/raid1/www/Hosts/bankrupt/TCRLA_Public/181101.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, November 1, 2018, Vol. 19, No. 217
Headlines
B A R B A D O S
BARBADOS: New Regulations Coming for Fintech Firms
B R A Z I L
BRENNAND ENERGIA: Moody's Hikes CFR to Ba2, Outlook Stable
BRENNAND INVESTMENTOS: Moody's Hikes CFR to Ba2, Outlook Stable
GENERAL SHOPPING: Moody's Revises Outlook on Caa2 CFR to Stable
GENERAL SHOPPING: Moody's Lowers Sr. Unsec. Rating to Caa2
ITAU UNIBANCO: May Pursue Riskier Loans, CEO Says
C O L O M B I A
GRAN COLOMBIA: Fitch Hikes IDR to 'B', Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Cozies Up to China But Coddles the U.S.
E L S A L V A D O R
AES EL SALVADOR II: Fitch Affirms B- LT IDRs, Outlook Stable
N I C A R A G U A
NICARAGUA: Multiple Shocks Are Affecting Economy, IMF Says
P U E R T O R I C O
BAILEY'S EXPRESS: Accurate Buying Middletown Property for $395K
CARLOS ROBLES TILE: Taps Virgilio Vega as Accountant
DEL MAR ENTERPRISES: Taps C. Conde & Associates as Legal Counsel
GIRARD MANUFACTURING: Amends Plan to Add BP's Unsecured Claim
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B A R B A D O S
===============
BARBADOS: New Regulations Coming for Fintech Firms
--------------------------------------------------
Caribbean360.com, citing a report from media company Barbados
Today, relays that some of the services of financial technology
(fintech) firms in Barbados could soon be regulated.
The Central Bank of Barbados in a joint statement with the
Financial Services Commission (FSC) said both institutions have
recognized that fintech innovation could play a critical role in
safely lowering the costs of financial transactions, while
offering more efficient services to consumers without undermining
the financial system, according to Caribbean360.com.
The island's two top regulators of the financial services sector
said they have established a framework for a regulatory sandbox,
which will provide clarity for businesses offering innovative
financial technology products, services and solutions, the report
notes.
A regulatory sandbox is generally referred to as a mechanism that
allows for the trial of newly developed technologies in a well-
defined and controlled space for a specified duration, the report
relays.
"In a sandbox, the innovative product, service, business model or
delivery mechanism is observed and tested within a restricted
space that protects both consumers and the financial system from
undue risk," the regulators said in their statement obtained by
the news agency.
To this end, they said, a regulatory review panel comprising
nominees from the FSC, the Central Bank and the Director of
Finance and Economic Affairs, will oversee the operations of the
regulatory sandbox, the report relays.
The review panel will, among other things, determine the
regulatory issues for consideration during the sandbox, set the
timeframe of the sandbox and recommend to the respective applicant
what should happen afterwards, the report notes.
The report discloses that to be eligible to participate in the
sandbox, applicants must show the review panel that their products
or services do not easily fall under any existing legislation, or
they must be proposing to use an unproven technology to carry out
a regulated activity.
Economist and Chairman of the FSC, Avinash Persaud, told Barbados
Today this meant that after careful review, the product and
services of fintech firms could be placed under existing or new
legislation, the report relays.
Mr. Persaud said that while this is an effort to protect consumers
from duds and scams, it also "held back new products that lowered
costs of doing banking, investing and transactions and reduced the
variety of new products available to them," the report relays.
Without giving details, Persaud said one candidate was ready to
start testing in a matter of days, adding that the first sandbox
could last between eight to 12 weeks to give regulators an idea
how it could work, the report says.
At the end of the exercise, the review panel will produce a report
that assesses how the activity in the sandbox performed as well as
gauge any new or emerging regulatory issues, the report notes.
If the panel concludes that the service or product does fall
within the scope of existing legislation, applicants can apply for
the relevant license, the report relays. If there is no
prevailing legislation to cover the activity, the panel will
recommend a path forward for the Central Bank or the FSC to
follow, the report says.
He said it could also attract new investors "that may want to try
out a new product in Barbados and if it is successful they might
want to try it out elsewhere," he said, adding that within a year
or so, the country could very well do a "joint sandbox with a
regulator outside Barbados for firms doing cross-border
transaction, for example, the report adds.
===========
B R A Z I L
===========
BRENNAND ENERGIA: Moody's Hikes CFR to Ba2, Outlook Stable
----------------------------------------------------------
Moody's America Latina Ltda. upgraded the Corporate Family Rating
of Brennand Energia S.A to Ba2 from Ba3 on the global scale, and
to Aa3.br from A2.br on the national scale. The outlook is stable
for all ratings.
RATINGS RATIONALE
The upgrade of the ratings reflects the positive track record that
the company has built over the last three years through consistent
improvements in operating performance, despite the negative impact
stemming from poor hydrology conditions affecting hydropower water
reservoirs in Brazil. Since 2015, BESA's cash flow from operations
before working capital change (CFO pre WC) grew consistently to
reach BRL153 million in the last twelve months ended June 2018,
from BRL143 million and BRL133 million in 2016 and 2015
respectively.
To mitigate the costs related to shortfalls of energy generation
in Brazil reflected by a Generating Scale Factor below 1.0, BESA
uses a mixed strategy of contracting an insurance coverage for the
portion of energy in the regulated market, and leave a portion of
energy in the free market uncontracted, to compensate for those
costs. The strategy has been relatively successful in recent
years, despite a slower recovery than anticipated in the GSF
indicator since 2017.
Supported by moderate capital expenditures and a relatively
conservative dividend payout, BESA managed over the last two years
to generate positive free cash flow generation and progressively
reduce its debt. This resulted in the strengthening of the
company's credit metrics as shown by CFO pre WC to debt exceeding
34% and CFO pre WC interest coverage reaching 4.7x in the last
twelve period ended June 30 2018.
At an auction held by Centrais Eletricas Brasileiras SA-Eletrobras
(Ba3 stable) in October 2018, BESA acquired the remaining equity
stake it did not already own in eight wind power projects. The
company was the main operator of those projects but not
consolidating them in its financial statements. The consolidation
of those wind power companies expected in 2018 will result in a
higher leverage for BESA compared to previous years. Moody's
estimates that CFO pre WC to debt on a pro forma basis including
the full consolidation of the wind power assets will fall to
around 20% in 2018, from 34% reported in 2017. However the agency
expects that the additional cash flow contribution and good
operating performance of those assets will contribute to
progressive improvements in BESA's credit metrics going forward.
BESA's ratings continue to be constrained by (i) a small scale
relative to peers as shown by only 453 Megawatts (MW) of installed
capacity to date and (ii) relatively weak corporate governance and
financial policy reflected in lack of publicly disclosed leverage
target and financial reporting on a semi-annual basis.
The stable outlook reflects expectations that BESA will grow cash
flow generation and progressively reduce its leverage such that
CFO pre WC to Debt and CFO pre WC interest coverage ratios remain
above 25% and 3.5x over the next 12 to 18 months.
Moody's views BESA's liquidity profile as adequate. As of June 30
2018, the company had BRL 40 million in available cash compared to
around BRL102 million of debt maturing in the twelve months to
June 2019. The agency understands that the company is currently in
discussion with domestic banks to extend a portion of short term
maturities and fund the acquisition of equity stakes from the
Eletrobras auction. Going forward, Moody's expects BESA will
continue to generate positive free cash flow and maintain good
access to bank debt funding at favorable conditions.
WHAT COULD CHANGE THE RATING UP/DOWN
A rating upgrade could be considered upon material improvements in
BESA's operating performance such that CFO pre WC-to-debt exceeds
35% and CFO pre WC interest coverage remains above 5.0x on a
sustainable basis. Given its close linkages to the local
economic/regulatory environment BESA's credit quality is somewhat
constrained by Brazil's sovereign rating. As such a rating upgrade
could occur upon an upgrade of Brazil's sovereign rating.
A rating downgrade could result from a significant deterioration
in operating performance and credit metrics, such that CFO pre WC
to Debt falls below 15% and CFO pre WC interest coverage remains
sustainably below 3.0x. Perception of a weakening liquidity
profile could also exert negative pressures on the ratings.
Headquartered in Recife, Brazil, BESA is a family-owned holding
company founded in 2006 controlling ten small hydro-power plants
with an installed capacity of 205 Megawatts (MW) and eight wind
power plants totaling 248MW of installed capacity, all in their
operational phase. BESA is controlled by members of the Ricardo
Brennand family, some of which holds minority equity interests in
Brennand Investimentos S.A, a power generation holding company
controlled by another arm of the Ricardo Brennand family. In the
last twelve months ended June 30 2018, BESA reported BRL322
million in revenues, BRL106 million in net income.
The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.
BRENNAND INVESTMENTOS: Moody's Hikes CFR to Ba2, Outlook Stable
---------------------------------------------------------------
Moody's America Latina Ltda. upgraded the Corporate Family Rating
of Brennand Investimentos S.A to Ba2 from Ba3 on the global scale,
and to Aa2.br from A1.br on the national scale. The outlook is
stable for all ratings.
RATINGS RATIONALE
The upgrade of the ratings reflects the positive track record that
the company has built over the last three years through consistent
improvements in operating performance, despite the negative impact
stemming from poor hydrology conditions affecting hydropower water
reservoirs in Brazil. Since 2015, BISA's cash flow from operations
before working capital change (CFO pre WC) grew consistently to
reach BRL134 million in the last twelve months ended June 2018,
from BRL116 million and BRL82 million in 2016 and 2015
respectively.
To mitigate the costs related to shortfalls of energy generation
in Brazil reflected by a Generating Scale Factor (GSF) below 1.0,
BISA uses a mixed strategy of contracting an insurance coverage
for the portion of energy in the regulated market, and leave a
portion of energy in the free market uncontracted, to compensate
for those costs. The strategy has been relatively successful in
recent years, despite a slower recovery than anticipated in the
GSF indicator since 2017.
The moderate capital expenditures owing to the mature nature of
BISA's hydropower assets, and the relatively conservative dividend
payouts of 40-50% also contributed to the company generating
visible free cash flows which in turn allowed the company to
gradually reduce its debt outstanding. In June 2018 BISA reported
BRL120 million in debt which came below the cash flow from
operations generated by the company over the last twelve months.
This resulted in strong credit metrics as shown by CFO pre WC to
debt exceeding 110% and CFO pre WC interest coverage exceeding 16x
in the last twelve period ended June 30 2018.
While Moody's understands that BISA seeks to engage in the debt-
funded expansion of its installed capacity through hydro and/or
wind power projects the agency expects that the company's debt
metrics will remain robust even under such event going forward.
The disciplined approach taken by the company when participating
in energy auction over the recent years provides comfort that
future investments will be well planned and preserve the company's
cash flow generation profile and de-leveraging capacity.
BISA's ratings continue to be constrained by (i) a very small
scale relative to peers as shown by only 155 Megawatts (MW) of
installed hydropower capacity to date, (ii) relatively weak
corporate governance and financial policy reflected in lack of
publicly disclosed leverage target and financial reporting on a
semi-annual basis, and (iii) exposure to foreign currency
volatility through the unhedged Proparco loan, although mitigated
by the loan's long tenor and the company's significant cash
position.
The stable outlook reflects expectations that BISA will maintain a
strong cash flow generation profile notwithstanding plans to
expand installed capacity over the next 12 to 18 months.
Moody's views BISA's liquidity profile as adequate. As of June 30
2018 the company had BRL 93 million in available cash which
compares to around BRL 25 million of debt maturing in the twelve
months to June 2019. While Moody's expects BISA's planned
investments will dent the company's free cash flow going forward,
the agency anticipates that the company will be able to service
the debt on a timely basis through its accumulated cash position
and access bank debt funding at favourable conditions.
WHAT COULD CHANGE THE RATING UP/DOWN
A rating upgrade could be considered upon material improvements in
BISA's operating performance such that CFO pre WC-to-debt exceeds
50% and CFO pre WC interest coverage remains above 8.0x on a
sustainable basis. An upgrade would require more clarity over
BISA's capacity expansion plans. Given its close linkages to the
local economic/regulatory environment BISA's credit quality is
somewhat constrained by Brazil's sovereign rating. As such a
rating upgrade could occur upon an upgrade of Brazil's sovereign
rating.
A rating downgrade could result from a significant deterioration
in operating performance and credit metrics, such that CFO pre WC
to Debt falls below 15% and CFO pre WC interest coverage remains
sustainably below 3.0x. Perception of a weakening liquidity
profile could also exert negative pressures on the ratings.
Headquartered in Recife, Brazil, BISA is a family-owned holding
company founded in 2000 controlling seven operating hydro-power
plants (including five small hydro-power plants) with a total
installed capacity of 155 MW. BISA is controlled by members of the
Ricardo Brennand family, some of which holds equity interests in
Brennand Energia S.A., a power generation holding company
controlled by another arm of the Ricardo Brennand family. In the
last twelve months ended June 30 2018, BISA reported BRL242
million in revenues, BRL104 million in net income.
The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.
GENERAL SHOPPING: Moody's Revises Outlook on Caa2 CFR to Stable
---------------------------------------------------------------
Moody's America Latina downgraded the global scale, foreign
currency corporate family rating of General Shopping e Outlets do
Brasil S.A. to Caa2 from Caa1(national scale, local currency
corporate family rating to Caa2.br from Caa1.br). The rating
outlook was revised to stable from negative.
The following ratings were downgraded:
General Shopping e Outlets do Brasil S.A. -- global scale,
foreign currency corporate family rating to Caa2 from Caa1
(national scale, local currency corporate family rating to
Caa2.br from Caa1.br)
Outlook action:
Outlook revised to stable from negative
RATINGS RATIONALE
The downgrade reflects General Shopping e Outlets do Brasil S.A.'s
reduced portfolio size and continued earnings erosion as a result
of asset sales, rental revenue decline, and high financing costs
associated with the heavy foreign debt load on its already
pressured balance sheet. Additionally, GSB's access to capital
remains limited to assets sales to replenish its cash balance, as
the company's operations generate negative cash flow and do not
have committed lines of credit. The company's tight financial
flexibility along with the accruing deferred interest on its 12%
coupon, US$150 million of subordinated perpetual notes, which are
rated Ca, also constrain the ratings. Consequently, GSB is highly
susceptible to event risk and changes in the macro-environment, in
comparison to its local peers. Furthermore, while Brazil's post-
recession GDP growth has been positive, business conditions remain
challenged by a weaker-than-expected recovery and the political
uncertainty surrounding the outcome of the October 2018 general
elections and the policies of the soon-to-be elected government
towards addressing the country's long-standing fiscal challenges.
These key challenges are partially mitigated by GSB's recent
leverage reduction through a partial cash tender offer of its 10%
coupon, US$164 million of senior unsecured perpetual notes in
August 2018, the company's good portfolio quality with high
occupancy levels, and an acceleration in the retail sector's sales
growth.
As of year to date June 30, 2018, General Shopping reported
approximately R$2.1 billion of total debt and R$1.0 billion of
unrestricted and restricted cash, as a result of the April 2018
sale of a 70% ownership stake in International Shopping Guarulhos,
the portfolio's largest property, for US$282 ($937 million) of net
proceeds. The stake sale reduced GSB's owned share in the
portfolio to 53% from 70%. At the end of the same six-month
period, the company's effective leverage (total debt plus
preferred stock as a percentage of gross assets with a 50% hybrid
equity treatment of the subordinated perpetual liabilities) and
net debt to EBITDA (Moody's adjusted) were 51% and 7.1x,
respectively, compared to 49% and 9.0x in the first half of 2017.
Subsequent to the quarter, in August 2018, the company completed a
US$48 million (approximately R$184 million) tender on its senior
unsecured perpetual notes, which is expected to produce an
annualized interest expense savings of approximately US$5.0
million (R$19.0 million).
Following the cash tender and other anticipated debt amortization
payments, the company's effective leverage is conservatively
projected to decrease and stay at around mid-40% range of gross
assets with net debt to EBITDA in the low to mid-7 times range for
2018 through 2019. Secured debt levels, which were approximately
18% of gross assets at the end of the second quarter, are also
expected to remain at around the same level over the same
timeframe. With approximately R$567 million of unrestricted and
restricted cash on hand by the end of 2018, the company will have
approximately R$253 million of scheduled debt service payments
through 2020. However, the debt maturity schedule excludes the
US$51 million (R$207 million) of accruing deferred interest on the
subordinated perpetual bonds, for which the company exercised its
right to defer in October 2015, as part of its strategic capital
restructuring in 2015.
Positively, the portfolio's occupancy level remains in the mid-90%
range, even during the recent recession. At second quarter's end,
the portfolio occupancy rate stood at 94.2%, compared to 94.5% for
the same period last year. Looking forward, management's strategy
is to improve profitability by: 1) reducing rent discounts and
concessions, 2) increasing the portfolio's occupancy rate to above
95% and 3) expanding the portfolio's footprint through mall
expansions and opportunistic development. However, negative
changes in the business environment could thwart the company's
efforts.
The stable outlook incorporates the moderate improvement in
General Shopping's leverage metrics, following the tender and
other debt amortization, and its current cash position to meet its
near-term obligations over the next 24 months.
Although an upward rating movement is unlikely in the near term,
an upgrade would be predicated upon General Shopping achieving and
maintaining the following criteria on a recurring basis: 1) a
return to profitability with steady earnings growth and generation
of retained cash flow; 2) debt + preferred stock decreasing below
40% of gross assets (excluding the effect of foreign exchange
fluctuations); 3) net debt to EBITDA below 7.0x; and 4) a
substantial reduction of the accruing balance of deferred interest
on the subordinated perpetual bonds.
A downgrade would result from any weakening of the company's
current credit and liquidity profile, resulting in a missed debt
service payment on its senior perpetual bond, another distressed
exchange or a bankruptcy filing that implies a higher than
anticipated loss to its creditors. Furthermore, downward rating
pressure could also be triggered by a weakening in Brazil's
macroeconomic fundamentals, as evidenced by higher inflation
rates, interest rates, or lower economic growth rates.
The last rating action with respect to General Shopping e Outlets
do Brasil S.A. was on October 9, 2017, when Moody's affirmed the
company's corporate family rating at Caa1/Caa1.br and revised the
rating outlook to negative from stable.
Headquartered in Sao Paulo, Brazil, General Shopping e Outlets do
Brasil S.A. [BM&F Bovespa: GSHP3] is a real estate operating
company dedicated to the ownership, development and management of
shopping centers and outlet centers in Brazil. As of June 30,
2018, the total portfolio comprised of 15 properties, encompassing
approximately 351,000 square meters (m2) of gross leasable area
(GLA), of which the company owned share was approximately 53%.
Predominantly concentrated in the state of Sao Paulo and near the
city, the portfolio focuses on serving the Class B and C
consumers.
The principal methodology used in these ratings was REITs and
Other Commercial Real Estate Firms published in September 2018.
GENERAL SHOPPING: Moody's Lowers Sr. Unsec. Rating to Caa2
----------------------------------------------------------
Moody's Investors Service downgraded the senior unsecured rating
of General Shopping Finance Limited to Caa2 from Caa1 and the
subordinated debt rating of General Shopping Investments Limited
to Ca from Caa3. The rating outlook was revised to stable from
negative.
The following ratings were downgraded:
General Shopping Finance Limited -- senior unsecured debt rating
to Caa2 from Caa1
General Shopping Investments Limited -- subordinated debt rating
to Ca from Caa3
Outlook action:
Outlook revised to stable from negative
RATINGS RATIONALE
The downgrade reflects General Shopping e Outlets do Brasil S.A.'s
reduced portfolio size and continued earnings erosion as a result
of asset sales, rental revenue decline, and high financing costs
associated with the heavy foreign debt load on its already
pressured balance sheet. Additionally, GSB's access to capital
remains limited to assets sales to replenish its cash balance, as
the company's operations generate negative cash flow and do not
have committed lines of credit. The company's tight financial
flexibility along with the accruing deferred interest on its 12%
coupon, US$150 million of subordinated perpetual notes, which are
rated Ca, also constrain the ratings. Consequently, GSB is highly
susceptible to event risk and changes in the macro-environment, in
comparison to its local peers. Furthermore, while Brazil's post-
recession GDP growth has been positive, business conditions remain
challenged by a weaker-than-expected recovery and the political
uncertainty surrounding the outcome of the October 2018 general
elections and the policies of the soon-to-be elected government
towards addressing the country's long-standing fiscal challenges.
These key challenges are partially mitigated by GSB's recent
leverage reduction through a partial cash tender offer of its 10%
coupon, US$164 million of senior unsecured perpetual notes in
August 2018, the company's good portfolio quality with high
occupancy levels, and an acceleration in the retail sector's sales
growth.
As of year to date June 30, 2018, General Shopping reported
approximately R$2.1 billion of total debt and R$1.0 billion of
unrestricted and restricted cash, as a result of the April 2018
sale of a 70% ownership stake in International Shopping Guarulhos,
the portfolio's largest property, for US$282 ($937 million) of net
proceeds. The stake sale reduced GSB's owned share in the
portfolio to 53% from 70%. At the end of the same six-month
period, the company's effective leverage (total debt plus
preferred stock as a percentage of gross assets with a 50% hybrid
equity treatment of the subordinated perpetual liabilities) and
net debt to EBITDA (Moody's adjusted) were 51% and 7.1x,
respectively, compared to 49% and 9.0x in the first half of 2017.
Subsequent to the quarter, in August 2018, the company completed a
US$48 million (approximately R$184 million) tender on its senior
unsecured perpetual notes, which is expected to produce an
annualized interest expense savings of approximately US$5.0
million (R$19.0 million).
Following the cash tender and other anticipated debt amortization
payments, the company's effective leverage is very conservatively
projected to decrease and stay at around mid-40% range of gross
assets with net debt to EBITDA in the low to mid-7 times range for
2018 through 2019. Secured debt levels, which were approximately
18% of gross assets at the end of the second quarter, are also
expected to remain at around the same level over the same
timeframe. With approximately R$567 million of unrestricted and
restricted cash on hand by the end of 2018, the company will have
approximately R$253 million of scheduled debt service payments
through 2020. However, the debt maturity schedule excludes the
US$51 million (R$207 million) of accruing deferred interest on the
subordinated perpetual bonds, for which the company exercised its
right to defer in October 2015, as part of its strategic capital
restructuring in 2015.
Positively, the portfolio's occupancy level remains in the mid-90%
range, even during the recent recession. At second quarter's end,
the portfolio occupancy rate stood at 94.2%, compared to 94.5% for
the same period last year. Looking forward, management's strategy
is to improve profitability by: 1) reducing rent discounts and
concessions, 2) increasing the portfolio's occupancy rate to above
95% and 3) expanding the portfolio's footprint through mall
expansions and opportunistic development. However, negative
changes in the business environment could thwart the company's
efforts.
The stable outlook incorporates the moderate improvement in
General Shopping's leverage metrics, following the tender and
other debt amortization, and its current cash position to meet its
near-term obligations over the next 24 months.
Although an upward rating movement is unlikely in the near term,
an upgrade would be predicated upon General Shopping achieving and
maintaining the following criteria on a recurring basis: 1) a
return to profitability with steady earnings growth and generation
of retained cash flow; 2) debt + preferred stock decreasing below
40% of gross assets (excluding the effect of foreign exchange
fluctuations); 3) net debt to EBITDA below 7.0x; and 4) a
substantial reduction of the accruing balance of deferred interest
on the subordinated perpetual bonds.
A downgrade would result from any weakening of the company's
current credit and liquidity profile, resulting in a missed debt
service payment on its senior perpetual bond, another distressed
exchange or a bankruptcy filing that implies a higher than
anticipated loss to its creditors. Furthermore, downward rating
pressure could also be triggered by a weakening in Brazil's
macroeconomic fundamentals, as evidenced by higher inflation
rates, interest rates, or lower economic growth rates.
The last rating action with respect to General Shopping e Outlets
do Brasil S.A. was on October 9, 2017, when Moody's affirmed the
company's corporate family rating at Caa1/Caa1.br and revised the
rating outlook to negative from stable.
Headquartered in Sao Paulo, Brazil, General Shopping e Outlets do
Brasil S.A. [BM&F Bovespa: GSHP3] is a real estate operating
company dedicated to the ownership, development and management of
shopping centers and outlet centers in Brazil. As of June 30,
2018, the total portfolio comprised of 15 properties, encompassing
approximately 351,000 square meters (m2) of gross leasable area
(GLA), of which the company owned share was approximately 53%.
Predominantly concentrated in the state of Sao Paulo and near the
city, the portfolio focuses on serving the Class B and C
consumers.
The principal methodology used in these ratings was REITs and
Other Commercial Real Estate Firms published in September 2018.
ITAU UNIBANCO: May Pursue Riskier Loans, CEO Says
-------------------------------------------------
Carolina Mandl at Reuters reports that Brazilian largest private
lender Itau Unibanco Holding SA may pursue loans with a higher
risk of defaults in the near future as a way to boost the bank's
loan book, Chief Executive Candido Bracher said in a conference
call.
Bracher told analysts that a proposal to increase loan risk
appetite will be submitted to the bank's board, without specifying
when it could be implemented, according to Reuters.
As reported in the Troubled Company Reporter-Latin America on
March 21, 2018, Fitch Ratings has assigned Itau Unibanco Holding
S.A. (IUH) US$750 million subordinated perpetual T1 notes a final
rating of 'B'.
===============
C O L O M B I A
===============
GRAN COLOMBIA: Fitch Hikes IDR to 'B', Outlook Stable
-----------------------------------------------------
Fitch Ratings has upgraded Gran Colombia Gold Corporation's Issuer
Default Rating to 'B' from 'B-'with a Stable Outlook.
The upgrade reflects the company's successful refinancing of its
2020 and 2024 debentures through its USD98 million senior secured
gold-linked notes, the settlement of its 2018 debentures with
shares, and an enhanced mine plan at its Segovia operations
focused on cost reductions and high grade ore bodies, which are
driving cash flow generation. The removal of the sinking funds
which captured essentially 100% of GCM's excess cash flow under
its previous 2018, 2020, and 2024 debentures has allowed the
company to improve its liquidity position, which has enabled the
company to invest in its business and conduct drilling programs in
its Segovia operations in order to optimize its mining plan.
GCM remains a highly speculative credit and is vulnerable to weak
gold prices and a stronger Colombian peso, although some margin of
safety remains. GCM's credit risk lies in 2020 and 2021, with an
expected lower production profile and possibility for lower
grades. Should lower gold prices and a stronger peso coincide with
lower mine output, this would pressure cash flow.
KEY RATING DRIVERS
Single Asset Exposure: GCM conducts approximately 89% of its
mining production from its mines at its Segovia operations, which
generates essentially all of its EBITDA. The Segovia operations
are made up of three operational mines, one processing plant, and
additional artisanal miners that operate on GCM's concessions, an
area of around 9,000 hectares. Cash flow concentration at Segovia
heightens the impact of production stoppages due to accidents,
labor unrest and weather events and is factored into the 'B'
rating. Segovia has an eight-year mine life with 2.3 million
ounces of total resources and high ore grades relative to other
underground gold mines.
Volatile Cost Structure: An additional risk that has constrained
the company's rating is the vulnerability of the company's cost
structure to the value of the Colombian peso. The company's cost
structure declined from $1,325 per ounce in 2013 to $915 per ounce
as of June 30, 2018. Part of the improvement in its cost structure
was the result of a weakening of the peso coupled with higher
output, which lowered fixed costs per unit. A stronger peso would
pressure the company's cost structure. GCM has taken steps to
reduce its overall fixed costs, which has also helped to improve
its cost position. AISC are expected to remain above $900 per
ounce in 2019 as GCM increases its drilling and mining
developments at Segovia.
Cash Flows to be Reinvested: Cash flow generation has benefitted
from increased production levels at Segovia with higher head
grades, higher realized gold prices, and a stable cash costs per
ounce. CFO increased to USD56 million as of June 30, 2018 compared
to USD42 million for 2017 and USD23 million for 2016. Cash flow is
projected to be used to increase exploration activities across
Segovia, extend its reserves and resources, and further explore
and develop the 24 known veins under its title.
Positive FCF Generation: GCM posted positive FCF since 2015,
mostly due to suppression of capex and through fixed costs
reductions in its cash costs. Free cash flow is sensitive to gold
prices, with a $100 change in gold prices to $1,100 per ounce
leading to around a USD10 million negative change in FCF
generation. Based on Fitch's mid-cycle price deck of $1,200 per
ounce, GCM's free cash flow is projected to be positive over the
next four years aided by its reduction in fixed costs.
Manageable Amortization Schedule: GCM has a predictable
amortization schedule under its 2024 senior secured gold-linked
notes that has allowed the company to improve its capital
structure and liquidity position. The gold linked notes require
GCM to set aside of proportion of its monthly gold production. The
total amount of gold to be deposited is 78,394 ounces, which is
less than 10% of the Segovia operations' total projected future
production. Under the terms of the notes, a reference price of
$1,250 per ounce is used on the amortization payment date. If the
actual gold price is above the reference price, GCM is required to
make an additional cash payment representing a gold premium to
investors that does not lead to additional amortization. Any
shortfall in the proceeds from the sale of the gold ounces below
$1,250 per ounce is also paid by GCM. The company engages in gold
hedging contracts in order to reduce the exposure it has to prices
for the gold held in the amortizing trust fund.
Market Conditions Bolster Credit Metrics: GCM has benefited from a
weaker FX rate, stronger gold prices and additional steps by
management to reduce its fixed costs, which have resulted in
improved leverage. GCM recorded gross and net leverage ratios of
1.2x and 0.8x for LTM June 30, 2018 compared to 1.1x and 1.3x for
fiscal 2017. These figures are favorable when compared to fiscal
year end 2014 and leverage ratios were 12.0x and 11.9x,
respectively, when the company failed to meet interest payments
and had to undergo a debt restructuring on Jan. 20, 2016. Fitch
projects the company will exhibit favorable credit metrics over
the projected period, absent significant periods of lower gold
prices.
Commodity Price Exposure: GCM's earnings are highly sensitive to
gold and silver prices, which can cause volatility in cash flow
generation and fluctuations in the capital structure, reinforcing
the importance of maintaining a lower cost of production. The
company's AISC for gold was at USD915/ounce for the six months
ended June 30, 2018 compared to USD918/ounce for 2017. The
increase in AISC was mostly related to higher drilling and
development costs. The global average AISC was USD884/ounce and
for South American producers was USD866/ounce during third-quarter
2017, according to the GFMS Gold Survey 2018.
DERIVATION SUMMARY
Gran Colombia Gold's 'B' rating results from its small scale of
operations, relatively low mine life, lack of commodity
diversification, partially offset by the company's improving
credit profile, increasing cash flow generation, and competitive
all-in sustaining cost position relative to its peers.
GCM's all-in sustaining cost (AISC) of $915/oz is currently
similar to that of Yamana Gold's (BBB-/OS) at $847/oz, Kinross
Gold's (BBB-/OS) at $926/oz, and Nord Gold SE (BB/OS) at
$1,009/oz. GCM's AISC has benefitted from around USD30 million of
fixed cost reductions during 2013 and 2014 and optimization
initiatives at its Segovia operations, coupled with the
devaluation of the Colombian Peso over the last five years, which
denominates over 50% of its cost structure. Buenaventura's (BBB-
/OS) ASIC is much lower at $635/oz as the company benefits from
its significant by-product production, whereas Gran Colombia does
not currently produce significant by-product minerals.
In terms of size, GCM is a small scale gold producer, with its
Segovia operations generating essentially all of the company's
cash flow generation. Segovia is made up of three mines and one
processing mil, with operations consisting of both company
operated areas and an artisanal miner model that contracts local
miners to operate on Gran Colombia's concessions. GCM's production
profile is small at around 214,000 ounces expected for 2018. The
company compares weakly to Buenaventura, which has six mines that
produce gold with a total production of around 420,000 ounces,
among other minerals. GCM produces a small amount of silver, but
essentially lacks mineral and operating diversification compared
to the polymetallic miners located in Peru. GCM's estimated
reserve life is also on the low end at around eight years when
compared to its larger peers such as Yamana (12 years), Kinross
Gold (10 years), and Nord Gold (16 years).
From a financial risk perspective, GCM is weaker than its Peruvian
mining peers and Russian gold peers given the aforementioned high
operational risk coupled with historically neutral/negative free
cash flow despite only moderate levels of capex, and a debt
restructuring completed in January 2016. GCM's improved cost
structure is expected to result in an EBITDA margin around 38-40%
over the next several years, which compares similarly to Nord
Gold's margins of 40-43% and Buenaventura's margins of 26-34%.
GCM's cash position has improved significantly following the
redemption of its 2020 and 2024 debentures with its USD98 million
senior gold linked notes due 2024. However, the company's overall
liquidity and previous 2016 debt restructuring illustrates its
lack of financial flexibility when compared to its higher rated
peers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include:
- Average gold price of USD1,200/ounce during 2018-2021;
- Average silver price of USD15-16/ounce in 2018-2021;
- Production volumes and ore grades in line with management
guidance;
- Capex in line with management guidance;
- Flat Colombia FX rate
KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes that Gran Colombia Gold Corp would
be considered a going-concern in bankruptcy and that the company
would be reorganized rather than liquidated. Fitch has assumed a
10% administrative claim.
GCM's going concern EBITDA is estimated at USD70 million, to
reflect a weaker gold price environment, lower ore grades compared
to the current grades being mined, and a more distressed cost
structure similar to the default scenario in 2015.
An EV multiple of 7x is used to calculate a post-reorganization
valuation and reflects a mid-cycle multiple. The estimate
considers the average EV/EBITDA Multiple for metals and mining
companies provided by PWC of 9.5x, adjusted downward to reflect
the unique and increased operational risks at GCM.
An uplift of the proposed senior secured notes is not warranted as
an overwhelming majority of GCM's assets are located in Colombia
which restricts the notes to RR4.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- The company's small size and lack of diversification limit
GCM's upward rating mobility;
- Manageable, equity-funded acquisitions of other mines to
dissipate single-mine risk with total debt/EBITDA remaining
around 2.5x;
- Diversification into other commodities.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- Deterioration in liquidity position resulting in cash and
equivalents below USD20 million on a prolonged basis;
- Prolonged strikes or mine closures that would halt or
significantly lower gold production;
- Gold prices decline lower than Fitch's mid-cycle assumptions
for a significant period, negatively affecting GCM's weak
liquidity position.
- Large debt-funded acquisitions.
LIQUIDITY
Improved Liquidity Position: GCM reported Fitch adjusted cash and
equivalents of USD32.3 million as of June 30, 2018 compared to
USD15.2 million as of Dec. 31, 2017 and USD3.3 million as of Dec.
31, 2016. Fitch includes USD3.8 million of gold in the company's
senior secured gold-linked notes trust account for its liquidity
and leverage metrics, as this account will be used solely for debt
repayment. Fitch projects GCM to maintain at least USD20 million
of cash during 2019.
FULL LIST OF RATING ACTIONS
Fitch has upgraded the following ratings:
Gran Colombia Gold Corp.
-- Long-Term Foreign Currency IDR to 'B' from 'B-';
-- Long-Term Local Currency IDR to 'B' from 'B-';
-- Senior secured notes to 'B'/'RR4' from 'B-'/'RR4'.
The Outlook is Stable.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Cozies Up to China But Coddles the U.S.
-----------------------------------------------------------
Dominican Today reports that the Dominican government is about to
embark on the first official mission to China, with president
Danilo Medina's visit, according to the Dominican Govt.
It said the president will arrive November 2 to the Asian nation
and will maintain an "intense agenda that we expect will be very
productive" with Chinese government officials, including a meeting
with president Xi Jinping and other authorities, according to
Dominican Today.
Part of the agenda includes the inauguration of the Dominican
embassy in Beijing, the report notes.
Balancing Act With The U.S.
Foreign minister Miguel Vargas stressed the strong Dominican-US
ties, especially on trade, the report relays.
In that regard, U.S. ambassador Robin Bernstein cited the long
history between both nations, which she hopes will continue, the
report discloses.
"We respect the sovereignty of each country to make their own
decisions," said the diplomat when asked about Beijing-Santo
Domingo relations, a decision that prompted the US State Dept. to
call her for consultation just a day after assuming the post in
September, the report relays.
The diplomat said she will work hard on security, human rights and
the economy, on which "the Dominican government is doing a
phenomenal job on these issues," the report notes.
Objectives of Medina's Visit
With the China visit, the Government's goal is to ink cooperation
agreements in areas such as tourism, agriculture and free zones,
the report adds.
As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's
Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.
====================
E L S A L V A D O R
====================
AES EL SALVADOR II: Fitch Affirms B- LT IDRs, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed AES El Salvador Trust II's (AES SLV)
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDRs) at 'B-'. The rating action affects USD310 million in
aggregate of notes outstanding due 2023, affirmed at 'B-'/'RR4'.
The Rating Outlook is Stable.
AES El Salvador is a special-purpose vehicle (SPV) located in New
York that was created to issue USD310 million of notes on behalf
of AES El Salvador Group. AES El Salvador's ratings are based on
the combined credit strength of the operating companies that
guarantee its debt and reflect the group's strong market position,
low business risk profile, and its predictable cash flow
generation from users. The ratings also reflect the exposure to
regulatory risk and to sovereign risk through subsidies. A
significant portion of AES El Salvador's cash flow generation
comes from government subsidies, which exposes the company to El
Salvador's creditworthiness and payment ability.
KEY RATING DRIVERS
Cash Flow Exposure to Government Subsidies: AES SLV's ratings are
linked to the sovereign rating of El Salvador due to operational
exposure to regulatory instability and a reliance on subsidies. In
2017, the company invoiced approximately USD35 million of
subsidized revenues, or 30%-40% of EBITDA. A higher proposed
government budget allocation for electricity subsidies to AES
SLV's operating companies for 2019 will likely be closer to USD50
million for the year, if approved. Historically, delays in receipt
of payment from the government have resulted in significant
working capital outflows that pressure a relatively tight
liquidity position. The increasing proportion of cash flow
stemming from the government further emphasizes the rating linkage
between AES SLV and the sovereign.
Capital Structure Partially Mitigates Liquidity Pressure: With
nearly 95% of its financial debt maturing in 2023, AES SLV's near-
term financial obligations are essentially limited to operating
costs and interest. Consequently, if there are liquidity
shortfalls, they should be sufficiently small to facilitate access
to short-term credit. The company already maintains a committed
credit facility of USD16.5 million, of which 7 million remained
undrawn as of December 2017. According to the issuer, it has
additional debt capacity of USD36 million under its covenant.
Some Political Uncertainty Remains: Fitch views changes in the
government's budgetary policies -- most critically the inclusion
of energy subsidies within the annual budget -- as supportive of
improved operational stability for DisCos. Although the country's
near-term financing needs remain significant with a USD800 million
bond set to mature in 2019, there has been a marked reduction in
political polarization since the default on pension-related debt
obligations in May 2017. Moreover, Fitch believes that the
political and social incentives for supporting the continued
viability of the Salvadoran energy sector are significant.
Nevertheless, the pending approval of the 2019 budget, in
conjunction with upcoming presidential election scheduled for
February 2019, creates the potential for renewed financial
volatility and political deadlock, consistent with the country's
rating level.
Strong Market Position: Although distribution service territories
are not exclusive and distributors are free to compete for
customers, the risk of new competition is low given that
distribution companies possess significant economies of scale that
make it inefficient for more than one company to operate in any
particular geographic area. The ratings factor in the strong
market position of AES El Salvador as the largest electric
distribution group in the country. The group serves approximately
1.3 million customers and covers 80% of El Salvador's electricity
distribution area. The group supplied 75% of the total energy
demand in the country during 2017. The company's operations are
considered efficient compared with other distribution companies in
the region. In 2017, energy losses were 10.1% (2016: 9.9%).
DERIVATION SUMMARY
AES SLV benefits from EBTIDA margins in line with its regional
peers Energuate Trust (BB/Stable), Eletropaulo Metropolitana
Electricidade de Sao Paolo S.A. (BB+/Stable), and Elektra Noreste
S.A. (BBB/Stable), as well comparatively better rates of technical
and non-technical losses. AES SLV also presents strong financial
metrics relative to its rating category with gross leverage of
4.0x at year-end 2017 and interest coverage of 3.4x. By
comparison, Elektra reported leverage of 3.5x and coverage of
5.8x, while Energuate reported 5.5x leverage and 3.8x coverage for
the same period.
AES SLV's rating is principally constrained by its exposure to the
Salvadoran government (B-/Stable) in the form of subsidy receipts.
Historically, the company has faced cash flow volatility stemming
from delayed payment by the government. In 2017, this dynamic
reached critical levels following the government's restricted
default on local pension obligations, with AES SLV accumulating
more than 10 months of arrears in subsidies. Although budgetary
amendments have subsequently improved the government's payment
schedule on these obligations, the country's weak operating
environment conditions and AES SLV's direct exposure to government
cash flows will continue to limit AES SLV's rating to the
sovereign.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
-- Demand growth of approximately 2%, roughly in line with GDP;
-- Subsidy amounts are included in the government's budget;
possible month-to-month volatility, but all amounts paid by year-
end;
-- About USD35 million of annual capex through the rating
horizon, in line with historical levels;
-- 100% of previous year's net income paid in dividends;
-- Energy losses of around 10% through the rating horizon;
-- Three-month lag in cost passthroughs results in slightly
tighter margins in 2018, recovering thereafter in line with
Fitch's midcycle fuel price assumptions.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
AES El Salvador's ratings could be positively affected by clear
signals of sustainable independence from the government funding,
indications of reliable government receipts through the medium
term, or further positive sovereign rating actions.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
AES El Salvador's ratings could be negatively affected by any
combination of the following factors: long-term failure to resolve
the issue of subsidy funding sources or effectively pass through
shortfalls to the end-user; shortages of electricity supply
resulting in lower consumption and lower cash flow generation;
further political or regulatory intervention that negatively
affects the company's financial performance; or increased credit
risk associate with the government that could affect its ability
to pay energy subsidies.
LIQUIDITY
AES El Salvador's liquidity is supported by its cash on hand,
which as of year-end 2017 was approximately USD37 million, and
USD50 million of available bank credit facilities, of which
USD16.5 million are committed. Although working capital has
stabilized in 2018 with the inclusion of electricity subsidies in
the government budget, Fitch's rating case assumptions include the
possibility of interim cash flow variability due to subsidy
payment delays. In addition to its existing credit facilities, the
company also has the capacity to support liquidity by reducing
capex for up to two years with limited impact on their operations.
The only financial debt of the company is the USD310 million
unsecured bond, which matures in 2023. This favorable debt
schedule provides the company with a critical degree of financial
flexibility during operationally challenging periods.
FULL LIST OF RATING ACTIONS
Fitch has affirmed the following ratings:
AES El Salvador Trust II
- Long-Term, Foreign-Currency Issuer Default Rating at 'B-';
- Long-Term, Local-Currency Issuer Default Rating at 'B-';
- Senior unsecured debt rating at 'B-'/'RR4'.
=================
N I C A R A G U A
=================
NICARAGUA: Multiple Shocks Are Affecting Economy, IMF Says
----------------------------------------------------------
An International Monetary Fund (IMF) team led by Roberto Garcia-
Saltos visited Managua from October 24-30 to take stake stock of
recent economic developments. The mission held fruitful
discussions with senior government officials, representatives from
the private sector, and the donor community. At the end of the
visit, Mr. Garcia-Saltos issued the following statement:
"Multiple shocks are affecting the Nicaraguan economy. The
political instability since April has affected consumer and
investor confidence. While some sectors were only temporarily
affected by the disruptions, such as transportation, retail and
the service sector, other activities including tourism, and
construction see lasting impacts from a reduction in demand. The
contraction in formal employment, the retrenchment in FDI, and the
reduction in credit to the private sector could contribute to
exacerbate the effect of the shocks.
"Against this backdrop, the mission forecasts a decline of 4
percent in real GDP in 2018. A fall in disposable income due to
continued jobs losses, and the reduction in bank credit are
projected to lead to a drop in private consumption and investment.
The consolidated public sector (CPS) deficit for 2018 is projected
to increase by 2.4 percentage points to 4.6 percent of GDP.
"There are a few positive signs however. The authorities' efforts
to support commercial banks' continued liquidity are commendable.
Measures to contain the expansion in public expenditures to
partially offset the tax revenue shortfalls because of the
economic downturn are also positive.
"The main challenge for 2019 and beyond is to preserve
macroeconomic and financial stability. Addressing medium-term
fiscal challenges and undertaking structural reforms -- which are
unavoidable to safeguard fiscal sustainability -- require
obtaining broad support. Policies to restore private sector
confidence and to prevent the creation of negative feedback loops
resulting from lower activity and employment, deterioration in
asset quality, credit contraction, and deposit outflows are
essential to promote economic recovery and offset an increase in
poverty. In the meantime, the authorities are expected to adopt
measures to mitigate identified risks affecting the economy."
The mission has agreed to conduct the next Article IV consultation
during the first half of 2019.
As reported in the Troubled Company Reporter-Latin America on
June 29, 2018, Fitch Ratings has downgraded Nicaragua's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'B' from 'B+'. The
Outlook is Negative.
======================
P U E R T O R I C O
======================
BAILEY'S EXPRESS: Accurate Buying Middletown Property for $395K
---------------------------------------------------------------
David Allen, the plan administrator appointed for Bailey's Express
Inc.'s bankruptcy estate, asks the U.S. Bankruptcy Court for the
District of Connecticut to authorize the sale of the commercial
real property located at 11 Industrial Park Road, Middletown,
Connecticut to Accurate Logistics, LLC, for $395,000, subject to
overbid.
For its services, the Broker, Trevor Davis Commercial Real Estate,
LLC, will receive a commission of 6% of the purchase price, which
will be paid from the proceeds of the Sale at Closing, 3% of which
will be paid to the Purchaser's Broker, NAI James E. Hanson.
Since its retention, the Broker has engaged in a marketing process
that has generated interest from over ten parties interested in
purchasing the Property. The Plan Administrator asks authority to
pay the commission from the proceeds of the sale at closing.
After considering the alternatives, the Plan Administrator has
determined that it is of the best interests of the creditors to
enter into a Real Estate Purchase Agreement dated Sept. 26, 2018
for the sale of the Property as set forth in the Purchase
Agreement to the Purchaser for a purchase price of $395,000, free
and clear of liens, claims, encumbrances and interests other than
permitted encumbrances. The Purchaser has provided a good faith
deposit of $39,500.
According to a Title Report dated Sept. 14, 2018, the Connecticut
Development Commission, now known as the Department of Economic
and Community Development, recorded a mortgage in the amount of
$3200 on June 5, 1973. On information and belief, this mortgage
has been satisfied and will be released by the time of the sale of
the Property. There are no other mortgages, liens or
encumbrances, other than Permitted Encumbrances, recorded on the
Property.
The Plan Administrator has further determined that it is in the
best interests of the estate to conduct an auction to solicit
higher and better bids for the Property on terms substantially
similar to those contained in the Purchase Agreement. The
proceeds of the Sale will be deposited in the distribution account
(as that term is defined in the Plan) and disbursed in accordance
with the Plan.
The assets remaining for the Plan Administrator to administer are
two adversary proceedings seeking the recovery of preferential
transfers, the collection of the claim against The John M. Hall
Marital Trust and enforcement of two default judgments entered in
adversary proceedings commenced by the Plan Administrator. All
non-essential records have been destroyed. All other records will
be transferred to storage accessible to the Plan Administrator.
The Sale as set forth in the Purchase Agreement is in the best
interests of the Debtor's bankruptcy estate, creditors and other
parties in interest since the sale will maximize the value
received for the Property.
The sale will be subject to higher and better offers. The
Property will be sold pursuant to the procedures to be established
by the Court pursuant to its Order (a) Authorizing and Approving
Bidding Procedures, (b) Scheduling Bid Deadline, Auction Date and
Sale Hearing, (c) Authorizing and Approving the Payment of a
Breakup Fee, (d) Approving the Form and Manner of Notice Thereof
and (e) Granting Related Relief, All in Connection with the Sale
of the Property.
To preserve the value of the Property, it is critical that the
Debtor closes the Sale as practical after all closing conditions
have been met or waived. Accordingly, it respectfully asks that
the Court waives the 14-day stay periods to the minimum amount of
time needed by any objecting party to file its appeal to allow the
Sale to close as provided pursuant to the terms of the Purchase
Agreement.
About Bailey's Express
Headquartered in Middletown, Connecticut, Bailey's Express --
http://www.baileysxpress.com/-- is a Connecticut-based less than
truckload carrier. It provides service across the nation and is
dedicated in helping Connecticut, Massachusetts and Rhode Island
companies market their products throughout the U.S. including
Hawaii and Alaska. It has distribution points in Charlotte,
Dallas, Denver, Easton, Fontana, Indianapolis, Jacksonville,
Memphis, Neenah, Phoenix, Salt Lake City and Toledo. It also
provides service to Mexico, Puerto Rico & Canada.
Bailey's Express filed for Chapter 11 bankruptcy protection
(Bankr. D. Conn. Case No. 17-31042) on July 13, 2017. In the
petition signed by CFO David Allen, the Debtor estimated its
assets and liabilities at between $1 million and $10 million.
The Hon. Ann M. Nevins presides is the case judge.
Elizabeth J. Austin, Esq., and Jessica Grossarth Kennedy, Esq., at
Pullman & Comley, LLC, serve as the Debtor's bankruptcy counsel.
No creditors' committee has been appointed in the case.
On Jan. 12, 2018, the court confirmed the Debtor's Chapter 11 plan
of liquidation. Pursuant to the plan, David Allen was deemed the
plan administrator for the Debtor's estate.
On Nov. 17, 2017, the Court appointed Trevor Davis Commercial Real
Estate, LLC, as real estate broker.
CARLOS ROBLES TILE: Taps Virgilio Vega as Accountant
----------------------------------------------------
Carlos Robles Tile & Stone Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire an
accountant.
The Debtor proposes to employ Virgilio Vega III, a certified
public accountant, to provide business consulting services to
develop new strategies; assist in the preparation of monthly
operating reports; and provide tax consulting services.
Mr. Vega will charge an hourly fee of $150 for his services.
In a court filing, Mr. Vega disclosed that he is "disinterested"
as defined in section 101(14) of the Bankruptcy Code.
Mr. Vega maintains an office at:
Virgilio Vega III, CPA
P.O. Box 19180
San Juan, PR 00910
Phone: 787-306-9199
Email: virgiliocpa@gmail.com
About Carlos Robles Tile & Stone
Carlos Robles Tile & Stone, Inc., operates a store that sells
tiles, stones and related materials. Its business and office are
located at 383 Ave. Cesar Gonzalez, Urb. Eleanor Roosevelt, San
Juan, Puerto Rico.
Carlos Robles Tile & Stone previously sought bankruptcy protection
on March 19, 2015 (Bankr. D.P.R. Case No. 15-02004).
Carlos Robles Tile & Stone sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D.P.R. Case No. 18-05145) on Sept. 5,
2018. In the petition signed by Carlos Robles Marin, president,
the Debtor disclosed $486,000 in assets and $3,517,613 in
liabilities. Judge Mildred Caban Flores presides over the case.
The Debtor tapped the Law Offices of Luis D. Flores Gonzalez as
its legal counsel.
DEL MAR ENTERPRISES: Taps C. Conde & Associates as Legal Counsel
----------------------------------------------------------------
Del Mar Enterprises Inc. received approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire C. Conde
& Assoc. as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; represent the Debtor in negotiation with its
creditors to assist in the liquidation of its assets or in the
formulation of a plan of reorganization; and provide other legal
services related to its Chapter 11 case.
C. Conde & Assoc. will charge at these hourly rates:
Carmen Conde Torres, Esq. $300
Associates $275
Junior Attorney $250
Legal Assistant $150
The firm received a retainer in the sum of $10,000 from the
Debtor.
Carmen Conde Torres, Esq., principal attorney at C. Conde & Assoc.
who will be handling the case, disclosed in a court filing that
she is "disinterested" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Carmen D. Conde Torres, Esq.
C. Conde & Assoc.
254 San Jose Street, 5th Floor
San Juan, PR 00901-1523
Tel: 787-729-2900
Fax: 787-729-2203
E-mail: notices@condelaw.com
E-mail: condecarmen@condelaw.com
About Del Mar Enterprises
Del Mar Enterprises Inc. is a real estate company that owns in fee
simple a commercial real estate located at Aguadilla, Puerto Rico,
consisting of a two-storey commercial building with an appraised
value of $1 million. The company also owns a lot of land located
at Barrio Borinquen Aguadilla, Puerto Rico having an appraised
value of $100,000. Del Mar Enterprises previously filed for
bankruptcy protection on April 9, 2013 (Bankr. D.P.R. Case No.
13-02735).
Del Mar Enterprises sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. P.R. Case No. 18-05767) on Oct. 1,
2018.
In the petition signed by Edgardo L. Delgado Colon, president, the
Debtor disclosed $1,102,823 in assets and $2,166,875 in
liabilities. Judge Mildred Caban Flores presides over the case.
The Debtor tapped C. Conde & Assoc. as its legal counsel.
GIRARD MANUFACTURING: Amends Plan to Add BP's Unsecured Claim
-------------------------------------------------------------
Girard Manufacturing, Inc., filed with the U.S. Bankruptcy Court
for the District of Puerto Rico its first amended disclosure
statement explaining its proposed chapter 11 plan.
The latest plan discloses that all lawsuits wherein Debtor was a
defendant were stayed pursuant to Section 362 of the Bankruptcy
Code when the chapter 11 case was filed. Debtor had three lawsuits
pending at the time of the bankruptcy filing wherein Debtor was
the plaintiff and as such were not stayed pursuant to Section 362
of the Bankruptcy Code.
The plan also adds the allowed unsecured claim of Banco Popular in
Class 7 in the total amount of $3,675,344.16 related to the
corporate guarantee issued by Debtor for the mortgage loan of the
related company The Little Tower Industrial Park. This claim will
not be paid but Debtor will continue to guarantee the subject
loan.
A full-text copy of the First Amended Disclosure Statement is
available for free at:
http://bankrupt.com/misc/prb17-05975-11-105.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.
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2018. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
.
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