/raid1/www/Hosts/bankrupt/TCRLA_Public/180103.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, January 3, 2018, Vol. 19, No. 2
Headlines
A R G E N T I N A
ARGENTINA: Economic Policies to be Tested in 2018, Analysts Say
GST AUTOLEATHER: Needs More Time to Complete Sale, File Plan
GST AUTOLEATHER: Hires Deloitte & Touche as Independent Auditor
B E R M U D A
RENAISSANCE CAPITAL: First Meeting of Creditors Set Jan. 24
RENAISSANCE GROUP: First Meeting of Creditors Set Jan. 24
B R A Z I L
POSTO 9 LAKELAND: CenterState Mediation Delays Plan Filing
C A Y M A N I S L A N D S
ATM SELECTS: Taps Krys Global as Liquidator
MERCURY STRATEGIES: Taps Krys Global as Liquidator
ODEBRECHT DRILLING: Fitch Withdraws D Rating on Sr. Secured Notes
D O M I N I C A
DOMINICA: ECCU Growth Hit by Hurricanes
D O M I N I C A N R E P U B L I C
DOMINICAN REP: Economic Policies Perpetuate Poverty & Inequality
P U E R T O R I C O
BEBE STORES: President and COO Walter Parks Leaves
V E N E Z U E L A
VENEZUELA: Get Slammed By High Bus Fares During Holiday Season
VENEZUELA: Worried About Effects of President's New Wage Hike
- - - - -
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A R G E N T I N A
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ARGENTINA: Economic Policies to be Tested in 2018, Analysts Say
---------------------------------------------------------------
President Mauricio Macri's economic reform and adjustment policies
will be tested in 2018 as Argentina tries to deal with inflation,
a budget deficit and other challenges, analysts told EFE.
The gross domestic product (GDP) contracted 2.3 percent in 2016,
Macri's first year in office, and grew 3 percent in 2017.
* * *
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.
GST AUTOLEATHER: Needs More Time to Complete Sale, File Plan
------------------------------------------------------------
GST Autoleather, Inc., and its debtor-affiliates request the U.S.
Bankruptcy Court for the District of Delaware to extend by 120
days the periods during which the Debtors have the exclusive right
to:
(a) file a chapter 11 plan, through and including May 31,
2018; and
(b) solicit votes accepting or rejecting a plan, through and
including July 30, 2018.
The Debtors claim that their progress to date has been achieved in
no small part due to the breathing room provided by chapter 11. In
the midst of the marketing process, the Debtors believe that
maintaining the exclusive right to file and solicit votes on a
chapter 11 plan is critical to consummating their chapter 11
strategy.
The Debtors assert that extending the Exclusivity Periods will
afford them and their stakeholders time to finish their marketing
process, negotiate and confirm a chapter 11 plan, and proceed
toward consummation of these chapter 11 cases in an efficient,
organized fashion. The Debtors contend that fewer than three
months from the Petition Date, they have already made substantial
progress towards achieving their goals in these chapter 11 cases,
but significant work remains to be done. Since filing for chapter
11 relief, the Debtors have, among other things:
(a) stabilized operations and ensured a smooth transition
into chapter 11 through the approval of various crucial first day
motions, including securing authority to pay certain critical and
foreign vendors, honor wages and non-insider incentive programs in
the ordinary course of business, and maintain their cash
management
system;
(b) negotiated and obtained final approval on November 15,
2017, for the Debtors' $40 million debtor-in-possession financing
facility and the Debtors' bid procedures for the sale of
substantially all of the Debtors' assets, which approval followed
weeks of thorough diligence efforts undertaken by the official
committee of unsecured creditors, hard-fought negotiations among
the Debtors, their senior secured lenders, and the Creditors'
Committee, and formal litigation efforts and attendant discovery;
(c) prepared a business plan and related materials, which
together lay the foundation for ongoing operations;
(d) continued marketing substantially all of the Debtors'
assets postpetition, including contacting 149 potentially
interested parties, negotiating and executing confidentiality
agreements with 43 parties, coordinating substantial due diligence
efforts of certain such parties (including management and customer
presentations), and receiving multiple indications of interest;
(e) prepared a motion to approve the sale of substantially
all of their assets, which was filed contemporaneously with the
exclusivity motion;
(f) negotiated, sought and received court approval for, and
executed a replacement factoring agreement after an existing
agreement was terminated upon filing, ensuring compliance with the
DIP Budget, providing certainty regarding the timing and amount of
cash receivables, and providing essential liquidity to support the
Debtors business operations; and
(g) promptly completed their schedules of assets and
liabilities and statements of financial affairs, which were filed
on December 4, 2017, and filed a motion for entry of an order
establishing claims bar dates in these chapter 11 cases to
facilitate the timely administration of their claims pool.
Therefore, the Debtors request a 120-day extension of the
Exclusivity Periods to allow them to focus on continuing to
advance the process and preclude the costly disruption and
instability that would occur if competing plans were to be
proposed.
A hearing will be held on January 17, 2018 at 11:00 a.m. during
which time the Court will consider extending the Debtors'
exclusive periods. Any response or objection to the requested
extension must be filed with the Bankruptcy Court on or before
January 10, 2018.
About GST Autoleather, Inc.
Headquartered in Southfield, Michigan, GST AutoLeather, Inc., was
founded in 1933, then known as Garden State Tanning, initially
operated as a tanning company that processed leather for the
upholstery and garment industries. The Company entered the
automotive industry in 1946.
As of Oct. 3, 2017, the Company employs approximately 5,600 people
worldwide, including the United States, Mexico, Japan, China,
Korea, Germany, Hungary, South Africa, and Argentina. The Company
supplies leather to virtually every major OEM in the automotive
industry, including Audi, BMW/Mini, Daimler, Fiat Chrysler, Ford,
General Motors, Hyundai, Honda, Porsche, PSA, Nissan, Kia, Toyota
and Volkswagen.
GST AutoLeather, Inc., and five of its affiliates filed voluntary
petitions for relief under chapter 11 of the United States
Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-12100) on Oct. 3,
2017. The Hon. Laurie Selber Silverstein is the case judge.
The Debtors tapped Kirkland & Ellis LLP as general bankruptcy
counsel; Pachulski Stang Ziehl & Jones LLP as local bankruptcy
counsel; Lazard Middle Market, LLC as financial advisor; Alvarez &
Marsal North America, LLC as restructuring advisor; and Epiq
Bankruptcy Solutions, LLC as claims and noticing agent, Ernst &
Young LLP, as tax advisors. Deloitte & Touche LLP, as independent
auditor.
On Oct. 13, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The Committee is
represented by Christopher M. Samis, L. Katherine Good, Aaron H.
Stulman, Christopher A. Jones and David W. Gaffey of Whiteford
Taylor & Preston LLP and Erika L. Morabito, Brittany J. Nelson,
John A. Simon, Richard J. Bernard and Leah Eisenberg of Foley &
Lardner LLP.
Royal Bank of Canada is represented by Andrew V. Tenzer of Paul
Hastings LLP.
GST AUTOLEATHER: Hires Deloitte & Touche as Independent Auditor
---------------------------------------------------------------
GST Autoleather, Inc., and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the District of Delaware to
employ Deloitte & Touche LLP, as independent auditor to the
Debtors.
GST Autoleather requires Deloitte & Touche to perform an audit of
the consolidated financial statements of GST AutoLeather Cayman II
Ltd. in accordance with the auditing standards generally accepted
in the U.S. for the year ending December 31, 2017.
The estimate base fee for the engagement is $260,000. The actual
fees will be billed monthly and determined by multiplying the
hours incurred in the performance of the services by a blended
hourly rate of $250 per hour, plus expenses.
Deloitte & Touche will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Diane DeFrancis, partner of Deloitte & Touche LLP, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
Deloitte & Touche can be reached at:
Diane DeFrancis
DELOITTE & TOUCHE LLP
200 Renaissance Center, Suite 3900
Detroit, MI 48243
Tel: (313) 396-1000
Fax: (313) 566-2000
About GST Autoleather, Inc.
Headquartered in Southfield, Michigan, GST AutoLeather, Inc., was
founded in 1933, then known as Garden State Tanning, initially
operated as a tanning company that processed leather for the
upholstery and garment industries. The Company entered the
automotive industry in 1946.
As of Oct. 3, 2017, the Company employs approximately 5,600 people
worldwide, including the United States, Mexico, Japan, China,
Korea, Germany, Hungary, South Africa, and Argentina. The Company
supplies leather to virtually every major OEM in the automotive
industry, including Audi, BMW/Mini, Daimler, Fiat Chrysler, Ford,
General Motors, Hyundai, Honda, Porsche, PSA, Nissan, Kia, Toyota
and Volkswagen.
GST AutoLeather, Inc., and five of its affiliates filed voluntary
petitions for relief under chapter 11 of the United States
Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-12100) on Oct. 3,
2017. The Hon. Laurie Selber Silverstein is the case judge.
The Debtors tapped Kirkland & Ellis LLP as general bankruptcy
counsel; Pachulski Stang Ziehl & Jones LLP as local bankruptcy
counsel; Lazard Middle Market, LLC as financial advisor; Alvarez &
Marsal North America, LLC as restructuring advisor; and Epiq
Bankruptcy Solutions, LLC as claims and noticing agent, Ernst &
Young LLP, as tax advisors. Deloitte & Touche LLP, as independent
auditor.
On Oct. 13, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The Committee is
represented by Christopher M. Samis, L. Katherine Good, Aaron H.
Stulman, Christopher A. Jones and David W. Gaffey of Whiteford
Taylor & Preston LLP and Erika L. Morabito, Brittany J. Nelson,
John A. Simon, Richard J. Bernard and Leah Eisenberg of Foley &
Lardner LLP.
Royal Bank of Canada is represented by Andrew V. Tenzer of Paul
Hastings LLP.
=============
B E R M U D A
=============
RENAISSANCE CAPITAL: First Meeting of Creditors Set Jan. 24
-----------------------------------------------------------
Renaissance Capital Holdings Limited's first meeting of creditors
is set for Jan. 24, 2017 at 11:00 a.m. it will be held at:
Conyers Dill & Pearman Limited
Richmond House, 12 Par la Ville Road
Hamilton HM11, Bermuda
RENAISSANCE GROUP: First Meeting of Creditors Set Jan. 24
---------------------------------------------------------
Renaissance Group Holding Limited's first meeting of creditors is
set for Jan. 24, 2017 at 11:00 a.m. it will be held at:
Conyers Dill & Pearman Limited
Richmond House, 12 Par la Ville Road
Hamilton HM11, Bermuda
===========
B R A Z I L
===========
POSTO 9 LAKELAND: CenterState Mediation Delays Plan Filing
----------------------------------------------------------
Posto 9 Lakeland, LLC and Posto 9 Properties, LLC request the U.S.
Bankruptcy Court for the Middle District of Florida for an
extension of:
(a) the January 4, 2018 deadline during which the Debtors
must file their chapter 11 plans and disclosure statements, and
during which the Debtors have the exclusive right to file a plan,
through February 4, 2018, and
(b) the March 5, 2018 deadline within which only the Debtors
may solicit votes in favor of a plan of reorganization through
April 5, 2017.
The Scheduling Order set the deadline for the Debtors to file
their plan and disclosure statement at January 4, 2018. The
Debtors have not previously sought or obtained an extension of the
Exclusive Plan Filing Deadline or the Exclusive Solicitation
Deadline.
The Debtors have agreed to mediation with their largest secured
creditor, CenterState Bank, N.A., and the guarantors of the
CenterState loans, and have scheduled a mediation, which is to
occur on January 15, 2018.
The Debtors asserts that the mediation would likely affect their
treatment of the claim of CenterState Bank in these chapter 11
cases and the overall structure of the plans. Accordingly, the
Debtors request an extension of the Exclusive Plan Filing Deadline
and the Plan Filing Deadline, and a corresponding 31-day extension
of the Exclusive Solicitation Deadline.
About Posto 9 Lakeland
Posto 9 Lakeland, LLC, is a privately held company that operates a
Brazilian restaurant at 215 East Main Street Lakeland, Florida
33801, Polk County.
Posto 9 Properties listed its business as a single asset real
estate (as defined in 11 U.S.C. Section 101(51B)). It owns in fee
simple interest a real property located at 215 East Main Street,
Lakeland, Florida 33801 valued at $2.39 million.
Posto 9 Lakeland, LLC (Bankr. M.D. Fla. Case No. 17-07887) and
affiliate Posto 9 Properties, LLC (Bankr. M.D. Fla. Case No.
17-07890) filed Chapter 11 bankruptcy petitions on Sept. 6, 2017.
The petitions were signed by Marco Franca, its manager.
Judge Michael G. Williamson presides over the case.
Eric D Jacobs, Esq., and David S. Jennis, Esq., at Jennis Law Firm
serve as the Debtor's bankruptcy counsel.
Posto 9 Lakeland listed $1,210,000 in total assets and $4,850,000
in total liabilities.
Posto 9 Properties listed $2,410,000 in total assets and
$3,800,000 in total liabilities.
==========================
C A Y M A N I S L A N D S
==========================
ATM SELECTS: Taps Krys Global as Liquidator
-------------------------------------------
ATM Selects Strategies Fund, in liquidation, tapped Kenneth Krys
and Christopher Smith of Krys Global as official liquidators.
The liquidators can be reached at
Kenneth Krys
Christopher Smith
Krys Global
Governors Square Building 6, 2nd Floor
23 Lime Tree Bay Ave
PO Box 31237
Cayman Island KY1 - 1205
MERCURY STRATEGIES: Taps Krys Global as Liquidator
--------------------------------------------------
Mercury Strategies Fund Limited, in liquidation, tapped Kenneth
Krys and Christopher Smith of Krys Global as official liquidators.
The liquidators can be reached at
Kenneth Krys
Christopher Smith
Krys Global
Governors Square Building 6, 2nd Floor
23 Lime Tree Bay Ave
PO Box 31237
Cayman Island KY1 - 1205
ODEBRECHT DRILLING: Fitch Withdraws D Rating on Sr. Secured Notes
-----------------------------------------------------------------
Fitch Ratings has downgraded the senior secured notes issued by
Odebrecht Drilling Norbe VIII/IX Ltd. (ODN) to 'D'/RE70% from
'C'/RE70% and has subsequently withdrawn the rating as the notes
have been extinguished. Fitch has also affirmed Odebrecht Offshore
Drilling Finance Ltd.'s (OODFL) senior secured notes at 'D'/RE60%
and subsequently withdrawn the rating as the notes have also been
extinguished.
KEY RATING DRIVERS
The rating actions follow the announcement that Odebrecht Oleo e
Gas S.A. and certain subsidiaries (together, OOG), pursuant to the
extrajudicial recovery plans approved on Oct. 19, 2017 by the 4th
Corporate Court of the State of Rio de Janeiro and the Chapter 15
confirmation order granted on Dec. 12, 2017 by the U.S. Bankruptcy
Court for the Southern District of New York, OOG has completed the
exchange of the restructured financial claims for a combination of
(i) new project bonds in two tranches due 2021 and 2026, (ii) new
project bonds in two tranches due 2022 and 2026, and (iii) new
participating titles. The first debt service payment with respect
to the new project bonds is expected to be paid on or about
Jan. 3, 2018 to holders of the new project bonds as of the
exchange date.
In Fitch's opinion the restructuring agreement resulted in a
distressed debt exchange (DDE) as the restructuring took place in
order to avert a probable payment default on the notes and the
economic terms of the issuances will be reduced. Since issuance,
operating environment for the assets securing the 2021 and 2022
bonds has changed and the targeted operating metrics have not been
met. At issuance the structures were intended to receive little if
any support from OOG. However, from 2011 to 2015 OOG has had to
provide support through CapEx/OpEx coverage, and without the
restructuring ongoing support would be necessary to meet timely
debt service.
The restructuring of the notes also increased their maturity,
which, according Fitch's Global Structured Finance Rating
criteria, translates into a reduction in the original economic
terms of the notes. The new notes that investors received have two
tranches. The first tranche has a fixed amortization schedule and
bears the same interest rate (6.35% per annum (pa) for the 2021
notes and 6.72% pa for the 2022 notes) and the maturity (2021 and
2022) as the current notes. The second tranche is subordinated to
the first tranche and has a 100% variable amortization, based on
the cash surplus of the projects. The second tranche notes will
bear interest at a rate 1% pa higher than the first tranche notes
and mature in 2026.
As a result of the exchange, both the Odebrecht Offshore drilling
Finance and the Odebrecht Norbe VIII and IX notes were
extinguished. Therefore, the rating of the extinguished notes was
withdrawn after been downgraded to 'D'.
RATING SENSITIVITIES
The rating on the notes has been withdrawn as the restructuring
has been finalized.
Fitch has taken the following rating actions:
Odebrecht Offshore Drilling Finance Ltd.
-- Series 2013-1 senior secured notes affirmed at 'D'/RE60% and
withdrawn;
-- Series 2014-1 senior secured notes affirmed at 'D'/RE60% and
withdrawn.
Odebrecht Drilling Norbe VIII/IX Ltd.
-- Series 2010-1 senior secured notes downgraded to 'D'/RE70%
from 'C'/RE70% and withdrawn.
===============
D O M I N I C A
===============
DOMINICA: ECCU Growth Hit by Hurricanes
---------------------------------------
Caribbean360.com reports that the devastating hurricanes Irma and
Maria derailed record growth by the Eastern Caribbean Currency
Union (ECCU) this year.
According to Eastern Caribbean Central Bank (ECCB) Governor
Timothy Antoine, before the Category 5 hurricanes hit, the ECCU
was on pace to record its fastest growth in a decade, according to
Caribbean360.com.
"This welcomed development was rudely interrupted and reversed by
the passage of Hurricanes Irma and Maria, two of the most powerful
storms ever recorded. Five of our member countries were impacted
with three receiving direct hits," he said in his Christmas
message, the report relays.
However, he pointed out, in the aftermath of these storms, "the
ECCU family spirit was on full display as we supported affected
members," the report notes.
Antoine also stressed that despite the impact of the hurricanes,
the ECCB made significant strides "of which we can be justifiably
proud," the report says.
"These include return to profitability and the launch of our
strategic plan," he said, the report adds.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REP: Economic Policies Perpetuate Poverty & Inequality
----------------------------------------------------------------
Dominican Today reports that the Dominican Republic's economic
growth rate over the past three years exceeds 6%, leading to the
creation of 403,076 new jobs and reducing the unemployment rate
from 8.8 to 5.4% during this period.
However, most new jobs tend to be created in economic sectors with
low pay and work productivity, perpetuating the unequal wealth
distribution cycle, according to Dominican Today.
The three sectors with the highest increase in employees are
agriculture and trade, wholesale and retail trade and "other
services," which includes domestic workers, beauty salons and
other small businesses, the report notes.
These account for 61.84% of jobs in the Dominican Republic,
according to a report by the Economic Faculty of the Autonomous
University of Santo Domingo (UASD), the report relays. Although
Central Bank statistics show that 4.3 million people were in
employment in the second quarter of 2017, just over 2.1 million
were working in these sectors, the report says.
"This means that public policies have not succeeded in
transforming the country's productive structure, which goes some
way to explain the fact of having had a high level of economic
growth, while the levels of poverty (33%) and inequality (0.50)
have remained relatively high," said the UASD economic report,
Dominican Today notes.
Salaries earned by workers in the trade sector are defined by
three categories of companies, establishing a minimum monthly wage
of RD$9,411.60 for small businesses, RD$10,620.00 for medium-sized
businesses, and RD$15,447.60 for large businesses, the report
relays.
In the "other services" category wages vary, while in agriculture
workers are paid RD$59 per hour, for a monthly wage of RD$11,328
based on an eight-hour working day, the report adds.
As reported in the Troubled Company Reporter-Latin America on
Nov. 20, 2017, Fitch Ratings has affirmed Dominican Republic's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.
======================
P U E R T O R I C O
======================
BEBE STORES: President and COO Walter Parks Leaves
--------------------------------------------------
Walter Parks, bebe stores, inc.'s president, chief operating
officer and chief financial officer, is no longer employed with
the Company, according to a Form 8-K filed with the Securities and
Exchange Commission. Mr. Parks and the Company, Mr. Parks will be
receiving a retention bonus of $500,000.
Effective Dec. 29, 2017, Joe Scirocco, 61, serves as the Company's
principal financial officer and principal accounting officer. Mr.
Scirocco is an independent consultant and currently serves on the
board of directors of both The Collected Group and Reyn Spooner
Holdings. From 2012 to 2015, Mr. Scirocco served as the chief
operating officer and chief financial officer of TOMS Shoes, Inc.
Mr. Scirocco served as executive vice president and chief
financial officer of Quiksilver, Inc. from 2007 to 2012 and
additionally as chief operating officer of Quiksilver in 2010 and
2011. He served in various executive roles with Tommy Hilfiger
Corporation from 1997 to 2006, including as chief financial
officer from 2002 to 2006. Prior to joining Tommy Hilfiger
Corporation, he served as an audit and engagement partner in the
retail and consumer products group of Price Waterhouse LLP from
1990 to 1997. Mr. Scirocco is a graduate of Yale University. In
connection with his appointment, the Company has agreed to pay Mr.
Scirocco $12,500 per month plus reasonable expenses.
Effective Jan. 1, 2018, the Company will no longer provide Manny
Mashouf, its chief executive officer, with his base salary or
housing allowance.
About bebe stores inc.
Based in Brisbane, California, bebe stores inc. (NASDAQ: BEBE) --
http://www.bebe.com/-- is a women's retail clothier established
in 1976. The brand develops and produces a line of women's
apparel and accessories, which it markets under the Bebe,
BebeSport, and Bebe Outlet names.
Manny Mashouf founded bebe stores, inc. and has served as chairman
of the Board since the Company's incorporation in 1976. Mr.
Mashouf became the chief executive officer starting February 2016.
He previously served as the Company's CEO from 1976 to February
2004 and again from January 2009 to January 2013. Mr. Mashouf is
the uncle of Hamid Mashouf, the Company's chief information
officer. The Company operated brick-and-mortar stores in the
United States, Puerto Rico and Canada. The Company had 142 retail
stores before ending all retail operations in the U.S. by May 27,
2017. As of July 1, 2017, the Company had no remaining stores and
had fully impaired, all of its remaining long-lived assets at its
corporate offices and distribution center because of the shut-down
of its operations.
bebe stores reported a net loss of $138.96 million on $0 of net
sales for the fiscal year ended July 1, 2017, compared to a net
loss of $27.48 million on $0 of net sales for the fiscal year
ended July 2, 2016. As of Sept. 30, 2017, bebe stores had $30.87
million in total assets, $39.21 million in total liabilities and a
total shareholders' deficit of $8.34 million.
The report from the Company's independent registered public
accounting firm Deloitte & Touche LLP, in San Francisco,
California, for the year ended Dec. 31, 2016, included an
explanatory paragraph stating that the Company has incurred
recurring losses from operations and negative cash flows from
operations and expects significant uncertainty in generating
sufficient cash to meet its obligations and sustain its
operations, which raises substantial doubt about its ability to
continue as a going concern.
=================
V E N E Z U E L A
=================
VENEZUELA: Get Slammed By High Bus Fares During Holiday Season
--------------------------------------------------------------
EFE News reports that Venezuelans are finding affordable travel
options elusive during the holidays due to a combination of the
usual high-season price hikes in bus fares and the hyperinflation
plaguing the South American country.
Travelers heading out of Caracas for New Year's Eve have been
forced to stand in long lines at bus terminals, while other people
hoping to get out of town have found the cost of a ticket beyond
their reach, according to EFE News.
* * *
As reported in the Troubled Company Reporter-Latin America, Robin
Wigglesworth at The Financial Times related that Venezuela
appeared to have made a crucial bond repayment in late October.
The Latin American country and its state oil company PDVSA have
failed to make several debt payments in recent weeks, the report
noted. But the most important one was an $842 million instalment
due Oct. 29 on a PDVSA bond maturing in 2020, which, unlike most
of the other overdue debts, had no 'grace period' that allowed for
30 days to clean up any arrears without triggering a default, the
report notes.
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2017, Moody's Investors Service has withdrawn the Caa3
rating of the US$5 billion, 6.5% Government of Venezuela bond due
on Dec.29, 2036 (ISIN USP97475AQ39).
On Nov. 16, 2017, S&P Global Ratings lowered on Nov. 13, 2017, its
long- and short-term foreign currency sovereign credit ratings on
the Bolivarian Republic of Venezuela to 'SD/D' from 'CC/C'. The
long- and short-term local currency sovereign credit ratings
remain at 'CCC-/C' and are still on CreditWatch with negative
implications. S&P said, "At the same time, we lowered our issue
ratings on Venezuela's global bonds due 2019 and 2024 to 'D' from
'CC'. Our issue ratings on the remainder of Venezuela's foreign
currency senior unsecured debt remain at 'CC'. Finally, we
affirmed our transfer and convertibility assessment on the
sovereign at 'CC'."
VENEZUELA: Worried About Effects of President's New Wage Hike
-------------------------------------------------------------
EFE News reports that Venezuela begins 2018 sunk in hyperinflation
and full of concern about the new wage increase disclosed by
President Nicolas Maduro, which is only being celebrated in
government circles and will unleash even greater inflation,
according to many economists.
"Maduro is simply continuing with his policy of trying to put out
the fire of hyperinflation, which he lit in Venezuela, with a can
of gasoline," economist Luis Oliveros wrote on the Twitter feed he
shares with many colleagues, according to EFE News.
* * *
As reported in the Troubled Company Reporter-Latin America, Robin
Wigglesworth at The Financial Times related that Venezuela
appeared to have made a crucial bond repayment in late October.
The Latin American country and its state oil company PDVSA have
failed to make several debt payments in recent weeks, the report
noted. But the most important one was an $842 million instalment
due Oct. 29 on a PDVSA bond maturing in 2020, which, unlike most
of the other overdue debts, had no 'grace period' that allowed for
30 days to clean up any arrears without triggering a default, the
report notes.
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2017, Moody's Investors Service has withdrawn the Caa3
rating of the US$5 billion, 6.5% Government of Venezuela bond due
on Dec.29, 2036 (ISIN USP97475AQ39).
On Nov. 16, 2017, S&P Global Ratings lowered on Nov. 13, 2017, its
long- and short-term foreign currency sovereign credit ratings on
the Bolivarian Republic of Venezuela to 'SD/D' from 'CC/C'. The
long- and short-term local currency sovereign credit ratings
remain at 'CCC-/C' and are still on CreditWatch with negative
implications. S&P said, "At the same time, we lowered our issue
ratings on Venezuela's global bonds due 2019 and 2024 to 'D' from
'CC'. Our issue ratings on the remainder of Venezuela's foreign
currency senior unsecured debt remain at 'CC'. Finally, we
affirmed our transfer and convertibility assessment on the
sovereign at 'CC'."
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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, Psyche A. Castillon, Julie Anne L. Toledo, Ivy B.
Magdadaro, and Peter A. Chapman, Editors.
Copyright 2018. 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.
* * * End of Transmission * * *