/raid1/www/Hosts/bankrupt/TCRLA_Public/200615.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, June 15, 2020, Vol. 21, No. 119
Headlines
A R G E N T I N A
VICENTIN SAIC: Gov't Consider Other Alternatives to Nationalization
B E R M U D A
TEEKAY TANKERS: Egan-Jones Lowers Senior Unsecured Ratings to B+
B R A Z I L
BRAZIL: Seeks Clarification of COVID-19 Data With Rising Curve
CCR SA: Moody's Rates New BRL700MM Debenture Due 2022 'Ba2'
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Drought Halts Export of 15,000 Tons of Cocoa
DOMINICAN REPUBLIC: Has One of Lowest Recession, World Bank Says
M E X I C O
LIBRE ABORDO: Files for Bankruptcy, Terminates Deal With Venezuela
P U E R T O R I C O
CARLOS H. ORTIZ: Selling Arecibo & Hatillo Properties for $600K
LA MERCED: OSP to Reply to Mortgage Property Sale Opposition
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Business Groups Questions 2.4% GDP Decline
- - - - -
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A R G E N T I N A
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VICENTIN SAIC: Gov't Consider Other Alternatives to Nationalization
-------------------------------------------------------------------
Jonathan Gilbert and Patrick Gillespie at Bloomberg News report
that days after shocking investors and farmers with a plan to
nationalize the nation's top soybean processor, Argentina is
opening the door to a less dramatic rescue strategy.
After meeting with President Alberto Fernandez, Vicentin SAIC said
the government is at least willing to consider other ideas to avoid
expropriation, according to Bloomberg News.
While the government still plans to take control of the bankrupt
firm, the fact that it's now open to alternatives is a breakthrough
for Vicentin, Bloomberg News notes. Nationalization announcement
has been slammed by the agriculture industry, businessmen and even
pot-banging protesters from Buenos Aires to Avellaneda, the town in
Santa Fe province where Vicentin is based, Bloomberg News says.
"The president has been very clear," Santa Fe Governor Omar
Perotti, who was at the meeting, told reporters, Bloomberg News
relays. "His objective is rescuing the company. He's in a process
where expropriation is one mechanism, but what's emerged from the
talks is that if better proposals are put forward, the president is
willing to listen," Bloomberg News discloses.
In a statement, Vicentin said the government would analyze other
types of public-private partnerships to save it from
nationalization, Bloomberg News relays. Fernandez said the
government isn't seeking to nationalize more businesses, but didn't
want to see Vicentin go into foreign hands, Bloomberg News notes.
"We're rescuing a business that if it went on like this, it would
cease to exist or fall into hands and capital that aren't
Argentine," Fernandez said on a visit to La Rioja province,
Bloomberg News notes.
Opposition leaders, farmers, economists and even a close former
ally of influential Vice President Cristina Fernandez de Kirchner
said nationalization would only complicate the country's critical
debt negotiations with private lenders, Bloomberg News says.
Because a court is overseeing Vicentin's bankruptcy, the executive
branch is also being criticized for encroaching in judicial matters
in a nation with a long history of such tensions, Bloomberg News
notes.
"There's no need to expropriate Vicentin," said Marcos Buscaglia,
an Argentine economist and co-founder of consulting firm Alberdi
Partners, Bloomberg News relates. "The nationalization could cost
the government dearly and derail debt-restructuring talks," he
added.
Bloomberg News discloses that Fernandez said the nationalization
Monday without notifying Vicentin executives beforehand.
A nationalization may curtail his recent surge in the polls,
boosted by Argentines who didn't vote for him in last year's
election, Bloomberg News relays. In March, he implemented one of
the strictest Covid-19 lockdowns in Latin America, earning praise
as neighboring Brazil became a hot spot of the pandemic, Bloomberg
News relates.
However, the Vicentin takeover is reviving unpopular memories of
the second term of now-deputy Kirchner's presidency, Bloomberg News
notes. After expropriating oil company YPF SA in 2012, the
following years saw her approval ratings slump and her party voted
out of office, Bloomberg News says.
Indeed, the plan to nationalize Vicentin is reigniting debate about
who really is in power in Argentina: President Fernandez or
Kirchner, Bloomberg News discloses.
A poll by Buenos Aires-based pollster Management & Fit shows 47% of
Argentines believe the decision was Kirchner's, with only 23%
saying Fernandez made the call on his own, Bloomberg News notes.
About 47% also disagreed with the expropriation; just 21% approved,
Bloomberg News relays.
"The government's biggest challenge is gaining the public's trust,"
said Mariel Fornoni, Management & Fit's director, Bloomberg News
notes. "The ability to start building trust has been fundamental
for Fernandez, and these types of things lose it," he added.
Bloomberg News discloses that Kirchner's second term, from 2011 to
2015, also saw contentious policies to reform Argentina's judiciary
in what critics labeled a move to amass power in the executive.
Now, the constitutionality of the Vicentin nationalization is being
questioned because a judge is already in charge of the company's
bankruptcy, Bloomberg News notes.
"We express the importance of respecting the division of
Argentina's republican powers," the country's grain exchanges said
in a statement obtained by the news agency.
Production Minister Matias Kulfas said in an interview that
provincial Judge Fabian Lorenzini's rulings will be respected,
Bloomberg News notes.
The planned takeover of Vicentin has realized the farm industry's
worst fears under Fernandez: state meddling in its business and the
potential to unbalance grain markets, Bloomberg News says.
"State intervention implies the risk of distorting equilibrium
prices," Argentina's main crop associations said in a statement
obtained by the news agency. "State-run companies have different
priorities to private companies; they don't necessarily need to be
profitable," it added.
That sort of negative reaction may be scaring Fernandez, who's well
aware of the risks of fueling a feud with the country's farmers,
Bloomberg News relays.
Back in 2008, when Kirchner was in charge and Fernandez was her
chief of staff, a move to hike export taxes during a commodities
boom turned into a political crisis after farmers across the
country protested and blocked roads, Bloomberg News relays.
Kirchner eventually lost a vote in congress and Fernandez resigned,
staying out of public office for more than a decade until he became
president in December, Bloomberg News notes.
Vicentin defaulted on debt at around the same time after
over-stretching itself with credit to farmers, Bloomberg News
relays. Ironically, it was the figure of Fernandez who
precipitated the firm's downfall, Bloomberg News notes. After it
became clear he'd become president and probably raise export taxes,
farmers rushed to tie in contracts, Bloomberg News relays.
It felt, some said, like a bank run. And in the end, it led
Vicentin, the 91-year-old firm specializing in exporting soy meal
and oil, to file for bankruptcy, saying it couldn't meet a $350
million payment owed to suppliers and that it'd seek to restructure
about $1 billion in debt, Bloomberg News notes.
Judge Lorenzini said in March, the company's defaulted obligations
totaled 99.3 billion pesos ($1.4 billion), Bloomberg News adds.
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B E R M U D A
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TEEKAY TANKERS: Egan-Jones Lowers Senior Unsecured Ratings to B+
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 5, 2020, downgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Teekay Tankers Ltd to B+ from B.
Headquartered in Hamilton, Bermuda, Teekay Tankers Ltd. provides
oil transportation services through a fleet of mid-size tankers,
including Suezmax and Aframax crude oil tankers and Long Range 2
product tankers.
===========
B R A Z I L
===========
BRAZIL: Seeks Clarification of COVID-19 Data With Rising Curve
--------------------------------------------------------------
EFE News reports that the Brazilian government attempted to cut
through the confusion and lack of confidence created by its new
method of releasing data on Covid-19, which has killed almost
38,000 people in the South American giant amid the ongoing
government efforts to downplay the seriousness of the pandemic.
"Our government is one of transparency, we're not afraid of the
truth," said President Jair Bolsonaro during a meeting with cabinet
ministers broadcast live and at which the participants discussed
the controversies that have arisen in recent days regarding the
changes in the way his administration is reporting confirmed
coronavirus cases and deaths, the current figures for which stand
at 707,000 and 37,100, respectively, according to EFE News.
The change surprised Brazilians over the weekend and the daily
bulletins went from reporting the totals in both categories to only
divulging the daily totals, excluding altogether the macro figures,
which huge political sectors feel is an attempt to hide or cover up
the true situation, EFE News relays.
Health Minister Eduardo Pazuello, an army general who is serving in
an interim capacity in the health post after his two predecessors
left the position over the past two months, tried to explain the
changes and the lack of consolidated figures both at the meeting
and in an appearance before a parliamentary committee, the report
notes.
Although he admitted to the change in the tallying methodology,
Pazuello said that this was intended to provide figures as of the
true date of death and not the date on which Covid-19 was confirmed
to be the cause of the person's demise, as earlier had been the
case, the report discloses.
In this way, the minister said, the "real data" would be presented
and would not be added to the deaths from days that had occurred
previously but were only being reported as due to Covid-19 on the
reporting date, the report notes.
In the face of general criticism from lawmakers at the committee
hearing, Pazuello tried to justify the new model, saying that it
will be "more effective for the (health) managers," but he added
that the figures also will be provided according to the previous
format to give "the greatest possible transparency," the report
relays.
Pazuello did not mention it, but move to once again release the
data in the same way that had been the case up until the end of
last week was also the result of a judicial ruling, which came in
the form of a cautionary decision by Supreme Court Magistrate
Alexandre de Moraes, the report notes.
According to that decision, rendered, each day the government must
divulge the total figures to date in the pandemic, as was the
method used in the past, the report discloses.
The cautionary ruling came in response to a move by three
opposition parties and stated that the public release of all
relevant data is "indispensible within the public administration,"
both from the constitutional point of view and also due to the
"seriousness of the (health) emergency," the report says.
High Court Chief Justice Jose Antonio Dias Toffoli had added his
voice to the growing public unease over the new data presentation
method in a harsh pronouncement during a meeting of the Association
of Magistrates, the report relates.
In a direct reference to Bolsonaro, Dias Toffoli said that the
government "cannot (engage in) any further doubtful attitudes" that
"shock and frighten Brazilian society" and "the international
community" and must act with "peace, prudence and unity in the
fight against Covid-19," the report discloses.
Amid the controversy stirred up by the data reporting method, local
and municipal governments continue to move forward with their plans
to resume economic activities, these moves being very much
supported by Bolsonaro over the past couple of months, although the
peak in the infection and fatality curves still appears to be far
away, those curves still being sharply on the rise all over the
country, the report relays.
One of the regions that is moving toward reopening its economy is
Sao Paulo state, Brazil's heavily populated economic and financial
engine and also the state hardest hit by the pandemic, the report
notes.
Sao Paulo city, the state capital, announced that starting on June
10, it will allow street vendors to resume their activities and on
June 11, shopping centers will be able to reopen with curtailed
schedules, provided that they adhere to rigorous protection and
prevention measures to avoid new infections, the report says.
Even so, Sao Paulo Mayor Bruno Covas has admitted that the
authorities so far have been unable to limit the number of
passengers who board local buses, which for days have been
circulating around the city completely full despite the health risk
for riders and drivers that this implies, the report adds.
As reported in the Troubled Company Reporter-Latin America on May
8, 2020, Fitch Ratings has affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-' and has revised the Rating
Outlook to Negative. The Outlook revision to Negative reflects the
deterioration of Brazil's economic and fiscal outlook, and downside
risks to both given renewed political uncertainty, including
tensions between the executive and congress, and uncertainty over
the duration and intensity of the coronavirus pandemic.
On April 10, 2020, the TCR-LA reported that S&P Global Ratings
revised on April 6, 2020, its outlook on its long-term ratings on
Brazil to stable from positive. At the same time, S&P affirmed its
'BB-/B' long- and short-term foreign and local currency sovereign
credit ratings. S&P also affirmed its 'brAAA' national scale rating
and its transfer and convertibility assessment of 'BB+'. The
outlook on the national scale rating remains stable.
CCR SA: Moody's Rates New BRL700MM Debenture Due 2022 'Ba2'
-----------------------------------------------------------
Moody's America Latina Ltda. assigned Ba2/Aa2.br (respectively, in
global and Brazil's national scale) to CCR S.A.'s new debenture
issuance of BRL700 million (13th issuance) due in 2022. The outlook
is stable.
CCR issued its 13th debentures, senior unsecured non-convertible in
one series totaling BRL700 million. The proceeds will be used to
strengthen cash liquidity. The 13th debentures will have a 2-year
tenor from the issuance date, with principal paid at maturity while
interest is paid semi-annually starting in November 2020. The
debentures have cross default provisions with other outstanding
debt from the company among other acceleration clauses such as
change in control, bankruptcy and a financial covenant of Net debt
to EBITDA below or equal to 4.5x measured annually in December.
RATINGS RATIONALE
The debenture's ratings reflect its view of CCR's strong credit
quality which is constrained by the sovereign rating. Nonetheless,
as a holding company, CCR largely depends on the regular dividends
up-streamed by its operating subsidiaries to meet its obligations,
equity investment commitments and potential cash requirements
related to its guarantees. Therefore, the debenture's ratings are
supported by the relative low indebtedness at the holding compared
to its operations combined with a strong coverage of cash available
to service the debt as well as the somewhat diversified portfolio
located in the most developed economic regions of the country. The
ratings also reflect the overall mature nature of its concessions,
with a solid track record that supports relatively stable and
predictable cash flows.
Moody's sees negative pressure in volumes for the next 12-18 months
due to the COVID-19 outbreak and its effects in activity as the
Brazilian economy goes into recession. There is significant
downside risk to its revised forecast if lockdowns are prolonged,
which would further limit traffic and passenger volumes. Other
factors related to the economic downturn that could also pressure
performance include rising unemployment and the failure of
government measures to boost consumer confidence. Nonetheless,
Moody's considers CCR's cash generation and liquidity cushion are
so far adequate under this downturn scenario, and that management
could retain dividends as an additional source of liquidity if
needed as also maintain sound and timely access to the debt markets
in order to meet its refinancing needs in the next 12-18 months.
The stable outlook takes into consideration the company will
prudently manage its leverage in line with the current credit
quality and maintain discipline in its financial policy. This
outlook relates to Moody's expectation that CCR's credit metrics
will remain strong with adequate liquidity to support investment
requirements and debt service. The leniency agreements performed by
the company reduce but do not eliminate potential future
investigations that while unexpected, could have material adverse
consequences for the company's credit profile. Also, the outlook
does not incorporate any concession life reduction from the ongoing
regulatory disputes on contract amendments from 2006 for some of
its main concessionaires.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The assigned ratings are constrained by Brazil's current sovereign
rating. The ratings could be upgraded in the national scale if CCR
demonstrates sustained better-than-expected operational
performance. Also, lower indebtedness at the holding level and
higher cash coverage could add positive pressure to the debenture's
national scale rating.
On the other hand, a deterioration in the sovereign's credit
quality could exert downward pressure on CCR's ratings. Reduced
flexibility in the holding's ability to upstream cash from its
operating subsidiaries could also result in negative pressure on
CCR's senior unsecured debt ratings if combined with increasing
proportion of debt at the holding level compared to the
consolidated such that it is above 15% or cash availability to
service the holding's debt declines significantly on a sustained
basis.
In addition, the ratings could be downgraded if traffic/passenger
performance remains below its expectations or if Moody's perceives
higher liquidity risk combined with more restrictive access to the
debt markets. Materially higher leverage driven by new investments
and acquisitions or significantly higher capital spending plan
could also weigh on the ratings. A deterioration in the concession
and regulatory framework or political interference in the normal
course of business could also exert downward pressure as well as
negative outcome of the ongoing judicial dispute with ARTESP.
Downward pressure could arise from a significant and sustained
downturn in the company's consolidated credit metrics, such that:
-- funds from operations/debt falls below 12% (20.7% as of LTM
March 2019)
-- DSCR ratio stays below 1.3x (1.8x as of LTM March 2019) for an
extended period.
Headquartered in Sao Paulo, Brazil, CCR is the holding company of
one of Brazil's largest infrastructure concession groups managing
and operating a toll road network of 3,735 km through eleven
different concessionaires with maturities ranging from 2021 up to
2048. CCR also participates in other urban mobility, airport
concessions and infrastructure services in the Americas. CCR is
controlled by a consortium formed by Andrade Group, Camargo Correa
Group and Soares Penido Group Concessoes with a combined
participation of 44.8%; the remaining 55.2% of shares are free
float. According to Moody's standard adjustments, in the last
twelve months ended March 2020 the company generated BRL9.7 billion
in net revenues (excluding construction revenues) and EBITDA of
BRL6 billion, resulting in Net Debt to EBITDA of 3.3x and FFO to
Debt of 20.7%, respectively.
The principal methodology used in these ratings was Privately
Managed Toll Roads published in October 2017.
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Drought Halts Export of 15,000 Tons of Cocoa
----------------------------------------------------------------
Dominican Today reports that in the last four years, the cocoa
sector in the Dominican Republic has been impacted by drought,
halting the export of nearly 15,000 tons to international markets.
"Cocoa production in the Dominican Republic has had problems with
the climate in recent years," said Isidoro De la Rosa, executive
director of the Confederation. National Cocoa Producers
(Conacado).
"As the production is in a natural environment without irrigation,
the drought that we have had in the last four years has
considerably affected production, which has prevented the volume
from growing year by year," according to Dominican Today.
De la Rosa told Diario Libre that this year, a record production
was estimated, but the drought reduced it by around 20%, which
means, in monetary terms, about 15,000 tons that were no longer
exported, the report notes.
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 negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).
DOMINICAN REPUBLIC: Has One of Lowest Recession, World Bank Says
----------------------------------------------------------------
Dominican Today reports that economic conditions have deteriorated
"dramatically" in Latin America and the Caribbean due to the
coronavirus pandemic, and the region will experience a 7.2%
contraction this year, the most pronounced in the last six decades,
the bank anticipated. World.
Of all the regions of the world, Latin America is the one that will
have a more significant reduction in economic activity. The
recession is the biggest since the agency began recording
statistics 60 years ago, and is even more profound than the 2.5%
recorded during the 1983 debt crisis and the 1.8% recorded during
the financial crisis, from 2009.
"The risks to the outlook for the region are firmly weighted
downwards," warned the international credit organization.
"Coronavirus outbreaks in the region's large economies could have
spillover effects, and a second wave of the pandemic in advanced
economies could adversely affect the region," he said in his June
outlook report.
The most affected countries will be Peru, with an economic
contraction of 12%; Brazil, 8%; Mexico, 7.5%; Ecuador, 7.4%; and
Argentina, 7.3%, according to the World Bank's Global Economic
Outlook report.
Among the least affected would be the Dominican Republic, with a
recession of 0.8%, Panama of 2%, and Paraguay of 2.8%.
Central America, meanwhile, would have a 3.6% drop in its economic
activity and the Caribbean 1.8%. Globally, the World Bank estimates
that there will be a recession of 5.2% this year.
"The prospects give a lot to think about, as the crisis is likely
to leave scars that are difficult to erase and pose complex global
challenges," said Ceyla Pazarbasioglu, vice president of Equitable
Growth, Finance and Institutions at the World Bank Group.
The bank predicts that due to the effects of the coronavirus, the
economy of Europe and Central Asia will collapse 4.7% this year,
that of the Middle East and North Africa 4.2%, that of Africa south
of the Sahara a 2.8%; and that of South Asia 2.7%.
For economic activity in East Asia and the Pacific, meanwhile, it
projects growth of just 0.5%.
Prospects assume that economic activity in Latin America will have
its most profound drop in the second quarter of the year when
mitigation measures are implemented at their highest level.
Under this scenario, a normalization of the conditions in each
country and internationally would help the region achieve economic
growth of 2.8% in 2021, according to the World Bank.
According to these assumptions, Peru would grow 7% in 2021, Ecuador
4.1%, Mexico 3%, Brazil 2.2%, and Argentina 2.1%. The institution
explained that the steep drop in raw material prices had hit much
of Latin America, especially oil and gas producing countries,
hard.
Financial conditions, in turn, have deteriorated, and the deep
economic recession in the United States and China has affected
supply chains in Mexico and Brazil and caused a sharp reduction in
exports from countries that export raw materials such as Chile and
Peru.
The U.S. economic contraction, in turn, is negatively affecting
trade and remittances in Central America, while the paralysis of
tourism has also had adverse effects, especially in Mexico and
Central America, which depend heavily on it. The United States
would have an economic collapse of 6.1% in 2020.
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 negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).
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M E X I C O
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LIBRE ABORDO: Files for Bankruptcy, Terminates Deal With Venezuela
------------------------------------------------------------------
Ana Isabel Martinez at Reuters report that Mexico-based company
Libre Abordo said it was bankrupt and that Venezuelan President
Nicolas Maduro had terminated an oil-for-food agreement that had
allowed the firm to supply water trucks in exchange for millions of
barrels of Venezuelan crude.
Libre Abordo and its related firm Schlager Business Group threw a
lifeline to Maduro late last year by trading Venezuelan crude and
fuel under the oil-for-food pact, following the imposition of U.S.
sanctions on Venezuela's PDVSA in early 2019, according to
documents from the state-run oil firm, according to Reuters.
The Mexican companies said in a statement they were targets of an
international political campaign, driven by the U.S. government,
which had led to a loss of over $90 million and the suspension of
Venezuelan crude lifting, the report relays.
"In recent months, (we) have faced excessive challenges, from the
oil price fall . . . to pressure from the U.S. government aimed at
stopping our operations," they said, the report notes.
The U.S. State and Treasury Departments, helped by the FBI, have
been investigating the Mexican companies to find out if they
contravened sanctions imposed on PDVSA and the Venezuelan
government, sources have told Reuters.
The two U.S. government departments did not immediately respond to
a request for comment.
Maduro said that U.S. pressure had "knocked down" the oil-for-food
agreements with Mexican companies, without elaborating, ther eport
notes.
The firms have defended the agreement they signed with Venezuela's
Corporation of Foreign Trade (Corpovex) by saying Corpovex had not
been included in the U.S. list of sanctioned entities, the report
discloses.
Lawyers hired by the firms also said the swap was permitted under
licenses allowing supply of food and other equipment to Venezuela
under humanitarian exceptions, the companies said, the report
relays.
"The company for years has had the intention of supporting people
in need, regardless of political ideologies," Libre Abordo said in
its statement, the report notes. "As part of the bankruptcy,
hundreds of direct jobs will be lost," he added.
Venezuela's Foreign Minister Jorge Arreaza said on Twitter that by
pressing the Mexican firm, Washington is violating human rights and
freedom of trade in Venezuela, the report discloses. "This is
proof of the perverse and illegal character of the U.S. sanctions
regime, showing that they lie when saying there are exceptions for
humanitarian reasons," he added.
=====================
P U E R T O R I C O
=====================
CARLOS H. ORTIZ: Selling Arecibo & Hatillo Properties for $600K
---------------------------------------------------------------
Carlos H. Ortiz Colon, his wife, Maribel Rodriguez, and Vaqueria
Ortiz Rodriguez, Inc., and their secured creditor, Condado 4, LLC,
ask the U.S. Bankruptcy Court for the District of Puerto Rico to
authorize the sale of the following properties to Condado 4:
A. Property of 197.7383 cuerdas located at Sabana Hoyos Ward,
Rd. PR-628, km. 3.0 in Arecibo, PR, 00612. Lot Numbered
31,882, registered at Page 80, Book 709 of Arecibo, PR,
Section 1 of Arecibo. The property is disclosed at Docket
No. 1 of Case No. 19-01384, page 16, Section 1.3 and valued
at $300,000. The purchase price is $450,000.
B. 3-bedroom and 2-bathroom house located at 155 Dr. Susoni
Street, Hatillo, PR 00659. Lot Numbered 2,487, registered at
Page 204, Book 96 of Hatillo, PR, Section II of Arecibo.
The property is disclosed at Docket No. 1 of Case No.
19-01384, page 17, Section 1.4 and valued at $145,000.
The purchase price is $150,000.
Vaqueria Ortiz operates a dairy farm with 93,010 liters of Milk
Quota pursuant to license 3111 issued by the Office of the Dairy
Industry Regulation of Puerto Rico. It owns the Milk Quota and
license 3111 and the Individual Debtors own the dairy farm (land of
90 cuerdas). The Debtors continue with the regular operations of
the Dairy Farm.
On Schedule A/B of Bankruptcy Case No 19-01384-ESL, the Individual
Debtors listed Properties A and B, that are not used in the Dairy
Farm operations.
Property A is a vacant lot of land of 197.7383 cuerdas located in
Sabana Hoyos Ward in Arecibo PR and it is not used for the dairy
farm operation. Property B is a residential property that is not
the principal place of residence of the Individual Debtors. Neither
property is needed for the Debtors' reorganization. These
Properties serve as collateral for creditor Condado 4 which is the
largest secured creditor in the captioned cases -- Proof of Claim
No. 10 in the secured amount of $3,665,051.
The Properties have no equity and they do not produce any income
for the Bankruptcy Estate. Therefore, the Individual Debtors ask
the Court to approve the transfer of the Property free and clear of
liens to Condado 4. The transfer of the Properties to Condado
4will result in the credit of a significant amount to the biggest
claim in the case, which will further benefit all creditors in the
case as it will facilitate confirmation in the case.
The Parties submit the following terms of the sale:
a. Purchaser or Transferee: Condado 4, LLC or its designee
b. Total Consideration: Property A - $450,000; and
Property B - $150,000
c. Closing Date: Within 30 days after the Court's approval
of the sale or on such other date and time as may be
agreed by the Individual Debtors and Condado 4.
d. Credit Bid: Condado 4 will credit bid the amount of
$600,000 for Proof of Claim No. 10. Thus, such Proof
of Claim will be reduced in the amount of $600,000.
The amount will be credited to interest and then
principal.
All closing costs associated with the transaction will be paid by
Condado.
Carlos H. Ortiz Colin and Maribel Rodriguez Rios (Bankr. D.P.R.
Case No. 19-01384-ESL11) and Vaqueria Ortiz Rodriguez, Inc. (Bankr.
D.P.R. Case No. 19-01386-ESL11) sought Chapter 11
protection on March 14, 2019. The cases are administratively
consolidated under Case No. 19-01384. Homel Mercado Justiniano,
Esq. represent the Debtors.
LA MERCED: OSP to Reply to Mortgage Property Sale Opposition
------------------------------------------------------------
Judge Enrique S. Lamoutte of the U.S. Bankruptcy Court for the
District of Puerto Rico ordered OSP Consortium, LLC, the assignee
of Condado 5, LLC, a secured creditor of La Merced Limited
Partnership SE, to state its position within 14 days as to the
Debtor's opposition for the sale of the Mortgage Property for
$4,059,354, cash, subject to overbid, filed on June 4, 2020.
The Mortgaged Property is described in the Registry of Property in
the Spanish language as follows:
-- URBANA: Predio de terreno radicado en la URBANIZACION ELEONOR
ROOSEVELT, radicada en el Barrio Hato Rey del tormino
municipal de Rio Piedras, hoy San Juan, Puerto Rico, con una
cabida de TRES MIL TRESCIENTOS CATORCE PUNTO VEINTICINCO
(3,314.25) metros cuadrados. En lindes por el NORTE, en
ciento veintinueve (129) pies nueve (9) pulgadas con la
Avenida A; por el SUR, en igual medida con terrenos de la
Asociacion de Miembros de la Policia Insular; por el ESTE,
en doscientos setenta y cinco (275) pies ocho y tres cuartos
(8 3/4) pulgadas, con la Calle "T"; y por el OESTE, en
igual medida con la Calle "H".
-- Enclava en dicho terreno un edificio todo de concreto,
de dos (2) plantas, dedicado a una escuela privada.
-- Finca numero trece mil cuatrocientos cincuenta y tres
(13,453), inscrita alfolio cuatro (4) del tomo mil
cuatrocientos sesenta y seis (1466) de Rio Piedras Norte,
en el Registro de la Propiedad de Puerto Rico, Segunda
Seccion de San Juan.
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.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
TRINIDAD & TOBAGO: Business Groups Questions 2.4% GDP Decline
-------------------------------------------------------------
Trinidad Express reports that the Trinidad and Tobago Chamber of
Industry and Commerce said that Finance Minister Colm Imbert's
projection for the performance of the T&T economy in 2020 does not
appear to be aligned to current realities.
The T&T Chamber was one of four business groups commenting on
Imbert's mid-year budget review, according to Trinidad Express.
The T&T Chamber said, in a statement: "We believe that the
projected decline of 2.4 per cent of GDP for 2020 does not appear
to be aligned with the realities of the fall in energy prices and
reduced domestic economic activity, now compounded by Covid-19
measures," the report notes.
"The outlook to rebound to 4.7 per cent economic growth levels in
2021 is aggressive in comparison to historical low growth trends,
projected energy prices, sluggish global demand, along with
containment measures that may have to remain in place until a
vaccine is found for Covid-19," the report relays.
Settle Arrears
The business group noted that while it acknowledges the minister's
progress with regards to the payment of VAT refunds, it is urging
the minister to settle the arrears to Government suppliers, which
he committed to in a media release on March 18, 2020, the report
notes.
The T&T Chamber pointed out that with the developments in the
international commodity market since the delivery of the 2020
budget, it is necessary to look again at the oil and natural gas
bases for the 2021 budget, the report discloses.
"Based on the uncertain demand for fuel in the coming months, even
US$45 per barrel may be optimistic. Given the collapse of current
prices for LNG, ammonia and methanol, the reduction of the budgeted
gas price to US$2.90 per MMbtu from $3.00 may not be conservative,
enough especially given the importance of natural gas to our
economy," the report relays.
Meanwhile, in a statement, the American Chamber of Commerce of
Trinidad and Tobago (AMCHAM T&T) said it is concerned that the
Government is misdiagnosing the current situation, the report
notes.
"The contraction this year is likely to be much larger than the 2.4
per cent contraction predicted by the Minister of Finance, the
report discloses.
Significant Losses
"In that context, growth of 4.7 per cent in 2021 also seems
optimistic. We say this considering that natural gas production
over the first six months of 2020 is slightly lower than the
comparable period in 2019 while gas prices are significantly
lower," the Minister of Finance added
In addition, AMCHAM T&T said the closure and idling of several
plants at the Point Lisas Industrial Estate and the significantly
depressed petrochemical prices combined with the significant losses
since March are going to have an extremely significant negative
impact on GDP, the report notes.
"In this context, we are extremely concerned about the continuing
inability to take decisions about the natural gas value chain that
will give long-term confidence to the sector at the various points
on the value chain," the report discloses.
The business group noted that while the Minister spoke about how
many people received support but operate outside of the formal
system, he did not identify how these people will be brought into
the system, the report relays.
"We have been urging the Government to use this opportunity to
ensure that such people are registered with the BIR and NIB from
this point onward and sincerely hope they will do so, the report
notes.
"We therefore eagerly await the presentations of individual
Ministers and the final Roadmap to Recovery Committee report," the
report discloses.
Arima Business Association President Reval Chattergoon told the
Express that in the minister's presentation, there was little
stimulation for the small and medium enterprises (SMEs) who are
financially struggling, the report relays. He said businessmen are
yet to receive the Government guaranteed soft loan program in an
amount of $300 million, the report says.
"Businesses would feel the effects of Covid-19 until next year and
that is why more needs to be done for the SMEs so that they will
not close down and as I said, deferral of loans is not the answer
because that would put the business in more financial crisis,"
Chattergoon said, the report notes.
Disappointed
He said the Arima association was expecting an election mid-year
review full of "election goodies" despite the pandemic, the report
notes.
Also speaking on the issue was Couva/Point Lisas Chamber head
Ramchand Rajbal Maraj who said he too was disappointed by the
finance minister's presentation as it was just a rehash of what he
has been saying for the past three months, the report says.
"What was alarming is that my membership, along with other
businessmen, have been saying they have not received any of the
soft loans put in place for the SMEs that Imbert said is available
and people who have been retrenched due to the pandemic are yet to
receive the salary relief grant," he added.
Maraj said the Government must plan out how the economy will remain
sustainable after Covid-19, the report relays.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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