improved liquidity as we previously expected, primarily due to weaker cash flow generation resulting from a severe drought in the region where it operates, and higher capex. Now, although we expect a gradual increase in cash flow generation, we don't foresee a rating raise in the short term because we believe the company wouldn't be able to maintain sufficient liquidity to meet its obligations in a scenario of adverse market circumstances in the next 12 months." RB CAPITAL: Moody's Withdraws (P)Ba2 Rating on 3 Series of CRI -------------------------------------------------------------- Moody's America Latina has withdrawn the (P) Ba2 (Global Scale, Local Currency) and (P) Aa2.br (National Scale) assigned on January 26, 2017 in respect to the 149th, 150th and 151th Series of real estate certificates ("certificados de recebiveis imobiliarios" or CRI) which were expected to be issued by RB Capital Companhia de Securitizacao (RB Capital, the Issuer or the Securitizadora). Issuer / Securitizadora: RB Capital Companhia de Securitizacao 149th, 150th and 151th Series of CRI, Ratings Withdrawn RATINGS RATIONALE Moody's has been informed by the issuer, RB Capital Companhia de Securitizacao, that the 149th, 150th and 151th Series of CRI will not be issued; as a result, Moody's is withdrawing the provisional ratings. 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. For information on the historical default rates associated with different global scale rating categories over different investment horizons. TRANSMISSORA ALIANCA: Fitch Affirms BB+ Foreign Currency IDR ------------------------------------------------------------ Fitch Ratings has affirmed Transmissora Alianca de Energia Eletrica S.A.'s Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) at 'BB+' and 'BBB', respectively. Fitch has also affirmed Taesa's Long-term National Scale Rating at 'AAA(bra)' and its BRL2.16 billion third senior unsecured debenture issuance. In addition, Fitch has assigned a Long-term National Scale Rating 'AAA(bra)(EXP)' to Taesa's proposed BRL435 million fourth senior unsecured debenture issuance. The issuance will be divided into two series. The first series for BRL255 million due in 2024 and the second for BRL180 million due in 2020. Proceeds from the first series will be used to complement the financing of the Mariana and Miracema projects, while the proceeds from the second series will be used for debt refinancing. The Rating Outlook is Negative for the Foreign and Local Currency IDRs and Stable for the National Scale Rating. A full list of rating actions follows at the end of this release. KEY RATING DRIVERS Taesa's ratings reflect Fitch's expectation that the company will keep a solid financial profile in the medium term, with credit metrics currently strong for the existing IDRs when compared to its peers in Latin America. On a pro forma consolidated basis, Taesa presents low leverage for a company in the power transmission sector, as well as an adequate liquidity profile. Fitch also views as manageable the risks associated with the construction phase of seven projects under development. The ratings incorporate Taesa's low business risk relative to its strong and diversified portfolio of power transmission assets, with predictable and robust cash flow generation and high operating margins. In addition, none of the 34 concessions that it participates expire before 2030. The moderate regulatory risk of the Brazilian power sector was also considered. Taesa's ratings are not constrained by the credit quality of one of its shareholders, Companhia Energetica de Minas Gerais (Cemig) (LC and FC IDRs B+/ Negative), since Cemig shares the company's control with Interconexion Electrica S/A E.S.P. (ISA) (LC and FC IDRs BBB+/ Stable), and its access to Taesa's cash is limited to dividends. Taesa's FC IDR is capped by the country ceiling, and the Negative Outlook for the LC and FC IDRs is due to the Negative Outlook for Brazil's sovereign IDR (BB). Fitch considers a three-notch difference between the company's LC IDR and the sovereign IDR appropriate. Leverage to Remain Low: Fitch expects Taesa to maintain its consolidated net financial leverage below 3.5x in the following years, absent new relevant acquisitions or greenfield projects. The company was able to manage its historical low consolidated leverage despite substantial dividend payments and significant acquisitions in recent years. For the latest 12 months (LTM) ended June 30, 2017, Taesa reported total debt/EBITDA ratio of 2.0x and net debt/EBITDA of 1.6x (using regulatory accounting rules, which proportionally consolidate all the transmission assets that the company participates in directly or indirectly). Considering IFRS accounting rules and Fitch's criteria, those ratios would be 3.0x and 2.4x, respectively. Low Business Risk: Taesa's ratings are based on the low business risk of its asset portfolio and no exposure to concession renewals over the short to medium term. Taesa is one of the largest power transmission companies in Brazil, with 9.1 thousand km of transmission lines spread across the country, being 1.4 thousand km under construction, considering its proportional participation in the concessions. The company participates in 34 concessions, including 15 fully-owned, which dilutes potential operational risks. Taesa also benefits from a diversified client base and guaranteed payment structure. The expiration of its concessions will not begin until 2030 and will take place on a staggered basis over the following years. Fitch expects Taesa will have the ability to manage its debt level in the coming years in order to mitigate the effect of a lower cash flow generation in its credit metrics. Around 80% of its permitted annual revenue (PAR) from July 2017 to June 2018 is expected to be reduced by 50% once the transmission lines complete 15 years of initial operation. This rule is included in the contracts for the concessions acquired prior to November 2006. The first PAR reduction occurred in 2016, and more material impacts are expected from 2018 onward. Predictable Cash Flow: Taesa's credit profile benefits from its highly predictable power transmission revenues, which are based on lines availability, rather than volume transported. The company's consolidated revenue growth has been driven by inflation-based annual PAR readjustments, remuneration of investments in existing assets, and the acquisition of new concessions. During the LTM ended June 30, 2017, the company reported consolidated net revenue and EBITDA of BRL2.223 billion and BRL1.997 billion, respectively, pursuant to Fitch's criteria and under regulatory accounting rules, considering proportional company participation by subsidiaries. These figures favorably compare with BRL2.124 billion and BRL1.901 billion in 2016. High EBITDA Margin: EBITDA margin has been high, from 87% to 90%, which is a characteristic of transmission companies in Brazil. Revenues and margins tend to fall with the beginning of the PAR reduction in part of the portfolio, being somewhat compensated by new start-up projects. During the LTM ended June 30, 2017, EBITDA margin was 89.8%, with 89.5% in 2016 and 89.7% in 2015. Free Cash Flow Still Positive: Fitch believes Taesa can manage its FCF at positive levels even considering the impact of the PAR reduction and the investments in the new projects. Nevertheless, the FCF will not be enough to cover recent acquisitions and the capital injections in projects not consolidated in its financial statements. Since 2016 the company has directly or indirectly acquired six new concessions through auctions promoted by the regulatory agency. Fitch considers that on a consolidated basis Taesa will have a cash need close to BRL700 million in capex and to BRL1.2 billion adding-up capital injections, from 2017 to 2021, for all its projects under development. Fitch's base case scenario forecasts that strong dividend payments will continue to pressure FCF, corresponding to 91% of net income. As a mitigating factor, cash flow from operations (CFFO) should remain robust, reflecting high business margins. In accordance with IFRS accounting rules, CFFO and FCF were BRL1.358 billion and BRL611 million, respectively, for the LTM ended June 30, 2017, after BRL740 million in dividends paid. DERIVATION SUMMARY Taesa has a stronger financial profile compared to its peers in Latin America, such as Interconexion Electrica S.A. E.S.P. (ISA, LC and FC IDR BBB+/Outlook Stable; Transelec S.A. LC and FC IDR BBB/Outlook Stable and Consorcio Transmantaro S.A. (CTM) LC and FC IDR BBB-/Outlook Stable). All of the companies have low business risk profiles and predictable cash flow generation, which is a characteristic of transmission electricity companies operating in a regulated industry. The main differentiation in the ratings of these companies is the country where their main revenues are generated and the location of their assets. While its peers are located in investment grade countries, Taesa's ratings are negatively impacted by the country ceiling of Brazil (BB+). KEY ASSUMPTIONS Fitch's key assumptions within Fitch ratings case for the issuer include: -- PARs adjusted considering inflation and, in some cases, 50% reduction when the 15th operational year is completed; -- Operational expenses adjusted by inflation; -- Minimum cash of BRL200 million; -- Dividends corresponding to 91% of net income calculated through IFRS accounting rules; -- No new acquisitions. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action A positive rating action for the company is unlikely in the short to medium term. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Deterioration in Taesa's consolidated financial profile, with net leverage going above 4.0x on a sustainable basis; -- A more challenging scenario for the power sector in Brazil; Negative rating actions on Brazil's sovereign rating may also pressure Taesa's IDRs. LIQUIDITY Fitch expects Taesa to keep a moderate liquidity position compared with short-term debt, which is mitigated by the company's robust operational cash flow generation and ample access to bank credit lines and capital market. By the end of June 2017, the cash and marketable securities, not considering the non-consolidated companies under IFRS, amounted to BRL695 million as per Fitch's calculations, covering 0.7x of the short-term debt of BRL1.001 billion. Taesa's consolidated debt is characterized by a manageable maturity profile and no foreign exchange risk. As of June 30, 2017, the company's pro forma debt was BRL3,967 million, considering its proportional stake in all subsidiaries, or BRL3.458 billion by the IFRS consolidation rule and Fitch's adjustments. The BRL3.458 billion debt was mainly composed of debentures (BRL3.038 billion). According to Fitch's methodology the debt on the IFRS accounting rule also includes off-balance sheet debt of BRL7 million related to guarantees provided to non- consolidated companies. FULL LIST OF RATING ACTIONS Fitch has taken the following ratings actions: Transmissora Alianca de Energia Eletrica S.A. -- Foreign Currency IDR affirmed at 'BB+', Outlook Negative; -- Local Currency IDR affirmed at 'BBB', Outlook Negative; -- Long-term National Scale Rating affirmed at 'AAA(bra)', Outlook Stable; -- BRL2,160 million third senior unsecured debenture issuance affirmed at 'AAA(bra)'; -- BRL435 million fourth senior unsecured debenture issuance assigned 'AAA(bra)(EXP)'. ========= C H I L E ========= EMPRESA NACIONAL: Moody's Maintains b2 Baseline Credit Assessment ----------------------------------------------------------------- Moody's Investors Service affirmed Empresa Nacional del Petroleo's Baa3 global scale foreign currency rating. This rating action follows Moody's decision, on August 24, 2017, to change the outlook on the government of Chile's Aa3 rating to negative from stable. Moody's maintained ENAP's Baseline Credit Assessment ("BCA") at b2. The outlook on the rating remains stable. Outlook Actions: Issuer: Empresa Nacional del Petroleo -- Outlook, Remains Stable Affirmations: Issuer: Empresa Nacional del Petroleo -- Senior Unsecured Bonds, Affirmed Baa3 RATINGS RATIONALE ENAP's Baa3 rating and b2 BCA are based on the company's long operating history, high market share in Chile and increasing business diversity. While ENAP is primarily a refining company, its revenues and cash flow have benefitted from oil and gas exploration and production, which in 2016 contributed over 30% of EBITDA. In addition, since 2014, the company's power generation business has sustained efforts to control costs using ENAP's own natural gas to generate power, which in turn is used in its refining operations or sold to third parties. ENAP's Solomon Complexity Index is 10.8, which supports a solid product slate at 80% between gasoline and diesel. However, ENAP's ratings are constrained by a tight liquidity management, the inherent volatility of commodity prices and the resulting uncertain cash flow generation and profitability, as well as elevated debt leverage, which reached 8.2x as of the last 12 months ended June2017. In the period, ENAP's debt rose only slightly but leverage increased from 7.4x in 2016 given lower operating profit, driven by increasing international crude prices and lower crack spreads. Increasing oil prices indirectly strain ENAP's refining margins since the company is prohibited from passing along increased power generation costs, which in Chile is mostly diesel. Since ENAP is 100% owned by the Chilean government, the company's Baa3 rating reflects the application of Moody's joint default rating methodology for government-related issuers (GRIs). ENAP's Baa3 rating benefits from five notches of uplift from its b2 BCA (which represents the intrinsic risk of the company, regardless of implicit support), given Moody's assumption of a high probability of support from the government of Chile in case of a distress situation. As evidence of support, in 2008 the government of Chile injected USD250 million to ENAP's capital to help the company deal with liquidity constraints. In addition, in July 2017 the Congress approved a new corporate governance law for ENAP that will allow it to receive up to USD400 million in equity contribution from the government before December 2018. The government of Chile appoints the company's board members and is closely involved in ENAP's budget approval and business strategy. The government's ability to provide support to ENAP is measured by its Aa3 credit rating and negative outlook, weakened somewhat by the high correlation between the government and the company on credit factors that could cause stress on both simultaneously. ENAP's stable Baa3 rating outlook assumes that its credit metrics will gradually improve starting in 2018. The company's financial profile will improve if it continues increasing business diversification and operating cash flow, which would help reduce leverage over the medium-term. The stable outlook also assumes that Chilean government support of the company will remain high. Moody's expects ENAP's leverage to remain elevated in 2017 as the company increases capital spending related to exploration and production, refinery upgrades, and mandatory environmental projects. From 2018 on, leverage should decline as investments mainly in oil and gas production generate increasing cash flows, crack spreads are not materially lower than historical average, and the company uses equity to fund a portion of capital spending. Since Chile keeps local fuel prices at parity with prices in the US Gulf of Mexico, changes in international crude prices tend to quickly pass to local prices and do not affect refining margins significantly. ENAP is strategically important to the Chilean energy sector as demonstrated by its solid market share as a supplier of 100% of gasoline and 44% of diesel consumption in the country. Although the country can import fuel from international suppliers, ENAP has the bulk of the pipeline and storage infrastructure in Chile, which supports its business position. In addition, the company's crude oil production represents approximately 15% of the total required by its refineries. ENAP's liquidity is weak, although supported by the benefits associated with its ownership by the Chilean state. As of June 30, 2017, ENAP's cash stood at USD115 million, which negatively compares with the USD581 million in total debt maturing from July 2017 to December 2018. However, USD340 million in short term debt are related to bank short term facilities, used to import crude and oil products; Moody's believes that ENAP will continue to be able to roll over these facilitates relatively easily. The constant need to access banking credit facilities is a concern but ENAP's funding strategy and financial policies have allowed the company to quickly adjust local prices to volatile costs and thus protect its profit margin. ENAP's refinancing risk is high. Its scheduled long term debt payments as of June 2017 in the next years are: USD161 million in 2017, USD420 million in 2018, USD613 million in 2019, and USD2.4 billion thereafter. Additionally, ENAP does not have committed lines of revolving credit. Refinancing concerns, however, are partially tempered by good capital market access. Furthermore, the company's bank loans are currently not subject to financial covenants. A significantly improved and sustained financial leverage profile more supportive of the cyclicality and volatility of the refining sector could lead to an upgrade, specifically debt/EBITDA at or below 5x. If ENAP is unable to start its deleveraging trend in 2018 or if there are indications of reduced implicit government support for ENAP, its b2 BCA could be lowered or its Baa3 rating could be downgraded. ENAP is Chile national oil company and the second largest state- owned company in the country. ENAP operates in three business segments: Exploration & Production (11% of revenues and 31% of EBITDA in 2016), Refining & Marketing (85% and 72%) and Gas & Power (4% and -2%). ENAP owns three refineries and is the only refinery company in Chile, with a total crude distillation capacity of approximately 230,000 barrels per day. As of June 2017, the company's upstream operations hold 145.6 million barrels of oil equivalent in total proved reserves, of which 38% are in Argentina, followed by Chile with 29%, Ecuador with 26%, and Egypt with 7%. ENAP was founded in 1950 and is headquartered in Santiago, Chile. In June 2017, it had total assets in the amount of $6.1 billion. The methodologies used in these ratings were Refining and Marketing Industry published in November 2016, and Government- Related Issuers published in August 2017. =============== C O L O M B I A =============== CARACOL: Taken Off Venezuelan Airwaves -------------------------------------- Associated Press reports that Colombian TV network Caracol has been taken off the air in Venezuela a day after President Nicolas Maduro delivered a scathing rebuke of the neighboring nation's media, joining a growing list of news outlets that have been blocked by his government. Caracol News director Juan Roberto Vargas told Colombian radio that the channel's coverage of ousted chief prosecutor Luisa Ortega Diaz appears to have been a "breaking point" that led to its removal, according to WSJ. The report notes that Colombian news channel RCN was also blocked from broadcasting on a Venezuelan local cable operator, though its signal remained active on DirecTV. "They make these decisions unilaterally without any type of discussion," the report quoted Mr. Vargas as saying. Mr. Maduro regularly accuses foreign news outlets of spreading a false narrative about Venezuela's government intended to pave the way for a supposed U.S. military intervention, the report relays. "Since the war in Iraq, we have not seen anything as sickening," Mr. Maduro said at a news conference with foreign journalists, singling out Caracol, Fox News and the BBC for what he considers biased coverage, the report notes. Earlier this year Venezuelan authorities shut down CNN en Espanol's feed after the Spanish-language channel aired a report about fraudulent passports that drew angry criticism from officials, the report notes. In all, about a half-dozen foreign networks have been blocked, including Colombia's El Tiempo and NTN24 and Todo Noticias of Argentina, the report discloses. Over the years Venezuela's government has also forced a number of critical national media outlets out of business, in some cases by refusing to renew their operating licenses, the report relays. In a 2017 report on global press freedom by Reporters Without Borders, Venezuela ranked 137th out of 179 nations, the report notes. "Freedom of the press is as scarce as food" in Venezuela, Mr. Vargas told Caracol Radio, a reference to people's struggles to find basic goods in the country, the report says. The report discloses that Mr. Vargas said the move came after escalating government actions against the station. In the last year, he said, three Caracol journalists have been barred from entering Venezuela and some of its equipment was confiscated. Mr. Vargas said Caracol would continue broadcasting over the internet but added that many Venezuelans say they have difficulty accessing the site online, for reasons he did not specify, the report relays. The New York-based Committee to Protect Journalists said via Twitter that it was "concerned" about Venezuelan authorities' decision to "remove another news channel from the air," the report notes. Relations between Venezuela and Colombia have grown especially frigid during the last four months of political upheaval in Venezuela, the report relays. Colombian President Juan Manuel Santos, one of Maduro's most frequent critics, was the first to announce in late July that his nation wouldn't recognize a vote in Venezuela for delegates to a new constitutional assembly that has nearly unlimited powers, the report says. Ms. Ortega, the ousted chief prosecutor who broke with Maduro earlier this year, arrived in Colombia after fleeing Venezuela. Mr. Santos has offered her political asylum, the report relays. The constitutional assembly removed Ms. Ortega from her post shortly after it convened in early August, the report discloses. She has promised to deliver evidence to several foreign governments showing that Mr. Maduro and top administration officials are involved in corruption, the relays. Venezuelan officials have denied her accusations, the report adds. ================= G U A T E M A L A ================= GUATEMALA: Court Blocks President's Expulsion of U.N. Prosecutor ---------------------------------------------------------------- Dudley Althaus at The Wall Street Journal reports that Guatemala's political crisis deepened when a constitutional court temporarily barred President Jimmy Morales from expelling a United Nations- backed anticorruption prosecutor probing allegations of illegal financing in the president's 2015 election campaign. Several cabinet members resigned to protest the president's expulsion order, and hundreds of protesters in Guatemala City gathered outside the presidential palace and the foreign ministry as Mr. Morales held an emergency meeting with remaining members of his government, according to The Wall Street Journal. Earlier in the day, Mr. Morales said he was acting "in the interests of the Guatemalan people, the rule of law and institutionality" by ordering Ivan Velasquez, the Colombian prosecutor who heads the U.N.'s anticorruption agency in Guatemala, to leave the country and declaring him "persona non grata," the report notes. The report relays that the expulsion order came two days after Guatemala's attorney general and Mr. Velasquez asked the country's Supreme Court to remove the president's immunity from prosecution for alleged electoral crimes. The president's announcement was made by way of a video posted on his Twitter account, the report notes. Mr. Morales, a popular television comedian who had never held public office before winning the presidency, has denied any wrongdoing, the relays. In a televised speech, Mr. Morales said he acted because Mr. Velasquez had "exceeded his authority," adding that fighting corruption and impunity was "not the work of one, two or three people but of the entire nation," the report discloses. U.N. Secretary General Antonio Guterres was shocked by the expulsion order, a spokesman said, reiterating Mr. Guterres's support for Mr. Velasquez's work, the report discloses. Formed a decade ago by an agreement between the U.N., Guatemalan officials and donor governments including the U.S., Mr. Velasquez's agency -- the International Commission Against Impunity in Guatemala, or Cicig -- is tasked with helping local prosecutors take on the country's endemic corruption and organized-crime networks, which critics describe as a parallel government in the country of 15 million, the report recalls. A respected Colombian prosecutor, Mr. Velasquez was appointed to his post four years ago, and his current mandate, like that of Cicig itselff, runs to September 2019, the report discloses. The attempt to expel Mr. Velasquez, who has received strong support from across Guatemalan society and from the U.S. and other foreign governments, has sharpened the country's constitutional crisis over the corruption probe, analysts say, the report notes. Besides the court injunction against his expulsion order, Mr. Morales has also faced stiff resistance from within his own government, according to local media reports, the report relays. The president said he had fired Foreign Minister Juan Carlos Morales, who isn't related to him, and the deputy prime minister, after they refused to implement the order, according to local media reports, WSJ notes. The ministers couldn't immediately be reached for comment. "[Morales] has completely isolated himself," Eric Olson, a Central America expert at the Woodrow Wilson Center in Washington, said of the Guatemalan president, the report relays. "The international community is completely united and it looks like they are going to take a very hard line on this," he added. Mr. Velasquez and Attorney General Thelma Aldana disclosed that investigators have identified at least $825,000 in anonymous contributions to the president's election campaign that went unreported to regulators, the report notes. If the high court approves their request, Mr. Morales's immunity could subsequently be revoked by a two-thirds vote in Congress. That would expose him to possible criminal prosecution, the report relays. Mr. Morales's own political party, the National Convergence Front, holds just 11 of 158 seats in the congress, the report notes. But Mr. Velasquez and Ms. Aldana also accused the legislature's two largest parties of campaign irregularities, perhaps prompting them to strengthen their support of the president, analysts said, the report relays. Along with Brazil, tiny Guatemala has been at the forefront of a fight against deeply rooted corruption in Latin America that economists say holds back development, the report notes. In Brazil, prosecutors have put scores of leading businessmen and politicians in jail, the report relays. But there is starting to be pushback from entrenched interests, analysts said, the report relays. In Brazil, lawmakers declined to strip President Michel Temer of immunity on corruption charges, saying the country's political stability came first. And now in Guatemala, Mr. Morales is pushing back, too, the report notes. The report discloses that the gathering crisis in Guatemala echoes a similar scandal two years ago that led to the resignation of then-President Otto Perez Molina, his vice president and other officials. Mr. Velasquez at that time was investigating a customs-fraud ring allegedly operated by the vice president and others, the report relays. Mr. Perez Molina, a retired army general, tried unsuccessfully to get Mr. Velasquez removed by the U.N. but stopped short of kicking him out, as Mr. Morales is trying to do, the report relays. After legislators removed Mr. Perez Molina's immunity, he stepped down in September 2015, months before the end of his term, and was arrested soon after, the report notes. Mr. Perez Molina, who has declared himself innocent, is currently on trial in Guatemala on charges related to alleged customs fraud, the report says. The request to strip Mr. Morales's immunity came shortly before the president met in New York with Mr. Guterres to ask that the mandate of Mr. Velasquez and Cicig be curtailed, the report discloses. The secretary-general's office later issued a statement supporting both Cicig and Mr. Velasquez, the report relays. That left expelling Mr. Velasquez as the Guatemalan president's only viable option in attempting to derail the investigations, the report notes. Considering the powerful national and international support for Mr. Velasquez, Mr. Olson and other analysts had considered such a move "political suicide," the report discloses. Fears that Mr. Morales would seek Mr. Velasquez's removal sparked outrage across Guatemala's political spectrum, from conservative business leaders to human-rights activists, the report relays. The reports also drew sharp warnings from the U.S. and other governments that have financed the Cicig's work and provided economic aid to Guatemala, the report notes. The attorney general's office and Cicig accused two other leading political parties of illicit funding and other violations related to the 2015 election, the report notes. "These are investigations that constitute an enormous step in the purging of a corrupt system to its roots," Prensa Libre, a leading Guatemalan newspaper, said in a Saturday editorial, the report says. Prosecutors separately have accused the president's brother Samuel and the president's son, Jose Manuel Morales, with charging a government agency in 2013 for hundreds of meals that were never served, the report discloses. They say the president and his brother share a banking account in which some of the alleged fraud funds were deposited, the report relays. The three men have all said they are innocent of the allegations, the report notes. The charges against Mr. Morales mark the latest in a series of corruption scandals that have plagued Guatemala since the country's return to democracy in the 1980s, following decades of military rule and a civil war that killed hundreds of thousands of people, primarily indigenous Maya villagers. ============= J A M A I C A ============= DIGICEL GROUP: FTC to Resume Challenge of Firm's Claro Acquisition ------------------------------------------------------------ RJR News reports that the Fair Trading Commission (FTC) said the judgment by the UK Privy Council paves the way for it to resume its challenge in the Supreme Court of Digicel's acquisition of Claro. It says it also opens the door for divestitures in completed mergers or remedies to adjust whatever anti-competitive effects may be experienced, according to RJR News. The Privy Council ruled that the Fair Trading Commission has jurisdiction over the 2011 acquisition by Digicel Jamaica of Claro. The Law Lords considered three main issues and ruled in favor of the FTC, the report relays. In particular, the Privy Council held that the FTC has jurisdiction to intervene in the telecommunications market in the same way as in any other market, the report notes. It also ruled that section 17 of the Fair Competition Act governing anti-competitive agreements applies to mergers and acquisitions, the report discloses. The Law Lords also held that the FTC's jurisdiction was not affected by the approval of the agreement between Digicel and Claro by the relevant Minister under the Telecommunications Act, the report notes. The FTC appealed to the Privy Council after the Court of Appeal held that while the Commission has jurisdiction in the telecommunications industry, it did not have jurisdiction over the acquisition by Digicel of Claro, the report adds. As reported in the Troubled Company Reporter-Latin America on May 26, 2017, Fitch Ratings has affirmed at 'B' the Long-term Foreign-currency Issuer Default Ratings (IDR) of Digicel Group Limited (DGL) and its subsidiaries, Digicel Limited (DL) and Digicel International Finance Limited (DIFL), collectively referred to as Digicel. The Rating Outlook is Stable. Fitch has also affirmed all existing issue ratings of Digicel's debt instruments. PAYLESS SHOESOURCE: Successfully Emerged From Restructuring ----------------------------------------------------------- RJR News reports that Payless ShoeSource which has several stores in Jamaica, announced that its North American entities successfully emerged from its Chapter 11 restructuring. A statement from the company said it emerged from bankruptcy with substantial liquidity after eliminating in excess of $435 million in funded debt, according to RJR News. The company has 3,500 brick and mortar stores with 400 of these in Latin America and the Caribbean, the report relays. Following the completion of the company's restructuring, Paul Jones will retire as Chief Executive Officer, the report adds. ====================== P U E R T O R I C O ====================== PUERTO RICO: Phoenix Hired as Financial Advisor for Mediation Team ------------------------------------------------------------------ The Financial Oversight and Management Board for Puerto Rico -- as the representative of the Commonwealth of Puerto Rico, the Puerto Rico Sales Tax Financing Corporation, the Puerto Rico Highways and Transportation Authority, the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, and the Puerto Rico Electric Power Authority -- seeks authorization from the U.S. District Court for the District of Puerto Rico to employ Phoenix Management Services, LLC as financial advisor for the mediation team appointed in the Title III cases and related proceedings, effective August 4, 2017. On June 23, 2017, the Court entered an order appointing the Mediation Team to facilitate confidential settlement negotiations of any and all issues and proceedings arising in the Title III Cases. The members of the Mediation Team are the Honorable Barbara Houser, the Honorable Thomas Ambro, the Honorable Nancy Atlas, the Honorable Victor Marrero, and the Honorable Christopher Klein. The Oversight Board requires Phoenix Management to: (a) assist the Mediation Team with: -- understanding the fiscal plans based on all data made available; -- understanding the types of consideration that may be offered under plans of adjustment; and -- identifying capital structures and debt restructuring techniques that may be useful in mediating plans of adjustment; (b) provide other services to the Mediation Team that may be requested to support facilitative and directive mediation sessions, including, but not limited to: -- identifying financial and information-related observations made by the parties to identify common ground on assumptions and methodologies, factual consistencies and inconsistencies, disjointed perceptions and incomplete information; -- sharing insights with the Mediators and participants, as appropriate, including reflecting and reframing parties' comments; -- helping the Mediators work through overlapping financial issues and impacts across the different mediations; and -- helping the Mediators identify underlying priorities and options for negotiated resolutions related to ongoing financial issues on-island; and (c) provide other services as requested by the Mediation Team. Phoenix Management will be paid at these hourly rates: Senior Managing Directors $495-$695 Senior Advisors $400-$650 Managing Directors $395-$525 Directors & Senior Directors $320-$450 Vice Presidents, Associates & Analysts $150-$350 Support Staff $75-$150 Phoenix Management will also be reimbursed for reasonable out-of-pocket expenses incurred. Martha E. M. Kopacz, a senior managing director of Phoenix Management, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Phoenix Management can be reached at: Martha E. M. Kopacz Phoenix Management Services, LLC Ten Post Office Square, Ste. 605N Boston, MA 02109 Tel: (617) 600-3600 E-mail: mkopacz@phoenixmanagement.com About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are onboard as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at: https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., Franklin Advisers, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $3.5 billion in COFINA Bonds and over $2.9 billion in other bonds issued by Puerto Rico and other instrumentalities, including over $1.8 billion of Puerto Rico general obligation bonds ("GO Bonds"). White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual Advisers LLC, Monarch Alternative Capital LP, Senator Investment Group LP, and Stone Lion Capital Partners L.P. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed a nine-member Official Committee of Retirees and a seven-member Official Committee of Unsecured Creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. PUERTO RICO: Ferrovial Agroman, Vitrol Appointed to Committee -------------------------------------------------------------- Guy Gebhardt, acting U.S. trustee for Region 21, on August 25 appointed Ferrovial Agroman and Vitrol, Inc., as new members of the official committee of unsecured creditors in the Chapter 9 cases of the Commonwealth of Puerto Rico and three other debtors. The other debtors are the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, Puerto Rico Highways and Transportation Authority and Puerto Rico Electric Power Authority. The committee is now composed of: (1) The American Federation of Teachers (AFT) Attn: Mark Richard Counsel to the President of the AFT 555 New Jersey Ave., N.W., 11th floor Washington, DC 20001 (2) Doral Financial Corporation c/o Drivetrain LLC 630 Third Avenue, 21st Floor New York, NY 10017 (3) Genesis Security 5900 Ave. Isla Verde L-2 PMB 438 Carolina, PR 00979 (4) Puerto Rico Hospital Supply Call Box 158 Carolina, PR 00986-0158 (5) Service Employees International Union (SEIU) 1800 Massachusetts Avenue N.W. Washington, D.C. 20036 (6) Total Petroleum Puerto Rico Corp. Citi View Plaza Tower I 48 Road 165 Oficina 803 Guaynabo, PR 00968-8046 (7) Unitech Engineering c/o Rama Ortiz Carro Urb Sabanera 40 Camino de la Cascada Cidra, PR 00739 (8) Ferrovial Agroman c/o Manuel Sanchez Pereira 1250 Ponce de Leon Edificio San Jose Suite 901 San Juan, PR 00907 (9) Vitol, Inc. 2925 Richmond Ave. Houston, TX 77098 The bankruptcy watchdog also announced in a court filing that from and after August 25, the panel will no longer serve as the official committee in the bankruptcy case of Puerto Rico Sales Tax Financing Corp. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are onboard as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at: https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., Franklin Advisers, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $3.5 billion in COFINA Bonds and over $2.9 billion in other bonds issued by Puerto Rico and other instrumentalities, including over $1.8 billion of Puerto Rico general obligation bonds ("GO Bonds"). White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual Advisers LLC, Monarch Alternative Capital LP, Senator Investment Group LP, and Stone Lion Capital Partners L.P. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed a nine-member Official Committee of Retirees and a seven-member Official Committee of Unsecured Creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. ================================ T R I N I D A D & T O B A G O ================================ ANGOSTURA HOLDINGS: Cuts 2 Executive Jobs ----------------------------------------- Trinidad and Tobago Newsday reports that Angostura Holdings Limited (Angostura) has made redundant two positions on its executive management team; executive manager of legal and executive manager of human resources and administration, effective August 17. These were replaced by the new role of executive manager of corporate services, according to Trinidad and Tobago Newsday. The report said this meant that for Lyn Lopez, executive manager of legal and Shane Ram, executive manager of human resources and administration, Aug. 17 was their final day on the job. In a statement, Angostura said it "can confirm that, as a result of a commercial performance review of the Company's operational requirements, we have undertaken a restructuring of our executive management team," the report notes. The person who assumes the new post of executive manager of corporate services will have "responsibility for services in the areas of legal, human resources, information and communication technology, administration, property, facilities and security. "This restructuring re-aligns Angostura's organization and management at the executive level in support of our business objectives, and will improve the company's efficiency and profitability. It is an important measure to ensure the competitiveness of the business and to ensure that Angostura is positioned to take advantage of opportunities to expand our business both locally and globally," the company said, the report adds. *********** 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 * * *