/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/180921.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 Friday, September 21, 2018, Vol. 19, No. 188 Headlines B O L I V I A BOLIVIA: Sugar Industry Awaiting Enactment of Biofuels Law B R A Z I L OI SA: Shareholders Approve New Board, Capital Raise D O M I N I C A N R E P U B L I C EMPRESA DE TELECOM: Moody's Affirms Ba3 CFR; Outlook Now Stable EMPRESA GENERADORA: Fitch Affirms BB- IDR, Outlook Stable DOMINICAN REPUBLIC: Dollar 'Stable' but Peso Slides Toward 50-to-1 M E X I C O MEXICO: Incoming Economy Sec'y Reaches Out to Private Sector P U E R T O R I C O INSTITUCION AMOR: Plan and Disclosures Hearing Set for Oct. 5 POPULAR INC: Fitch Assigns BB- Rating to $300MM Sr. Unsec. Notes PUERTO RICO: Bond Restructuring Approved in Initial Vote Tally T R I N I D A D & T O B A G O CARIBBEAN AIR: Discontinues Montego Bay-Fort Lauderdale Flights U R U G U A Y BANQUE HERITAGE: S&P Alters 'B+' GS Rating Outlook to Stable - - - - - ============= B O L I V I A ============= BOLIVIA: Sugar Industry Awaiting Enactment of Biofuels Law ---------------------------------------------------------- EFE News reports that one of Bolivia's largest sugar refining mills is awaiting the enactment of a law promoting mass domestic production of bioethanol, a biofuel product that will serve as a substitute for imported gasoline and diesel additives. Mariano Aguilera, the chairman of the board of the Guabira sugar refining mill, said in a press conference that he was pleased that the Senate had passed the bill for the production, sale and blending of vegetable-derived additives, according to EFE News. The report notes that Mr. Aguilera said he was confident Bolivian President Evo Morales would sign it into law in the coming days so that the mill can immediately enter into contracts with state energy company YPFB and start distributing bioethanol and so domestic consumers can begin using fuels with the new blend. YPFB has called on domestic sugar mills to produce some 80 million liters of bioethanol in the first year, Mr. Aguilera said, adding that that volume could increase steadily in subsequent years, the report relays. He said that revenue would be very welcome for a sugarcane sector that has been hard hit early in 2018 by heavy rains and later by drought and cold, the report says. Numerous public and private stakeholders converge in this project, since the government will stop importing gasoline and diesel additives and producers also will be incentivized "with a good price," the report quoted Mr. Aguilera as saying. "Everyone wins, and the Bolivian people win because they'll consume a better quality gasoline with a higher octane rating than what we have now and not environmentally polluting," he said, adding that the law will create thousands of jobs and allow the country to save billions of dollars in the coming years, the report notes. Located in Montero, a town in the eastern Bolivian province of Santa Cruz, Guabira is made up of 1,670 shareholders (sugar cane entrepreneurs), 1,400 industrial workers and more than 1,526 cane growers, the report relays. The report notes that Mr. Aguilera confirmed that the mill plans to invest $40 million over the next two years to take on the "great challenge" of bioethanol production. The mill has already produced more than 6 million liters of ethanol that is in its warehouses and ready to be delivered to YPFB when required, he said, the report adds. As reported in the Troubled Company Reporter-Latin America on July 5, 2018, Fitch Ratings has affirmed Bolivia's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. =========== B R A Z I L =========== OI SA: Shareholders Approve New Board, Capital Raise ---------------------------------------------------- Shareholders in Oi, Brazil's largest fixed-line telecom firm, approved a slate of new board members and a 4 billion real ($964 million) capital raise seen as key to the firm's restructuring process. The shareholders approved Eleazar de Carvalho to serve as new board chairman at the meeting, an important step in sorting out the reorganized firm's governance and formalizing the capital increase. Creditors in Oi approved a plan in December to swap much of their debt for equity. The telecoms firm filed for bankruptcy protection in 2016 after buckling under 65 billion reais of debt. As reported in the Troubled Company Reporter-Latin America on Sept. 10, 2018, S&P Global Ratings assigned its 'B' issue-level rating to Oi S.A.'s (global scale: B/Stable/--; national scale: brA/Stable/--) existing $1.6 billion senior unsecured notes due 2025. S&P also assigned a '4' recovery rating to the notes, which indicates average recovery expectation of 30%-50% (rounded estimate 40%) in the event of payment default. The notes, which Oi issued on July 27, 2018, were part of the company's reorganization plan. Oi issued the notes to exchange part of its obligations that were in default. The issue-level rating on the notes is the same as the global scale issuer credit rating, given that debt is senior unsecured with around a 40% recovery expectation. =================================== D O M I N I C A N R E P U B L I C =================================== EMPRESA DE TELECOM: Moody's Affirms Ba3 CFR; Outlook Now Stable --------------------------------------------------------------- Moody's Investors Service changed the outlook on Empresa de Telecom de Bogota S.A. ESP to stable from negative. At the same time, Moody's affirmed the company's Ba3 corporate family rating and the Ba3 rating on its COP 530 billion senior unsecured notes due 2023. ETB's baseline credit assessment of b1 is unchanged. RATINGS RATIONALE The stabilization of the outlook reflects the recovery in ETB's operating performance and liquidity profile in the past couple of years. ETB's sales have remained flat in the past several years as the development of new businesses (pay TV, mobile) offset the secular decline in fixed telephony, the traditional business of ETB. However, the implementation of cost efficiencies resulted in recent improvements in the company's profitability. In addition, after several years of large capital spending, ETB reduced its investments in 2016-17, which resulted in a lower cash burn and a return to an adequate liquidity profile. ETB's b1 BCA continues to incorporate the company's leading fixed line and broadband market positions in Bogota, its progress in gaining market shares in new business segments, and its comfortable debt maturity profile. Simultaneously, it also continues to reflect ETB's small scale and geographic concentration compared to its main competitors which are larger, more diversified and better capitalized operators. Moody's still sees high competitive pressures in the telecommunications sector in Colombia, and ETB has more limited capacity to invest compared to peers, which could affect its ability to grow. ETB's Ba3 rating reflects its status as a government-related issuer (GRI) and is based upon the following inputs: (i) the company's BCA of b1, which represents Moody's opinion of the GRI's standalone intrinsic strength; (ii) the Baa2 rating of the supporting entity, the Capital District of Bogota; (iii) its estimate of a very high dependence between ETB and the Capital District of Bogota; and (iv) its estimate of a moderate likelihood of extraordinary support from the Capital District of Bogota. These inputs provide a one-notch uplift to ETB's BCA. The Capital District of Bogota (Bogota, Distrito Capital (Colombia), Baa2 negative), ETB's majority shareholder, intends to sell its stake in the company. It launched a sale process, which was nevertheless halted in May 2017 as part of a legal procedure launched by some of ETB's syndicates, with no clear date for a resolution. ETB was able to materially reduce its cash burn during the course of 2017. At the end of June 2018, ETB's cash balance amounted to COP 291 billion and short-term debt was very small at COP 10 billion at the level of a subsidiary. The stabilization of the company's EBITDA and reduction in capital spending enabled it to substantially reduce negative free cash flow and get close to breakeven in 2017. ETB does not have any committed revolving facility at its disposal, but at the same time does not have any large debt maturities in the next few years. The company's debt essentially comprises a COP 530 billion bond maturing in 2023. The ratings could be upgraded, if ETB is able to weather competitive pressures, return to revenue growth, and continue to increase market shares in its new business segments. Specifically, an upgrade could be considered if adjusted EBITDA margins are maintained above 30% and free cash flow to adjusted gross debt improves to above 6%, on a sustainable basis. In order to consider a positive rating action, Moody's would also need to ascertain strong shareholder support and the maintenance of an adequate liquidity profile. The ratings could be downgraded if ETB's liquidity deteriorates and the company's cash balance declines again for a prolonged period of time. Quantitatively, a downgrade would also be considered if EBITDA margins approach 20% or leverage (adjusted gross debt / EBITDA) increases above 4.0x, on a sustainable basis. The methodologies used in these ratings were Telecommunications Service Providers published in January 2017, and Government- Related Issuers published in June 2018. ETB is an incumbent telecommunications service provider offering fixed and mobile, broadband and pay TV services to Colombia's capital and surrounding areas. The company has leading fixed line and broadband market positions in Bogota and, since 2014, has expanded into the mobile and pay TV sectors. In the 12 months to June 2018, ETB's revenues reached approximately COP 1,500 billion (around USD 500 million). The Capital District of Bogota is ETB's controlling shareholder with 86% of the company's capital stock. Approximately 12% of the shares are free float, publically traded on the Colombian stock exchange. EMPRESA GENERADORA: Fitch Affirms BB- IDR, Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed the Long-Term, Foreign- and Local- Currency Issuer Default Ratings (IDRs) of Empresa Generadora de Electricidad Itabo S.A. (Itabo) at 'BB-'. The Rating Outlook is Stable. Additionally, Fitch, has also placed the 'BB-' senior unsecured notes rating on Rating Watch Negative. Itabo's IDRs reflect the electricity sector's high dependency on transfers from the central government to service its financial obligations, a condition that links the credit quality of the distribution companies (EDEs) and generation companies to that of the sovereign. Low collections from end-users, high electricity losses and subsidies have undermined distribution companies' cash generation capacity, exacerbating generation companies' dependence on public funds to cover the gap produced by insufficient payments received from distribution companies. Itabo's ratings also consider its low cost generation portfolio, strong balance sheet and well-structured PPAs, which contribute to strong cash flow generation and bolster liquidity. The Negative Rating Watch on the notes reflects the uncertainty surrounding the near-term financial impacts of a lightning strike that disabled AES Andres B.V.'s (BB-/Rating Watch Negative) generation units on Sept. 3, 2018. Itabo's 2026 notes were issued attached to the AES Andres/Dominican Power Partners (Andres/DPP) issuance, although there exist no cross-guarantees or cross- default clauses between the Itabo notes and the Andres/DPP notes. The attached 2026 issuances consider several detachment events, at which point the risk profiles of the two issuances would be assessed separately. Until that time, however, the ratings are linked. AES Andres maintains insurance for both business interruption and for property damages. However, until the technical assessment of the damage is complete, the related costs and the duration of the plant outage will be unclear. Similarly, the final determination of the event will be necessary in establishing AES Andres's liability under its existing PPAs, which have exceptions for force majeure. KEY RATING DRIVERS Sector Dependence on Government Transfers: Energy distribution losses above 30% in last five years, low levels of collections and important subsidies for end-users have created a strong dependence on government transfers. This dependence has been exacerbated by the country's exposure to fluctuations in fossil-fuel prices and energy demand growth (3.4% CAGR in 2009-2015). The regular delays in government transfers pressure working capital needs of generators and add volatility to their cash flows. Continued Working Capital Pressure: Instability in the company's collection periods continues to result in CFO volatility. Following the quasi-factoring transaction in 3Q15 of USD100 million of accounts receivable, Itabo's days of sales outstanding have rapidly crept back up to around 100 days through year-end 2017. This is in line with Fitch's previous expectations, and further working capital outflows are likely absent another factoring agreement. Historically, Itabo's receivable days exceeded six months. In general, Fitch anticipates delays of between three and four months in payment from the state-owned distribution companies to GenCos. Low Cost Asset Portfolio: Itabo's ratings incorporate its strong competitive position as one of the lower cost thermoelectric generators in the country, ensuring the company's consistent dispatch of its generation units. The company operates two low- cost, coal-fired thermal generating units and a third peaking plant that runs on Fuel Oil #2 and sells electricity to three distribution companies in the country through long term U.S.- dollar-denominated PPAs. The company expects to remain as a base load generator even after a 700MW coal generation project starts operations by 2017. Adequate Credit Metrics: Itabo presents strong credit metrics for the rating category. Gross leverage as of year-end 2017 stood at 1.2x, flat versus December 2016. Similarly, EBITDA remained stable at USD80 million across both years. Fitch expects gradual deterioration in prices to negatively affect revenues and EBITDA through the medium term, resulting in leverage potentially increasing to above 1.5x after Itabo's current PPAs expire. DERIVATION SUMMARY Itabo's ratings are linked to and constrained by the ratings of the government of the Dominican Republic, from whom it indirectly receives its revenues. As a result, Itabo's capital structure is strong relative to similarly rated, unconstrained peers. Orazul Energy Egenor S. en C. por A. (BB/Stable), whose ratings reflects combined results that include its sister company, Aguaytia Energy del Peru S.R.L., has similar installed capacity and is expected to generate around USD100 million in EBITDA annually, with estimated leverage of approximately 5.0x. Egenor benefits from the stability conferred by its asset diversification and the flexibility allowed by its vertical integration. By comparison, Itabo is expected to generate approximately USD75 million, with leverage below 1.5x through the medium term. Fenix Power Peru S.A. (BBB-/Stable) is considered another operational peer to Itabo. It shows high leverage, similar to Egenor, but benefits from its strategic linkage to its parent company, Colbun S.A. (BBB/Stable), resulting in a two-notch uplift from its standalone credit quality. Additionally, its capital structure benefits from a steady deleveraging trajectory in the medium term as its international bond amortizes. KEY ASSUMPTIONS Fitch's Key Assumptions Within the Rating Case for the Issuer Fitch's key assumptions within the rating case for the issuer include: -No material unplanned stoppages in 2017; possibility of continued climatological impacts on an annual basis; -Demand growth of approximately 2%; -Fuel prices to remain low in the near to medium term; -100% of previous year's net income paid as dividends. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - A positive rating action could follow if the DR's sovereign ratings are upgraded or if the electricity sector achieves financial sustainability through proper policy implementation. Developments That May, Individually or Collectively, Lead to Negative Rating Action - A negative rating action would follow if the Dominican Republic's sovereign ratings are downgraded, if there is sustained deterioration in the reliability of government transfers and if financial performance deteriorates to the point of increasing the ratio of debt-to-EBITDA to 4.5x for a sustained amount of time. LIQUIDITY In May 2016, the company issued attached 10-year notes with its sister companies AES Andres and DPP to repay existing debt and extend its maturity profile. The tranche assigned to Itabo totaled USD99.9 million. Fitch expects that lower coal prices (to which contract prices are indexed) coinciding with the expiration of its existing PPAs to limit medium term growth recovery prospects in Itabo's EBITDA. Nevertheless, the company's conservative capital structure with total leverage of 1.2x and coverage of 10.0x confers substantial cushion within its rating category. The company currently holds approximately two thirds of its cash (USD44 million as of YE2017) in U.S. dollars. FULL LIST OF RATING ACTIONS Empresa Generadora de Electricidad Itabo S.A. Fitch has affirmed the following ratings: -- Long-Term, Foreign-Currency IDR at 'BB-'; -- Long-Term, Local-Currency IDR at 'BB-'. The Rating Outlooks are Stable. Fitch has placed the following ratings on Rating Watch Negative: -- Senior unsecured notes due 2026 rated 'BB-'. DOMINICAN REPUBLIC: Dollar 'Stable' but Peso Slides Toward 50-to-1 ------------------------------------------------------------------ Dominican Today reports that Dominican Republic's Central Bank said the exchange rate of the US dollar continues "stable" against the Dominican peso. It said in the country's currency market the dollar costs RD$49.81, compared with the RD$49.75 pesos which sellers fetch, according to Dominican Today. As reported in the Troubled Company Reporter-Latin America on July 19, 2018, Fitch Ratings assigned a 'BB-' rating to Dominican Republic's USD1.3 billion bonds, maturing July 2028. The notes have a coupon of 6%. Proceeds from the issuance will be used for general purposes of the government, including the partial financing of the 2018 budget. =========== M E X I C O =========== MEXICO: Incoming Economy Sec'y Reaches Out to Private Sector ------------------------------------------------------------ Latinx Today reports that the private sector will be crucial to enable Mexico to break years of "mediocre growth," Economy Secretary-designate Graciela Marquez said. "We seek to turn the Economy Secretariat into a driving force for industry, for it to be your voice within government," she said in a speech to the annual Concamin business federation meeting, according to Latinx Today. The report notes that Ms. Marquez said while the secretariat has few resources of its own, it will promote "proactive policies" to attend to the "needs" of businesses starting on Dec. 1, when Andres Manuel Lopez Obrador is sworn in as president. "We acknowledge that the private sector is the engine of economic growth," she said, while adding that Mexico will break its period of "mediocre growth" if businesses "invest and create jobs," Ms. Marquez added. The new government will promote new investments by creating "infrastructure and logistics," decreasing violence, and simplifying regulations, Ms. Marquez said, the report relays. "We have common objectives, because promoting the growth of the private sector also means strengthening the government's capacities, though this does not mean more government," she said, the report discloses. The speech continued a pattern of outreach to the business community by Lopez Obrador following his landslide victory in the July 1 election after a campaign that saw public disputes between the leftist and prominent figures in the Mexican business community, the report relays. The administration will aim to boost domestic consumption to make Mexico's economy less dependent on exports, Mr. Marquez said, the report adds. ====================== P U E R T O R I C O ====================== INSTITUCION AMOR: Plan and Disclosures Hearing Set for Oct. 5 ------------------------------------------------------------- Bankruptcy Judge Edward A. Godoy conditionally approved Institucion Amor Real Corporation's amended disclosure statement, dated Sept. 10, 2018, in support of its chapter 11 plan. Acceptances or rejections of the Plan may be filed in writing 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 Amended Disclosure Statement and the confirmation of the Plan will be held on Oct. 5, 2018 at 9:30 AM at the United States Bankruptcy Court, Southwestern Divisional Office, MCS Building, Second Floor, 880 Tito Castro Avenue, Ponce, Puerto Rico. About Institucion Amor Real Corp. Institucion Amor Real Corporation filed a Chapter 11 petition (Bankr. D. P.R. Case No. 18-01737) on March 29, 2018. In the petition signed by Jose A. Santiago, its president, the Debtor estimated at least $50,000 in assets and $100,000 to $500,000 in liabilities. Judge Edward A. Godoy is the case judge. Nydia Gonzalez Ortiz, Esq., at Santiago & Gonzalez, is the Debtor's counsel. POPULAR INC: Fitch Assigns BB- Rating to $300MM Sr. Unsec. Notes ----------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating to Popular, Inc.'s (BPOP) issuance of $300 million of 6.125% fixed rate senior unsecured notes due Sept. 14, 2023. BPOP expects to use the proceeds towards the redemption of the company's approximately $450 million of 7.00% outstanding senior unsecured notes due July 2019. In May 2018, Fitch affirmed BPOP's Long-Term Issuer Default Rating (IDR) and Viability Rating (VR) at 'BB-' and 'bb-', respectively, removed the Rating Watch Negative, and assigned a Stable Rating Outlook. KEY RATING DRIVERS SENIOR DEBT The rating for the new offering is equivalent to the rating on BPOP's existing senior unsecured debt as the new notes will rank equally in the capital structure. The issuance is not expected to materially alter BPOP's overall funding mix or have a material impact on its leverage. BPOP's ratings reflect the company's leading franchise in Puerto Rico and strong capital levels, offset by a challenging and uncertain operating environment and poor asset quality relative to U.S. mainland banks. Hurricanes Irma and Maria in September 2017 have complicated the Commonwealth of Puerto Rico's efforts to reverse outward migration, generate sustainable economic growth, and address its fiscal and debt imbalances. Additionally, the reduction in the federal corporate tax rate in the U.S. makes Puerto Rico less attractive on a relative basis. Fitch believes rebuilding efforts and a federal aid package from the U.S. government could have a positive short- to medium-term impact on the island's economy. Longer-term prospects for the island's economy, outside the current Outlook horizon, depend heavily on the effectiveness of fiscal and structural reforms. RATING SENSITIVITIES SENIOR DEBT The ratings for BPOP's senior unsecured debt are sensitive to any change in the company's VR. Fitch has assigned the following rating: -- $300 million 6.125% fixed rate senior unsecured notes due Sept. 14, 2023 'BB-'. Fitch rates BPOP as follows: Popular, Inc. -- Long-term IDR 'BB-'; Outlook Stable; -- Senior unsecured 'BB-'; -- Short-term IDR 'B'; -- Short-term Debt 'B'. -- Viability rating 'bb-'; -- Preferred stock 'B-'; -- Support '5'; -- Support floor 'NF'. Popular North America, Inc. -- Long-term IDR 'BB-'; Outlook Stable; -- Senior unsecured 'BB-'; -- Short-term IDR 'B'; -- Short-term Debt 'B'; -- Viability rating 'bb-'; -- Support '5'; -- Support floor 'NF'. Popular Bank -- Long-term IDR 'BB-'; Outlook Stable; -- Long-term deposits 'BB'; -- Short-term IDR 'B'; -- Short-term deposits 'B'. -- Viability rating 'bb-'; -- Support '5'; -- Support floor 'NF'. Banco Popular de Puerto Rico -- Long-term IDR 'BB-'; Outlook Stable; -- Short-term IDR 'B'; -- Short-term deposits 'B'; -- Viability rating 'bb-'; -- Support '5'; -- Support floor 'NF'. Popular Capital Trust I -- Trust preferred 'B-'. Popular Capital Trust II -- Trust preferred 'B-'. Popular North America Capital Trust I -- Trust preferred 'B-'. Popular Capital Trust III -- Trust preferred 'B-' PUERTO RICO: Bond Restructuring Approved in Initial Vote Tally -------------------------------------------------------------- Luis Valentin Ortiz at Reuters reports that creditors overwhelmingly approved a plan to restructure bonds issued by Puerto Rico's insolvent Government Development Bank (GDB), according to preliminary voting results disclosed. The U.S. Commonwealth's Fiscal Agency and Financial Advisory Authority said final results are expected on or around Sept. 19, according to Reuters. The deal would mark the first consensual debt restructuring under the 2016 federal PROMESA Act, which aimed to rescue the island overwhelmed by $120 billion in debt and pension liabilities, the report notes. The report relays that Puerto Rico has been trying to restructure its debt since May 2017 through a form of bankruptcy in U.S. court and has other tentative deals with creditors that combined with the GDB agreement cover about 40 percent of its bonded debt. The next step would be final approval by Puerto Rico's federally appointed financial oversight board and by U.S. Judge Laura Taylor Swain, who the government expects will issue an order around Nov. 6, the report discloses. Under the deal, the GDB, which has about $4 billion of debt, would transfer to a GDB Debt Recovery Authority portions of its loan portfolios, mostly made to municipalities and public agencies, as well as its real estate assets and unencumbered cash, the report says. The authority would issue new bonds backed by a statutory lien on those assets in an amount equal to 55 percent of outstanding debt, the report notes. The report relays that there is pushback from a group of unsecured creditors participating in Puerto Rico's Title III bankruptcy case over the GDB debt restructuring deal. The unsecured creditor committee, or UCC, seeks to halt the agreement, arguing it violates the commonwealth's court-ordered bankruptcy stay and PROMESA, the report notes. The group also raised a flag over the deal's release of potential claims against current and former GDB directors, officers and other representatives, the report relays. The report says that the Puerto Rico government and the oversight board have rejected the committee's arguments and intend to move forward with the GDB deal. The report notes that Mr. Swain, who presides over Puerto Rico's bankruptcy cases, took the arguments made by the UCC under advisement during a court hearing. At the hearing, the UCC reminded the court of its concerns over a tentative deal to restructure Puerto Rico's roughly $16 billion of sales tax-backed or COFINA bonds, the report relays. The creditor committee, which represented the commonwealth in negotiating the COFINA settlement framework, would back out of the deal if Puerto Rico's fiscal plan fails to update its cash flow projections in order to accommodate the terms of the deal, warned Luc Despins of Paul Hastings, the UCC's lead counsel, the report notes. The report discloses that the oversight board is expected to approve a revised version of the commonwealth's fiscal plan later this month. Puerto Rico also has a preliminary debt-restructuring deal with a group of bondholders of its power utility known as PREPA, which has some $9 billion in debt, the report relays. Counsel for the commonwealth's oversight board said it continues to hash out details with these creditors and that PREPA is pushing forward its privatization and concession plans for its generation, distribution and transmission assets, the report notes. If completed, the COFINA, PREPA and the GDB deals will enable Puerto Rico to restructure 40 percent of its bonded debt, said Martin Bienenstock from Proskauer, the board's lead counsel, the report adds. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ('PROMESA'). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21, 2017. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets, as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are on-board as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by Puerto Rico and other instrumentalities. White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative Capital LP. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed an official committee of retirees and an official committee of unsecured creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN AIR: Discontinues Montego Bay-Fort Lauderdale Flights --------------------------------------------------------------- RJR News reports that Caribbean Airlines (CAL) Limited will consolidate its daily operations between Jamaica and Fort Lauderdale to its Kingston hub, effective January 8, 2019. The airline will maintain its daily service between Norman Manley International in Kingston and Hollywood International Airport in Fort Lauderdale, Florida, but will discontinue service between Sangster International in Montego Bay and Fort Lauderdale, according to RJR News. Flights from Montego Bay to Fort Lauderdale will operate as scheduled until January 7, the report notes. Passengers booked after January 8 have been offered a full refund or have been reallocated to other services, the report adds. Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on November 2, 2015, RJR News said that Michael DiLollo, Chief Executive Officer of Caribbean Airlines Limited has quit after just 17 months on the job. The 48-year-old Canadian national, citing personal reasons, resigned with immediate effect. His resignation was accepted by the airline's board of directors. Mr. DiLollo was appointed Caribbean Airlines CEO in May 2014, following the sudden resignation of Robert Corbie in September 2013. In early February 2015, Larry Howai, then Finance Minister, told Parliament that unaudited accounts for 2014 showed the airline made a loss of US$60 million, inclusive of its Air Jamaica operations, and the airline planned to break even by 2017. Mr. Howai told the Parliament that a five-year strategic plan had been completed and was in the process of being approved for implementation. In an interview with the Trinidad & Tobago Guardian in early November 2015, Mr. DiLollo said CAL did not need a bailout just yet. Mr. DiLollo said the airline had benefited from extremely patient shareholders for years and he believed the airline was strategically positioned to break even in three years. ============= U R U G U A Y ============= BANQUE HERITAGE: S&P Alters 'B+' GS Rating Outlook to Stable ------------------------------------------------------------ S&P Global Ratings revised its global scale rating outlook on Banque Heritage (Uruguay) SA to stable from negative. S&P said, "We also affirmed the rating at 'B+'. Additionally, we raised our national scale rating on the bank to 'uyBBB' from 'uyBBB-'. The outlook on this rating is now stable. The upgrade on the national scale follows the implementation of our new national scale criteria, in conjunction with the revised global scale outlook on the bank." S&P said, "The outlook revision reflects our belief that Banque Heritage Uruguay's operations during the last quarter of 2018 will normalize and be in line with our base-case expectations. In addition, the revision reflects our expectation that the bank will be able to shift its focus back to its lending and investment banking activities, while maintaining its current business stability and position. Banque Heritage Uruguay was able to maintain stable operations during the first half of 2018 while the bank was resolving the fraud incident. Additionally, we expect the bank's results to benefit from a higher-than-expected depreciation of the Uruguayan peso, given revenues dollars while costs are mainly in domestic currency." *********** 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 * * *