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/raid1/www/Hosts/bankrupt/TCRLA_Public/200103.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, January 3, 2020, Vol. 21, No. 3 Headlines B O L I V I A BOLIVIA: Expels Mexican and Spanish Diplomats P U E R T O R I C O COPY DU SERVICES: Hires Pablo E. Garcia Perez as Counsel FERRELLGAS PARTNERS: Voluntarily Delists From NYSE LA MERCED: March 10, 2020 Plan Confirmation Hearing Set STONEMOR PARTNERS: Completes C-Corporation Conversion TALLER DE FOTOPERIODISMO: Unsecureds to Get 3.07% in Plan T R I N I D A D A N D T O B A G O INLAND AND OFFSHORE: 46 Retrenched Workers Awarded TT$1.5MM V E N E Z U E L A VENEZUELA: Asks Brazil to Turn Over 'Deserters' Suspected of Raid X X X X X X X X LATAM: Countries Lagging in Reforms for Doing Business - - - - - ============= B O L I V I A ============= BOLIVIA: Expels Mexican and Spanish Diplomats --------------------------------------------- Anthony Harrup at The Wall Street Journal reports that the Bolivian government said it has ordered the Mexican ambassador and two Spanish diplomats to leave the country for interfering in its sovereign affairs. The expulsions are the latest development in a dispute between the governments of Mexico and Bolivia over at least nine Bolivians -- including members of former Bolivian President Evo Morales' government -- who Mexico granted political asylum at its mission in La Paz, according to The Wall Street Journal. Bolivia's government is demanding that Mexico hand over the asylees after it issued arrest warrants on charges related to violent protests in the wake of Mr. Morales' exile, including sedition, the report notes. Mexico is demanding that the Bolivian government respect their right to asylum, the report relays. The Mexican Foreign Ministry said it instructed Ambassador Maria Teresa Mercado to return to Mexico and that the embassy in La Paz will continue operating under the deputy chief of mission, Ana Luis Vallejo, the report relays. Bolivia's interim president, Jeanine Anez, said that aside from the Mexican ambassador, her government has ordered two Spanish diplomats -- the charge d'affaires and the consul -- to leave Bolivia, the report notes. Bolivian officials said the expulsions don't mean a rupture in diplomatic relations with Mexico or Spain, the report discloses. The order to Spain stems from an incident at the Mexican embassy residence in La Paz, the report relays. The Bolivian Foreign Ministry said Spanish embassy officials, accompanied by security personnel with their faces covered, attempted to sneak into the Mexican Embassy residence where several of the asylees have taken refuge, the report notes. The ministry, questioning the Spanish diplomats' intentions, said police blocked the vehicles from entering but that officials allowed them to enter unhindered, the report says. The Bolivian government said the incident "confirms the attitude on the part of the Mexican government and its ambassador to interfere in internal Bolivian affairs, whose behavior is raising tension in the relations between the two countries," the report relates. The Spanish Foreign Ministry responded that its charge d'affaires in Bolivia was carrying out a courtesy visit to the Mexican ambassador, the report discloses. It "expresses its outright denial that this could have been to facilitate the departure of those individuals who have taken refuge in the embassy," the report adds. Bilateral relations began souring in November when Mexico granted asylum to Mr. Morales, flying him to Mexico City, the report relays. Mr. Morales, who stepped down at the request of the Bolivian military after the Organization of American States said the election in which he sought a fourth presidential term was marred by fraud, has since moved to Argentina, the report adds. ===================== P U E R T O R I C O ===================== COPY DU SERVICES: Hires Pablo E. Garcia Perez as Counsel -------------------------------------------------------- Copy Du Services Corporation has filed an amended application with the U.S. Bankruptcy Court for the District of Puerto Rico seeking approval to hire Pablo E. Garcia Perez, as counsel. Copy Du Services requires Pablo E. Garcia Perez to represent and provide legal services to the Debtor in the Chapter 11 bankruptcy proceedings. Pablo E. Garcia Perez will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Pablo E. Garcia Perez have received a retainer in this case in the amount of $2500, from which the filing fee of $1,717 was paid. The net fees were $783. Pablo E. Garcia Perez assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Pablo E. Garcia Perez can be reached at: Pablo E. Garcia Perez 24 Suite 58 Ave Roberto Clemente Carolina, P.R. 00985 Tel: (939) 456-4849 Fax: (787)276-2750 E-mail: abogado00985@yahoo.com About Copy Du Services Corp. Copy Du Services Corporation, which derives rent from renting its commercial property to tenants, filed a Chapter 11 petition (Bankr. D.P.R. Case No. 19-05717) on Oct. 2, 2019, in Puerto Rico. PABLO E. GARCIA, ESQ., serves as the Debtor's counsel. FERRELLGAS PARTNERS: Voluntarily Delists From NYSE -------------------------------------------------- Ferrellgas Partners, L.P. filed with the Securities and Exchange Commission on Dec. 30, 2019 a Form 25 notifying the removal from listing or registration of its common units representing limited partner interests from the New York Stock Exchange LLC. Ferrellgas had notified the NYSE of its intent to voluntarily delist its Common Units from the Exchange. This decision follows the Company's receipt of notice from the NYSE that the Company is not in compliance with the continued listing standards and, as a result, has been subject to the procedures outlined in Sections 801 and 802 of the NYSE Listed Company Manual. About Ferrellgas Headquartered in Overland Park, Kansas, Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., and subsidiaries, is a distributor of propane and related equipment and supplies to customers in the United States. The Company serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia and Puerto Rico. Ferrellgas reported a net loss of $64.54 million for the year ended July 31, 2019, a net loss of $256.82 million for the year ended July 31, 2018, and a net loss of $54.50 million for the year ended July 31, 2017. As of Oct. 31, 2019, Ferrellgas had $1.44 billion in total assets, $777.06 million in total current liabilities, $1.73 billion in long-term debt, $88.77 million in operating lease liabilities, $36.91 million in other liabilities, and a total partners' deficit of $1.19 billion. Grant Thornton LLP, in Kansas City, Missouri, the Company's auditor since 2013, issued a "going concern" qualification in its report dated Oct. 15, 2019, citing that the Partnership has $357 million in unsecured notes due June 15, 2020 that are classified as current in the consolidated financial statements and its current liabilities exceeded its current assets by $667 million and its total liabilities exceeded its total assets by $1,139 million. The Partnership's business plan contemplates restructuring or refinancing its long-term arrangements and reducing outstanding indebtedness. The Partnership's ability to achieve the foregoing elements of its business plan, which may be necessary to permit the realization of assets and satisfaction of liabilities in the ordinary course of business, is uncertain and raises substantial doubt about its ability to continue as a going concern. * * * As reported by the TCR on Oct. 22, 2019, S&P Global Ratings lowered its issuer credit rating on Ferrellgas Partners L.P. to 'CCC-' from 'CCC'. The downgrade is based on S&P's assessment that Ferrellgas' capital structure is unsustainable given the upcoming maturity of its $357 million notes due June 2020. LA MERCED: March 10, 2020 Plan Confirmation Hearing Set ------------------------------------------------------- On Sept. 20, 2019, Debtor La Merced Limited Partnership SE filed with the U.S. Bankruptcy Court for the District of Puerto Rico a disclosure statement referring to a plan under chapter 11. On Dec. 10, 2019, Judge Enrique S. Lamoutte approved the disclosure statement and established the following dates and deadlines: * Objections to claims must be filed 45 days prior to the hearing on confirmation. The debtor will include in its objection to claim a notice that if no response to the objection is filed within 30 days, the motion will be considered and decided without the actual hearing. * Acceptances or rejections of the Plan may be filed in writing by the holders of all claims on/or before 14 days prior to the date of the hearing on confirmation of the Plan. * Any objection to confirmation of the Plan will be filed on/or before 21 days prior to the date of the hearing on confirmation of the Plan. * The Debtor files with the Court a statement setting forth compliance with each requirement in Sec. 1129, the list of acceptances and rejections and the computation of the same, within seven working days before the hearing on confirmation. * March 10, 2020, at 10:00 a.m. at Jose V. Toledo Fed. Bldg. & U.S. Courthouse, Courtroom 2, 300 Recinto Sur Street, Old San Juan, Puerto Rico is the hearing for the consideration of confirmation of the Plan and of such objections as may be made to the confirmation of the Plan. A full-text copy of the order is available at https://tinyurl.com/rfoyakl from PacerMonitor.com at no charge. About La Merced LP La Merced Limited Partnership, S.E., is a single asset real estate, as defined in 11 U.S.C. Section 101(51B)). Based in San Juan, Puerto Rico, La Merced LP filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-06858) on Nov. 27, 2018. In the petition signed by Luz Celenia Castellano, administrator, the Debtor disclosed $6,088,228 in liabilities. Judge Enrique S. Lamoutte Inclan is the case judge. Nelson Robles Diaz Law Offices, PSC, led by founding partner Nelson Robles Diaz, is the Debtor's counsel. STONEMOR PARTNERS: Completes C-Corporation Conversion ----------------------------------------------------- StoneMor Partners L.P. ("Partnership") and StoneMor GP, LLC ("GP") have completed the previously announced conversion of GP from a Delaware limited liability company into a Delaware corporation named StoneMor Inc. and the merger of a wholly owned subsidiary of GP with and into the Partnership, with the Partnership continuing as the surviving entity and a subsidiary of the Company. At the effective time of the Merger, each Partnership common unit and preferred unit was converted into the right to receive one share of common stock, par value $0.01 per share of the Company. Based on the Partnership common units and preferred units outstanding, the Company issued approximately 94.4 million Company Shares to Partnership unitholders in connection with the Merger. The Company Shares will begin trading on the New York Stock Exchange under the ticker symbol "STON" when the market opens on Jan. 2, 2020. In addition, StoneMor Partners L.P.'s common units will no longer trade on the NYSE. Effective upon the closing of the Merger, the current members of the GP Board joined the Board of Directors of the Company. 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 321 cemeteries and 89 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 $72.70 million for the year ended Dec. 31, 2018, compared to a net loss of $75.16 million for the year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had $1.73 billion in total assets, $1.77 billion in total liabilities, $57.50 million in total redeemable convertible preferred units, and a total partners' deficit of $104.02 million. * * * As reported by the TCR on Feb. 14, 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. As reported by the TCR on July 3, 2019, S&P Global Ratings affirmed its 'CCC+' issuer credit rating on StoneMor Partners L.P. The outlook remains negative. S&P said, "The rating affirmation reflects our view that despite the removal of near term maturities and sufficient liquidity over the next twelve months, we continue to view StoneMor's capital structure as unsustainable in the long term given our projection for persistent free cash flow deficits." TALLER DE FOTOPERIODISMO: Unsecureds to Get 3.07% in Plan --------------------------------------------------------- Taller de Fotoperiodismo, Inc., filed a Chapter 11 plan that contemplates its continued business operations. The Debtor is in the process of obtaining additional licenses and accreditation to offer educational services in Puerto Rico, which will result on an expansion of the services already offered in the communities and on the Debtor's premises, thru the funds received by governmental agencies. Prior to the filing of the Petition, on 2013 the Debtor lent the amount of $125,000 to an affiliate corporation for the purchasing of a property in the municipality of Cabo Rojo. At this time, the property is in the process of being sold and the Debtor expects to receive the totality of the sale proceeds to be directed as infusion to the finances to implement the plan, in order to obtain the aforementioned licenses and accreditations required by the governmental agencies. The Plan treats claims in this manner: * Class 1 - The Secured Claim of PR Recovery and Development JV, LLC ("PRRDJV"). Total claim $1,022,394. PRRDJV will receive a monthly payment of $4,212.50 for 20 years, which represents an annual interest of 5.75%. * Class 2 - The Secured of Banco Popular de Puerto Rico ("BPPR"). Total claim $153,410. The Debtor and BPPR filed a Stipulation in Docket 97 to set off the claim completely. * Class 3 - The Secured Claim of the Internal Revenue Center ("IRS"). Total claim $246,070. This class will be paid entirely plus annual interest of 4.25%, to be satisfied in 48 payments of monthly installments of approximately $4,559.57 until payment in full. * Class 4 - The Secured Claim of Toyota Credit. Claims arising from two vehicle loans. 2017 Toyota Rav4 for a total claim amount of $24,759 will be satisfied in 55 monthly payments of $452.16 until payment in full. 2017 Toyota Yaris for a total claim amount of $17,021 will be satisfied in 55 monthly payments of $310.13 until payment in full. * Class 5 - The Secured Claim of Popular Auto. Claim arising from the vehicle loan of a 2013 Ford E250 for a total amount of $2,312. The Debtor has fully paid of the entire claim. * Class 6 - General Unsecured Claims of $5,000 or less. This class will receive a lump-sum distribution of $2,000 on the Effective Date of the Plan. Each claim holder in this class will receive approximately 2.3% of the allowed amount. * Class 7 - General Unsecured Claims over $5,001. The Debtor will pay $1,500 monthly to the general unsecured creditors for a 5-year period. Each claim holder in this class will receive approximately 3.07% of the allowed amount. A full-text copy of the Disclosure Statement dated Dec. 9, 2019, is available at https://tinyurl.com/u58s4xb from PacerMonitor.com at no charge. Counsel for the Debtor: JAVIER VILARINO VILARINO & ASSOCIATES LLC PO BOX 9022515 San Juan, PR 00902-2515 Tel: (787) 565-9894 E-mail: jvilarino@vilarinolaw.com About Taller De Fotoperiodismo Taller de Fotoperiodismo, Inc., is a local non-profit corporation created under the laws of the Commonwealth of Puerto Rico. The foundation offers photojournalism workshop to children, youth and adults. It is directed by its president, Mr. Pedro Borges. Prior to the filing of the voluntary petition, a judicial creditor performed a series of garnishment of Debtor's bank accounts pursuant to a State Court order. The financial decline was triggered by a significant reduction in income and complications with the transition of leadership caused by the decease of the former president. The totality of this circumstances resulted in the Debtor's insolvency. Taller De Fotoperiodismo Inc. sought chapter 11 protection (Bankr. D.P.R. Case No. 19-00091) on Jan. 10, 2019. The Debtor was estimated to have $1 million to $10 million in assets and liabilities. The Hon. Enrique S. Lamoutte Inclan is the case judge. Javier Vilarino of VILARINO & ASSOCIATES LLC is the Debtor's counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== INLAND AND OFFSHORE: 46 Retrenched Workers Awarded TT$1.5MM ----------------------------------------------------------- Trinidad Express reports that forty six workers retrenched in February 2019 from Inland and Offshore Company Ltd (IOCL) have been awarded more than $1.5 million in severance benefits owed to them. Attorney Gerald Ramdeen led former employees of IOCL in a toast at his Cornelio Street, Port of Spain office, following the High Court win in which the company was ordered to pay the workers the severance benefits owed to them since February 2019. Former captain Stephen Chapman, who was employed with IOCL for 17 years, and who spoke for the workers, fought back tears as he collected a cheque from the attorney, according to Trinidad Express. ================= V E N E Z U E L A ================= VENEZUELA: Asks Brazil to Turn Over 'Deserters' Suspected of Raid ----------------------------------------------------------------- Deisy Buitrago and Luc Cohen at Reuters report that Venezuela asked Brazil to hand over five military "deserters" who are suspected of involvement in a raid on a remote military outpost in southern Venezuela last weekend, officials said. Separately, Brazil's government said in a statement it was processing asylum claims from five deserting Venezuelan soldiers it had picked up earlier, according to Reuters. The government did not mention the Dec. 22 raid, but a Brazilian military source said the soldiers were suspected of involvement in the attack, the report notes. One Venezuelan soldier died in the attack on the garrison in Bolivar state, near the Brazil border, the report relays. Venezuelan President Nicolas Maduro said three suspects were detained, after several arrests, and that the government recovered 111 of the 120 rifles and eight of the nine grenade launchers that were stolen, the report notes. Maduro initially accused Colombia, Peru and Brazil -- all governed by fierce critics of his socialist government -- of complicity with the attack, which all three countries denied, the report says. But he said he expected Brazil would hand the five suspects over to "comply with international law," the report relays. "A military deserter who enters another country and is detained should be handed over immediately," Maduro said in a state television address, the report notes. "Sooner rather than later, these terrorists will be in the hands of Venezuelan justice," he added. Venezuela is undergoing a deep economic crisis marked by high inflation, rolling blackouts and rising child malnutrition, the report notes. The government said it had detained a former national guard member in connection with the raid, who was among hundreds of soldiers who deserted to Colombia earlier this year during a failed effort by the opposition to bring in humanitarian aid, the report notes. Some of those soldiers have said they are prepared to take up arms to bring down Maduro, adds the report. 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 =============== LATAM: Countries Lagging in Reforms for Doing Business ------------------------------------------------------ RJR News reports that the World Bank said economies in Latin America and the Caribbean continue to lag in terms of reforms as it relates to doing business in the region. In its flagship publication "Doing Business 2020", the financial institution noted that of the 294 regulatory reforms implemented between May 2018 and May 2019, worldwide, 115 economies made it easier to do business, according to RJR News. Jamaica was the top named CARICOM country ranked at number 71 of the 190 countries surveyed, the report notes. ********* 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 2020. 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 * * *