/raid1/www/Hosts/bankrupt/TCRLA_Public/200812.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
Wednesday, August 12, 2020, Vol. 21, No. 161
Headlines
A R G E N T I N A
ARGENTINA: IDB OKs $20MM Loan for Strategic Gov't. Programs
B R A Z I L
OI SA: No Preferential Treatment for BRL11BB Debt to Anatel
C A Y M A N I S L A N D S
NOBLE CORPORATION: Case Summary & 50 Largest Unsecured Creditors
NOBLE CORPORATION: Files Chapter 11 to Facilitate Restructuring
C H I L E
LATAM AIRLINES: Committee Taps Klestadt Winters as Conflict Counsel
LATAM AIRLINES: To Fire 'at least' 2,700 Workers in Brazil
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Bavaro Airport Faces Complaint, Red Tape
DOMINICAN REPUBLIC: Storm Leaves 300,000 Homes Without Power
M E X I C O
GRUPO AEROMEXICO: Readying Financing Plan
GRUPO AEROMEXICO: To Review Fleet Obligations
GRUPO FAMSA: Chapter 15 Case Summary
GRUPO FAMSA: Orrick, Herrington Represents Bondholder Group
GRUPO FAMSA: Targets August Emergence From Chapter 11
P A N A M A
COPA AIRLINES: No Income in April-June, Sees 98% Drop in Revenue
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Covid-19 Cost Rises to $4 Billion
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: IDB OKs $20MM Loan for Strategic Gov't. Programs
-----------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a $20
million loan from the reorientation of its portfolio resources with
Argentina to enhance the effectiveness, coordination and management
of Strategic Government Programs, while focusing on response and
recovery from the crisis triggered by the COVID-19 pandemic.
The operation is part of a $1.8 billion support program that the
IDB has earmarked for Argentina this year.
The program will help organize and more efficiently execute
policies and programs that support government priorities for crisis
management and preparing for economic recovery in response to the
impacts of COVID-19. In addition, it will improve the management
and performance of priority government policies with a direct
impact on the services provided to citizens.
In this sense, it will focus on the quality of planning,
monitoring, decision-making and evaluation of strategic government
programs, and will contribute to strengthening innovation
capacities and promoting innovative practices on public policies in
public administration, with the participation of the private sector
and civil society.
Among its components, the operation will strengthen the functions
of the Government Center within the scope of the Secretariat for
Strategic Affairs. It also includes the generation of a training
plan and change management strategies to be used by the different
entities responsible for implementing the defined government
priorities, as well as quick assessments and strategies that
support project implementation and its compliance.
Additionally, the creation of a Multisectoral Government Innovation
Council and the implementation of a program of government
innovators will be supported, which will be made available to State
agencies to support the development of projects.
With respect to innovations in the private sector and civil
society, the program will finance the implementation of an
innovation laboratory to improve responses to government
priorities, as an agile connection mechanism between all parts of
the innovative ecosystem that can contribute and take advantage of
scientific, technological and social solutions that are scalable
and sustainable.
The IDB loan of $20 million has an amortization period that ends on
February 15, 2042, a grace period through August 15, 2025, and an
interest rate based on LIBOR.
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.
As reported by the Troubled Company Reporter - Latin America on
April 14, 2020, Fitch Ratings upgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating to 'CC' from 'RD' and
Short-Term Foreign Currency IDR to 'C' from 'RD'.
The TCR-LA reported on April 13, 2020, that S&P Global Ratings
also lowered its long- and short-term foreign currency sovereign
credit ratings on Argentina to 'SD/SD' from 'CCC-/C'. S&P also
affirmed the local currency sovereign credit ratings at 'SD/SD'.
There is no outlook on 'SD' ratings.
On July 30, 2020, S&P Global Ratings lowered its issue
ratings on two of Argentina's foreign currency-denominated bonds,
BIRADs due January 2022 and January 2027, to 'D' from 'CC'.
Other similar bonds S&P already lowered to 'D' include the
BIRADs due 2021, 2026, January 2028, July 2028, 2036, 2046,
2048, and 2117, as well as a New York-law U.S. dollar-denominated
discount bond due December 2033 and an English-law
euro-denominated discount bond due December 2033.
On April 9, the TCR-LA reported that Moody's Investors Service
downgraded the Government of Argentina's foreign-currency and
local-currency long-term issuer and senior unsecured ratings to Ca
from Caa2.
===========
B R A Z I L
===========
OI SA: No Preferential Treatment for BRL11BB Debt to Anatel
------------------------------------------------------------
Ricardo Brito and Anthony Boadle at Reuters report that a Brazilian
high court ruled that the BRL11 billion ($2 billion) debt owed by
bankrupt telecom Grupo Oi SA to Brazil's telecommunications
regulator Anatel will not get preferential treatment in
restructuring negotiations.
The Superior Court of Justice, known as STJ, Brazil's
second-highest court, ruled that the debt was administrative and
could not be given priority treatment, according to Reuters.
Brazil's biggest fixed-line telecommunications operator filed for
bankruptcy protection in June 2016. Oi had about 65 billion reais
of debt at the time, the report notes.
Oi's in-court reorganization, which remains Brazil's largest
bankruptcy protection case to date, has been marked by disputes
between creditors and shareholders over the fate of Brazil's No. 4
wireless carrier, the report relays.
Oi confirmed that it has received a new BRL16.5 billion ($3.2
billion) bid for its mobile assets from its three telecom rivals,
Tim Participacoes, Telefonica Brasil and America Movil's Claro, the
report adds.
About Oi SA
Headquartered in Rio de Janeiro, and operating almost exclusively
within Brazil, the Oi Group provides services like fixed-line data
transmission and network usage for phones, internet, and cable,
Wi-Fi hot-spots in public areas, and mobile phone and data
services, and employs approximately 142,000 direct and indirect
employees.
On June 20, 2016, pursuant to Brazilian Law No. 11.101/05 (the
'Brazilian Bankruptcy Law'), Oi S.A. and certain of its
subsidiaries filed for recuperao judicial (judicial
reorganization) in Brazil.
On June 21, 2016, OI SA and its affiliates Telemar Norte Leste
S.A. and Oi Brasil Holdings Cooperatief U.A. commenced Chapter 15
proceedings (Bankr. S.D.N.Y. Lead Case No. 16-11791). Ojas N.
Shah, as foreign representative, signed the petitions.
Coop and PTIF are also subject to proceedings in the Netherlands.
The Chapter 15 cases are assigned to Judge Sean H. Lane.
In the Chapter 15 cases, the Debtors are represented by John K.
Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP,
in New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq.,
and Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida.
On July 22, 2016, the New York Court recognized the Brazilian
Proceedings as foreign main proceedings with respect to the
Chapter 15 Debtors, and granted certain additional related relief.
As reported in the Troubled Company Reporter-Latin America on
May 28, 2020, Fitch Ratings has downgraded Oi S.A's ratings,
including the Long-Term Foreign Currency Issuer Default Rating to
'CCC+' from 'B-', the LT Local Currency IDR to 'CCC+' from 'B-',
the National LT Rating to 'B(bra)'/Stable' from 'BB-(bra')/Stable,
and the 2025 notes to 'CCC+'/'RR4' from 'B-'/'RR4'. The Rating
Outlook on the international ratings has been removed.
===========================
C A Y M A N I S L A N D S
===========================
NOBLE CORPORATION: Case Summary & 50 Largest Unsecured Creditors
----------------------------------------------------------------
Lead Debtor: Noble Corporation plc
10 Brook St.
London, United Kingdom W1S 1BG
Business Description: Noble-- www.noblecorp.com -- is an
offshore drilling contractor for the
oil and gas industry. The Company
provides contract drilling services to
the international oil and gas industry
with its global fleet of mobile
offshore drilling units. Noble focuses
on a balanced, high-specification fleet
of floating and jackup rigs and the
deployment of its drilling rigs in oil
and gas basins around the world.
Chapter 11 Petition Date: July 31, 2020
Court: United States Bankruptcy Court
Southern District of Texas
Forty affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Noble Corporation plc (Lead Debtor) 20-33826
Bully 1 (Switzerland) GmbH 20-33829
Bully 2 (Switzerland) GmbH 20-33830
Noble 2018-I Guarantor LLC 20-33831
Noble 2018-II Guarantor LLC 20-33832
Noble 2018-III Guarantor LLC 20-33833
Noble 2018-IV Guarantor LLC 20-33835
Noble Asset Mexico LLC 20-33881
Noble BD LLC 20-33836
Noble Bill Jennings LLC 20-33883
Noble Cayman Limited 20-33837
Noble Cayman SCS Holding Limited 20-33838
Noble Contracting II GmbH 20-33839
Noble Corporation 20-33841
Noble Corporation Holdings Ltd 20-33843
Noble Corporation Holding LLC 20-33845
Noble Drilling (Guyana) Inc. 20-33846
Noble Drilling (TVL) Ltd 20-33850
Noble Drilling (U.S.) LLC 20-33851
Noble Drilling Americas LLC 20-33853
Noble Drilling Exploration Company 20-33854
Noble Drilling Holding LLC 20-33825
Noble Drilling International GmbH 20-33855
Noble Drilling NHIL LLC 20-33856
Noble Drilling Services Inc. 20-33857
Noble DT LLC 20-33862
Noble Earl Frederickson LLC 20-33884
Noble FDR Holdings Limited 20-33863
Noble Holding (U.S.) LLC 20-33865
Noble Holding International Limited 20-33867
Noble Holding UK Limited 20-33871
Noble International Finance Company 20-33872
Noble Leasing (Switzerland) GmbH 20-33874
Noble Leasing III (Switzerland) GmbH 20-33875
Noble Mexico Limited 20-33885
Noble Resources Limited 20-33876
Noble Rig Holding I Limited 20-33879
Noble Rig Holding II Limited 20-33880
Noble SA Limited 20-33877
Noble Services International Limited 20-33828
Judge: Hon. Marvin Isgur
Debtors'
Counsel: George N. Panagakis, Esq.
Anthony R. Joseph, Esq.
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
155 N. Wacker Dr.
Chicago, Illinois 60606-1720
Tel: (312) 407-0700
Fax: (312) 407-0411
Email: george.panagakis@skadden.com
– and –
Mark A. McDermott, Esq.
Jason N. Kestecher, Esq.
Nicholas S. Hagen, Esq.
One Manhattan West
New York, New York 10001
Tel: (212) 735-3000
Fax: (212) 735-2000
Email: mark.mcdermott@skadden.com
jason.kestecher@skadden.com
Debtors'
Co-Counsel: John F. Higgins, Esq.
Eric M. English, Esq.
M. Shane Johnson, Esq.
Megan Young-John, Esq.
Emily D. Nasir, Esq.
PORTER HEDGES LLP
1000 Main St., 36th Floor
Houston, Texas 77002
Tel: (713) 226-6000
Fax: (713) 226-6248
Email: jhiggins@porterhedges.com
eenglish@porterhedges.com
sjohnson@porterhedges.com
myoung-john@porterhedges.com
enasir@porterhedges.com
Debtors'
Financial
Advisor: ALIXPARTNERS, LLP
Debtors'
Investment
Banker: EVERCORE GROUP L.L.C.
Debtors'
Claims &
Noticing
Agent and
Administrative
Advisor: EPIQ CORPORATEa RESTRUCTURING, LLC
https://dm.epiq11.com/case/noble/dockets
Total Assets as of March 31, 2020: $7,261,099,000
Total Liabilities as of March 31, 2020: $4,664,567,000
The petitions were signed by Richard B. Barker, chief financial
officer.
A copy of Noble Corporation's petition is available for free at
PacerMonitor.com at:
https://is.gd/LVFP53
Consolidated List of Debtors' 50 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. U.S. Bank Unsecured Debt $769,704,093
60 Livingston Ave. 7.875% Senior
St. Paul, MN 55107 Notes
Contact: Alejandro Hoyos
Email: alejandro.hoyos@usbank.com
2. JPMorgan Chase Bank, N.A. Unsecured Debt $549,995,940
712 Main Street Senior Revolving
5th Floor Facility
Houston, TX 77002
Contact: Gregory N Rostick
Email: gregory.n.rostick@chase.com
3. The Bank of New York Mellon Unsecured Debt $487,790,864
Trust Company, N.A. 5.250% Senior
601 Travis Street Notes
16th Floor
Houston, TX 77002
Contact: Lisa McCants
Email: lisa.mccants@bnymellon.com
4. Wilmington Trust, Unsecured Debt $459,162,987
National Association 7.950% Senior
1100 North Market Street Notes
Wilmington, DE 19801
Contact: Barry Somrock
Email: bsomrock@wilmingtontrust.com
5. Wilmington Trust, Unsecured Debt $407,441,506
National Association 7.750% Senior
1100 North Market Street Notes
Wilmington, DE 19801
Contact: Barry Somrock
Email: bsomrock@wilmingtontrust.com
6. The Bank of New York Mellon Unsecured Debt $402,770,127
Trust Company, N.A. 6.200% Senior
601 Travis Street Notes
16th Floor
Houston, TX 77002
Contact: Lisa McCants
Email: lisa.mccants@bnymellon.com
7. Wilmington Trust, Unsecured Debt $402,752,583
National Association 8.950% Senior
1100 North Market Street Notes
Wilmington, DE 19801
Contact: Barry Somrock
Email: bsomrock@wilmingtontrust.com
8. The Bank of New York Mellon Unsecured Debt $399,837,398
Trust Company, N.A. 6.050% Senior
601 Travis Street Notes
16th Floor
Houston, TX 77002
Contact: Lisa McCants
Email: lisa.mccants@bnymellon.com
9. The Bank of New York Mellon Unsecured Debt $81,435,197
Trust Company, N.A. 4.625% Senior
601 Travis Street Notes
16th Floor
Houston, TX 77002
Contact: Lisa McCants
Email: lisa.mccants@bnymellon.com
10. The Bank of New York Mellon Unsecured Debt $64,066,969
Trust Company, N.A. 4.900% Senior
601 Travis Street Notes
16th Floor
Houston, TX 77002
Contact: Lisa McCants
Email: lisa.mccants@bnymellon.com
11. The Bank of New York Mellon Unsecured Debt $21,505,749
Trust Company, N.A. 3.950% Senior
601 Travis Street Notes
16th Floor
Houston, TX 77002
Contact: Lisa McCants
Email: lisa.mccants@bnymellon.com
12. National Oilwell Varco Trade Debt $3,724,294
5100 North Sam Houston
Parkway West
Houston, TX 77086
Tel: 281-325-6533
Email: brian.wesneski@nov.com
13. Marks, Scott Deferred $2,851,188
Address on File Compensation
Tel: 832-520-5717
Email: scottmarks1113@gmail.com
14. Martin, Therald Deferred $2,159,174
Address on File Compensation
Tel: 281-202-8969
Email: therald.martin@yahoo.com
15. Madden, Thomas Deferred $857,405
Address on File Compensation
Tel: 713-410-4949
Email: maddenirl@aol.com
16. National Oilwell Varco LP Trade Debt $578,720
10353 Richmond Avenue
Houston, TX 77042
Tel: 713-346-7233
Email: noblesales@nov.com
17. Hpetroconsult Ltda Trade Debt $461,058
Barra D Tijuca
Rio De Janeiro 22640-102
Brazil
Tel: 22-2430-4500
Email: hpetroconsult@inforlink.com.br
18. National Oilwell Varco Trade Debt $365,166
Norway AS
Lagerveien 8
8181
Stavanger 4034
Norway
Tel: 47-5181-8181
Email: accountsreceivableafter
market@nov.com
19. Crane Worldwide Logistics Trade Debt $359,480
(Thailand)
589/110 20th Floor, Central City BA
Bangkok 10260
Thailand
Tel: 2745-6088-109
Email: supalerk.phitaksuteephong@craneww.com
20. Trasfor SA Trade Debt $337,665
Strada Cantonale 11
Molinazzo Di Monteggio 6998
Switzerland
Tel: 41-58-58- 84400
Email: pl-gbs_switzerland_ar@abb.com
21. Wolford, Bernie Deferred $261,850
Address on File Compensation
Tel: 832-600-7915
Email: berniewolford@gmail.com
22. Humes, Larry Deferred $246,587
Address on File Compensation
Email: txjhawkscomm@att.net
23. NOV Rig Solutions Pte Ltd. Trade Debt $239,534
29 Tuas Bay Drive
Singapore 637429
Singapore
Tel: 6594-1025
Email: adlin.abdulwahid@nov.com
24. Thornton, Bodley Deferred $217,298
Address on File Compensation
Tel: 713-823-4228
Email: bpthorntonsr@gmail.com
25. Bridon American Corporation Trade Debt $216,969
280 New Commerce Blvd
Wilkes-Barre, PA 18706
Tel: 570-822-3349-215
Email: hfisher@bridonamerican.com
26. Shell Oil Products US Trade Debt $192,712
PO Box 4749
Houston, TX 77210
Tel: 632-483-5942
Email: leanel.camporedondo@shell.com
27. Mings Products & Services Ltd. Trade Debt $184,662
6 Urquhart Street
Georgetown, Guyana
Tel: 592-225-3553-222
Email: ford.audrey@mps.gy
28. M & M International Inc. Trade Debt $172,285
1249 SE Evangeline Thruway
Broussard, LA 70518
Tel: 337-364-4145
Email: mmisales@mmvalve.com
29. Ameriforge Group Inc. Trade Debt $171,203
945 Bunker Hill Rd, Suite 500
Houston, TX 77024
Tel: 713-293-1245
Email: ar@afglobalcorp.com
30. Huisman North America Trade Debt $163,458
Services, LLC
2502 Wehring Road
Rosenberg, TX 77471
Tel: 832-490-1019
Email: accounting@huisman-na.com
31. Technip Umbilicals Inc. Trade Debt $146,752
16661 Jacintoport
Houston, TX 77015
Tel: 281-249-2711
Email: pbajo@technip.com
32. Speedcast Communications, Inc. Trade Debt $144,986
4400 S Sam Houston Pkwy E
Houston, TX 77048
Tel: 832-668-2459
Email: collections.america@speedcast.com
33. Hyundai Global Service Trade Debt $144,599
Americas o.
7206 Harms Road
Houston, TX 77041
Tel: 832-850-7659
Email: mhkim@hyundai-gs.com
34. Ocean Oilfield Trade Debt $132,961
Drilling Services
No. 8, Persiaran Melor Awana
Kijal
Kemaman 24100
Malaysia
Tel: 9864-0461
Email: accmy@oceanoilfield.com
35. Gulf Agency Co (Oman) LLC Trade Debt $130,907
PC 112, Ruwi, Sultanate of Oman
Ruwi 112
Oman
Tel: 244-77800-810
Email: jayaram.sethuraman@gac.com
36. American Bureau of Shipping Trade Debt $121,909
PO Box 24860
Dubai
United Arab Emirates
Tel: 4330-6000
Email: asoliman@eagle.org
37. Contitech Oil & Marine Trade Debt $120,786
Corporation
11535 Brittmoore Park Drive
Houston, TX 77041
Tel: 832-327-0141
Email: jocelyn.mangunsong@continental.com
38. GE Energy Power Trade Debt $109,507
Conversion USA Inc.
100 East Kensinger Drive, Ste 500
Cranberry Township, PA 16066
Tel: 412-967-0765
Email: gepays_Bid250060@ge.com
39. SPX Flow Oil and Gas Equipments Trade Debt $108,000
Plot No 29, Ali Khalifan Rashed
AL
6539
Abu Dhabi
United Arab Emirates
Tel: 971 2 408 190...
Email: thangam.r@spxflow.com
40. Gates & S Trading LLC Trade Debt $106,654
Al Quoz
12973
Dubai
United Arab Emirates
Tel: 6528-0801-262
Email: sadiqh@ahmed@gates.com
41. NOV Saudi Arabia Trading Co. Trade Debt $105,558
PO Box 52681
Dammam 20745
Saudi Arabia
Tel: 971 48 064204...
Email: jessy.kolencher@nov.com
42. Sodexo Remote Sites Trade Debt $104,183
Australia Pty Ltd
247 Balcatta Road
Perth, WA 6021
Australia
Tel: 892-42-0766
Email: accountsreceivable.amecaa.au@
sodexo.com
43. James, Ronald Deferred $101,808
Address on File Compensation
Tel: 281-851-0459
Email: rljames1128@gmail.com
44. Charter Supply Co. Trade Debt $99,570
8100 Ambassador Caffery Prky
81735
Broussard, LA 70518
Tel: 337-837-2724
Email: spicard@chartersupply.com
45. Gulf Agency Qatar Trade Debt $96,801
PO Box 6534
Doha Qatar
Tel: 974 323954
Email: shipaccounts.qatar@gac.com
46. FT Farfan Ltd. Trade Debt $96,644
#3-5 Ibis Avenue, Ibis Acres
San Juan
Trinidad and Tobago
Tel: 868-674-7896
Email: receivables@ftfarfan.com
47. Lamprell Energy Limited Trade Debt $92,505
Jebel Ali Free Zone, Gate 4
33455
Dubai
United Arab Emirates
Tel: 652-823-23-504
Email: sharmilas@lamprell.com
48. Eaglin, Michael Litigation
Arnold & Itkin LLP
6009 Memorial Drive
Houston, TX 77007
Email: karnold@arnolditkin.com
49. Paragon Litigation Trust Litigation
Kirkland & Ellis LLP
300 North Lasalle
Chicago, IL 60654
Tel: 312 862 2290
Email: patrick.nash@kirkland.com
50. Transocean Offshore Litigation
Reynolds Frizzell LLP
1100 Louisiana St., Ste 3500
Houston, TX 77002
Tel: 713-485-7200
Email: creynolds@reynoldsfrizzell.com
NOBLE CORPORATION: Files Chapter 11 to Facilitate Restructuring
---------------------------------------------------------------
Noble Corporation plc ("Noble" or "the Company") on July 31
disclosed that it has entered into a restructuring support
agreement (the "Agreement") with two ad hoc groups of the largest
holders of the Company's outstanding bond debt regarding a
consensual financial restructuring transaction that will
significantly deleverage the Company's balance sheet and position
the Company for long term growth.
The Agreement outlines, among other things, a comprehensive plan
for the elimination of all of the Company's bond debt, which
currently represents over $3.4 billion of debt, through the
cancellation and exchange of debt for new equity in the reorganized
company. As further support for the deleveraging transaction, the
Company's major bondholders have agreed to invest $200 million of
new capital in the form of new second lien notes. In addition, the
Company is expected to emerge with an enhanced liquidity position
supported by a new $675 million secured revolving credit facility
to be provided by its current syndicate of revolving credit
facility lenders, with JPMorgan Chase Bank, N.A. as administrative
agent. The significant reduction of debt and annual interest
expense, combined with a strong liquidity position, will enable the
Company to reorient itself toward future growth and value creation
for all stakeholders.
In order to implement the restructuring transaction, the Company
and selected subsidiaries have filed voluntary petitions for relief
under chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of Texas (the
"Chapter 11 Cases"). The restructuring will be implemented through
a plan of reorganization that the Company expects to be confirmed
by this fall, allowing the Company's emergence from chapter 11
before year end.
The Company has sufficient capital to fund its worldwide operations
and does not require additional post-petition financing at this
time. Noble plans to continue to operate as normal and without
interruption for the duration of the restructuring and will
continue to pay employee wages and health and welfare benefits as
well as vendors in the normal course.
Robert Eifler, President and Chief Executive Officer, stated "Along
with many other businesses in our industry, Noble has been affected
by the severe downturn in commodity prices which has been
compounded by the Covid-19 pandemic. After many months exploring
our strategic options, we concluded that a substantial deleveraging
transaction implemented through a Chapter 11 filing, supported by
our largest creditors, provides the best outcome for Noble and our
stakeholders. Our improved balance sheet and liquidity position
will enable us to further invest in our assets, customer
relationships and our people. I would like to personally thank our
employees for their continued dedication, as well as all of our
customers and service providers for their support and partnership.
We remain committed to the world class operational excellence,
safety and environmental stewardship that defines Noble."
Additional information regarding the Chapter 11 Cases will be
available at www.noblecorp.com/restructuring. Court filings and
other information related to the court-supervised proceedings are
available at a website administered by the Company's claims agent,
EPIQ Restructuring Services, LLC, at https://dm.epiq11.com/noble.
Questions should be directed to our dedicated restructuring hotline
by phone at 855-917-3560 (toll free in the U.S.) or 503-597-7713
(for international callers), or by e-mail at
NobleInfo@epiqglobal.com.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel to Noble, Evercore is serving as the Company's financial
advisor, and AlixPartners LLP is serving as operational advisor.
Porter Hedges LLP is serving as local legal counsel and EPIQ
Restructuring Services LLC is serving as administrative agent.
Kramer Levin Naftalis & Frankel LLP and Akin Gump LLP are serving
as co-legal counsel and Ducera Partners LLC is serving as financial
advisor to an ad hoc group of the Company's priority guaranteed
noteholders.
Milbank LLP is serving as legal counsel and Houlihan Lokey Capital,
Inc. is serving as financial advisor to an ad hoc group of the
Company's senior noteholders.
Simpson Thacher & Bartlett LLP is serving as legal counsel and PJT
Partners is serving as financial advisor to JP Morgan.
About Noble Corporation plc
Noble (NYSE: NE) -- http://www.noblecorp.com-- is an offshore
drilling contractor for the oil and gas industry. The Company owns
and operates one of the most modern, versatile and technically
advanced fleets in the offshore drilling industry. Noble performs,
through its subsidiaries, contract drilling services with a fleet
of 24 offshore drilling units, consisting of 12 drillships and
semisubmersibles and 12 jackups, focused largely on ultra-
deepwater and high-specification jackup drilling opportunities in
both established and emerging regions worldwide. Noble is a public
limited company registered in England and Wales with company number
08354954 and registered office at 10 Brook Street, London, W1S 1BG
England.
=========
C H I L E
=========
LATAM AIRLINES: Committee Taps Klestadt Winters as Conflict Counsel
-------------------------------------------------------------------
The official committee of unsecured creditors of LATAM Airlines
Group S.A. and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to retain
Klestadt Winters Jureller Southard & Stevens, LLP.
Klestadt Winters will provide legal advice on matters where
Dechert
LLP, the committee's lead counsel, cannot represent the committee
due to a conflict of interest.
Klestadt Winters's current standard hourly rates are:
Partners $550 - $775
Associates $250 - $495
Paralegals $175
Legal Assistants $175
Tracy Klestadt, Esq., a partner at Klestadt Winters, disclosed in
court filings that the firm is a "disinterested person" within the
meaning of Bankruptcy Code Section 101(14).
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Klestadt disclosed that:
-- Klestadt Winters did not agree to a variation from, or an
alternative to, its standard or customary billing arrangements;
-- no professional at Klestadt Winters included in the
engagement varied his rate based on the geographic location of
Debtors' bankruptcy cases; and
-- the firm did not represent the committee in the 12 months
prior to Debtors' bankruptcy filing.
The firm can be reached through:
Tracy L. Klestadt, Esq.
Klestadt Winters Jureller Southard & Stevens, LLP
200 West 41st Street, 17th Floor
New York, NY 10036
Phone: (212) 972-3000
Email: tklestadt@klestadt.com
About LATAM Airlines Group
LATAM Airlines Group S.A. is a pan-Latin American airline holding
company involved in the transportation of passengers and cargo and
operates as one unified business enterprise. It is the largest
passenger airline in South America. Before the onset of the
COVID-19 pandemic, LATAM offered passenger transport services to
145 different destinations in 26 countries, including domestic
flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru,
and international services within Latin America as well as to
Europe, the United States, the Caribbean, Oceania, Asia and
Africa.
LATAM Airlines Group and its 28 affiliates sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25,
2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United
States are part of the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
Debtors have tapped Cleary Gottlieb Steen & Hamilton LLP as
general
bankruptcy counsel; FTI Consulting as restructuring advisor;
Togut,
Segal & Segal LLP and Claro & Cia in Chile as special counsel;
PricewaterhouseCoopers Consultores Auditores SpA as independent
auditors; and Larrain Vial Servicios Profesionales Limitada as
Latin America investment banker. Prime Clerk LLC is the claims
agent.
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors on June 5, 2020. The committee is represented in
Debtors' bankruptcy cases by Dechert LLP. The committee has also
tapped Morales & Besa LTDA to provide advice on matters related
to
the Chilean and cross-border insolvency law.
LATAM AIRLINES: To Fire 'at least' 2,700 Workers in Brazil
----------------------------------------------------------
Reuters reports that LATAM Airlines will fire "at least" 2,700
workers in Brazil, including pilots, its Brazilian arm said, as the
bankrupt carrier struggles to cut costs and cope with an industry
collapse due to the COVID-19 pandemic.
In a statement, LATAM Brasil said it opened a voluntary redundancy
process which ran through Aug. 4, after which a further minimum
2,700 jobs will be cut, the report relays.
Reuter says the announcement followed the breakdown in talks with
the SNA union over workers' pay, the statement said. O Globo and O
Estado de S. Paulo newspapers had reported the redundancies earlier
on Aug 1. LATAM said it pays its pilots and crew more than its
rivals in Brazil, and the pandemic has forced it to "match industry
practices."
The layoffs are the latest in efforts to downsize Latin America’s
largest airline, according to Reuters. Before the novel coronavirus
outbreak, the airline had 43,000 workers worldwide, with most of
them in Brazil and Chile. LATAM is seeking to restructure $18
billion in debt. When it filed for U.S. bankruptcy protection in
May, it was the world’s largest airline to date to seek an
emergency reorganization due to the pandemic.
About LATAM Airlines Group
LATAM Airlines Group S.A. is a pan-Latin American airline holding
company involved in the transportation of passengers and cargo and
operates as one unified business enterprise. It is the largest
passenger airline in South America. Before the onset of the
COVID-19 pandemic, LATAM offered passenger transport services to
145 different destinations in 26 countries, including domestic
flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru,
and international services within Latin America as well as to
Europe, the United States, the Caribbean, Oceania, Asia and
Africa.
LATAM Airlines Group and its 28 affiliates sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25,
2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United
States are part of the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
Debtors have tapped Cleary Gottlieb Steen & Hamilton LLP as
general
bankruptcy counsel; FTI Consulting as restructuring advisor;
Togut,
Segal & Segal LLP and Claro & Cia in Chile as special counsel;
PricewaterhouseCoopers Consultores Auditores SpA as independent
auditors; and Larrain Vial Servicios Profesionales Limitada as
Latin America investment banker. Prime Clerk LLC is the claims
agent.
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors on June 5, 2020. The committee is represented in
Debtors' bankruptcy cases by Dechert LLP. The committee has also
tapped Morales & Besa LTDA to provide advice on matters related
to
the Chilean and cross-border insolvency law.
-- no professional at Klestadt Winters included in the
engagement varied his rate based on the geographic location of
Debtors' bankruptcy cases; and
-- the firm did not represent the committee in the 12 months
prior to Debtors' bankruptcy filing.
The firm can be reached through:
Tracy L. Klestadt, Esq.
Klestadt Winters Jureller Southard & Stevens, LLP
200 West 41st Street, 17th Floor
New York, NY 10036
Phone: (212) 972-3000
Email: tklestadt@klestadt.com
About LATAM Airlines Group
LATAM Airlines Group S.A. is a pan-Latin American airline holding
company involved in the transportation of passengers and cargo and
operates as one unified business enterprise. It is the largest
passenger airline in South America. Before the onset of the
COVID-19 pandemic, LATAM offered passenger transport services to
145 different destinations in 26 countries, including domestic
flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru,
and international services within Latin America as well as to
Europe, the United States, the Caribbean, Oceania, Asia and
Africa.
LATAM Airlines Group and its 28 affiliates sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25,
2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United
States are part of the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
Debtors have tapped Cleary Gottlieb Steen & Hamilton LLP as
general
bankruptcy counsel; FTI Consulting as restructuring advisor;
Togut,
Segal & Segal LLP and Claro & Cia in Chile as special counsel;
PricewaterhouseCoopers Consultores Auditores SpA as independent
auditors; and Larrain Vial Servicios Profesionales Limitada as
Latin America investment banker. Prime Clerk LLC is the claims
agent.
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors on June 5, 2020. The committee is represented in
Debtors' bankruptcy cases by Dechert LLP. The committee has also
tapped Morales & Besa LTDA to provide advice on matters related
to
the Chilean and cross-border insolvency law.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Bavaro Airport Faces Complaint, Red Tape
------------------------------------------------------------
Dominican Today reports that on the same day that President Danilo
Medina issued executive order 270-20 to approve the construction of
the Bavaro International Airport, the Dominican Republic Hotels and
Tourism Association (Asonahores) voiced its complaint to the
Tourism Development Council (Confotur) for the way the project was
being managed.
"We understood that this project should be submitted as a
provisional classification approval since it lacked the
corresponding permits, as was the Concession Approval Decree that
all port infrastructure must possess," says a letter dated July 21
2020, sent to Confotur by Asonahores legal director, Alba Marina
Russo, representing Andres Marranzini, who represents the tourism
businesses and hoteliers before the Council, according to Dominican
Today.
The letter, received in the Council on Jul. 23, was sent to
reinforce Asonahores' opinion on different points approved at a
Confotur meeting held July 16. At that, the final classification
of the Bavaro International Airport was disclosed, as explained in
the correspondence, 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: Storm Leaves 300,000 Homes Without Power
------------------------------------------------------------
Dominican Today reports that the passage through the Dominican
Republic of Tropical Storm Isaias affected 71 energy circuits. The
distributors Edenorte reported 28 circuits out of service, Edesur
had 18 and Edeeste reported 61, according to Dominican Today.
State Electric Utility (CDEEE) PR, Esteban Delgado, said the
circuit cuts affected nearly 300,000 customers, the report notes.
Delgado told SIN that due to the breakdowns in the electricity
sector, Edenorte is stopping supplying about 34 megawatts, Edesur
28 megawatts and Edeeste around 194 megawatts for a total of 256
megawatts as deficit with problems, "being corrected by the
technicians of the Edes," the report relays.
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).
===========
M E X I C O
===========
GRUPO AEROMEXICO: Readying Financing Plan
-----------------------------------------
Andrea Navarro, Cyntia Aurora Barrera Diaz and Ezra Fieser,
writing
for Bloomberg News, reports that Grupo Aeromexico SAB said in
early
July that its financing plan under its Chapter 11 bankruptcy
protection filing could be ready in the next four to six weeks.
The voluntary filing will allow the company to weather the
coronavirus pandemic however long it may last, Chief Executive
Officer Andres Conesa said in an interview.
Aeromexico's bankruptcy protection filing came after the carrier
saw the number of passengers it flew plummet more than 90% as
governments grounded flights and travelers stayed home. Airlines
in Latin America, unlike their counterparts in the U.S. and
Europe,
have received scant government support.
"We're solvent, we have assets, but we haven't been able to tap
financial markets over the past three months," Conesa said. "This
will allow us to access better financing that we wouldn't get
otherwise."
Since the pandemic started, the carrier has had to dole out 1.5
billion pesos ($65.8 million) to repay debt, Conesa said.
Aeromexico's total debt reached $1.9 billion and 7.9 billion
pesos,
according to the first day petition filed on Wednesday before the
court.
DIP Financing
Latam Airlines Group SA, which also filed for creditor protection
in May, is seeking as much as $2.15 billion in new debt, according
to court filings. Avianca Holdings SA has not specified how much
it
is seeking, a spokeswoman said.
Conesa says he doesn't see Aeromexico needing that much, though a
final number is still four to six weeks away. Now that the filing
has been made, a group of creditors will get together this month
and they, alongside the company and a judge, will decide how much
needs to be raised and what form the restructuring will take.
"We'll likely have a mix of plain and convertible debt," he said.
"But the message is clear -- we're focused on keeping Aeromexico
flying and acting responsibly. We're not thinking about the
equity
side at the moment."
The carrier received zero support from the government, Conesa
said.
"The government was very clear on that. The entire region is
heading towards a market restructure, and that will allow us to
have an even better future."
Flexible Fleet
Aeromexico owns about 30% of its fleet, Conesa said, which stood
at
130 jets before the pandemic started. Those assets could be
offered
as collateral through sale-and-lease-back operations, he said.
Additional flexibility comes from its leases being staggered.
Contracts for about 15% of its fleet expire over the next 15
months, he said.
Another decision to be made in the coming weeks will be what
routes
to keep and at what frequencies. This month, the airline will fly
about half of the domestic flights it had in July last year and
about 20% of its international ones.
When, or if, to bring the rest back will largely depend on demand
and on governments’ flight restrictions across the globe, he
said. The airline, which still has nine Boeing 737 Max aircraft to
be delivered, said it is reviewing its contract conditions with
the
plane maker.
The airline will likely emerge slimmer from the proceedings,
Conesa
said, but that won’t mean a change to its business model and he
doesn’t see aggressive fare cuts necessary to compete with
domestic rivals.
"Aeromexico's essence will continue, it was working so far," he
said. "But not even the strongest airline in the world can
withstand this."
Aeromexico operates routes in Mexico and internationally to
destinations including the U.S., Canada, Europe and Asia. Delta
Air
Lines Inc. is its biggest shareholder.
The airline has been able to avoid lay-offs until now, but Conesa
says fewer flights in the future will likely require adjustments,
though he declined to give a figure. The carrier's workforce
stands
at about 16,000, he said.
Aeromexico is being advised by Davis Polk & Wardwell LLP,
Rothschild & Co., Cervantes Sainz S.C., AlixPartners and Skyworks
Holdings, LLC.
About Grupo Aeromexico
Grupo Aeromexico, S.A.B. de C.V. and three of its subsidiaries
sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No.
20-11563) on June 30, 2020. In the petitions signed by CFO
Ricardo
Javier Sanchez Baker, the Debtors were estimated to have
consolidated assets and liabilities of $1 billion to $10 billion.
Grupo Aeromexico, S.A.B. de C.V. is a holding company whose
subsidiaries are engaged in commercial aviation in Mexico and the
promotion of passenger loyalty programs. Mexico's global airline
has its main hub at Terminal 2 at the Mexico City International
Airport. Its destinations network features the United States,
Canada, Central America, South America, Asia and Europe.
At the time of filing, the Group's operating fleet of 119 aircraft
is comprised of Boeing 787 and 737 jet airliners and Embraer 170
and 190 models. Aeromexico is a founding member of the SkyTeam
airline alliance, which celebrated its 20th anniversary, and
serves
in 170 countries by the 19 SkyTeam airline partners. Aeromexico
created and implemented a Health and Sanitization Management
System
(HSMS) to protect its customers and employees at all steps of its
operations.
Davis Polk & Wardwell LLP and Cervantes Sainz are acting as
Aeromexico's legal counsel, Rothschild & Co. is acting as
financial
advisor, and AlixPartners, LLP is serving as restructuring advisor
to the Company. Epiq Bankruptcy Solutions is the claims agent.
GRUPO AEROMEXICO: To Review Fleet Obligations
---------------------------------------------
Reuters, citing a court document, reports that Mexican airline
Grupo Aeromexico, S.A.B. de C.V. aims to review obligations on its
fleet of aircraft and use aviation industry restructuring adviser
SkyWorks Capital for that purpose.
In a submission to the U.S. Bankruptcy Court for the Southern
District of New York, Aeromexico sought permission to retain
SkyWorks during the Chapter 11 bankruptcy proceedings the Mexican
company initiated in late June, according to Reuters.
"SkyWorks will work with (Aeromexico) to develop a comprehensive
plan for the restructuring of (Aeromexico's) aircraft obligations,"
the document said, the report notes.
About Grupo Aeromexico
Grupo Aeromexico, S.A.B. de C.V. and three of its subsidiaries
sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No.
20-11563) on June 30, 2020. In the petitions signed by CFO
Ricardo Javier Sanchez Baker, the Debtors were estimated to have
consolidated assets and liabilities of $1 billion to $10 billion.
Grupo Aeromexico, S.A.B. de C.V. is a holding company whose
subsidiaries are engaged in commercial aviation in Mexico and the
promotion of passenger loyalty programs. Mexico's global airline
has its main hub at Terminal 2 at the Mexico City International
Airport. Its destinations network features the United States,
Canada, Central America, South America, Asia and Europe.
At the time of filing, the Group's operating fleet of 119 aircraft
is comprised of Boeing 787 and 737 jet airliners and Embraer 170
and 190 models. Aeromexico is a founding member of the SkyTeam
airline alliance, which celebrated its 20th anniversary, and serves
in 170 countries by the 19 SkyTeam airline partners. Aeromexico
created and implemented a Health and Sanitization Management System
(HSMS) to protect its customers and employees at all steps of its
operations.
Davis Polk & Wardwell LLP and Cervantes Sainz are acting as
Aeromexico's legal counsel, Rothschild & Co. is acting as financial
advisor, and AlixPartners, LLP is serving as restructuring advisor
to the Company. Epiq Bankruptcy Solutions is the claims agent.
GRUPO FAMSA: Chapter 15 Case Summary
------------------------------------
Chapter 15 Debtor: Grupo Famsa, S.A.B. de C.V.
Business Description: The Debtor is a retail company engaged in
the purchase and sale of household
appliances, electronic products, furniture,
clothing and other consumer products.
Chapter 15 Petition Date: August 6, 2020
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 20-11811
Judge: Hon. Shelley C. Chapman
Chapter 15 Petitioner: Paloma Elizabeth Arellano Bujanda
Chapter 15 Petitioner's Counsel: Pedro Jimenez, Esq.
Estimated Assets: Unknown
Estimated Debts: Unknown
GRUPO FAMSA: Orrick, Herrington Represents Bondholder Group
-----------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy
Procedure,
the law firm of Orrick, Herrington & Sutcliffe LLP submitted a
verified statement to disclose that it is representing the Ad Hoc
Bondholder Group in the Chapter 11 cases of Grupo Famsa, S.A.B. de
C.V.
Orrick Herrington represents the Ad Hoc Bondholder Group in
connection with the Debtor's chapter 11 case. Orrick does not
represent or purport to represent any other entities in connection
with the Debtor's chapter 11 case. Orrick does not represent the
Ad Hoc Bondholder Group as a "committee" and does not undertake to
represent the interests of, and is not a fiduciary for, any
creditor, party in interest, or entity other than the Ad Hoc
Bondholder Group. In addition, the Ad Hoc Bondholder Group does
not
represent or purport to represent any other entities in connection
with the Debtor's chapter 11 case.
As of Aug. 6, 2020, members of the Ad Hoc Bondholder Group and
their disclosable economic interests are:
2024 Notes
----------
Barclays Bank PLC $9,262,000
745 7th Avenue
New York, NY 10019
Penderfund Capital Management Ltd $5,887,000
1066 Hastings St W Suite 1830
Vancouver BC V6E 3X2
CA Canada
Vontobel Asset Management AG $18,789,000
Genferstrasse 27 Zurich 8022
CH Switzerland
Additional holders of claims against the Debtor's estate may
become
members of the Ad Hoc Bondholder Group, and certain members of the
Ad Hoc Bondholder Group may cease to be members in the future.
Orrick reserves the right to amend or supplement this Verified
Statement in accordance with the requirements set forth in
Bankruptcy Rule 2019.
Counsel to Ad Hoc Bondholder Group can be reached at:
ORRICK, HERRINGTON & SUTCLIFFE LLP
Raniero D'Aversa, Jr., Esq.
51 West 52nd Street
New York, NY 10019
Telephone: (212) 506-3715
Facsimile: (212) 506-5151
Email: rdaversa@orrick.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://is.gd/4YCdPj
About Grupo Famsa
Grupo Famsa, S.A.B. de C.V. is a variable capital public stock
corporation under the laws of Mexico, originally organized on Dec.
27, 1979 under the name Corporacion Famsa, S.A. The Debtor is not
a public reporting company in the United States pursuant to the
Securities Exchange Act of 1934. The Debtor is the parent company
of several non-debtor subsidiaries, both in the United States and
Mexico, which operate in the retail and banking sectors. Visit
https://www.grupofamsa.com/ for more information.
Grupo Famsa sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
20-11505) on June 26, 2020. The case is assigned to Hon. Shelley
C. Chapman. At the time of filing, the Debtor was estimated to
have $1 billion to $10 billion in assets and liabilities as of the
bankruptcy filing.
The Hon. Shelley C. Chapman is the case judge.
PAUL HASTINGS LLP is the Debtor's counsel. ALFARO, DAVILA &
SCHERER is the financial advisor. EPIQ CORPORATE RESTRUCTURING,
LLC, is the claims agent.
GRUPO FAMSA: Targets August Emergence From Chapter 11
-----------------------------------------------------
Law360 reports that the Mexican retail chain Grupo Famsa told a
New
York bankruptcy judge in early July 2020 it already has a nearly
99% vote in favor of its prepackaged plan to swap out $59 million
in notes for longer-term ones, and that it hopes to emerge from
Chapter 11 by the middle of August.
At a remote hearing, counsel for Grupo Famsa told U.S. Bankruptcy
Judge Shelley Chapman that it had entered Chapter 11 as a way to
refinance the debt after the economic uncertainty of the COVID-19
pandemic scuttled a pending out-of-court deal.
About Grupo Famsa
Grupo Famsa, S.A.B. de C.V. -- https://www.grupofamsa.com/ -- is a
variable capital public stock corporation under the laws of
Mexico,
originally organized on Dec. 27, 1979 under the name Corporacion
Famsa, S.A. It is not a public reporting company in the United
States pursuant to the Securities Exchange Act of 1934. Grupo
Famsa is the parent company of several non-debtor subsidiaries,
both in the United States and Mexico, which operate in the retail
and banking sectors.
Grupo Famsa filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No.
20-11505) on June 26, 2020. At the time of filing, the Debtor was
estimated to have $1 billion to $10 billion in assets and
liabilities. The case is assigned to Hon. Shelley C. Chapman.
The
Debtor's counsel is Pedro A. Jimenez, Esq.
===========
P A N A M A
===========
COPA AIRLINES: No Income in April-June, Sees 98% Drop in Revenue
----------------------------------------------------------------
Reuters reports that Panama's Copa Airlines reported that it earned
almost no income between April and June, with revenue falling 98%
as coronavirus-related measures virtually shuttered the Panama City
airport that serves as its home base.
The report says Panama's tough anti-coronavirus measures, including
a travel ban that will go at least through August, has also become
a radical test of Copa's resilience. In normal times, Copa is
considered Latin America's most financially successful airline,
known for steady profits, low debt and a strong cash position.
But in the second quarter, Copa earned only $14 million in revenue
but spent $400 million keeping the business running, it said in an
earnings release. As a result, it swung to a $386 million net loss
from a $50 million profit a year earlier, notes the report.
Other publicly-traded airlines in Latin America have also had to
cope with significant travel bans, but none saw their commercial
operations come to a total halt for three months, Reuters relays.
According to the report, Copa said in a statement that its only
revenue in the quarter came from "a small number of charters and
humanitarian flights."
Colombia's Avianca Holdings and Chile's LATAM Airlines Group both
filed for bankruptcy protection in May, crushed by looming debt
payments, while Copa has so far managed to hold on without
significant restructuring, notes Reuters.
Copa said it had total liquidity of $1.3 billion at the end of
June, of which $308 million was in readily-available cash, and $741
million was short-term investments, plus it had a $150 million
unused credit line, says the report.
Copa also benefited from a bond issuance that raised $343 million
in cash during the quarter, adds Reuters.
It hopes to restart flying on Sept. 4, although tentative restart
dates have already been pushed back several times since the
pandemic upended air travel in March, the report relates.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
TRINIDAD & TOBAGO: Covid-19 Cost Rises to $4 Billion
----------------------------------------------------
Asha Javeed at Trindad and Tobago reports that as Trinidad and
Tobago enters its sixth month of dealing with the Covid-19
pandemic, Sunday Express investigations have placed the total cost
to taxpayers of direct pandemic relief so far at about $4 billion.
In April, the Government instituted a range of financial
Covid-related responses for businesses and people impacted by the
fallout of the stay-at-home orders, according to Trindad and
Tobago.
Those orders were implemented, with varying adjustments, for a
three-month period from April to June, the report notes.
While the economy remains open, the Government has held back on
reopening the entertainment sector, given the recent Covid 19
clusters, the report relays.
For Minister of Finance Colm Imbert to finance the Covid-related
expenses (given that T&T energy revenues had declined and only
yielded $3.3 billion for 2020 thus far), he had to draw down from
the Heritage and Stabilizations Fund (HSF) the sum of US$600
million, access international loans and floated a US$500 million
bond in June, the report discloses.
From that, and to help businesses with cash flow, the Ministry of
Finance paid $1.3 billion in tax refunds in cash, $1 billion in
value added tax (VAT) refund bonds and salary relief grants
totalling $2.36 billion, the report relays.
In his 2020 Supplementary Appropriation and mid-year review on June
12, in which he elucidated the Government's Covid-19 response,
Imbert said: "During this pandemic, whatever the health sector
needs, the health sector will receive," the report notes.
"Substantial budgetary resources have been directed to the health
sector, and this has been aided by external financial support.
Additional medical personnel have been hired; medical equipment and
personal protective equipment (PPE) have been sourced; hospitals
and medical facilities have been, and are being, upgraded and
commissioned where necessary; and specific sites are dedicated to
treating infected people. Step down convalescing facilities are in
place.
"We have created a health system parallel to the traditional health
facilities to respond specifically to the pandemic, which has been,
and continues to be, an extremely effective approach," he had said,
the report relays.
Health
As of May, it has cost taxpayers $45 million for the parallel
health system, notes the report.
The Sunday Express sent questions to the Ministry of Health, but
only got data up to May 31, the report notes.
In June and July, the Government began repatriating citizens and
increased the number of facilities available to the State to serve
as quarantine centers, the report notes. That data was not
provided and would impact on the cost of the parallel health
system, the report says.
In response to questions on Covid-19 expenditure, the Ministry of
Health said during the period February to May 31:
. The amount spent on the parallel system was $45 million.
2. The total spent on consumables (safety goggles, N95 masks,
isolation gowns, sterile surgeon gowns, caps, shoe covers and
methylated spirit was $18.2 million.
3. Total spent on equipment was $10.4 million.
4. Total spent on human resources was $15.8 million.
5. The total spent on sanitation was $2.4 million.
In June, Imbert had increased the allocation to the Ministry of
Health to $224,582,640, the report notes.
This, he said, was "to supplement the 2020 funding to facilitate
payment to 11 new intensive care nurses from Cuba; 20 doctors
attached to the Ministry of Health's Covid-19 Hotline; and other
staff in response to the Covid-19 pandemic.
"Within the overall sum, $184,669,990 is required to supplement the
allocation to the four regional health authorities (RHAs) to enable
the response to the Covid-19 pandemic. The funds are to meet the
cost for consumables, infrastructure and equipment and the
procurement of additional human resource services," the report
notes.
Social Development
Social Development Minister Camille Robinson Regis said the
Government has spent $284 million on social protection measures for
citizens, the report discloses.
These, she said, have impacted "the lives of more than 156,289
individuals and families, representing over 450,000 persons or
approximately one third of the national population over the last
four months," the report relates.
1. Top up to 25,1010 beneficiaries of food support program-$17.1
million
2. Top up to existing 17,834 Public Assistance beneficiaries-$11.4
million
3. Financial assistance for 24,627 people with varying
disabilities-$11,082,150.
4. 20,500 food cards were distributed at a cost of $31.4 million.
5. 2,818 applicants of the Senior Citizens' Pension of
$1,500-$12.7 million
6. 488 applicants of the Disability Assistance Grant-$1.5
million.
7. Emergency hamper distribution-$500,000.
8. Income and food support for 42,813-$185 million,
9. Rental support-$8,732,800.
10. Hamper collaboration with the Ministry of Agriculture $10
million.
11. Distribution to faith-based organizations $30 million, of
which $10,085,000 has been spent.
Questioned on whether the Covid 19 grants would end, given the
Government had catered for three months of support for affected
citizens, Robinson-Regis said: "We have still been accepting
applications. However, the reduction in income or retrenchment
must be as at mid-March and as a result of Covid-19," he added.
Imbert had increased the allocation to the Ministry of Social
Development and Family Services to the sum of $581,794,321, the
report notes.
This, he said, was to required "to provide additional financial
support to non-governmental organizations (NGOs) to enable meals
(lunch and dinner) to be provided to the homeless during the
Covid-19 pandemic; to supplement the 2020 Senior Citizens' Grant
allocation to cater for existing beneficiaries and meet new
expenditure associated with the increase in numbers of senior
citizens accessing the grant; and to supplement the 2020 Social
Assistance Programs allocation to provide additional support to
existing beneficiaries and assist with income support to families
which experienced loss of income as a result of the Covid-19
pandemic," the report notes.
The Impact on Business
Chief executive of the Trinidad and Tobago Chamber of Commerce
Gabriel Faria told the Sunday Express the business body does not
believe "that shutting down the country is the best option as we
have seen all over the world, we must learn to live in a Covid
world and take the necessary precautions," the report notes.
"The feedback from the medical experts is that this will probably
continue for another year before a vaccine is widely available. The
US reported that GDP (gross domestic product) plunged 32.9 per cent
for the second quarter on an annualized basis. I believe it was
the worst drop ever in American history.
"Most of the business community do not have resources to withstand
another lockdown and the country does not have the financial
capacity to continue to support the population if this occurs," he
added.
He observed while the chamber does not have empirical evidence on
business closures as a result of the stay-at-home measures, "the
feedback we have, which is anecdotal, is less than five per cent of
businesses, mostly micro and small, have closed permanently.
"Many businesses held out in hope that the reopening would have
delivered the sales to cover their operating costs, however, this
has not proven to be so as consumer spending continues to be
depressed due to the uncertainty of the future. Different sectors
have seen varying levels of decline, and there is a very small
group of businesses which have not been negatively impacted.
"Many businesses have borrowed money to continue to operate, in the
hope of accessing the fiscal support packages announced, which took
longer than expected to be released. I know several businesses
which have applied, a few have been approved, but many of them are
still waiting for approval," he told the Sunday Express.
"Many businesses were also hoping to collect overdue vat refunds
and overdue amounts owed for provision of services to Government as
promised. While several businesses have received the overdue vat
refunds, there appears to be many who have not received their
overdue VAT refunds. We have not heard of any overdue suppliers who
have been paid.
"It would be helpful if the Ministry of Finance could provide an
update on the number of relief loans approved and amount disbursed,
as well as the amounts of vat refunds and payments to suppliers
actually collected by companies as it appears that the cheques are
either still in the mail or have been returned to BIR (Board of
Inland Revenue) and we have not been able to get any information
from them.
"We are individually and collectively responsible for limiting the
spread of this virus. We believe that the wearing of masks in all
public spaces should be made mandatory. Given that we are faced
with a public health emergency, if this policy can be made law by
an order, with a penalty of non-compliance, the chamber supports
its immediate implementation.
"We all have a stake in keeping Trinidad and Tobago safe and for
protecting lives and livelihoods," he added.
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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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