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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
Monday, July 2, 2018, Vol. 19, No. 130
Headlines
A R G E N T I N A
ARGENTINA: Recession Feared as Cracks in Economy Grow
INVERSIONES Y REPRESENTACIONES: S&P Hikes Corp Credit Rating to B+
B R A Z I L
BANCO CELETEM: Moody's Affirms Ba1 Deposit Rating, Outlook Stable
M E X I C O
CENTRAL AMERICA BOTTLING: S&P Affirms 'BB' CCR, Outlook Stable
UNION ANDINA: S&P Alters Outlook to Stable & Affirms 'BB' CCR
P U E R T O R I C O
GIRARD MANUFACTURING: Aug. 21 Disclosure Statement Hearing
VILLAS DEL MAR: Banco Popular Wants to Ban Continued Cash Use
V E N E Z U E L A
VENEZUELA: Doctors Back Nurses' Demand for Pay Hikes
VENEZUELA: Colombian President Discusses Plans Against Maduro
VENEZUELA: Warns Supermarkets of Strict Measures Over Price Hikes
X X X X X X X X X
* BOND PRICING: For the Week From June 25 to June 29, 2018
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A R G E N T I N A
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ARGENTINA: Recession Feared as Cracks in Economy Grow
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Patrick Gillespie and Ignacio Olivera Doll at Bloomberg News
report that signs are mounting that Argentina is headed toward
recession in the next few months, less than two years after
emerging from the latest one.
A severe drought and currency crisis shook Latin America's third-
largest economy just as President Mauricio Macri sought to
consolidate its incipient recovery, according to Bloomberg News.
Economic activity fell 2.7 percent in April, the largest monthly
decline since Macri took office in December 2015, Bloomberg News
notes. Growth also declined on an annual basis for the first time
in 14 months, the nation's statistics agency reported, Bloomberg
News relays.
Bloomberg News discloses that the drought hamstrung production of
soy, Argentina's chief export that supports many industries and is
a key source of government revenue. Agricultural economic
activity plunged 30.8 percent in April, according to official data
published, Bloomberg News says. And the currency crisis forced
the central bank to raise rates to 40 percent, further weighing on
economic activity, Bloomberg News relays.
"It's almost certain that Argentina will fall into recession,"
said Fausto Spotorno, chief economist at consultancy Orlando J.
Ferreres & Asociados, Bloomberg News notes. "We won't see the
recovery until the end of the year," he added.
Bloomberg News notes that a recession would complicate Macri's
plans to further cut government expenditures as agreed with the
International Monetary Fund in exchange for a $50 billion credit
line. Macri won the 2015 election promising to spark growth with
a pro-business agenda, but stubbornly-high inflation and his
initial spending cuts have hampered the economy, Bloomberg News
relays.
More Cracks
Signs of economic trouble are increasingly apparent, Bloomberg
News discloses. Argentina's leading private construction index
declined 5 percent in May, and it's been down four of the last six
months, Bloomberg News says. Chances of a recession in 2018 rose
to 68.1 percent in May from 24.4 percent in April, according to a
leading index published by Torcuato Di Tella University, Bloomberg
News notes.
And at least three consumer brands are running into trouble,
Bloomberg News relays. Longvie, a kitchenware retailer, had its
debt rating cut by Fix SCR, an Argentine subsidiary of Fitch
Ratings, which cited a decline in consumer demand for its
decision, Bloomberg News notes. Carsa and Santiago Saenz, two
large retailers, both requested in the last few months a court
procedure against bankruptcy similar to the U.S. Chapter 11,
Bloomberg News discloses.
To be sure, most economists forecast a brief recession, with gross
domestic product shrinking for two or three consecutive quarters
at most, Bloomberg News says. Argentina's central bank also
predicts only a "temporary deceleration" in growth this year,
Bloomberg News notes. The bank's monthly poll of independent
economists shows contractions for the second and third quarters.
The previous poll showed both quarters flat or in positive
territory, Bloomberg News relays.
"It will be a mild recession," said Daniel Artana, chief economist
at the Latin American Economic Research Foundation, Bloomberg News
notes. But he warned it could get worse if Brazil and the U.S.
raise rates faster than expected and emerging markets as whole
continue to sell off, Bloomberg News relays. "It depends on what
happens in the rest of the world in the months ahead, not just in
Argentina," he added.
About Argentina
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.
INVERSIONES Y REPRESENTACIONES: S&P Hikes Corp Credit Rating to B+
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S&P Global Ratings raised its corporate credit ratings on IRSA
Inversiones y Representaciones S.A. (IRSA) and on its subsidiary,
IRSA Propiedades Comerciales S.A. (IRCP), to 'B+' from 'B'. The
outlook on the corporate credit ratings is stable.
S&P also raised the issue-level ratings on IRSA and IRCP to 'B+'
from 'B'.
The upgrade reflects IRSA and IRCP's solid operating performance.
The companies have reached almost 99% occupancy in shopping malls,
91% occupancy in offices, and 72% in hotels in their portfolios.
This solid operating performance grew revenues by 20% in the last
12 months as of March 2018, compared to zero growth in the last 12
months ended March 2017, although with slightly lower EBITDA
margins of 40% compared to 44% in the previous period (including
expenses and the collective promotion fund). The upgrade also
reflects IRSA's improved liquidity after IRCP's $140 million 2020
notes issuance in September 2017 and the $35 million bank loan
obtained by IRCP in February 2018. The solid operating performance
counterbalanced the new debt, with only a slight increase in
leverage metrics, while the debt amortization profile was extended
to a weighted average maturity of 3.6 years.
S&P expects IRSA to maintain stable debt levels in 2019 and 2020
amid its considerable investment plan that includes the expansion
of Alto Palermo, the company's flagship mall; and the construction
of the Polo Dot and Catalinas office buildings. However, in the
next year or so, the new projects should mitigate the debt levels
with stronger cash flow generation once they're completed and
fully running.
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B R A Z I L
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BANCO CELETEM: Moody's Affirms Ba1 Deposit Rating, Outlook Stable
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Moody's Investors Service has affirmed all of Banco Cetelem S.A.'s
ratings and assessments, including its global scale local currency
long-term deposit rating of Ba1. The outlook remains stable.
The following ratings and assessments of Banco Cetelem S.A. were
affirmed:
- Long-term global local-currency deposit rating of Ba1; stable
outlook
- Short-term global local-currency deposit rating of Not Prime
- Long-term global foreign-currency deposit rating of Ba3;
stable outlook
- Short-term global foreign-currency deposit rating of Not Prime
- Long-term local-currency counterparty risk rating of Baa3
- Short-term local-currency counterparty risk rating of Prime-3
- Long-term foreign-currency counterparty risk rating of Ba1
- Short-term local-currency counterparty risk rating of Not
Prime
- Long-term Brazilian national scale deposit rating of Aaa.br
- Short-term Brazilian national scale deposit rating of BR-1
- Long-term Brazilian national scale counterparty risk rating of
Aaa.br
- Short-term Brazilian national scale counterparty risk rating
of BR-1
- Baseline credit assessment of ba3
- Adjusted baseline credit assessment of ba1
- Long-term counterparty risk (CR) assessment of Baa3(cr)
- Short-term counterparty risk (CR) assessment of Prime-3(cr)
- Outlook remains Stable
RATINGS RATIONALE
In affirming Cetelem's ratings, Moody's acknowledges the bank's
improving asset risk metrics, recovering profitability, and
stabilizing capital levels. The ratings also reflect the bank's
very weak intrinsic liquidity and funding position as a result of
its dependence on other members of the BNP Paribas group for
funding and liquidity. At the same time, the ratings incorporate
Moody's assessment of BNP Paribas' high willingness to provide
extraordinary financial support to Cetelem in an event of need.
The stable outlook reflects Moody's view that Cetelem's asset
quality will remain stable and profitability will continue to
recover in the next 12 to 18 months, helping to offset potential
downward pressure on capital.
Cetelem's non-performing loans fell to just 2% of gross loans as
of year-end 2017 from 4.65% two years earlier. Despite the
reduction in loan delinquency, Cetelem maintained conservative
loan loss reserve coverage of 187% of problem loans in 2017. The
improvement in the bank's asset risk metrics is the result of
improvements to loan collection but also owing to a high volume of
loan charge-offs, which averaged more than 5% of total loans
annually in over the last two years. Problem loan ratios have also
benefited from continued growth of Cetelem's loan book, which
increased at a very rapid 34% compound annual rate during the past
five years. However, much of this growth was driven by the bank's
low-risk payroll lending business, which accounts for roughly two-
thirds of Cetelem's total loan portfolio, helping to offset the
risks normally inherent in very rapid loan growth. The bank's
payroll loans have inherently low risk because loan payments are
deducted directly from the accounts of the borrowers. In addition,
the bank focuses on lending to retirees, who have very high income
stability. This helps offset the bank's still sizeable exposure to
its credit card business, which accounts for another 30% of its
loan portfolio but has not performed as well as its payroll loans.
Cetelem's focus on retail lending results in a very granular
portfolio, with the 60 largest borrowers representing just 0.8% of
tangible common equity (TCE) in December 2017, limiting the bank's
exposure to defaults by any individual borrowers.
While the bank's capitalization fell sharply in recent years due
to rapid loan growth, it stabilized at a moderate level in 2017.
In December 2017, Cetelem's ratio of tangible common equity,
Moody's preferred measure of capitalization, equaled 12.54% of its
adjusted risk-weighted assets (RWAs), up modestly from 11.96% a
year earlier. The bank's TCE ratio is 124 basis points below its
regulatory tier 1 ratio due to its deferred tax assets (DTAs),
most of which Moody's deducts from capital due to their limited
ability to absorb losses.
After registering a loss equal to 0.8% of tangible assets in 2016,
net income recovered last year, and the bank recorded a small
profit equal to 0.2% of tangible assets. The loss in 2016 was
largely driven by a one-time accounting change that resulted in a
significant increase in expenditures. Going forward, Moody's
expects the bank's profitability will continue to recover as
lending continues to growth and commission expenses go down as
Cetelem continues to invest in the distribution of payroll loans
via digital platforms, a lower-cost alternative to the bank's
traditional reliance on correspondents.
The large presence of market funds in Cetelem's funding structure
reflects an strategic choice to rely on sister bank Banco BNP
Paribas Brasil S.A. (BNP Brasil, unrated) as its sole funding
source. BNP manages liquidity and funding for its Brazilian
subsidiaries on a consolidated basis, with BNP Brasil responsible
for raising deposits and market funds from local market
participants. However, Moody's considers Cetelem's funding to be
much more stable than wholesale funds raised from third parties.
Cetelem also reports very weak liquidity ratios, with liquid
resources equal to just 0.5% of tangible banking assets as of
December 2017. However, it closely coordinates with its sister
bank to ensure that its asset and liability maturities are well
matched so that its cash inflows from loan payments are sufficient
for it to honor its obligations. In addition, Moody's believes the
bank could access additional liquidity if necessary by selling a
portion of its loan portfolio.
Cetelem's high level of integration and strategic coordination
with its affiliates with regards to funding and liquidity
management supports Moody's view that there is a high probability
that the bank's ultimate parent would provide it extraordinary
support in an event of need.
WHAT COULD CHANGE THE RATING -- DOWN/UP
Cetelem's ratings could be upgraded if the bank is able to improve
profitability significantly on a sustainable basis and increase
its capital levels while keeping loan delinquencies low.
Conversely, Cetelem's ratings could be downgraded if the recent
turnaround in earnings, stabilization of capital, and improvement
in asset quality prove unsustainable. In addition, the bank's
foreign currency deposit rating would face downward pressure if
Brazil's sovereign rating were downgraded.
METHODOLOGY USED
The principal methodology used in these ratings was Banks
published in June 2018.
Banco Cetelem S.A. is headquartered in Sao Paulo, Brazil, with
assets of BRL10.6 billion and shareholders' equity of BRL1.29
billion as of December 31, 2017.
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M E X I C O
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CENTRAL AMERICA BOTTLING: S&P Affirms 'BB' CCR, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' global scale corporate credit
rating on The Central America Bottling Corp. (CBC). S&P also
affirmed itd 'BB' issue-level rating on the company. The outlook
remains stable.
S&P said, "Although CBC posted somewhat weaker-than-expected
credit metrics during the second half of 2017 and beginning of
2018, we continue to expect the company's operating and financial
performance to remain solid. Higher production costs and
advertising expenses dragged down CBC's margins in the past six
months. This, coupled with the purchase of the remaining stake in
AmBev S.A.'s Huachipa plant in Peru for $42.5 million and a rise
in operating leases, raised CBC's adjusted debt. However, we
believe that CBC's leading position in the markets where it
operates, price increases in line with inflation, focus on value-
added products, and operating efficiencies will allow it to
increase revenue and EBITDA. We expect the company's cash flow
generation and cash on hand will be sufficient to fund its working
capital needs for $16 million, capital expenditures (capex) for
$108 million, and annual dividend payments for about $42.5
million, on average, in the next two years. Our base-case scenario
also assumes some debt reduction in the next two years."
CBC mainly operates in Central America, South America (Ecuador,
Peru, and Argentina) and the Caribbean. It has a broad portfolio
of products including carbonated soft drinks, juices and nectars,
beer, isotonic drinks, bottled water, and energy drinks. CBC
continues to have a leading position in the Central America and
Caribbean carbonated soft drink markets thanks to its renowned
product portfolio and wide distribution network that reaches more
than 620,000 points of sale. Its strategic alliances with PepsiCo,
Inc (A+/Stable/A-1) and AmBev (BBB/Stable/--) provides perpetual
exclusive rights to distribute and sell their products in Central
America and the Caribbean. S&P said, "We believe these factors
continue to mitigate CBC's exposure to countries with a high-risk
operating environment, foreign currency and commodity price
volatility, and increased competition. Moreover, we expect CBC to
continue to focus on its pricing strategy and product mix, and
achieve further operating efficiencies. These factors should
strengthen EBITDA margin to around 13.6% for the next two years,
in line with the average profitability of the nonalcoholic
beverage industry."
UNION ANDINA: S&P Alters Outlook to Stable & Affirms 'BB' CCR
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S&P Global Ratings revised its outlook on Union Andina de Cementos
S.A.A. y Subsidiarias (UNACEM) to stable from negative. S&P said,
"We also affirmed our 'BB' corporate credit rating on the company.
At the same time, we affirmed our 'BB' issue-level rating on the
company's $625 million senior unsecured notes due 2021."
The outlook revision reflects the drop in the company's leverage
metric below 4.0x for two consecutive quarters, reaching 3.7x in
the last 12-month period ended March 31, 2018, from 4.2x in the
same period last year. This was possible thanks to the company's
commitment to reduce its debt with its steady FOCF generation and
slight improvement in revenue growth, stemming from its ability to
adjust its cement prices. UNACEM's cement volumes remained soft in
its core market due to long delays in public and private
investments in Peru's infrastructure projects for the past two
years, further exacerbated by corruption scandals and increased
political tensions that led to the resignation of former President
Pedro Pablo Kuczynski. However, under the new government, S&P
expects public investment in infrastructure projects to gain some
traction, higher investment confidence, and new mining projects
that should improve volumes for UNACEM and support a consistent
improvement in its top-line trajectory.
The rating continues to reflect UNACEM's leading market position
in Peru's cement industry, where it holds a 47.8% market share,
and a dominant position in the central region of the country with
an installed cement capacity of 8.3 million tons per year (mtpy).
In Ecuador, UNACEM is the second-largest player after Holcim with
an installed cement capacity of 1.5 mtpy. The rating also
incorporates the company's extensive distribution network, plant
locations, its vertical integration, a low and flexible cost base,
and an above-average EBITDA margin for the industry of about 31%.
S&P said, "However, we believe that these strengths are somewhat
constrained by the company's limited scale of operations compared
with that of global peers, as well as its geographic concentration
in the central region of Peru, which still represents about 75% of
UNACEM's total sales. Moreover, we believe that the company has a
narrow asset diversification because most of its revenue comes
from its Atocongo and Concordocha plants. The company has some
exposure to country risk related to its operations in Ecuador,
which currently represents about 14% of UNACEM's total sales.
"According to our revised forecast for 2018 and 2019, UNACEM's
sales should now grow at a mid-single digits amid our expectation
of a recovery in infrastructure projects investments, given that
the new government is working to reactivate infrastructure
projects in the country. This will be driven by reconstruction
activities, including roads, highways, and housing following last
year's floods, but also from the upcoming Pan-American games in
Lima in 2019, large mining investments, the line 2 of Lima's
metro, and from several transportation infrastructure projects. We
also expect the company's EBITDA margin to stabilize in the 31%-
32% range and to maintain consistent FOCF generation amid its low
capex requirements. In addition, we expect UNACEM to maintain its
prudent dividend policy with distributions of about PEN85 million
and to use its excess cash to gradually reduce its debt. As a
result, we expect net debt to EBITDA below 3.5x by the end of
2018."
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P U E R T O R I C O
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GIRARD MANUFACTURING: Aug. 21 Disclosure Statement Hearing
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Judge Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for
the District of Puerto Rico issued an order and notice setting a
hearing on approval of the disclosure statement filed by Girard
Manufacturing Inc.
August 21, 2018, at 10:00 A.M., is fixed as the date of hearing on
approval of disclosure statement.
Under the plan, Class 3 secured creditor Banco Desarrollo will be
paid in full from the with the voluntary surrender of its direct
collateral, i.e. the account receivable from Municipio de San Juan
in the amount of $1,900,000.00 and the balance to be paid through
a payment plan of twenty (20) years at a 5% interest per annum.
The total estimated aggregate amount of claims is $2,180,108.09.
Class 4 secured creditor BPPR, will be paid in full through a
payment plan of twenty (20) years at a 5% interest per annum.
BPPR will retain its lien until the payment in full of its claim.
Class 5 unsecured claims will be paid 4% of their claims in 60
monthly payments.
A full-text copy of the Disclosure Statement dated June 13, 2018,
is available at http://bankrupt.com/misc/prb17-05975-83.pdf
About Girard Manufacturing, Inc.
Girard Manufacturing Inc. provides office furniture in San Juan,
Puerto Rico. The Company offers desks chairs, modular systems,
bookshelves, filing systems, and accessories, as well as online
service and support.
Girard Manufacturing, Inc., based in San Juan, PR, filed a Chapter
11 petition (Bankr. D.P.R. Case No. 17-05975) on August 24, 2017.
Alexis Fuentes-Hernandez, Esq., at Fuentes Law Offices, LLC,
serves as bankruptcy counsel.
In its petition, the Debtor estimated $2.36 million in assets and
$3.83 million in liabilities. The petition was signed by Jose A.
Casal Seibezzi, president.
VILLAS DEL MAR: Banco Popular Wants to Ban Continued Cash Use
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Secured Creditor Banco Popular de Puerto Rico requests the U.S.
Bankruptcy Court for the District of Puerto Rico to prohibit
Villas Del Mar Hau, Inc., from further use of any cash collateral.
Banco Popular also asks the Court to grant it adequate protection
by:
(a) granting a first priority replacement lien on all of the
Debtor's post-petition assets;
(b) requiring an accounting of all cash collateral received
by or for the benefit of the Debtor since the Petition
Date;
(c) directing the Debtor to provide Banco Popular full access
to the books and records of the Debtor, including all
electronic records on any computers used by or for the
benefit of the Debtor, to make electronic copies,
photocopies or abstracts of the business records of the
Debtor;
(d) requiring that any cash collateral or property of Banco
Popular that is in the possession, custody or control of
the Debtor or any of the insiders of the Debtor;
(e) imposing a constructive trust on any cash collateral, or
proceeds of any collateral of Banco Popular, if any, that
has been diverted to any person or bank account as a
result of any diversion of the Debtor's accumulated
rents; and
(f) prohibiting the Debtor from using any cash collateral of
Banco Popular unless otherwise ordered by the Court.
Prior to the Petition Date, the Debtor entered into various loan
agreements with Banco Popular, pursuant to which Banco Popular
provided certain credit facilities to the Debtor. The Loans are
secured by, among other things, a real estate collateral operating
as a resort called Parador Villas del Mar Hau, and the rents and
revenue derived from such operation of Property No. 342 of
Isabela, Property Registry, Aguadilla Section. As part of the Loan
Documents and Collateral for the Loans, the Debtor granted to
Banco Popular a lien over, among others, all of its pre and post-
petition rents and revenue generated by the Real Estate
Collateral.
As of the Petition Date, Banco Popular is the holder of a valid,
perfected, secured claim in the amount of $1,409,903.30, which
claim is afforded prima facie validity pursuant to Fed. R. Bankr.
P. 3001(f).
During the pendency of the case, Banco Popular has engaged the
Debtor to reach a resolution on the consensual treatment of Banco
Popular's Claim, which represents the largest claim against the
estate, and the consensual use of Banco Popular's Cash Collateral.
While the parties were able to reach an agreement on Banco
Popular's Claim and the use of cash collateral pending the
confirmation of a plan, Banco Popular contends that the Debtor has
been unable or unwilling to obtain the confirmation of a plan
consistent with such agreement and treatment. Further, the Debtor
has (a) defaulted under the various stipulations with Banco
Popular, (b) failed to adequately protect Banco Popular's
Collateral and to provide Banco Popular adequate protection.
Attorneys for Banco Popular de Puerto Rico:
Luis C. Marini-Biaggi, Esq.
Carolina Velaz-Rivero, Esq.
Valerie M. Blay Soler, Esq.
MARINI PIETRANTONI MU'IZ LLC
MCS Plaza, Suite 500
255 Ponce de Leon Ave.
San Juan, PR 00917
Tel.: (787)705-2171
E-mail: lmarini@mpmlawpr.com
cvelaz@mpmlawpr.com
vblay@mpmlawpr.com
About Villas Del Mar Hau
Villas Del Mar Hau, Inc., filed for Chapter 11 bankruptcy
protection (Bankr. D.P.R. Case No. 15-10146) on Dec. 22, 2015.
The petition was Myrna Hau Rodriguez, president/owner. The Debtor
is represented by Victor Gratacos Diaz, Esq., at Gratacos Law
Firm. The case is assigned to Judge Enrique S. Lamoutte Inclan.
The Debtor disclosed total assets of $3.80 million and total debts
of $4.46 million at the time of the filing.
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V E N E Z U E L A
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VENEZUELA: Doctors Back Nurses' Demand for Pay Hikes
----------------------------------------------------
EFE News reports that a group of Venezuelan doctors joined
demonstrations started earlier by nurses in this capital and other
areas of the country to demand pay hikes and highlight shortages
of drugs and other supplies at hospitals.
After holding an assembly, doctors at the capital's Concepcion
Palacios Maternity Hospital voted to join the demonstration, while
physicians in the western state of Lara also carried out a
protest, according to EFE News.
The report notes that the country's health professionals are
demanding the same treatment as members of the armed forces, who
received an across-the-board pay increase on June 15.
Physician and opposition lawmaker Jose Manuel Olivares said that
the wage increase for the country's health personnel should be on
the order of 2,000 percent, the report relays.
Strike votes are planned for next week at hospitals across the
oil-rich Andean nation, he told EFE.
Moraima Hernandez, a doctor at Concepcion Palacios, told reporters
that she and her colleagues join the nurses in their protest
because the problems affect all health personnel equally, the
report says.
"We are united by the same problems," Mr. Hernandez said, the
report notes. "Doctors are going through the same vicissitudes as
the rest. Maternity doctors completely endorse the nurses union
and support the call for a strike," he added.
As reported in the Troubled Company Reporter-Latin America on
June 1, 2018, S&P Global Ratings, on May 29, 2018, removed its
long- and short-term local currency sovereign credit ratings on
Venezuela from CreditWatch with negative implications and affirmed
them at 'CCC- /C'. The outlook on the long-term local currency
rating is negative. At the same time, S&P affirmed its 'SD/D'
long- and short-term foreign currency sovereign credit ratings on
Venezuela. Our transfer and convertibility assessment remains at
'CC'.
VENEZUELA: Colombian President Discusses Plans Against Maduro
-------------------------------------------------------------
EFE News reports that the president-elect of Colombia spent the
second day of his visit to Washington discussing plans against the
Venezuelan government led by Nicolas Maduro, seeking allies in the
International Criminal Court and urging South American countries
to leave the Union of South American Nations (UNASUR).
Ivan Duque met the Secretary General of the Organization of
American States, Luis Almagro, who is also an opponent of Maduro,
to discuss the complaint filed against Venezuela in the ICC,
according to EFE News.
"First, I have already complained against Nicolas Maduro, and the
OAS secretary general has acknowledged and backed up this
complaint with the report which he presented, and now, we have to
pursue various heads of states for supporting these complaints and
urge that the investigations should be accelerated," Mr. Duque
said after the meeting, the report notes.
In July 2017, Mr. Duque filed a complaint in the ICC against
Maduro, and during his election campaign in Colombia, he promised
to bring Venezuela to the international court as a state if he won
the elections, which he eventually did on Jun. 17, the report
relays.
The report says that Mr. Almagro presented a report to the ICC in
May, which said there was reasonable cause to assume that 11
people, led by President Maduro, had committed crimes against
humanity.
In the 16-year-long history of the ICC, no state has brought a
case against another, and Colombia would become the first country
to do so if it files a case against Venezuela, the report notes.
From the OAS platform, Mr. Duque urged South American countries to
abandon UNASUR, alleging that the bloc had become "an accomplice
of Venezuelan dictatorship," the report relays
During his election campaign, Mr. Duque advocated Colombia's exit
from UNASUR, stressing that the organization was a 'silent'
supporter of the Venezuelan regime, the reports adds.
As reported in the Troubled Company Reporter-Latin America on
June 1, 2018, S&P Global Ratings, on May 29, 2018, removed its
long- and short-term local currency sovereign credit ratings on
Venezuela from CreditWatch with negative implications and affirmed
them at 'CCC- /C'. The outlook on the long-term local currency
rating is negative. At the same time, S&P affirmed its 'SD/D'
long- and short-term foreign currency sovereign credit ratings on
Venezuela. S&P's transfer and convertibility assessment remains at
'CC'.
VENEZUELA: Warns Supermarkets of Strict Measures Over Price Hikes
------------------------------------------------------------------
EFE News reports that the Venezuelan president warned the
country's supermarkets of strict measures if they charged over the
odds for price-controlled items in violation of the Law of Agreed
Prices passed in late 2017 by the Constituent National Assembly.
"Be lawful, I am giving them an opportunity, comply with the Law
on Agreed Price, respect the pricing mechanisms or strict measures
will be taken," Nicolas Maduro said at a televised ceremony to
mark the National Journalism Prize award for 2018, according to
EFE News.
The report notes that Venezuela had raised the minimum wage by 103
percent -- fourth raise this year -- placing it at 5.19 million
bolivar, equivalent to $54 according to official exchange rates in
Venezuela.
He said supermarkets had increased the prices of food items after
the raise and blamed the poor performance of the Venezuelan
economy over such illegal practices and reiterated that it was an
"economic war," the report relays.
"You are scoundrels," the president told food chain stores owners,
the report notes.
"We are going to achieve the economic miracle, and I say, I am
willing to do it by hook or by crook," he added, the report
relays.
At a meeting, government officials also set up "work tables to
agree on the prices of the items that make up the Plan 50," the
report relays.
The report says that President Maduro's warning comes amid a
severe economic crisis in the oil-rich country, including high
inflation, a shortage of basic food items and medicines, according
to the opposition-controlled Parliament.
To counter the crisis, the Venezuelan government had recently
taken over eight of the main popular supermarkets in the country
and is in the process of taking over another 21 to curb price
speculation, hoarding and random price hikes, the report adds.
As reported in the Troubled Company Reporter-Latin America on
June 1, 2018, S&P Global Ratings, on May 29, 2018, removed its
long- and short-term local currency sovereign credit ratings on
Venezuela from CreditWatch with negative implications and affirmed
them at 'CCC- /C'. The outlook on the long-term local currency
rating is negative. At the same time, S&P affirmed its 'SD/D'
long- and short-term foreign currency sovereign credit ratings on
Venezuela. S&P's transfer and convertibility assessment remains at
'CC'.
=================
X X X X X X X X X
=================
* BOND PRICING: For the Week From June 25 to June 29, 2018
----------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
BA-CA Finance Cayman Lt 0.518 62.07 KY EUR
AES Tiete Energia SA 6.7842 1.109 4/15/2024 BR BRL
Argentina Bogar Bonds 2 39.36 2/4/2018 AR ARS
Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD
Automotores Gildemeister 6.75 67 1/15/2023 CL USD
Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD
Automotores Gildemeister 6.75 65.5 1/15/2023 CL USD
CA La Electricidad 8.5 63.664 4/10/2018 VE USD
Caixa Geral De Depositos 1.439 63.167 KY EUR
Caixa Geral De Depositos 1.469 KY EUR
CSN Islands XII Corp 7 68 BR USD
CSN Islands XII Corp 7 66.266 BR USD
Decimo Primer Fideicomiso 6 53.225 10/25/2041 PA USD
Decimo Primer 4.54 43.127 10/25/2041 PA USD
Dolomite Capital 13.217 73.108 12/20/2019 CN ZAR
Enel Americas SA 5.75 56.172 6/15/2022 CL CLP
Gol Linhas Aereas SA 10.75 35.861 2/12/2023 BR USD
Gol Linhas Aereas SA 10.75 35.601 2/12/2023 BR USD
Inversora Electrica 6.5 67.625 9/26/2017 AR USD
Inversora Electrica 6.5 67.625 9/26/2017 AR USD
MIE Holdings Corp 7.5 64.78 4/25/2019 HK USD
MIE Holdings Corp 7.5 64.982 4/25/2019 HK USD
NB Finance Ltd 3.88 61.816 2/7/2035 KY EUR
Noble Holding 7.7 74.433 4/1/2025 KY USD
Noble Holding 5.25 56.279 3/15/2042 KY USD
Noble Holding 8.7 71.881 4/1/2045 KY USD
Noble Holding 6.2 60.129 8/1/2040 KY USD
Noble Holding 6.05 58.38 3/1/2041 KY USD
Odebrecht Finance Ltd 7.5 42.5 KY USD
Odebrecht Finance Ltd 5.125 56.938 6/26/2022 KY USD
Odebrecht Finance Ltd 7 68.053 4/21/2020 KY USD
Odebrecht Finance Ltd 7.125 41.366 6/26/2042 KY USD
Odebrecht Finance Ltd 4.375 40.002 4/25/2025 KY USD
Odebrecht Finance Ltd 5.25 39.211 6/27/2029 KY USD
Odebrecht Finance Ltd 6 44.75 4/5/2023 KY USD
Odebrecht Finance Ltd 5.25 39.018 6/27/2029 KY USD
Odebrecht Finance Ltd 7.5 42.95 KY USD
Odebrecht Finance Ltd 4.375 40.363 4/25/2025 KY USD
Odebrecht Finance Ltd 7.125 41.635 6/26/2042 KY USD
Odebrecht Finance Ltd 6 52.625 4/5/2023 KY USD
Odebrecht Finance Ltd 5.125 55.873 6/26/2022 KY USD
Odebrecht Finance Ltd 7 67.368 4/21/2020 KY USD
Petroleos de Venezuela 8.5 74.5 10/27/2020 VE USD
Petroleos de Venezuela 6 30.458 5/16/2024 VE USD
Petroleos de Venezuela 6 30.517 11/15/2026 VE USD
Petroleos de Venezuela 9.75 35.677 5/17/2035 VE USD
Petroleos de Venezuela 9 39.279 11/17/2021 VE USD
Petroleos de Venezuela 5.375 30.267 4/12/2027 VE USD
Petroleos de Venezuela 8.5 72.5 10/27/2020 VE USD
Petroleos de Venezuela 12.75 45.278 2/17/2022 VE USD
Petroleos de Venezuela 6 30.367 5/16/2024 VE USD
Petroleos de Venezuela 6 30.387 11/15/2026 VE USD
Petroleos de Venezuela 9 39.316 11/17/2021 VE USD
Petroleos de Venezuela 9.75 35.893 5/17/2035 VE USD
Petroleos de Venezuela 6 28.346 10/28/2022 VE USD
Petroleos de Venezuela 5.5 30.123 4/12/2037 VE USD
Petroleos de Venezuela 12.75 45.23 2/17/2022 VE USD
Polarcus Ltd 5.6 75 3/30/2022 AE USD
Provincia del Chubut 4 10/21/2019 AR USD
Siem Offshore Inc 4.04527 69.5 10/30/2020 NO NOK
Siem Offshore 3.75176 65.75 12/28/2021 NO NOK
STB Finance 2.05771 56.243 KY JPY
Sylph Ltd 2.367 64.438 9/25/2036 KY USD
US Capital 1.63611 54.774 12/1/2039 KY USD
US Capital 1.63611 54.774 12/1/2039 KY USD
USJ Acucar 9.875 67 11/9/2019 BR USD
USJ Acucar 9.875 67 11/9/2019 BR USD
Venezuela 13.625 68.25 8/15/2018 VE USD
Venezuela 7.75 44.065 10/13/2019 VE USD
Venezuela 11.95 40.785 8/5/2031 VE USD
Venezuela 12.75 45.19 8/23/2022 VE USD
Venezuela 9.25 39.645 9/15/2027 VE USD
Venezuela 11.75 40.005 10/21/2026 VE USD
Venezuela 9 36.285 5/7/2023 VE USD
Venezuela 9.375 37.69 1/13/2034 VE USD
Venezuela 13.625 72.25 8/15/2018 VE USD
Venezuela 7 34.23 3/31/2038 VE USD
Venezuela 7 59.19 12/1/2018 VE USD
***********
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 * * *