/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190412.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, April 12, 2019, Vol. 20, No. 74 Headlines A R G E N T I N A BAPRO: S&P Affirms 'B' Currency Ratings, Outlook Stable B R A Z I L BRAZIL: Retirees Forced to Still Work Under Proposed Reform REDE D'OR SAO LUIZ: S&P Affirms 'BB-' ICR Despite Weaker Leverage TERRA FORTE: Files For Bankruptcy Protection C A Y M A N I S L A N D S NOVO BANCO CAYMAN: DBRS Hikes LT Deposits Rating to B(high) D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Peru Pursues Free Trade Pact DOMINICAN REPUBLIC: Unions Oppose "Stripping" of Severance Pay M E X I C O MEXICO: Seeks Meeting With US Over Tomato Trade Conflict ORCHIDS PAPER: April 15 Meeting Set to Form Creditors' Panel P U E R T O R I C O KONA GRILL: CFO Christi Hing Gets Additional Role as PEO MONITRONICS INT'L: Ascent Posts $698MM Net Loss in 2018 STONEMOR PARTNERS: Amends 2018 Long-Term Incentive Plan T R I N I D A D A N D T O B A G O CARIBBEAN AIRLINES: Cargo Freighter Service Aligns With Forward Air V E N E Z U E L A VENEZUELA: Crisis Affects OPEC Oil Production in March - - - - - ================= A R G E N T I N A ================= BAPRO: S&P Affirms 'B' Currency Ratings, Outlook Stable ------------------------------------------------------- S&P Global Ratings affirmed its long-term 'B' local and foreign currency ratings on Banco de la Provincia de Buenos Aires (BAPRO). The outlook remains stable. S&P said, "The rating action follows our revision of BAPRO's capital and earnings profile and SACP to 'b+' from 'b'. However, the issuer credit rating on the bank remains limited by the rating of its owner, the province of Buenos Aires and the sovereign of Argentina. We rarely rate financial institutions higher than the sovereign where they operate. In order for us to do so, the bank would have to demonstrate capacity to maintain sufficient capital and liquidity to cover the significant stress that accompanies a sovereign default." =========== B R A Z I L =========== BRAZIL: Retirees Forced to Still Work Under Proposed Reform ----------------------------------------------------------- EFE News reports that as the discussion over the retirement reform proposed by Brazil President Jair Bolsonaro's administration continues, one in every four retirees needs to work to survive in Brazil. Brazil's Congress is considering a bill that will raise the requirements to obtain a retirement pension and theoretically save about $265 billion over 10 years, according to EFE News. REDE D'OR SAO LUIZ: S&P Affirms 'BB-' ICR Despite Weaker Leverage ----------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' global scale and 'brAAA' Brazilian national scale issuer credit and issue-level ratings on Rede D'Or Sao Luis S.A. The stable outlook reflects S&P's expectation that the company will continue growing with solid operating efficiency, bolstering cash flows. This would allow Rede D'Or to deleverage, with debt to EBITDA trending towards 3x by 2020. The ratings affirmation reflects S&P's view that Rede D'Or will continue delivering solid revenue growth through organic launches and acquisitions in the next few years. The company's capex plan for 2019 is relatively aggressive, given plans for 1,500 new operational beds. Still, it shouldn't pose major risks, because Rede D'Or has already secured most of the funding for these investments. TERRA FORTE: Files For Bankruptcy Protection -------------------------------------------- Marcelo Teixeira and Roberto Samora at Reuters report that Terra Forte, one of the largest Brazilian coffee exporters, has filed for bankruptcy protection in a state court, lawyers for the company said. Law firm Freire, Assis, Sakamoto e Violante said Terra Forte was looking to restructure BRL1.1 billion (US$288.2 million) in debt, according to Reuters. It also said the exporter was seeking to raise BRL60 million in working capital from investors to maintain operations, the report notes. Terra Forte is a well-known player in the international coffee market, the report relays. Based in Sao Joao da Boa Vista, Sao Paulo state, the company has a branch in Poços de Caldas, in the main coffee belt of Minas Gerais state, and a terminal in Santos, the largest coffee exporting port in Brazil, the report discloses. Some coffee traders in London said in recent days that they heard Terra Forte had problems fulfilling contracts with European importers, and cited that as a reason behind a short-covering movement in the coffee market in recent sessions, the report says. The exporter has a capacity to ship around 2.5 million bags of green coffee per year and was among the five largest players in the Brazilian export market, the report relays. Despite being a trader, Terra Forte is a large coffee producer, managing seven farms in the states of Sao Paulo and Minas Gerais, the report notes. A spokeswoman at Terra Forte headquarters in Sao Joao da Boa Vista declined to comment. The law firm taking care of the bankruptcy protection case released a short note saying the exporter was seeking financial backing to continue operations, hoping to raise short-term capital from investors while it tries to renegotiate its large debt, the report discloses. "When the restructuring is complete, the company has the objective to find a strategic partner in the market," said the note, the report says. The bankruptcy filing comes as benchmark New York arabica prices hover around the lowest levels in 13 years, with producers worldwide complaining that selling values are below production costs, the report adds. =========================== C A Y M A N I S L A N D S =========================== NOVO BANCO CAYMAN: DBRS Hikes LT Deposits Rating to B(high) ----------------------------------------------------------- DBRS Ratings GmbH upgraded by one notch the Long-Term Deposit ratings of 4 Portuguese banks, specifically Banco Comercial Portugues, S.A; Caixa Economica Montepio Geral (Banco Montepio); Caixa Geral de Depositos, S.A. and Novo Banco, S.A. (or collectively "the Banks"). The Short-Term Deposit ratings of 3 banks were also upgraded. KEY RATING CONSIDERATIONS The rating action reflects the introduction in Portugal of full depositor preference in bank insolvency and resolution proceedings with the implementation of Portuguese Law No. 23/2019 from March 14, 2019. The Law also introduces a new class of debt, which is expected to be referred to as Senior Non-Preferred Debt. This new class of debt will rank below preferential categories of creditors and existing Senior debt, but above Subordinated debt. The Law No. 23/2019 amended the rules regarding creditor hierarchy in insolvency proceedings. In line with article 108 BRRD, preference is granted to insured deposits and non-insured deposits by individuals, micro-enterprises, and small and medium-sized enterprises (or SMEs). Furthermore, the Law 23/2019 establishes that from March 14, 2019, all other deposits, including Corporate and institutional deposits held in legal banking entities in Portugal, will rank senior to other unsecured debt, but junior to insured deposits, deposit guarantee schemes and the portion of uninsured deposits held by individuals and SMEs. Reflecting this full depositor preference scheme, and decreasing likelihood for deposits to absorb losses, DBRS upgraded by one notch the Long-Term Deposit ratings of 1) Banco Comercial Portugues, S.A and its branch, BCP Macao Branch, 2) Caixa Economica Montepio Geral (Banco Montepio), 3) Caixa Geral de Depositos, S.A. and its branch, CGD France Branch, 4) Novo Banco, S.A. and its branches, Novo Banco Cayman Islands Branch and Novo Banco Luxembourg. The Long-Term Deposit ratings are now positioned one notch above their Intrinsic Assessment (IA). DBRS had previously rated these Long-Term Deposits in line with the Banks' Long-Term Senior Debt, which is at the same level as the Banks' Intrinsic Assessment (IA). Concurrently, DBRS also upgraded the Short-Term Deposits of 1) Banco Comercial Portugues, S.A and its branch, BCP Macao Branch, 2) Caixa Economica Montepio Geral (Banco Montepio), 3) Caixa Geral de Depositos, S.A. and its branch, CGD France Branch. The Short-Term Deposit ratings of Novo Banco remained unchanged, in line with DBRS' Short-Term / Long-Term Mapping Table. The Trend on the Deposit ratings of Caixa Geral de Depositos, S.A. will change to Stable from Positive, as they are now positioned at the same level as the Portuguese Sovereign ratings (BBB / R-2 (high), Stable Trend). The Trend on the Short-Term Deposits of Caixa Economica Montepio Geral (Banco Montepio) is now Negative in line with DBRS' Short-Term / Long-Term Mapping Table. The Trend on all other Deposit ratings remains unchanged. The Deposit ratings of Banco Santander Totta S.A. are not affected by this rating action as the ratings of the Bank's Long-Term and Short-Term Deposits already incorporate rating uplift due to parental support from Banco Santander SA. The aim of the new category of liability instruments (Senior Non-Preferred) is to facilitate the implementation of bank resolution procedures. In DBRS's view, the issuance of Senior Non-Preferred bonds will increase the loss-absorbing capacity and support Portuguese banks in meeting their future MREL requirements. Typically, DBRS rates Senior Non-preferred instruments one notch below the Intrinsic Assessment. RATING DRIVERS The ratings of the Long-Term and Short-Term Deposits will generally be affected by changes in the IA of the individual banks. Furthermore, the ratings could also be affected by any further changes in the legal framework for bank resolution and/or creditor hierarchy. The Ratings are: Action Rating Trend Banco Comercial Portugues, S.A. Long Term Deposits Upgraded BBB(low) Pos. Short Term Deposits Upgraded R-2(middle) Pos. Caixa Geral de Depositos, S.A. Long Term Deposits Upgraded BBB Pos. Short Term Deposits Upgraded R-2(high) Pos. Caixa Economica Montepio Geral (Banco Montepio) Long Term Deposits Upgraded BB(high) Pos. Short Term Deposits Upgraded R-3 Pos. Novo Banco, S.A. Long Term Deposits Upgraded B(high) Pos. BCP Macao Branch Long Term Deposits Upgraded BBB(low) Pos. Short Term Deposits Upgraded R-2(middle) Pos. CGD France Branch Long Term Deposits Upgraded BBB Pos. Short Term Deposits Upgraded R-2(high) Pos. Novo Banco Cayman Islands Branch Long Term Deposits Upgraded B(high) Pos. Novo Banco Luxembourg Branch Long Term Deposits Upgraded B(high) Pos. Notes: All figures are in Euros unless otherwise noted. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Peru Pursues Free Trade Pact ------------------------------------------------ Dominican Today reports that Peru's government works to materialize a Free Trade Agreements with five countries on a wide scope, Foreign Trade and Tourism minister Edgar Vasquez told Xinhua. According to the senior official, among the countries with which bilateral talks have been held for this purpose figure Argentina, Brazil, China, the Dominican Republic and Uruguay, the report notes. Mr. Vasquez added that with Brazil, the Dominican Republic and Uruguay previous approaches have been established to start the talks "to optimize the existing agreement with those countries," Dominican Today relates. 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. DOMINICAN REPUBLIC: Unions Oppose "Stripping" of Severance Pay -------------------------------------------------------------- Dominican Today reports that Unions Federation (CNUS) President Rafael (Pepe) Abreu, said that the trade unions are not going to allow the severance pay to be "stripped" from the country's workers. During a march to the National Palace to protest the employers' proposal, Mr. Abreu said the attempt to eliminate the severance pay stems from "the ambition of business owners," according to Dominican Today. He also demanded that "to avoid difficulties for the country and for labor peace to be lost," the bill that would amend the labor code must be withdrawn from Congress, the report notes. The heated debate over the severance pay has displaced labor's demand for a 30% wage hike from the headlines, 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. =========== M E X I C O =========== MEXICO: Seeks Meeting With US Over Tomato Trade Conflict -------------------------------------------------------- EFE News reports that Mexican Economy Secretary Graciela Marquez said she has asked for a meeting with US Commerce Secretary Wilbur Ross to discuss the conflict over Mexican tomato exports. "We have asked for a bilateral meeting with Secretary Wilbur Ross to deal with the tomato dispute," Marquez, who this weekend will coincide with the US secretary at a meeting of business owners and executives in the southeastern Mexican city of Merida, told a press conference, according to EFE News. ORCHIDS PAPER: April 15 Meeting Set to Form Creditors' Panel ------------------------------------------------------------ Andy Vara, Acting United States Trustee, United States Trustee for Region 3, will hold an organizational meeting on April 15, 2019, at 10:00 a.m. in the bankruptcy case of Orchids Paper Products Company. The meeting will be held at: United States Bankruptcy Court Sheraton Suites 422 Delaware Avenue Wilmington, DE 19801 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. About Orchids Paper Headquartered in Pryor, Oklahoma, Orchids Paper Products Company -- http://www.orchidspaper.com -- is a national supplier of consumer tissue products primarily serving the at home private label consumer market. The Company produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins, to serve the value through ultra-premium quality market segments from its operations in northeast Oklahoma, Barnwell, South Carolina and Mexicali, Mexico. The Company provides these products primarily to retail chains throughout the United States. Orchids Paper Products Company and two of its subsidiaries filed for bankruptcy protection (Bankr. D.Del., Lead Case No. 19-10729) on April 1, 2019. The petitions were signed by Richard S. Infantino, interim chief strategy officer. Hon. Mary F. Walrath presides over the cases. As of Feb. 28, 2019, the Debtors posted total assets $322,061,000 and total debts of $260,864,000. The Debtors tapped Polsinelli PC as counsel; Deloitte Transactions And Business Analytics LLP as chief strategy officer; Houlihan Lokey Capital, Inc. as investment banker; and Prime Clerk LLC as claims and notice agent. ===================== P U E R T O R I C O ===================== KONA GRILL: CFO Christi Hing Gets Additional Role as PEO -------------------------------------------------------- The Board of Directors of Kona Grill, Inc. appointed Christi Hing, currently the Company's chief financial officer, to also serve as the Company's principal executive officer while the Company seeks to fill the chief executive officer role resulting from the previously disclosed resignation of Marcus Jundt effective March 31, 2019. About Kona Grill Kona Grill, Inc., headquartered in Scottsdale, Arizona, Kona Grill, Inc. -- http://www.konagrill.com/-- currently owns and operates 44 restaurants in 22 states and Puerto Rico. Its restaurants feature a global menu of contemporary American favorites, award-winning sushi and craft cocktails. Additionally, Kona Grill has two restaurants that operate under a franchise agreement in Dubai, United Arab Emirates, and Vaughan, Canada. Kona Grill incurred a net loss of $23.43 million in 2017 and a net loss of $21.62 million in 2016. As of Sept. 30, 2018, Kona Grill had $78.59 million in total assets, $75.74 million in total liabilities, and $2.84 million in total stockholders' equity. The Company has incurred losses resulting in an accumulated deficit of $88.5 million and outstanding borrowings under a credit facility of $33.5 million as of Sept. 30, 2018. As of Sept. 30, 2018, the Company has cash and cash equivalents and short-term investment balance totaling $4.0 million and net availability under the credit facility of $2.2 million, subject to compliance with certain covenants. The Company has implemented various initiatives to increase sales and reduce costs to increase profitability. "Management expects to utilize existing cash and cash equivalents and short-term investments, along with cash flow from operations, and the available amounts under the credit facility, to provide capital to support the business, to maintain and refurbish existing restaurants, and for general corporate purposes. Any reduction of cash flow from operations or an inability to draw on the credit facility may cause the Company to take appropriate measures to generate cash. The failure to raise capital when needed could impact the financial condition and results of operations. Additional equity financing, to the extent available, may result in dilution to current stockholders and additional debt financing, if available, may involve significant cash payment obligations or financial covenants and ratios that may restrict the Company's ability to operate the business. There can be no assurance that the Company will be successful in its plans to increase profitability or to obtain alternative capital and financing on acceptable terms, when required or if at all," the Company stated in its Quarterly Report for the period ended Sept. 30, 2018. MONITRONICS INT'L: Ascent Posts $698MM Net Loss in 2018 ------------------------------------------------------- Ascent Capital Group, Inc., the parent company of Monitronics International, Inc., has issued a press release setting forth information, including financial information, which is intended to supplement the financial statements and related Management's Discussion and Analysis of Financial Condition and Results of Operations contained in Ascent's Annual Report on Form 10-K for the year ended Dec. 31, 2018, which Ascent filed with the Securities and Exchange Commission on April 1, 2019. Ascent Capital is a holding company that owns Brinks Home Security, a home security alarm monitoring companies. Headquartered in the Dallas-Fort Worth area, Brinks Home Security provides security alarm monitoring services to approximately 922,000 residential and commercial customers as of Dec. 31, 2018. Brinks Home Security's long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow. Highlights: * Ascent's net revenue for the three and twelve months ended Dec. 31, 2018 totaled $134.4 million and $540.4 million, respectively * Ascent's net loss for the three and twelve months ended Dec. 31, 2018 totaled $382.7 million and $698.0 million, respectively. Brinks Home Security's net loss for the three and twelve months ended Dec. 31, 2018 totaled $376.9 million and $678.8 million, respectively. Net loss for the three and twelve months ended Dec. 31, 2018 includes goodwill impairment charges of $349.1 million and $563.5 million, respectively. * Ascent's Adjusted EBITDA for the three and twelve months ended Dec. 31, 2018 totaled $75.6 million and $280.8 million, respectively. Brinks Home Security's Adjusted EBITDA for the three and twelve months ended Dec. 31, 2018 totaled $76.0 million and $289.4 million, respectively Results for the Three and Twelve Months Ended December 31, 2018 For the three months ended Dec. 31, 2018, Ascent reported net revenue of $134.4 million, an increase of 0.7%. The increase in revenue for the three months ended Dec. 31, 2018 included a $1.1 million favorable impact of the adoption of Topic 606. For the twelve months ended Dec. 31, 2018, net revenue totaled $540.4 million, a decrease of 2.4%. The reduction in revenue for the twelve months ended Dec. 31, 2018 is due to the lower average number of subscribers in 2018. This decrease was partially offset by an increase in average recurring monthly revenue per subscriber to $45.27 due to certain price increases enacted during the past twelve months. In addition, the Company recognized an $8.1 million increase in revenue for the twelve months ended Dec. 31, 2018 from the favorable impact of the new revenue recognition guidance, Topic 606, adopted effective Jan. 1, 2018. All revenues of Ascent are generated by its wholly-owned subsidiary, Brinks Home Security. Ascent's total cost of services, which are all incurred by Brinks Home Security, for the three months ended Dec. 31, 2018 decreased 4.3% to $28.1 million. The decrease in cost of services for the three months ended Dec. 31, 2018 is attributable to lower production volume in the direct to consumer sales channel which reduced expensed subscriber acquisition costs to $2.2 million for the three months ended Dec. 31, 2018 as compared to $3.4 million for the three months ended Dec. 31, 2017. Expensed subscriber acquisition costs include equipment and labor costs associated with the creation of new subscribers. Further contributing to the decrease in cost of services for the three months ended Dec. 31, 2018 was fewer field service retention jobs, which reduced certain field service costs, and favorable impacts from a lower headcount. These decreases are partially offset by expensing $1.5 million of direct and incremental field service costs on new alarm monitoring agreements obtained in connection with a subscriber move for the three months ended Dec. 31, 2018. Moves Costs, net, for the three months ended Dec. 31, 2017 of $2.6 million were capitalized to the balance sheet. For the twelve months ended Dec. 31, 2018, Ascent's total cost of services increased 8.2% to $128.9 million. The increase for the twelve months ended Dec. 31, 2018 is primarily due to expensing Moves Costs of $8.6 million for the twelve months ended Dec. 31, 2018. Upon adoption of the new revenue recognition guidance, Topic 606, all Moves Costs are expensed, whereas prior to adoption, certain Moves Costs were capitalized on the balance sheet. Moves Costs capitalized as Subscriber accounts, net, for the twelve months ended Dec. 31, 2017 were $14.4 million. Subscriber acquisition costs in cost of services increased to $14.7 million for the twelve months ended Dec. 31, 2018 as compared to $12.2 million for the twelve months ended Dec. 31, 2017, which is attributable to increased production volume in the direct to consumer sales channel year-over-year. These increases were offset by reduced salary and wage expense due to lower headcount for the full year ended Dec. 31, 2018. Ascent's selling, general & administrative costs for the three months ended Dec. 31, 2018, decreased 33.6% to $20.6 million which included an aggregate of $12.5 million in insurance receivable settlements reached with multiple carriers in connection with the 2017 legal settlement for class action litigation of alleged violation of telemarketing laws. Additionally, subscriber acquisition costs in SG&A decreased to $6.8 million for the three months ended Dec. 31, 2018 as compared to $7.2 million for the three months ended December 31, 2017 on lower production volume in the direct to consumer sales channel. Offsetting these decreases were approximately $1.1 million in expenses associated with the Brinks Home Security rebranding and severance expense of $1.0 million related to a reduction in headcount event at Brinks Home Security. Ascent's SG&A costs for the twelve months ended Dec. 31, 2018, decreased 22.2% to $130.6 million. The decrease in SG&A for the twelve month period is primarily attributable to a $28.0 million legal settlement recognized in the second quarter of 2017 for class action litigation of alleged violation of telemarketing laws and the 2018 recognition of an aggregate of $12.5 million in related insurance receivable settlements. Additionally, there were decreases in stock based compensation expense, consulting fees related to Brinks Home Security cost reduction initiatives and general and administrative headcount. These decreases were offset by year over year increases in subscriber acquisition costs associated with the creation of new subscribers at Brinks Home Security. Subscriber acquisition costs in SG&A increased to $33.2 million for the twelve months ended Dec. 31, 2018, as compared to $28.2 million for the twelve months ended Dec. 31, 2017. Other increases in SG&A year-over-year included increased professional legal fees at Ascent, Brinks Home Security rebranding expense and severance expense related to transitioning Ascent executive leadership and a reduction in headcount at Brinks Home Security. Brinks Home Security SG&A costs for the three and twelve months ended Dec. 31, 2018 were $20.0 million and $118.9 million, respectively, as compared to $29.1 million and $155.9 million, respectively, for the three and twelve months ended Dec. 31, 2017. Ascent reported a net loss from continuing operations for the three and twelve months ended Dec. 31, 2018 of $382.7 million and $698.0 million, respectively, compared to net loss from continuing operations of $16.0 million and $107.7 million in the prior year periods. The increase in net loss from continuing operations is primarily related to a goodwill impairment of $214.4 million recognized in the second quarter of 2018 and a further goodwill impairment of $349.1 million recognized in the fourth quarter of 2018, combined with the decreases in operating income. Brinks Home Security reported a net loss for the three and twelve months ended Dec. 31, 2018 of $376.9 million and $678.8 million, respectively, compared to a net loss of $14.6 million and $111.3 million in the prior year periods. Ascent's Adjusted EBITDA increased 3.8% to $75.6 million for the three months ended Dec. 31, 2018. Ascent's Adjusted EBITDA for the twelve months ended Dec. 31, 2018 decreased 8.3% to $280.8 million. Brinks Home Security's Adjusted EBITDA increased 3.0% to $76.0 million for the three months ended Dec. 31, 2018. This increase is attributable to reduced subscriber acquisition costs, net of creation revenue, of $7.8 million for the three months ended Dec. 31, 2018, as compared to $9.4 million for the three months ended Dec. 31, 2017 and the increase in net revenue for the three months ended Dec. 31, 2018. Brinks Home Security's Adjusted EBITDA decreased 7.7% to $289.4 million in the twelve months ended Dec. 31, 2018. This decrease is due to lower revenues, the expensing of Moves Costs, and higher subscriber acquisition costs, net of related revenue. Total subscriber acquisition costs, net of related revenue, for the year ended Dec. 31, 2018 increased to $43.2 million, as compared to $35.5 million for the year ended Dec. 31, 2017. Brinks Home Security's Adjusted EBITDA as a percentage of net revenue for the three and twelve months ended Dec. 31, 2018 was 56.5% and 53.6%, respectively, as compared to 55.2% and 56.7% in the prior year periods. Unit attrition increased from 15.7% for the twelve months ended Dec. 31, 2017 to 17.1% for the twelve months ended Dec. 31, 2018. The RMR attrition rate for the twelve months ended Dec. 31, 2018 and 2017 was 14.9% and 14.1%, respectively. Contributing to the increase in unit and RMR attrition was fewer customers under contract or in the dealer guarantee period in the twelve months ended Dec. 31, 2018, as compared to the prior period, and increased competition from new market entrants. The increase in the RMR attrition rate for the twelve months ended Dec. 31, 2018 is partially offset by Brinks Home Security's more aggressive price increase strategy. During the three and twelve months ended Dec. 31, 2018, Brinks Home Security acquired 20,925 and 112,920 subscriber accounts, respectively, as compared to 18,363 and 95,786 subscriber accounts in the three and twelve months ended Dec. 31, 2017. Accounts acquired for the years ended Dec. 31, 2018 and 2017 reflect bulk buys of approximately 17,800 and 3,500 accounts, respectively. Bulk buys for the three months ended Dec. 31, 2018 and 2017 were negligible. Ascent Liquidity and Capital Resources At Dec. 31, 2018, on a consolidated basis, Ascent had $105.9 million of cash and cash equivalents. Subsequent to Dec. 31, 2018, Ascent used an aggregate of approximately $70.7 million of its cash to make payments pursuant to the terms of the Settlement Agreement and an additional approximately $19.8 million of its cash to pay holders of its outstanding 4.00% Convertible Senior Notes due 2020 whose Convertible Notes were accepted for payment in the Amended Tender Offer. Ascent may use a portion of its remaining cash and cash equivalents to decrease debt obligations, fund stock repurchases, or fund potential strategic acquisitions or investment opportunities. At Dec. 31, 2018, the existing long-term debt includes the principal balance of $1.9 billion under the Brinks Home Security 9.125% Senior Notes due 2020, term loan and revolving credit facility under Brinks Home Security's Credit Agreement, dated March 23, 2012 (as amended and restated) and Ascent's Convertible Notes. The Convertible Notes had an outstanding principal balance of $96.8 million as of Dec. 31, 2018 and mature July 15, 2020. Following the consummation of the transactions contemplated by the Settlement Agreement and the consummation of the Amended Tender Offer, an aggregate principal amount of $260,000 of Convertible Notes remain outstanding. The Senior Notes have an outstanding principal balance of $585.0 million as of Dec. 31, 2018 and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $1.1 billion as of Dec. 31, 2018 and requires principal payments of approximately $2.8 million per quarter with the remaining amount becoming due on Dec. 31, 2022. As of Dec. 31,2018, the Credit Facility revolver has an outstanding balance of $144.2 million and a $600,000 standby letter of credit issued, which becomes due on Sept. 30, 2021. On Feb. 14, 2019, Ascent repurchased approximately $75.7 million in aggregate principal amount of then outstanding Convertible Notes from certain then holders of Convertible Notes pursuant to the previously announced Settlement and Note Repurchase Agreement and Release, dated Feb. 11, 2019, between Ascent and its directors and executive officers, on the one hand, and certain holders of Convertible Notes, on the other hand. Convertible Notes repurchased pursuant to the Settlement Agreement were cancelled. On Feb. 19, 2019, Ascent commenced a cash tender offer to purchase any and all of its outstanding Convertible Notes. On March 22, 2019, Ascent entered into transaction support agreements with holders of approximately $18.6 million in aggregate principal amount of the Convertible Notes then outstanding, pursuant to which Ascent agreed to increase the purchase price for the Convertible Notes in the Tender Offer to $950 per $1,000 principal amount of Convertible Notes, with no accrued and unpaid interest to be payable and such holders agreed to tender, or cause to be tendered, into the Amended Tender Offer all Convertible Notes held by such holders. The Amended Tender Offer expired at 5:00 pm Eastern time on March 29, 2019 and the settlement date of the Amended Tender Offer was April 1, 2019. A total of $20.8 million in aggregate principal amount of Convertible Notes were accepted for payment pursuant to the Amended Tender Offer. The maturity date for each of the Credit Facility revolver and the Credit Facility term loan is subject to a springing maturity 181 days prior to the scheduled maturity date of the Senior Notes, or Oct. 3, 2019, if Brinks Home Security is unable to refinance the Senior Notes by that date. As there is substantial doubt about Brinks Home Security's ability to continue as a going concern, Brinks Home Security has received a going concern qualification in connection with its standalone external audit of its Annual Report on Form 10-K for the year ended Dec. 31, 2018, which constitutes a default under the Credit Facility. Any default under the Credit Facility, if not waived or cured, may mature into an event of default thereunder. At any time after the occurrence of an event of default under the Credit Facility, the lenders may, among other options, declare any amounts outstanding under the Credit Facility immediately due and payable and terminate any commitment to make further loans under the Credit Facility. Such a default under the Credit Facility is also an event of default under the Senior Notes. Further, in connection with management's negotiations with its creditors, Brinks Home Security did not make its Senior Notes interest payment due on April 1, 2019. The indenture governing the Senior Notes provides for a 30-day cure period on past due interest payments. If an event of default occurs and is continuing under the indenture governing the Senior Notes, the holders of the Senior Notes may declare the aggregate principal amount of the Senior Notes and any accrued interest on the Senior Notes to be immediately due and payable. Brinks Home Security has obtained a waiver from the required revolving lenders under the Credit Facility and a forbearance from the required term lenders under the Credit Facility, in each case with respect to, among other things, the default in connection with the going concern qualification contained in Brinks Home Security's external audit report of their Annual Report on Form 10-K for the year ended Dec. 31, 2018, and, in each case through April 30, 2019, subject to the terms and conditions of the waiver and forbearance. The waiver obtained from the Credit Facility revolving loan lenders allows Brinks Home Security to continue to borrow under the revolving credit facility under the Credit Facility, up to $195,000,000 at an alternate base rate plus 3.00%. The forbearance obtained from the Credit Facility term lenders provides that the term loan lenders will not exercise remedies with respect to an event of default that may occur from the Going Concern Default. The Going Concern Default and any resulting event of default under the Credit Facility would continue, absent a waiver from the required revolving and term loan lenders, as applicable. Brinks Home Security has engaged financial and legal advisors to advise it regarding potential alternatives to address the issues described above. There can be no assurance that any restructuring will be possible on acceptable terms, if at all. Brinks Home Security may not be able to come to an agreement that is acceptable to all of its stakeholders. Brinks Home Security's failure to reach an agreement on the terms of a restructuring with its stakeholders would have a material adverse effect on its and Ascent's liquidity, financial condition and results of operations, including potentially requiring Brinks Home Security to file a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in order to implement a restructuring plan. These matters raise substantial doubt regarding Ascent's ability to continue as a going concern within one year from the date Ascent's financial statements as of and for the year ended Dec. 31, 2018 are issued. As a result, Ascent's consolidated financial statements as of and for the year ended Dec. 31, 2018 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. A full-text copy of the press release is available for free at: https://is.gd/A1b3zi About Monitronics Farmers Branch, Texas-based Monitronics International, Inc. -- http://www.mymoni.com/-- provides residential customers and commercial client accounts with monitored home and business security systems, as well as interactive and home automation services. The Company is supported by a network of independent Authorized Dealers providing products and support to customers in the United States, Canada and Puerto Rico. Its wholly owned subsidiary, LiveWatch is a Do-It-Yourself home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. Monitronics is a wholly-owned subsidiary of Ascent Capital Group, Inc. Monitroics was incorporated in the state of Texas on Aug. 31, 1994. At Dec. 31, 2017, the Company had more than 1,330 full-time employees and over 100 part-time employees, all of which are located in the United States. Monitronics reported a net loss of $678.75 million for the year ended Dec. 31, 2018, compared to a net loss of $111.29 million for the year ended Dec. 31, 2017. As of Dec. 31, 2018, Monitronics had $1.30 billion in total assets, $1.89 billion in total liabilities, and a total stockholders' deficit of $588.97 million. KPMG LLP, in Dallas, Texas, the Company's auditor since 2011, issued a "going concern" qualification in its report dated April 1, 2019, on the Company's consolidated financial statements for the year ended Dec. 31, 2018, citing that the Company has substantial indebtedness classified within current liabilities that raises substantial doubt about its ability to continue as a going concern. * * * In September 2018, S&P Global Ratings lowered its issuer credit rating on Monitronics to 'CC' from 'CCC'. The downgrade follows Monitronics' announcement on Aug. 30, 2018, of a proposed transaction to exchange its 9.125% senior unsecured notes due 2020 for a combination of new $585 million cash and paid-in-kind (PIK) (7.75% cash and 3.75% PIK) unsecured notes due 2023, up to $100 million of cash from parent company Ascent and warrants. Monitronics is also proposing amendments to eliminate the restrictive covenants governing the 2020 notes, including certain events of default. In July 2018, Moody's Investors Service, Inc., downgraded Monitronics International's Corporate Family Rating to 'Caa2', from 'B3'. The downgrade of Monitronics' CFR reflects strains on the company's liquidity and capital structure caused by impending maturities, as well as its continued lackluster operating performance. STONEMOR PARTNERS: Amends 2018 Long-Term Incentive Plan ------------------------------------------------------- StoneMor GP LLC, the general partner of StoneMor Partners L.P., approved on March 27, 2019, the amendment and restatement of the StoneMor Amended and Restated 2018 Long-Term Incentive Plan, which was also renamed the StoneMor Amended and Restated 2019 Long-Term Incentive Plan, in order to (i) increase the number of common units of the Partnership reserved for delivery under the Restated Plan and (ii) make certain other clarifying changes and updates to the Restated Plan. The Restated Plan provides for the grant, from time to time, at the discretion of the board of directors of the General Partner or the Compensation, Nominating and Governance, and Compliance Committee of the Board, of equity-based incentive compensation awards. Subject to adjustment in the event of certain transactions or changes of capitalization in accordance with the Restated Plan, 4,000,000 common units of the Partnership have been reserved for delivery pursuant to awards under the Restated Plan. Common units subject to an award that is forfeited, cancelled, exercised, settled in cash, or otherwise terminates or expires without delivery of common units and common units withheld to satisfy the withholding obligations with respect to an award will again be available for delivery pursuant to other awards under the Restated Plan. About StoneMor Partners StoneMor Partners L.P., headquartered in Trevose, Pennsylvania -- http://www.stonemor.com/-- is an owner and operator of cemeteries and funeral homes in the United States, with 322 cemeteries and 90 funeral homes in 27 states and Puerto Rico. StoneMor's cemetery products and services, which are sold on both a pre-need (before death) and at-need (at death) basis, include: burial lots, lawn and mausoleum crypts, burial vaults, caskets, memorials, and all services which provide for the installation of this merchandise. StoneMor reported a net loss of $72.69 million for the year ended Dec. 31, 2018, compared to a net loss of $75.15 million for the year ended Dec. 31, 2017. As of Dec. 31, 2018, the Partnership had $1.66 billion in total assets, $1.67 billion in total liabilities, and a total partners' deficit of $6.57 million. * * * As reported by the TCR on Feb. 13, 2019, Moody's Investors Service downgraded StoneMor Partners L.P.'s Corporate Family rating to Caa2 from Caa1 and Probability of Default rating to Caa3-PD from Caa1-PD. The Caa2 CFR reflects Moody's concern that if pre-need cemetery selling and liquidity pressures do not abate while the senior secured credit facility is being refinanced, a distressed exchange or other default event could become more likely. In February 2019, S&P affirmed its 'CCC+' issuer credit rating on StoneMor Partners LP. S&P said "The rating affirmation reflects our view that StoneMor's capital structure is unsustainable and reflects our expectation that the company will produce cash flow deficits in 2019. However, we affirmed the rating because we believe the company has sufficient liquidity over the next 12 months given the new bridge loan." ===================================== T R I N I D A D A N D T O B A G O ===================================== CARIBBEAN AIRLINES: Cargo Freighter Service Aligns With Forward Air ------------------------------------------------------------------- RJR News reports that Caribbean Airlines Cargo Freighter Service has formed an alliance with ground transport handlers Forward Air, to facilitate the trucking of large volume cargo from New York and Fort Lauderdale to the airline's Cargo Hub in Miami, for shipments into the Caribbean. Commenting on the alliance, Chief Executive Officer Garvin Medera said customers shipping cargo to the Caribbean out of New York and Fort Lauderdale can now do so at one flat rate with no capacity restrictions, according to RJR News. Caribbean Airlines Cargo Freighter Service operates on weekdays. 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. ================= V E N E Z U E L A ================= VENEZUELA: Crisis Affects OPEC Oil Production in March ------------------------------------------------------ EFE News, citing Dow Jones Newswires, reports that the Organization of the Petroleum Exporting Countries' (OPEC) oil production fell significantly in March on the back of Saudi Arabia-led output curbs and outages in Venezuela resulting from political and economic unrest. In its closely-watched monthly oil market report, the Organization of the Petroleum Exporting Countries said its crude-oil output had fallen by 534,000 barrels a day month-on-month, to average 30.02 million barrels a day in March, according to secondary sources, according to EFE News. 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'. ********* 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 * * *