/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170912.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, September 12, 2017, Vol. 18, No. 181 Headlines A R G E N T I N A RAGHSA SA: Moody's Revises Outlook to Pos.; Affirms B3 CFR B R A Z I L DEWEY & LEBOUEF: No Need to Visit Prior Rulings, Gov't Lawyers Say JBS SA: Batista to Turn in Passport After Plea Deal in Jeopardy JBS SA: Former Chairman Surrenders to Authorities C H I L E GEOPARK LIMITED: Fitch to Rate Proposed Sr Notes Issuance 'B(EXP)' M E X I C O * MEXICO: Earthquake Death Toll Climbs to 90 P E R U CFG PERU: Soliciting Bids for Two of its Subsidiaries P U E R T O R I C O MINI MASTER: Allowed Unsecured Claims Amount Increased to $1.1MM PUERTO RICO: Peerless Oil Takes Ferrovial Agroman's Place in Panel SAN MIGUEL INDUSTRIAS: Fitch Rates $300MM Sr. Unsec. Notes BB+ T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Close Eye on Irma's Potential Damage V E N E Z U E L A RASSINI AUTOMOTRIZ: Fitch Affirms BB- IDR; Outlook Stable VENEZUELA: Opposition Participation Exceeds Expectations VENEZUELA: Seeks Support from the Islamic World Amid Spat With US X X X X X X X X LATAM: Irma Leaves Battered Caribbean in Its Wake - - - - - ================= A R G E N T I N A ================= RAGHSA SA: Moody's Revises Outlook to Pos.; Affirms B3 CFR ----------------------------------------------------------- Moody's Investors Service has affirmed Raghsa S.A.'s B3 Corporate Family rating and B3 rating of its USD119 million senior unsecured notes due in 2024 and USD38 million due in 2021. The outlook of all ratings was changed to positive from stable. Approximately USD158.7 million in rated debt instruments affected. RATINGS RATIONALE Rahgsa's outlook change to positive from stable reflects the company's good liquidity profile and good prospects for the premium office market in the City of Buenos Aires. Moody's expects an increase in average leased area in upcoming quarters to around 92 thousand m2 from the 81 thousand as of fiscal year ended in February 2017, particularly as recently finished Madero Riverside building increases its occupancy rate, which will support cash generation and Ebitda growth. Raghsa has no significant debt maturities until July 2020, which supports its good liquidity profile. The B3/Baa2.ar ratings and positive outlook reflect also Raghsa's strong brand name and position in the local market, good asset quality and its management's solid track record in the industry. The company's high occupancy rates and healthy tenants base also supports the ratings and business model. Raghsa has exposure to FX risk because most of its debt is denominated in US dollars, but this is mitigated by the fact that lease fees are set in US dollars but are payable in Argentine pesos and by its high holdings of marketable securities in US dollars. As of May 2017, Raghsa's cash and marketable securities in foreign currency amounted to USD106 million, compared to a total debt in foreign currency of USD159 million, with no maturities until July 2020. However, Moody's estimates Raghsa's foreign currency holdings of marketable securities to be reduced by capital expenditures needs to finish the "Centro Empresarial Libertador" office building, expected to be finished by mid-2019, and by further acquisitions of land bank. Key rating challenges are Raghsa's small size relative to industry peers, its portfolio concentration in the city of Buenos Aires and historical margin volatility. Upcoming cash needs for capital expenditures and land bank acquisition will temporarily tighten the company's liquidity profile until the project in the pipeline increases its cash generation base by fiscal year end February 2020, but Raghsa has some flexibility over the timing of this expected expenses. Also, available high quality investment assets provide a good source of alternative liquidity. The ratings could experience upward pressure if Argentina's government bond rating (B3 positive) would be upgraded. In addition, upward rating momentum could occur should the company continue to make progress in its growth strategy accompanied by an adequate liquidity profile. Quantitatively a rating upgrade would require that total assets remain above USD500 million (USD747 million as of May 31, 2017), with net debt to Ebitda as adjusted by Moody's below 8.0x (4.7x as of the last twelve months ended May 31, 2017) and debt to total gross assets below 50% (21.5% as of May 31, 2017). Interest coverage as measured by EBITDA to interest expenses should remain above 2.0x (4.9x as of the last twelve months ended May 31, 2017). A rating downgrade would likely result from a significant deterioration in Raghsa's liquidity profile. Any significant increase in leverage or encumbering of its portfolio of assets could also prompt a rating downgrade. In particular, if debt to adjusted EBITDA exceeds 8.0x or if the ratio of EBITDA to interest expense falls below 1.5x, the ratings could be subject to downward pressure. Raghsa S.A. is an Argentine family owned fully integrated developer that has been committed to the construction, development, ownership and leasing of premium office, commercial and residential buildings for more than 45 years. Management skills and track record in the industry are key factors for its business model. For the last twelve month period ended on May 31, 2017, Raghsa's reported total assets of ARS 12.05 billion (approximately USD747 million) and adjusted EBITDA of ARS530 million (approximately USD34.8 million). The principal methodology used in these ratings was Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. =========== B R A Z I L =========== DEWEY & LEBOUEF: No Need to Visit Prior Rulings, Gov't Lawyers Say ------------------------------------------------------------------ Stewart Bishop, writing for Bankruptcy Law360, reports that Manhattan prosecutors told a New York state judge that former Dewey & LeBoeuf Chief Financial Officer Joel Sanders is just rehashing already-decided arguments. According to Law360, Mr. Sanders is trying to nix his conviction for fraud and conspiracy. Law360 states that the government lawyers contend that it's clear their case at trial was legally sufficient, and there's no reason to revisit the court's prior rulings finding the case up to snuff. About Dewey & LeBoeuf Dewey & LeBoeuf LLP sought Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) in 2012 to complete the wind-down of its operations. The Firm had struggled with high debt and partner defections. Dewey disclosed debt of $245 million and assets of $193 million in its Chapter 11 filing late evening on May 29, 2012. The petition was signed by Jonathan A. Mitchell, chief restructuring officer. Dewey & LeBoeuf LLP operated as a prestigious, New York City- based, law firm that traced its roots to the 2007 merger of Dewey Ballantine LLP -- originally founded in 1909 as Root, Clark & Bird -- and LeBoeuf, Lamb, Green & MacCrae LLP originally founded in 1929. In recent years, more than 1,400 lawyers worked at the firm in numerous domestic and foreign offices. At its peak, Dewey employed about 2,000 people with 1,300 lawyers in 25 offices across the globe. When it filed for bankruptcy, only 150 employees were left to complete the wind-down of the business. Dewey's offices in Hong Kong and Beijing are being wound down. The partners of the separate partnership in England are in process of winding down the business in London and Paris, and administration proceedings in England were commenced May 28. All lawyers in the Madrid and Brussels offices have departed. Nearly all of the lawyers and staff of the Frankfurt office have departed, and the remaining personnel are preparing for the closure. The firm's office in Sao Paulo, Brazil, is being prepared for closure and the liquidation of the firm's local affiliate. The partners of the firm in the Johannesburg office, South Africa, are planning to wind down the practice. The firm's ownership interest in its practice in Warsaw, Poland, was sold to the firm of Greenberg Traurig PA for $6 million. The Pension Benefit Guaranty Corp. took $2 million of the proceeds as part of a settlement. Judge Martin Glenn oversees the case. Albert Togut, Esq., at Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the lenders under the Revolver Agreement, hired Kramer Levin Naftalis & Frankel LLP. JPMorgan, as Collateral Agent for the Revolver Lenders and the Noteholders, hired FTI Consulting and Gulf Atlantic Capital, as financial advisors. The Noteholders hired Bingham McCutchen LLP as counsel. The U.S. Trustee formed two committees -- one to represent unsecured creditors and the second to represent former Dewey partners. The creditors committee hired Brown Rudnick LLP led by Edward S. Weisfelner, Esq., as counsel. The Former Partners hired Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel. FTI Consulting, Inc., was appointed secured lender trustee for the Secured Lender Trust. Alan Jacobs of AMJ Advisors LLC, was named Dewey's liquidation trustee. Scott E. Ratner, Esq., Frank A. Oswald, Esq., David A. Paul, Esq., Steven S. Flores, Esq., at Togut, Segal & Segal LLP, serve as counsel to the Liquidation Trustee. Dewey's liquidating Chapter 11 plan was approved by the bankruptcy court in February 2013 and implemented in March. The plan created a trust to collect and distribute remaining assets. The firm estimated that midpoint recoveries for secured and unsecured creditors under the plan would be 58.4 percent and 9.1%, respectively. JBS SA: Batista to Turn in Passport After Plea Deal in Jeopardy --------------------------------------------------------------- Luciana Magalhaes and Jeffrey T. Lewis at The Wall Street Journal report that the former chairman of Brazilian meatpacking giant JBS SA, Joesley Batista, offered to turn his passport over to legal authorities and has requested a hearing with the country's Supreme Court following reports that a blockbuster plea deal he signed earlier this year could soon fall apart, according to a member of his legal team. Brazilian news media reported that Brazil's attorney general, Rodrigo Janot, asked the Supreme Court to throw out at least parts of the deal and have Mr. Batista arrested, citing a failure to provide all the information they had regarding corrupt practices, according to The Wall Street Journal. Neither the Supreme Court nor the Attorney General's office could confirm or deny that Mr. Janot had asked to revoke Mr. Batista's criminal immunity, as the details of the probe aren't public, the report notes. Mr. Batista's brother, JBS Chief Executive Wesley Batista, also signed the agreement, and so far there's no indication his deal is in jeopardy, the report relays. Mr. Janot earlier said a recording, possibly delivered by mistake along with other evidence by Joesley Batista and executives, suggested that some of them omitted evidence and that they illegally got help from a law-enforcement official to arrange the deal that allowed them to escape prosecution, the report notes. Mr. Batista, still a major shareholder in JBS, could face jail time if his deal is partially or completely overturned, the report discloses. The controversial agreement granted him and other JBS executives full criminal immunity for paying millions of dollars in bribes to nearly 2,000 Brazilian officials over at least the past decade, in return for their complete cooperation, the report adds. As reported in the Troubled Company Reporter-Latin America on July 31, 2017, S&P Global Ratings affirmed its 'B+' global scale corporate credit ratings on JBS S.A. and JBS USA and its 'brBBB-' national scale rating on JBS. S&P also affirmed the 'B+' senior unsecured debt ratings on JBS and JBS USA and the 'BB' senior secured debt ratings on JBS USA. At the same time, S&P removed all ratings from CreditWatch. The outlook is negative. JBS SA: Former Chairman Surrenders to Authorities ------------------------------------------------- Luciana Magalhaes and Jeffrey T. Lewis at The Wall Street Journal report that Joesley Batista, the former chairman of meatpacking giant JBS SA, turned himself over to Brazil's legal authorities after the country's Supreme Court approved his arrest for allegedly reneging on the terms of a plea-bargain agreement. High court Justice Edson Fachin approved the arrest following a request from Attorney General Rodrigo Janot, according to documents made public, The Wall Street Journal notes. In his decision, Mr. Fachin said there are multiple indications that Mr. Batista is "part of an organization dedicated to the systematic practice of crimes against the public administration and money laundering" and agreed to partially suspend some legal benefits that had been granted to him, making his arrest possible, according to The Wall Street Journal. The report notes that Mr. Batista and other JBS executives signed the plea deal in April after admitting to paying millions of dollars in bribes to nearly 2,000 Brazilian officials over at least the past decade. The controversial agreement granted them immunity for their criminal acts in return for their full cooperation with legal authorities, the report relays. Mr. Janot recently said a recording, possibly delivered by mistake along with other evidence by Joesley Batista and executives, suggested that some of them omitted evidence and that they illegally got help from a law-enforcement official to arrange the deal that allowed them to escape prosecution, the report says. As part of his agreement, the former chairman of JBS provided evidence that sparked criminal charges earlier this year against President Michel Temer, who he taped in a secret conversation. Mr. Temer was accused of accepting bribes and has denied wrongdoing. The charges against the president were shelved by a vote in Congress, the report discloses. Mr. Batista said in a note that he surrendered voluntarily and denied having omitted evidence related to his plea agreement, the report notes. His brother, JBS Chief Executive Wesley Batista, also signed the agreement, and so far there is no indication his deal is in jeopardy, the report adds. As reported in the Troubled Company Reporter-Latin America on July 31, 2017, S&P Global Ratings affirmed its 'B+' global scale corporate credit ratings on JBS S.A. and JBS USA and its 'brBBB-' national scale rating on JBS. S&P also affirmed the 'B+' senior unsecured debt ratings on JBS and JBS USA and the 'BB' senior secured debt ratings on JBS USA. At the same time, S&P removed all ratings from CreditWatch. The outlook is negative. ========= C H I L E ========= GEOPARK LIMITED: Fitch to Rate Proposed Sr Notes Issuance 'B(EXP)' ------------------------------------------------------------------ Fitch Ratings expects to rate GeoPark Limited's proposed issuance of senior notes due 2024 'B'(EXP)/'RR4'. The issuance will be collateralized by a pledge of approximately 80% of the shares of its operating companies in Chile and Colombia (GeoPark Chile S.A. and GeoPark Colombia Cooperatie U.A, "the Collateral"). The notes will rank effectively junior to any future secured obligations of the GeoPark Limited and its subsidiaries with a security interest on assets not constituting collateral for the proposed debt issuance. Fitch has also assigned Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of 'B' to GeoPark. The Rating Outlook is Stable. Simultaneously with the issuance, the company launched a tender offer to repurchase the 2020 notes issued by its wholly owned subsidiary GeoPark Latin America Limited Agencia en Chile (GeoPark). Net proceeds from the issuance will be used to fund the tender, to finance the redemption of 2020 notes, as well as for capital expenditures and other general corporate purposes. Fitch expects the net impact of the issuance and tender will be neutral to GeoPark's credit profile. GeoPark's ratings reflect the company's increased production and improved reserve life and its ability to implement an effective cost reduction plan. Fitch expects GeoPark will remain a low cost producer while significantly increasing production levels to above 30,000 by 2017 and 60,000 boed by 2020. Despite improved operating metrics, the rating is constrained by the company's relatively small size and low diversification of oil fields. Increase in production to the aforementioned levels while maintaining reserve life and capital structure unaffected would bode positively for GeoPark's credit quality. The rating also reflects Fitch's expectations that GeoPark will continue strengthening its capital structure with a rapid deleveraging process that would result in the company's gross leverage declining to approximately 2.0x in the short term considering Fitch's revised oil price deck assumptions. Fitch's price deck expectations for Brent prices are USD52.5/bbl in 2017, $55/bbl in 2018, $60/bbl in 2019 and $65/bbl in the long term. KEY RATING DRIVERS Neutral Cash Flow Generation: Fitch expects GeoPark to report neutral to positive free cash flow (FCF) generation over the medium term, supported by growing production, relatively low capex and no dividends payment. Fitch expects that GeoPark will generate enough cash flow from operations (CFFO) after interest expenses to cover capex requirements. GeoPark's financial profile benefits from stable cash flow from the natural gas contract sales in Chile and Brazil, the prolific oilfields in which it operates in Colombia and its low costs structure. Expected Production Increase: Fitch expects GeoPark's daily production to increase by 30% year-over-year (yoy), reaching close to 30,000 boe/d by 2017 and to approximately 60,000 by 2020. These expectations assume a modest crude oil price increase in the long term towards USD65/bbl Brent. During the second quarter of 2017 (2Q17), the company's output increased by 24% yoy to 26,132 boed and is expected to reach 30,000 by the end of 2017. Despite growing production, GeoPark's ratings are constrained by its small size and low diversification of oilfields. Effective Cost Reduction Plan: Fitch expects that the company will maintain the cost-reduction efforts implemented during the low oil price environment. GeoPark's competitive advantages are derived from its operations in onshore and growing oilfields which results in lower exploration costs than big players in the region. In 2016, it reduced its half cycle cost by almost 8% yoy to $16.4/bboe. Since 2015, the company has focused on lower risk projects and concentrated production in Colombia, specifically in the Tigana and Jacana oil fields in the Llanos 34 block. In 2016, the company continued focusing on preserving a solid cash position by reducing capex, drilling costs and operating expenses. Under Fitch's oil price assumptions, Fitch forecasts the company will record a netback of USD20 to USD32 per barrel, significantly increasing the company's EBITDA to USD140 million in 2017 and to around USD250 million by 2019. Adequate Reserve Life: GeoPark maintains an adequate reserve life and it is currently not considered a constraining factor for the company's ratings. As of Dec. 31, 2016, GeoPark had proved, developed and producing (PDP) oil and gas reserves of 19.4 million barrels of equivalent (mmboe), while it's proved reserves (1P) totalled 78.3 mmboe. This translates into a 1P reserve life of 9.5 years. Certified reserves in Peru were incorporated by the end of December 2016 following GeoPark's closing of the acquisition of 75% of the Morona field and formal approval of the government of Peru under supreme decree. Improving Credit Profile: Fitch expects GeoPark's EBITDA to be approximately USD140 million for a total debt/EBITDA of 2.1x in 2017. Considering production will reach around 30,000 boed in 2017 and above 60,000 boed by 2020, Fitch expects the company could repay its debt with its own cash flow generation. GeoPark's credit metrics deteriorated significantly during 2015-2016 as a result of the decrease in oil prices. During 2015 and 2016, total debt/EBITDA increased to 5.8x and 5.3x, respectively, from 1.7x in 2014. Debt on a reserve basis remain adequate as Fitch estimates that total debt/1P reserves stands close to $4.6/boe after the incorporation of the reserves in Peru. DERIVATION SUMMARY GeoPark's ratings reflect the company's stable production amid the downturn in the oil and gas industry, and its ability to maintain an effective cost reduction plan in growing oilfields. The ratings also reflect Fitch's expectation that the company will be able to maintain reduced production costs and increase production in the medium and long term and continue with the operational momentum in an improving oil and gas price environment. GeoPark production size is comparable with other 'B' rated oil and gas E&P producers, constraining its ratings. These peers include Kosmos Energy Ltd (B/Stable) and Compania General de Combustibles (CGC, B/Stable), although Fitch expects production to significantly increase as oil prices recover. GeoPark is well positioned compared with its peers in terms of reserves with a healthy reserve life of close to 10 years which Fitch considers optimal and gives the company more flexibility to reduce capex investments if necessary. GeoPark's capital structure is expected to significantly improve after 2017 and be strong for the rating category. Fitch expects gross leverage to decline to approximately 2.1x in 2017 as a result of increased production and improved prices. Peers with similar gross leverage levels include CGC with expected gross leverage to be maintained around 2.0x for the next two years and Pacific Exploration and Production Corporation with an expected gross leverage of approximately 1.0x during the forecasted period. No Country Ceiling, parent/subsidiary and operating environment aspects affect GeoPark's ratings. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for this issuer include: -- Fitch's price deck per barrel of Brent oil of: USD52.5 for 2017, USD55 for 2018, USD60 for 2019 and USD65 thereafter; -- Average realized oil price of $31.8 for 2017 and $34.3 for 2018; -- 2017 production of approx. 27,500 bboepd in line with management work program indications for Brent of USD50 or above; -- Annual production increasing at a similar pace for the next four years; -- Half cycle costs between $16 and $18 with EBITDA per boe of $18-$30. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Net production rising consistently to 35,000 to 40,000 boe/d on a sustained basis; -- Reserve life is unaffected as a result of production increase at approximately 10 years; -- Company's ability to maintain a conservative financial profile with gross leverage of 2.0x or below; -- Diversification of operations and improvements in realized oil and gas differentials. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- An inability to maintain current operating costs and increase production levels; -- A persistently weak oil and gas pricing environment that impairs the longer-term value of its reserve base or a reduction in reserves due to a change in the Peruvian concession. KEY RECOVERY RATING ASSUMPTIONS -- The recovery analysis assumes that Geopark would be liquidated in bankruptcy. -- Fitch has assumed a 10% administrative claim. Liquidation Approach -- The liquidation estimate reflects Fitch's view of the value of inventory and other assets that can be realized in a reorganization and distributed to creditors. -- The 50% advance rate is typical of inventory liquidations for the Oil and Gas industry. -- The $10 per barrel reflects the typical valuation of recent reorganizations in the oil & gas industry. -- The waterfall results in a 100% recovery corresponding to 'RR1' recovery for the senior secured notes ($300 million). However, Recovery Rating limited to 'B/RR4' due to the RR4 soft cap for several countries where the company operates, such as Chile and Peru. LIQUIDITY As of June 30, 2017, GeoPark had cash on hand totalling $77 million, which cover its debt maturities up to 2019. The company does not have any major maturities until the USD300 million bond comes due in 2020. During 2016, the company paid $25.5 million in interest for its $300 million bond and bank loans. FULL LIST OF RATING ACTIONS Fitch rates GeoPark as follows: -- Long-Term Foreign and Local Currency IDRs 'B'; Outlook Stable; -- Senior secured notes due 2024 rating 'B(exp)/RR4'. =========== M E X I C O =========== * MEXICO: Earthquake Death Toll Climbs to 90 -------------------------------------------- EFE News reports that the death toll from the recent magnitude-8.2 earthquake that rocked southern Mexico rose from 65 to 90 after the governor of Oaxaca said there had been 71 fatalities in his state alone. "In an assessment meeting, Gov. Alejandro Murat revealed that the fatality figure from the earthquake had climbed to 71," Oaxaca's Civil Protection Secretariat said on Twitter, according to EFE News. The federal agrarian, territorial and urban development secretary, Rosario Robles, said in an interview with Milenio Television that she had accompanied the Oaxaca governor on a tour of several municipalities in the state, the report notes. Asked whether there was a confirmed number of fatalities, she put the number at 71 in that state, the report relays. The report discloses that the the national coordinator of Civil Protection, Luis Felipe Puente, said in an interview with that same media outlet that the preliminary death tally from the earthquake was 65," of whom 15 were in Chiapas, 46 in Oaxaca and four in Tabasco." According to state and municipal sources, the municipality of Juchitan de Zaragoza, in Oaxaca state, was the hardest hit with around 60 deaths. But they warned that those figures remain preliminary, the report relays. The National Seismological Service said in its most recent report that there had been 846 aftershocks of the magnitude-8.2 earthquake, which struck just off the coast of the southeastern state of Chiapas, the report notes. President Enrique Pena Nieto said that the earthquake, which was felt by around 50 million people nationwide, was the most powerful to hit Mexico in 100 years, the report adds. ======= P E R U ======= CFG PERU: Soliciting Bids for Two of its Subsidiaries ----------------------------------------------------- Substantial strategic investment opportunities, linked to the rising global demand for food, have been announced through a special offering managed by Development Specialists, Inc. The harvest and processing of anchovies by Peruvian-based fishing businesses produce superior quality fishmeal and fish oil that meet the worldwide market demand for high-protein animal feed. These products of Peru, carefully monitored through a rigorous quality-control process, are marketed to feed farm-raised animals and fish, all of which sustain and assure strong and lucrative food chains in several of the world's most populous regions. CFG Peru Investments Pte. Ltd. (Singapore) is soliciting bids for two of its subsidiaries, CFG Investment SAC and Corporacion Pesquera Inca SAC. They hold a combined 16.9 percent quota in Peru's North/Central fishing zone and 14.8 percent share in the South fishing zone, giving them a larger share of anchovy fishing rights in Peru's waters than any competitor. DSI is directing the sale of CFG Investment and Copeinca, both of which have intact management teams and fully operate during the two fishing seasons per year. They own and operate a 50-vessel fishing fleet and 10 processing plants throughout Peru. Qualified bids are due Dec. 8 and an auction will be held Dec. 13. For more information, contact Senior Managing Director Joseph J. Luzinski at jluzinski@dis.biz. "These companies offer a rare opportunity to invest in a commodity that's seeing a worldwide increase in both demand and prices," said William A. Brandt Jr., trustee for CFG Peru Investments and Executive Chairman of DSI, who is based in DSI's New York office. "These companies have the most significant market position in Peru and possess strong operating profit margins." As the trustee of CFG Peru Investments Pte. Ltd. (Singapore), Brandt has guided the companies through a portion of their post- bankruptcy-filing operations as a part of a larger, complex bankruptcy case involving multiple jurisdictions in multiple countries. Today, CFG Peru Investments Pte. Ltd. (Singapore) owns the two large fishing companies referenced above, as well as other entities in Peru, all of which are affiliated with the China Fishery Group, a larger multinational concern which filed for U.S. Bankruptcy Court protection in mid-2016 in New York. ====================== P U E R T O R I C O ====================== MINI MASTER: Allowed Unsecured Claims Amount Increased to $1.1MM ---------------------------------------------------------------- Mini Master Concrete Services, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico a second amended disclosure statement to accompany its plan of reorganization. Class 2 under the latest plan is the allowed claims of Wells Fargo. As agreed by and between WF and Debtor, WF's shall be paid $575,000 from the proceeds of the sale of substantially all of Debtor's assets, in full payment and release of all of its claims, on or before the Effective Date. The previous plan proposed to pay WF $695,895. Class 4, the holders of allowed general unsecured claims, now has an estimated amount of $1,114,383.72 in allowed claims. The estimated amount of allowed claims in the previous plan is $932,374.48. The treatment of this class remains the same as with the previous plan. With the sale of substantially all of its assets to Master Concrete and Aggregates, LLC, the sale of other assets, as approved by the Court and the transfer of the real estate, Debtor will be able to satisfy the claims of Holders of Allowed Administrative Expense Claims, Holders of Allowed Priority Tax Claims, Holders of Other Priority Claims and to Classes 1, 2, 3, 4 and 5, as provided for in the Plan. The Troubled Company Reporter previously reported that the Plan contemplates that substantially all of Debtor's assets securing the claims will be sold, excepting the real properties of both Debtor and those of the estate of Victor Maldonado Davila to be transferred to Economic Development Bank of P.R.. With the proceeds of the sale to Master Group P.R. Holdings, LLC and the other sales, the Debtor will be able to make the payments to Holders of Allowed Administrative Expense Claims, Holders of Allowed Priority Tax Claims, Holders of Other Priority Tax Claims and to Classes 1, 2, 3, and 4. A full-text copy of the Second Amended Disclosure Statement is available at: http://bankrupt.com/misc/prb16-09956-11-175.pdf About Mini Master Concrete Services Mini Master Concrete Services, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-09956) on December 22, 2016. The Hon. Mildred Caban Flores over the case. Charles A. Cuprill, PCS Law Offices represents the Debtor as counsel. The Debtor disclosed total assets of $15.78 million and total liabilities of $5.46 million. The petition was signed by Carmen M. Betancourt, president. PUERTO RICO: Peerless Oil Takes Ferrovial Agroman's Place in Panel ------------------------------------------------------------------ Guy Gebhardt, acting U.S. trustee for Region 21, on Aug. 31 appointed Peerless Oil & Chemicals, Inc., a creditor of both the Puerto Rico Highways and Transportation Authority and the Puerto Rico Electric Power Authority, as a new member of the official committee of unsecured creditors in the Chapter 9 cases of the Commonwealth of Puerto Rico and three other debtors. Ferrovial Agroman has resigned from the Committee. As reported by the Troubled Company Reporter on Aug. 30, 2017, the Acting U.S. Trustee on Aug. 25 appointed Ferrovial Agroman and Vitrol, Inc., as new members of the Committee. The members of the Committee now include: (1) The American Federation of Teachers (AFT) Attn: Mark Richard, Counsel to the President of the AFT 555 New Jersey Avenue, 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 Avenue 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 Ramon Ortiz Carro Urb Sabanera 40 Camino de la Cascada Cidra, Puerto Rico 00739 (8) Vitol, Inc. 2925 Richmond Avenue Houston, Texas 77098 (9) Peerless Oil & Chemicals 671 Road 337 Penuelas PR 00624-7513 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. SAN MIGUEL INDUSTRIAS: Fitch Rates $300MM Sr. Unsec. Notes BB+ -------------------------------------------------------------- Fitch Ratings has assigned a 'BB+ (EXP)' rating to the proposed USD300 million senior unsecured notes to be issued by San Miguel Industrias PET S.A (SMI). The notes will be fully and unconditionally guaranteed by its main subsidiaries in Ecuador, Colombia, Guatemala and El Salvador. Proceeds from the unsecured proposed notes will be used to refinance existing debt. Fitch upgraded SMI in June 2017. The upgrade reflected SMI's improved business profile due to the successful renewal of its long-term contracts with several key customers and its expansion outside of Peru. Fitch expects to see rapid deleveraging over the next 18 months, based mainly on the execution of existing and new contracts (notably with Aje, Arca, and Plastiglas) and organic growth. In addition, Fitch does not expect any large debt-funded M&A over the next two years. KEY RATING DRIVERS Leading Position in Peru: SMI is a leading Peruvian rigid plastic company with injection, blowing and cap-molding operations in Peru, Colombia, Ecuador, El Salvador, Panama, Guatemala and Mexico. It also has recycling operations in Peru and Colombia and thermoforming business units, in line with the company's product diversification strategies. The company has significantly increased its scale and product diversification over the last three years. Geographical Diversification: SMI has lowered diversified its risk exposure by expanding its operations in Colombia, Ecuador and Central America during the last two years; 58% of the group's volumes were generated outside Peru as of March 2017. This geographical and product diversification enable SMI to bid for international contracts and be more competitive. Fitch does not expect SMI to enter new markets in the coming years as the company is focused on executing its new contracts and recent acquisitions. Contracted-Sales: About 95% of SMI's sales are based on long-term contract agreements which have been renewed beneficially. The average maturity of the company's contracts is now about eight years, which ensures good predictability of cash flow. Deleveraging Expected: SMI's deleveraging process has been slowed due to higher capex. Fitch expects a reduction of net leverage toward 3.0x by 2018 from 4.8x at fiscal year-end (FYE) 2016 (including only six months of Plastiglas) due to increased EBITDA as a result of acquisitions made in 2016 and lower capex, notably in 2018. Fitch understands that the group's medium-term leverage policy is to operate under a gross leverage ratio below the incurrence-debt covenant, which is at 3.5x. Steady Operating Margin: Fitch expects EBITDA to grow significantly over the next 18 months due to increased volumes from long-term contracts recently signed with its main clients. Fitch projects SMI to maintain its EBITDA margin at about 20% because of its product mix and operating model, which is based on highly contracted revenues, and its pass-through model that gives margin protection against price volatility in resin (about 75% of total costs) and the natural hedges against currency fluctuation, as equipment and client contracts are in U.S. dollars. DERIVATION SUMMARY SMI benefits from steady and high EBITDA margins compared with its industry. The company is a pure player in PET business and therefore its business model differentiates from Amcor Limited ('BBB+') or Ball Corporation ('BB+').SMI also produces caps and high density polyethylene bottles. Fitch expects a rapid deleveraging over the next 18 months due to recent acquisitions and renewals of contracts, which position the company comfortably in the 'BB' rating category for an industrial company. KEY ASSUMPTIONS Fitch's key assumptions within Fitch ratings case for the issuer include: -- Double digit revenues growth; -- EBITDA margin of about 19%-20%; -- Capex of about USD70 million in 2017; -- No dividend payment in 2017-2018. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action A positive rating action could result from a sustained strengthening of the company's net leverage to below 2.5x on a prolonged basis, strong FCF, and improved client diversification while sustaining an EBITDA margin above 20%. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action Negative Rating Action: A negative rating action could be triggered by net debt leverage above 4.0x or the nonrenewal of a large supply contract. LIQUIDITY The company had cash and cash equivalents of about USD17 million, short-term debt of USD64million and total debt of USD317 million as of June 2017. The short-term debt is mainly related to working capital and promissory notes. The USD200 million senior unsecured notes mature in 2020. SMI is a private company fully owned by Nexus Group SA. Positive support from the shareholder is factored into SMI's Issuer Default Rating (IDR). FULL LIST OF RATING ACTIONS Fitch has assigned the following expected rating: San Miguel Industrias PET SA -- Unsecured guaranteed notes 'BB+ (EXP). ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Close Eye on Irma's Potential Damage --------------------------------------------------------- Verne Burnett at Trinidad and Tobago Newsday report that Trinidad and Tobago Chief Executive Officer of the Caribbean Catastrophe Risk Insurance Facility (CCRIF), Isaac Anthony, said the facility was looking closely at the damage that Tropical Storm Irma could do to the facility's member countries in the Caribbean and Wider Caribbean. He was speaking at the signing of a Memorandum of Understanding with the Association of Caribbean States (ACS) at the ACS Secretariat, Sweet Briar Road, St, according to Trinidad and Tobago Newsday. The report notes that Mr. Clair, during the formal opening of the 25th meeting of the ACS' Special Committee for Disaster Risk Reduction, said, over the years the facility has entered into MOUs with eight organisations, including the Caribbean Disaster Emergency Management Agency; the Organisation of Eastern Caribbean States; The University of the West Indies (The UWI); the United Nations Economic Commission for Latin America and the Caribbean and the UWI Seismic Research Centre, the report relays. Signing for the ACS was its secretary general Dr. June Soomer who welcomed the initiative, saying the ACS works closely with all its partners, the report notes. Anthony said the facility was established in 2007 and seven years later it was restructured to facilitate its expansion into new products and geographic areas, the report discloses. He said it is the world's first regional fund using parametric insurance, a type of insurance in which payout is triggered when specific conditions, or parameters, are met, the report says. Because the parameters are already specified, experts say no loss adjusters are needed, allowing for speedy payments and Anthony said the CCRIF has consistently provided payments within 14 days of an event, the report notes. He said the parametric nature of the policies allows for rapid payouts against losses and keeping operational expenses to a minimum, the report relays. He said that since 2007, CCRIF has made 22 payouts to ten member governments totaling U.S. $70 million, the report notes. The report says that after the passage of hurricane Matthew last year, he said CCRIF paid U.S. $29.2 million to four member countries affected by that hurricane: Haiti; Barbados; St. Lucia and St. Vincent and the Grenadines; and all the payments were made within 14 days. He said the majority of the payment -- US$23.4 million -- went to Haiti under its Tropical Cyclone policy which covered wind and storm surge and its excess rainfall policy, the report notes. He said immediate access to liquidity is critical for governments after a disaster and while the international community provides relief, those funds are often slow to be released taking as much as six to 12 months, the report relays. Government borrowing and reallocation of funds in their budgets also takes time and smaller governments such as those in the Caribbean and most of the Small Island Developing States, with their high debt burdens, can no longer afford to self-finance disaster risk, the report adds. ================= V E N E Z U E L A ================= RASSINI AUTOMOTRIZ: Fitch Affirms BB- IDR; Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed Rassini Automotriz, S.A. de C.V.'s (RA) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) at 'BB-'. The Rating Outlook is Stable. The ratings reflect RA's business position as a Tier-1 supplier of suspension and brake components, its geographic diversification, efficient operations, low cost structure and improved financial profile. The company's ratings are limited by the cyclicality of the automotive industry as well as RA's regional and customer concentration in North America, small scale and credit track record. KEY RATING DRIVERS Strong Business Position: RA, a subsidiary of Rassini, S.A.B. de C.V. (Rassini), manufactures suspension and brake components for light and heavy vehicles, with leading positions in North America and Brazil. The company's main product line, leaf springs, which accounted for 58% of total sales as of the latest 12 months (LTM) ended June 2017, has historically had a dominant market position in North America. Product Diversification: Rassini was awarded new contracts in 2014-2016, totalling about USD1.6 billion for the 2017-2021 period. Of these agreements, approximately 44% were related to Rassini's brakes division, which has had the fastest revenue growth. This division accounted for 31% of revenues as of the LTM ended June 2017, compared with 31% as of the second quarter 2016. The company also gained incremental business in coil springs. Customer and Regional Concentration: Rassini is considered an essential supplier to several original equipment manufacturers (OEMs), including General Motors Co., Fiat Chrysler Automobiles N.V. and Ford Motor Co. Detroit's Big Three OEMs represented 75% of Rassini's total revenues during 2016; North America accounted for 91% and 98% of Rassini's total revenues and EBITDA, respectively. Both regional and customer concentration have increased in recent years due to organic growth in North America as well as depressed vehicle demand in Brazil. Low Leverage: Rassini's total adjusted debt/EBITDAR for the LTM ended June 30, 2017 was 1.2x which is slightly lower than the 1.3x registered as of second-quarter 2016. The company is evaluating multiple options to continue to grow, including organic investments or potential acquisitions. Rassini's ratings consider that the company's long-term capital structure will remain within management's target of staying below 2x total debt/EBITDA. Sound FFO Generation Expected: The company generated funds from operations (FFO) of US130 million as of the LTM ended June 30, 2017, which positively compares with USD97 million during 2015. Strong FFO has resulted from increasing penetration in brakes, a shift in consumer preference for pickup trucks, and a strong dollar relative to the Mexican peso. Rassini's FFO is not expected to strengthen materially in the near term due to slowing north American vehicle production growth. DERIVATION SUMMARY Rassini's EBITDA is about a third of American Axle's (BB-/Stable) and similar to smaller companies such as Tupy (BB/Stable). Rassini's concentration to North America at around 90% of revenue compares unfavourably to peers. Although Tupy and American Axle have concentrations to the North American Market above 60% and some exposure to South America, both have diversified their revenue sources to Europe or Asia. Rassini's exposure to Detroit Three OEMs is high at around 75% and compares unfavourably to Tupy's more diversified customer portafolio and is somewhat similar to American Axel's heavy concentration in one single OEM. Positively Rassini's adjusted net leverage is at least 1x lower than both peers and strong for the rating category. The company's liquidity position relative to upcoming debt maturities, is primarily supported by expectations of continued cash flow generation and low leverage. Larger peers such as American Axle or Nemak (BB+/Positive) enjoy greater financial market and banking access, and typically hold committed credit facilities or large cash balances relative to short term obligations. KEY ASSUMPTIONS Fitch's key assumptions within the rating case include: -- Consolidated volumes remain relatively flat over the intermediate term. -- Rassini's EBITDA remains above USD160 million over the intermediate term. -- Total adjusted debt/EBITDAR stays at or below 2x over the intermediate term. -- Rassini remains FCF positive over the intermediate term. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Some combination of larger scale, increased customer or geographic diversification, and expectations of sustained leverage levels at or below 1x in conjunction with a strong liquidity profile could result in positive rating actions. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- A combination of lower volumes and profitability as a result of material deterioration in North American light vehicle demand. -- Sustained leverage above management's target of 2x. -- Weak operating cash flow and deteriorating liquidity could also result in negative rating actions. LIQUIDITY Rassini's sustainable liquidity is adequate and primarily supported by solid cash flow generation and low debt levels, which should allow the company to continue to manage upcoming debt maturities. The company's financial debt was USD144 million as of the second-quarter 2017. The majority of this debt matures over the next two years and compares to estimated readily available cash of USD109 million. The company also uses receivable factoring facilities on average in an amount of USD40 million-USD50 million. Fitch treats these facilities as debt for its ratio calculations as immediate replacement funding is required if the receivables financing shuts down or eligible receivables decline in quality and the facility ceases to fund ongoing receivables. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: -- Foreign Currency Long-Term Issuer Default Rating (IDR) at 'BB- '; -- Local Currency Long-Term IDR at 'BB-'. The Rating Outlook is Stable. VENEZUELA: Opposition Participation Exceeds Expectations -------------------------------------------------------- EFE News reports that Venezuelan lawmaker Henry Ramos Allup said that participation in the primaries being held by the opposition MUD alliance to select single candidates for the gubernatorial elections next month is "above expectations." "The election commission will have to send more material immediately, more ballots because in some locations the . . . ballots have run out, meaning that participation is . . . above expectations," said Ramos Allup at a press conference where he provided an assessment of the opposition coalition's primaries midway through election day, according to EFE News. As reported in the Troubled Company Reporter-Latin America on Sept. 1, 2017, Fitch Ratings has taken the following rating actions on Venezuela's sovereign ratings: -- Long-term foreign and local currency IDRs downgraded to 'CC' from 'CCC'; -- Senior unsecured debt downgraded to 'CC' from 'CCC'; -- Short-term foreign and local currency IDRs affirmed at 'C'; -- Country ceiling downgraded to 'CC' from 'CCC'. VENEZUELA: Seeks Support from the Islamic World Amid Spat With US ----------------------------------------------------------------- EFE News reports that the president of Venezuela, during his participation at an Organization of Islamic Cooperation (OIC) summit in Astana, sought to rally the Islamic world's support for his country in its confrontation with the United States. "The Venezuelan people, especially in the last six months, have witnessed invasions and interventions by the United States, but we will resist those pressures by maintaining our unity," Nicolas Maduro said during a meeting with Iranian President Hassan Rouhani, according to EFE News. As reported in the Troubled Company Reporter-Latin America on Sept. 1, 2017, Fitch Ratings has taken the following rating actions on Venezuela's sovereign ratings: -- Long-term foreign and local currency IDRs downgraded to 'CC' from 'CCC'; -- Senior unsecured debt downgraded to 'CC' from 'CCC'; -- Short-term foreign and local currency IDRs affirmed at 'C'; -- Country ceiling downgraded to 'CC' from 'CCC'. =============== X X X X X X X X =============== LATAM: Irma Leaves Battered Caribbean in Its Wake ------------------------------------------------- Dudley Althaus at The Wall Street Journal reports that Hurricane Irma left widespread human and economic havoc in a string of tourism dependent Caribbean islands as the storm pulsed into Florida. Irma departed the last of those islands, Cuba, after scraping along its northern coast, according to The Wall Street Journal. Buildings collapsed, trees and power lines fell and roofs flew away in the 130-mile-an-hour winds, the report notes. Rain and seawater flooded towns and cities, including the colonial center of Havana, the country's capital and a tourist magnet, the report relays. Communications were cut off, power was down and infrastructure was damaged in some parts of the island. The WSJ discloses that no deaths have yet been reported in Cuba, as authorities evacuated thousands of residents and tourists ahead of Irma's arrival. But the hurricane killed at least 22 others across the northern Caribbean in four days of torment, the report relays. The report notes that the storm's damage comes just a few months before the beginning of the winter tourism season, which last year pumped $56 billion into the regional economy and provided 725,000 jobs, according to the World Travel and Tourism Council, an international industry group, the report says. But Irma affected only a portion of the Caribbean, the report discloses. And while severe on some islands, the storm's destruction was negligible in others, according to an early assessment by the Caribbean Tourism Organization. Damage so far appears to have been heaviest on St. Martin and nearby islands in the U.S. and British Virgin Islands, the report discloses. U.S. President Donald Trump increased federal funding for debris removal and emergency protective measures for the U.S. Virgin Islands, the report says. The storm's impact still hasn't been fully assessed in Cuba. Puerto Rico and the Dominican Republic seem to largely have been spared, the report relays. "For the countries that are badly affected, it will take some time to get back on their feet," Hugh Riley, an official with the Caribbean Tourism Organization, said. The affected islands caught a break when Hurricane Jose, a Category 4 storm that had been on track to follow Irma's path, turned to the north without making a Caribbean landfall, notes the report. Irma began its rampage far to the east of Cuba on Wednesday, Sept. 6, tearing into the small two-island nation of Antigua and Barbuda in the northern Leeward Islands, the report relays. Antigua, the larger of the two, was mostly spared by the storm. Barbuda, famed for its pink sand beaches and several luxury resorts, suffered widespread damage and the death of a toddler, the report relays. More than 90% of island's buildings suffered extensive damage, officials say, the report adds. Philmore Mullin, director of the tiny country's emergency-response agency, told reporters that poor building practices were the main cause for much of the damage, the report relates. He said a primary lesson from the devastation is that the island needs "strict enforcement of the building codes," the report relays. The storm's destruction was even worse on the islands to the west of Barbuda, where at least 11 people were killed on St. Martin, a small island jointly controlled by France and the Netherlands, the report discloses. Many of its hotels were badly damaged and widespread looting was reported. "The situation on the ground is dire. It actually looks like a war zone after a bombing raid," the reported quoted Alex Woolfall, who was visiting St. Martin from London when the storm hit, as saying. "Everything is flattened and scorched. And the locals have nothing." "Hope to God Floridians take the warnings seriously," Mr. Woolfall said by email after he was airlifted by the U.S. military to Puerto Rico, the report adds. "This is no average hurricane. It will destroy everything." The U.S. National Guard evacuated by aircraft some 500 of the more than 5,000 American citizens who were on St. Martin when the storm struck, the report notes. St. Martin authorities declared a state of emergency, calling on residents to remain indoors, according to the Dutch newswire ANP, the report relays. The state of emergency makes it easier for security forces to more easily arrest suspected looters. Authorities said that people with medical conditions are being evacuated to Aruba and Curacao, notes the report. Another storm, Hurricane Katia, hit Mexico's Gulf Coast, the report notes. Two people died in mudslides in the city of Xalapa in Veracruz state after it was battered by high winds and heavy rains, the report says. The storm weakened quickly after it hit and is now a tropical depression dropping rain on Mexico's coast and central highlands, the report relays. In the Caribbean, both St. Thomas and St. John, in the U.S. Virgin Islands, were badly hit by Irma and remained under curfew overnight, WSJ notes. At least four people were killed on the islands and many of its tourist hotels were badly damaged, the report discloses. After skirting north of both Puerto Rico and the island of Hispaniola, shared by the Dominican Republic and Haiti, Irma closed in on the central Cuban coast, making landfall near idyllic barrier islands where all-inclusive hotels serve foreign tourists, the report discloses. Some 5,000 tourists were evacuated from the hotels as the storm approached, Cuban officials said, the report relays. Accoridng to WSJ, waves as high as 27 feet flooded seaside communities across the northern coast, including in the historic colonial section of Havana, the capital. Waves breached the Malecon, the Cuban capital's famed sea wall, flooding the streets of the colonial downtown. Havana's downtown has become a major tourist draw in recent years, but decades of neglect have left many its buildings prone to collapse after even normal seasonal rains, the report relates. Central Havana's streets remained flooded and wind gusts of up to 60 miles an hour were sweeping the Cuban capital, as rescue crews in thigh-deep water evacuated people from city streets. Granma, the official newspaper of Cuba's ruling Communist Party, reported extensive damage from coastal communities at the center of the island, in some cases with 90% of the homes destroyed, the report says. Photographs posted on the newspaper's website show Havana streets shallowly flooded and more severe damage elsewhere-buildings collapsed in Matanzas, the province home to the modern resort of Varadero, and in Camaguey and other provinces further east, according to WSJ. Floodwaters reached the tin roofs of wooden shanties in one community, the report adds. Still, Cubans pride themselves on being prepared for disasters, the report relates. And some Havana residents said they took Irma in stride, taking precautions but then settling in Saturday night to ride out the worst of its wrath, the report relays. "We Cubans aren't afraid of these storms, we're used to them," said Sara Artiles, who runs a bed-and-breakfast in Vedado, an upscale district of Havana, the report notes. Ms. Artiles said she spent the night sharing cocktails with her business's five guests, the report notes. Many of her friends spent the storm in the same fashion, she added. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2017. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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 * * *