/raid1/www/Hosts/bankrupt/TCRLA_Public/200227.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, February 27, 2020, Vol. 21, No. 42
Headlines
A R G E N T I N A
ARGENTINA: Price Tussle, Coronavirus Hammer Beef Train to China
B R A Z I L
JBS SA: Expands Reach in China
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Firms Wants Pact to Guarantee Total Democracy
DOMINICAN REPUBLIC: Public Debt Jumped US$4BB to US$44.9B in 2019
J A M A I C A
JAMAICA: JSE Indices Declined in October-December Quarter
M E X I C O
SERVICIOS CORPORATIVOS JAVER : Fitch Affirms B+ LongTerm IDR
P U E R T O R I C O
ASCENA RETAIL: David Jaffe Quits as Director
EMPRESA LOCAL: Disclosure Statement Hearing Reset to April 29
- - - - -
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A R G E N T I N A
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ARGENTINA: Price Tussle, Coronavirus Hammer Beef Train to China
---------------------------------------------------------------
Maximilian Heath at Reuters reports that Argentine beef exports to
its top buyer China fell almost a third in January due to a price
dispute with Chinese importers and the effects of a coronavirus
outbreak, the head of the South American country's meat export
chamber.
Soaring demand from China last year saw sales of Argentine frozen
boneless beef double to 408,500 tonnes, worth around $2 billion,
official data show. China bought three-quarters of Argentine beef
exports, with buyers willing to pay a premium amid a shortage of
pork, according to Reuters.
"The market has totally changed," said Mario Ravettino, head of the
consortium of Argentine meat exporters, known by the initials ABC,
which represents meat-packing plants responsible for preparing
Argentina's famously succulent steaks for export, the report
notes.
He said sales in the first month of 2020 fell an estimated 30%
compared with a month earlier, as Chinese buyers looked to
renegotiate deals to lower prices and amid the negative effects of
the coronavirus outbreak on ports activity, the report relates.
The steep monthly fall is previously unreported, though the
coronavirus outbreak has more broadly disrupted China meat imports,
hitting global supply chains, the report discloses.
The estimated January figure -- calculated at just shy of 31,500
tonnes -- would be the lowest in nine months after sales ramped up
throughout last year, with December sales of 44,878 tons, the
report says. The month was however still up versus January 2019,
the report adds.
Ravettino said the Chinese government had at the end of last year
limited credit to Chinese firms for Argentine meat imports and
started buying beef from other countries with the aim of reducing
contract prices, which prompted cancellation of orders, the report
says.
"This situation means we have to renegotiate prices and
re-establish when that merchandise is going to arrive in China,"
said Ravettino. He explained that deals previously at up to $7,000
per ton were now happening at up to $4,300 per ton, the report
relays.
China's tougher position in price negotiations also impacted
Argentine farmers, the report notes.
Rancher Nicolas Lafontaine from Buenos Aires province said in the
last month prices have slipped, with buyers becoming more selective
over which animals they would buy, the report discloses.
"There was a frenzy in which those who bought animals for China
paid anything, without caring about quality. Now there is a
differentiation between canned beef of lower quality and
high-quality beef," Lafontaine said, the report adds.
Coronavirus Effect
Tyson Foods Inc and U.S. agricultural groups said earlier this
month that coronavirus is generally disrupting meat shipments to
China as the country faces a shortage due to an outbreak of a fatal
pig disease, Reuters notes.
The virus, which broke out in China late last year and has so far
caused the death of more than 2,200 people, presented serious
logistical difficulties in Chinese ports, Ravettino said,
aggravating the drop in shipments from Argentina, the report says.
"Chinese port workers are generally state employees. When there is
a quarantine, the ports are stuck overflowing with merchandise and
there is no way to get the containers in because the employees are
not going to work," he said, the report adds.
He added some cargoes of Argentine beef have been diverted to other
countries, including Singapore, and that some Argentine exporters
are looking to increase sales to Russia, the report discloses.
"While we know that China needs animal protein and that China
values and requires our product, we don't know how long this
problem will last," Ravettino added. "We don't know if it's going
to be two months, four months, or six months," he added.
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.
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B R A Z I L
===========
JBS SA: Expands Reach in China
------------------------------
Mongabay.com reports that JBS SA recently signed a deal that would
put its products in more than 60,000 shops and markets around
China.
On Jan. 27, JBS agreed to supply WH Group, a Hong Kong-based meat
processor with access to those retail outlets, with beef, pork and
poultry products worth around 3 billion reais (US$687 million) a
year beginning in 2020, according to Mongabay.com. The move
follows a deal in November between JBS and China-based Alibaba
worth $1.5 billion, Euromeat News reported, the report notes.
Demand for meat in China has risen, tracking the country's growing
incomes, Mongabay.com says.
"We have seen changes in the Chinese consumer profile regarding
protein consumption and a growing concern for food quality, product
traceability and enhanced food safety," said Renato Costa,
president of Friboi, JBS's beef division, according to the news
site just-food, the report relays.
A 2019 epidemic of African swine fever killed or forced the culling
of tens of millions of pigs in China, severely impacting domestic
supply in the world's biggest pork market, the report discloses.
JBS is the world's largest meatpacker, and Brazil exports more beef
than any other country, the report relays. But environmental and
watchdog NGOs say those superlatives have come at the cost of the
country's forests, the report says. Clearance for cattle pasture
in the Amazon causes most of the deforestation there, and soy
plantations to supply pig and chicken feed now blanket ever-growing
expanses of the Cerrado's wooded savannas, the report notes.
In mid-2019, researchers from the Monitoring of the Andean Amazon
Project, an initiative of the NGO Amazon Conservation, showed that
many of the summer fires in the Brazilian Amazon were likely set on
previously cleared lands to make way for cattle pastures, the
report relates.
Probes into the supply chains of JBS have turned up evidence that
its suppliers fatten their cattle on illegally deforested lands,
the report notes.
A September 2019 investigation by Reporter Brasil and Mongabay
revealed that the Brazilian government had sanctioned Jose Ronan
Martins da Cunha, a cattle supplier to JBS who operates in the
state of Para in the Amazon, for clearing forest in a conservation
area, the report notes. JBS also paid more than $8 million in
fines in 2017 for buying 50,000 cattle from ranches where the
Amazon forest once stood, according to the NGO Earthsight, the
report discloses.
The company denied the charges in both cases.
In this new deal with WH Group, JBS now has a retail partner that
has yet to make a zero-deforestation pledge, according to Chain
Reaction Research, a U.S.-based sustainability risk analysis group,
the report relays. The group also noted that WH Group, a meat
processor that sells its products under dozens of different brand
names, received a score of 0% for managing the forest risk in its
supply chains from the Global Canopy's Forest 500 program the
report notes. JBS scored 39%.
JBS did sign a zero-deforestation pledge in 2009. Though some
research has shown that the company changed its policies in the
wake of that decision, other investigations have revealed that
deforestation in its supply chains continues under its watch, the
report relates.
A report by a group of NGOs known as Trase connected JBS's beef
exports in 2017 to 240 square kilometers (93 square miles) of
"deforestation risk" -- that is, pastures in parts of Brazil that
are at high risk of deforestation. That's around a third of the
estimated deforestation driven by Brazil's cattle industry each
year, the report discloses.
To some, it's also evidence that JBS's zero-deforestation pledge
doesn't go far enough in rooting out the causes of forest
destruction in the complex networks involved in getting beef --
not to mention pork and chicken -- from ranches, farms and feedlots
to grocery stores and supermarkets, the report says.
"The problem is the commitment is only partially implemented and
limited in scope," Erasmus zu Ermgassen at Belgium's Catholic
University of Louvain, an agricultural researcher involved in the
Trase investigation, told New Scientist magazine, the report adds.
As reported in the Troubled Company Reporter-Latin America on Dec.
19, 2019, Moody's Investors Service upgraded JBS S.A.'s corporate
family rating to Ba2 from Ba3 and the senior unsecured ratings of
its wholly-owned subsidiaries JBS USA Lux S.A. and JBS Investments
II GmbH to Ba2 from Ba3. The rating of the secured term loan under
JBS USA Lux S.A. was upgraded to Ba1 from Ba2. The outlook for all
ratings is stable.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Firms Wants Pact to Guarantee Total Democracy
-----------------------------------------------------------------
Dominican Today reports that in the wake of the political crisis
sparked by the suspended municipal elections, the National Council
Enterprise (Conep) called on the political and social actors to
reach a sweeping national agreement that includes the necessary
commitments to guarantee total democracy.
It said faced with the events of last Sunday, the Conep set forth
to actively establish a permanent dialogue with the main political
actors and the authorities in search of balance and consensus,
according to Dominican Today.
"As representatives of a sector concerned with guaranteeing the
social, economic and political stability of our nation, we call on
the different political and social actors to play a responsible
role in order to build a better and more robust democracy. We call
for the signing of a great national agreement that includes the
necessary commitments to guarantee full democracy," the Conep said
in a statement obtained by the news agency.
"The business sector, as part of our society, reiterates its
commitment to the preservation and defense of democracy, freedom of
expression and the fundamental rights of all Dominicans," the
report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.
The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Standard & Poor's credit rating for Dominican Republic stands at
BB- with stable outlook (2015). Moody's credit rating for Dominican
Republic was last set at Ba3 with stable outlook (2017). Fitch's
credit rating for Dominican Republic was last reported at BB- with
stable outlook (2016).
DOMINICAN REPUBLIC: Public Debt Jumped US$4BB to US$44.9B in 2019
-----------------------------------------------------------------
Dominican Today reports that the consolidated public debt -- which
includes that of the non-financial sector and that of the Central
Bank -- jumped last year by over US$4.0 billion to US$44.9 billion
at yearend 2019.
The data recently published by the Finance Ministry's Public Credit
Department show that the current debt level is equivalent to 50.5%
of what the Dominican economy produces, according to Dominican
Today.
The heaviest burden of new debt was in the Non-Financial Public
Sector, that is, through the issuance of the sovereign bond, papers
in the local market and loans with multilaterals and other
countries, the report notes.
There, the debt totaled US$35.9 billion, of which US$2.5 billion
corresponded to intergovernmental debt, the report says. The level
of debt of the SPNF rose by 11.8% between 2018 and 2019, the report
adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.
The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Standard & Poor's credit rating for Dominican Republic stands at
BB- with stable outlook (2015). Moody's credit rating for Dominican
Republic was last set at Ba3 with stable outlook (2017). Fitch's
credit rating for Dominican Republic was last reported at BB- with
stable outlook (2016).
=============
J A M A I C A
=============
JAMAICA: JSE Indices Declined in October-December Quarter
---------------------------------------------------------
RJR News reports that newly released data from the Bank of Jamaica
show all the major Jamaica Stock Exchange (JSE) indices recorded
declines during the October to December quarter.
The JSE Main Index slipped by 1.2 per cent compared to growth of
10.3 per cent the previous quarter, according to RJR News.
According to the Central Bank, the negative performance of the
equities market may have been influenced by higher than expected
inflation for the review quarter even though interest rates
remained low, the report notes.
Notwithstanding, it said there was an oversubscription of initial
public offerings which reflected investors' preference for
alternative investment options given the reduced presence of the
Government in the domestic bond market, the report relays.
Returns from investments in both the equity and foreign currency
markets were negative for the three months, the report notes.
Equities and foreign currency investments yielded negative
quarterly returns of two per cent and 0.8 per cent, the report
says.
The Central Bank said the decline of the Main JSE Index for the
October to December quarter was also reflected in market activity
indicators, the report adds.
The value and volume of transactions decreased by 46.9 per cent and
63.8 per cent, respectively, the report relays.
The advance to decline ratio, was 22 to 16 compared to 25 to 9 in
the previous quarter, the report discloses.
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.
===========
M E X I C O
===========
SERVICIOS CORPORATIVOS JAVER : Fitch Affirms B+ LongTerm IDR
------------------------------------------------------------
Fitch Ratings affirmed Servicios Corporativos Javer, S.A.B. de
C.V.'s Long-Term Local and Foreign Currency Issuer Default Ratings
at 'B+'. The Rating Outlook is Stable. Javer's ratings are
supported by the company's solid business position as one of the
largest homebuilding companies in Mexico, ability to adjust its
sale strategy to market dynamics, improved debt amortization
schedule and FX exposure after the refinancing of its senior
notes.
Javer successfully refinanced its U.S. dollar denominated senior
notes in November 2019 with a syndicated credit. The new credit
includes quarterly amortizations starting May 2021 as opposed to
the bullet payment of the notes, which matured on April 2021. The
new credit improved Javer's FX exposure as the loan is mainly
Mexican peso denominated (87%). The remaining 13% is denominated in
U.S. dollars, but principal and interest payments have been hedged
using derivatives. Fitch's base case projections assume that the
amount of debt on the balance sheet will not increase during the
rating horizon. Net leverage ratios (net debt / EBITDA) have
remained below 3.0x since 2016 and are expected to remain below
3.0x during the rating horizon.
The company specializes in the construction of affordable
entry-level, middle-income and residential housing. Operations are
concentrated in the states of Nuevo Leon and Jalisco. Javer's
geographic footprint includes some of the Mexican states with the
highest income per capita and positive economic and population
growth trends. These factors have a positive correlation with the
number of available mortgages through the Infonavit system. A
material reduction in government subsidies to affordable entry
level housing and delays in obtaining licenses and permits impacted
Javer's sales volume during 2019; however, a slight increase in
average prices as sales mix shifted toward middle income and
residential housing helped mitigate some of the adverse effect.
Javer was able to maintain its market share as the leading national
provider of new homes sold through the Infonavit mortgage system.
KEY RATING DRIVERS
Completed Debt Refinancing: Javer's liquidity profile improved
after the completion of its debt refinancing last year. The company
reduced its exposure to the U.S. dollar and improved its debt
maturity profile after refinancing its senior notes in November
2019. Javer prepaid its USD159 million notes, originally due 2021,
with funds obtained from a syndicated loan. The syndicated credit
and guaranty agreement is denominated in both Mexican pesos (87%)
and U.S. dollars (13%). Javer hedged the dollar denominated
principal and interest payments with derivatives. The maturity
schedule of the new loan includes quarterly amortizations after an
18-month year grace period as opposed to the senior notes' bullet
payment.
In the midterm, the company's expected cash flow generation may not
be completely aligned with scheduled debt amortizations. This
evidences the need to enter into refinancing activities toward 2021
and 2022. Javer will need to secure different financing
alternatives prior to the execution of the latter.
Leverage Metrics Temporarily High: Net debt to EBITDA ratio of 3.0x
for year-end 2019 was weaker than Fitch's previous expectations.
Reduced sales volumes during a sluggish 2019 resulted in an EBITDA
generation 15% below that of the previous year. Fitch's base case
projections estimate that total revenues and EBITDA margins return
to around MXN8,250 million and 12%, respectively, in 2020. Javer's
margin improvements could be fueled by both management strategies
to reduce fixed costs and a sales mix shifting toward higher margin
segments. Fitch estimates the net debt to EBITDA ratio will
continue below 3.0x and strengthen toward 2.5x during the rating
horizon, as a result of improved EBITDA generation and debt
amortizations.
Expected Neutral FCF Generation: The company's FCF generation is
expected to remain neutral to slightly positive reflecting the
estimated level of interest payments, investments in land
replacements and moderate Capex. Javer's working capital management
will continue to be key for business and financial strengthening in
the coming years. FCF may also include dividend payments according
to the credit facility documentation; Fitch will continue to
monitor FCF generation compared to contractual debt obligations.
Leading Market Position: Javer is the leading homebuilding company
in Mexico based on the number of units sold through the Infonavit
system. The company sold 15,716 units during 2019, 89.3% of which
were through Infonavit mortgages to final clients and 2.6% sold
through Cofinavit. The company holds a leading position in its main
markets (states of Nuevo Leon, Jalisco, Estado de Mexico and
Aguascalientes). Javer has presence in some of the states with the
highest income per capita (Nuevo Leon, Jalisco and Queretaro) and
positive economic and population growth trends (Queretaro and
Estado de Mexico); these variables have a positive relation with
the number of available mortgages through the Infonavit system.
Javer remains the leader of new homes sold through the Infonavit
system, with 8.8% of the new housing units sold in Mexico during
2019.
Industry Dynamics: The Mexican homebuilding industry is cyclical,
affected by government regulations, demand and input costs. A
material reduction in government subsidies to affordable entry
level housing impacted Javer's sales volume during 2019. Demand
should remain relatively stable given demographic trends in
addition to steady unemployment rates and wages. The ability to
adjust to changing market conditions in a profitable manner is key
to maintain business profile.
DERIVATION SUMMARY
Javer's rating is supported by its market leadership and product
diversification in Mexico. The company continues to be a leader of
new homes sold through the Infonavit system in Mexico, representing
8.8% of the new homes sold nationwide as of Dec. 31, 2019. Javer's
operations are concentrated in seven states where the company holds
one of the largest market shares.
Homebuilding companies in the U.S., such as M/I Homes, Inc.
(BB-/Stable) and Meritage Homes Corporation (BB/Outlook Positive)
are larger in scale in terms of revenues and market
diversification. Compared with Javer, U.S. peers have weaker EBITDA
margins and net leverage metrics, similar interest coverage and
stronger FCF margins. Also, U.S. peers have access to a broader
range of sources of financing. The U.S. macroeconomic indicators
include lower interest rates and lower unemployment rates than the
Mexican market.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for Javer Include:
-- Volumes increase 5% during 2020; going forward average volume
growth is around 1.5%;
-- Average prices increase toward MXN500 thousand as sales mix
moves away from entry level houses;
-- EBITDA margin returns to levels of 12.3% as management
continues to focus on the reduction of fixed costs;
-- Moderate working capital requirements as Fitch estimates no
material investments in land inventory during the rating
horizon;
-- Positive FCF generation and no dividend payments allow the
company maintain a minimum cash balance of MXN350 million;
-- A portion of debt amortizations is paid and the remaining
is refinanced;
-- Net debt/EBITDA improves toward 2.5x by 2022 as the company
reaches its target debt of MXN2,500 million.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
-- Strong operational results, reaching revenue targets in the
near future, while improving EBITDA margin;
-- Continued positive FCF generation across the cycle and net
adjusted leverage (net debt/EBITDA) at or below 2.0x.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
-- Sustained EBITDA margin reductions below 12%;
-- Land investment levels substantially above current
expectations of investing to replace land reserves used;
-- Negative FCF for consecutive years driven by increasing
working capital needs;
-- Net debt/EBITDA above 3.0x.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity after Refinancing: Javer does not have material
debt amortizations until the end of the syndicated credit's
18-month grace period; Fitch's projections assume external sources
of financing are used to fund a portion of debt amortizations as
they come due. Mid-term scheduled payments for this credit include
amortizations of MXN329.4 million in 2021 and MXN521.6 million in
2022. Javer's liquidity is strengthened by its available credit
lines amounting to MXN316.1 million and its cash and equivalents
balance of MXN522.8 million as of Dec. 31, 2019.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch adjusts the fair value of balance sheet debt with
derivatives.
=====================
P U E R T O R I C O
=====================
ASCENA RETAIL: David Jaffe Quits as Director
--------------------------------------------
David Jaffe, a member of the Board of Directors of Ascena Retail
Group, Inc., notified the Board of his decision to resign from the
Board effective as of Feb. 24, 2020. Mr. Jaffe is a member of the
class of directors whose terms of office expire at the Company's
2020 Annual Meeting of Stockholders. Mr. Jaffe advised the Company
that he has no disagreement with the Company on any matter relating
to the Company's operations, policies or practices and the decision
was based solely on personal reasons.
Effective immediately, the Board has approved a reduction in the
size of the Board from 12 to 11 directors.
About Ascena Retail
Ascena Retail Group, Inc. (Nasdaq: ASNA) --
http://www.ascenaretail.com-- is a national specialty retailer
offering apparel, shoes, and accessories for women under the
Premium Fashion (Ann Taylor, LOFT, and Lou & Grey), Plus Fashion
(Lane Bryant, Catherines and Cacique), and Value Fashion
(Dressbarn) segments, and for tween girls under the Kids Fashion
segment (Justice). Ascena, through its retail brands, operates
ecommerce websites and approximately 2,800 stores throughout the
United States, Canada, and Puerto Rico.
Ascena Retail reported a net loss of $661.4 million for the fiscal
year ended Aug. 3, 2019, a net loss of $39.7 million for the year
ended Aug. 4, 2018, and a net loss of $1.06 billion for the year
ended July 29, 2017. As of Nov. 2, 2019, the Company had $3.49
billion in total assets, $3.32 billion in total liabilities, and
$173 million in total equity.
* * *
As reported by the TCR on Nov. 26, 2019, S&P Global Ratings lowered
its issuer credit rating on Mahwah, N.J.-based women's specialty
apparel retailer Ascena Retail Group Inc. to 'CCC' from 'CCC+' to
reflect the rating agency's belief that it is increasingly likely
the company will pursue a debt restructuring over the next 12
months.
In October 2019, Moody's Investors Service downgraded Ascena Retail
Group, Inc.'s corporate family rating to Caa2 from B3, probability
of default rating to Caa2-PD from B3-PD and senior secured term
loan rating to Caa2 from B3. The downgrades reflect Moody's view
that Ascena's capital structure is likely unsustainable as a result
of its weak operating performance, high leverage, and negative free
cash flow, creating an elevated risk of a debt restructuring
including a material debt repurchase at a significant discount.
EMPRESA LOCAL: Disclosure Statement Hearing Reset to April 29
-------------------------------------------------------------
The hearing on approval of the Disclosure Statement for debtor
Empresa Local Global, Inc. scheduled for April 1, 2020, will now be
held on April 29, 2020, at 9:30 a.m., at the United States
Bankruptcy Court, Jose V. Toledo Federal Building and U.S.
Courthouse, 300 Recinto Sur, Courtroom No. 1, Second floor, San
Juan, Puerto Rico.
Objections to the form and content of the Disclosure Statement
should be filed with the court and served upon parties in interest
at their address of record not less than 14 days prior to the
hearing.
A full-text copy of the order dated Feb. 6, 2020, is available at
https://tinyurl.com/s36hku6 from PacerMonitor at no charge.
About Empresa Local Global
Empresa Local Global, Inc., formerly known as Casas Mi Estillo, was
created in 1987 and was in the business of selling wooden
prefabricated houses in Puerto Rico.
Empresa Local Global filed for Chapter 11 bankruptcy protection
(Bankr. D.P.R. Case No. 14-06675) on Aug. 14, 2014. The case is
assigned to Judge Brian K. Tester. At the time of the filing, the
Debtor was estimated to have assets and liabilities of less than $1
million. The Debtor is represented by Charles A.
Cuprill-Hernandez, Esq., in San Juan, Puerto Rico.
*********
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
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Chapman, Editors.
Copyright 2020. All rights reserved. ISSN 1529-2746.
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