/raid1/www/Hosts/bankrupt/TCRLA_Public/180523.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, May 23, 2018, Vol. 19, No. 101
Headlines
A R G E N T I N A
ARGENTINA: Franklin Templeton Buys $2.25 Bil. in Argentine Bonds
CLISA-COMPANIA: Fitch Places 'B' FC & LC IDRs on RWN
B R A Z I L
TRIZ VENTURES: Seeks to Hire Zalkin Revell as Attorney
C U B A
CUBANA DE AVIACION: Boeing to Join Mexico in Probe of Plane Crash
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Capital Gets a US$60MM Cable Car
J A M A I C A
UC RUSAL: Russian Billionaire Quits Company Board
M E X I C O
MEXICO: Candidates Propose Measures to Solve Migration Crisis
P U E R T O R I C O
DORADO COMMUNITY: Amended Plan Outline Conditionally Okayed
PUERTO RICO: Looks to Dominican Republic for Agro Reboot
VEGA ALTA: Plan and Disclosure Statement Hearing Set for June 6
T R I N I D A D & T O B A G O
CARIBBEAN AIRLINES: Revenue, Earnings Increase, CEO Says
V E N E Z U E L A
VENEZUELA: Lima Group Refuses to Accept Maduro Victory in Election
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A R G E N T I N A
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ARGENTINA: Franklin Templeton Buys $2.25 Bil. in Argentine Bonds
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The Financial Times Limited reports that Franklin Templeton's
Michael Hasenstab came to Argentina's aid, lending Buenos Aires
more than $2.25 billion (EUR1.9 billion) in a discrete cash
infusion reminiscent of the bond fund manager's support for the
Republic in the wake of the euro zone crisis.
Funds controlled by Mr. Hasenstab, including the flagship $38
billion Templeton Global Bond Fund, snapped up more than three-
quarters of the 73 billion pesos ($3 billion) in "Bote" bonds sold
by Argentina, according to people familiar with the matter, the
report notes.
The Argentine government only "reopened" the Bote bonds maturing
in five and eight years for a sale after being approached by
Franklin Templeton, which was already a big Argentine bondholder,
according to a source close to the deal, reports The Financial
Times Limited.
Argentina had found itself on the ropes this year, with a change
to its inflation target and a central bank rate cut earlier this
year denting confidence in the reformist government led by
president Mauricio Macri, the report discloses. That has sent the
country's currency tumbling to a record low against the dollar,
the report notes.
The report notes that Mr. Hasenstab, the chief investment officer
of Franklin Templeton's global macro team, has earned a reputation
for placing big bets on countries in economic and financial
distress, such as Hungary in the wake of the financial crisis, the
State at the depths of the euro zone crisis, and Ukraine around
the time of its revolution. He reportedly made a EUR5.6 billion
return on the Irish investment, the report discloses.
"Michael Hasenstab is known for making big investments in
countries in trouble," said Bartosz Pawlowski, chief investment
officer at mBank Private Banking in Poland, and former head of
emerging markets strategy at BNP Paribas, the report notes relays.
"This high concentration strategy is a feature of his approach,
but of course it requires excellent grasp of not only the
macroeconomic situation but also the political decisions being
taken by authorities," the report notes.
While Franklin Templeton declined to comment on the Bote sale, Mr
Hasenstab said in a statement: "The current government continues
to demonstrate incredible resolve and skill in giving life back to
an economy that had all but collapsed," the report relays.
He added: "Over the last months some policy errors did occur, as
is common in any reform effort as large as is currently being
undertaken. Importantly, errors were recognized and reversed and
we remain confident the right policies are in place to improve the
economy, (the) welfare of Argentines and the markets," the report
adds.
As reported in the Troubled Company Reporter-Latin America on
May 8, 2018, Fitch Ratings has affirmed Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised
the Outlook to Stable from Positive.
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.
CLISA-COMPANIA: Fitch Places 'B' FC & LC IDRs on RWN
----------------------------------------------------
Fitch Ratings has placed the 'B' Foreign- and Local-Currency
Issuer Default Ratings (IDRs) for CLISA-Compania Latinoamericana
de Infraestructura y Servicios (CLISA) on Rating Watch Negative.
Prior to Fitch's rating action, the Rating Outlook was Stable.
This action affects approximately USD318 million of outstanding
debt rated 'B'/'RR4'.
KEY RATING DRIVERS
Potential Liquidity Deterioration: Benito Roggio e Hijos S.A.
(BRH) is a fully owned subsidiary of CLISA. On May 8, 2018, a
Federal Court in Argentina placed an embargo on ARS 574 million of
BRH's assets. The investigation is related to overpricing a
construction project at Parana de Las Palmas, a drinking water
treatment plant. On May 11, 2018, the company appealed the embargo
and is currently working to replace or limit of the seizure of
BRH's assets.
The company had cash and cash equivalents of ARS 1.5 billion and
short-term debt of ARS 2.4 billion as of March 31, 2018. Fitch's
main credit concern is that the embargo ordered by the Federal
Court combined with reduced access to credit with local banks
could result in deterioration of CLISA's liquidity.
Counterparty Risk & Operating Environment Constrains Ratings: As
CLISA's operations are primarily focused in Argentina, the
company's ratings reflect its exposure to the country's business
climate and economic conditions. CLISA's LC IDR is constrained at
'B' reflecting the fact that the company's main counterparty risk
parties belong to Argentina's public entities and city
governments. More than 65% of the company's cash flow generation,
measured as EBITDA, is concentrated in the public sector. In
addition, the company's revenue structure and FX risk are factored
in its ratings and in the linkage between CLISA's LC and LT IDRs.
As the company's revenues are entirely denominated in local
currency, CLISA's LT IDR is capped at the same level as its LC
IDR.
High Regulatory, Political Risk: CLISA is exposed to the
construction industry's volatility, particularly public works
projects. Its main activities focus on contractual agreements and
government regulations at the federal, provincial and municipal
levels. Approximately 55% of the company's EBITDA is generated in
its waste management business, which includes the urban waste
management (UWM) and landfill segments. The company's UWM serves
the county of San Isidro and important cities such as Buenos
Aires, Santa Fe, and Neuquen. CLISA's main landfill operations are
Norte III in Buenos Aires, Villa Carlos Paz in Corbova, Neuquen,
and Rivadavia in Mendoza. Regulatory risk exposure stems from
lengthy renegotiations in public service contracts. CLISA is also
exposed to possible delays in collection since the public sector
is a major client.
FX Risk Incorporated, Moderate Leverage: CLISA is exposed to
currency mismatch risk, as approximately 85% of its debt is
denominated in foreign currency, while cash generation is
concentrated in Argentine pesos. Positively factored into the
ratings is the company's track record of managing FX risk during
the last several years and maintaining stable operational margins.
Most of the company's contracts contain price adjustment clauses
triggered upon increases in cost structure, primarily driven by
inflation. CLISA's net leverage was 2.9x as of March 31, 2018,
compared with 2.6x at Dec. 31, 2016. Fitch expects net leverage to
remain stable at around 3x during 2018-2019. As of March 31, 2018,
CLISA had total debt of ARS 8.7 billion (USD 435 million), which
consists primarily of USD-denominated unsecured debt.
Market Position and Diversification Factored into Ratings: CLISA's
ratings reflect the company's strong market position as one of
Argentina's largest privately owned conglomerates, supported by
its businesses in various public infrastructure sectors. The
company originates substantially all of its consolidated sales
from its waste management, construction, water supply, and
transportation segments, which represented approximately 55%, 25%,
10%, and 8%, respectively, of the company's annual EBITDA during
2017. The company's two main businesses, the waste management and
construction segments maintain EBITDA margins around 20% and 10%,
respectively. The company's EBITDA margin is expected to be around
14% during 2018-2019.
Recovery Analysis Assumptions: The 'RR4' Recovery Rating reflects
average recovery prospects in the event of default. Fitch assumes
a going-concern scenario in its recovery analysis for CLISA. Fitch
assumes a going-concern enterprise value of ARS10 billion based on
post-default EBITDA of approximately ARS1.6 billion (a 30%
discount from the company's FY2017 EBITDA level of ARS2.3 billion,
and a multiple of 6x. After deducting 10% for administrative
claims, the remaining ARS 9 billion of enterprise value leads to
recovery for CLISA's unsecured debt of 100%.
The recovery performed under this scenario resulted in a recovery
level of 'RR1', consistent with securities historically recovering
91%-100% of current principal and related interest. Because of the
Fitch's 'RR4' soft cap for Argentina, which is outlined in Fitch's
criteria, CLISA's Recovery Rating has been capped at 'RR4',
reflecting average recovery prospects.
DERIVATION SUMMARY
The company's operations are primarily focused in Argentina.
CLISA's ratings reflect an experienced and well-positioned
operator in Argentina's construction sector. The company also
maintains an important business position in Argentina's waste
management industry serving the county of San Isidro and important
cities such as such as Buenos Aires, Santa Fe, Neuquen. CLISA's
credit metrics appear slightly weaker when compared with its main
regional peers.
Fitch views CLISA's EBITDA margin of around 15% during 2016-2017
as somewhat lower than Elementia, S.A.B. de C.V. (BB+/Stable),
Tecnoglass Inc. (BB-/Stable), and Cementos Argos S.A.
(AA+(col)/Stable) with EBITDA margins of 18%, 17% and 19%,
respectively, during the same period. CLISA (annual revenues
around USD884 million) is bigger than Tecnoglass (USD 314
millions) and much smaller than Elementia (USD1.3 billion) and
Cementos Argos (USD2.8 billion).
Fitch views CLISA's leverage as moderate and a credit positive.
Fitch expects the company's leverage, measured as net debt/EBITDA,
to remain around 3x during 2018-2019. This is similar or slightly
stronger than Elementia, Tecnoglass, and Cementos Argos, which are
expected to reach net leverage ratios of 3.5x, 3.4x and 4.1x,
respectively, during the same period.
Cost of funding remains a credit negative for CLISA when comparing
it with peers due to Argentina's macroeconomic environment. In
terms of interest coverage, CLISA's EBITDA/ interest ratio is
anticipated to be around 2.5x during 2018-2019, which is weaker
than expected levels for Elementia (4.1x), Tecnoglass (3.5x), and
Cementos Argos (4.7x), respectively, during the same period.
Fitch views CLISA's credit profile as weaker than U.S. peers in
the waste management industry such as Waste Management Inc.
(BBB+/Stable) and Waste Connection Inc. (BBB/Stable). These
companies are stronger in terms of scale, margins and free cash
flow generation.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
--2018-2019 average annual revenue growth rate around 40%;
--2018-2019 EBITDA margin around 14%;
--Increase in Restricted cash by around ARS 575 million during
2018;
--2018-2019 readily available cash decline consistently to
levels below ARS 1 billion;
--2018-2019 interest coverage ratio consistently below 2.0x.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
--Resolution of the court's order without any material
deterioration in the company's liquidity position;
--An upgrade of the Argentine sovereign rating could trigger a
positive rating action.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
--A downgrade of the Argentine sovereign rating;
--Arising of additional investigations resulting in large legal
fines that would put pressure on the company's liquidity and lead
to reputational damage;
--Deterioration in the company's liquidity position resulting in
readily available cash consistently below ARS 1 billion;
--Significant deterioration of the company's credit metrics
leading to an interest coverage ratio below 1.5x.
FULL LIST OF RATING ACTIONS
Fitch has placed the following ratings on Rating Watch Negative:
CLISA-Compania Latinoamericana de Infraestructura y Servicios
--Long-term foreign-currency IDR 'B';
--Long-term local-currency IDR 'B';
--Unsecured notes 'B'/'RR4'.
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B R A Z I L
===========
TRIZ VENTURES: Seeks to Hire Zalkin Revell as Attorney
------------------------------------------------------
Triz Ventures, LLC, seeks authority from the U.S. Bankruptcy Court
for the Middle District of Georgia to employ Zalkin Revell, PLLC,
as attorney to the Debtor.
The Debtor is also a Respondent in the Involuntary Petition filed
against it on about April 3, 2018 at Case No. 18-10413-aec. No
Order of Relief was ever entered in the Involuntary Case.
Triz Ventures requires Zalkin Revell to:
(1) respond to the Involuntary Case and move to Dismiss same
in light of the filing of the Debtor's voluntary petition
in the bankruptcy case;
(2) give the Debtor legal advice with respect to its powers
and duties as Debtor-in-Possession in the continued
operation of its business and management of its property;
(3) prepare on behalf of the Debtor, as Debtor-in-Possession,
necessary applications, answers, reports, and other legal
papers;
(4) prepare motions, pleadings, and applications, and to
conduct examinations incidental to the administration of
the Debtor's estate;
(5) take any and all necessary action instant to the proper
preservation and administration of the estate;
(6) assist the Debtor-in-Possession with the preparation and
filing of a Statement of Financial Affairs and Schedules
and Lists as may be necessary and appropriate;
(7) take whatever action is necessary with reference to the
use by the Debtor of its property pledged as collateral,
including cash collateral, to preserve the same for the
benefit of the Debtor;
(8) assert, as directed by the Debtor, all claims the Debtor
has against others; and
(9) perform all other legal services to the Debtor as Debtor-
in-Possession which may be necessary; and it is necessary
for Debtor-in-Possession to employ attorneys for such
professional services.
Zalkin Revell will be paid at the hourly rate of $300.
The Debtor paid the pre-petition sum of $40,0000 as a Pre-Petition
Retainer, of which $1,717.00 was utilized for the payment of the
filing fee and $8,130 was utilized for pre-petition services,
leaving a balance of $30,153.
Zalkin Revell will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Kenneth W. Revell, partner of Zalkin Revell, PLLC, 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 Debtor and its estates.
Zalkin Revell can be reached at:
Kenneth W. Revell, Esq.
ZALKIN REVELL, PLLC
2410 Westgate Dr., Suite 100
Albany, GA 31707
Tel: (229) 435-1611
Fax: (866) 560-7111
E-mail: krevell@zalkinrevell.com
About Triz Ventures, LLC
TRIZ Ventures, LLC is a multinational company engaged in
producing, procuring, processing and international trading of
peanuts, tree nuts, edible oils and other foodstuffs, satisfying
the most demanding global markets. Triz Ventures has diversified
its business to major countries like USA, Brazil, Mexico, The
Netherlands, India, Singapore, South Africa, Benin, Vietnam and
China. Visit https://trizventures.com for more information.
TRIZ Ventures, LLC, based in Albany, GA, filed a Chapter 11
petition (Bankr. M.D. Ga. Case No. 18-10489) on April 24, 2018.
The Hon. Austin E. Carter presides over the case. Kenneth W.
Revell, Esq., at Zalkin Revell, PLLC, serves as bankruptcy
counsel.
In its petition, the Debtor estimated $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. The petition
was signed by Dhawal Raste, manager.
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C U B A
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CUBANA DE AVIACION: Boeing to Join Mexico in Probe of Plane Crash
-----------------------------------------------------------------
Santiago Perez and Anthony Harrup at The Wall Street Journal
report that U.S. and Mexican aviation experts are joining an
investigation of the crash of a Boeing 737 charter flight outside
Havana that killed more than 100 people, Cuban authorities said,
as allegations emerged that the airline had previously been warned
about safety violations.
Cuban authorities have identified the remains of 20 of the 110
victims of the crash while a team of local and foreign
investigators focused on the possible causes of the disaster and
the operations of the Mexican company that owned the plane, which
crashed shortly after takeoff on a flight to the eastern Cuban
city of Holguin, according to The Wall Street Journal.
The report notes that the only survivors of the crash, three women
passengers, are in critical condition at the Calixto Garcia
Hospital in central Havana, while the remains of the first
identified victims were being delivered to relatives in Holguin,
authorities said.
The Boeing 737-200 crashed in a field and burst into flames
shortly after taking off from the Havana airport, the report
relays. Cuba's transport minister, Adel Yzquierdo, said 110 of
the 113 passengers and crew were killed, the report notes.
Authorities said five children were among the victims identified
over the weekend, and that identification of the dead could take
days, the report says.
Cuban officials said that following a request from U.S.
authorities, a team from Boeing Co. would be permitted to join the
investigation, the report discloses. Boeing has said a technical
team stood ready to assist at the direction of U.S. and Cuban
authorities, the report notes.
Mexican investigators are already participating in the probe
because the aircraft, built in 1979, was leased by Mexican charter
airline Aerolineas Damojh to flagship carrier Cubana de Aviacion,
which has an aging fleet and has recently taken many of its planes
out of service, the report relays.
"We will provide all the necessary assistance so they can do their
job," Mr. Yzquierdo told Cuban state media, the report says.
Aerolineas Damojh was responsible for maintenance and operation of
the aircraft, Mr. Yzquierdo said, the report notes. "We had
rented this plane less than a month ago. We keep all the
documentation which shows that the crew was certified and fit," he
added.
Mr. Yzquierdo said Cubana de Aviacion was leasing aircraft from
foreign companies in part because the U.S. embargo against the
Communist island hindered the state-owned carrier's ability to buy
planes, the report says.
The Mexican government said it would carry out a new audit of the
airline's operations to determine if it was meeting regulations,
and to gather information that could help identify the cause of
the crash, the report relays.
The airline was inspected in November and found to be following
proper maintenance procedures, the Communications and Transport
Ministry said, the report notes. Before the crash, Damojh, set up
in 1990, had three planes, two Boeing 737-300s and the 737-200,
the report says.
Marco Aurelio Hernandez, a pilot who worked for Damojh from 2005
to 2013, told Mexico's Milenio newspaper that he had repeatedly
reported maintenance problems to the owner, including engine
trouble and electrical system failure, the report discloses.
Airline officials declined to comment on the assertion, the report
relays.
Mr. Hernandez said he had worked before with Jorge Luis Nunez, the
captain the ill-fated flight, the report says.
The report notes that Guyana's director of civil aviation, Egbert
Field, told the Associated Press that the plane that crashed had
been barred from the South American country's airspace last year
because its crews had been allowing overloading of luggage on
flights to Cuba.
Authorities recovered a flight recorder from the destroyed
aircraft, the report relays. Its charred debris was scattered
across a field near Santiago de las Vegas, a rural village some 12
miles south of Havana's city center, the report says.
Investigators are likely to look initially into whether both
engines were operating as expected and whether movable panels on
the wings were deployed to help the plane climb during takeoff,
the report notes.
Mr. Yzquierdo, the transport minister, said the recovered cockpit
recording device was in good condition and that he hoped a second
flight recorder would also soon be recovered, the report
discloses. The flight recorders, known commonly as black boxes,
keep flight data and cockpit communications and can help
investigators determine the cause of accidents, the report notes.
The cockpit-voice recorder is the least important of the recorders
on the plane, according to experts, the report says. The flight-
data recorder, which captures pilot commands and operation of
onboard systems including engines, is more likely to provide
relevant clues, the report relays. Initial readouts of black
boxes in good condition takes only hours in the U.S., but could
take longer elsewhere, or if they are damaged, the report notes.
The data are likely to show if both engines were working, how fast
the plane was flying and whether the sharp turn reported by
authorities shortly before the plane crashed was commanded, the
report adds.
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D O M I N I C A N R E P U B L I C
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DOMINICAN REPUBLIC: Capital Gets a US$60MM Cable Car
----------------------------------------------------
Dominican Today reports that a new era in collective public
transport begins with the inaugural of Santo Domingo's cable car
system that will link the northern part of Greater Santo Domingo
with the National District and benefits around 300,000 commuters
in some 30 neighborhoods.
Two years and five months after the start of construction
president Danilo Medina will cut the ribbon on the cable car
during a ceremony at in the northern-most station, Sabana Perdida,
according to Dominican Today.
The work, coordinated by several government agencies, will be
managed by the public-private consortium, URBE and was built by
the French Conglomerate Pomo, at a cost of around RD$3.0 billion
(US$60 million), the report notes.
As reported in the Troubled Company Reporter-Latin America on
April 23, 2018, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable.
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J A M A I C A
=============
UC RUSAL: Russian Billionaire Quits Company Board
-------------------------------------------------
RJR News reports that Russian billionaire Oleg Deripaska has quit
the board of UC Rusal in a bid to free the company from crippling
US sanctions.
UC Rusal is the operator of the Windalco alumina refinery in
Jamaica, according to RJR News.
Mr. Deripaska had agreed to cede control to help the company
escape sanctions imposed by the Donald Trump administration that
severely limit its ability to do business, the report notes.
He resigned as president of UC Rusal earlier this year but
remained on the board as a non-executive director, the report
notes.
UC Rusal's parent company -- EN Plus -- voted to accept Mr.
Deripaska's resignation from the board and to back a new rescue
plan, the report relays.
Mr. Deripaska's departure is expected to be the start of sweeping
changes to come, the report relays.
The US drafted the latest round of sanctions in response to what
it said were Russia's malign activities, the report adds.
As reported in the Troubled Company Reporter-Latin America on
April 18, 2018, Fitch Ratings revised the Rating Watch on
Russia-based aluminium company United Company Rusal Plc's Long-
Term Issuer Default Rating (IDR) of 'BB-', Short-Term IDR of
'B' as well as Rusal Capital D.A.C.'s senior unsecured rating of
'BB- '/'RR4' to Negative from Evolving. Fitch simultaneously
withdrew all the ratings.
===========
M E X I C O
===========
MEXICO: Candidates Propose Measures to Solve Migration Crisis
-------------------------------------------------------------
EFE News reports that the four candidates in Mexico's presidential
elections held a televised debate, during which each proposed
measures to improve the conditions of migrants' origin communities
to resolve the problem of mass migration to the United States.
Independent candidate Jaime Rodriguez Calderon proposed dedicating
five percent of the MXN580 billion ($29 billion) that migrants
living in the US send annually to Mexico to improve the situation
of Mexican families, according to EFE News.
======================
P U E R T O R I C O
======================
DORADO COMMUNITY: Amended Plan Outline Conditionally Okayed
-----------------------------------------------------------
Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico conditionally approved Dorado Community
Health Inc.'s amended disclosure statement filed on April 7, 2018.
Acceptances or rejections of the Amended Plan may be filed in
writing by the holders of all claims on/or before 14 days prior to
the date of the hearing on confirmation of the Plan.
Any objection to the final approval of the Amended Disclosure
Statement and/or the confirmation of the Amended 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 the final approval of the
Amended Disclosure Statement and the confirmation of the Amended
Plan and of such objections as may be made to either will be held,
for cause, on June 6, 2018 at 9:00 A.M. at the U.S. Bankruptcy
Court, Jose V. Toledo U.S. Post Office and Courthouse Building,
300 Recinto Sur Street, Courtroom 3, Third Floor, San Juan, Puerto
Rico.
The Troubled Company Reporter previously reported that the monthly
payment to unsecured creditors under the plan has been reduced to
$83.33.
A full-text copy of the Amended Disclosure Statement is available
at:
http://bankrupt.com/misc/prb17-01565-11-96.pdf
About Dorado Community Health, Inc.
Dorado Community Health Inc., filed a Chapter 11 bankruptcy
petition (Bankr. D.P.R. Case No. 17-01565) on March 7, 2017,
disclosing under $1 million in both assets and liabilities. The
Debtor is represented by Jaime Rodriguez Perez, Esq. at Hatillo
Law Office.
The Debtor hired Fuertes & Fuertes Law Office, as counsel; and
Julio Borges-Alvarado, as accountant.
Acting United States Trustee, Guy G. Gebhardt, filed a Notice of
Appointment before the U.S. Bankruptcy Court for the District of
Puerto Rico naming Edna Diaz De Jesus as the Patient Care
Ombudsman for Dorado Community Health, Inc.
PUERTO RICO: Looks to Dominican Republic for Agro Reboot
--------------------------------------------------------
Dominican Today reports that Dominican Republic's agriculture
minister, Osmar Benitez, received a commission from Puerto Rico's
Agriculture Department led by his counterpart Carlos Flores
Ortega, to resume socioeconomic relations and bolster the
neighboring island's productive potential.
The initiative also seeks to exchange knowledge in agro, execute
training agreements for technicians from both countries, as well
as encourage Puerto Rico's business community to invest in farm
production in their country, according to Dominican Today.
The report notes that Mr. Benitez stressed that the local
authorities are willing to collaborate, providing all the support
and experience in some sectors of the country, which are key for
Puerto Rico's agro development.
"This initiative will open doors to projects that will favor not
only Puerto Rican agriculture, but will set a precedent for new
commercial contracts with the Dominican Republic, sponsoring
business investment," the official said, the report relays.
"Puerto Rico is a millionaire country, it's a rich country, which
has excellent soil conditions, water availability, an ideal
microclimate to make that nation a great producer of food, it only
depends on the will, and there is a will," he said, the report
notes.
Flores
"I am pleased with the work plan that has been established with
Minister Benitez, who is giving us a hand with the resumption of
dialogue with local agricultural authorities, in order to learn
about the new technologies implemented in the agricultural and
livestock production of this nation," the report quoted Mr. Flores
as saying.
He said as a result of the damages caused by hurricanes Irma and
Maria, Puerto Rico needs to acquire good coffee seeds and learn
about the different rice projects, good quality bananas, cocoa,
vegetables and production in a controlled greenhouse environment,"
Mr. Flores said, the report adds.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ("PROMESA").
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst &
Youngis the Board's financial advisor, and Citigroup Global
Markets Inc. is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
Bondholders' Attorneys
Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet,
Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund
Group, comprised of mutual funds managed by Oppenheimer Funds,
Inc., and the First Puerto Rico Family of Funds, which
collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and
other bonds issued by Puerto Rico and other instrumentalities.
White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch
Alternative Capital LP.
Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.
Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).
Committees
The U.S. Trustee formed a nine-member Official Committee of
Retirees and a seven-member Official Committee of Unsecured
Creditors of the Commonwealth. The Retiree Committee tapped Jenner
& Block LLP and Bennazar, Garcia & Milian, C.S.P., as its
attorneys. The Creditors Committee tapped Paul Hastings LLP and
O'Neill & Gilmore LLC as counsel.
VEGA ALTA: Plan and Disclosure Statement Hearing Set for June 6
----------------------------------------------------------------
Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico conditionally approved Vega Alta Community
Health, Inc.'s amended disclosure statement dated April 7, 2018.
Acceptances or rejections of the Amended Plan may be filed in
writing by the holders of all claims on/or before 14 days prior to
the date of the hearing on confirmation of the Plan.
Any objection to the final approval of the Amended Disclosure
Statement and/or the confirmation of the Amended 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 the final approval of the
Amended Disclosure Statement and the confirmation of the Amended
Plan and of such objections as may be made to either will be held,
for cause, on June 6, 2018 at 9:00 A.M. at the U.S. Bankruptcy
Court, Jose V. Toledo U.S. Post Office and Courthouse Building,
300 Recinto Sur Street, Courtroom 3, Third Floor, San Juan, Puerto
Rico.
The Troubled Company Reporter previously reported that the Debtor
amended the disclosure statement to clarify the Internal Revenue
Service's administrative, secured and priority values in
accordance with the most current balance.
A copy of the Amended Disclosure Statement is available at:
http://bankrupt.com/misc/prb16-08128-11-154.pdf
About Vega Alta
Vega Alta Community Health, Inc., provides primary medical
services to the residents of Vega Alta and nearby areas.
The Debtor, based in Catano, Puerto Rico, filed a Chapter 11
petition (Bankr. D.P.R. Case No. 16-08128) on Oct. 11, 2016.
Jaime Rodriguez Perez, at Jaime Rodriguez Law Office, PSC, serves
as bankruptcy counsel. In its petition, the Debtor listed $25,582
in assets and $1.47 million in liabilities. The petition was
signed by Luis M Gonzalez Bermudez, president.
================================
T R I N I D A D & T O B A G O
================================
CARIBBEAN AIRLINES: Revenue, Earnings Increase, CEO Says
--------------------------------------------------------
Trinidad Express reports that new Caribbean Airlines Limited Chief
Executive Officer Garvin Medera said that the airline is doing
significantly better in terms of revenue and profitability than
last year.
Speaking at the launch of enhanced economy seats on some CAL
aircraft at Hangar 10 in Piarco, Mr. Medera said: "By now, I hope
you are all aware of our first quarter results, and that CAL is
off to an excellent start for 2018," according to Trinidad
Express.
The report notes that he told the audience: "In what is considered
to be traditionally our toughest quarter, revenue was up 21 per
cent and earnings 64 per cent better. We saw a stronger demand
for both passengers and the cargo customers, helping to more than
offset the 14 per cent increase in fuel prices. Solid progress,
but be assured that work continues apace on our strategic plan to
take us from one quarter success to five years of success."
Caribbean Airlines Limited -- http://www.caribbean-airlines.com/
-- provides passenger airline services in the Caribbean, South
America, and North America. The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods. In addition, it operates a duty
free store in Trinidad. Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.
As reported in the Troubled Company Reporter-Latin America on
November 2, 2015, RJR News said that Michael DiLollo, Chief
Executive Officer of Caribbean Airlines Limited has quit after
just 17 months on the job. The 48-year-old Canadian national,
citing personal reasons, resigned with immediate effect. His
resignation was accepted by the airline's board of directors. Mr.
DiLollo was appointed Caribbean Airlines CEO in May 2014,
following the sudden resignation of Robert Corbie in September
2013.
In early February 2015, Larry Howai, then Finance Minister, told
Parliament that unaudited accounts for 2014 showed the airline
made a loss of US$60 million, inclusive of its Air Jamaica
operations, and the airline planned to break even by 2017.
Mr. Howai told the Parliament that a five-year strategic plan had
been completed and was in the process of being approved for
implementation.
In an interview with the Trinidad & Tobago Guardian in early
November 2015, Mr. DiLollo said CAL did not need a bailout just
yet. Mr. DiLollo said the airline had benefited from extremely
patient shareholders for years and he believed the airline was
=================
V E N E Z U E L A
=================
VENEZUELA: Lima Group Refuses to Accept Maduro Victory in Election
------------------------------------------------------------------
The Latinx Today reports that the nations of the Lima Group
disclosed that they do not accept the results of Venezuela's
presidential election and have decided to reduce their diplomatic
relations with that country.
The statement, released by the Peruvian Foreign Ministry,
announced that countries of the group "will call their ambassadors
to Caracas home for consultations and will summon Venezuela's
ambassadors to express" their dissent, according to The Latinx
Today.
They also repeated "their concern about the political, economic,
social and humanitarian crisis that has degraded life in
Venezuela," adding that this situation "is reflected in the
massive migration of Venezuelans," the report notes.
They will therefore present a new resolution on the Venezuelan
situation before the Organization of American States (OAS), the
report relays.
The statement ended by saying that the Lima Group "will continue
to follow the development of the situation in Venezuela for the
purpose of adopting additional measures that are suitable, either
individually or collectively, for the restoration of the rule of
law and democratic order in that country," the report adds.
As reported in the Troubled Company Reporter-Latin America on
March 13, 2018, Moody's Investors Service has downgraded the
Government of Venezuela's foreign currency and local currency
issuer ratings, foreign and local currency senior unsecured
ratings, and foreign currency senior secured rating to C from
Caa3. Concurrently, the foreign currency senior unsecured medium
term note program has also been downgraded to (P)C from (P)Caa3.
The outlook has been changed to stable from negative.
***********
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.
.
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