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/raid1/www/Hosts/bankrupt/TCRLA_Public/180412.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, April 12, 2018, Vol. 19, No. 72 Headlines A R G E N T I N A ARGENTINA: Spanish Firm Call on Country to Protect Investments CABLEVISION SA: Moody's Hikes CFR to B1; Outlook Stable TELECOM ARGENTINA: Moody's Hikes CFR to B1; Outlook Stable B R A Z I L BRAZIL: Moody's Alters Outlook to Stable; Affirms Ba2 Rating MARFRIG GLOBAL: Acquires Control of National Beef in $969MM Deal MARFRIG GLOBAL: S&P Places 'B+' Global Scale CCR on Watch Positive MINAS GERAIS: S&P Affirms B- Issuer Credit Rating, Outlook Stable PETROLEO BRASILEIRO: Offers Rights in Onshore, Offshore Fields PETROLEO BRASILEIRO: Moody's Hikes CFR to Ba2; Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Unfair Taxes, Business Confidence Survey Says M E X I C O MEXICO: Violence Cost Country 21% of GDP in 2017, Report Says P A R A G U A Y VISION BANCO: S&P Affirms 'B' LT ICR, Maintains Stable Outlook P U E R T O R I C O CATHOLIC SCHOOL: Bankr. Court Junks Bid for Stay Pending Appeal COLONIAL MEDICAL: Seeks to Expand Scope of 1611 Law Services CUPEYVILLE SCHOOL: Court OK's Disclosures; Plan Hearing on May 9 - - - - - ================= A R G E N T I N A ================= ARGENTINA: Spanish Firm Call on Country to Protect Investments -------------------------------------------------------------- EFE News reports that the executives of several large Spanish companies operating in Argentina met in Buenos Aires and agreed that Mauricio Macri's administration has encouraged new private investments, but warned that long-lasting institutional stability was necessary to secure the business sector's confidence. The forum took place in the Spanish embassy, where the presidents of the BBVA Frances bank, Martin Zarich, and the Gas Natural Fenosa company, Horacio Cristiani, were invited to speak on the issue of private investments and business confidence in Argentina, according to EFE News. Argentine Finance Minister Luis Caputo was also invited to the event, organized by Spain's ABC newspaper, the report notes. "The political process is favorable. This is a new stage that is very interesting. For me, the issue is that Argentina has gained a terrible reputation from the point of view of political changes . . . which sometimes lead to a decrease in investment flows," Mr. Cristiani said, the report relays. According to Mr. Cristiani, Mr. Macri's administration had encouraged "legal certainty" that is essential to investors, although he warned of the risk of "institutional and political volatility," which has long affected Argentina, the report relays. "There are changes in every country, but we cannot have 180-degree changes from one period to the next," Mr. Cristiani added, says the report. The report notes that Mr. Zarich recognized that Argentina's recent history of political changes explained why gaining foreign corporations' complete confidence was still a challenge. "There is still much work to be done . . . A particular macroeconomic context is necessary to build up investments, which involves economic stability and legal certainty," the BBVA Frances president said, the report relays. Mr. Zarich added that, although "boatloads of investments" would not come pouring in from one day to the next, confidence would gradually improve after companies start identifying a "profitable project," notes the report. * * * 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. CABLEVISION SA: Moody's Hikes CFR to B1; Outlook Stable ------------------------------------------------------- Moody's Investors Service has upgraded Cablevision S.A.'s Corporate Family Rating ("CFR") and its long term senior unsecured notes to B1 from B2. The outlook for all ratings is stable. These actions conclude the review for upgrade initiated in July 2017 after the announcement of a potential merger between the two companies through a non-cash share exchange transaction. RATINGS RATIONALE The upgrade to B1 from B2 reflects the solid credit metrics and strong liquidity profile of the merged company combined with its undisputed market position as it becomes the largest and only integrated telecom operator in Argentina. The new company will offer a wide array of services, with market shares of around 38% in Cable TV, 56% in Broadband, 48% in fixed telephony, and 32% in Mobile. On the other hand, the B1 rating is constrained by the Argentina's B2 government bond rating, strong competition from large global players, and potential execution risks arising from the merger. The B1 rating ranks one-notch above Argentina's government bond rating of B2, which is granted only on an exceptional basis for issuers with fundamentals that are much stronger than the sovereign. In the case of the merged company this is evidenced by its strong credit metrics, undisputed market position, good liquidity and some revenues generated outside of Argentina by its subsidiaries in Paraguay (Ba1) and Uruguay (Baa2). These factors outweigh the company's close links with the Argentine economy. On January 1, 2018, Telecom completed the planned merger with Cablevision. Under the new structure, Telecom will continue to act as an operating and publicly traded company while being fully integrated with Cablevision. Telecom's credit profile and capital structure will be further strengthened by the integration with Cablevision, which contributes with stronger margins and lengthier debt maturity profile. The large size of the newly formed entity will also increase its competitive capacity in Argentina's telecommunications industry, while benefiting from economies of scale and operational synergies. Accordingly, the new company will likely create pressure on competitors for investments in infrastructure and could drive additional M&A activity in the sector in Argentina. Combined figures as of December 2017, the merged entity generated USD6,2 billion in net revenues and USD2 billion in EBITDA. The revenue mix is well diversified with around 38% derived from mobile services, 23% from Pay-TV, 19% from Broadband and 8% from Fixed services. Although Telecom's EBITDA margin is below the industry average for Latin American telecom operators that Moody's rate, the company's low leverage and strong cash generation before capital spending support its solid financial profile. For the full-year ended December 2017, the EBITDA margin, adjusted by Moody's, increased to 32.1% on a standalone basis and 34.4% combined figures for the merger with Cablevision. Moody's forecast that this margin will further increase overtime with synergies and economies of scale from the merger of the two companies with potential to reach almost 40% until 2021. As of December 31, 2017, combined figures for the merger, Telecom had cash and cash equivalents, and investments of ARS13,429 million, covering 2x its Moody's-adjusted short-term debt, which totaled ARS3,875 million. The outstanding reported short-term debt balance of ARS5,278 million is mainly comprised of notes that were issued to refinance bank facilities, which were used to purchase 4G licenses. Since the fourth quarter of 2016, Telecom started improving its liquidity and debt maturity profile because it used a portion of the six-year tenor USD400 million credit facility granted by the International Finance Corporation (Aaa, stable) and the USD100 million in 2017 with Inter-American Development Bank (IDB) to refinance its short-term financial liabilities. The proceeds were also used to finance the expansion of Telecom Personal's 4G/LTE mobile network and working capital needs. The stable outlook reflects Moody's expectations for steady to increasing operating margins and cash flow generation for the merged company, while further strengthening its market positioning. The outlook takes into consideration integration costs and potential negative free cash flow during the integration phase of the Telecom-Cablevision merger. The outlook also assumes that the company will maintain good liquidity while investing adequate levels of capex to strengthen its competitive capacity. An upgrade of Telecom would depend on an upgrade in Argentina's government bond rating, currently at B2 stable. Quantitatively, it would also require the company to maintain its leading market position while sustaining a prudent financial policies and healthy credit metrics, such as (1) adjusted Debt/EBITDA below 3 times and /or ; (2) RCF/Debt ratio were to be above 20% on a sustained basis, ratings could be downgraded. Negative rating pressure could arise in case of a downgrade in Argentina's government bond rating, or if execution risks materialize leading to erosion in margins and market positioning. An excessive increase in leverage or liquidity reduction for dividend payments could also trigger a rating downgrade. Quantitatively, if (1) adjusted Debt/EBITDA increases above 4.5 times and /or ; (2) RCF/Debt ratio were decline below 10% on a sustained basis, ratings could be downgraded. Headquartered in Buenos Aires, Argentina, Telecom Argentina S.A. (Telecom) is one of three major telecom providers in Argentina. Pro-forma for the merger with Cablevision, the company offers mobile, broadband, fixed and pay-TV services to the residential, corporate and government sectors. In Paraguay, where Telecom derives around 5% of consolidated revenue, the company is also a major mobile services provider. For the full-year ended December 31, 2017, and pro-forma for the merger the company's revenues totaled ARS106 billion. Since January 1st, 2018, after the materialization of the merger with Cablevision, Telecom is owned by Fintech Telecom LLC, which has 39.8% of the company's capital, followed by Cablevision Holding, which has 38.8% controlled ownership. The principal methodology used in these ratings was the Global Pay Television - Cable and Direct-to-Home Satellite Operators, published in January 2017. TELECOM ARGENTINA: Moody's Hikes CFR to B1; Outlook Stable ----------------------------------------------------------- Moody's Latin America has upgraded Telecom Argentina S.A. Corporate Family Rating ("CFR") to B1 from B2 and its national scale rating to Aa2.ar from A1.ar. At the same time, Moody's Investors Service has upgraded Cablevision S.A. global scale rating to B1 from B2 and its national scale rating on USD500 million senior unsecured notes due 2021 to Aa2.ar from A1.ar. The outlook for all ratings is stable. These actions conclude the review for upgrade initiated in July, 2017 after the announcement of a potential merger between the two companies through a non-cash share exchange transaction. RATINGS RATIONALE The upgrade to B1/Aa2.ar from B2/A1.ar reflects the solid credit metrics and strong liquidity profile of the merged company combined with its undisputed market position as it becomes the largest and only integrated telecom operator in Argentina. The new company will offer a wide array of services, with market shares of around 38% in Cable TV, 56% in Broadband, 48% in fixed telephony, and 32% in Mobile. On the other hand, the B1 rating is constrained by the Argentina's B2 government bond rating, strong competition from large global players, and potential execution risks arising from the merger. The B1 rating ranks one-notch above Argentina's government bond rating of B2, which is granted only on an exceptional basis for issuers with fundamentals that are much stronger than the sovereign. In the case of the merged company this is evidenced by its strong credit metrics, undisputed market position, good liquidity and some revenues generated outside of Argentina by its subsidiaries in Paraguay (Ba1) and Uruguay (Baa2). These factors outweigh the company's close links with the Argentine economy. On January 1, 2018, Telecom completed the planned merger with Cablevision. Under the new structure, Telecom will continue to act as an operating and publicly traded company while being fully integrated with Cablevision. Telecom's credit profile and capital structure will be further strengthened by the integration with Cablevision, which contributes with stronger margins and lengthier debt maturity profile. The large size of the newly formed entity will also increase its competitive capacity in Argentina's telecommunications industry, while benefiting from economies of scale and operational synergies. Accordingly, the new company will likely create pressure on competitors for investments in infrastructure and could drive additional M&A activity in the sector in Argentina. Combined figures as of December 2017, the merged entity generated USD6,2 billion in net revenues and USD2 billion in EBITDA. The revenue mix is well diversified with around 38% derived from mobile services, 23% from Pay-TV, 19% from Broadband and 8% from Fixed services. Although Telecom's EBITDA margin is below the industry average for Latin American telecom operators that Moody's rate, the company's low leverage and strong cash generation before capital spending support its solid financial profile. For the full-year ended December 2017, the EBITDA margin, adjusted by Moody's, increased to 32.1% on a standalone basis and 34.4% combined figures for the merger with Cablevision. Moody's forecast that this margin will further increase overtime with synergies and economies of scale from the merger of the two companies with potential to reach almost 40% until 2021. As of December 31, 2017, combined figures for the merger, Telecom had cash and cash equivalents, and investments of ARS13,429 million, covering 2x its Moody's-adjusted short-term debt, which totaled ARS3,875 million. The outstanding reported short-term debt balance of ARS5,278 million is mainly comprised of notes that were issued to refinance bank facilities, which were used to purchase 4G licenses. Since the fourth quarter of 2016, Telecom started improving its liquidity and debt maturity profile because it used a portion of the six-year tenor USD400 million credit facility granted by the International Finance Corporation (AAA, stable) and the USD100 million in 2017 with Inter-American Development Bank (IDB) to refinance its short-term financial liabilities. The proceeds were also used to finance the expansion of Telecom Personal's 4G/LTE mobile network and working capital needs. The stable outlook reflects Moody's expectations for steady to increasing operating margins and cash flow generation for the merged company, while further strengthening its market positioning. The outlook takes into consideration integration costs and potential negative free cash flow during the integration phase of the Telecom-Cablevision merger. The outlook also assumes that the company will maintain good liquidity while investing adequate levels of capex to strengthen its competitive capacity. An upgrade of Telecom would depend on an upgrade in Argentina's government bond rating, currently at B2 stable. Quantitatively, it would also require the company to maintain its leading market position while sustaining a prudent financial policies and healthy credit metrics, such as (1) adjusted Debt/EBITDA below 3 times and /or ; (2) RCF/Debt ratio were to be above 20% on a sustained basis, ratings could be downgraded. Negative rating pressure could arise in case of a downgrade in Argentina's government bond rating, or if execution risks materialize leading to erosion in margins and market positioning. An excessive increase in leverage or liquidity reduction for dividend payments could also trigger a rating downgrade. Quantitatively, if (1) adjusted Debt/EBITDA increases above 4.5 times and /or ; (2) RCF/Debt ratio were decline below 10% on a sustained basis, ratings could be downgraded. Headquartered in Buenos Aires, Argentina, Telecom Argentina S.A. (Telecom) is one of three major telecom providers in Argentina. Pro-forma for the merger with Cablevision, the company offers mobile, broadband, fixed and pay-TV services to the residential, corporate and government sectors. In Paraguay, where Telecom derives around 5% of consolidated revenue, the company is also a major mobile services provider. For the full-year ended December 31, 2017, and pro-forma for the merger the company's revenues totaled ARS106 billion. Since January 1st, 2018, after the materialization of the merger with Cablevision, Telecom is owned by Fintech Telecom LLC, which has 39.8% of the company's capital, followed by Cablevision Holding, which has 38.8% controlled ownership. The principal methodology used in rating CableVision S.A. was Global Pay Television - Cable and Direct-to-Home Satellite Operators published in January 2017. The principal methodology used in rating Telecom Argentina S.A. was Telecommunications Service Providers published in January 2017. =========== B R A Z I L =========== BRAZIL: Moody's Alters Outlook to Stable; Affirms Ba2 Rating ------------------------------------------------------------ Moody's Investors Service has changed the outlook on Brazil, Government of ratings to stable from negative. Concurrently, Moody's affirmed Brazil's issuer and senior unsecured ratings at Ba2, and its senior unsecured shelf ratings at (P)Ba2. The change in the outlook on Brazil's Ba2 ratings was driven by the following factors: 1. Moody's expectation that the next administration will pass the fiscal reforms needed to stabilize debt metrics over the medium term; and that, 2. Higher-than-expected short- and medium-term growth prospects, backed by structural reforms, will support fiscal consolidation efforts In short, Moody's believes that the downside risks to growth and uncertainty regarding the reform momentum that led to the assignment of the negative outlook to the Ba2 rating in May of last year have receded. Moody's decision to affirm the Ba2 ratings reflects credit strengths that offset weak fiscal metrics compared to similarly rated peers. Moderately strong economic and institutional factors are in line with regional and Ba-rated peers, and external vulnerability is very low. Fiscal consolidation is expected to continue. The country ceilings remain unchanged. The long-term foreign- currency bond ceiling remains at Ba1, while the short-term foreign-currency bond ceiling remains unchanged at NP. The long- term foreign-currency deposit ceiling is unchanged at Ba3, and the short-term foreign-currency deposit ceiling is unchanged at NP. The long-term local-currency bond and deposit ceilings remain unchanged at A3. RATINGS RATIONALE RATIONALE FOR CHANGING THE OUTLOOK TO STABLE FROM NEGATIVE FIRST DRIVER: MOODY'S EXPECTATION THAT THE NEXT ADMINISTRATION WILL PASS THE FISCAL REFORMS NEEDED TO STABILIZE DEBT METRICS OVER THE MEDIUM TERM Following the presidential elections in October, Moody's expects the incoming administration to resume efforts to approve further reforms that will be needed, in particular to social security, to comply with the constitutionally-mandated spending ceiling. There is consensus among political leaders that the economic and political costs of failing to comply with the expenditure ceiling are too high to ignore. Doing so would undermine fiscal consolidation efforts, damage market confidence in the capacity of the country's institutions to address its structural fiscal imbalance and, in turn, derail the strong economic recovery now underway, putting renewed pressure on fiscal performance. Accordingly, Moody's expects that the next administration will work effectively with Congress to approve a sufficiently far- reaching social security reform to contain the increase in government mandatory spending and assure compliance with the spending ceiling. In consequence, while fiscal consolidation will be gradual, it will continue, supported by expenditure savings from social security reforms and stronger revenue stemming from a robust recovery. The low inflation and interest rate environment will also have a positive impact on the fiscal accounts and debt dynamics because roughly two-thirds of the stock of government debt is inflation-linked or has floating interest rates. Accordingly, under the rating agency's base case scenario, the fiscal deficit will decline gradually, from 7.8% of GDP in 2017 to 7% of GDP in 2018-19, and the primary balance will remain at 1.5%- 2.0% of GDP. Despite a gradual increase in the debt-to-GDP ratio, the government's interest burden will stabilize. Moody's projects public debt to reach 76% of GDP by 2019 and stabilize at 82% of GDP by 2022. Debt affordability will improve, with the interest- to-revenue ratio declining to 18% in 2017 and 16% in 2018, from a peak of 29% in 2015. SECOND DRIVER: HIGHER-THAN-EXPECTED SHORT- AND MEDIUM-TERM GROWTH, BACKED BY STRUCTURAL REFORMS, WILL SUPPORT FISCAL CONSOLIDATION EFFORTS The rating agency expects a stronger rebound in economic activity than previously anticipated. Over the near-term, higher growth will provide the government with further policy space in support of its reform efforts. Moody's projects average GDP growth of 2.8% in 2018-19 and 2.5% in the following years. The near-term outlook will be supported by a pick-up in credit growth backed by an accommodative monetary policy and solid prospects in the job market. Supported by improving investor confidence, these elements will underpin a broad-based recovery in domestic demand driven by both investment and consumption. Of greater significance for Brazil's underlying economic resilience, structural reforms approved by the Temer administration since 2016 should support Brazil's medium-term growth prospects. A labor reform added flexibility to contract negotiations between employees and employers and several measures were adopted to improve the ease of doing business with a focus on reducing red tape and regulations. The decision to phase out subsidized lending by BNDES will improve credit allocation and contribute to the development of domestic capital markets. RATIONALE FOR AFFIRMING BRAZIL'S Ba2 RATINGS Despite weak fiscal metrics, Brazil's credit profile retains important elements of economic and institutional strength that are in line with -- or exceed -- those of its Ba2 peers. Its economy is large and highly diversified. External vulnerability is very low: the flexible exchange rate regime facilitates the adjustment of the external accounts and a large stock of foreign exchange reserves mitigates Brazil's exposure to external shocks. Brazil's institutions are moderately strong, as illustrated by the limited but ongoing fiscal reform efforts, the revamping of governance for state-owned companies as well as strong banking supervision and regulation. The wide-ranging and ongoing Lava Jato investigations illustrate both weakness (high-level, endemic corruption) and strength (the proactive role of the judiciary in undertaking the investigations). Although the high stock of government debt is a constraint on the rating, a number of mitigating factors reduce associated credit risks relative to peers. Chief among them are the predominance of local-currency debt and the large domestic investor base. With foreign-currency denominated debt accounting for less than 5% of the debt stock, the government balance sheet is resilient to exchange rate shocks, as witnessed during the sharp depreciation in 2015. In addition, a significant portion of the debt stock is issued to the central bank to implement monetary policy, with limited rollover risk to the sovereign. WHAT COULD MOVE THE RATINGS UP Brazil's rating could be upgraded if Moody's were to conclude that further structural reforms would support higher medium-term growth rates and, consequently, faster fiscal consolidation than currently expected. By the same token, deeper and more rapid structural fiscal reforms than currently expected would also place upward pressure on the rating. WHAT COULD MOVE THE RATINGS DOWN A re-emergence of political dysfunction and, relatedly, stalled reform momentum that would threaten implementation of further fiscal reforms and compliance with the spending cap -- particularly additional delays in passing social security reform - - would put negative pressure on the rating. Failure to pass social security reforms would be a strong indicator of such dysfunction. Such a scenario would also signal institutional weaknesses not already captured in Moody's current assessment and would add further downward pressure on the rating. GDP per capita (PPP basis, US$): 15,238 (2016 Actual) (also known as Per Capita Income) Real GDP growth (% change): -3.5% (2016 Actual) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 6.3% (2016 Actual) Gen. Gov. Financial Balance/GDP: -9% (2016 Actual) (also known as Fiscal Balance) Current Account Balance/GDP: -1.3% (2016 Actual) (also known as External Balance) External debt/GDP: 37.7 (2016 Actual) Level of economic development: Moderate level of economic resilience Default history: At least one default event (on bonds and/or loans) has been recorded since 1983. On April 5, 2018, a rating committee was called to discuss the rating of the Brazil, Government of. The main points raised during the discussion were: The issuer's economic fundamentals and growth expectations have materially increased. The issuer's debt trajectory has materially improved The principal methodology used in these ratings was Sovereign Bond Ratings published in December 2016. The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable. MARFRIG GLOBAL: Acquires Control of National Beef in $969MM Deal ---------------------------------------------------------------- Gram Slattery at Reuters reports that Brazil's Marfrig Global Foods SA has acquired a controlling stake in U.S. beef processor National Beef Packing Company LLC for $969 million, the company said in a statement. Marfrig has purchased 51 percent of National Beef Packing Company shares, in a transaction valuing the target at $2.3 billion including debt, Marfrig said, according to Reuters. MARFRIG GLOBAL: S&P Places 'B+' Global Scale CCR on Watch Positive ------------------------------------------------------------------ S&P Global Ratings placed its 'B+' global scale and 'brA-' national scale corporate credit ratings on Marfrig Global Foods S.A. (Marfrig) on CreditWatch with positive implications. S&P also placed Marfrig's 'B+' issue-level ratings on CreditWatch with developing implications. The CreditWatch positive reflects that S&P could affirm or upgrade Marfrig over the next 90 days, once it reevaluates its liquidity, business, and financial risk profiles following its acquisition of a 51% controlling stake of National Beef for $969 million (or around R$3.2 billion). The transaction is still subject to BNDESPAR (due to shareholder agreement) and antitrust approvals. Brazil-based protein processor Marfrig announced the acquisition of a 51% controlling stake of the fourth largest U.S. beef processor, National Beef Packing Co. LLC (National Beef), for $969 million to be paid in cash. The company also announced that it intends to sell its subsidiary Keystone Foods LLC, which, along with the National Beef acquisition, could accelerate debt reduction. MINAS GERAIS: S&P Affirms B- Issuer Credit Rating, Outlook Stable ----------------------------------------------------------------- S&P Global Ratings affirmed its 'B-' foreign and local currency issuer credit ratings on the state of Minas Gerais. S&P also affirmed its 'brB+' national scale rating on the state. The outlook on both scale ratings remains stable. OUTLOOK The stable outlook on the state of Minas Gerais reflects S&P's expectation that, in the next 12 months, the state will keep posting operating and after capex deficits, due to budgetary rigidities and an increasing debt service. At the same time, S&P expects the state to uphold its commitment to control the growth of operating spending as a means of avoiding higher fiscal deficits in the next 12 months. It will continue servicing its debt obligations, and its capital expenditure (capex) level will remain at a historical low. Downside scenario S&P could lower its ratings on the state of Minas Gerais if its willingness and capacity to make timely payments on its debt obligations diminishes as a result of a greater strain on its finances or if it believes that the state's financial commitments appear to be unsustainable in the next 12 months. Upside scenario S&P could raise the ratings on Minas Gerais in the next 12 months if it presents a clear, formal plan to address its short- and medium-term fiscal imbalances, while it improves its cost-control mechanisms and reduces delays in payments to suppliers. RATIONALE The 'B-' ratings on Minas Gerais reflect an eroded fiscal position, coupled with difficulties implementing tougher cost- control measures to improve public finances. S&P said, "Since we last reviewed the state's credit fundamentals on Aug. 16, 2017, we haven't seen improvements in its reliance on unsound cost control measures, though it has continued to make debt service payments on time. We expect the state to follow this strategy in 2018-2019. Lack of policies that underpin fiscal discipline and a rigid intergovernmental system result in continued deficits." S&P said, "We believe that Minas Gerais' financial management deteriorated in the past few years due to less predictable policies and overall poor formal medium and long term financial planning. Ongoing payments of public-sector employees' salaries in installments, and delays in payments to suppliers, which totaled R$5.9 billion in 2017 (8% of operating revenue), are clear evidence of its use of unreliable cost control measures and lesser capacity to manage cash flows. At the same time, we believe the state has been relying more on short-term planning due to immediate liquidity needs; its debt service has been on the rise because of the gradual surge in the installments paid to the federal government as part of the debt renegotiation (Supplemental Law 156/2016). However, we believe the state will continue repaying its debt obligations in a timely manner. Minas Gerais' finances suffer from budgetary constraints because the state government's payroll and interest payments represent over 60% of total operating spending. The state has had continued payment delays because of cost-control measures and sharply lower capex, both of which underscore its limited ability to cut expenditures and higher-than-expected spending. While S&P expects Minas Gerais to continue generating more than 80% of its revenue in the next three years, capex is likely to remain low at around 4.7% of total spending, reflecting fewer borrowings and limited room to make additional cuts in investments. Minas Gerais' budgetary performance continued to deteriorate in 2017, and we expect its fiscal path entail a very gradual recovery. S&P said, "In our base-case scenario for the next three years, we account for continued operating and after-capex deficits, averaging 2.7% of operating revenue and 7.3% of total revenue, respectively. We believe the state's financials will continue to be characterized by some form of underestimated spending, and that increasing debt service and very rigid expenses will continue to weigh on its fiscal performance." S&P said, "In addition to Minas' structural imbalances, we believe that the intergovernmental system for Brazilian local and regional governments (LRGs) has prevented the latter from reaching a revenue-and-expenditure balance due to its intrinsic rigidities. Overall, our current assessment draws on our evaluation of an intrinsically rigid intergovernmental system that has failed to address LRGs' significant budgetary imbalances and this isn't likely to change over the short to intermediate term. Therefore, these factors, in our view, have left LRGs unprepared to address key long-term spending trends and financing options. At the same time, we believe the system continues to have an adequate level of predictability and transparency, with enhanced central government oversight of LRGs' finances and adherence to fiscal discipline. Declining debt burden, offset by pension liabilities and an increasing debt service, will weigh on liquidity "We do not incorporate a potential debt agreement with the federal government in our base-case scenario, and therefore we expect higher debt service than in the past two years. Minas Gerais, like other Brazilian states, benefitted from an 20-year extension on the debt owed to the federal government, and a discount on debt payment installments from July 2016 (with a 100% grace period until December 2016) until June 2018. While, in 2016-2017, Minas Gerais' debt service averaged 5% of adjusted operating revenue, we expect that this figure will linger around 9% in the future. At the same time, interest payments will remain close to its historical average (excluding 2016 and 2017) of 5% of adjusted operating revenue. Around 64% of Minas Gerais' debt service is with the federal government. "At the same time, we do not expect the state to have access to new borrowings, but only those that were already previously authorized. We expect total borrowings for 2018-2020 will be around R$3.4 billion. As a result, Minas' tax-supported debt is expected to gradually decline from 152% of consolidated operating revenue at year-end 2017, to 121% by 2020. In our view, the risk stemming from unfunded pension liabilities in Minas Gerais is rising because they're significantly higher than 50% of our projected operating revenue for 2018, and we expect fiscal pressures on the budget to increase in the next few years. "Higher debt service payments and prolonged after-capex deficits will continue to pressure liquidity levels. We estimate that the state will have no free cash to cover its projected R$6.9 billion debt service for the next 12 months. We expect that the state will nevertheless continue servicing it debt on time, at the expense of delaying salary payments and accumulating debt to suppliers. Although we expect Minas to access previously authorized borrowings in the next few years, we continue to assess its access to external liquidity as limited. This assessment incorporates Brazil's Banking Industry Country Risk Assessment (BICRA) of '6'. We believe that its access to external financing will remain restricted given Brazil's weak economy and the federal government's current fiscal belt-tightening. "We estimate that the state's GDP per capita was $8,532 for 2017, lower than Brazil's $9,895. Minas Gerais' economy generated 8.7%, or R$519.3 billion, of the national GDP in 2015, according to the latest data available from the Brazilian Institute of Geography and Statistics. Brazil's economy grew 1% in 2017 while Minas' economy expanded 0.6%. Going forward, we forecast that the Brazilian economy will post slow growth over the next several years; in 2018 Brazil's economy is likely to grow 2.4%, which is also our base case for Minas Gerais. Most of the state's economy is based on the services sector, which accounts for a 58% share, while the industrial sector makes up 33%, and agriculture 9%. Minas Gerais' mining sector is the second-largest in the country, after Rio de Janeiro." Minas Gerais has moderate contingent liabilities, the largest of which stems from several state-owned companies including Companhia Energetica de Minas Gerais - CEMIG (B/Positive/--) and Banco de Desenvolvimento de Minas Gerais S.A. - BDMG (B-/Stable/--), which we consider self-supporting. In addition to these entities, Minas GerSais has ten public-private partnerships (PPPs) and we incorporate the contingent liabilities stemming from these in our analysis. If the contingent liabilities stemming from its self- supporting entities and PPPs were to materialize, they would represent less than 15% of the state's operating revenues in 2017. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Ratings Affirmed Minas Gerais (State of) Issuer Credit Rating Global Scale B-/Stable/-- Brazil National Scale brB+/Stable/-- PETROLEO BRASILEIRO: Offers Rights in Onshore, Offshore Fields -------------------------------------------------------------- Ana Mano at Reuters reports that Brazil's state-run oil company Petroleo Brasileiro said it initiated the sale of 50 percent of production and exploration rights in offshore fields Tartaruga Verde and a section of Espadarte, without transfer of operations. Petrobras also said in a separate securities filing it had initiated the process to divest its 100 percent stake in the Bauna field located in the Santos basin, according to Reuters. In yet another filing, Petrobras said it began the binding phase for sale of exploration and production rights in two onshore oilfields called Riacho da Forquilha e Miranga, the report notes. PETROLEO BRASILEIRO: Moody's Hikes CFR to Ba2; Outlook Stable ------------------------------------------------------------- Moody's Investors Service upgraded the corporate family rating of Petroleo Brasileiro S.A. (Petrobras) to Ba2 from Ba3. The rating action was triggered by Moody's affirmation on April 9, 2018 of Brazil's government bond rating at Ba2, with the outlook changed to stable from negative. The action on Petrobras' ratings also reflects the company's continued success in improving its liquidity position and reducing debt leverage. Simultaneously, Moody's raised the company's baseline credit assessment (BCA) to ba3 from b1. The rating outlook is stable. Debt List: Issuer: Petrobras Global Finance B.V. -- Gtd. Senior Unsecured Shelf, Upgraded to (P)Ba2 from (P)Ba3 -- Gtd. Senior Unsecured Regular Bonds/Debentures, Upgraded to Ba2 from Ba3 -- Outlook, Remains Stable Issuer: Petrobras International Finance Company -- Gtd. Subordinate Shelf, Upgraded to (P)Ba3 from (P)B1 -- Gtd. Senior Unsecured Shelf, Upgraded to (P)Ba2 from (P)Ba3 -- Gtd. Senior Secured Shelf, Upgraded to (P)Ba1 from (P)Ba2 -- Gtd. Senior Unsecured Regular Bonds/Debentures, Upgraded to Ba2 from Ba3 -- Outlook, Remains Stable Issuer: Petroleo Brasileiro S.A. - PETROBRAS -- Corporate Family Rating, Upgraded to Ba2 from Ba3 -- Subordinate Shelf, Upgraded to (P)Ba3 from (P)B1 -- Senior Unsecured Shelf, Upgraded to (P)Ba2 from (P)Ba3 -- Senior Secured Shelf, Upgraded to (P)Ba2 from (P)Ba3 -- Pref Shelf, Upgraded to (P)B2 from (P)B3 -- Outlook, Remains Stable RATINGS RATIONALE Petrobras' upgrade to Ba2 follows the change in Government of Brazil's rating outlook to stable from negative and the affirmation of the Ba2 government's ratings. Moody's rating action on Brazil's government issuer rating reflects the strengths of Brazil's credit profile despite relatively weak fiscal metrics. The sovereign's weak fiscal metrics are balanced against moderately strong economic and institutional factors that are in line with regional and Ba-rated peers, with much lower external vulnerability. For further information, refer to the rating action press release: https://www.moodys.com/viewresearchdoc.aspx?docid=PR_380048 The actions on Petrobras' ratings and BCA reflect the company's continued improvement in its credit metrics and liquidity position, which Moody's expects will remain solid in the foreseeable future. Petrobras has shown discipline in competing profitably in the local fuel market and improving its financial policies. It is particularly noteworthy the company's ability to refinance debt maturities, which has reduced the burden of short- term cash payment commitments. The company has also contracted revolving credit facilities in the amount of $4.35 billion, strengthening its liquidity position. Moody's expects that Petrobras cash generation in the next two years will be more than enough to cover mandatory cash obligations plus annual capital expenditures of about $33.1 billion. Therefore, proceeds from asset sales will help the company to reduce debt and to reach its target of 2.5x net debt to EBITDA before the end of 2018. Solid amount of cash on hands plus revolving credit facilities provide cushion in case legal disputes with investors, related to the Lava Jato investigations, result in large sums in settlements or fines. There is still uncertainty around the SEC and DoJ bribery investigations and the resulting consequences for the company. However, the probability that Petrobras is fined an amount that will significantly and negatively affect its liquidity position has declined. So far, Petrobras has settled with 21 out of 34 individual investors on legal disputes related to the Lava Jato investigation. These settlements facilitated the signing of an agreement in principle to settle the securities class action lawsuit filed in the United States in early 2018. Under the agreement, Petrobras would pay $2.95 billion to resolve investors claims against the company; such amount would be paid within one year. The agreement also sets a benchmark for future fines that could be imposed on the company. Petrobras' ba3 BCA and Ba2 ratings are supported by the company's dominance in the Brazilian oil industry and its importance to the Brazilian economy. Furthermore, the ratings reflect the company's sizeable reserves equivalent to equivalent to over 10 years of life, its renown high technological offshore expertise and potential for continued growth in production over the long-term. However, Petrobras' ratings are constrained by high debt levels, business plan execution risk and, to a lesser extent, potential negative impact from fines related to Lava Jato. Petrobras' Ba2 ratings also consider Moody's joint-default analysis for the company as a government-related issuer. Petrobras' ratings reflect the assumption for moderate support and dependence from the Government of Brazil (Ba2 stable) based on the company's demonstrated ability to lower its liquidity risk and thus reduce the potential need of support, as well as the government's resilient tight fiscal position. Petrobras' liquidity position is good. Historically, the company has held a stable and solid amount of cash on hands, at around $21-25 billion, which was recently strengthened by new committed revolver facilities. Refinancing risk has been declining in the last couple of years given successful liability management efforts, although Moody's estimate that in 2022 the debt maturity amount is significant. The stable outlook on Petrobras' ratings incorporates Moody's view that the company's credit profile will continue to gradually improve in the foreseeable future. Given its strong links with the government of Brazil, an upgrade of Petrobras is unlikely in the short term. Longer term, an upgrade would require further improvement in Petrobras' overall credit metrics and debt maturity profile, as well as continued financial discipline and a stable energy regulatory environment in the country. In addition, an upgrade of Petrobras' ratings would consider Moody's ratings on the government of Brazil. Negative actions on Petrobras' rating could result from a deterioration in operating performance or external factors that increase liquidity risk or debt leverage from current levels. Downgrades could also be prompted if negative developments from the litigations against Petrobras appear to have the potential of significantly affecting the company's liquidity or financial profile or if the rating on the government of Brazil is downgraded. The methodologies used in these ratings were Global Integrated Oil & Gas Industry published in October 2016, and Government-Related Issuers published in August 2017. Petrobras is an integrated energy company, with total assets of $251 billion as of December 31, 2017. Petrobras dominates Brazil's oil and natural gas production, as well as downstream refining and marketing. The company also holds a significant stake in petrochemicals and a position in sugar-based ethanol production and distribution. The Brazilian government directly and indirectly owns about 47.4% of Petrobras' outstanding capital stock and 63.5% of its voting shares. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Unfair Taxes, Business Confidence Survey Says ----------------------------------------------------------------- RJR News reports that nearly half of businesses polled in the latest Quarterly Survey of Business Confidence in Jamaica believe they are unfairly taxed. The results of the survey were released by the Jamaica Chamber of Commerce, according to RJR News. Managing Director of Market Research Services Don Anderson, who conducted the survey, said when taxes levied on businesses in Jamaica were compared to those in other Caribbean markets, the majority of firms were of the opinion that taxes in Jamaica were unfair, the report notes. "Quite understandably, 47 per cent of the businesses interviewed felt that the taxes imposed on them are unfair . . . Thirty-eight 38 per cent believed it's fair. It's something that we will continue to watch," the report quoted Mr. Anderson as saying. The survey also sought to find out whether businesses expected taxes to remain unchanged, the report notes. "We wanted to know whether people felt that there are likely to be further taxes imposed. Fifty-three per cent of businesses hope that there will be no change in the taxes that are imposed on them over the next year. However, 38 per cent expect an increase and eight per cent, expect a decrease," Mr. Anderson said, the report relays. CEOs and senior officers of 100 Jamaican firms island-wide participated in the survey related to current conditions and future expectations of the economy, 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. =========== M E X I C O =========== MEXICO: Violence Cost Country 21% of GDP in 2017, Report Says ------------------------------------------------------------- EFE News reports that violence cost Mexico an amount equivalent to 21 percent of the gross domestic product (GDP) last year, when the country registered the highest number of homicides in two decades, figures released April 10 show. "The total impact of the violence is the equivalent of eight times the country's health budget and seven times the education budget," Institute for the Economy and Peace in Mexico director Carlos Juarez told EFE News. =============== P A R A G U A Y =============== VISION BANCO: S&P Affirms 'B' LT ICR, Maintains Stable Outlook -------------------------------------------------------------- S&P Global Ratings revised its outlook on Banco Regional S.E.A.C.A., and affirmed its 'BB' long-term issuer credit rating on it. In addition, S&P affirmed its 'B' long-term issuer credit rating on Vision Banco S.A.E.C.A. and maintained its stable outlook. S&P said. "We're maintaining our BICRA on Paraguay (BB/Stable/B) at group '8', with an anchor for banks operating in the country at 'bb-'. We're also maintaining our economic and industry risk scores at '8'. However, we're revising the BICRA economic risk trend to stable from negative, while keeping the industry risk trend as stable. "The economic risk trend revision reflects our view that the Paraguayan banking system's asset quality metrics have remained manageable, despite adverse economic conditions in the region and lower commodities prices than the peak of 2012 and 2013. In 2015 and 2016, the banking system's asset quality metrics deteriorated, reflected in higher non-performing loans (NPLs; past-due loans of more than 60 days) and repossessed assets (together with the potential risk to liquidate them), and lower provisions coverage. However, metrics have slightly improved in 2017 given the system's more cautious approach toward lending to the agricultural and livestock sectors. We expect the improvement in metrics at a slower pace in the next 12-24 months, based on slightly higher commodities prices, due to the drought's impact on the neighboring countries, still robust harvest volumes in Paraguay, lower stock of repossessed assets, and manageable credit losses. In this sense, we expect NPLs in the range of 2.6%-3.0% of total loans, nonperforming assets (NPAs), which include repossessed assets and NPLs, of 3.4%-3.7%, and credit losses of 1.6%-1.8%." Nevertheless, certain characteristics of the Paraguayan banking system haven't changed. These include high dollarization, with about 51% of total lending denominated in greenbacks, and banks' exposure to cyclical sectors such as agriculture and livestock, which result in very high credit risk in the economy. S&P said, "We expect Paraguay's annual GDP growth to be around 4% in the next couple of years, with an expected income per capita of $4,398. We also believe that economic imbalances will remain manageable, reflecting a moderate credit expansion, compared with the growth during 2010-2015 that averaged 25.5% in nominal terms, and the absence of asset bubbles. Furthermore, we expect credit growth to be in the range of 8%-10% for the next two years in nominal terms thanks to strengthening economy, favorable prospects for the agriculture sector, and infrastructure projects." S&P said, "We view the BICRA industry risk trend for Paraguay as stable. In December 2016, Congress approved the banking law, which paved the way for adopting Basel II standards and strengthened the central bank's oversight powers. However, we believe that even after the law's full implementation, which will take longer than a year, Paraguay's banking regulations will remain more lax than the international standards. We also forecast continued growth in customer deposits, the main funding source for domestic banks, while their use of external sources of funding to support growth will remain limited in the next few years." ====================== P U E R T O R I C O ====================== CATHOLIC SCHOOL: Bankr. Court Junks Bid for Stay Pending Appeal -------------------------------------------------------------- Judge Enrique S. Lamoutte of the U.S. Bankruptcy Court for the District of Puerto Rico denied Debtor Catholic School Employees Pension Trust's motion for stay pending appeal. Pension Trust filed the motion arguing that: (1) the creditors who sought dismissal of the Debtor's chapter 11 case will proceed to attach and foreclose the totality of Debtor's assets for the benefit of only a fraction of Debtor's creditors or beneficiaries and, consequently, the merits of the appeal will become moot with no possibility of relief in favor of the Debtor; (2) there is "substantial possibility" of success on the merits of the appeal, considering that (a) the court relied on the present business activities of the Trust, after termination, and "failed to consider the trust documents themselves or the decades of business activities that the Trust engaged in"; and (b) the court did not considered how the Trust has the attributes of an "insolvent corporation" or "facts which entered the record uncontested as part of the expert testimony of CPA Luis Carrasquillo"; (3) irreparable harm will occur with the embargo of the trust funds considering that, although the harm is "economic in nature because it relates to a dollar amount, the effect of not protecting it will have a devastating social effect on more than two thousand creditors" and the estate will lack the necessary resources to avoid and recuperate the funds; (4) a balance of hardships to the parties warrant the imposition of the stay since the creditors' interest will be protected by the preservation of the estate; and (5) the public interest is preserved "because the assets will be maximized for the benefit of all pension beneficiaries/creditors as opposed to just a fraction of such creditors that are seeking to attach the funds." On Jan. 11, 2018, the Debtor, Pension Trust, filed a voluntary petition under chapter 11 of the Bankruptcy Code. The bankruptcy case came before the court on March 6, 2018, for an evidentiary hearing to consider the motions to dismiss filed on Feb. 6, 2018, by Ms. Yali Acevedo, Francisco Abreu, and Edda D. Gonzalez-Vazquez. At the conclusion of the evidentiary hearing, the court issued a bench ruling concluding that the Debtor is not a business trust and that the petition be dismissed. Furthermore, on March 13, 2018, the Court entered an Opinion and Order granting the motions to dismiss filed by Beneficiaries/Creditors as the debtor trust did not meet the definition of a corporation pursuant to 11 U.S.C. section 101(9)(A)(v). Courts consider the traditional four-part standard applicable to preliminary injunctions as the standard for a stay pending appeal. The court must consider "(1) whether the applicant has made a strong showing of success on the merits; (2) whether the applicant will be irreparably harmed absent injunctive relief; (3) whether issuance of the stay will injure other parties; and (4) where the public interest lies." In the instant case, the court is not persuaded that the Pension Trust will likely succeed on the merits of the appeal. The Pension Trust argues that the court did not consider the trust documents nor "the decades of business activities that the Trust engaged in." The Debtor states that the court based its reasoning "solely upon the fact that the Trust had been terminated, instead of considering its constitutional documents, former business activities and current maximization of the assets before liquidation," in order to determine that the Pension Trust did not met the requirements of a corporation pursuant to 11 U.S.C section109((A)(9)(v). The Debtor suggests that when the Court followed the rationale of In Re Blanche Zwedling Revocable Living Trust, the court limited its analysis to "the totality of the circumstances based on the trust documents and the actual operation of the Trust," constricting the court's consideration to a "temporal aspect" in relation to the trust's activities after its termination. However, nothing in the Opinion and Order suggests the temporal constriction argued by Debtor. Debtor refers to "decades of business activities" of the trust that the court was unable to corroborate by the trust deed, the pension plan, and the testimony of Debtor's only witness, Dr. Ramon A. Guzman Rivera, President of the Board of Trustees. In order to conclude that the Pension Trust is not a business trust, the court reasoned that: (1) the trust was established to secure payment to beneficiaries, (2) its purpose was to preserve the principal of the contribution made by the employer participants and the interest generated by the principal and (3) the purpose of the trust was not to generate income or profit. None of these conclusions are related to the activities of the trust after termination. The Pension Trust argues that it will suffer irreparable harm if the stay is not granted, as the funds of the trust will be depleted by the Beneficiaries/Creditors in the different state court proceedings. The court is not swayed that the irreparable harm purported by Debtor cannot be corrected or remedied later by an adequate compensation. Additionally, the consignment of the funds at state court do not implicate an imminent depletion of the funds, nor the documents at record suggest an immediate distribution to Beneficiaries/Creditors. Considering that Debtor has failed to satisfy the two critical prongs of the standard for stay pending appeal, the motion is denied. A full-text copy of Judge Lamoutte's Opinion and Order dated March 28, 2018 is available at: http://bankrupt.com/misc/prb18-00108-L11-65.pdf About Catholic School Employees Pension Trust The Catholic School Employees Pension Trust is a business trust duly constituted under the laws of the Commonwealth of Puerto Rico. The Pension Trust filed a Chapter 11 petition (Bankr. D.P.R. Case No. 18-00108) on Jan. 11, 2018. In the petition signed by Ramon Guzman, president of Board of Trustees, the Debtor estimated $1 million to $10 million to $1 million to $10 million in assets and liabilities. The Hon. Enrique S. Lamoutte Inclan presides over the case. Javier Vilarino, Esq., at the Law Firm of Vilarino & Associates, serves as bankruptcy counsel. COLONIAL MEDICAL: Seeks to Expand Scope of 1611 Law Services ------------------------------------------------------------ Colonial Medical Management Corp. has asked the U.S. Bankruptcy Court for the District of Puerto Rico to authorize its bankruptcy counsel 1611 Law and Justice for All, Inc. to provide additional services. The Debtor is in need for additional services not related to bankruptcy matters. The matters not related are before the local court including the Court of Appeals of Puerto Rico, the Supreme Court of Puerto Rico, and before administrative proceedings. The firm will charge $150 per hour for the additional services. For bankruptcy matters, the rate is still $200 per hour, according to court filings. About Colonial Medical Management Corp. Colonial Medical Management Corp. is an ambulatory health care clinic located in Anasco, Puerto Rico. Its practice location is listed as Carretera 402 Km 1.8 Bo. Marias Anasco, Puerto Rico. The Debtor previously sought bankruptcy protection (Bankr. D.P.R. Case No. 14-01922) on March 13, 2014. Colonial Medical sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 17-06925) on Nov. 21, 2017. In the petition signed by Luis Jorge Lugo Velez, its president, the Debtor estimated assets of less than $50,000 and liabilities of $1 million to $10 million. Judge Brian K. Tester presides over the case. Ada Conde, Esq., at 1611 Law and Justice for All, Inc., is the Debtor's bankruptcy counsel. CUPEYVILLE SCHOOL: Court OK's Disclosures; Plan Hearing on May 9 ---------------------------------------------------------------- Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico approved Cupeyville School's disclosure statement to accompany its amended plan filed on March 19, 2018. 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 confirmation of the plan must be filed on/or before 14 days prior to the date of the hearing on confirmation of the Plan. A hearing for the consideration of confirmation of the Plan and of such objections as may be made to the confirmation of the Plan will be held on May 9, 2018 at 9:00 a.m. at the Jose V. Toledo Federal Building and US Courthouse, 300 Recinto Sur Street, Courtroom 3, Third Floor, San Juan, Puerto Rico. Under the Amended Plan, holders of Class 5 - Allowed General Unsecured Claims (excluding those from Debtor's Shareholders), of $75,000 or less, will be paid in full satisfaction of their claims 5% thereof, in cash, on the Effective Date of the Plan. The Holders of Allowed General Unsecured Claims over $75,000, will be paid in full satisfaction of their claims, 5% thereof through 60 equal consecutive monthly installments of $1,602.05, commencing on the Effective Date of Debtor's Plan and continuing on the thirtieth (30th) day of the subsequent fifty-nine (59) months. A full-text copy of the Amended Chapter 11 Plan is available at: http://bankrupt.com/misc/prb15-09822-217.pdf About Cupeyville School Cupeyville School, Inc., is a private, non-sectarian, co-educational college preparatory institution, located at Cupey Bajo, Ra-o Piedras, Puerto Rico. It serves a predominantly Hispanic population offering a learning program for students in grades from Pre Pre-Kinder through 12th grade. It was organized in 1963, responding to the needs of a growing suburban community interested in a bilingual/co-educational learning program. It is accredited by the Middle States Association, the Department of Education of Puerto Rico, and recognized as a School of Excellence by the U.S. Department of Education, Blue Ribbon School of Excellence. It is the only accredited school in Puerto Rico in hands of a Puerto Rican family. It is ranked by the Caribbean Business as fifth of the 28 Largest Private Schools in Puerto Rico (2013-2014). The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 15-09822) on Dec. 12, 2015. The petition was signed by Ricardo Gonzalez, president. The case is assigned to Judge Mildred Caban Flores. At the time of the filing, the Debtor disclosed $7.01 million in assets and $7.25 million in liabilities. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 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 * * *