/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/200820.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, August 20, 2020, Vol. 21, No. 167 Headlines A R G E N T I N A ARGENTINA: Inflation Reached 1.9% in July VICENTIN SAIC: Bankrupt Company's CEO Dies B R A Z I L USINA CORURIPE: Moody's Affirms Caa1 CFR, Alters Outlook to Stable C O L O M B I A GRAN TIERRA: Fitch Affirms LT IDRs at CCC, Off Watch Negative D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Extends Social Aid Programs Until December J A M A I C A JAMAICA: Companies Office Offers Relief to Closed Businesses M E X I C O GRUPO GICSA: S&P Assigns BB- Global Scale Issuer Credit Rating NEMAK SAB: Moody's Affirms CFR at Ba1, Outlook Neg. UNITED MEXICAN: Egan-Jones Lowers Senior Unsecured Ratings to B- P A N A M A ENA NORTE TRUST: S&P Affirms BB+ Rating on $600MM Notes ENA SUR TRUST: S&P Cuts Class A $170MM Notes Rating to B P E R U NAUTILUS INKIA: Fitch Affirms BB LongTerm IDR, Outlook Negative P U E R T O R I C O ADVANCE PAIN: Seeks to Tap Tamarez CPA as Accountant ASCENA RETAIL: Russell R. Johnson Represents Utility Companies - - - - - ================= A R G E N T I N A ================= ARGENTINA: Inflation Reached 1.9% in July ----------------------------------------- Agence France-Presse reports that consumer prices in Argentina increased 1.9 percent in July compared to the previous month and have risen 15.8 percent since January, the INDEC national statistics bureau reported. Over the last 12 months, prices have increased by 42.4 percent, according to official data, the report notes. Inflation has been tampered down by price controls put in place by President Alberto Fernandez's government in the wake of the coronavirus pandemic, according to Agence France-Presse. Varying levels of lockdown adapted across the country to control the spread of the virus, most noticeably in the capital and its surroundings, where 90 percent of cases are registered, have also helped to slow price increases, the report notes. To date, close to 270,000 cases have been confirmed in Argentina, with 5,246 fatalities, the report relates. Inflation was highest in July among home equipment and maintenance (up 3.9 percent) and recreation and culture (up 0.7 percent), the report notes. In its latest survey of private economists, the Central Bank predicted that inflation could come in at 40 percent this year, with a contraction of 12 percent of gross domestic product anticipated, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. It's capital is Buenos Aires. Alberto Angel Fernandez is the current president of Argentina after winning the October 2019 general election. He succeeded Mauricio Macri in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019 according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. 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 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. VICENTIN SAIC: Bankrupt Company's CEO Dies ------------------------------------------ Buenos Aires Times reports that Vicentin CEO Sergio Nardelli died suddenly of a heart attack at his home in Reconquista, Santa Fe. Nardelli showed no signs of health problems on the day, holding business meetings, but he had been under enormous pressure for several months, according to Buenos Aires Times. The 59-year-old had been hounded by creditors chasing company debts to the tune of more than US$1.3 billion since late 2019, the report notes. He was facing several lawsuits for asset-stripping, among other charges, and fighting off a government trusteeship as a prelude to nationalisation since June, the report relays. The Alberto FernAndez administration's plans to expropriate the company were cancelled, the report says. A third-generation member of the founding family, Nardelli had been at the forefront of Vicentin executives meeting with President Alberto FernAndez at Olivos presidential residence on June 11, the report notes. Before the firm's problems began last year, the agro-industrial conglomerate had been the country's fourth leading exporter of grain and sub-products, growing exponentially in recent years through heavy investments in varied business segments which also had their price, the report says. Nardelli was a personal friend of ex-president Mauricio Macri, ensuring that Vicentin was a leading contributor to Macri's Cambiemos coalition in the 2015 and 2017 campaigns. The report relates that the former president favored Nardelli's brother Gustavo as his Santa Fe gubernatorial candidate but in the end the candidacy fell to the coalition's Radical allies. Sergio Nardelli generally kept a lower political profile than his brother. Following Nardelli's death, the Senate decided to postpone approval of decree 636/2020 backtracking on the Vicentin trusteeship, devoting the session to the budget and the tax moratorium (controversial because it extends to Kirchnerite tycoon Cristobal Lopez, accused of fuel tax evasion), apart from approving the credentials of three ambassadors, including Radical Ricardo Alfonsin in Spain as well as the new envoys to Hungary and Nicaragua. The knowledge industry bill was also postponed, the report adds. As reported in the Troubled Company on June 15, 2020, Jonathan Gilbert and Patrick Gillespie at Bloomberg News said 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. =========== B R A Z I L =========== USINA CORURIPE: Moody's Affirms Caa1 CFR, Alters Outlook to Stable ------------------------------------------------------------------ Moody's Investors Service affirmed Usina Coruripe Acucar e Alcool's Caa1 corporate family rating. The outlook was changed to stable from negative. Rating affirmed: Issuer: Usina Coruripe Acucar e Álcool Corporate Family Rating: Caa1 Outlook is stable. RATINGS RATIONALE The stabilization of Coruripe's outlook mainly reflects the completion of an agreement with secured creditors which will reduce refinancing risk by extending over BRL1.7 billion in bank debt, over half of its total debt, to a debt amortization schedule of 5 years from 3 years. Coruripe's Caa1 CFR continue to consider a weak liquidity profile and high refinancing risk despite the recently announced debt extension. In March 2020, end of the 2019-20 harvest year, Coruripe had BRL605 million in cash, compared to BRL316 million in the end of the prior harvest. Proforma for the debt extensions Coruripe will have around BRL843 million in maturities for the 2020-21 harvest, of which an estimated BRL455 million relating to working capital and export finance lines. Before the announced debt extension, the amortization schedule included BRL1.3 billion in the 2020-21 harvest. The creditors that are part of the extension agreement already had the collateral of the Iturama plant, and other assets, and will receive an additional land collateral with an estimated value of BRL400 million and the second lien on IAA (Institute of Sugar and Ethanol) booked at a value of over BRL3 billion. Instead of three amortizations of BRL571 million in 2021, 2022, and 2023, Coruripe will amortize BRL171 million in the present harvest, BRL256 million yearly and a payment of 513 million in 2025. Also, the new agreement will have a financial covenant of Debt/EBITDA equal to or lower than 3.0x (2.91x as of March 2020) which will reduce to 2.8x in March 2021 and 0.2x per harvest. The prior agreement had a covenant of Net Debt/ (EBITDA -- Capex) which proved to be incompatible with the company's high capex expenditures, increasing dollar denominated debt, lower crushing levels and EBITDA. Coruripe had breached such covenant in March 2019 and March 2020, for which waivers were negotiated. Coruripe's ratings also incorporate its scale as one of the 10 largest sugar-ethanol groups in Brazil with a crushing capacity of 15.0 million tons of sugarcane per harvest and a very high capacity utilization, over 97%. The ratings also reflect its cluster organization with ample access to sugarcane and logistic infrastructure and its geographic diversification that provides some protection against weather and other localized event risks, while allowing for a more stable production throughout the year, because of different harvest periods. Historic high capacity utilization and low land lease costs are among the elements that contribute for Usina Coruripe's competitive production costs. Coruripe's has a more flexible cost structure to reduce cost volatility since the price paid to sugarcane providers is linked to the company's selling prices through local price index instead of a general price index -- such as Consecana. Coruripe's operating performance improved in 2019/2020 and Moody's estimates results will remain on track during 2020 despite the volatility caused by the coronavirus outbreak. In the 2019/2020 harvest, ended March 2020, revenues reached BRL2.3 billion, 16.1% higher compared to the prior harvest and EBITDA reached BRL1.02 billion, 33% higher. Crushing reached 14,631 thousand tons, a record for the company, sugar and ethanol prices were higher and working capital improved. Since 2018 the company increased investments to improve the quality of its sugarcane and industrial efficiency, actions that helped sustain the observed operating results. Coruripe increased investments to BRL803 million in 2019, from BRL518 million in 2018 and an average of BRL469 million in the two harvests before that. In 2020-21 Moody's expects a crushing of 14,760 thousand tons and EBITDA of BRL1.2 billion, 4.5% higher than in 2019/2020. Despite the COVID-19 outbreak and lower ethanol prices, Coruripe's results will be supported by higher crushing volumes, higher sugar prices in BRL and hedges already in place for sugar at an average price of BRL1,453/ton (0.13 USD/lb.). Moody's believes the production mix will shift to 59% sugar, instead of the mix observed in 2019-20 of 54% sugar/46% ethanol. The stable outlook on Coruripe's ratings incorporates its view that the company will present a more adequate debt amortization schedule in the coming harvests and that operating results and cash flow generation will remain solid. Moody's also expects Coruripe to maintain its liability management strategy in order to adequate its debt amortization schedule to its investment needs. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING An upgrade would require a considerable improvement in liquidity with cash consistently covering short-term debt during the harvest even in a low-price environment. Quantitatively EBITA/Interest Expense would need to be sustained above 1.0x, while Debt/EBITDA maintained below 5.5x and CFO/Net Debt above 10%. A downgrade could happen if Usina Coruripe's liquidity continues to deteriorate or if it is not able to refinance upcoming maturities. Founded in 1925 and headquartered in Coruripe, State of Alagoas, Usina Coruripe is a sugar and ethanol producer and electricity cogenerator with five crushing units, one in the State of Alagoas and other four in the State of Minas Gerais. In the 2019-20 harvest, the company generated BRL 2.4 billion in revenues. The company currently has the largest plant in the Northeast region of Brazil with 3,000-ton capacity. The principal methodology used in this rating was Protein and Agriculture published in May 2019. =============== C O L O M B I A =============== GRAN TIERRA: Fitch Affirms LT IDRs at CCC, Off Watch Negative ------------------------------------------------------------- Fitch Ratings has affirmed Gran Tierra Energy International Holdings Ltd's Long-Term Foreign and Local Currency Issuer Default Ratings at 'CCC', and has affirmed the company's senior unsecured notes rating at 'CCC'/'RR4'. The Rating Watch Negative has been removed. The rating affirmation and removal from Negative Watch, reflects Fitch's view that GTE has taken steps to lower cost and production, preserve reserves and mitigate loses due to pricing volatility through hedging its production. Nevertheless, the company's 'CCC' rating reflects its weak liquidity profile, with limited support through a recently renegotiated credit revolver. Gross leverage remains high, defined as total debt to EBITDA, expected to be 7.8x in 2020; and total debt-to-1P is expected to remain above $10boe over the rated horizon of Fitch's base case, when applying the agency's price deck for Brent prices. Fitch estimates the company will be free cash flow positive in 2021 and 2022, and expects the company to allocate all free cash flow to repay the balance of its revolver in entirety by 2022, materially improving gross leverage to 1.7x in YE 2022. KEY RATING DRIVERS High Leverage Profile: Fitch expects Gran Tierra will allocate FCF in 2021 and 2022 to repay its revolver. Fitch assumes the company will repay $60 million of debt in 2021 followed by full repayment of its revolver in 2022, resulting in a total debt of $600 million in YE 2021 and gross leverage, defined as Total Debt to EBITDA, of 2.9x in 2021 and 1.7x in 2022. The estimates assume Fitch's price deck for Brent of $45bbl in 2021 and $53bbl in 2022. Weak Liquidity and Tight Debt Service Coverage: Fitch believes that GTE has weak liquidity and tight debt service coverage. As of June 30, 2020, GTE reported $17 million in cash with $18 million available on its newly renegotiated $225 million revolver credit facility that matures in 2022. Fitch estimates EBITDA to interest expense will be 2.0x in 2020 and improve in 2021 to 4.9x, when applying Fitch's price deck. GTE does not have any major maturities until 2022, which will help the company improve its liquidity profile, but Fitch's rating case assumes the company will use FCF in 2021 and 2020 to repay the facility, so it can strengthen leverage and liquidity profile. Stable Production Profile: Fitch estimates production will average 35,000boed between 2021 and 2023. In 2021, Fitch expects an average production of 34,000boed, a 40% increase from 2020. This increase in production is explained by production re-ramping after wells were shut in 2020 and a total developmental capex, which includes facilities and administrative capex, of $195 million between 2020 and YE 2021, followed by a $105 million in 2022. Fitch estimates Gran Tierra's natural production decline averages 10% per year, resulting in a total of 43 wells needed to be drilled between 2020-2022 in order to maintain a flat production, at an average cost of $3.0 million per well. Weak Reserve Base: Fitch expects GTE will maintain a 1P reserve life below 6.0 years over the rated horizon. As of YE 2019, GTE reported Colombian 1P reserves of 67.6 million boe with nearly 100% of production in oil. GTE has a strong concession life with the earliest material concession expiring in 2033. This concession currently accounts for approximately 50% of production. Other concessions have longer expiration dates. DERIVATION SUMMARY Gran Tierra's credit profile is comparable to other small independent oil and gas companies in the region. The ratings of GeoPark Limited (B+/Stable), Frontera Energy (B-/Rating Watch Negative) and Compania General de Combustibles S.A. (CGC, C) are constrained to the 'B' category, given the inherent operational risks associated with small scale and low diversification of their oil and gas production profiles. Gran Tierra's production size compares favorably to other 'B' rated oil and gas E&P producers, which will constrain its rating to the 'B' category. These peers include Geopark (B+/Stable), Frontera Energy (B-/Negative Watch) and Compania General de Combustibles (CGC, C). Over the rated horizon, Fitch expects Gran Tierra will average 35,000boed, which is less than Frontera at 45,000boed and GeoPark at nearly 50,000 boed by 2020-21, but in line with CGC at below 40,000 boed. Further, Gran Tierra's 1P reserve life is expected to average 5.0 years over the rated horizon, which is lower than peers GeoPark with 10 years, Frontera at seven years, and in line with CGC at five years. Gran Tierra has the highest leverage profile compared to peers. Fitch estimates total debt to EBITDA will be 7.8x in 2020 and improve to 2.9x in 2020 with total debt-to-1P of $11.18boe in 2020. Fitch expects Frontera's gross leverage will be 2.3x in 2020 but average 1.5x over the rated horizon with a total debt- to-1P of nearly $3.00boe in 2020. GeoPark's leverage is expected to increase to 5.3x in 2020 and average 2.5x over the rated horizon with a total debt-to-1P of $4.70 in 2020. CGC's leverage is expected to be 2.2x in 2020 and average 1.5x over the rated horizon and total debt-to-1P expected to be $7.0boe in 2020. KEY ASSUMPTIONS Fitch's Key Assumptions Within its Rating Case for the Issuer -- Fitch's price deck of $35bbl in 2020, $45bbl in 2021, $53bbl in 2022 and $55bbl in the long run; -- Flat $5bbl Vasconia discount to Brent from 2020-2023; -- Production 34,000-35,000boed from 2020 through 2023; -- Operating expenses flat at $12.00boe over the rating horizon; -- Transportation cost of $2.00boe over the rating horizon; -- SG&A cost of $3.00boe over the rating horizon; -- Royalties of 5% in 2020 and flat at 12% thereafter of total production; -- Tax rate of 32% in 2020, 31% in 2021 and 30% in 2022-2023; -- Capex total of $525 million between 2020-2023, an average of $150 million per year; -- Full repayment of credit facility by 2022; -- No acquisitions during 2020-2023; -- No dividends or share repurchases during 2020-2023. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Net production between 35,000-40,000 boepd on a sustained basis, combined with a sustained 1P reserve life at or above five years; and -- Sustained gross leverage of 3.0x or less, including improvement in debt-to-1P reserves of below $10/bbl while maintaining adequate liquidity defined as having a minimum cash balance of $25 million coupled with access of at least $80 million on its revolving credit facility. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Gross Leverage of 5.0x or greater on a sustained basis and/or total debt-to-1P of greater than $12.00boe; -- A deterioration of liquidity to a cash position below $25 million coupled with access of less than $80 million from its revolving credit facility; -- A significant reduction in the reserve replacement ratio could affect GTE's credit quality, given the current proved reserve life of approximately five years. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Weak Liquidity: Fitch believes the company has a weak liquidity profile. The company reported $17 million in cash on June 30, 2020, and $18 million available on its recently revised revolving credit facility to $225 million from $300 million, which matures in 2022. Fitch's rating case estimates Gran Tierra will repay its $207 million total balance on its revolver by YE 2022. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies). Gran Tierra Energy Inc. - Senior unsecured; LT CCC; Affirmed Gran Tierra Energy International Holdings Ltd. - LT IDR CCC; Affirmed - LC LT IDR CCC; Affirmed - Senior unsecured; LT CCC; Affirmed =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Extends Social Aid Programs Until December -------------------------------------------------------------- Dominican Today reports that the social aid programs that the current Government executes to counteract the impact of Covid-19 on vulnerable families such as Comer es Primero, ILAE (Incentive for School Attendance); the gas bonus and the electricity bonus will be extended until the end of the year by the economic authorities headed by President-elect Luis Abinader. The FASE and Pa'Ti programs will continue, although it will be the new president who will inform in his inauguration speech as the new constitutional president if they will keep the same names, according to Dominican Today. The new Minister of the Economy, Miguel Ceara told Listin Diario that Abinader's Government will maintain all social assistance programs until December, because its promise has been that no one will die from lack of health care and lack of a livelihood, the report notes. "It is, said the incoming official, to close the gap, the difference between the income of an average family of four and the average income, which is RD $ 7,000 (US$400)," 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). ============= J A M A I C A ============= JAMAICA: Companies Office Offers Relief to Closed Businesses ------------------------------------------------------------ RJR News reports that with many businesses closing due to the impact of the COVID-19 pandemic, the Companies Office of Jamaica is urging customers to take advantage of its COVID-19 Compliance Relief Initiative to assist entities in being officially removed from the Companies and Business Names Registers. The initiative will accommodate entities that have ceased or will cease operations up to August 31, according to RJR News. Documents must be submitted by August 31. Companies Office of Jamaica Deputy CEO and Director of Operations, Shellie Leon, says the initiative will allow for entities that are no longer operating to officially close to avoid incurring fees, the report adds. As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings revised on April 16, 2020 its outlook on Jamaica to negative from stable. At the same time, S&P affirmed its 'B+' long-term foreign and local currency sovereign credit ratings, its 'B' short-term foreign and local currency sovereign credit ratings on the country, and its 'BB-' transfer and convertibility assessment. The TCR-LA also reported that Fitch Ratings, in April 2020, revised Jamaica's Outlook to Stable from Positive. The Long-Term Foreign-Currency Issuer Default Rating is affirmed at B+. The Outlook change reflects the shock to Jamaica from the coronavirus pandemic, which is expected to lead to a sharp contraction in its main sources of foreign currency revenues: tourism, remittances and alumina exports. =========== M E X I C O =========== GRUPO GICSA: S&P Assigns BB- Global Scale Issuer Credit Rating -------------------------------------------------------------- On Aug. 18, 2020, S&P Global Ratings lowered its national scale ratings to 'mxBBB+' from 'mxA-' on Mexico-based real estate developer and operator Grupo GICSA S.A.B. de C.V. (GICSA). At the same time, S&P downgraded its local notes, GICSA 15, GICSA 17, and GICSA 19, to 'mxBBB+' from 'mxA-'. S&P also removed these ratings from CreditWatch with negative implications, where it placed them on April 7, 2020. Recovery ratings on these notes remain at '3', with an estimated recovery of 50%-90% for bondholders in a hypothetical event of default. Finally, S&P assigned its 'BB-' issuer credit rating to the company on global scale. S&P said, "We downgraded GICSA on higher-than-expected leverage and growing risk from the COVID-19 outbreak. Additionally, we placed the ratings on CreditWatch negative, reflecting short-term uncertainties over the company's revenue, EBITDA, and cash flows. As we had expected, during most of the second quarter of 2020, lockdown measures severely affected GICSA's tenants, although they have been gradually reopening since June. As of this report's date, only one shopping center remains closed, while the rest of the retail portfolio has about 60% of gross leasable area (GLA) open since July, while office GLA never closed. However, we still expect business uncertainty ahead for GICSA. This is because of the ongoing recession in Mexico that will likely reduce consumption of discretionary products, along with lower traffic in shopping malls as local governments impose strict sanitary measures. Moreover, as the pandemic continue to spread across the country, we believe that downside risks prevail given that local governments could reintroduce lockdown measures. In our view, if the company's tenants don't normalize their operations, GICSA's cash flows and liquidity could be jeopardized. GICSA reported a single-digit drop in revenue and EBITDA (quarter-on-quarter) during the second quarter of 2020, maintaining gross debt to EBITDA in the 7.5x-9.5x range. However, the company's cash balance plummeted amid lower revenue and greater working capital outflows related to rent payment deferrals, payments to suppliers, debt repurchase, and other factors despite a sharp reduction in operating and capital expenditures." Although the company implemented several measures to contain the effects from lockdowns and support its tenants in the past months, its reported cash outflows in the second quarter 2020 were significant, reducing its unrestricted cash balance and short-term investments to about MXN580 million from MXN1.6 billion in March 30, 2020. This reduction is partly explained by rent payment deferrals and lower non-rental revenue, which offset the lower operating and one-off expenses, related to a repayment of the MXN500 million GICSA 19 notes and cancelation of hedge contracts for about MXN164 million. Given that a majority of its tenants reopened in the past months, the company's cash flows have gradually improved. However, substantial risks of a longer erosion in consumption of non-essential goods remain. About half of the company's rental income comes from apparel stores, and entertainment and restaurant chains. S&P said, "We currently estimate that GICSA's cash flows will improve in the second half of 2020, reflected in relatively higher rent collections, as deferrals on retail tenants are phased out and office tenants continue to meet their obligations. However, we will continue to monitor the dehow the pandemic evolves and how it impacts consumption. In our view, the pandemic and recession could have a long-lasting effect on GICSA's occupancy rates, credit metrics, and liquidity position." NEMAK SAB: Moody's Affirms CFR at Ba1, Outlook Neg. --------------------------------------------------- Moody's Investors Service affirmed Nemak, S.A.B. de C.V.'s Ba1 corporate family and senior unsecured ratings. The outlook is negative. This rating action follows Nemak's parent company, Alfa, S.A.B. de C.V. (Alfa; Baa3 stable)'s, announcement that its shareholders approved the spin-off of Nemak. RATINGS RATIONALE Nemak's Ba1 ratings incorporate its weakened credit metrics as a consequence of the coronavirus pandemic that hurt the global automotive industry. The ratings also reflect the company's sales concentration with the top three US automakers, which account for 48% of its volumes in North America, and its product focus into three main segments with the same demand drivers are additional rating constraints. On the other hand, the ratings continue to reflect Nemak's leading position in the aluminum engine blocks and cylinder head markets, as well as its growing structural and electric vehicle component business. The ratings consider the company's status as the sole supplier for about 90% of its volumes, its strong technology and innovation capabilities, and the solid relationship with many of the major global automakers. Furthermore, the action incorporates its assessment of Nemak's ability to operate independently without the financial or operating support from Alfa following its spin-off. While Alfa's potential financial support to Nemak will be lost with the spin-off, and direct support from Nemak's shareholders could be more difficult, Moody's considers that lower dividend payout will partly mitigate this risk while supporting higher free cash flow generation. Over the last 6 years, Nemak has upstreamed dividends to Alfa totaling $557 million, contributing with around 30% of all the dividends received by Alfa in the same period of time. Following the spin-off, Nemak dividend payout will decline substantially. Moody's estimates Nemak will not pay dividends neither in 2H20 nor in 2021 and will pay around $50 million per year from 2022 and beyond; down from around $170 million and $125 million paid by Nemak in 2017-2018 and 2019, respectively. Additionally, Nemak's strong operation, adequate business model and experienced senior management team also mitigates this risk. Nemak's operation has strengthened since the 2008-09 financial crisis when it last received financial support from Alfa. Stronger earnings led Nemak to generate strong cash from operations since 2010 and positive free cash flow from 2010 to 2019. Profitability has also improved since then with EBITDA/Equivalent unit increasing 27% from $11 in 2010 to $14 in 2019. In addition, Nemak has operated independently from its parent company and has its own committed and advised lines of credit to support its liquidity. Strong corporate governance practices should remain after the spin-off as Nemak follows the Code of Best Corporate Practices set by the Mexican stock exchange and has its own financial policies including a maximum net leverage ratio of 2.5x and a prudent dividend policy to maintain its leverage policy, amongst others. Nemak's operations are closely linked to the performance of the automotive industry in North America and Europe, where about 90% of its revenues are derived. Moody's has a negative outlook for the global automotive manufacturing industry. Moody's forecasts light vehicle sales in the US to drop by 25% in 2020 and to recover posting a 16.2% growth in 2021. Moody's expects Western European auto unit sales to plunge 30% in 2020 amid a projected 6.5% contraction in euro area GDP and to rise 17.5% in 2021. While auto production has restarted in the region, dealerships in some countries remain closed and demand is likely to remain very weak. Accordingly, Moody's expects Nemak's revenues and EBITDA to decline in 2020 and recover in 2021, in tandem with the automobile industry and economy recovery. The company has done efforts to reduce its operating costs in face of the coronavirus outbreak which will benefit its profitability going forward. Moody's estimates Nemak's EBITDA margin will be around 13.5% in 2020 and improve beyond its historical levels towards 15%-16% in 2021-22. The company's credit metrics and EBITDA were hurt by the temporary shutdowns in light vehicle production caused by the coronavirus outbreak. In addition, higher debt used to support the company's liquidity during the plants shut down led to an increase in Nemak's adjusted debt/EBITDA to 9.3x as of June 30, 2020. Going forward, Moody's estimates Nemak will reduce its adj. debt/EBITDA below 3.5x by the end of 2021 from higher EBITDA generation and debt reduction. Interest coverage will improve as well with adj. EBITDA/Interest expense over 6.5 times in 2021; up from an expected 5x in 2020. Nemak has adequate liquidity, with cash on hand of $633 million as of June 30, 2020 that could cover by 1.3x its short-term debt. Like many other companies in the region, in March Nemak withdrew $640 million from its committed and advised credit facilities to further support its liquidity. In addition, the company cut down its dividend payments to $13 million in 2020 and Moody's expects them to be zero in 2021; down from an annual average of $155 million in 2017-19. Nemak has a comfortable long-term debt amortization profile with no mayor indebtedness due until 2024 The negative outlook reflects Nemak's weakened credit metrics caused by the coronavirus outbreak that hurt the automobile industry worldwide. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The rating could be downgraded if the company's credit metrics do not improve over the next 18 months or if there is greater than expected decline on automobile sales that hurt Nemak's operation or liquidity. Failure to delever the company with adj. debt/EBITDA declining towards 3.0 times or a deterioration in liquidity could lead to a downgrade. The ratings could be upgraded if the company proves able to grow its topline, while maintaining strong credit metrics in a softening industry environment with Moody's adj. debt/EBITDA below 2.5 times and adj. EBITA/Interest expense over 4.0 times. To be considered for an upgrade, the company would also need to improve its profitability and maintain its robust liquidity and cash generation. The principal methodology used in these ratings was Automotive Supplier Methodology published in January 2020. Nemak, S.A.B. de C.V. produces aluminum cylinder heads, engine blocks, transmission components, and structural and electric vehicle components for light vehicles manufactured by more than 50 customers worldwide, with 60% of its sales volumes coming from the Big Three US carmakers (Ford Motor Company, General Motors Company and Fiat Chrysler Automobiles N.V.). Nemak's products are sold mainly in North America and Europe, which account for 91% of its consolidated revenue. Nemak reported revenues of $3.1 billion over the twelve months ended June 30, 2020. UNITED MEXICAN: Egan-Jones Lowers Senior Unsecured Ratings to B- ---------------------------------------------------------------- Egan-Jones Ratings Company, on August 13, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by United Mexican States to B- from B. Mexico, officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatemala, Belize, and the Caribbean Sea; and to the east by the Gulf of Mexico. =========== P A N A M A =========== ENA NORTE TRUST: S&P Affirms BB+ Rating on $600MM Notes ------------------------------------------------------- On Aug. 18, 2020, S&P Global Ratings affirmed its 'BB+' issue-level rating on the Panamanian toll road ENA Norte Trust's (ENA Norte) $600 million notes, and removed them from CreditWatch with negative implications. S&P said, "Traffic levels have remained slightly better than expected since May--on average about 65% lower than in 2019--while we previously projected a traffic drop of up to 80%. However, and due to a new wave of coronavirus infections, the government decided to postpone part of the implementation of stage III of the de-confinement plan, which includes relaxing the lockdown of additional sectors. Those sectors finally resumed operations on Aug. 17, 2020, while we previously expected them to start operating at beginning of July. Moreover, we now expect the following stages (IV to VI) to also be postponed. Thus, we now expect traffic levels in 2020 to recover more slowly than what we forecasted back in May, and a yearly drop of close to 45%, rather than our previous 40%, leading to annual revenues this year of $45 million-$50 million, versus the previous $50 million-$55 million. "In the past four months, ENA Norte demonstrated more flexibility than what we previously anticipated to manage its cost structure, particularly operating expenses, which in the first half of the year decreased about $700,000 mainly due to lower billing costs of Maxipistas (the operator). "In our updated base case, we included cost savings of about $1 million, which remains aligned to management's expectations. Still, these reductions won't fully offset the lower revenues for 2020, leading to a minimum and average DSCR of 1.40x and 9.00x, respectively, while we previously forecasted a minimum and average DSCR on a rolling twelve month basis of 1.60x and 9.00x, respectively. "The project was able to pay the quarterly debt service due in July 2020 in full with cash proceeds even when traffic levels reached historical lows, with an average of 1.5 million vehicles on a monthly basis. More importantly, we don't forecast ENA Norte to use reserve accounts in the near future, which we view as a credit positive under this context, particularly compared to other peers in the same industry that will have to use those." Environmental, social, and governance (ESG) factors relevant to the rating action: -- Health and safety ENA SUR TRUST: S&P Cuts Class A $170MM Notes Rating to B -------------------------------------------------------- On Aug. 18, 2020, S&P Global Ratings lowered its issue-level rating on Panamanian toll road ENA Sur Trust's (ENA Sur) Class A $170 million notes to 'B' from 'B+'. S&P said, "Traffic levels have remained slightly better than expected since May 2020--on average about 70% lower than in 2019--while we previously projected a traffic drop of 85%. However, in light of a new wave of coronavirus infections, the government decided to postpone part of the implementation of stage III of the de-confinement plan, which includes relaxing the lockdown of additional sectors. Those sectors (particularly retail and distribution sector) finally resumed operations on Aug. 17, 2020, while we previously expected them to start operating at the beginning of July. Moreover, we now expect the following stages (IV to VI) will also be postponed. Thus, we now expect a traffic drop close to 45% in 2020, rather than our previous 40%, leading to annual revenues in 2020 of $35 million-$40 million, versus the previous $40 million-$45 million. "Moreover, we now project a total annual reduction in costs of 25% (or $4 million) in 2020compared with our previous expectations, which includes lower billing costs of the operator Maxipista de Panama S.A. (Maxipista; not rated), taxes and other minor maintenance costs of about $2 million, and the postponement of about $2 million of capex. Still, the lower costs won't fully offset the expected lower revenues for 2020. Consequently, we now expect a minimum DSCR of 0.95x, versus our previous expectation of 1.25x, and ENA Sur's use of the DSRA (which as of the date of this report accounted for about $9.6 million) in August and November to cover cash shortfalls of $2 million and $1 million, respectively. "Although its financial situation is fragile, we still believe ENA Sur will replenish the DSRA by February 2021, thus avoiding the event of default associated with the failure to maintain a fully funded DSRA for six consecutive months. In addition, if traffic underperforms our expectations, the project still has some flexibility to postpone or reduce further a portion of its costs, totaling close to $4 million, which we positively captured in our analysis." Environmental, social, and governance (ESG) factors relevant to the rating action: -- Health and safety. ======= P E R U ======= NAUTILUS INKIA: Fitch Affirms BB LongTerm IDR, Outlook Negative --------------------------------------------------------------- Fitch Ratings has affirmed Nautilus Inkia Holdings LLC's (Inkia) Long-Term Foreign Currency and Local Currency Issuer Default Ratings (IDRs) at 'BB'. The Rating Outlook is Negative. The rating action affects the USD600 million senior unsecured notes rated at 'BB' due in 2027. The Negative Outlook reflects Fitch's view that Inkia is yet to complete liability management opportunities to deleverage the company towards a capital structure that is more aligned with its current rating. Fitch views as positive last years' removal of the bridge loan used to acquire the minority stakes in Kallpa in 2018, from Inkia's balance sheet to that of its parent Nautilus Energy Partners LLC, as it adds flexibility to debt service. Nevertheless, this initiative in itself is insufficient to lead to leverage metrics below 5.0x on a sustained basis, which is one of its rating triggers for a negative rating action. The Outlook Negative could be removed with sustained financial discipline initiatives. This could be achieved by material debt repayment in 2021 as well as commitment from its ultimate shareholder, I Squared Capital Advisors, LLC, to limit cash outflows and sustain leverage metrics below 5.0x. Inkia's ratings reflect its consolidated credit profile strengthened by its main cash flow contributor and subsidiary, Kallpa, partially offset by other subsidiaries' weaker credit profiles, its historical debt acquisitive strategy and pressured cash outflows from its shareholder. KEY RATING DRIVERS Pressured Capital Structure: Fitch expects Inkia's leverage to be pressured in the short-term peaking at 5.4x in 2020 as its main subsidiary, Kallpa, pursues an investment cycle funded by debt with continued cash flow distribution pressures. Leverage should come down to 4.8x by 2022 assuming the company reduces around USD350 million of debt in 2021 and the additional capacity in Las Flores contributes to improved cash flow generation. Inkia's consolidated financial profile places it at the boundaries of Fitch's sensitivities for a 'BB' rating. The majority of the groups' debt are bonds issued to replace bank debt related to the company's project finance and acquisitions. Debt Structurally Subordinated: Inkia's holding company debt remains structurally subordinated to operating company debt although management has effectively eliminated onerous cash trapping mechanisms that could negatively affect cash flow predictability to the holding company. Inkia's cash flow depends on cash distributions received from subsidiaries and associated companies, which totalled USD342 million in 2019 resulting in holdco debt over cash flow of 1.7x. Total debt at the subsidiary level amounted to approximately USD2.2 billion, or 79% of total consolidated debt as of 2019. Neutral to Negative FCF Expectations: Fitch expects Inkia will report neutral to negative FCF in the medium term as a result of expansionary capex in Peru and significant cash outflow to I Squared Capital. Average capex is expected at USD125 million per year. The majority of which includes the Las Flores plant expansion and Kallpa upgrade, totalling USD165 million and maintenance capex in the distribution business, Energuate Trust (BB-/Stable). Additionally, Fitch expects significant distributions to shareholders averaging over USD200 million in the next four years. Historically Aggressive Shareholder Strategy: Inkia has historically perceived an aggressive growth strategy prioritizing high short-term dividend flows over capitalizing on deleveraging opportunities. Inkia had a Negative Outlook from 2014-2016, largely due to the aggressive strategy of its former owner, whose family-owned organizational structure and lack of financial discipline resulted in significant and unexpected cash outflows from Inkia when its financial profile was weak. Geographic and Business Diversification: Inkia is focused on diversifying its energy asset base in Latin American markets, where overall and per capita energy consumption has a higher growth potential than developed markets, which adds risk to the consolidated profile. Inkia adopted an aggressive expansion strategy during the last few years to expand its portfolio. It is estimated that around 65% of its 2019 EBITDA came from investment-grade countries, mainly from Peru, at 60%, while the balance came from high-yield countries. DERIVATION SUMMARY Inkia presents a generally weaker capital structure relative to its large, multi-asset energy peers in Latin America. Its nearest peer in this group is Chilean generator AES Gener S.A. (BBB-/Stable), which is also in a deleveraging trajectory with expected leverage at 3.6x by 2021. Colbun S.A. and Engie Energia Chile S.A. (BBB/Positive) operate with a stronger capital structure than Inkia, with leverage consistently at or below 2.0x, comfortably within the investment-grade rating category. In Peru, Fitch rates Kallpa, Orazul Energy Peru S.A. (BB/Rating Watch Positive) and Fenix Power Peru S.A. (BBB-/Stable). Inkia is rated two notches below Kallpa. Although Inkia has a more diversified asset base, it has greater exposure to countries with weak operating environments, indicating higher business risk. Kallpa has a diversified asset base in Peru and expected lower leverage through the rating horizon, peaking at 4.5x during Las Flores construction. Inkia has the capacity to reach leverage below 5.0x after completion of the investment cycle. Inkia is rated two notches below Fenix. Although Fenix is a single-asset generator with a high proportion of take-or-pay costs, its ratings are buoyed by strong shareholder support from Colbun S.A. (BBB+/Stable). Inkia is rated at the same level as Orazul. Despite Orazul's smaller scale, it benefits from an asset mix with thermal and hydroelectric generation in a strong operating environment. Both companies are expected to report leverage closer to 5.0x through the rating horizon. Orazul's Rating Watch Positive reflects Fitch's expectations that management will execute on liability management by early amortizing the senior unsecured notes and materially deleverage the company's capital structure, to below 4.0x by 2022. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer Include Kallpa Generacion S.A. -- Average PPA prices at USD42/MWh in the next four years; -- Contracted capacity and generation remain at similar levels; -- Spot price rising to around USD12/MWh in 2023; -- Four-year average capex at USD63 million, including Las Flores expansion and Kallpa upgrade of USD165 million; -- Las Flores expansion of 162MW and upgrades to Kallpa (KII and KIII) starts operations by mid- 2022; -- Average annual dividends of USD140 million while maintaining minimum cash balance of USD20 million. ENERGUATE Trust -- Energy losses of 19.5% in 2020, trending down to 18.0% in 2022; -- Approximately 55,000 new customers per year; -- 2020 inflation of 2% and medium-term inflation of around 3%, in line with historical figures; -- Minimal FX fluctuation, reflecting Guatemala's managed float; -- Dividends paid on cash above USD8 million in 2021 and after; -- Capex of around USD43 million in 2020 and USD50 million annually in the medium term. Nautilus Inkia Holdings -- Annual dividend payment of USD204 million over next four years; -- Annual capex of USD125 million over next four years; -- Debt reduction of around USD350 million in 2021. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A positive resolution of the Negative Outlook could be considered as a result of accelerated debt reduction leading to total debt to EBITDA below 5.0x on a sustained basis; -- Although unlikely in the short to medium term, a positive rating action could be possible from conservative cash flow management, leading to debt/EBITDA of 4.0x or below on a sustained basis while moving the portfolio of assets to investment grade countries. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Consolidated gross leverage remains above 5.0x through the rating horizon following additional investment opportunities undertaken without an adequate amount of additional equity; -- Reduced cash flow generation due to adverse regulatory issues, deterioration of its contractual position, and/or deteriorating operating conditions for the distribution company business; -- An aggressive dividend policy; -- Inkia's asset portfolio becomes more concentrated in countries with high political and economic risk. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Inkia's liquidity is adequate as a result of strong cash flow received from subsidiaries, adequate cash on hand, a comfortable amortization profile and adequate access to the debt capital markets. As of March 31, 2020, the company held approximately USD336 million of readily available cash mostly in hard currency in United States account. The higher than usual cash on hands is part of the company's strategy to improve liquidity during the uncertainties brought by the pandemic scenario. Dividend payments are expected in the second half of 2020 at an estimated amount of USD213 million. Inkia's senior unsecured notes due 2027 are structurally subordinated to all existing and future indebtedness and other liabilities of the company's subsidiaries. In addition, the 2027 notes are effectively subordinated to all existing and future secured indebtedness of the company and any subsidiary to the extent of the value of the assets securing such indebtedness. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS Inkia's ratings are directly linked to those of Kallpa Generacion S.A. given the material contribution of Kallpa to Inkia's cash flow. ESG CONSIDERATIONS The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies). ===================== P U E R T O R I C O ===================== ADVANCE PAIN: Seeks to Tap Tamarez CPA as Accountant ---------------------------------------------------- Advance Pain Management and Rehabilitation Institute, Inc. and JG & RM Realty, Inc. seek approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Tamarez CPA, LLC as its accountant. The firm will provide these services: (a) Assist in the reconciliation of financial information that is needed to prepare Debtors' monthly operating reports; (b) Assist in the reconciliation and clarification of proofs of claim filed and amount due to creditors; (c) Provide general accounting and tax services to prepare year-end reports and income tax returns; and (d) Assist in the preparation of supporting documents for Debtors' Chapter 11 reorganization plan. The hourly rates for the firm's professionals are as follows: Albert Tamarez-Vasquez, CPA CIRA $150 CPA Supervisor $100 Senior Accountant $85 Staff Accountant $65 These hourly rates do not include the sales and use taxes as imposed by Puerto Rico Act 72 of May 2015, currently 4 percent of the billed hour. In addition, Tamarez CPA will be reimbursed for work-related expenses incurred. The firm received a retainer in the amount of $5,000 from Debtor. Albert Tamarez-Vasquez, the firm's accountant who will be providing the services, disclosed in court filings that he is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Albert Tamarez-Vasquez, CPA, CIRA Tamarez CPA, LLC PO Box 194136 San Juan, PR 00919-4136 Telephone: (787) 795-2855 Facsimile: (787) 200-7912 Email: atamarez@tamarezcpa.com About Advance Pain Management and Rehabilitation Institute Advance Pain Management and Rehabilitation Institute, Inc. owns and operates ambulatory health care facilities. On July 7, 2019, Advance Pain Management and Rehabilitation Institute and JG & RM Realty, Inc. filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Lead Case No. 19-03941). At the time of the filing, Advance Pain Management and Rehabilitation disclosed total assets of $69,818 and total liabilities of $122,108 while JG & RM disclosed total assets of $1,291,294 and total liabilities of $1,749,258. Judge Enrique S. Lamoutte Inclan oversees the cases. Debtors have tapped Isabel M. Fullana, Esq., at Garcia-Arregui & Fullana, PSC, as their legal counsel and Tamarez CPA, LLC as their accountant. ASCENA RETAIL: Russell R. Johnson Represents Utility Companies -------------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the Law Firm of Russell R. Johnson III, PLC submitted a verified statement to disclose that it is representing the utility companies in the Chapter 11 cases of Ascena Retail Group, Inc., et al. The names and addresses of the Utilities represented by the Firm are: a. Appalachian Power Company Ohio Power Company Kentucky Power Company Attn: Dwight C. Snowden American Electric Power 1 Riverside Plaza, 13th Floor Columbus, Ohio 43215 b. Arizona Public Service Company Attn: Gisel Morales 2043 W. Cheryl Dr., Bldg. M Mail Station 3209 Phoenix, Arizona 85021-1915 c. Consolidated Edison Company of New York, Inc. Attn: Rosalie Zuckerman Con Edison Law Department, Attn: Bankruptcy 18th Floor 4 Irving Place New York, New York 10003 d. Orange and Rockland Utilities, Inc. Attn: Jennifer Woehr1e 390 W. Route 59 Spring Valley, New York 10977 e. Constellation NewEnergy, Inc. Attn: C. Bradley Burton Credit Analyst Constellation Energy 1310 Point Street, l2t Floor Baltimore, MD 21231 f. Florida Power & Light Company Gulf Power Company Attn: Gloria Lopez Revenue Recovery Department RRD/LFO 4200 W. Flagler St. Coral Gables, Florida 33134 g. Georgia Power Company Attn: Daundra Fletcher 2500 Patrick Henry Parkway McDonough, GA 30253 h. The Connecticut Light & Power Company Yankee Gas Services Company NStar Electric Company NStar Gas Company NStar Electric Company, Western Massachusetts Public Service Company of New Hampshire Attn: Honor S. Heath, Esq. Eversource Energy 107 Selden Street Berlin, CT 06037 i. Atlantic City Electric Company Baltimore Gas and Electric Company Commonwealth Edison Company Delmarva Power & Light Company PECO Energy Company The Potomac Electric Power Company Attn: Lynn R. Zack, Esq. Assistant General Counsel Exelon Corporation 2301 Market Street, S23-1 Philadelphia, PA 19103 j. New York State Electric and Gas Corporation Attn: Kelly Potter James A. Carrigg Center Bankruptcy Department 18 Link Drive Binghamton, NY 13904 k. Rochester Gas and Electric Corporation Attn: Patricia Cotton 89 East Avenue Rochester, NY 14649 l. Central Maine Power Company Attn: Richard P. Hevey, Esq. Senior Counsel 83 Edison Drive Augusta, Maine 04336 m. Sacramento Municipal Utilities District Attn: Randall J. Hakes, Esq. 6301 S Street, Mailstop A311 Sacramento, California 95817 n. Salt River Project Attn: Breanna Holmes/ISB 232 2727 E. Washington St, P.O. Box 52025 Phoenix, AZ 85072-2025 o. San Diego Gas & Electric Company Attn: Kelli S. Davenport, Bankruptcy Specialist 8326 Century Park Court San Diego, CA 92123 p. Tampa Electric Company TECO Peoples Gas System Attn: Barbara Taulton FRP, CAP Florida Registered Paralegal Tampa Electric Company 702 N. Franklin Street Tampa, FL 33602 q. Tucson Electric Power Company Attn: Adam D. Melton, Esq. Senior Attorney - Litigation 88 E. Broadway Blvd. Tucson, AZ 85701 r. Virginia Electric and Power Company d/b/a Dominion Energy Virginia Attn: Sherry Ward 600 East Canal Street, 10th floor Richmond, VA 23219 s. The East Ohio Gas Company d/b/a Dominion East Ohio - $1,429 Attn: Marcy Boni 2100 Eastwood Avenue Akron, Ohio 44305 t. PSEG Long Island Attn: Kevin McKiernan 15 Park Drive Melville, New York 11747 u. The Cleveland Electric Illuminating Company Ohio Edison Company Monongahela Power Company Metropolitan Edison Company Jersey Central Power & Light Company Toledo Edison Company Pennsylvania Electric Company West Penn Power Company Pennsylvania Power Company Potomac Edison Company Attn: Kathy M. Hofacre FirstEnergy Corp. 76 S. Main St., A-GO-15 Akron, OH 44308 v. Boston Gas Company Colonial Gas Cape Cold KeySpan Energy Delivery Long Island KeySpan Energy Delivery New York Massachusetts Electric Company Narragansett Electric Company Niagara Mohawk Power Corporation Attn: Vicki Piazza, D-1 National Grid 300 Erie Boulevard West Syracuse, NY 13202 w. Public Service Electric and Gas Company Attn: Matthew Cooney 80 Park Plaza-Tl5 Newark, New Jersey 07102 x. Oklahoma Gas and Electric Company Attn: Jennifer Castillo, Esq. Sr. Attorney | OGE Legal Department 321 N. Harvey Ave. MC 1208 Oklahoma City, OK 73102 y. AEP Energy, Inc. Attn: Peter M. Kolch, Esq. Associate General Counsel 225 West Wacker Drive, Suite 600 Chicago, IL 60606 The nature and the amount of claims (interests) of the Utilities, and the times of acquisition thereof are as follows: a. The following Utilities have unsecured claims against the above-referenced Debtors arising from prepetition utility usage: Appalachian Power Company, Ohio Power Company and Kentucky Power Company, Arizona Public Service Company, Consolidated Edison Company of New York, Inc., Constellation NewEnergy, Inc., Georgia Power Company, Connecticut Light & Power Company, Yankee Gas Services Company, NStar Electric Company, Western Massachusetts, Public Service Company of New Hampshire, NStar Electric Company, NStar Gas Company, Atlantic City Electric Company, Baltimore Gas and Electric Company, Delmarva Power & Light Company, The Potomac Electric Power Company, New York State Electric and Gas Corporation, Rochester Gas & Electric Corporation, Central Maine Power Company, Sacramento Municipal Utility District, TECO Peoples Gas System, Virginia Electric and Power Company d/b/a Dominion Energy Virginia, The Dominion East Ohio Gas Company d/b/a Dominion East Ohio, PSEG Long Island, The Cleveland Electric Illuminating Company, Ohio Edison Company, Monongahela Power Company, Metropolitan Edison Company, Jersey Central Power & Light Company, Toledo Edison Company, Pennsylvania Electric Company, West Perm Power Company, Pennsylvania Power Company, Potomac Edison Company, Florida Power & Light Company, Gulf Power Company, Boston Gas Company, Colonial Gas Cape Cod, KeySpan Energy Delivery Long Island, Massachusetts Electric Company, Narragansett Electric Company, Niagara Mohawk Power Corporation, San Diego Gas and Electric Company, Orange and Rockland Utilities, Inc., Public Service Electric and Gas Company, AEP Energy, Inc. and Oklahoma Gas and Electric Company. b. Salt River Project, KeySpan Energy Delivery New York, Commonwealth Edison Company, PECO Energy Company, Tampa Electric Company and Tucson Electric Power Company held prepetition deposits that secured all prepetition debt. c. For more information regarding the claims and interests of the Utilities in these jointly-administered cases, refer to the Objection Of Certain Utility Companies To the Debtors' Motion For Entry of Interim and Final Orders (I) Approving the Debtors' Proposed Adequate Assurance of Payment For Future Utility Services, (II) Prohibiting Utility Companies From Altering, Refusing, or Discontinuing Services, (III) Approving the Debtors' Proposed Procedure For Resolving Additional Assurance Requests, and (IV) Granting Related Relief (Docket No. 194) filed in the above-captioned, jointly-administered, bankruptcy cases. The Law Firm of Russell R. Johnson III, PLC was retained to represent the foregoing Utilities in July and August 2020. The circumstances and terms and conditions of employment of the Firm by the Companies is protected by the attorney-client privilege and attorney work product doctrine. The Firm can be reached at: Russell R. Johnson III, Esq. LAW FIRM OF RUSSELL R. JOHNSON III, PLC 2258 Wheatlands Drive Manakin-Sabot, VA 23103 Tel: (804) 749-8861 Fax: (804) 749-8862 Email: russell@russelljohnsonlawfirm.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/WFzPu6 About Ascena Retail Group Ascena Retail Group, Inc. (Nasdaq: ASNA) -- http://www.ascenaretail.com/-- is a national specialty retailer offering apparel, shoes, and accessories for women under the Premium Fashion (Ann Taylor, LOFT, and Lou & Grey), Plus Fashion (Lane Bryant, Catherines and Cacique), and Value Fashion (Dressbarn) segments, and for tween girls under the Kids Fashion segment (Justice). Ascena, through its retail brands, operates ecommerce websites and approximately 2,800 stores throughout the United States, Canada, and Puerto Rico. Ascena Retail reported a net loss of $661.4 million for the fiscal year ended Aug. 3, 2019, a net loss of $39.7 million for the year ended Aug. 4, 2018, and a net loss of $1.06 billion for the year ended July 29, 2017. On July 23, 2020, Ascena Retail Group and its affiliates sought Chapter 11 protection (Bankr. E.D. Va. Case No. 20-33113). As of Feb. 1, 2020, Ascena Retail had $13,690,710,379 in assets and $12,516,261,149 in total liabilities. The Hon. Kevin R. Huennekens is the case judge. The Debtors tapped Kirkland & Ellis LLP and Cooley LLP as bankruptcy counsel, Guggenheim Securities, LLC as financial advisor, and Alvarez and Marsal North America, LLC as restructuring advisor. Prime Clerk, LLC is the claims agent. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2020. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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