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/raid1/www/Hosts/bankrupt/TCRLA_Public/190108.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 Tuesday, January 8, 2019, Vol. 20, No. 5 Headlines B A H A M A S ARTOC BANK: Hires PFK Bahamas as Liquidator B A R B A D O S ROCK HARD: Loses Latest Round in CCJ Case Over Tariffs C A Y M A N I S L A N D S FIA LEVERAGED: Creditors' Proofs of Debt Due Jan. 16 FLETCHER INCOME: Creditors' Proofs of Debt Due Jan. 16 J A M A I C A JAMAICA: Credit Decline Seen in September Quarter P A R A G U A Y PANAMA: Remain Among the Dynamic Economies Despite Slowing in 2018 P U E R T O R I C O EMPRESAS CARRION: Hires Francisco J. Ramos Gonzalez as Attorney HARAS SANTA: Expected to Make Payments Totaling $905K Under Plan V E N E Z U E L A VENEZUELA: Oil Exports Fall to Almost Three-Decade Lows VENEZUELA: Maduro Extends Decree Banning Layoffs Until 2020 - - - - - ============= B A H A M A S ============= ARTOC BANK: Hires PFK Bahamas as Liquidator ------------------------------------------- Hon. Justice Keith Thompson ordered the appointment of Renee D. Lockhart as the official liquidator of Artoc Bank & Trust Company Limited, in liquidation in place of Basil L. Sands who died on July 19, 2018. The liquidator can be reached at: Renee D. Lockhart PFK Bahamas Pannell House, 44 Elizabeth Avenue Nassau, Bahamas =============== B A R B A D O S =============== ROCK HARD: Loses Latest Round in CCJ Case Over Tariffs ------------------------------------------------------ Caribbean360.com reports that Barbadian company Rock Hard Cement has lost a legal battle to get a lower tariff on imported cement. The Caribbean Court of Justice (CCJ) has dismissed the company's application for the removal of an injunction, granted earlier this year, prohibiting Barbados from lowering the tariff on imported cement from 60 per cent to five per cent, according to Caribbean360.com. Earlier this year, Trinidad Cement Limited (TCL) and its Barbados subsidiary Arawak Cement Company Limited filed an application for special leave to commence proceedings against Barbados and Rock Hard Cement, over the government reducing the Common External Tariff (CET) on hydraulic cements bought from outside of CARICOM. TCL and Arawak subsequently filed an application for interim relief in reaction to Rock Hard importing cement from Turkey Barbados' classification of it as "other hydraulic cement" and levying a tariff of five per cent, the report notes. In July, CCJ President Justice Adrian Saunders issued an interim measure ordering Barbados to "restore and enforce" the 60 per cent import duty, the report relays. Rock Hard Cement was seeking to have that interim order discharged -- a move that TCL and Arawak Cement, the claimants, was fighting, the report says. In an affidavit in support of the application to have the measure discharged, Executive Chairman of Rock Hard Mark Maloney said it "is spelling disaster" for Rock Hard and its ancillary group of companies by causing irreparable harm, the report notes. Rock Hard argued that its business was established and its business model and prices derived on the basis of a five per cent rate of duty, the report discloses. It said it was "unable to sustain imports at a rate of 60 per cent, and if the order continues then Rock Hard and its related companies will have to consider ceasing business which will result in losses such as job cuts," the report says. But in its ruling on the matter, the CCJ concluded: "The claimants' resistance to the application is well founded. There is no change of circumstances or good and sufficient reason to vary or cancel this court's order for interim measures," the report notes. However, a determination on exactly what classification of hydraulic cement Rock Hard Cement is importing for its local operations, is still pending, the report adds. ========================== C A Y M A N I S L A N D S ========================== FIA LEVERAGED: Creditors' Proofs of Debt Due Jan. 16 ---------------------------------------------------- The creditors of FIA Leveraged Fund are required to file their proofs of debt by Jan. 16, 2019 to be included in the company's dividend distribution. The company's liquidator is Roy Balley. For enquiries contact: Sophie Hill EY Cayman Ltd 62 Forum Lane, Camana Bay P.O. Box 510, Grand Cayman Cayman Islands, KY1-1106 Tel. No: +1 (242) 502 6067 Fax: +1 (242) 502 6095 E-mail: sophie.l.hill@ey.com FLETCHER INCOME: Creditors' Proofs of Debt Due Jan. 16 ------------------------------------------------------ The creditors of Fletcher Income Arbitrage Fun Ltd. are required to file their proofs of debt by Jan. 16, 2019 to be included in the company's dividend distribution. The company's liquidator is Roy Balley. For enquiries, one may contact: Sophie Hill EY Cayman Ltd 62 Forum Lane, Camana Bay P.O. Box 510, Grand Cayman Cayman Islands, KY1-1106 Tel. No: +1 (242) 502 6067 Fax: +1 (242) 502 6095 E-mail: sophie.l.hill@ey.com ============= J A M A I C A ============= JAMAICA: Credit Decline Seen in September Quarter ------------------------------------------------- RJR News reports that the demand for credit declined during the September quarter. According to the Bank of Jamaica's (BOJ) Credit Conditions Survey Report released, credit demand, as measured by the Credit Demand Index (CDI) for the three months, declined relative to the June quarter, according to RJR News. The CDI for the quarter was 95.2 down from 106.3 in the previous three months, the report relays. The Central Bank said the contraction stemmed from reduced demand for personal and business loans, the report discloses. Lenders reported that the decline in personal loans was evident in the demand for credit cards, debt consolidation loans and other secured loans, the report relays. The decline in demand in the September quarter was reflected in lower demand for local and foreign currency loans, the report notes. Meanwhile, the Bank of Jamaica report says the fall in demand for local currency loans was mostly evident in the Tourism, Manufacturing, Construction & Land Development as well as the Distribution sectors, the report says. The fall in foreign currency loan demand stemmed from the Distribution sector, the report discloses. The overall fall in local and foreign currency credit demand reflected a decline for credit by micro and small businesses, the report adds. =============== P A R A G U A Y =============== PANAMA: Remain Among the Dynamic Economies Despite Slowing in 2018 ------------------------------------------------------------------ The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Panama on Dec. 12, 2018. Despite slowing in 2018, Panama is expected to remain among the most dynamic economies in the region with strong fundamentals. Growth is estimated at 3.7 percent in the first half of 2018 (compared to 5.4 percent a year ago), reflecting a sharp deceleration in key sectors including construction, which was affected by a prolonged strike in April/May. The unemployment rate increased marginally to 5.8 percent in March 2018 from a year ago, reflecting less dynamic activity. Inflation remains subdued at 0.8 percent (year on year) in September 2018, (compared to 0.5 percent in December 2017) despite supply shocks that have increased food and fuel prices. The overall deficit of the Non-Financial Public Sector (NFPS) reached 1.6 percent of GDP in the first half of 2018 (compared to deficit of 0.2 percent of GDP in the first semester of 2017), due to accelerated budget execution to support the economic weakening. The external current account deficit stood at 8.0 percent of GDP in 2017, as a significant increase in oil imports (fueled by higher international oil prices) was offset by strong service exports, driven partly by additional revenue from the expanded Panama Canal. Credit growth has decelerated as financial conditions have started to tighten. The outlook remains positive, albeit set against heightened downside risks. Growth is projected at 4.3 percent in 2018, but to rebound to 6.3 percent in 2019 supported by the opening of a large mine (Minera Panama) and a recovery in construction, and subsequently converge to its potential of 51/2 percent over the medium term. Inflation is expected to average about 2 percent. The external current account deficit, mostly covered by FDI, is expected to reach 9 percent of GDP in 2019 and gradually decline to about 51/2 percent of GDP over the medium term. Fiscal policy is expected to remain guided by the amended Fiscal Responsibility Law (FRL). The overall NFPS deficit is projected to increase to 2 percent of GDP in 2018-19 and gradually fall to 11/2 percent of GDP over the medium-term, keeping public debt sustainable and below the FRL indicative of target of 40 percent of GDP. Key risks relate to setbacks in implementing the remaining Financial Action Task Force (FATF) recommendations and making continued progress on tax transparency, continued oversupply in the domestic property markets, delays in completing the large mining project (following the recent Supreme Court ruling which creates uncertainty about some elements of the contract), political uncertainty ahead of the upcoming elections; a sharper-than-expected tightening of global financial conditions, and rising trade protectionism. Executive Board Assessment Executive Directors commended Panama's impressive growth performance and noted that macroeconomic fundamentals remain solid, with growth set for a rebound in the near term. Directors considered that, while the outlook remains positive, the balance of risks is tilted to the downside. Against this background, they called for sustained policy efforts to strengthen the AML/CFT framework and enhance tax transparency to preserve Panama's competitive advantage as a regional financial center. They also recommended measures to enhance financial sector resilience and reforms to facilitate continued robust and inclusive growth. Directors welcomed the recent good progress on technical compliance with FATF standards, bringing Panama on par with its peers, while underscoring the importance of effective implementation of the Anti Money Laundering/Combatting the Financing of Terrorism (AML/CFT) framework. In this context, they encouraged the authorities to continue strengthening supervisory capacity for AML/CFT oversight, including through risk-based approaches, and further addressing AML/CFT risks to which Panama is exposed. Directors emphasized the need to promptly address the remaining shortcomings in the AML/CFT framework, including making tax crimes a predicate offense to money laundering and ensuring the availability of timely and accurate beneficial ownership information of entities incorporated in Panama. In addition, the authorities should advance the implementation of tax transparency initiatives to ensure a successful Global Forum assessment against enhanced standards. Directors were encouraged by the authorities' continued commitment to a prudent fiscal stance and agreed on the importance of preserving the track record of fiscal discipline to keep the public debt-to-GDP ratio on a downward trajectory. They concurred that the revised deficit ceilings provide the budgetary space to accommodate additional capital spending, given the softening activity this year, but recommended a gradual withdrawal of the stimulus in the near term as growth gathers pace. Directors also saw scope for raising tax revenue through improvements in revenue administration to support key social expenditures. They welcomed modifications to the social fiscal responsibility law, which simplified and enhanced the transparency of the fiscal rule; and noted the approval of a law to establish a fiscal council, which further bolsters the fiscal framework. Directors noted the stability of the financial system and the continued progress in financial sector reforms, including the alignment of prudential regulations with Basel III. They urged the authorities to strengthen risk-based supervision and reiterated the importance of putting in place robust frameworks for crisis management and bank resolution. In addition, Directors recommended measures to further strengthen macro-prudential policies and systemic risk oversight, including through improved inter-agency coordination. Directors called for a reinforcement of the structural reform agenda to sustain high potential growth, while also reducing inequality. They agreed on the need to sustain productivity growth through reforms to improve skills and education quality, attract talent, and further improve the investment climate. Strengthening social policies to continue reducing poverty, improve income distribution, and ensure inclusive growth over the medium-term were also encouraged. ====================== P U E R T O R I C O ====================== EMPRESAS CARRION: Hires Francisco J. Ramos Gonzalez as Attorney --------------------------------------------------------------- Empresas Carrion Allende, Inc., seeks authority from the US Bankruptcy Court for the District of Puerto Rico to hire Francisco J. Ramos Gonzalez, Esq. as Debtor's attorney. The attorney is to give legal advice, counsel and assistance to the Debtor in connection with these areas and, represent the Debtor in the ensuing proceedings. Mr. Gonzalez will charge $200 per hour for his services, $100 per hour for the attorney advisor and $60 per hour for paralegal assistant, plus out-of-pocket expenses. A retainer of $6,000 has been paid prior to filing of the petition. Francisco J. Ramos Gonzalez, Esq. assures the Court that he is a disinterested party within the meaning of 11 U.S.C. 101(14). The counsel can be reached through: Francisco J. Ramos Gonzalez, Esq. Francisco J. Ramos & Asociados CSP P.O. Box 19193 San Juan, PR 00919 Tel: (787) 764-5134 Fax: (787) 758-5087 Email: fjramos@coqui.net About Empresas Carrion Allende Empresas Carrion Allende, Inc., operates a grocery store in Arecibo, Puerto, Rico. Empresas Carrion Allende filed its petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-07111)on Dec. 6, 2018. In the petition was signed by Sandra I. Carrion Montalvo, president, the Debtor estimated $1 million to $10 million in both assets and liabilities. The case is assigned to the Hon. Mildred Caban Flores. Francisco J. Ramos Gonzalez, Esq. at Francisco J. Ramos & Asociados CSP, led by Francisco J. Ramos Gonzalez, is the Debtor's counsel. HARAS SANTA: Expected to Make Payments Totaling $905K Under Plan ---------------------------------------------------------------- Haras Santa Isabel Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a disclosure statement. The Debtor's plan of reorganization contemplates the sale of all of its assets to the purchaser, including all of its real properties, thoroughbreds, inventories, furniture, fixtures, improvements, equipment, trademarks, trade names and supplies, and others, for $850,000. The sale will be financed through a credit facility to be granted to the purchaser by Puerto Rico Farm Credit. From the cash proceeds of the sale and the estimated cash in Debtor's accounts, estimated in $55,000, the Debtor will pay on the Effective Date, $700,000 to Abbey; 100% of allowed administrative expense claims; 100% of allowed priority tax claims up to $100,000; 100% of other priority claims; and will reserve a carve out for $50,000 to pay allowed general unsecured claims, on a pro-rata basis. The Debtor disclosed that the holders of the allowed general unsecured claims will be paid in full satisfaction on the effective date, approximately 1% thereof from a $50,000 carve out to be reserved for the unsecured creditors from the proceeds of the sale of the Debtor's assets. The Debtor will effect all the payments on the effective date from the proceeds of the sale of its assets and the estimated cash balance in the Debtor's debtor-in-possession accounts. The total distributions under the Plan are estimated in $901,000.00. The cash proceeds from the sale of the Debtor's assets are estimated in $850,000. The Debtor estimates that the net cash in its debtor-in-possession bank accounts, resulting from the collections of accounts receivable, will be approximately $55,000. Therefore, total funds to make the payments under the Plan will be approximately $905,000, sufficient to make the same. The Debtor is represented by: Charles A. Cuprill, Esq. CHARLES A. CUPRILL P.S.C. LAW OFFICES 356 Fortaleza Street San Juan, PR 00901 Tel.: 787-977-0515 Fax: 787-977-0518 Email: ccuprill@cuprill.com A full-text copy of the Disclosure Statement, dated December 13, 2018, is available at http://bankrupt.com/misc/prb18-07077-13.pdf About Haras Santa Isabel Haras Santa Isabel Inc. is a privately-held company in Coamo, Puerto Rico, in the horse breeding business. Haras Santa Isabel previously sought bankruptcy protection (Bankr. D.P.R. Case No. 10-06672) on July 27, 2010. Haras Santa Isabel again sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-07077) on Dec. 4, 2018. At the time of the filing, the Debtor disclosed $2,579,669 in assets and $8,787,638 in liabilities. The case is assigned to Judge Enrique S. Lamoutte Inclan. The Debtor tapped Charles Alfred Cuprill, Esq., at Charles A Cuprill, PSC Law Offices, as its legal counsel. ================= V E N E Z U E L A ================= VENEZUELA: Oil Exports Fall to Almost Three-Decade Lows ------------------------------------------------------- RJR News reports that Venezuela ended 2018 with a whimper as overseas sales dropped to the lowest in nearly three decades. Home to the world's biggest crude reserves, the country exported 1.245 million barrels a day last year, the lowest since 1990, as production tumbled amid an economic and humanitarian crisis, according to RJR News. Financial sanctions imposed by the U.S. have further tightened the screws on Venezuela's ailing economy, while creditors have sought to seize its assets including oil cargoes and its prized refineries in the U.S, the report relays. As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings in May 2018 removed its long- and short-term local currency sovereign credit ratings on Venezuela from CreditWatch with negative implications and affirmed them at 'CCC-/C'. The outlook on the long-term local currency rating is negative. At the same time, S&P affirmed its 'SD/D' long- and short-term foreign currency sovereign credit ratings on Venezuela. S&P's transfer and convertibility assessment remains at 'CC'. VENEZUELA: Maduro Extends Decree Banning Layoffs Until 2020 ----------------------------------------------------------- EFE News reports that Venezuelan President Nicolas Maduro extended the decree banning layoffs in the country until 2020, the executive vice president Delcy Rodriguez disclosed. In an address broadcast on state television VTV, Rodriguez said that the move was part of the fundamental line of defense and protection of workers being implemented by the government with its most recent economic announcements, according to EFE News. The measure forbids companies from laying off workers without going through a long and expensive process, established by late president Hugo Chavez in April 2002, the report notes. Venezuela's main business body, Fedecamaras, did not comment on the measure, although it has said in the past that the decree constitutes a serious problem for companies and undermines productivity, the report relays. The decision to extend the decree comes in the midst of a serious economic crisis in Venezuela, which has led to shortages, hyperinflation and a sharp fall in the country's gross domestic product, which has shrunk 53 percent since 2013, according to parliament's calculations, the report says. Pres. Maduro launched an economic program in August to try to tackle the crisis but the plan was criticized by entrepreneurs, opponents and experts who called it incomplete and inappropriate and said it would feed hyperinflation, the report relays. Currently, the monthly minimum wage in the country is 4,500 bolivars, barely US$7, according to the official exchange rate, the report adds. As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings in May 2018 removed its long- and short-term local currency sovereign credit ratings on Venezuela from CreditWatch with negative implications and affirmed them at 'CCC- /C'. The outlook on the long-term local currency rating is negative. At the same time, S&P affirmed its 'SD/D' long- and short-term foreign currency sovereign credit ratings on Venezuela. S&P's transfer and convertibility assessment remains at 'CC'. *********** 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 2019. 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 * * *