/raid1/www/Hosts/bankrupt/TCRLA_Public/171220.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, December 20, 2017, Vol. 18, No. 252
Headlines
A R G E N T I N A
ARGENTINA: Congress Tries for Pension Reform Amid Violent Protests
B E R M U D A
SAGICOR FINANCIAL: S&P Assigns 'BB-' ICR, Outlook Stable
SEADRILL LTD: Unsecured Creditors to Examine John Fredriksen
B R A Z I L
BANCO ORIGINAL: Fitch Keeps B Short Term IDR on Rating Watch Neg.
ELETROBRAS-CENTRAIS ELETRICAS: S&P Affirms BB Global Scale CCR
OI SA: $19 Billion Debt Finale is So Big It's at a Concert Venue
H O N D U R A S
HONDURAS: Dawns With Roadblocks Halting Traffic in Largest Cities
P U E R T O R I C O
BAILEY'S EXPRESS: Hires Capital Recovery Group as Auctioneer
CHARLOTTE RUSSE: S&P Cuts CCR to 'CC' on Announced Exchange Offer
CHARLOTTE RUSSE: Moody's Lowers CFR to Ca After Debt Restructuring
DDR CORP: Moody's Cuts Pref. Stock Rating to Ba1 on Spinoff
MAGUMO CORP: Court Conditionally Approves Disclosure Statement
TOYS "R" US: Wants Exclusive Plan Filing Deadline Moved to July 15
TOYS "R" US: Initiates CVA Process in United Kingdom
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A R G E N T I N A
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ARGENTINA: Congress Tries for Pension Reform Amid Violent Protests
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Voa News reports that Argentina's Congress could pass a hotly
debated pension reform measure, lawmakers told reporters, as
stone-throwing demonstrators gathered in the capital and the
country's main union called a 24-hour general strike to protest
the proposal.
Debate on the bill was suspended amid violent protests, which were
put down by police firing rubber bullets and tear gas, according
to Voa News. The government amended the proposal to include a
bonus payment to the most needy retirees, the report relays.
But that did not satisfy thousands of opposition demonstrators who
gathered around the congressional building again as lawmakers
debated the proposal inside, the report notes.
The protesters, some wearing balaclavas, used sling shots to fire
rocks at police, the report notes. Security forces answered by
using water cannons and tear gas, turning the vast lawn in front
of the capital complex into a battlefield, the report discloses.
"This bill will put millions of retirees at risk. It changes the
whole pension system," Laura Rivas, a 34-year-old teacher, told
Reuters, standing back from the most violent protest areas, the
report relays.
The day-long strike called by Argentina's main CGT labor group
started at noon local time (1500 GMT), the report says. It was
not expected to affect the nation's transportation system until
Dec. 19 evening, allowing workers to get home in the afternoon,
the report says.
The bill, key to President Mauricio Macri's efforts to lower
business costs and reduce Argentina's fiscal deficit, has already
passed the Senate, leaving the lower House to give final
legislative approval, the report notes. Opposition lawmakers said
the one-time bonus amendment did little to persuade them to vote
in favor, the report relays.
"It will be a one-time bonus payment made in March," opposition
lawmaker Agustin Rossi told reporters, adding that the overall
bill remained inadequate to meet pensioners' needs, the report
notes.
Macri is aiming to cut the fiscal deficit to 3.2 percent of gross
domestic product next year from 4.2 percent this year, and reduce
inflation to between 8 percent and 12 percent from more than 20
percent this year, the report says.
The report discloses that the pension bill would change the
formula used to calculate benefits. Payments would adjust every
quarter based on inflation, rather than the current system of
twice-yearly adjustments linked to wage hikes and tax revenue, the
report relays.
Economists said the current formula means benefits go up in line
with past inflation, the report notes. Left unchanged, that could
harm Macri's efforts to cut the deficit, the report relays.
Under the new formula, benefits would increase by 5 percentage
points above inflation, according to cabinet chief Marcos Pena,
the report discloses. The plan would take effect at a time of
lower inflation expectations and would slow the pace of pension
benefit increases, the report adds.
* * *
As reported in the Troubled Company Reporter-Latin America on
December 4, 2017, Moody's Investors Service has upgraded the
Government of Argentina's local and foreign currency issuer and
senior unsecured ratings to B2 from B3. The senior unsecured
shelves were upgraded to (P)B2 from (P)B3. The outlook on the
ratings is stable. At the same time Argentina's short-term rating
was affirmed at Not Prime (NP). The senior unsecured ratings for
unrestructured debt were affirmed at Ca and the unrestructured
senior unsecured shelf affirmed at (P)Ca .
Moody's said the key drivers of the upgrade of the rating to B2
are: (1) a record of macro-economic reforms that are beginning to
address long existing distortions in Argentina's economy; and (2)
the likelihood that reforms will continue and in turn sustain
the recent return to positive economic growth.
The stable outlook on Argentina's B2 ratings balances Argentina's
credit strengths of its large, diverse economy and moderate income
levels against the credit challenges posed by still high fiscal
deficits and a reliance on external financing, which increases its
vulnerability to external event risk, said Moody's.
On Nov. 10, 2017, Fitch Ratings revised Argentina's Outlook to
Positive from Stable and has affirmed its Long Term Foreign-
Currency Issuer Default Rating (IDR) at 'B'.
On Oct. 30, 2017, S&P Global Ratings raised its long-term
sovereign credit ratings on the Republic of Argentina to 'B+' from
'B'. The outlook on the long-term ratings is stable. S&P also
affirmed its short-term sovereign credit ratings on Argentina at
'B'. At the same time, S&P raised its national scale ratings to
'raAA' from 'raA+'. In addition, S&P raised its transfer and
convertibility assessment to 'BB-' from 'B+', in line with its
assessment of sustained local access to foreign exchange.
As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-day grace
period on a US$539 million interest payment. Earlier that day,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago. On March 30, 2016, Argentina's Congress
passed a bill that will allow the government to repay holders of
debt that the South American country defaulted on in 2001,
including a group of litigating hedge funds that won judgments
in a New York court. The bill passed by a vote of 54-16.
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B E R M U D A
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SAGICOR FINANCIAL: S&P Assigns 'BB-' ICR, Outlook Stable
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S&P Global Ratings assigned its 'BB-' issuer credit ratings to
Bermuda-based Sagicor Financial Corporation Limited (SFCL) and to
its Cayman-based financing vehicle Sagicor Finance (2015) Limited
(SF15). S&P also affirmed its 'BB-' issue-level rating on SF15's
$320 million seven-year senior unsecured notes due 2022. The
outlook on SFCL and SF15 is stable.
S&P said, "Our ratings on Sagicor Financial Corporation Limited
(SFCL) and Sagicor Finance (2015) Limited (SF15) are two notches
below Sagicor's insurance operations' GCP, as a result of the
group's operating subsidiaries' structural subordination to
policyholder obligations. The issue-level rating on SF15's $320
million senior unsecured notes due in 2022 is the same as that on
its issuing entity SF15, considering the seniority of the notes.
SFCL is a non-operating holding company based in Bermuda and it is
the ultimate parent at the top of Sagicor group's structure. SF15
is a non-operating holding company based in The Cayman Islands;
its sole purpose is to provide financing to the group.
"The stable outlook reflects our view of Sagicor's solid earnings
generation and stable capitalization levels, which should support
the company's GCP for the next 12 months. It also takes into
account our assumption that NOHCs' standard two-notch
subordination will remain in place for the time being."
SEADRILL LTD: Unsecured Creditors to Examine John Fredriksen
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Mikael Holter at Bloomberg News reports that the official
committee representing Seadrill Ltd.'s unsecured creditors called
in the offshore driller's Chairman John Fredriksen for an
"examination," where the billionaire will be asked questioned
about his involvement in the company's operations and
restructuring efforts.
In a court document filed on Dec. 13, the Official Committee of
Unsecured Creditors notified Mr. Fredriksen that it "intends to
conduct an examination" of him on Jan. 25 in Houston, Bloomberg
relates. The committee's lawyers, as cited by Bloomberg, said in
the notice the examination may go on for several days, and be
videotaped.
The committee is asking Mr. Fredriksen to provide, by Dec. 27,
all communications with advisers, fellow investors, banks and
others on the restructuring plan in which he committed to take
the lead in injecting more than US$1 billion into the indebted
offshore driller, Bloomberg discloses.
The committee also lists 21 topics on which they intend to
question the Norwegian-born billionaire, from the restructuring
agreement to his relationship with various companies and
transactions conducted by Seadrill going back as far as 2013,
Bloomberg states.
About Seadrill Limited
Seadrill Limited is a deepwater drilling contractor, providing
drilling services to the oil and gas industry. It is incorporated
in Bermuda and managed from London. Seadrill and its affiliates
own or lease 51 drilling rigs, which represents more than 6% of
the world fleet.
As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled
individuals across 22 countries and five continents to operate
their drilling rigs and perform various other corporate
functions.
As of June 30, 2017, Seadrill had $20.71 billion in total assets,
$10.77 billion in total liabilities and $9.94 billion in total
equity.
Seadrill reported a net loss of US$155 million on US$3.17 billion
of total operating revenues for the year ended Dec. 31, 2016,
following a net loss of US$635 million on US$4.33 billion of
total operating revenues for the year ended in 2015.
After reaching terms of a reorganization plan that would
restructure $8 billion of funded debt, Seadrill Limited and 85
affiliated debtors each filed a voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead
Case No. 17-60079) on Sept. 12, 2017.
Together with the chapter 11 proceedings, Seadrill, North
Atlantic Drilling Limited ("NADL") and Sevan Drilling Limited
("Sevan") commence liquidation proceedings in Bermuda to appoint
joint provisional liquidators and facilitate recognition and
implementation of the transactions contemplated by the RSA and
Investment Agreement. Simon Edel, Alan Bloom and Roy Bailey of
Ernst & Young serve as the joint and several provisional
liquidators.
In the Chapter 11 cases, the Company has engaged Kirkland & Ellis
LLP as legal counsel, HoulihanLokey, Inc. as financial advisor,
and Alvarez & Marsal as restructuring advisor. Willkie Farr &
Gallagher LLP, serves as special counsel to the Debtors.
Slaughter and May has been engaged as corporate counsel, and
Morgan Stanley serves as co-financial advisor during the
negotiation of the restructuring agreement. Advokatfirmaet
Thommessen AS serves as Norwegian counsel. Conyers Dill &
Pearman serves as Bermuda counsel. PricewaterhouseCoopers LLP
UK, serves as the Debtors' independent auditor; and Prime Clerk
is their claims and noticing agent.
On September 22, 2017, the Office of the U.S. Trustee appointed
an official committee of unsecured creditors. The committee
hired Kramer Levin Naftalis& Frankel LLP, as counsel; Cole Schotz
P.C. as local and conflict counsel; Zuill& Co. as Bermuda
counsel; Quinn Emanuel Urquhart & Sullivan, UK LLP as English
counsel; Advokatfirmaet Selmer DA as Norwegian counsel; and
Perella Weinberg Partners LP as investment banker.
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B R A Z I L
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BANCO ORIGINAL: Fitch Keeps B Short Term IDR on Rating Watch Neg.
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Fitch Ratings maintains Banco Original S.A.'s (Original) Issuer
Default Ratings (IDRs), viability rating and national ratings on
Rating Watch Negative. Fitch has also downgraded the bank's long-
term National Rating to 'BBB(bra)' from 'BBB+(bra)'.
KEY RATING DRIVERS - VR, IDRS, NATIONAL RATINGS
The maintenance of the Negative Watch reflects lower but still
possible contagion risks from events surrounding Original's sister
company JBS S.A. (long-term local and foreign currency IDRs BB-/
Negative Watch). Uncertainty continues to stem from the ongoing
investigations, particularly since ordinary shareholder support
has been vital to maintain Original's bottom-line profitability at
adequate levels. Resolution of the Watch will also require further
confirmation that refinancing capacity has been fully restored and
that funding costs have not materially changed from historical
levels, which will likely be more evident when credit growth
resumes.
The potential for pressure on Original seems to have subsided in
recent months due to the bank's successful implementation of
contingency measures. These included loan deleverage, which
allowed Original to remain selective with its pricing for funding.
The downgrade of Original's long-term National Rating reflects the
bank's relative weakened position on the local scale. It has
experienced significant pressures on its profitability and asset-
quality since 2016, in contrast to similarly rated local peers
that have posted better performing trends. Fitch believes these
pressures have impaired Original's ability to achieve sufficient
and recurrent earnings as initially projected in its business
plan.
Original's ratings take into consideration its still weak and
below average earnings profile, which have underperformed relative
to Fitch's initial expectations. Under these conditions, ordinary
support from its owner through asset sales in 2016 and 2017 was
necessary. The support alleviated additional pressures on the
bank's business and financial profile arising from its still weak
and below peer average internal capital generation.
During 2016, operating losses amounted BRL331.4 million (or -3.6%
of its Risk Weighted Assets), due to a combination of increased
credit costs and higher expenses related to the investments in its
digital banking division. Loan impairment charges grew 109% in
2016 vs. 2015 (or 100% of its pre-impairment operating profit)
because some of its corporate clients were heavily hit by the
worsening operating environment. In 2017, operating results have
only remained close to the breakeven thanks to a one-off sale of
nonperforming credit assets to the bank's controlling shareholder
that generated around BRL335 million of revenues from reversal of
loan loss reserves.
Fitch believes Original's risk appetite has been higher than its
initially stated business goals. Since 2016, asset quality ratios
have deteriorated, as loans started to season and credit growth
was contained. Impaired loans (D-H credits) to gross loans reached
12.3% in December 2016, from its lowest historical level of 4.0%
in December 2014. It decreased to 9.4% in June 2017, due to the
aforementioned credit sales to its shareholder, but, including
these, Fitch estimates the impairment ratio would jump to 18%.
Impaired loans include not only Original's corporate clients but
also its retail exposure, which, although still emerging, has
shown weak performance so far. The reserve coverage ratio of 51%
in June 2017 is also weaker vs. 66% in 2014 but is partially
offset by the adequate level of guarantee coverage in its loan
portfolio, which mitigates final losses.
Fitch expects Original earnings to stabilize through 2018 given
the recent sale of nonperforming credits, reducing the burden of
provision expenses. Earnings generation is also contingent on
future developments regarding JBS, whose impact can be difficult
to anticipate, but could potentially have negative business and
financial consequences.
However, Fitch view's Original's liquidity as adequate, following
management's successfully implemented measures to contain any
potential liquidity pressures following the events surrounding JBS
since May 2017, which also included loan deleveraging. Original's
cash position of around BRL1 billion is enough to pay roughly 80%
of its liabilities maturing in the next 90 days. The bank's loan
portfolio is also largely short-term, which has been key to
reinforcing Original's liquidity over the past quarter. As of June
2017, 58% of the bank's total loans, or BRL2.1 billion, had a
maturity of less than 90 days, vs. 27%, or BRL1.2 billion, of its
funding that had the same maturity profile.
Capitalization remains robust. Regulatory capital at 19.1% is
fully comprised of top quality common equity tier 1 (CET1) and is
well above Basel III regulatory requirements, besides providing an
adequate cushion against potential losses.
KEY RATING DRIVERS - SUPPORT RATING AND SUPPORT RATING FLOOR
Original's SR and SRF were affirmed at '5' and 'NF', respectively,
in view of the bank's low systemic importance. In Fitch's view,
external support cannot be relied upon.
RATING SENSITIVITIES
IDRs VR AND NATIONAL RATINGS
The ratings could be removed from Rating Watch Negative and
affirmed in the following months if Fitch becomes comfortable that
refinancing risks are considerably reduced and that any
potentially negative implications arising from the investigations
on its related parties are sufficiently absorbed without material
negative implications for Original. In such a scenario, the
resulting Rating Outlook would depend on Fitch's assessment of the
medium-term prospects for the bank's business and financial
profile.
Original's ratings could be downgraded by the emergence of new
events involving its related parts that could bring additional
pressures on its business and financial profile, or if Fitch
perceives that Original fails to realize its business goals, such
that the impact over its funding franchise is greater than
anticipated. Further rating pressures could also arise if the bank
is not able to show gradual improvement on its recurring earnings,
if capitalization declines or if asset quality weakens again.
The direct involvement of the bank in the scope of the ongoing
investigations may also result in a downgrade, a scenario in which
the rating downside potential could eventually be multi-notch.
SUPPORT RATING AND SUPPORT RATING FLOOR
A potential upgrade of Original's Support Rating and Support
Rating Floor is unlikely in the foreseeable future, since this
would arise from a material gain in systemic importance.
Fitch maintains the following ratings for Original on Rating Watch
Negative:
-- Long-Term Foreign and Local Currency IDRs 'B+';
-- Short-Term Foreign and Local Currency IDRs 'B';
-- Viability Rating 'b+';
-- National Short-Term Rating 'F2(bra)'.
Fitch affirms the following ratings for Original:
-- Support Rating at '5';
-- Support Rating Floor at 'NF'.
Fitch has also downgraded to 'BBB (bra)' from 'BBB+(bra)' and
maintained on Rating Watch Negative Original's National Long-Term
Rating.
ELETROBRAS-CENTRAIS ELETRICAS: S&P Affirms BB Global Scale CCR
--------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' global scale ratings on
Eletrobras-Centrais Eletricas Brasileiras (Eletrobras) including
the corporate credit and senior unsecured note ratings. S&P said,
"We also affirmed our 'brA-1+' short-term national scale rating on
the company. We're maintaining our SACP at 'b+', while the outlook
remains negative."
The ratings on Eletrobras continue to reflect its close
relationship with its controlling shareholder, the Federative
Republic of Brazil (BB/Negative/B), and the latter's incentives,
capacity, and tools to support the company. S&P said,
"Nevertheless, we believe that this commitment can weaken in the
future, following government's plans to privatize Eletrobras, in
what could be a rather complex and lengthy process, considering
the political implications and the required legal and regulatory
approvals."
According to information released so far, the government's current
direct and indirect 75.4% controlling stake in Eletrobras would be
reduced to below 50% through a public shares offering (primary and
secondary, if necessary). Eletrobras would become a corporation,
with no other shareholder having more than a 10% stake. The
company would use the proceeds from the shares offering for the
following:
-- To pay a grant fee in order to direct a portion of its
generation capacity for sales in the market (that currently is
remunerated for operations and maintenance works);
-- Transfers to specific public sectorial funds; and
-- For works in the Sao Francisco basin area.
The government intends to retain specific rights, through a golden
share, including the right to appoint the chairman of the
company's board.
Until the privatization process starts to materialize, we still
view the likelihood that the government would provide timely and
sufficient extraordinary support to Eletrobras in the event of
distress as almost certain. We base this assumption on the
following factors:
-- Eletrobras' critical role as the government's vehicle to
develop domestic electricity sector. It also functions as the
government's agent for several key social programs, and
manages and controls electricity assets across the country.
Eletrobras accounts for 31% of Brazil's electricity-generating
capacity and operates 47% of its transmission lines above 230
kilo volts. It acts as the central government's agent to
support and implement microeconomic strategies related to the
electricity sector.
-- The company's integral link to the government, reflecting the
sovereign's majority equity stake in Eletrobras, and a track-
record of support to it. This is seen in past capital
injections, the lines of credit that the company has received
from state-owned banks, and in government guarantees on a
portion of its debt.
Eletrobras' business profile is the ratings' strongest component,
in our view, reflecting its dominant position because it's the
largest generation and transmission player in the country.
Eletrobras took the decision to not renew the concession contracts
of its six distribution companies, but will continue operating
them until they are privatized. Given that these companies operate
at losses, S&P views positively that Eletrobras will concentrate
its efforts in the generation and transmission segments.
Since the new administration took office in May 2016, several
measures were taken to improve Eletrobras' internal controls,
oversight of subsidiaries, relationship with suppliers, and
governance. These include the creation of a compliance department,
a more independent board of directors, and a more realistic
business plan (focused on governance, financial discipline, and
operational excellence). S&P said, "In our view, these factors
should help prevent Eletrobras' past inability to identify and
effectively control critical risks, as seen in the corruption
investigations and delays in releasing financial statements (20-F
filling). As a result, we changed our management and governance
score on the company to fair from weak."
Eletrobras is currently working on to reduce costs, having
launched a voluntary retirement program and a shared services
center, which the company expects will result in about R$1.5
billion in savings per year. Capital expenditures (capex) cuts
also contributed to strengthening the company's cash position and
liquidity. S&P said, "These factors improve credit metrics
prospects for Eletrobras, but we believe a consistent and material
deleveraging will depend on completing its asset-sales program. We
view positively the management's focus not only on operating
performance and deleveraging, but also on internal controls and
compliance standards."
OI SA: $19 Billion Debt Finale is So Big It's at a Concert Venue
----------------------------------------------------------------
Fabiola Moura at Bloomberg News reports that it's only fitting
that Oi SA, after filing for the biggest bankruptcy protection in
Brazil's history, is bringing its bitter 18-month restructuring
battle to a crescendo with an epic creditors' meeting at a rock
concert venue.
The venue for the gathering of about 4,000 people is RioCentro,
the Rio de Janeiro events and convention center near where Rock in
Rio was held last September, according to Bloomberg News. Oi SA's
trustee originally asked for the meeting to be held in October so
it wouldn't overlap with the music festival, which would've
created an incongruous traffic jam of creditors, lawyers and about
7,000 concertgoers, the report notes.
Oi SA booked an entire pavilion at RioCentro -- 22,000 square
meters (240,000 square feet) of space used in last year's Olympics
for the boxing matches -- and has gotten the venue set up for the
meeting at least three times since then, only to be postponed by
court orders, Bloomberg News notes. Two hundred registration and
voting booths, a stage, thousands of chairs, 1,000 workers, a
medical center and an ambulance will be at the ready -- all to
ensure a smooth vote on Oi's ambitious plan to climb out of its
pile of about $19 billion in debt, Bloomberg News relays.
Small Settlements
The Brazilian phone carrier has already settled with more than
30,000 of its 55,000 creditors, Bloomberg News says. Those
settlements involved claims of as much of BRL50,000 ($15,000),
Bloomberg News relays. To accomplish this feat, the company built
a website and held a marketing campaign to instruct debt holders
on how to register and qualify for payment, Bloomberg News
discloses. Terms were relatively attractive, with 90 percent of
the total debt paid upfront, Bloomberg News notes.
Negotiations with larger creditors haven't been so easy, requiring
a year and a half of back-and-forth talks among bondholders,
shareholders and the government, Bloomberg News notes. In
Brasilia, Oi's fate has important political ramifications,
Bloomberg News discloses. The company owes money to the
government but also operates the nation's largest fiber-optic
network, with 330,000 kilometers (205,000 miles) of lines,
Bloomberg News relays. Telecommunications regulator Anatel, which
polices Oi's service quality, is the company's largest individual
creditor, with BRL11 billion ($3.34 billion) in unpaid fines and
other fees, Bloomberg News says.
President Michel Temer's government created a task force led by
Attorney General Grace Mendonca to negotiate the public portion of
the debt, Bloomberg News notes. Anatel sought an injunction,
saying the terms of Oi's plan to pay for the fines and other fees
are illegal, and the part referring to the regulator should be
halted, according to a copy of the document obtained by Bloomberg.
Winding Road
Along the way to the vote, a chief financial officer and a chief
executive officer resigned, among other executives, Bloomberg News
relays. A tough board, led by businessman Nelson Tanure -- Oi's
second largest investor -- tried to maintain control of the
company while on the other side, well-known names of the
distressed-debt world including Aurelius Capital Management and
BlackRock Inc. fought for the upper hand, Bloomberg News says.
It took a dramatic decision in court to break the deadlock. Near
the end of November, Judge Fernando Viana decided that recently
named CEO Eurico Teles would be solely responsible for negotiating
and filing a restructuring plan for the company, without requiring
the board's blessing, Bloomberg News notes. Teles, who was
initially seen as a consensus pick to lead Oi, worked out a plan
that gives bondholders as much as 75 percent of the company -- or
even 90 percent if creditors take part in a 4 billion-real capital
increase, Bloomberg News notes.
Creditors are expected to take up that proposal, but shareholders
aren't giving up, filing complaints to Anatel, securities
regulator CVM, the bankruptcy court, the attorney general and
Brazil's public accounts watchdog TCU, Bloomberg News relays.
They claim the plan is illegal and an aberration of Brazil's
corporate law, Bloomberg News says.
By the close of business, it wasn't clear whether one of those
complaints would receive a ruling in time to stop the meeting,
Bloomberg News notes. Lawyers, creditors and other interested
parties in Sao Paulo and Brasilia were packing and getting ready
to board flights to Rio for the meeting, Bloomberg News relays.
After 18 months of theatrics, a dramatic conclusion may be in
store, Bloomberg News adds.
About Oi SA
Headquartered in Rio de Janeiro, and operating almost exclusively
within Brazil, the Oi Group provides services like fixed-line data
transmission and network usage for phones, internet, and cable,
Wi-Fi hot-spots in public areas, and mobile phone and data
services, and employs approximately 142,000 direct and indirect
employees.
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2017, Gram Slattery and Leonardo Goy at Reuters report
that the head of Brazil's telecommunications watchdog, Anatel,
demanded that debt-laden carrier Oi SA submit its latest
restructuring proposal to the regulator before officially filing
it with a bankruptcy court.
Anatel head Juarez Quadros told reporters in Brasilia that the
regulator, an Oi creditor due to billions of dollars in unpaid
regulatory fines, would wait for the country's solicitor-general
to give an opinion on the company's proposal before deciding
whether or not to vote for it, according to Reuters.
On June 20, 2016, pursuant to Brazilian Law No. 11.101/05 (the
'Brazilian Bankruptcy Law'), Oi S.A. and certain of its
subsidiaries filed for recuperao judicial (judicial
reorganization) in Brazil.
On June 21, 2016, OI SA and its affiliates Telemar Norte Leste
S.A. and Oi Brasil Holdings Cooperatief U.A. commenced Chapter 15
proceedings (Bankr. S.D.N.Y. Lead Case No. 16-11791). Ojas N.
Shah, as foreign representative, signed the petitions.
Coop and PTIF are also subject to proceedings in the Netherlands.
The Chapter 15 cases are assigned to Judge Sean H. Lane.
In the Chapter 15 cases, the Debtors are represented by John K.
Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP,
in New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq.,
and Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida.
On July 22, 2016, the New York Court recognized the Brazilian
Proceedings as foreign main proceedings with respect to the
Chapter 15 Debtors, and granted certain additional related relief.
===============
H O N D U R A S
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HONDURAS: Dawns With Roadblocks Halting Traffic in Largest Cities
-----------------------------------------------------------------
World News En Espanol reports that Honduras started Dec. 18 with
the violent occupation of streets in its largest cities that
brought traffic to a halt in protest against the Supreme Electoral
Court (TSE) for its official declaration that the current
President Juan Orlando Hernandez is the new president-elect.
The protests are a continuation of those initiated, some with
vandalism, after the TSE announced the results of the Nov. 20
general elections, which were not accepted by the Opposition
Alliance against the Dictatorship, whose candidate, Salvador
Nasralla, said the announced results were a "fraud," according to
World News En Espanol.
In Tegucigalpa, protesters blocked traffic with stones, burning
tires and piles of garbage, while police and military pickets
tried to clear the streets, the report relays.
Security forces removed the obstacles to motor traffic from some
boulevards that protesters had blocked the night before, the
report notes.
Set on fire in San Pedro Sula, the country's second largest city
and the one with the biggest industrial growth, were a bank, an
office in the law court building, a vehicle and several
businesses, several of which were looted, the report discloses.
The city dawned with its roads leading out of town to the north,
south, east and west all closed, the report notes.
The demonstrators parked trucks across one of the thoroughfares to
keep cars from circulating, which has forced hundreds of people to
walk long distances to work, the report relays.
One of the transportation companies connecting Tegucigalpa with
San Pedro Sula announced that all its routes between the country's
two most important cities were inoperative, the report notes.
Lawmaker Hari Dixon of the LIBRE party, who took part in one of
the roadblocks in Tegucigalpa, said "the people will continue to
defend in the streets the victory of Salvador Nasralla," the
report adds.
======================
P U E R T O R I C O
======================
BAILEY'S EXPRESS: Hires Capital Recovery Group as Auctioneer
------------------------------------------------------------
Bailey's Express, Inc. seeks authority from the U.S. Bankruptcy
Court for the District of Connecticut to hire Capital Recovery
Group, LLC as an auctioneer.
As part of the liquidation process, the Debtor seeks to sell its
remaining personal property and inventory assets located at 61
Industrial Park Road, Middletown, Connecticut. The services of an
auctioneer are required in this case to maximize the value of the
Personal Property and yield a greater recovery for the benefit of
the Debtor's creditors and estate.
CRG will charge and retain an industry standard 18% buyer's
premium on each items sold with 3% going to CRG's on-line auction
provider and 15% to CRG. The buyer's premium is added to the final
sale/hammer price on each item sold and is paid by the winning
bidder and is not included as part of the gross auction sale
proceeds. CRG will charge Bailey's a 10% seller's commission on
total sale proceeds up to $30,000 and 5% commission on total sales
proceeds in excess of $30,000.
Steven R. Papillo, officer at Capital Recovery Group, LLC, attests
that CRG and its auctioneers and employees do not hold any willful
or represent any interest adverse to that of the Debtor or its
estate and that CRG is a disinterested person within the meaning
of 11 U.S.C. Sec. 101(14).
The firm can be reached through:
Steven R. Papillo
Capital Recovery Group
1654 King Street
Enfield, CT 06082
Tel: 860-623-9060
Toll free: 800-300-6852
Fax: 860-623-9160
Email: spapillo@crgauction.com
About Bailey's Express
Headquartered in Middletown, Connecticut, Bailey's Express --
http://www.baileysxpress.com/-- is a Connecticut-based less than
truckload carrier. It provides service across the nation and is
dedicated in helping Connecticut, Massachusetts and Rhode Island
companies market their products throughout the U.S. including
Hawaii and Alaska. It has distribution points in Charlotte,
Dallas, Denver, Easton, Fontana, Indianapolis, Jacksonville,
Memphis, Neenah, Phoenix, Salt Lake City and Toledo. It also
provides service to Mexico, Puerto Rico & Canada.
Bailey's Express filed for Chapter 11 bankruptcy protection
(Bankr. D. Conn. Case No. 17-31042) on July 13, 2017, estimating
its assets and liabilities at between $1 million and $10 million.
The petition was signed by David Allen, chief financial officer.
Judge Ann M. Nevins presides over the case.
Elizabeth J. Austin, Esq., and Jessica Grossarth Kennedy, Esq., at
Pullman & Comley, LLC, serves as the Debtor's bankruptcy counsel.
No creditors' committee has yet been appointed in the case.
CHARLOTTE RUSSE: S&P Cuts CCR to 'CC' on Announced Exchange Offer
-----------------------------------------------------------------
S&P Global Ratings lowered the corporate credit rating on
California-based apparel retailer Charlotte Russe Inc. to 'CC'
from 'CCC-'. The outlook is negative.
S&P said, "At the same time, we lowered the issue-level rating on
the first-lien term loan to 'CC' from 'CCC-. Our '4' recovery
rating on the term loan remains unchanged and reflects our
expectation for average (30% to 50%; rounded estimate: 30%)
recovery in the event of default.
"The rating action reflects our view that Charlotte Russe Inc.'s
exchange offer, if completed, would constitute a distressed
exchange, and would be tantamount to default. The company has
offered to exchange the outstanding $214 million term loan for a
new $90 million term loan, and give supporting term lenders 100%
of the equity of Charlotte Russe subject to dilution from the
newly formed management equity incentive plan. The consummation of
this transaction remains subject to several conditions, most
notably that the company obtains a threshold amount of annualized
operational savings, and requires the commitment of all term loan
debtholders to participate in the proposed out-of-court
restructuring.
"The negative outlook reflects our expectation that, once the
transaction has been completed, we will lower the corporate credit
rating to 'SD' (selective default) and the issue-level rating on
the existing term loan to 'D'. Shortly thereafter, we would raise
the corporate credit rating to a level that reflects the ongoing
risk of a conventional default."
Headquartered in San Francisco, California, Charlotte Russe, Inc.
is a retailer of value-oriented 'fast fashion' apparel and
accessories targeting 18-24 year old women. As of October 27,
2017, the company operated 562 retail stores in the US and Puerto
Rico, with addition sales generated through its ecommerce and
mobile platforms. Revenue for the twelve-month period ended
October 27, 2017 was approximately $949 million.
CHARLOTTE RUSSE: Moody's Lowers CFR to Ca After Debt Restructuring
------------------------------------------------------------------
Moody's Investors Service downgraded its ratings for Charlotte
Russe, Inc., including the company's Corporate Family Rating (to
Ca from Caa1) and Probability of Default Rating (to D-PD from
Caa1-PD). In addition, Moody's concurrently downgraded its ratings
for the company's senior secured term loan B facilities due 2019
(to Ca from Caa1; $150 million and $80 million principal balances
on each facility). The downgrades follow Charlotte Russe's
December 15, 2017 announcement that it has entered into a debt
restructuring agreement with the majority of its lenders, with
ratings now reflecting Moody's best assessment of ultimate
expected loss severity for the company's debt given the current
event of default scenario. The ratings outlook was changed to
stable from negative.
Subsequent to actions, Moody's will withdraw the company's ratings
given the pending restructuring, which the rating agency believes
will move forward substantially in accordance with plans.
The following ratings for Charlotte Russe, Inc. were downgraded
and will subsequently be withdrawn:
-- Corporate Family Rating, to Ca from Caa1
-- Probability of Default Rating, to D-PD from Caa1-PD
-- $150 million principal (approximately $139 million
outstanding) senior secured term loan B due 2019, to Ca (LGD4)
from Caa1 (LGD4)
-- $80 million principal (approximately $75 million outstanding)
senior secured term loan B due 2019, to Ca (LGD4) from Caa1
(LGD4)
The ratings outlook has been changed to stable from negative
RATINGS RATIONALE
In the application of Moody's Loss Given Default Methodology, the
family recovery rate was maintained at 50%, signaling what Moody's
believes approximates the current valuation of the company. As a
result, the first lien term loan was downgraded to Ca, with an
expected loss rate of roughly 44%.
The principal methodology used in these ratings was Retail
Industry published in October 2015.
Headquartered in San Francisco, California, Charlotte Russe, Inc.
is a retailer of value-oriented 'fast fashion' apparel and
accessories targeting 18-24 year old women. As of October 27,
2017, the company operated 562 retail stores in the US and Puerto
Rico, with addition sales generated through its ecommerce and
mobile platforms. Revenue for the twelve-month period ended
October 27, 2017 was approximately $949 million.
DDR CORP: Moody's Cuts Pref. Stock Rating to Ba1 on Spinoff
------------------------------------------------------------
Moody's Investors Service has downgraded the senior unsecured
rating of DDR Corp. to Baa3 from Baa2. This action follows the
announcement on December 14 that DDR will spinoff 50 assets,
including its entire Puerto Rico portfolio, into a new
publicly-traded REIT called Retail Value Trust ("RVT"). The
ratings downgrade is primarily driven by concerns that DDR's
remaining portfolio will likely face leasing pressures, more
tenant bankruptcies and challenges with growing, particularly in
locations where DDR does not have a dominant presence.
Furthermore, the REIT's longer-term growth strategy is unclear.
The rating outlook was revised to stable from negative, reflecting
expected volatility in operating performance as the retail
industry continues to experience secular headwinds, mitigated by
maintenance of conservative credit metrics including net
debt/EBITDA in the 6x range (inclusive of DDR's pro-rata share of
unconsolidated joint ventures) following the RVT transaction.
The following ratings were downgraded:
Issuer: DDR Corp.
Senior Unsecured Rating downgraded to Baa3 from Baa2
Senior Unsecured MTN Shelf downgraded to (P)Baa3 from (P)Baa2
Subordinate MTN Shelf downgraded to (P)Ba1 from (P)Baa3
Preferred Stock Rating downgraded to Ba1 from Baa3
Senior Unsecured Shelf downgraded to (P)Baa3 from (P)Baa2
Subordinate Shelf downgraded to (P)Ba1 from (P)Baa3
Preferred Stock Shelf downgraded to (P)Ba1 from (P)Baa3
RATINGS RATIONALE
The spinoff of RVT represents a positive step in DDR's portfolio
repositioning strategy as it completely eliminates the REIT's
exposure to Puerto Rico (12.4% of NOI as of Q3 2017), a market
with weak operating performance and uncertain growth prospects
that is still recovering from the effects of Hurricane Maria. In
addition, the transaction removes exposure to properties within
the continental U.S. with weaker operating fundamentals and growth
potential. However, DDR's remaining portfolio is less defensible
than its shopping center REIT peers, in particular with respect to
location and market depth. The REIT faces operating risks due to
the continued effects of ecommerce on bricks and mortar retail
sales and growing competition amongst retailers. Moody's expect
further tenant bankruptcies will pressure leasing and occupancy
over the next 12-18 months. Operating performance could be
pressured by increased rent concessions and more accommodating
co-tenancy clauses provided to preserve occupancy.
DDR's near-term growth strategy focuses on organic growth of its
existing portfolio, however longer term growth is unclear.
Nonetheless, the REIT remains committed to a conservative capital
structure, which implies any future investment opportunities will
likely be financed with some form of equity. The public equity
market has remained an unattractive capital raise vehicle for DDR
as its share price has traded below net asset value for some time.
The effect of the spinoff transaction on DDR's stock price will
likely be an important variable in determining future growth
avenues.
The Baa3 senior unsecured rating reflects a conservative capital
structure, with net debt/EBITDA post spinoff in the high 5x range
and fixed charge coverage (defined as EBITDA/(interest expense +
capitalized interest+preferred dividends)) in the mid 2x range
(excluding DDR's pro-rata share of unconsolidated joint ventures).
In addition, DDR has solid liquidity that includes a $1 billion
unsecured revolver and a large unencumbered pool of assets.
Upcoming debt maturities have largely been refinanced over the
past year. These factors will help mitigate potential operating
volatility over the next two years.
An upgrade is unlikely in the next 12-18 months. However, longer
term, a positive rating action would require DDR to have a
well-defined growth strategy and demonstrated ability to execute
it. An upgrade would also be predicated on fixed charge coverage
approaching 3.5x, net debt/EBITDA below 5.5x, secured debt % gross
assets below 10% and debt + preferred equity as a % gross assets
closer to 40%, all on a sustained basis inclusive of DDR's pro-
rata share of unconsolidated JVs.
A downgrade would result from net debt/EBITDA above 6.5x, debt +
preferred equity as a % gross assets exceeding 50%, secured debt %
gross assets closer to 20% or fixed charge coverage ratio below
2.5x, all on a sustained basis, inclusive of DDR's pro-rata share
of JVs.
DDR Corp (NYSE: DDR) is a retail REIT headquartered in Beachwood,
Ohio. Post the spinoff of RVT, the REIT will own and manage 235
assets encompassing 55 million square feet (at 100% ownership).
The principal methodology used in these ratings was Global Rating
Methodology for REITs and Other Commercial Property Firms
published in July 2010.
MAGUMO CORP: Court Conditionally Approves Disclosure Statement
--------------------------------------------------------------
Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico has conditionally approved the Disclosure
Statement of Magumo Corp. that was filed on December 4, 2017.
A hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan and of such
objections as may be made to either will be held on January 10,
2018 at 9:00 a.m.
Acceptances or rejections of the Plan may be filed in writing by
the holders of all claims on/or before 14 days prior to the date
of the hearing on confirmation of the Plan.
Any objection to the final approval of the Disclosure Statement
and/or the confirmation of the Plan shall also be filed on/or
before 14 days prior to the date of the hearing on confirmation of
the Plan.
The Debtor shall file with the Court the list of acceptances and
rejections and the computation of the same, within 7 working days
before the hearing on confirmation.
A full-text copy of Judge Flores' order dated December 6, 2017 is
available at:
http://bankrupt.com/misc/prb17-01642-11-44.pdf
About Magumo Corp.
Magumo Corp sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 17-01642) on March 10, 2017. The
petition was signed by Maria Francisca Rivera-Rivera, president.
The case is assigned to Judge Mildred Caban Flores.
At the time of the filing, the Debtor disclosed $545,052 in assets
and $1.13 million in liabilities.
The Debtor has a fee simple interest in a land located in Beatriz
Ward, Caguas, Puerto Rico, with real properties used as "motel,"
valued at $500,000 subject to the liens of Banco Santander and
CRIM.
TOYS "R" US: Wants Exclusive Plan Filing Deadline Moved to July 15
------------------------------------------------------------------
BankruptcyData.com reported that Toys "R" Us filed with the U.S.
Bankruptcy Court a motion to extend the exclusive period during
which the Company can file a Chapter 11 plan and solicit
acceptances thereof through and including July 15, 2018 and
September 13, 2018, respectively. The motion explains, "An
extension of the Exclusivity Periods will provide the Debtors with
additional time to prepare for, begin the plan negotiation
process, and ultimately implement a value-maximizing
restructuring. The Debtors have initiated this process and made
substantial progress to date - they are working to finalize their
real estate analysis and business plan - and have begun
negotiations and discussions with their stakeholders. But there is
much more to be done. The Debtors will use the additional time
provided by the extension of the Exclusivity Periods to finalize
their analyses, further discussions regarding their restructuring
strategy, and engage in the multiparty negotiations that will
ultimately result in the stakeholders coalescing around a
consensual plan of reorganization and emergence capital structure.
Significantly, the extension of the Exclusivity Periods
contemplated herein will allow the Debtors to emerge from chapter
11 prior to the next holiday season. This is in the best interests
of the company and all of the Debtors' stakeholders. The Debtors
believe that the collaborative efforts of stakeholders to date in
these chapter 11 cases will continue into the restructuring
discussions and chapter 11 plan negotiation process and will help
the Debtors to accomplish a consensual restructuring on this
timeline."
The Court scheduled a December 19, 2017 hearing to consider the
motion, according to BankruptcyData.
About Toys "R" Us
Toys "R" Us, Inc., is an American toy and juvenile-products
retailer founded in 1948 and headquartered in Wayne, New Jersey,
in the New York City metropolitan area. Merchandise is sold in
880 Toys "R" Us and Babies "R" Us stores in the United States,
Puerto Rico and Guam, and in more than 780 international stores
and more than 245 licensed stores in 37 countries and
jurisdictions.
Merchandise is also sold at e-commerce sites including Toysrus.com
and Babiesrus.com.
On July 21, 2005, a consortium of Bain Capital Partners LLC,
Kohlberg Kravis Roberts and Vornado Realty Trust invested $1.3
billion to complete a $6.6 billion leveraged buyout of the
company.
Toys "R" Us is now a privately owned entity but still files with
the Securities and Exchange Commission as required by its debt
agreements.
The Company's consolidated balance sheet showed $6.572 billion in
assets, $7.891 billion in liabilities, and a stockholders' deficit
of $1.319 billion as of April 29, 2017.
Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its
Canadian subsidiary voluntarily filed for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No.
17-34665) on Sept. 19, 2017. In addition, the Company's Canadian
subsidiary voluntarily commenced parallel proceedings under the
Companies' Creditors Arrangement Act ("CCAA") in Canada in the
Ontario Superior Court of Justice. The Company's operations
outside of the U.S. and Canada, including its 255 licensed stores
and joint venture partnership in Asia, which are separate
entities, are not part of the Chapter 11 filing and CCAA
proceedings.
Grant Thornton is the monitor appointed in the CCAA case.
Judge Keith L. Phillips presides over the Chapter 11 cases.
In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland & Ellis
International LLP serve as the Debtors' legal counsel. Kutak Rock
LLP serves as co-counsel. Toys "R" Us employed Alvarez & Marsal
North America, LLC as its restructuring advisor; and Lazard Freres
& Co. LLC as its investment banker. It hired Prime Clerk LLC as
claims and noticing agent. A&G Realty Partners, LLC, serves as
its real estate advisor.
On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an
official committee of unsecured creditors. The Committee retained
Kramer Levin Naftalis & Frankel LLP as its legal counsel; Wolcott
Rivers, P.C. as local counsel; FTI Consulting, Inc. as financial
advisor; and Moelis & Company LLC as investment banker.
TOYS "R" US: Initiates CVA Process in United Kingdom
----------------------------------------------------
BankruptcyData.com reported that Toys "R" Us announced that, as
part of the Company's ongoing financial restructuring efforts, the
Company's United Kingdom (UK) operation has initiated a process by
which it is seeking creditor approval to reposition its real
estate portfolio. The UK Company Voluntary Arrangement (CVA)
process will not impact any Toys "R" Us entities or stakeholders -
including employees, vendors and customers - outside the UK. The
Company's approximately 1,600 Toys "R"Us and Babies "R" Us stores
around the world, including all stores in the UK, are currently
open for business and continuing to operate as usual. Dave
Brandon, chairman and C.E.O., states, "As we continued to work
through the financial restructuring process, we made the decision
to take action to put our UK operation on stronger financial
footing. Through the CVA process, we hope to receive authorization
to restructure our UK lease obligations so that we will be better
able to invest in our UK business and further improve the customer
experience. Importantly, our stores and operations in our other
global markets will not be impacted by this process." Under the
UK's CVA process, Toys "R" Us UK has submitted a restructuring
plan to its creditors and will solicit their approval of this plan
over the next 14 days.
If approved by 75% of the creditors and then declared effective,
the CVA plan would allow the UK entity to move forward with a more
cost efficient store base and footprint.
About Toys "R" Us
Toys "R" Us, Inc., is an American toy and juvenile-products
retailer founded in 1948 and headquartered in Wayne, New Jersey,
in the New York City metropolitan area. Merchandise is sold in
880 Toys "R" Us and Babies "R" Us stores in the United States,
Puerto Rico and Guam, and in more than 780 international stores
and more than 245 licensed stores in 37 countries and
jurisdictions.
Merchandise is also sold at e-commerce sites including Toysrus.com
and Babiesrus.com.
On July 21, 2005, a consortium of Bain Capital Partners LLC,
Kohlberg Kravis Roberts and Vornado Realty Trust invested $1.3
billion to complete a $6.6 billion leveraged buyout of the
company.
Toys "R" Us is now a privately owned entity but still files with
the Securities and Exchange Commission as required by its debt
agreements.
The Company's consolidated balance sheet showed $6.572 billion in
assets, $7.891 billion in liabilities, and a stockholders' deficit
of $1.319 billion as of April 29, 2017.
Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its
Canadian subsidiary voluntarily filed for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No.
17-34665) on Sept. 19, 2017. In addition, the Company's Canadian
subsidiary voluntarily commenced parallel proceedings under the
Companies' Creditors Arrangement Act ("CCAA") in Canada in the
Ontario Superior Court of Justice. The Company's operations
outside of the U.S. and Canada, including its 255 licensed stores
and joint venture partnership in Asia, which are separate
entities, are not part of the Chapter 11 filing and CCAA
proceedings.
Grant Thornton is the monitor appointed in the CCAA case.
Judge Keith L. Phillips presides over the Chapter 11 cases.
In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland & Ellis
International LLP serve as the Debtors' legal counsel. Kutak Rock
LLP serves as co-counsel. Toys "R" Us employed Alvarez & Marsal
North America, LLC as its restructuring advisor; and Lazard Freres
& Co. LLC as its investment banker. It hired Prime Clerk LLC as
claims and noticing agent. A&G Realty Partners, LLC, serves as
its real estate advisor.
On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an
official committee of unsecured creditors. The committee hired
Kramer Levin Naftalis & Frankel LLP as its legal counsel; Wolcott
Rivers, P.C. as local counsel; FTI Consulting, Inc. as financial
advisor; and Moelis & Company LLC as investment banker.
***********
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.
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for actual trades are probably different. Our objective is to
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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
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***********
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
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