/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/200123.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, January 23, 2020, Vol. 21, No. 17 Headlines A R G E N T I N A ARGENTINA: S&P Lowers Local Currency SCR to 'SD' on Debt Exchange ARGENTINA: To Send Debt Bill to Congress Ahead of Talks B E L I Z E CHOICE BANK: Bid Deadline for Bank Assets Due Feb. 10 E L S A L V A D O R EL SALVADOR: S&P Affirms 'B-/B' Sovereign Credit Ratings J A M A I C A JAMAICA: Shows Decline in Business Confidence, Reports Says JAMAICA: STATIN Reports 6.2% Inflation for December P U E R T O R I C O BAHIA DEL SOL: Triangle Cayman Gets More Time to Reply to Sale BETTERECYCLING CORP: Lenders File Supplement to Cash Motion BETTERECYCLING CORP: Opposes Lenders Cash Collateral Motion BETTEROADS ASPHALT: Lenders Resolve Fund Dispute with Sureties PONCE REAL ESTATE: Granted More Time to File Amended Plan - - - - - ================= A R G E N T I N A ================= ARGENTINA: S&P Lowers Local Currency SCR to 'SD' on Debt Exchange ----------------------------------------------------------------- S&P Global Ratings, on Jan. 21, 2020, lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC-/C'. S&P affirmed the foreign currency sovereign credit ratings at 'CCC-/C'. The outlook on the long-term foreign currency sovereign credit rating remains negative. S&P also took the following rating actions: -- S&P lowered the long-term local currency-denominated issue ratings to 'CC' from 'CCC-'; -- S&P affirmed the long-term foreign currency issue ratings at 'CCC-'; -- S&P affirmed its 'B-' transfer and convertibility assessment on Argentina; and -- S&P lowered its national scale rating on Argentina to 'SD' from 'raCCC-'. Outlook The negative outlook on the long-term foreign currency rating reflects the downside risks to timely and full payment of debt over the short term amid stressed economic and financial market dynamics. The sovereign's access to liquidity is likely to remain constrained as the Fernandez Administration outlines its economic policies while engaging in dialogue with bondholders, bankers, and the International Monetary Fund. S&P said, "We could lower the foreign currency ratings if the government finalizes terms with bondholders for a potential debt restructuring that is characterized as a distressed debt exchange based on our methodology. Such a restructuring could entail an extension of maturities, which will not be compensated by the issuer, or a reduction in the face value of debt. Additionally, we could lower the ratings if economic and financial stresses further threaten timely debt service or the sovereign misses a debt payment. "We could raise the ratings following implementation of a debt restructuring if policy signals and execution start to successfully turn around or stabilize private-sector confidence, market turbulence subsides, and the government regains access to market financing." Rationale S&P said, "We lowered our local currency sovereign credit ratings on Argentina following a voluntary exchange offer of peso-denominated short-term paper (LECAPs) on Jan. 20, 2020. We view this exchange offer as distressed and tantamount to default. The offer, in our view, exchanges securities according to their market price, although investors who participated will receive less value than the promise of the original securities. Furthermore, we view the offer as distressed, rather than purely opportunistic, given that holders may have accepted less than the original promise because of the risk that the issuer would not fulfill its original obligations." Since the new terms became effective immediately, the default on these short-term instruments has effectively been cured. However, significant uncertainty remains about the plans to service some sizable peso-denominated obligations that come due over the coming months. S&P said, "As a result, we are lowering the long-term local currency issue ratings to 'CC' from 'CCC-'. In addition, as long as we believe the likelihood of a next default is virtually certain, we will not raise the local currency issuer credit ratings from 'SD/SD'." The long-term foreign currency rating of 'CCC-' incorporates evidence of the administration's willingness and commitment to make upcoming U.S. dollar-denominated debt service payments, subject to a 'CCC-' level of risk, while it works on a broader economic and debt strategy. The government paid about US$900 million on its Centennial Bond and Discount Bond (in local and New York law) at the end of December and early January. Minister of Finance Martin Guzman has indicated that he will soon be initiating a discussion with bondholders in New York, and S&P expects the administration to advance with a restructuring plan for its long-term foreign currency debt with the private sector in the coming months. The timing and terms, however, remain unclear. The 'B-' transfer and convertibility assessment remains higher than the sovereign rating because the government continues to signal its intention that tightened capital controls will not apply to principal and interest payments for nonsovereign entities. However, S&P may lower its transfer and convertibility assessment if, in S&P's view, capital controls are likely to become more severe. S&P's credit ratings on Argentina reflect its unfavorable debt dynamics, a volatile exchange rate (which has sharply depreciated recently), high inflation, and a deep economic recession. They also reflect the deterioration of its financial environment and strained investor confidence. These factors have limited the sovereign's capacity to pay, leading to a third default on its short-term debt in January 2020, following the re-profilings in December and August 2019. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List Downgraded To From Argentina Sovereign Credit Rating Local Currency SD/SD CCC-/Negative/C Senior Unsecured CC CCC- Ratings Affirmed Argentina Sovereign Credit Rating Foreign Currency CCC-/Negative/C Transfer & Convertibility Assessment B- Senior Unsecured CCC- ARGENTINA: To Send Debt Bill to Congress Ahead of Talks ------------------------------------------------------- Patrick Gillespie and Scott Squires at Bloomberg News report that Argentina will send a bill to Congress outlining a plan to address the debt crisis and make payments "sustainable," Economy Minister Martin Guzman said. South America's second-largest economy isn't able to pay its debt under current conditions and will look to either alter maturity dates, interest rates or outstanding capital amounts, Guzman said, according to Bloomberg News. Exact details of the proposal will have to wait, he said, though the bill will cover foreign law bonds as well, Bloomberg News notes. "We have the willingness to pay, but the country needs to regenerate its capacity to pay," Guzman told reporters in Buenos Aires, Bloomberg News relates. "We are taking firm steps to achieve that, but we don't want to make promises that we cannot keep," he added. Bloomberg News notes that the bill is a first step in Argentina's efforts to restructure billions of dollars in bonds and loans with private creditors and the International Monetary Fund. Guzman and President Alberto Fernandez have have yet to unveil details of their strategy to renegotiate the debt, although Fernandez recently said he wants talks to wrap up by March 31 because debt payments balloon after that date. Speaking at the World Economic Forum in Davos, economist Joseph Stiglitz said investors should brace for "significant haircuts" in Argentine debt, Bloomberg News relates. The Nobel laureate was Guzman's mentor at Columbia University, Bloomberg News discloses. The government won't offer a bailout to the Province of Buenos Aires which has $250 million in debt due on Jan. 26, Guzman said, asked creditors to show good faith by agreeing to a delay in order to give time for broad negotiations, Bloomberg News notes. The province asked bondholders to answer by Jan. 22 whether they agree to postpone the capital payment until May 1, Bloomberg News relates. At least 75% of bondholders must agree, Bloomberg News says. "We are maintaining our position that it doesn't serve anyone's interest to bail out the province. But the nation and the province are not in a position to pay the maturities," Guzman said, Bloomberg News relays. Argentina's century bond due 2117 is trading at 47 cents on the dollar, while Province of Buenos Aires' bonds due 2021 are trading at 57.3 cents on the dollar, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. It's capital is Buenos Aires. Alberto Angel Fernandez is the current president of Argentina after winning the October 2019 general election. He succeeded Mauricio Macri in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019 according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. Moody's credit rating for Argentina was last set at Caa2 from B2 with under review outlook. Moody's rating was issued on Aug. 30, 2019. S&P Global Ratings, in December 2019, raised its foreign currency sovereign credit ratings on Argentina to 'CC/C' from 'SD/D'. S&P's outlook on the long-term sovereign credit ratings is negative. Fitch Ratings, in December 2019, upgraded Argentina's Long-Term Foreign-Currency Issuer Default Rating to 'CC' from 'RD', and its Short-Term Foreign-Currency IDR to 'C' from 'RD'. DBRS, Inc. meanwhile downgraded Argentina's Long-Term and Short-Term Foreign Currency - Issuer Ratings to Selective Default (SD), from CC and R-5, respectively, also in December 2019. =========== B E L I Z E =========== CHOICE BANK: Bid Deadline for Bank Assets Due Feb. 10 ----------------------------------------------------- The liquidator of Belize-based Choice Bank Ltd, which is in liquidation, intends to sell certain assets of bank subject to higher and better bids from qualified buyers. The bid deadline for the sale of the Bank assets is Feb. 10, 2020. The Bank assets to be sold include but are not limited to certain loans, limited partnership interests, leases, notes, together with all property securing such obligations. They are to be sold for a purchase price of $10,500,000, subject to certain adjustments. In the event Qualified Bidders exist, the Liquidator will conduct an auction that will be completed no later than three business days following the Bid Deadline. The international banking license for Choice Bank Ltd. was revoked on June 29, 2018 on the recommendation of the Central Bank of Belize and the bank is being liquidated. Kareem Michael was appointed as liquidator of the Bank and has the capacity to sell assets of the bank. Information about the Bank Assets and the sale process may be obtained from the Liquidator's counsel: David A. Scheffel Dorsey & Whitney LLP 51 West 52nd Street New York, New York 10019 E-mail: scheffel.david@dorsey.com ceccacci.maria@dorsey.com ===================== E L S A L V A D O R ===================== EL SALVADOR: S&P Affirms 'B-/B' Sovereign Credit Ratings -------------------------------------------------------- S&P Global Ratings affirmed its 'B-/B' long- and short-term sovereign credit ratings on El Salvador. The outlook remains stable. S&P also affirmed its 'AAA' transfer and convertibility (T&C) assessment. Outlook S&P said, "The stable outlook reflects our expectation of only moderate economic growth of around 2.5%, along with stable fiscal and external deficits and debt levels over the coming couple of years. We expect that the government will make only gradual progress in implementing its plans for boosting economic growth and strengthening public finances. "Faster-than-expected economic growth and a stronger fiscal and external stance that ultimately results in declining debt could lead us to raise the ratings within the next 12-24 months. "In contrast, we could lower the ratings over the same period of time if economic performance deteriorates significantly, with GDP per capita persistently growing below the level of rated peers, or if fiscal deficits result in the sovereign's debt burden consistently rising by more than 4% of GDP annually." Rationale The ratings on El Salvador balance its recently lessening political polarization, which has reduced the risk of debt repayment mismatches, with its fiscal and external deficits that sustain a high debt burden and the country's dependence on external financing. The ratings also incorporate the country's low income, with GDP per capita estimated at $4,200 in 2019, and S&P's forecast of only moderate annual GDP growth of 2.5% up to 2022. In addition, El Salvador has limited monetary flexibility, as a fully dollarized economy, and limited contingent liabilities arising from its stable banking system. Institutional and economic profile: Political polarization has eased, but economic growth remains moderate -- The victory of President Nayib Bukele eased historical political polarization and could enhance cooperation among government branches and political parties. -- Despite public optimism and some initially positive steps, it will be difficult to accelerate economic growth over the next two years. -- S&P expects that GDP per capita growth will average around 2% in the next two years. Nayib Bukele's victory in the presidential election last year--under the party Gran Alianza por la Unidad Nacional--represents an important change in the country's political landscape, historically dominated by the Frente Farabundo Marti para la Liberacion Nacional and the Alianza Republicana Nacionalista. The election of a young president from a non-traditional political party, as well as the likely strengthening of his own political party (Nueva Ideas), could help consolidate a multiparty political system. It could gradually enhance cooperation between the presidency and the Congress and reduce the polarization between political parties. This would be a significant change from El Salvador's deep divisions and gridlock between the two parties that have governed in recent decades. A smooth change in government, Congressional approval of an external bond issuance to roll over a Eurobond at the end of last year, and approval of the 2020 budget signal easing political polarization. Also, since 2019, the budget approval includes corresponding financing requirements, as per Article 14 of the Fiscal Responsibility Law. All these events, in S&P's view, constitute important changes since the sovereign defaulted in 2017 on pension-related obligations. The new government has focused on tackling crime and violence with initially positive results and on strengthening the relationship with the private sector. It aims to reduce red tape and burdensome regulations to open business to facilitate private investment. Also, the government has been clear in its intention to improve relations with the U.S., its main trading partner. After six months in office, President Bukele enjoys strong popular support, and overall public sentiment has improved. However, S&P's not yet seen stronger economic growth. It is still early to assess whether the Bukele Administration will succeed in consistently boosting highly needed public infrastructure investment. In addition, despite recent progress, security problems remain a challenge and could continue affecting private investment. S&P said, "We expect GDP growth to hover around 2.5% on average during 2020-2022. This would represent GDP per capita growth around 2% on average. We estimate that El Salvador's GDP per capita reached close to $4,200 in 2019, among the lowest of the sovereigns we rate." The country has suffered from many years of low investment, low GDP growth, high emigration, weak competitiveness, and political gridlock. The country continues to depend on exports of basic products and has been unable to develop a higher-value-added market or stronger secondary sector. As a small and open economy, El Salvador's economic performance is closely linked to the U.S., which buys 42% of its goods exports. Also, about one-third of its population lives in the U.S., an important source of remittances. El Salvador's economy suffers from limited industrial diversification and poor labor market conditions. El Salvador continues to rank poorly in the Human Development Index, ranking 121 out of 189 countries. It has significant shortfalls in basic services and infrastructure. Raising potential growth in the coming years will require reforms to foster competitiveness and investment, supported by sustained measures to reduce crime. Job creation through more dynamic economic activity is essential to tackle the large informal sector, which employs about 70% of the working-age population, according to the International Monetary Fund. Flexibility and performance profile: Limited fiscal and monetary flexibility make the country vulnerable to external shocks -- Stronger fiscal consolidation would be needed to improve El Salvador's limited fiscal flexibility. -- The current account deficits (CADs) increased in recent years and are expected to stay relatively high in 2020-2022. -- Dollarization should keep inflation low. Fiscal consolidation efforts, supported by the Fiscal Responsibility Law of 2016 and pension reform in 2017, have proved insufficient to reduce the sovereign's high debt burden. Since 2018, the general government deficit increased, and S&P forecasts that it will stay around 3% of GDP in 2020-2022, which implies a similar increase in its net general government debt. With general government revenues likely growing at the pace of nominal GDP, we expect net general government debt to stay around 67% of GDP and interest payments to exceed 15% of general government revenues, as has been the case since 2018. The debt burden had risen in recent years, largely because of the need to fund obligations of the pension system, highlighting the importance of the pension reform approved two years ago. A combination of higher economic growth and measures to raise more revenues could improve El Salvador's limited fiscal flexibility. This continues to be a key credit constraint, along with restricted monetary flexibility due to the use of the U.S. dollar as its official currency. In S&P's view, significant shortfalls in basic services and infrastructure would continue constraining the government's ability to reduce its expenditures, while a large informal economy limits its ability to raise additional revenues. As of September 2019, 27.6% of the sovereign's debt is with multilateral institutions while 64% is commercial debt (bond issuances). Most of its debt (86%) is external, and 52% has a maturity beyond 11 years. El Salvador's internal debt consists of short-term LETES, as well as long-term certificates for pension investments (CIPs) issued for future pension obligations. LETES represented 6% of total debt. S&P continues to make a negative adjustment to El Salvador's debt assessment because nonresidents hold over 60% of sovereign debt, which is not likely to change in the coming two years. Externally, El Salvador's position has worsened over the last two years, ending the positive trend of the previous five years. Slower remittances growth and an increase in the import bill of oil-related products led to a larger CAD in 2018 and 2019. Exports also reflected lower prices of coffee and sugar. S&P is forecasting the CAD to stay around 4.6% of GDP in 2020-2022, similar to the last two years, assuming slower remittances growth and a trade deficit close to 23% of GDP. S&P estimates foreign direct investment (FDI), which will partially cover the CAD, to hover around 2.6% of GDP in 2020-2022. External borrowing by the corporate sector, commercial banks, and the sovereign will cover the rest of the CAD. As a result, we expect El Salvador's gross external financing needs to remain above 100% of current account receipts and usable reserves, and its narrow net external debt to average 85% of its current account receipts. El Salvador's high debt burden and its concentration of trade and remittances with the U.S. make it vulnerable to external shocks and adverse shifts in market sentiment. In addition, exports remain highly concentrated in manufacturing (maquila), which accounts for above 95% of total exports. Over the next years, the custom union with Honduras and Guatemala, a project that is progressing, could improve commercial relationships in the zone and with their trading partners. S&P's external assessment of El Salvador reflects material data inconsistencies, with important mismatches between balance of payments flows and external debt stocks. In 2018, these mismatches were equivalent to 10% of both the current account receipts and the FDI. S&P said, "The country moved to full dollarization in 2001, and we believe this will continue in the coming years. This supports our 'AAA' T&C assessment, as well as our opinion that the sovereign would not restrict dollar outflows by private parties to make debt-service payments. While we expect that dollarization will continue to contain inflation, the inflexible monetary regime has not helped to promote growth and investment. "We assess El Salvador's banking system in our Banking Industry Country Risk Assessment (BICRA) group '8'. (BICRAs are grouped on a scale from '1' to '10', ranging from what we view as the lowest-risk banking systems [group '1'] to the highest-risk [group '10'].) We believe that the banking system and the public-sector enterprises pose a limited contingent liability to the sovereign." El Salvador has a relatively small state-owned enterprise sector, thanks to privatization the sovereign implemented in previous years. Ratings List Ratings Affirmed El Salvador Sovereign Credit Rating B-/Stable/B Senior Unsecured B- Transfer & Convertibility Assessment Local Currency AAA ============= J A M A I C A ============= JAMAICA: Shows Decline in Business Confidence, Reports Says ----------------------------------------------------------- RJR News reports that the latest Jamaica Chamber of Commerce Business and Consumer Confidence report shows a decline in business confidence. The survey was for the fourth quarter of 2019, according to the report. Managing Director of Market Research Services, Don Anderson, noted that recent surveys indicated that business confidence was waning, the report relates. He also said that business confidence was down in all the areas covered by the survey, the report says. Meanwhile, Economist and Opposition Senator Dr. Andrew Haughton, has criticised the Statistical Institute of Jamaica, STATIN, for the method used to gain data for unemployment figures, the report discloses. According to Haughton, who was speaking on Power 106, said the method is flawed and should be revisited, the report adds. About Jamaica As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings in September 2019 raised its long-term foreign and local currency sovereign credit ratings on Jamaica to 'B+' from 'B'. The outlook is stable. At the same time, S&P Global Ratings affirmed its 'B' short-term foreign and local currency sovereign credit ratings on the country. S&P Global Ratings also raised its transfer and convertibility assessment to 'BB-' from 'B+'. RJR News reported in June 2019 that Steven Gooden, Chief Executive Officer of NCB Capital Markets, warned that the increasing liquidity in the Jamaican economy might result in heightened risk to the financial market if left unchecked. This, he said, is against the background of the local administration seeking to reduce the debt to GDP to 60% by the end of the 2025/26 fiscal year, which will see Government repaying more than J$600 billion which will get back into the system, according to RJR News. JAMAICA: STATIN Reports 6.2% Inflation for December --------------------------------------------------- RJR News reports that the Statistical Institute of Jamaica (STATIN) is reporting that point-to-point inflation for Jamaica last month was 6.2 per cent. That was a sharp increase when compared to 3.4 per cent in September, according to RJR News. In a news release, the Bank of Jamaica (BOJ) said the inflation outturn was not anticipated and was higher than the target of four to six per cent, the report notes. The higher inflation rate was primarily influenced by faster increases in food and energy-related prices in the consumer price index, the report adds. About Jamaica As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings in September 2019 raised its long-term foreign and local currency sovereign credit ratings on Jamaica to 'B+' from 'B'. The outlook is stable. At the same time, S&P Global Ratings affirmed its 'B' short-term foreign and local currency sovereign credit ratings on the country. S&P Global Ratings also raised its transfer and convertibility assessment to 'BB-' from 'B+'. RJR News reported in June 2019 that Steven Gooden, Chief Executive Officer of NCB Capital Markets, warned that the increasing liquidity in the Jamaican economy might result in heightened risk to the financial market if left unchecked. This, he said, is against the background of the local administration seeking to reduce the debt to GDP to 60% by the end of the 2025/26 fiscal year, which will see Government repaying more than J$600 billion which will get back into the system, according to RJR News. ===================== P U E R T O R I C O ===================== BAHIA DEL SOL: Triangle Cayman Gets More Time to Reply to Sale -------------------------------------------------------------- Judge Brian K. Testar of the U.S. Bankruptcy Court for the District of Puerto Rico granted the request of Triangle Cayman Asset Co. requesting extension of time of seven days to state position as to Bahia Del Sol Corp's proposed sale of the real property currently known as "Plaza Parguera Hotel" located at La Parguera Ward, Road 304, Km. 3.2, Lajas, Puerto Rico, to Puerto Rico Asset Management, LLC for $1.3 million, subject to overbid. The Title study shows promissory notes in the amounts of $750,00 and $3.725 million, both mortgages subsequently modified. The holder of the notes is secured creditor Triangle who has been proposed payment of $900,000 in full payment of all outstanding amounts due to secured creditor. The sum of $900,000 represents full payment of principal, interest, default interest, costs, insurance and expenses including the sum of $206,194 in attorney's fees. The Debtor has complied with post-petition monthly adequate protection payments of $3,355, amount which represents monthly per diem. About Bahia Del Sol Corporation Bahia Del Sol Hotel Corporation filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 19-03234) on June 5, 2019, estimating under $1 million in both assets and liabilities. The Debtor tapped Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc., as counsel. BETTERECYCLING CORP: Lenders File Supplement to Cash Motion ----------------------------------------------------------- Firstbank Puerto Rico, Banco Santander de Puerto Rico, the Economic Development Bank for Puerto Rico, and administrative agent Banco Popular de Puerto Rico -- as lenders to Betterecycling Corporation -- filed a supplement to their motion (which sought to direct payment to the lenders of the foreclosed accounts receivable, prohibit use of the lenders' cash collateral and relief for adequate protection) in the Chapter 11 case of Betterecycling Corporation. By said supplement, the Lenders amend the cash collateral motion to exclude from the relief sought therein any remedies with respect to certain disputed funds asserted by CNA Surety, Western Surety Company and Continental Casualty Company. The sureties, in an opposition filed in Court, alleged that they have a superior interest over potential funds, to that of the lenders. The funds include (1) funds Betterecycling may receive under the C & T contract and under the LPH contract. Moreover, the lenders disclosed in the supplement that the Debtor has failed to respond to their request for acknowledgment to comply with the interim order, and has used the lenders' cash collateral without the lenders' consent or prior Court authorization (as can be seen in the Debtors' October MOR), contrary to the requirements of Section 363 of the Bankruptcy Code. The lenders said the Debtor has also used part of the cash collateral to continue transfers to insiders. These events, the lender said, increase the need for interim and urgent relief as sought in the cash collateral motion. A copy of the supplement is available at https://tinyurl.com/sfx9o2x from PacerMonitor.com at no charge. The lenders, accordingly, filed a motion stating that the contested matters created in connection with the cash collateral motion and the sureties' opposition relating to the disputed funds have been resolved. A copy of the motion is available at https://tinyurl.com/rw8y3kj from PacerMonitor.com at no charge. About Betterecycling Corporation Betterecycling Corporation produces gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants. Based in San Juan, P.R., Betterecycling Corporation filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 17-04157) on Jun. 9, 2017. Judge Enrique S. Lamoutte Inclan oversees the case. Lugo Mender Group, LLC, is the Debtor's legal counsel. BETTERECYCLING CORP: Opposes Lenders Cash Collateral Motion ----------------------------------------------------------- Betterecycling Corporation opposed the motion which seeks to direct payment of foreclosed accounts receivable and prohibit use of cash collateral filed by their lenders Firstbank Puerto Rico, Banco Santander de Puerto Rico, and the Economic Development Bank for Puerto Rico, with Banco Popular de Puerto Rico (BPPR), administrative agent. According to the Debtor, the lenders claim to hold a perfected priority lien over all of the other proceeds and cash collateral generated, without specifying the particular assets owned by the Debtor. The same can be said of protection remedies being sought which lacked specificity, the Debtor related. Wigberto Lugo Mender, Esq., at Lugo Mender Group, LLC, the Debtor's counsel, said that the second crucial defect lies on the creditors asserting remedies which seek to greatly affect the estate and its creditors, without filing a proof of claim against the estate. Moreover, the lenders and BPPR attempt to move the Court towards granting an array of remedies which substantially exceed the scope of Section 363 of the Bankruptcy Code, making references to Section 363 without distinction to prepetition, pre-order for relief, as well as to post- order for relief matters. Also, the lenders seek to be labelled as the owners of a substantial amount of funds without following proper procedural ways, Mr. Lugo Mender complained. Accordingly, the Debtor asked the Court to deny the lenders' cash collateral motion as being procedural and factual defective. A copy of the objection is available at https://tinyurl.com/uocw4au from PacerMonitor.com free of charge. About Betterecycling Corporation Betterecycling Corporation produces gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants. Based in San Juan, P.R., Betterecycling Corporation filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 17-04157) on Jun. 9, 2017. Judge Enrique S. Lamoutte Inclan oversees the case. Lugo Mender Group, LLC, is the Debtor's legal counsel. BETTEROADS ASPHALT: Lenders Resolve Fund Dispute with Sureties -------------------------------------------------------------- Firstbank Puerto Rico, Banco Santander de Puerto Rico, the Economic Development Bank for Puerto Rico, and administrative agent Banco Popular de Puerto Rico, as lender entities to Betteroads Asphalt LLC, filed a motion informing the Bankruptcy Court that the contested matter relating to certain disputed funds asserted by CNA Surety, Western Surety Company and Continental Casualty Company (which the Debtor may receive) have been resolved. A copy of the motion to inform is available at https://is.gd/2wq2wK from PacerMonitor.com free of charge. The Lenders previously filed a supplement to the motion which seeks direct payment to them of foreclosed accounts receivable and to prohibit use of cash collateral. By said supplement, the Lenders amend the cash collateral motion, removing from the relief sought therein remedies to disputed funds which the Debtor may receive under the USVI contract and the VIPA contract. The Sureties allegedly have a superior interest over these potential funds, to that of the lenders. A copy of the supplement is available free of charge at https://is.gd/UV1EEc from PacerMonitor.com. About Betteroads Asphalt Betteroads Asphalt LLC produces warm mix asphalt, which is used in airports, highways, neighborhoods and environment projects. Betterecycling Corporation produces gasoline, kerosene, distillate fuel oils, residual fuel oils and lubricants. Both companies are based in San Juan, P.R. On June 9, 2017, creditors commenced involuntary bankruptcy petitions under Chapter 11 of the Bankruptcy Code against Betteroads Asphalt LLC (Bankr. D.P.R. Case No. 17-04156) and Betterecycling Corporation (Bankr. D.P.R. Case No. 17-04157). On Oct. 11, 2019, the court entered the "order for relief" after finding that the involuntary petitions were not filed for an improper bankruptcy purpose or with bad faith. PONCE REAL ESTATE: Granted More Time to File Amended Plan --------------------------------------------------------- Ponce Real Estate Corp. in December 2019 sought and obtained from the bankruptcy court in Puerto Rico a 21-day extension to file an amended plan and disclosure statement. On Jan. 13, 2020, the Debtor filed a motion seeking a 7-day extension of the deadline. The Debtor's counsel explained that that the recent earthquake and tremors mostly affecting the southwestern district of Puerto Rico, including downtown areas in the city of Ponce, were most of the Debtor's real properties are located. Also, the power in the San Juan metropolitan area was disrupted for various days, including the building where the counsel's office is located. At present, counsel said that it was waiting for a preliminary report by the Debtor of the conditions of the properties of the estate as well as those not part of the estate serving as collateral for the Debtor's loans with Triangle REO PR Corp., the largest creditor. Judge Edward A. Godoy on Jan. 16 granted the 7-day extension. About Ponce Real Estate Corp. Ponce Real Estate Corp., a real estate company headquartered in Ponce, Puerto Rico, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-06805) on Nov. 24, 2018. At the time of the filing, the Debtor estimated assets of $1 million to $10 million and liabilities of the same range. The Debtor tapped EMG Despacho Legal, CRL as its legal counsel, and Tamarez CPA, LLC as its accountant. ********* 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. 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