/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/180627.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, June 27, 2018, Vol. 19, No. 127 Headlines A R G E N T I N A ARGENTINA: General Strike Cripples Transportation SUPERCANAL SA: Seeks US Recognition of Argentine Restructuring B E R M U D A TEEKAY OFFSHORE: Fitch Gives 'B' IDR & Rates New $500MM Notes 'B' TEEKAY OFFSHORE: S&P Assigns B+ CCR & Rates $500MM Unsec. Notes B TEEKAY OFFSHORE: Moody's Assigns B3 CFR & Rates $500MM Notes Caa2 B R A Z I L RUMO SA: Fitch Hikes Issuer Default Ratings to BB, Outlook Pos. C H I L E CORPGROUP: Morales & Besa in Debt Renegotiation M E X I C O MEXICO: Debt Capital Markets Top US$8 Billion in April and May P U E R T O R I C O BKH ACQUISITION: S&P Raises CCR to 'CCC+', Then Withdraws Rating DORADO COMMUNITY: Court Confirms Amended Reorganization Plan RENT-A-CENTER INC: S&P Puts 'CCC+' CCR on CreditWatch Positive RENT-A-CENTER INC: Moody's Puts B2 CFR on Review for Downgrade TRAILER VAN: Plan, Disclosure Statement Hearing Set for Aug. 22 T R I N I D A D & T O B A G O GULF INSURANCE: A.M. Best Affirms BB Finc'l. Strength Rating V E N E Z U E L A VENEZUELA: Investor Group Says Creditors Must Be Treated Equally - - - - - ================= A R G E N T I N A ================= ARGENTINA: General Strike Cripples Transportation -------------------------------------------------- The Latin American Herald reports that the third 24-hour general strike launched by Argentina's CGT labor federation took effect early Monday, with protesters paralyzing the nation's major cities, especially Buenos Aires, which remains without public transportation. Strikers blocked the capital's main thoroughfares demanding changes in President Mauricio Macri's economic policy and rejecting the "brutal austerity" measures that the International Monetary Fund (IMF) has imposed in exchange for providing Argentina with a $50 billion stand-by credit line, according to The Latin American Herald. Since midnight, buses in major cities have not been in service and the Buenos Aires metro system and commuter trains are not operating, while most domestic and international flights have been cancelled, the report notes. Commercial transportation of goods also came to a halt, as well as operations at banks, hospitals -- except to treat emergencies -- and public schools, the report relays. Despite the strike, taxi drivers are still working since the National Taxi Drivers Federation declined to participate in the protest, the report discloses. The report relays President Macri's administration turned to the IMF last month as the Argentine peso continued to plunge against the dollar despite the Central Bank's decision to boost the benchmark interest rate to 40 percent. The prospect that the IMF -- associated by many in Argentina with the 1998-2002 depression that saw the economy contract by 20 percent -- will again have a major say in economic policy has increased the sense of grievance among government opponents already unhappy about growing poverty and massive increases in utility rates, the report adds. As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings, on June 4, 2018, affirmed its 'B+' long-term sovereign credit ratings on the Republic of Argentina. The outlook on the long-term ratings remains stable. On May 8, 2018, Fitch Ratings 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 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. SUPERCANAL SA: Seeks US Recognition of Argentine Restructuring -------------------------------------------------------------- Supercanal S.A. filed a Chapter 15 petition to seek U.S. recognition of its corporate restructuring proceedings in Argentina. Supercanal S.A. is a corporation (sociedad anonima) organized and operating under the laws of Argentina. Its business, which is conducted through various subsidiaries, consists primarily of the installation operation and development of cable television and data cable transmission. Supercanal is a major provider of television and broadband services in Argentina and its operations and subscribers are located in Argentina. On March 29, 2000, the Debtor, together with certain affiliated entities, filed petitions commencing the Concurso before the Argentine Court in order to obtain protections afforded under Argentine law and to restructure their obligations. The majority of the Debtor's obligations are governed by Argentine law with the exception of certain financial obligations which are governed by New York law including the U.S. $300 million 11.5% senior notes due 2005 issued pursuant to a New York law governed indenture dated as of May 13, 1998, by and among Supercanal Holding S.A. and Supercanal S.A., as issuers, and The Bank of New York, as Trustee, Registrar and Paying Agent (the "Indenture"). The Argentine Court admitted the petitions and ordered the commencement of the Concurso on April 19, 2000. Upon commencement of a Concurso, an automatic statutory stay arises staying all other actions or proceedings against the debtor or its property during the pendency of the Concurso. On Nov. 4, 2005, the Reorganization Plan was filed before the Argentine Court. The Reorganization Plan involved a corporate restructuring of the group pursuant to which Supercanal Holding S.A., which was an issuer under the 2005 Notes and the former parent company of the Debtor, merged into the Debtor. The Restructuring Plan also provided for the restructuring and capitalization of the Debtor's unsecured obligations (including the 2005 Notes) into shares of a newly formed parent company. On Nov. 21, 2005, evidence of consent to the Reorganization Plan by the requisite threshold of unsecured creditors under Argentine Insolvency Law was filed before the Argentine Court. The Argentine Court first endorsed the Reorganization Plan on December 26, 2007. The Reorganization Plan was then subject to appeals by certain secured creditors. Without detailing the appellate history with respect to the challenges to the Reorganization Plan and further endorsements issued by the Argentine Court with respect thereto, upon the withdrawal of the last remaining appeal on March 10, 2015, the last Endorsement Order with respect to the Reorganization Plan which was entered on March 3, 2011 became final as of Dec. 28, 2011 (the date the Endorsement Order was confirmed by the Argentine National Court of Appeals). Jennifer C. DeMarco, of Clifford Chance US LLP, counsel to Eduardo Marcelo Vila, foreign representative of Supercanal, explains that pursuant to Argentine Insolvency Law, the endorsement of a reorganization plan results in the discharge of all prepetition unsecured claims (which are replaced by the obligations assumed under the reorganization plan) and an endorsed reorganization plan extends to all prepetition unsecured creditors whose claims have been verified or admitted, whether or not they have participated. Therefore, according to Ms. DeMarco, upon the Endorsement Order for the Reorganization Plan becoming final, the rights of the Debtor's prepetition unsecured creditors to receive payment under their original claims was replaced by operation of Argentine Insolvency Law with the obligations assumed by the Debtor under the endorsed Reorganization Plan. The Debtor's Reorganization Plan provides, among other things, for the exchange of the 2005 Notes for Class A Shares in Supercablecanal S.A. ("Supercablecanal"), a newly formed parent company of the Debtor. Supercablecanal is a corporation (sociedad anonima) organized and operating under the laws of Argentina and owns 99.99% of the Debtor. Eduardo Marcelo Vila and Carlos Esteban Cvitanich were appointed as agents in connection with implementation of certain steps under the Reorganization Plan including the creation of Supercablecanal and the delivery of Supercablecanal's Class A Shares in exchange for the 2005 Notes pursuant to the Reorganization Plan. Pursuant to the Reorganization Plan, the 2005 Notes have no further force or effect and the sole right granted under the Plan with respect to the 2005 Notes is the right to exchange them for Supercablecanal's Class A Shares. Further, under Argentine law, the statute of limitation for the delivery of the Notes in exchange for the Class A Shares is five years, following which holders who have not delivered their Notes in exchange for the Class A Shares will have no further ability to do so, and the corresponding Class A Shares will be either cancelled, distributed pro-rata among the other holders of the Class A Shares at the time outstanding or sold, at the discretion of Supercablecanal. Any 2005 Notes not exchanged in accordance with the Reorganization Plan by such time will be cancelled and terminated. The 2005 Notes were issued in the form of registered notes in global form. The 2005 Notes were issued in the name of Cede & Co., as nominee of the Depository Trust Company ("DTC") and the global certificates deposited with the Bank of New York Mellon, in its capacity as Trustee under the Indenture governing the 2005 Notes, as custodian for DTC. The 2005 Notes continue to be registered in the name of Cede & Co. and deposited in the DTC system. In addition, the 2005 Notes continue to be held in trust in New York with The Bank of New York Mellon. Because the 2005 Notes are held through custody accounts with independent brokers and custodians, the Debtor is unable to independently verify all of the identities of the beneficial owners of the 2005 Notes (such brokers, nominees, custodians and DTC participants that hold the 2005 Notes in "street name" on behalf of beneficial owners, together with the Trustee and DTC, are hereinafter referred to as "U.S. Intermediaries"). On June 1, 2018, notice regarding the exchange and procedures was provided to the holders of the 2005 Notes through the DTC system. The 2005 Notes may be delivered for exchange for the Class A Shares through the DTC's system until Sept. 21, 2018 (the "DTC Exchange"). The Trustee with respect to the 2005 Notes will act as exchange agent to receive the 2005 Notes during the DTC Exchange. Upon receipt of the 2005 Notes by the Trustee, the Debtor will then cause the Class A Shares to be registered and delivered directly to the holders. Thereafter, the DTC's system may not be available for delivery of the 2005 Notes and holders wishing to exchange them for the Class A Shares will have to contact the Debtor. The Class A Shares will continue to be available for exchange until expiration of the five year statute of limitations, which expires on June 30, 2022. One of the purposes for seeking the Chapter 15 petition is to provide comfort to the Trustee for the 2005 Notes regarding its authority to take necessary ministerial steps in connection with the exchange including canceling the 2005 Notes upon expiration of the statute of limitations. The Foreign Representative commenced the Chapter 15 Case to seek the assistance of the U.S. Bankruptcy Court to give effect in the United States to the Reorganization Plan and the Endorsement Order, to eliminate the risk of litigation in the United States by any creditor in contravention thereof, and to permit the orderly implementation of the Reorganization Plan. About Supercanal S.A. Supercanal S.A. is a corporation (sociedad anonima) organized and operating under the laws of Argentina. Its business, which is conducted through various subsidiaries, consists primarily of the installation operation and development of cable television and data cable transmission. Supercanal is a major provider of television and broadband services in Argentina and its operations and subscribers are located in Argentina. On March 29, 2000, the Debtor, together with certain affiliated entities, filed petitions commencing the Concurso before the Argentine Court in order to obtain protections afforded under Argentine law and to restructure their obligations. On Nov. 4, 2005, a reorganization plan for Supercanal was filed before the Argentine Court. Eduardo Marcelo Vila and Carlos Esteban Cvitanich were appointed as agents in connection with implementation of certain steps under the Reorganization Plan. Supercanal S.A., through foreign representative Eduardo Marcelo Vila, filed a Chapter 15 petition (Bankr. S.D.N.Y. 18-11869) on June 21, 2018. The Hon. Martin Glenn oversees the case. Clifford Chance US LLP is the U.S. counsel to the Debtor. ============= B E R M U D A ============= TEEKAY OFFSHORE: Fitch Gives 'B' IDR & Rates New $500MM Notes 'B' ----------------------------------------------------------------- Fitch Ratings has assigned a first-time Long-Term Issuer Default Rating (IDR) of 'B' to Teekay Offshore Partners, L.P. (TOO) and a senior unsecured rating of 'B'/'RR4' to TOO's proposed $500 million notes offering supposedly to be launched in mid-June 2018. The ratings for the unsecured notes reflect Fitch's expectations for an average recovery at the higher end of the 30% to 50% range for the debt security in the event of default. The Rating Outlook is Stable. TOO's ratings reflect the expected stability of earnings and cash flows supported by long-term, fixed-fee contracts with creditworthy counterparties, and the critical nature of the infrastructure that the company provides through its shuttle tankers and floating production and storage offloading (FPSO) operations to deepwater oil and gas operators, as well as the partnership's leading industry position. This stability is offset by high leverage and significant structural subordination of partnership-level debt to first-lien secured debt in vessels and unsecured debt at both its ring-fenced subsidiary, Teekay Shuttle Tankers LLC, and its other operating subsidiaries. This introduces a risk that performance difficulties leading to cash flow disruptions or an inability to refinance vessel mortgages could adversely impact the partnership's liquidity. The ratings consider the partnership's growth capital expenditures over the next three years of between $250 million to $350 million annually, which will require meaningful funding; however, this is somewhat offset by the significantly decreased distribution payout to limited partners. The ratings also acknowledge the presence of two supportive sponsors in Teekay Corporation and Brookfield Asset Management, which provide material operational and financial benefits to the partnership, through its GP revolving credit facility and equity contributions over the past several years. There are concerns about the partnership's liquidity needs to pay committed capital expenditures, meet principal repayments of maturing debt and associated debt service of extant obligations, meet existing quarterly distributions on outstanding common and preferred units, to pay dry docking expenditures, and fund a working capital deficit. These concerns are mitigated by the proposed transaction to retire the unsecured bonds coming due in 2019 with the new proposed five-year unsecured note. However, Fitch acknowledges the partnership's secured vessel debt requires significant principal amortizations every year, and an inability to secure new long-term contracts on its mortgaged FPSO's or shuttle tankers could prevent refinancing and present an additional claim on liquidity. The ratings consider that the primary operating risk TOO's inability to secure additional long-term contracts after expiration, or that the timing between contracts endangers liquidity to meet operating needs or debt service or principal repayments as they come due. The structural subordination compounds this risk. However, positive industry tailwinds and relationships with investment-grade counterparties are considered to be factors to potentially uplift the credit profile through signing of additional long-term, fixed-fee contracts on vessels coming off-hire, offset by a certain amount of execution risk around re-contracting and refinancing. Operating concerns also include the potential for underperformance at TOO's towage, floating accommodation unit (FAU) and conventional tanker segments weighing on EBITDA growth and delaying leverage improvement. KEY RATING DRIVERS High Leverage: Leverage at the partnership is expected improve in 2018 relative to 2017, but remain high. Fitch expects leverage, inclusive of a $200 million shareholder promissory note and 50% equity treatment of its existing preferred equity divided by Consolidated Operating EBITDA inclusive of cash distributions from non-consolidated JV's (only operating distributions, and excluding one-time financing distributions), of between 5.5x and 5.9x in 2018 and 2019, improving to below 5.5x in 2020 and beyond. While an improvement from 2017 year-end results, leverage nevertheless remains elevated for the level of business risk. Structural Subordination: TOO's capital structure has a significant amount of secured debt at the vessel level, and at its ring-fenced subsidiary Teekay Shuttle Tankers, LLC. As such, partnership-level debt is structurally subordinate to roughly $2.7 billion in subsidiary level debt. The structurally superior debt largely encumbers 50 of a total of 63 vessels, and holds a first- lien secured interest in those vessels. Additionally, the partnership receives distributions from two non-consolidated, off- balance sheet joint ventures, Libra and Itajai, which have large debt obligations. Operating performance difficulties or cash flow disruptions at the operating vessels could negatively impact TOO's ability to service its obligations at the partnership level. High but Declining Capital Needs: TOO expects to decrease its growth capital spending over the next three years of about $250 million to $350 million annually, and Fitch expects limited distribution growth over the next several years. Additionally, the new note issuance is expected to refinance TOO's upcoming 2019 unsecured U.S. baby bond and NOK bond maturities. Fitch views this strategy as supportive of long-term credit profile improvement. The partnership is expecting to refinance much of its upcoming secured debt maturities and obligations at the vessel level, which Fitch believes TOO will be able to accomplish given the contracted nature of its assets; however, the ratings do acknowledge near- term execution risk on these secured refinancings. Supportive Sponsorship: Fitch believes that Brookfield Business Partners, L.P. and Teekay Corporation, Inc. represent supportive sponsors of TOO. Both owners are expected to provide both operational and financial benefits to TOO, as evidenced by equity investments of $610 million and $30 million in 2017, the repurchasing and cancellation of two expensive series of preferred units in the same year, and the extension of a committed $125 million GP revolver to TOO to enhance the partnership's liquidity. Contracted Cash Flows: Fitch expects the partnership to have relatively stable earnings and cash flows in the near to intermediate term supported by its long-term, fixed-fee contracts on its shuttle tankers, floating storage and FPSO operations. TOO's earnings are primarily generated from its two largest business segments in FPSO's and shuttle tankers, which together comprise critical, unreplaceable operational linkage in the ultra- deepwater (UDW) offshore oil and gas industry. TOO benefits from size and scale relative to other offshore services companies operating in this segment, with one of the largest fleets of shuttle tankers and as one of the larger operators of FPSO's in the offshore industry. Furthermore, the partnership's main counterparties at Petrobras and Royal Dutch Shell are expected to continue to operate in and make significant capital investments in their offshore assets. High Near-term Funding Needs: TOO's primary liquidity needs for the remainder of 2018 and 2019 are to pay existing, committed capital expenditures, to make scheduled repayments of long-term secured vessel debt, to pay debt service costs, to make quarterly distributions on outstanding common and preferred units, to pay operating expenses and dry docking expenditures, and to manage a working capital deficit. As at March 31, 2018, TOO's total future contractual obligations for vessels, newbuildings and committed conversions were estimated to be $609.3 million, consisting of $101.3 million (remainder of 2018), $225.5 million (2019) and $282.5 million (2020). Of this $609 million of future contractual obligations, TOO's have $9.5 million held in escrow as funding for the Petrojarl I FPSO project, with a remaining requirement of $600 million mainly related to four shuttle tanker newbuildings. Fitch expects TOO will remain FCF negative as these newbuilds are completed. DERIVATION SUMMARY TOO is the only MLP shipping company that Fitch currently rates. From an operating perspective, TOO's shuttle and FPSO segments compare to midstream pipeline transportation and gathering and processing assets. Roughly 66% of TOO's revenue is contracted under intermediate to long-term contracts with investment grade counterparties. This compares favorably to several of Fitch rated high yield (BB-/B & IDR) rated G&P names where investment grade counterparty exposure ranges from 40% to 80%. TOO's consolidated operations are supported by long-term take-or-pay contracts, with some volumetric risks for an mid-range rated average contract life of 8.2 years for its FPSO business (inclusive of JVs) and 7.7 years for its shuttle tanker business. As such, TOO's contract tenor, earnings and cash flow stability profile compares favorably to higher rated midstream energy peers, such as Boardwalk Pipeline Partners, LP (BWP; BBB-/Stable). However, TOO is structurally subordinate to a significant amount of operating subsidiary level debt both on a secured and unsecured basis, similar to Energy Transfer Equity, LP (ETE; BB/Stable) and Williams Company (BB+/RWP), but with leverage on a consolidated basis and parent only basis forecast to be significantly higher than those entities and other more highly rated peers with structural subordination considerations, without some of the offsetting cash flow stream diversity that ETE and WMB possess. Additionally, TOO has provided guarantees and has cross default language to its subsidiary level debt that ETE and WMB do not. TOO's leverage is high with yearend leverage of 5.5x - 5.8x expected for 2018 which is above Fitch's 5.0x 'BB' median metric guidance for midstream issuers, but closer in line to 6.0x 'B' median metric guidance. KEY ASSUMPTIONS -- FAU segment performance consistent with recent history. -- Utilization of towage segment remains low, with steady day rates. -- Utilization of shuttle tanker COA pool in the North Sea to remain consistent with historical performance. -- Major contracts with FPSO's and associated shuttle tankers, Knarr, Voyaguer, Petrojarl I, and Varg remain on-contract, or are able to re-contract according to management expectations and current negotiations, reflecting improving FPSO market fundamentals. -- $500 million New Note Issuance pushes out parent-level maturities until 2023. -- TOO successfully refinances its major FPSO and shuttle tanker vessel-level debt after signing of new contracts. Recovery Rating Assumptions In its recovery analysis, Fitch utilized a going-concern analysis, with a 6.0x EBITDA multiple for the recovery analysis. Reorganization multiples can vary widely based upon the level of deepwater operator activity upon emergence, as well as company specific factors that led to restructuring, including full-cycle cost positions, loss of long-term contracts, untenable capital structures, or debt-funded M&A activity. There have been a limited number of bankruptcies and reorganizations within the midstream sector. Two recent gathering and processing bankruptcies of companies (Southcross Holdings LP and Azure Midstream Partners, LP) indicate an EBITDA multiple between 5.0x and 7.0x, by Fitch's best estimates. Additionally, in its recent Bankruptcy Case Study Report "Energy, Power and Commodities Bankruptcy Enterprise Value and Creditor Recoveries" published March 2018, the median enterprise valuation exit multiple for the 29 Energy cases for which this was available was 6.7x, with a wide range. Fitch assumed a mid-cycle going concern EBITDA of roughly $450 million for Teekay Offshore Partners L.P. and a default post 2020 driven by the loss through non-renewal or cancellation of one or several of its long-term FPSO contracts, leading to long-periods of lay-up or inactivity coupled with lack of demand on the secondary market for resale to generate liquidity. This in turn may leave the partnership unable to access the capital markets to refinance certain obligations as they come due. The senior unsecured obligation at the partnership is structurally subordinate to almost $2 billion in secured vessel and ShuttleCo debt, which results in a rating of 'B'/'RR4', reflecting expectation for average recovery prospects between 30% - 50%. RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action: -- Consolidated leverage (Consolidated debt inclusive of shareholder loan and 50% equity treatment of preferred equity divided by Consolidated Operating EBITDA inclusive of cash distributions from non-consolidated JVs) below 5.5x on a sustained basis; -- Successful contracting for redeployment of Varg or Ostras FPSO vessels. Developments that May, Individually or Collectively, Lead to Negative Rating Action: -- Consolidated Leverage sustained above 6.0x; -- Inability to refinance existing secured maturities; -- Sustained inability to re-contract expiring FPSO or Shuttle charters. LIQUIDITY Liquidity Manageable Following Issuance: TOO has commitments for 4 newbuild shuttle tankers of $576 million through 2020. The company is expected to finance this spend primarily by mortgaging the new vessels with term loans at the vessel-owning subsidiaries. At the corporate level, TOO has access to a GP revolver due 3Q19 with Teekay Corporation and Brookfield, of which $125 million is committed. ShuttleCo has access to a $600 million secured revolver due 2021, which is fully drawn. Post-transaction, Fitch anticipates that excluding asset-level term loan principal amortizations TOO will have sufficient liquidity to meet its long- term debt obligations, make current distributions, and invest in working capital. On March 31, 2018, TOO entered into an unsecured credit agreement with Teekay Corporation, Inc. and Brookfield, of up to $125.0 million ($25.0 million committed by Teekay Corporation and $100.0 million by Brookfield) and is currently fully drawn. The revolving credit facility matures on Oct. 1, 2019. The interest payments on the revolving credit facility are based on LIBOR plus a margin of 5.00% per annum until March 31, 2019 and LIBOR plus a margin of 7.00% per annum for balances outstanding after March 31, 2019. Any outstanding principal balances are due on the maturity date. The revolving credit facility contains covenants that require TOO maintain a minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) in an amount equal to the greater of $75.0 million and 5.0% of TOO's total consolidated debt. Additionally, there is a $40 million secured revolving credit facility secured by 3 vessels and guaranteed by TOO that is fully drawn as of March 31, 2018 and matures in April 2019. This facility has the same liquidity covenants. At March 31, 2018, the Partnership was in compliance with these covenants. Similarly, the ShuttleCo revolver requires ShuttleCo to maintain a minimum liquidity in an amount equal to the greater of $35 million and 5% of ShuttleCo's consolidated debt, a minimum debt service coverage ratio of 1.2x and a total capitalization ratio of no greater than 75%. The ShuttleCo revolver is collateralized by first priority mortgages granted on 18 of ShuttleCo's vessel and by a negative pledge by 2 additional vessels, but not mortgaged. The total amount available under the secured revolving credit facilities reduces by $90.6 million (remainder of 2018), $124.4 million (2019), $100.0 million (2020), $100.0 million (2021), and $175.0 million (2022). Maturities high but spread between segments: On a segmented basis, TOO's maturity schedule is manageable. Its debt service requirements are backed by long-term contracts at the mortgaged vessels. These obligations are serviced prior to any upstream distributions being made to intermediate holdco's and parent entities. Vessel newbuilding costs are often financed upfront by mortgaging the vessel and its associated contract. The vessel can refinance its mortgage by signing a new long-term contract. Additionally, the mortgaging of the vessels often have high loan amortization requirements, which accounts for a large amount of the principal due in each year for TOO's subsidiaries. At the TOO- level, the company is dependent on the upstream distributions from its vessel-owning subsidiaries in order to service its debt and refinance current obligations. On a pro-forma basis as a result of the transaction, TOO will push out its parent level maturities until 2025, which Fitch views as more manageable. FULL LIST OF RATING ACTIONS Teekay Offshore Partners, L.P. -- Long-Term IDR 'B'; -- Senior Unsecured Notes: 'B'/'RR4'. TEEKAY OFFSHORE: S&P Assigns B+ CCR & Rates $500MM Unsec. Notes B ----------------------------------------------------------------- S&P Global Ratings assigned its 'B+' corporate credit rating to master limited partnership Teekay Offshore Partners L.P. The outlook is stable. S&P said, "We also assigned our 'B' issue-level rating and '5' recovery rating to TOO's planned $500 million senior unsecured notes due 2023. The '5' recovery rating indicates that lenders can expect modest (10%-30%; rounded estimate: 15%) recovery in the event of a payment default. "Our 'B+' corporate credit rating on TOO reflects our assessment of a fair business risk profile and an highly leveraged financial risk profile. TOO is a midstream service provider to the offshore oil production industry. The partnership generates the majority of its revenue through multiyear fixed-rate contracts for processing, storage, and offloading of crude oil using floating production storage and off-loading (FPSO) units and for the transportation of crude oil using shuttle tankers. We expect the partnership's FPSO and shuttle tanker segments to represent about 80%-90% of overall EBITDA on an annual basis. "The stable outlook on Teekay Offshore Partners L.P. (TOO) reflects our expectation that the partnership will maintain relatively stable operations. The partnership's FPSO segment has substantially all of its revenue under fixed-rate take-or-pay contracts. In addition, the partnership's Shuttle Tanker segment has approximately 70% of its revenue under fixed rate take-or-pay contracts as well. We expect the partnership to maintain adjusted debt to EBITDA of about 5.75x over in 2018 and 2019. "We could lower TOO's ratings if leverage increased to above 6x on a sustained basis. This could occur if the partnership is not successful in re-contracting expiring contracts or if the partnership adopts a more aggressive financial policy than we currently expect. We could also consider a negative rating action if the partnership's liquidity materially deteriorated. "We do not view a positive rating action as likely in the near term. However, we could raise the ratings if the partnership maintained adjusted debt to EBITDA below 4.5x on a sustained basis. This could occur if the partnership maintained a more conservative financial policy." TEEKAY OFFSHORE: Moody's Assigns B3 CFR & Rates $500MM Notes Caa2 ----------------------------------------------------------------- Moody's Investors Service assigned Teekay Offshore Partners L.P. a B3 Corporate Family Rating, SGL-3 Speculative Grade Liquidity Rating and a Caa2 senior unsecured rating to the proposed $500 million notes issue. The rating outlook is stable. This is the first time Moody's has rated Teekay Offshore. Proceeds from the proposed notes offering will be used to repurchase Teekay Offshore's outstanding $300 million notes due 2019 and the 2019 Norwegian Kroner Bonds ($128 million outstanding at March 31, 2018). Assignments: Issuer: Teekay Offshore Partners L.P. Speculative Grade Liquidity Rating, Assigned SGL-3 Corporate Family Rating, Assigned B3 Senior Unsecured Regular Bond/Debenture, Assigned Caa2 Outlook Actions: Issuer: Teekay Offshore Partners L.P. Outlook, Assigned Stable RATINGS RATIONALE Teekay Offshore (B3 CFR) is challenged by significant amortization payments and term loan maturities that must be funded with vessel refinancing or the sale of obsolete vessels; contract renewal risk with three FPSO and several shuttle tanker contracts expiring through 2020; concentration risk with one customer (Royal Dutch Shell), largely under one contract that makes up over half of FPSO EBITDA, and a majority of EBITDA coming from the North Sea. Teekay Offshore is supported by the stable and contracted nature of its cash flow; high barriers-to-entry for competing FPSOs in long lived fields; strong shuttle tanker market position in the North Sea; and solid leverage (debt to EBITDA about 5.3x) and coverage (EBITDA to interest about 2.2x) in 2018 and 2019. The $500 million senior unsecured notes are rated Caa2, reflecting the almost $2 billion of prior ranking secured debt. Teekay Offshore's liquidity is adequate (SGL-3). Teekay Offshore has total cash sources of about $650 million to fund $790 million of uses. At March 31, 2018 and pro forma for the notes issuance, the company will have about $250 million of cash and an undrawn $125 million unsecured revolving credit facility due October 31, 2019 (fully drawn at June 22, 2018). Moody's expects the company will also have committed financing to fund its new shuttle tanker build out. Moody's expects Teekay Offshore to generate about $100 million of positive free cash flow to Q3 2019, but scheduled amortization and debt maturities are expected to be about $790 million. Moody's believes Teekay Offshore's ability to comply with its liquidity covenant, that states the company must maintain $75 million of total liquidity or 5% of total debt (roughly $150 million), is less certain. The company also has a track record of selling obsolete vessels and refinancing loans on its existing vessels, which Moody's expects will continue and will fund the liquidity shortfall. The stable outlook reflects Moody's expectation that the company will be able to fund its liquidity shortfall through vessel refinancing and asset sales, and that leverage and coverage will remain steady. The ratings could be upgraded if the company did not need to rely on vessel refinancing to support liquidity and if interest coverage moves towards 3x and debt to EBITDA is around 5x. The ratings could be downgraded if liquidity is weak or if EBITDA to interest moves towards 1.5x. The principal methodology used in these ratings was Midstream Energy published in May 2017. Teekay Offshore Partners L.P. is a Marshall Islands limited partnership with headquarters in Bermuda and executive offices in Stavanger and Trondheim, Norway. Teekay Offshore is an international provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the offshore oil industry. =========== B R A Z I L =========== RUMO SA: Fitch Hikes Issuer Default Ratings to BB, Outlook Pos. --------------------------------------------------------------- Fitch Ratings has upgraded Rumo S.A's Long-Term (LT) Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) to 'BB', from 'BB-'. Fitch has also upgraded its unsecured bonds due in 2024 and 2025, which were issued by Rumo Luxembourg S.a.r.l., to 'BB'. At the same time, Fitch upgraded Rumo, its subsidiaries and the respective unsecured debentures' National Scale Long-Term ratings to 'AA(bra)', from 'A(bra)'. The Rating Outlook for the LC IDR and the National Scale ratings remains Positive. The outlook of the FC IDR was revised to Stable from Positive, as Fitch expects the FC IDR to be constrained by Brazil's 'BB' Country Ceiling in the event of an upgrade of the LC IDR. The rating action is supported by the consistent increase on Rumo's scale due to its ongoing capex program, which has resulted in solid operating margins expansion and boosted operating cash flow generation. These factors, combined with the cash provided by a BRL2.6 billion capital injection during 2017, have significantly strengthened Rumo's capital structure. The positive FCF trend from 2019 onwards and the expectation of continued robust liquid position were key considerations in maintaining the Positive Outlook for the national scale and LC IDR. The ratings are supported by the high predictability of Rumo's cash flow generation due to its solid business position as one of the largest operators of railroads in Brazil. Fitch sees as credit positive Rumo's affiliation with the Cosan Group (Cosan Limited; FC LT IDR 'BB'/Stable Outlook), which provides reasonable financial flexibility to the company, illustrated by its capital injections. KEY RATING DRIVERS Operating Performance Improvements: Rumo grew load volumes and raise its operating profitability significantly over the past few years. As of March 2018, the company transported 51 million of Revenue Ton Kilometer (RTK), which compares favorably versus 50 million in 2017 and 41 million, in 2016. During this time period expanded to 47.4% from 46.3% in 2017 and a proforma 40.5% in 2016. Fitch expects margins to remain above 47% in 2018 and then to reach around 50% in 2019. Combined with these factors, the reduction in interest expenses should push FFO margin to more than 25% in 2018. Conservative Credit Metrics: Fitch expects Rumo's capital structure to continue improving, supported by the consistent operating cash flow expansion. The BRL2.6 billion capital injection received in April 2017 accelerated the capital structure improvement as it helped Rumo reduce net debt/EBITDA to 2.5x in 2017 from 4.5x in 2016 and 5.2x in 2015. Through cash flow improvement, Rumo's net leverage metric is expected to reach levels close to 2.0x by 2019. The ability of the company to continue to lengthen its debt amortization schedule and finance its capex by issuing long-term and low-cost debt has also enhanced the company's financial profile. FCF Turns Positive in 2019: Fitch projects that Rumo's EBITDA and FFO will reach BRL2.9 billion and BRL1.8 billion, respectively, in 2018, increases from BRL2.8 billion and BRL1.1 billion in 2017. FCF is expected to be negative by BRL450 million in 2018 due to BRL2.0 billion of capex. After this growth capex tapers off, FCF should turn positive in 2019, reaching an estimated BRL500 million. Robust FCF levels of above BRL1.0 billion is likely if Rumo continues to grow volumes by 10% per year. The early renewal of Rumo Malha Paulista S.A.'s concession contract, which will mature in 2028, does not have rating implications as it does not result in material capex increases. Business Profile Remains Strong: Rumo enjoys a solid business position as the sole railroad transportation operator in the south and mid-western regions of Brazil, areas with high growth potential due to stable demand for grains worldwide. Rumo's businesses rely on four rail concessions to operate railway lines that extend over approximately 12,000 kilometers within Brazil, with access to three main Brazilian ports. Due to its cost structure, Rumo's businesses enjoy solid competitive advantages over the truck services. This factor enhances its consistent demand and limits volume volatilities over the cycles. The company will continue to expand its businesses within the industry by concluding the aggressive capex plan to add capacity to its operations over the next two years. Credit Linkage Incorporated: The ratings of Rumo and its subsidiaries are equalized due to strong operational, financial and legal ties among them. The strong operating synergies, the centralized cash management, the cross guarantees between the main debt permit the credit profile to be analyzed in a consolidated basis and the ratings to be the same. DERIVATION SUMMARY Rumo ratings derive from its strong business profile in the logistics infrastructure industry in Brazil, which enjoys positive perspectives. The railroad low-cost structure and Rumo's position as the sole railroad provider in its cover region provides important competitive advantages to the company, allowing it to report consistent volume improvements and increasing operating cash flow generation while its capacity expands. A ratings constraint is its business exposure to Brazil's operating environment as its operations rely on agribusiness and industrial logistics only in that region, like most of its Brazilian peers, but different from other railroads worldwide, which enjoys a more diversified covered region. The past financial efforts to reduce the company's leverage and increase its liquidity are considered sustainable over the medium term and are important credit factors that support Rumo's ratings. Rumo's ratings are positioned below Brazil's MRS S.A., rated 'AAA(bra)'/'BBB-'/Stable, which is the best positioned railroad in the country, because of its consistent operating cash flow generation, flat operating margins, positive FCF, low leverage and sound liquidity. Rumo's rating is constrained by its still- negative FCF, derived from its large investment programs. Rumo's and MRS's ratings are below those of other mature, more geographically diversified and less leveraged rail companies in Mexico, the U.S. and Canada, which are generally rated in the mid 'BBB' to low 'A' range. Rumo's operating margins are in line with Brazilian peers but are below levels achieved by railroads in the Northern hemisphere. Rumo's 'BB' rating is in line with that of Hidrovias do Brasil S.A. (HdB, 'BB'/Stable Outlook), due to the negative FCF both companies are generating due to investments. Although HdB's net leverage is higher than Rumo's, the long-term contracts of HdB supports its consistent and predictable cash flow generation. This factor is expected to result in fast deleverage of HdB's balance sheet in the next two to three years. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- 8% to 10% of volume increases per year from 2018 and 2019. -- Tariff increase by inflation in 2018 and 2019. -- EBITDA of BRL2.9 billion in 2018 and BRL3.5 billion in 2019. -- BRL2.0 billion capex in 2018 and BRL5.0 billion capex from 2019 to 2021. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Net adjusted leverage trends below 2.0x, on a sustainable basis; -- Maintenance of strong liquidity and positive debt refinancing schedule -- Consistent Positive FCF trends. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action Fitch may revise Rumo's rating outlook to Stable, from Positive, in case: -- Delaying on reporting positive FCF -- EBITDA margins trend below 50% -- Inability of Rumo's net debt/EBITDA to reach levels below 2.5x in sustainable basis LIQUIDITY Sound Liquidity: The capital injection of BRL2.6 billion and the extension of medium-term debt maturity during 2017 and 1Q18 strengthened Rumo's liquidity significantly. As of March 31, 2018, the company reported cash position of BRL3.6 billion, which covered short-term debt of BRL1.1 billion by 2.1x. Fitch understands Rumo's liquidity is adequate and sustainable in the long-term, considering the financial flexibility the company has presented to finance part of its capex plan. The company is expected to use part of its current cash to repay high-cost and middle-term debt and operating cash flow generation to finance part of the ongoing investments, while new long-term debt are sought. The loan to be provided by Banco Nacional de Desenvolvimento Economico e Social (BNDES), to reimburse the last investment projects, is likely to rebuild the cash. FULL LIST OF RATING ACTIONS Rumo S.A. -- Foreign Currency Issuer Default Rating (IDR) upgraded to 'BB', from 'BB-'; -- Local Currency Issuer Default Rating (IDR) upgraded to 'BB', from 'BB-'; -- National Scale Long-Term Rating upgraded to 'AA(bra)', from 'A(bra)'. Rumo Luxembourg S.a.r.l.: -- Senior unsecured notes due 2024 and 2025 upgraded to 'BB, from 'BB-'. Rumo Malha Norte S.A. -- National Scale Rating upgraded to 'AA(bra)', from 'A(bra)'; -- BRL166.67 million 6th debentures issuance maturing in 2018 upgraded to 'AA(bra)' from 'A(bra)'; -- BRL160 million 8th debentures issuance maturing in 2020 upgraded to 'AA(bra)' from 'A(bra)'. Rumo Malha Sul S.A. -- National Scale Rating upgraded to 'AA(bra)', from 'A(bra)'. Rumo Malha Paulista S.A. -- National Scale Rating upgraded to 'AA(bra)', from 'A(bra)'. The Outlook for the LC IDR and the National Scale ratings remains Positive. The outlook of the FC IDR was revised to Stable, from Positive, as Fitch expects the FC IDR to continue constrained by Brazil's 'BB' Country Ceiling. ========= C H I L E ========= CORPGROUP: Morales & Besa in Debt Renegotiation ------------------------------------------------ Luis Bulcao Pinheiro at Latin Lawyer reports that Morales & Besa has helped Banco Credito de Inversiones amend the terms of some US$99 million in debt owed by financial holding company CorpGroup. =========== M E X I C O =========== MEXICO: Debt Capital Markets Top US$8 Billion in April and May -------------------------------------------------------------- Fredrik Karlsson at Latin Lawyer reports that twelve Mexican and seven international firms worked on 19 debt capital markets deals for Mexican companies in April and May, raising US$8.1 billion. Almost one third of the deals (six out of 19) were in banking and financial services, raising US$1.3 billion in total, according to Latin Lawyer. There were four deals in the real estate sector that raised US$221 million in debt, the report notes. ====================== P U E R T O R I C O ====================== BKH ACQUISITION: S&P Raises CCR to 'CCC+', Then Withdraws Rating ---------------------------------------------------------------- S&P Global Ratings raised its corporate credit rating on Puerto Rico-based BKH Acquisition Corp. (BKH) to 'CCC+' from 'CCC-'. The outlook is stable. S&P said, "Subsequently, we withdrew our corporate credit rating on BKH Acquisition Corp. at the issuer's request because it has refinanced its capital structure and no longer requires credit ratings under its new credit agreements." "At the same time, we withdrew our 'CCC-' issue-level rating on the company's $10 million first-lien revolver due 2018 and $110.5 million first-lien term loan due 2019 and our 'C' issue-level rating on its $64.3 million pay-in-kind (PIK) second-lien term loan because they have been repaid." The upgrade reflects the company's improved liquidity after addressing the near-term maturities of its entire capital structure. The refinancing transaction has altered our prior view that the company would be unable to refinance its entire capital structure ahead of its maturities because it continues to face very challenging economic conditions in Puerto Rico, which were worsened by the arrival of Hurricane Maria late in 2017. The stable outlook on BKH at the time of the withdrawal reflected our expectation that the company would maintain sufficient liquidity to meet its obligations during the next 12 months under its new capital structure. It also reflected our belief that it would maintain an adequate and sufficient cushion under its financial covenants over the next 12 months. We are no longer maintaining surveillance on the company following the repayment of its rated debt. DORADO COMMUNITY: Court Confirms Amended Reorganization Plan ------------------------------------------------------------ Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico approved Vega Dorado Community Health Inc.'s amended disclosure statement and confirmed its amended plan of reorganization dated April 7, 2018. The Troubled Company Reporter previously reported that the amended plan modified the treatment of Class 4 general unsecured creditors. On the consummation date, the entire Class 3 claimant will receive from the Debtor a non-negotiable, non-interest bearing promissory note, dated as of the Effective Date, providing for a total amount of $5,000 which will be payable in consecutive monthly installments of $83.33 during a period of five years, starting on the Effective Date; with a monthly pro-rata distribution among all members of this Class. 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. RENT-A-CENTER INC: S&P Puts 'CCC+' CCR on CreditWatch Positive -------------------------------------------------------------- S&P Global Ratings placed all of its ratings, including the 'CCC+' corporate credit rating on Plano, Texas-based Rent-A-Center Inc. on CreditWatch with positive implications. The CreditWatch placement follows RCII's announcement that it will be acquired by Vintage Capital for $15 per share in cash, representing a total consideration of $1.365 billion, including net debt. S&P said, "We believe RCII's credit quality will improve following the transaction given our belief that its existing capital structure will be refinanced at the close of the transaction, which is expected to occur by the end of 2018. This includes addressing the company's revolver, which is now current given its March 2019 maturity. Although financing details have not yet been disclosed, we expect RCII's liquidity to strengthen from current levels and its pro forma capital structure to be sustainable." S&P said, "We expect to resolve the CreditWatch when we obtain more details about the financing plans and after we assess RCII's pro forma capital structure and credit protection metrics. We anticipate the ratings will be raised at the close of the transaction. Alternatively, we would reassess our corporate and issue-level ratings on RCII should the transaction fail to close." RENT-A-CENTER INC: Moody's Puts B2 CFR on Review for Downgrade -------------------------------------------------------------- Moody's Investors Service placed Rent-A-Center, Inc.'s B2 Corporate Family Rating, B2-PD Probability of Default rating, Ba2 Senior Secured Credit Facilities ratings, and B3 Senior Unsecured debt ratings on review for downgrade. Rent-A-Center's SGL-3 Speculative Grade Liquidity rating remains unchanged. The Company's ratings Outlook was changed to Ratings Under Review from Negative. The rating action follows Rent-A-Center's announcement that it has agreed to be acquired by Vintage Rodeo Parent, LLC, an affiliate of private equity firm Vintage Capital Management, LLC, for $15.00 per share in cash. The transaction represents an estimated total enterprise value of around $1.4 billion, including Rent-A-Center's net debt outstanding as of March 31, 2018, or around 21.8x trailing twelve month EBITDA. The transaction is expected to close by the end of 2018, subject to customary closing conditions including the receipt of stockholder and regulatory approvals. "While Rent-A-Center appears to be making progress with its strategic turnaround plan, it is still in the early stages and has yet to prove sustainable," stated Moody's retail analyst, Mike Zuccaro. "We believe this transaction will likely result in meaningfully higher debt and leverage, along with weaker interest coverage, post transaction." Rent-A-Center, Inc. Ratings placed under review for downgrade: - Corporate Family Rating, currently B2 - Probability of Default Rating, currently B2-PD - Senior Secured Credit Facilities, currently Ba2 (LGD2) - Senior Unsecured Notes, currently B3 (LGD4) Rating unchanged: - Speculative Grade Liquidity Rating, SGL-3 Outlook action: - Changed to Rating Under Review from Negative RATINGS RATIONALE The review for downgrade will focus on the Company's capital structure and leverage profile post completion, as well as ongoing impact from turnaround efforts and potential cost savings initiatives on its future operating performance. Rent-A-Center's credit facilities and notes are governed by various change of control provisions and events of default. For the Company's notes, the change in control language also includes an offer to purchase the notes with cash equal to 101% of the principal amount plus accrued interest. Rent-A-Center, Inc., with headquarters in Plano, Texas operates the largest chain of consumer rent-to-own stores in the U.S. with approximately 3,500 company operated stores and kiosks located in the U.S., Canada, Mexico and Puerto Rico. Rent-A-Center also franchises approximately 225 rent-to-own stores that operate under the "Rent-A-Center," "ColorTyme" and "RimTyme" banners. Revenue approached $2.7 billion for the twelve month period ended March 31, 2018. TRAILER VAN: Plan, Disclosure Statement Hearing Set for Aug. 22 --------------------------------------------------------------- Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico conditionally approved Trailer Van Corp.'s amended disclosure statement filed on June 1, 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 the final approval of the Disclosure Statement and/or the 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 the final approval of the Disclosure Statement and the confirmation of the Plan will be held on August 22, 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. As reported by the Troubled Company Reporter on June 12, 2018, under the latest plan, a settlement agreement was reached with creditor Jacqueline Pietri Torres. Under the agreement, two land properties, which are assets of debtor's estate, are to be transferred to the creditor in full payment of its credit. A full-text copy of the Amended Disclosure Statement is available at http://bankrupt.com/misc/prb16-07655-11-89.pdf About Trailer Van Corp. Headquartered in Carolina, Puerto Rico, Trailer Van Corp. filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16- 07655) on Sept. 27, 2016, estimating its assets at up to $50,000 and its liabilities at between $100,001 and $500,000. Fausto David Godreau Zayas, Esq., at Godreau & Gonzalez Law serves as the Debtor's bankruptcy counsel. In June 1979, Frank Sanfilippo Sr. and his partner Peter Uscinowicz founded Trailer Van Corp., under the concept of bringing into the Island of Puerto Rico a mean of storage and mobile office trailer. ================================ T R I N I D A D & T O B A G O ================================ GULF INSURANCE: A.M. Best Affirms BB Finc'l. Strength Rating ------------------------------------------------------------ A.M. Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "bb" of Gulf Insurance Limited (Gulf) (Trinidad and Tobago). The outlook of these Credit Ratings (ratings) remains negative. The rating actions reflect Gulf's balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The rating actions also reflect A.M. Best's concerns surrounding the continuing political, economic and financial challenges faced by Gulf's parent, Assuria N.V. (Assuria), in its domicile of Suriname, and the potential adverse impact on Gulf and its balance sheet as a result of any weakening of Assuria's financial position. Gulf maintains strong capitalization and benefits from being domiciled in Trinidad and Tobago, and the regulatory safeguards provided by the Central Bank of Trinidad and Tobago. The strong balance sheet strength is derived from very strong risk-adjusted capitalization, which is offset partially by the potential negative impact as a result of any weakening of Assuria's financial condition. Gulf is a long-standing insurer in its domestic market, having operated in this market for over 30 years and has achieved a high level of brand recognition. Gulf's business profile is considered limited due to its significant concentration of property and motor risks in Trinidad and Tobago. This market is highly competitive, and losses from natural catastrophe events represent a material level of risk exposure to Gulf. This is mitigated through the significant use of reinsurance. Gulf's underwriting and overall results have improved in recent years, despite the financial impacts of catastrophe losses. ================= V E N E Z U E L A ================= VENEZUELA: Investor Group Says Creditors Must Be Treated Equally ---------------------------------------------------------------- Katia Porzecanski and Patricia Laya at Bloomberg News report that a group of investors holding more than $8 billion of bonds issued by Venezuela and its state-owned companies said that nation must treat its creditors equally, and it won't support any debt restructuring that doesn't. The committee, which is being advised by Mark Walker of Millstein & Co., said in a statement that it wishes to put the nation "on notice that it will hold Venezuela and PDVSA responsible for all costs and expenses incurred in investigating all defaults and pursuing any and all remedies available," and "commits to seek to resolve Venezuela's debt problems in a way that will assure fair treatment of all creditors of equal rank," according to Bloomberg News. Bloomberg News notes that while the nation has missed almost $4 billion of payments coming due since last year, it has managed to stay current on a few bonds that it views as a strategic priority, raising objections from holders of the other notes. The nation -- mired in its worst-ever recession -- is subject to U.S. sanctions aimed at restricting financing for President Nicolas Maduro's regime, meaning American investors are prohibited from engaging in a debt restructuring, Bloomberg News relates. Bloomberg News notes that the few payments that have made their way to investors include $107 million in interest due in April from state oil company Petroleos de Venezuela on secured bonds that mature in 2020, and a $90 million payment in February on notes maturing in 2022, securities that have become known as "hunger bonds." The group said in the statement that it won't support any debt workout that doesn't provide "for comparable recoveries for all similarly situated creditors," the report discloses. Bloomberg reported in April that the Millstein group has about 15 members, mostly long-term investors rather than hedge funds. The biggest publicly reported holders of Venezuela and PDVSA bonds include Fidelity Investments, BlackRock Inc. and Allianz SE, Bloomberg News discloses. They were among those said to have been included when the group was first organizing, Bloomberg News relays. The nation's bonds have plunged below 30 cents on the dollar since Maduro announced in November that he'd seek to renegotiate the nation's debt, and then failed to clarify any details of his plans to investors, Bloomberg News says. A resolution for bondholders may be nowhere in sight after Maduro secured another six-year term in elections last month Bloomberg News notes. Still, they've grown restless despite limited options Bloomberg News discloses. Some of PDVSA's secured creditors hired law firm White & Case LLP to advise them, while a group that owns more than 15 percent of Venezuela's 2034 bonds hired Mark Stancil of Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP to "evaluate multiple enforcement actions" on their notes Bloomberg News relays. Bloomberg News notes that while bondholders have remained in limbo, some companies owed money by the state have pushed ahead with efforts to pressure it into repaying. White Beech SNC, a Delaware entity holding $25 million of unpaid promissory notes that were originally issued by PDVSA to SNC-Lavalin Group Inc., sued the oil company in May for repayment on principal and interest, Bloomberg News discloses. ConocoPhillips obtained court orders freezing PDVSA assets in the Caribbean, blocking the company from using its terminals in the region, Bloomberg News relays. If their efforts prove successful, that "may begin a race to the bottom for strategic assets outside of Venezuela," Cleary Gottlieb Steen & Hamilton LLP attorneys Richard Cooper and Boaz Morag wrote in a report last month, Bloomberg News notes. "If this risk materializes, a cascade of litigation and enforcement actions against the Republic and PDVSA is likely to follow," Bloomberg News adds. *********** 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 * * *