/raid1/www/Hosts/bankrupt/TCRLA_Public/190812.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
Monday, August 12, 2019, Vol. 20, No. 160
Headlines
A R G E N T I N A
COMPANIA GENERAL: Fitch Withdraws B(EXP) Rating on New $500MM Notes
B A R B A D O S
BARBADOS: Won't Return to Glory Days of Sugar Industry
B R A Z I L
BRAZIL: Will Give Workers Up to $8 Billion to Spur Growth
E C U A D O R
GUAYAQUIL MERCHANT: Fitch Rates $175MM Series 2019-1 Notes 'BB-'
M E X I C O
UNIFIN FINANCIERA: Fitch Rates Prop. US$ Sr. Unsec. Notes 'BB(EXP'
UNIFIN FINANCIERA: S&P Rates New $200MM Sr. Unsec. Notes 'BB'
P U E R T O R I C O
PUERTO RICO: New Governor Says She Intends to Remain in Office
SEARS HOLDINGS: Tannor Capital Objects to Disclosure Statement
TECNICENTROS MUNDIAL: Case Summary & 20 Top Unsecured Creditors
T R I N I D A D A N D T O B A G O
PETROLEUM CO: Provides Counseling to Hundreds of Terminated Workers
V E N E Z U E L A
VENEZUELA: 'Savage Capitalism' Takes Hold in Crisis-Hit Country
VENEZUELA: Leader Suspends Talks With Opposition
X X X X X X X X
[*] BOND PRICING: For the Week August 5 to August 9, 2019
- - - - -
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A R G E N T I N A
=================
COMPANIA GENERAL: Fitch Withdraws B(EXP) Rating on New $500MM Notes
-------------------------------------------------------------------
Fitch Ratings has withdrawn its 'B(EXP)'/'RR4' expected rating on
Compania General de Combustibles S.A.'s proposed issuance of up to
USD500 million senior notes.
KEY RATING DRIVERS
The rating has been withdrawn as Compania General de Combustibles
S.A. did not proceed with the senior unsecured notes issue due to
market conditions. Compania General de Combustibles S.A.'s other
ratings are unaffected by the withdrawal.
RATING SENSITIVITIES
Rating Sensitivities are not applicable as the ratings have been
withdrawn.
===============
B A R B A D O S
===============
BARBADOS: Won't Return to Glory Days of Sugar Industry
------------------------------------------------------
RJR News reports that the governor of the Central Bank of Barbados,
Cleviston Haynes, has said the island will not return to the glory
days of the sugar industry as the government looks to diversify the
local economy.
Mr. Haynes, told a news conference that Barbados would now have to
look at getting something other than sugar from the industry and
decide whether production would be solely for domestic purposes,
according to RJR News.
He said what is needed is diversification of the economy by
identifying other industries that can complement sugar production
and international business services, the report notes.
TCLRA reported on Nov. 22, 2018, S&P Global Ratings raised its
long- and short-term local currency sovereign credit ratings on
Barbados to 'B-/B' from 'SD/SD' (selective default). At the same
time, S&P Global Ratings assigned its 'B-' issue-level rating to
Barbados' long- term debt issued in its debt exchange. S&P Global
Ratings also affirmed its 'SD/SD' long- and short-term foreign
currency credit ratings on the country, and its 'D' (default)
ratings on Barbados' foreign-currency issues. Finally, S&P Global
Ratings raised its transfer and convertibility assessment on the
country to 'B-' from 'CC'.
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B R A Z I L
===========
BRAZIL: Will Give Workers Up to $8 Billion to Spur Growth
---------------------------------------------------------
Paulo Trevisani and Jeffrey T. Lewis at The Wall Street Journal
reports that President Jair Bolsonaro will give Brazilians early
access this year to as much as BRL30 billion ($8 billion) in funds
normally set aside for the unemployed in an effort to spur the
country's moribund economy.
A measure announced by Economy Minister Paulo Guedes will allow
Brazilian workers, starting in September, to take up to BRL500 of
the money currently reserved in accounts set up by law by employers
for workers who lose their jobs, according to at The Wall Street
Journal. In addition, as much as BRL12 billion will be released
from the funds in 2020, the economy ministry said, the report
relays.
Mr. Guedes said the move could add 0.35 percentage point to gross
domestic product growth through 2020, the report discloses. He
rebutted concern that the amounts available to workers won't make
much difference or that they won't use the money wisely, saying it
is a long-term measure and that Brazilians will know how best to
use the money, the report notes.
"We're giving citizens a choice," he said during a ceremony in the
presidential palace, the report says.
The economy ministry said that, though 500 reais might not seem
like much money, nine of every 10 unemployment-protection accounts
have balances lower than BRL1,400, the report relays.
Brazil's economy, which shrank 0.2% in the first quarter and may
have contracted in the second quarter, has been struggling to
recover from its worst recession on record in 2015 and 2016, the
report notes.
With unemployment above 12% and little investment from government
and business, measures disclosed are unlikely to increase growth
much this year, said Jason Vieira, chief economist at Infinity
Asset, the report says.
"It's kind of a lost cause," he said, adding that it might at least
boost confidence among consumers a bit. "Brazil is like a car with
a dead battery, and the administration is trying to give it a
push-start," he added.
The unemployment funds are financed through payroll taxes.
Mandatory contributions go into savings accounts, and the funds can
be withdrawn by workers when they are fired, retired or want to buy
a home, the report relays.
The announcement came a day after the International Monetary Fund
cut Brazil's 2019 economic growth forecast to 0.8%, the report
notes.
Economic activity has been disappointing in the first months of Mr.
Bolsonaro's conservative administration, marked by political
infighting and concern that much-needed economic reform wouldn't
materialize, the report says.
The mood has changed over the past few weeks after the lower house
of Brazil's Congress passed by a wide margin a sweeping pension
reform aimed at ensuring fiscal stability for years to come, the
report relays.
As reported in the Troubled Company Reporter-Latin America on May
27, 2019, Fitch Ratings has affirmed Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable
Outlook.
=============
E C U A D O R
=============
GUAYAQUIL MERCHANT: Fitch Rates $175MM Series 2019-1 Notes 'BB-'
-----------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' issue-specific rating to the
$175 million series 2019-1 notes issued by Guayaquil Merchant
Voucher Receivables Limited. The Rating Outlook is Negative.
The transaction is backed by future flows due from American
Express, Visa International Service Association (Visa) and
Mastercard International Incorporated (Mastercard) related to
international merchant vouchers acquired by Banco Guayaquil S.A.
(BG) in Ecuador. Fitch's ratings reflect timely payment of interest
and principal on a quarterly basis.
KEY RATING DRIVERS
Originator's Credit Quality: The rating of this future flow
transaction is tied to the credit quality of the originator, BG.
The bank's ratings are highly influenced by its operating
environment. The sovereign's Issuer Default Rating (IDR) was
affirmed on Jan. 10, 2019 at 'B-' and the Rating Outlook was
revised to Negative from Stable.
Going Concern Assessment Score: Fitch uses a going concern
assessment (GCA) score to gauge the likelihood that the originator
of a future flow transaction will stay in operation throughout the
transaction's life. Fitch assigned a GCA score of 'GC2' to BG based
on the bank's systemic importance. The score allows for a maximum
of four notches above the local currency IDR of the originator;
however, additional factors limit the maximum uplift.
Notching Uplift from IDR: The 'GC2' allows for a maximum four
notch-rating uplift from the bank's Long-Term IDR pursuant to
Fitch's future flow methodology. However, the agency currently
limits the rating uplift for the future flow program to three
notches from BG's IDR, due to factors mentioned, including
Ecuador's lack of last resort lender, the exposure to
de-dollarization risk when it comes to flow volumes and Fitch
reserving the maximum notching uplift for originator's rated on the
lower end of the rating scale.
Potential Volatility of the Future Receivables: While international
AmEx, Mastercard and Visa acquiring flows benefit from BG's
longstanding credit card business, the transaction is exposed to a
potential drop in tourism caused by natural events, an economic
downturn and/or potential political or social unrest. Additionally,
the transaction includes ATM acquired vouchers, which Fitch
considers could potentially exhibit more volatility or be subject
to an ATM freeze.
However, flows still support a projected quarterly debt service
coverage ratio (DSCR) of more than 4.0x the maximum quarterly debt
service payment and 2.5x utilizing point-of-sale flows only, which
would remain in line with the assigned rating level. International
merchant voucher volumes have been relatively stable. Flow levels
observed from January 2019 to May 2019 are trending higher when
compared with the first five months of the past two years.
No Lender of Last Resort: Ecuador is a U.S. dollarized economy
without a true lender of last resort. While certain mechanisms are
in place to help fend off a banking system crisis, this weakness
limits the transaction rating.
De-Dollarization Risk: While the dollarization system anchors
macroeconomic stability, the risk of de-dollarization exists. It
would only occur in an extreme scenario but would be a major shock
to the Ecuadorean system.
Future Flow Debt Size: The future flow issuance is expected to
represent approximately 4.1% of BG's total liabilities and
approximately 26.7% of BG's non-deposit funding utilizing
financials as of June 2019. Fitch considers the ratio of future
flow debt to overall liabilities small enough to allow the
financial future flow ratings up to the maximum uplift indicated by
the GCA score.
Reduced Redirection and Diversion Risk: The structure mitigates
certain sovereign risks by collecting cash flows offshore until
investors are paid. Fitch believes diversion risk is mitigated by
notice, consent and agreements (C&As) obligating AmEx, Visa and
Mastercard to remit payments to the collection accounts controlled
by the trustee.
RATING SENSITIVITIES
The transaction's ratings are sensitive to changes in the credit
quality of Banco Guayaquil S.A. The ratings are sensitive to
changes to the bank's IDR; the ability of the credit card acquiring
business line to continue operating, as reflected by the GCA score;
and changes in the sovereign environment and ratings assigned to
the Ecuadorian sovereign. Changes in Fitch's view of the bank's GCA
score can lead to a change in the transaction's rating.
Additionally, the merchant voucher programs could also be sensitive
to significant changes in the credit quality of AmEx, Visa or
Mastercard to a lesser extent.
The transaction's ratings are sensitive to the performance of the
securitized business line. The expected quarterly DSCR is
approximately 4.0x and should be able to withstand a significant
decline in cash flows in the absence of other issues. Fitch
performed sensitivity analysis on the strength of collections.
Severe reductions in coverage levels could result in rating
downgrades.
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M E X I C O
===========
UNIFIN FINANCIERA: Fitch Rates Prop. US$ Sr. Unsec. Notes 'BB(EXP'
------------------------------------------------------------------
Fitch Ratings has assigned Unifin Financiera, S.A.B. de C.V.'s
(BB/Stable) proposed U.S. dollar senior unsecured notes a 'BB(EXP)'
expected rating. The final rating is contingent upon the receipt of
final documents conforming to information already received.
The proposed notes will be issued for up to USD200 million and up
to three years at a fixed rate with semi-annually interest
payments. The principal will be paid at maturity, may be redeemed
at the option of the issuer and will be fully and unconditionally
guaranteed by two operating subsidiaries of Unifin (Unifin Credit,
S.A. de C.V., SOFOM, E.N.R. and Unifin Autos, S.A. de C.V.).
The net proceeds from the offering will be used to refinance
existing liabilities.
KEY RATING DRIVERS
The rating assigned to these senior notes is at the same level as
Unifin's 'BB' Long-Term Issuer Default Ratings (IDRs), as the
likelihood of default on the notes is the same as Unifin's.
There is no increased exposure to market risk because of this
transaction, as the company will hedge both FX rate risk and
interest rate risk with cross-currency swaps for both the principal
and interest payments.
Unifin's ratings are highly influenced by its national leadership
in the independent leasing sector in Mexico (non-related to
financial holding company) and its ample expertise in its core
market focused on SME, typically unattended by the banking sector.
The ratings are also significantly influenced by the company's
relatively tight capitalization metrics. The ratings also consider
Unifin's good earnings, controlled asset quality, and well-managed
liquidity and funding.
The adoption of IFRS accounting standards in 1Q19 provides more
clarity on Unifin's asset quality, which has led to stronger
reserve coverage. However, this put more pressure on the company's
already tight capitalization and leverage position under Fitch's
core metric. As of March 2019 and following the adoption of IFRS,
Unifin's tangible leverage ratios (measured as total debt to
tangible common equity) exceeded Fitch's sensitivity according to
its ratings level. On July 8th, Unifin made a restatement of the
1Q19 internal financial statements due to further IFRS adjustments
and the ratio changed to 7.9x from 8.5x previously reported,
considering the company's adjusted and reclassified intangibles and
other deferred and prepaid expenses. Fitch will closely monitor
final adjustments to these low loss-absorbing assets once audited
financial statements are published. As of June 2019, Unifin's
tangible leverage ratios stood at 7.7x, a level that remains tight
under Fitch's metrics.
Company projections show leverage gradually improving to nearly
7.1x as of year-end (YE) 2020, a ratio that Fitch believes is still
relatively tight but consistent with the current rating level. If
the company does not show consistent improvement of leverage
metrics toward the 7x threshold, negative rating actions could
occur in the near future. Fitch does not expect a greater
deterioration of leverage metrics after the issuance of the new
senior notes as they will refinance some existing liabilities.
Unifin's profitability remains at good levels but lower than
historical records due to higher interest expenses and structural
changes under IFRS. As of June 2019, the pre-tax income to average
assets ratio reduced to around 3% from historic average levels of
4%. Asset quality is controlled, and has not resulted in a general
deterioration or material borrower concentrations. At the same
date, the company's NPL ratio stood at 3.8%, lower than its closest
peers; while the loan loss allowance coverage of NPLs increased
after IFRS adoption and was at around 50% as of June 2019, and in
Fitch's opinion, continues to be relatively limited.
Unifin has a more diversified and unsecured funding structure than
local peers. However, the entity is heavily reliant on wholesale
financing through local debt issuances via securitizations and
international senior bonds. Fitch believes Unifin's refinancing
risk is carefully monitored and managed because of the company's
diversified funding structure, well-planned liability maturities
and reasonable levels of liquid assets held. The company's
well-articulated strategic objectives and high risk appetite, due
to ample balance sheet growth, were also factored in Unifin's
ratings.
RATING SENSITIVITIES
The rating for the new senior notes will mirror any changes in
Unifin's corporate ratings. The notes could be downgraded below
Unifin's IDRs if the level of unencumbered loans deteriorates
substantially enough to subordinate the bondholders to other senior
unsecured debt.
UNIFIN FINANCIERA: S&P Rates New $200MM Sr. Unsec. Notes 'BB'
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating to Unifin
Financiera S.A.B. de C.V.'s (Unifin; global scale: BB/Negative/--;
national scale: mxA/Negative/mxA-1) proposed senior unsecured notes
for up to $200 million with a maturity profile of up to three
years. The lender will primarily use the proceeds to repay
short-term credit facilities and expand its debt maturity profile.
The issuance will have a full cross-currency swap to hedge against
currency exchange fluctuations, as S&P saw with Unifin's
outstanding global debt issuances.
S&P said, "Our view that the firm's priority debt (secured debt)
will represent slightly less than 15% of adjusted assets for the
next 12 months, which supports our 'BB' rating on the proposed
notes. Unifin's unencumbered assets will also cover more than 1x of
its rated unsecured debt (including the proposed debt issuance).
Finally, the rating indicates that the notes will rank equally in
right of payment with all of Unifin's existing and future senior
unsecured notes.
"Our funding and liquidity assessment of Unifin remains unchanged
after incorporating the proposed issuances in our metrics. We
expect market debt to remain Unifin's main funding source (85% of
total funding), including the potential and outstanding unsecured
notes, as well as the firm's subordinated perpetual notes. Despite
this concentration, the firm's market debt is diversified across
many issuances. Therefore, by the end of 2019, we expect the
funding mix to be in line with our expectations: global issuances
(57%), local securitizations (28%), and banking lines (15%).
Finally, the firm's stable funding ratio was 83.62% as of June 30,
2019, and we expect it to remain close to 90% after this issuance
is completed.
"Unifin's sufficient resources to fund daily operations support our
liquidity analysis. After incorporating the potential unsecured
notes in our cash-flow analysis, our base-case and stress scenarios
remain positive, and we expect the firm to keep operating without
the need to access market funding for the next 12 months and to
cover its funding needs on a monthly basis.
"The ratings also reflect our business position assessment of
Unifin, which benefits from stable and growing business operations
that are oriented towards pure leasing activities--primarily in the
small- to mid-size enterprise lending sector. Furthermore, the
ratings reflect our forecasted risk-adjusted capital ratio above 7%
for the next 12 and 24 months. Finally, Unifin's risk position
reflects subpar reserve coverage, with asset quality metrics in
line with those of the company's main competitors."
Ratings List
New Rating
Unifin Financiera, S.A.B. de C.V.
Senior Unsecured BB
=====================
P U E R T O R I C O
=====================
PUERTO RICO: New Governor Says She Intends to Remain in Office
--------------------------------------------------------------
Luis Valentin Ortiz at Reuters reports that the revolving door at
the governor's office in Puerto Rico may finally stop with Wanda
Vazquez, the newly sworn-in chief executive of the bankrupt U.S.
territory, who said she has no plans to resign.
In a series of interviews with local media, Puerto Rico's former
justice secretary denied reports that she had agreed to resign soon
to allow Jenniffer Gonzalez, the Caribbean island's nonvoting
representative in the U.S. Congress, to take over, according to
Reuters.
"I have never had such agreement. I don't know what kind of
agreements (New Progressive Party and legislative leaders) have
reached," Vazquez said on a morning radio show, emphasizing that
she intends to remain in office for the remainder of former
Governor Ricardo Rossello's term, which ends on Jan. 1, 2021, the
report notes.
Vazquez became Puerto Rico's third governor in less than a week,
after Rossello, who took office in 2017, stepped down, and his
hand-picked successor, Pedro Pierluisi, was removed by the island's
supreme court, the report relays.
The nine-member court unanimously ruled that Pierluisi's assumption
of the office was unconstitutional because the Puerto Rico Senate
had not confirmed his July 31 appointment by Rossello as secretary
of state, the post that is next in line for governor under the
territory's constitution, the report discloses.
The high court's ruling followed weeks of political turmoil, with
Rossello on July 24 announcing his intention to resign after of
days of protests, the report notes.
The demonstrations, which drew around a third of the island's 3.2
million people, were sparked by the revelation of offensive chat
messages between Rossello and his closest allies, and federal
corruption charges brought against two former members of his
administration, the report relays.
The chat message scandal led to the July 13 resignation of
Secretary of State Luis Rivera Marin, whom Rossello eventually
replaced with Pierluisi, the report notes.
Vazquez initially voiced reluctance to take over the island's top
government post after being targeted by protesters for alleged
corruption and being too close to Rossello, the report notes.
Vazquez said she did not see herself as a politician, emphasizing
she would not run for governor in the 2020 election, the report
says.
The political upheaval comes at a critical time in Puerto Rico's
bankruptcy, as it seeks billions of dollars in federal funding for
healthcare and recovery efforts from devastating 2017 hurricanes,
the report relays.
As governor, Vazquez must deal with Puerto Rico's federally created
fiscal oversight board, which filed the government's bankruptcy in
2017 in U.S. District Court to restructure about $120 billion of
debt and pension obligations, the report notes.
"The board is there and we must seek consensus," Vazquez said in an
interview, adding that the majority of Puerto Ricans oppose the
board, the report adds.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
Bondholders' Attorneys
Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera
& Sifre, P.S.C. and serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc., and
the First Puerto Rico Family of Funds, which collectively hold over
$4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by
Puerto Rico and other instrumentalities.
White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP, Autonomy
Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative
Capital LP.
Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.
Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ Management
II LP (the QTCB Noteholder Group).
Committees
The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth. The
Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia &
Milian, C.S.P., as its attorneys. The Creditors Committee tapped
Paul Hastings LLP and O'Neill & Gilmore LLC as counsel.
SEARS HOLDINGS: Tannor Capital Objects to Disclosure Statement
--------------------------------------------------------------
Tannor Capital Advisors LLC, the general partner of Tannor Partners
Credit Fund, LP, objects to the confirmation of the Modified Second
Amended Joint Chapter 11 Plan of Sears Holdings Corporation and its
Affiliated Debtors.
TCA asserts that the Plan does not provide for such different
treatment, and creditors can take no comfort in the Debtors'
assurances of administrative solvency, which, if achievable at all,
can only occur under the Substantive Consolidation Settlement, a
highly favorable outcome of the Transform Litigation, and with
uncertain proceeds from litigation and causes of action that will
be pursued by a Liquidation Trust after confirmation and the
Effective Date of the Plan.
TCA points out that the Debtors are liquidating, and nothing in
their monthly operating reports points to an improvement in their
financial condition.
According to TCA, there are substantial risks associated with
numerous contingencies for which the Debtors must obtain favorable
outcomes, including, among others, the reconciliation of the
503(b)(9) Claims and the extent of allowed claims under section
507(b) of the Bankruptcy Code.
TCA complains that the Debtors have not included costs associated
with litigating disputes with respect to each type of
Administrative Expense Claims, which further compounds the risk of
administrative insolvency.
TCA asserts that the Debtors must demonstrate that the
Plan’s
provision for the payment in full of all Allowed Administrative
Expense Claims is feasible.
Attorneys for TCA:
Frank A. Oswald, Esq.
Neil Berger, Esq.
TOGUT, SEGAL & SEGAL LLP
One Penn Plaza, Suite 3335
New York, New York 10119
Telephone: (212) 594-5000
Fax: (212) 967-4258
About Sears Holdings
Sears Holdings Corporation (NASDAQ: SHLD) --
http://www.searsholdings.com/-- began as a mail ordering catalog
company in 1887 and became the world's largest retailer in the
1960s. At its peak, Sears was present in almost every big mall
across the U.S., and sold everything from toys and auto parts to
mail-order homes. Sears claims to be is a market leader in the
appliance, tool, lawn and garden, fitness equipment, and automotive
repair and maintenance retail sectors.
Sears and Kmart merged to form Sears Holdings in 2005 when they had
3,500 US stores between them. Kmart emerged in 2005 from its own
bankruptcy.
Unable to keep up with online stores and other brick-and-mortar
retailers, a long series of store closings has left it with 687
retail stores in 49 states, Guam, Puerto Rico, and the U.S. Virgin
Islands as of mid-October 2018. The Company employs 68,000
individuals, of whom 32,000 are full-time employees.
As of Aug. 4, 2018, Sears Holdings had $6.93 billion in total
assets, $11.33 billion in total liabilities and a total deficit of
$4.40 billion.
Unable to cover a $134 million debt payment due Oct. 15, 2018,
Sears Holdings Corporation and 49 subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 18-23538) on Oct. 15,
2018.
The Hon. Robert D. Drain is the case judge.
The Debtors tapped Weil, Gotshal & Manges LLP as legal counsel;
M-III Partners as restructuring advisor; Lazard Freres & Co. LLC as
investment banker; DLA Piper LLP as real estate advisor; and Prime
Clerk as claims and noticing agent.
The U.S. Trustee for Region 2 appointed nine creditors, including
the Pension Benefit Guaranty Corp., and landlord Simon Property
Group, L.P., to serve on the official committee of unsecured
creditors. The committee tapped Akin Gump Strauss Hauer & Feld LLP
as legal counsel; FTI Consulting as financial advisor; and Houlihan
Lokey Capital, Inc. as investment banker.
The U.S. Trustee for Region 2 on July 9, 2019, appointed five
retirees to serve on the committee representing retirees with life
insurance benefits in the Chapter 11 cases.
TECNICENTROS MUNDIAL: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Tecnicentros Mundial, Inc.
Campo Rico Avenue 802
San Juan, PR 00929
Puerto Rico
Business Description: Tecnicentros Mundial, Inc., founded in 1984,
distributes tires and tubes for passenger
and commercial vehicles.
Chapter 11 Petition Date: August 6, 2019
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Case No.: 19-04471
Judge: Hon. Enrique S. Lamoutte Inclan
Debtor's Counsel: William Vidal Carvajal, Esq.
WILLIAM VIDAL CARVAJAL LAW OFFICES
MCS Plaza, Suite 801
255 Ponce De Leon Ave Suite 801
San Juan, PR 00918
Tel: 787-764-6867 - 399-6415
Fax: 787-764-6496
E-mail: william.m.vidal@gmail.com
Debtor's
Financial
Consultant: Luis Carrasquillo, CPA
CPA LUIS CARRASQUILLO & CO. P.S.C.
Total Assets: $3,459,283
Total Liabilities: $8,891,276
The petition was signed by Jacklin Tirado Rivera, vice-president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/prb19-04471.pdf
=====================================
T R I N I D A D A N D T O B A G O
=====================================
PETROLEUM CO: Provides Counseling to Hundreds of Terminated Workers
-------------------------------------------------------------------
Carolyn Kissoon at Trinidad Express reports that Petroleum Co. of
Trinidad & Tobago (Petrotrin) Employee Assistance Programme
Services Ltd (PEAPSL) has provided counseling to hundreds of
terminated employees and their dependents since the closure of the
State-owned oil company in November last year, says chief executive
officer Neil Parsanlal.
Parsanlal said employees were assisted in dealing with a range of
change management issues, from anger management to financial
planning, according to Trinidad Express. And at no time, he said,
did any client complain that the sessions were not helpful to them,
adds the report.
About Petrotrin
State-owned Petroleum Co. of Trinidad & Tobago (Petrotrin) closed
it oil refinery in November last year.
Prior to closure, Petrotrin underwent a corporate reorganization
that started in the last quarter of 2018. The T&T government
insisted that the reorganization was necessary to improve the
company's efficiency.
As a result of the reorganization, Petrorin's refining business was
shut down and new entities were created: three operating
subsidiaries (Heritage Petroleum Company Limited, Paria Fuel
Trading Company and Guaracara Refining Company Limited), and the
new holding company, TPH, to which the international bonds were
transferred from Petrotrin.
=================
V E N E Z U E L A
=================
VENEZUELA: 'Savage Capitalism' Takes Hold in Crisis-Hit Country
---------------------------------------------------------------
Michael Stott at The Financial Times reports that after years of
expropriations, hyperinflation, bankruptcies and financial
collapse, what remains of Venezuela's private sector might be
forgiven for giving up hope.
But business people in Venezuela say the economic crisis in the
South American nation has hastened moves by President Nicolas
Maduro's government away from the full-blooded socialism of his
predecessor Hugo Chavez towards a freer market.
"As business people we have wanted free prices and a free flow of
dollars for many years," one senior executive at a consumer goods
said, according to The Financial Times. "Now prices have
effectively been freed and you can pay with dollars," the report
quoted the executive as saying.
Venezuela had "adopted savage capitalism", he added, notes the
report.
Ministers have not officially announced policy changes and were not
available for interviews, according to The Financial Times. But
over the past few months, business people say rules barring
transactions in hard currency have not been enforced, many price
controls have been dropped, imports have been freed and Venezuela's
battered economy has rapidly dollarised, the report relates.
As a result, some goods that were previously scarce or unobtainable
have reappeared in shops, though their prices are out of the reach
of the vast majority of shoppers, the report says. Inflation has
fallen from stratospheric levels of more than 100,000 per cent last
year to an expected level of several thousand per cent this year,
the report notes.
"There is a certain orthodoxy," agreed Asdrubal Oliveros, director
of Ecoanalitica, a consultancy, the report notes. "But it has come
very late and it is disorderly. The controls have not been lifted,
they are just not applied. It is very arbitrary," he added.
Nobody is suggesting Venezuela's economy, crippled by years of
mismanagement and reeling from US sanctions, is in anything like a
sustainable position, says the report. Gross domestic product has
more than halved in a few years, in what Ricardo Hausmann, a former
Venezuelan central banker, has called the greatest economic
collapse of modern times outside of war or natural disaster.
But some business leaders have welcomed the greater economic
freedom of recent months, even if the Maduro government's motives
were less than pure, the report relays.
"It was not out of conviction but out of necessity that the
pressure of exchange controls has been lowered," said Carlos
Larrazabal, outgoing head of Fedecamaras, the country's main
business association, the report notes. "There is a deep recession
in the productive sectors, consumption is falling dramatically,
there is no finance . . . credit is impossible," he added.
"Purchasing power has collapsed, so sales are now 20 per cent of
their former level," said the owner of one manufacturing facility.
"But I still have a factory set up to produce for a far bigger
market. So in the short term, this situation is not better. But in
the long term, it is good because there is less state
intervention," Mr. Larrazabal said.
The report notes that Mr. Pantoulas compared Venezuela to a war
economy. "Ten per cent of the population have access to all they
want," he said. "The other 90 per cent live in penury."
Indeed the Fedecamaras annual assembly, held this month at a
Caracas university, had a certain wartime feel to it, the report
relays. When the loudspeaker system failed to play the national
anthem during the opening session, delegates rose to their feet and
delivered a rousing impromptu rendition, ending with shouts of
"Viva Venezuela!".
"The private sector refuses to disappear," Mr Larrazábal said in a
defiant address to delegates. "This is not an option for us . . .
we are part of the solution, not part of the problem," the report
relays.
Asked beforehand by the Financial Times how long the private sector
could hold out, he painted a bleaker picture: "It is difficult to
predict . . . there used to be more than 12,000, nearly 13,000
industrial establishments [in 1998], now there are no more than
3,000 left." Of those, he added, a third had predicted at the end
of 2018 that they would not survive another year if policies
remained unchanged, the report discloses.
As Mr Larrazabal put it: "The speed of destruction of the economy
is much faster than the speed of expectation of a political change
which allows us to have a model of free enterprise and private
property," the report adds.
About Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and
islets in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum. Nicolas Maduro was elected president in 2013 after
the death of Chavez. Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.
Standard and Poor's long- and short-term foreign currency
sovereign credit ratings for Venezuela stands at 'SD/D'
(November 2017).
S&P's local currency sovereign credit ratings on the other hand
are 'CCC-/C'. The May 2018 outlook on the long-term local currency
sovereign credit rating is negative, reflecting S&P's view that the
sovereign could miss a payment on its outstanding local currency
debt obligations or advance a distressed debt exchange operation,
equivalent to default.
Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook
(March 2018).
Fitch's long term issuer default rating for Venezuela was last set
at RD (2017) and country ceiling was CC. Fitch, on June 27, 2019,
affirmed then withdrew the ratings due to the imposition of U.S.
sanctions on Venezuela.
VENEZUELA: Leader Suspends Talks With Opposition
------------------------------------------------
Anatoly Kurmanaev at The New York Times reports that President
Nicolas Maduro of Venezuela has suspended mediated talks with his
country's opposition movement, to protest the Trump
administration's latest sanctions.
The move threatens what many analysts and diplomats consider to be
the country's best chance of ending a crippling political and
economic crisis, according to The New York Times.
Accusing the administration of "grave and brutal aggression," Mr.
Maduro recalled his envoys, hours before they were to board a plane
to rejoin opposition negotiators and Norwegian mediators on the
Caribbean island of Barbados, the report relays. President Trump
signed an executive order freezing all Venezuelan state assets in
the United States, and his national security adviser, John R.
Bolton, threatened to impose sanctions on Mr. Maduro's remaining
trade partners, the report relays.
Venezuela has been in an ongoing recession since Mr. Maduro took
office in 2013 and initially doubled down on his predecessor's
disastrous policies of currency and price controls and
expropriations, the report discloses. As his popularity tanked, he
has increasingly relied on repression and electoral machinations to
stay in power, the report notes.
The United States has progressively cut off Mr. Maduro's access to
international finance since January, when it recognized the head of
Venezuela's opposition, Juan Guaido, as the country's legitimate
leader, the report recalls. The latest executive order is intended
to scare off Mr. Maduro's remaining trading partners in Russia and
Asia from doing business in Venezuela, the report relays.
It was unclear whether Mr. Maduro would rejoin the talks at a later
date, the report notes. Both sides have benefited from appearing
to seek a negotiated resolution to the crisis, but the latest
American sanctions have emboldened hardline opponents of the talks
within Mr. Maduro's administration, the report says.
"The Barbados dialogue is a dialogue with extremists," Mr. Maduro
said on state television after suspending the talks, the report
relays. "Many ask me why you're talking with those who want to kill
you," he added.
Following the suspension, Venezuela's hardline ruling party chief,
Diosdado Cabello, threatened to unleash a new round of political
persecution against the state's perceived enemies, the report
notes. "War is war," he added.
But some analysts and people close to Mr. Maduro's negotiating team
said they saw the suspension as tactical posturing by a government
that has few other means of responding to the steady tightening of
financial screws by the United States, the report notes.
"Leaving the negotiating table for good means destroying any chance
of loosening the sanctions," said Eugenio Martinez, an electoral
analyst at Andres Bello Catholic University in Caracas, the report
relays. He added that abandoning the talks also risked provoking
the opposition's European allies, which up to now have taken a
conciliatory stance, into joining the American sanctions, the
report notes.
A continuing presence in Barbados would also allow Mr. Maduro to
remain in control of the main negotiations over the country's
future by neutralizing rival factions in the ruling party, said Mr.
Martinez, the report relays. "If Maduro is not at the table, he
risks someone negotiating for him," he added.
The opposition signaled that it would be willing to continue the
talks, and the chief mediator, Dag Nylander of Norway, said he was
working to set a new meeting date, the report notes.
An opposition envoy, Stalin Gonzalez, tweeted from Barbados, "We
will continue working all avenues to seek the end of the crisis,"
the report relays.
The opposition's main demand is free and fair elections in the near
future, and all polls show its candidates would win in a landslide,
the report notes. The government is demanding the relaxation of
sanctions before making any political concessions, the report
discloses.
The talks have allowed the increasingly dictatorial Maduro
administration to claim it is seeking a peaceful solution, the
report relays. They have also provided the best chance of ousting
Mr. Maduro after mass protests and a military uprising earlier this
year failed to do so, the report notes.
As negotiations drag on, Venezuela's economy continues to plummet,
the report relays. The country's gross domestic product is set to
contract 35 percent this year, according to the International
Monetary Fund, the report discloses. The number of Venezuelan
refugees is projected to double by the end of 2020, to eight
million people, or a quarter of the country's precrisis population,
the report adds.
About Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and
islets in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum. Nicolas Maduro was elected president in 2013 after
the death of Chavez. Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.
Standard and Poor's long- and short-term foreign currency
sovereign credit ratings for Venezuela stands at 'SD/D'
(November 2017).
S&P's local currency sovereign credit ratings on the other hand
are 'CCC-/C'. The May 2018 outlook on the long-term local currency
sovereign credit rating is negative, reflecting S&P's view that the
sovereign could miss a payment on its outstanding local currency
debt obligations or advance a distressed debt exchange operation,
equivalent to default.
Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook
(March 2018).
Fitch's long term issuer default rating for Venezuela was last set
at RD (2017) and country ceiling was CC. Fitch, on June 27, 2019,
affirmed then withdrew the ratings due to the imposition of U.S.
sanctions on Venezuela.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week August 5 to August 9, 2019
---------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD
Noble Holding Internat 5.3 60.5 3/15/2042 KY USD
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Provincia del Chubut A 4.5 2208 3/30/2021 AR USD
Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD
Enel Americas SA 5.8 32.7 6/15/2022 CL CLP
MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD
China Huiyuan Juice Gr 6.5 46.6 8/16/2020 CN USD
Odebrecht Finance Ltd 7.0 17.0 4/21/2020 KY USD
Yida China Holdings Lt 7.0 74.3 4/19/2020 CN USD
Noble Holding Internat 6.1 62.0 3/1/2041 KY USD
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD
Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD
Polarcus Ltd 5.6 71.8 7/1/2022 AE USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
MIE Holdings Corp 7.5 56.4 4/25/2019 HK USD
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Empresa Provincial de 12.5 0.0 1/29/2020 AR USD
Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL
Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD
AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY
Plaza SA 3.5 38.3 8/15/2020 CL CLP
Banco Security SA 3.0 5.6 7/1/2019 CL CLP
Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD
Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP
City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD
Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR
Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
Empresa de Transporte 4.3 30.9 7/15/2020 CL CLP
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
SACI Falabella 2.3 50.6 7/15/2020 CL CLP
Sylph Ltd 2.4 65.1 9/25/2036 KY USD
Banco Security SA 3.0 27.4 6/1/2021 CL CLP
Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP
Sociedad Austral de El 3.0 17.0 9/20/2019 CL CLP
Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD
Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD
Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD
Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP
Esval SA 3.5 49.9 2/15/2026 CL CLP
*********
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
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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.
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Information contained herein is obtained from sources believed to
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* * * End of Transmission * * *