/raid1/www/Hosts/bankrupt/TCRLA_Public/210721.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, July 21, 2021, Vol. 22, No. 139
Headlines
A R G E N T I N A
ARGENTINA: IMF to Address Economic & Payment Challenges
CORREO ARGENTINO: Court Suspends Bankruptcy Proceedings
B A H A M A S
FYRE FESTIVAL: Payout Cut for Ticket Holders of Failed Festival
B R A Z I L
COMPANHIA ENERGETICA: Fitch Affirms 'BB' LT Foreign Currency IDR
SAMARCO MINERACAO: Creditors Oppose Restructuring Plan
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Gets $115M IDB Loan for Digital Connectivity
DOMINICAN REPUBLIC: Inflation From January to June Stands at 4.01%
P U E R T O R I C O
ABAB CORPORATION: Case Summary & 17 Unsecured Creditors
L'OCCITANE INC: August 24 Plan & Disclosure Hearing Set
T R I N I D A D A N D T O B A G O
NATIONAL GAS: Young Blames UNC for $2.1 Billion Loss in FY2020
- - - - -
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A R G E N T I N A
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ARGENTINA: IMF to Address Economic & Payment Challenges
-------------------------------------------------------
An International Monetary Fund (IMF) team, led by Julie Kozack,
Deputy Director of the Western Hemisphere Department, and Luis
Cubeddu, mission chief for Argentina, met with Argentina's Economy
Minister Martin Guzman and his team on July 8-12 in Venice, Italy,
with the goal of deepening the technical work necessary to develop
an IMF-supported program. The IMF mission team issued the following
statement at the conclusion of the Venice meetings:
"The Argentine authorities and IMF staff held productive meetings
to further advance the technical work towards an IMF-supported
program. The teams discussed the evolution of the global
environment and the COVID-19 pandemic and their implications for
Argentina's macroeconomic framework. Discussions focused on
policies to strengthen the recovery, economic stability, and job
creation. In particular, progress was made in identifying policy
options to develop the domestic capital market, mobilize domestic
revenue, and strengthen Argentina's external resilience.
"The IMF team and the Argentine authorities will continue working
together in the period ahead with a view to further deepening their
understandings in these key areas. Our goal is to support Argentina
as it durably addresses its economic and balance of payment
challenges."
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.
Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.
Moody's credit rating for Argentina was last set at Ca on Sept. 28,
2020. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement. Formal negotiations on the new financing
began in November 2020. Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.
CORREO ARGENTINO: Court Suspends Bankruptcy Proceedings
-------------------------------------------------------
Rio Times Online reports that the Argentinian court that declared
the bankruptcy of Correo Argentino SA, belonging to the family of
ex-Argentine president Mauricio Macri (2015-2019), decided to
provisionally suspend proceedings, after the company appealed the
measure.
The ruling was issued by Commercial Court 6, headed by Judge Marta
Cirulli who granted the appeal filed by Correo Argentino SA and and
granted "suspensive force" of all proceedings arising from the
bankruptcy, according to Rio Times Online.
In the ruling Cirulli stated that she was "forced" to "comply" with
a previous decision of the National Court of Appeals in Commercial
Matters in relation to the company owned by ex-President Macri's
children, the report notes.
=============
B A H A M A S
=============
FYRE FESTIVAL: Payout Cut for Ticket Holders of Failed Festival
---------------------------------------------------------------
RJR News reports that ticket holders to the 2017 Fyre Festival
fiasco have seen their proposed payout slashed.
According to court papers filed in New York, they are set to
receive just $281 each, the report notes.
That amount falls short of the April settlement reached in a US
federal court, which concluded they could each have had up to
$7,220 returned, according to RJR News.
Lawyers have struggled to recoup money from acts and models who
promoted the festival that fell apart, the report relays.
Organisers of the 2017 Fyre Festival had promised a luxury
two-weekend Bahamas getaway, with tickets costing upwards of
$1,200. But those who arrived before the event was cancelled saw
what looked more like a camp than a luxury event, the report
discloses.
===========
B R A Z I L
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COMPANHIA ENERGETICA: Fitch Affirms 'BB' LT Foreign Currency IDR
----------------------------------------------------------------
Fitch Ratings has affirmed Companhia Energetica de Sao Paulo's
(CESP) Long-Term (LT) Foreign Currency (FC) and Local Currency (LC)
Issuer Default Ratings (IDRs) at 'BB' and 'BB+', respectively.
Fitch has also affirmed the LT National Scale Rating at 'AAA(bra)'
for CESP and its senior unsecured debentures issuance. The Outlook
for the LT FC IDR is Negative, while the Outlook for both the LT LC
IDR and the National Scale Rating is Stable.
CESP's LT LC IDR and National Scale Rating reflect its moderate to
strong business profile within the power generation segment in
Brazil, despite its asset concentration. The company should remain
with a conservative capital structure, strong liquidity position
and lengthened debt maturity schedule even considering challenging
hydrological conditions in 2021 and 2022. CESP's LT FC IDR is
constrained by Brazil's Country Ceiling of 'BB' and its Negative
Outlook follows Brazil's 'BB-'/Negative sovereign rating.
KEY RATING DRIVERS
Robustness to Cope with Water Crisis: CESP has a strong balance
sheet to absorb the effects from worsening hydrological conditions
in Brazil, despite being more affected than its average peers. CESP
depends solely on hydro generation and carries energy deficits
inherited from a previous administration. Assuming a 0.75 average
generation scaling factor (GSF) in 2021 and 0.80 in 2022, purchases
are estimated at 375 aMW and 160 aMW, respectively, including 74
aMW in the spot market in 2022.
Average purchase prices are estimated at BRL235/MWh and BRL209/MWh,
resulting in a total cost of BRL1.0 billion in 2021-2022. These
figures, which do not include the trading business, imply a BRL630
million loss compared with previous estimates, when GSF was assumed
to be flat at 0.84. Lower assumptions for GSF will likely decrease
EBITDA to BRL842 million in 2021 and BRL1.0 billion in 2022, from
BRL1.2 billion in 2020.
Leverage Remains Conservative: Effects from both the worsening
hydrological environment and revised contingent cash flows are
manageable due to CESP's historical low leverage and high financial
flexibility. The company should present total debt/EBITDA and net
debt/EBITDA below 2.5x and 2.0x, respectively, during the rating
horizon, with gross leverage at 2.2x and net leverage at 1.8x in
2021. The company ended 1Q21 with total debt of BRL1.8 billion,
comprised of two debentures issuances averaging a seven-year term,
with a comfortable amortization schedule.
Pre-Dividends FCF Still Strong: CESP's cash flow from operations
(CFFO) should remain robust even considering the worsening in the
hydrological scenario, with some reduction compensated with lower
dividends distributions. The base case for the rating considers
CFFO of BRL460 million in 2021 and negative BRL252 million in 2022,
in case a single tax payment of BRL630 million occurs.
As the capex for CESP is very low, dividends determine the
company's FCF. Fitch forecasts average negative FCF of BRL633
million in 2021-2022, considering total dividend payments of
BRL1.45 billion in the same period. Compared with previous
estimates, pre-dividend FCF is expected to decline to BRL1.3
billion in 2021-2022, while dividends fall by BRL1.8 billion,
reflecting the company's flexibility.
High Quality Sales Portfolio: Sales to energy generation and
distribution companies present low counterparty risk and account
for around 60% and 20%, respectively, of total contracted sales to
be settled until 2024. This compensates for some concentration that
might exist in some clients in the free market. The growth of the
trading business will facilitate client diversification but is
expected to generate negative margins of BRL33 million in 2021 and
BRL14 million in 2022.
Sales volumes should reach 1.1 aGW in 2021 and 917 aMW in 2022 at
average prices of BRL236/MWh and BRL252/MWh, respectively. The base
case scenario considers declining prices as of 2023 for both
existing and new contracts to be negotiated in the free market,
with sales to the regulated market adjusted by inflation.
Asset Concentration: CESP compares negatively with peers in terms
of asset base and diversification. HPP Porto Primavera accounts for
95% of the company's total assured energy (935aMW) and is expected
to become the company's single asset by May 2022. This is after
termination of HPP Paraibuna's concession, assuming the company
will accept an estimated 15-month extension based on Law 14.052/20,
for which there will not be cash disbursement. Despite higher risks
associated to asset concentration, management's strategy in
focusing on derisking prior to expansion is credit-positive.
Negative Developments on Contingencies: Fitch revised estimates of
cash inflows arising from the legal dispute concerning HPP Tres
Irmaos' indemnification. The new base case assumes a first
installment in 2023, rather than 2021, from BRL3.5 billion to be
received until 2030, SELIC-adjusted. It also adds annual payments
of BRL70 million, as of 2022, to settle the BRL888 million
actuarial deficit that emerged mostly in 2020, due to inflation
adjustment.
Litigations of BRL1.6 billion as of March 2021 will likely consume
around BRL300 million every year in cash settlements. Off-balance
litigations of BRL8.9 billion, of which, 66% relate to claims with
remote loss probability, as deemed by CESP, will continue to pose a
tail risk in the near future. However, the cash effect from
unexpected losses would likely be diluted over several years.
DERIVATION SUMMARY
CESP's LT LC IDR is one notch below the LT LC IDR of Engie Brasil
Energia S.A.'s (Engie BR; BBB-/Negative). Compared to CESP, Engie
BR benefits from a larger scale and more diversified asset base in
the power sector. Engie BR is also better positioned to face the
current water crisis in Brazil, with lower estimated financial
effects. Projections for Engie BR's net leverage are close to
CESP's for 2021-2022, although the former is expanding into
transmission lines and wind farms.
Compared with Transmissora Aliança de Energia Eletrica S.A.
(Taesa, LC IDR BBB-/Negative), the transmission segment presents
lower business risk, with higher revenue predictability and
stronger margins. Taesa also benefits from a diversified assets
portfolio, low leverage and robust liquidity profile.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- GSF: 0.75 in 2021, 0.80 in 2022, 0.85 in 2023 and 0.93 in
2024;
-- Sales volume (aMW): 1,113 in 2021, 917 in 2022 and average 807
in 2022-2023;
-- Weighted average sales price (BRL/MWh): 235 in 2021, 209 in
2022 and average 167 in 2022-2023;
-- Purchase volume (aMW): 375 in 2021, 160 in 2022 and average 11
in 2023-2024;
-- Weighted average purchase price (BRL/MWh): 236 in 2021, 252 in
2022 and average 219 in 2022-2023;
-- Dividends (BRL Mi.): 850 in 2021, 600 in 2022 and a total
1,500 in 2023-2024;
-- Indemnification from HPP Tres Irmaos: BRL1.0 billion cash
inflow in 2023-2024;
-- Litigations: annual cash disbursements of BRL300 million.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- The Outlook for CESP's LT FC IDR would be revised to Stable
with the same movement for the Sovereign Outlook;
-- Diversification of the asset base;
-- Total debt/EBITDA and net debt/EBITDA remaining at the current
levels, limited to 3.0x and 2.5x, respectively;
-- Maintenance of a strong liquidity profile.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A sovereign downgrade would trigger a downgrade on the
company's LT FC IDR;
-- Total debt/EBITDA and net debt/EBITDA above 4.0x and 3.5x,
respectively;
-- Strong operational issue related to performance at Porto
Primavera HPP;
-- Deterioration in the liquidity profile;
-- Unfavorable developments on contingent liabilities that could
materially affect the company's liquidity in the rating
horizon.
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
Strong Liquidity Profile: CESP should maintain conservative
liquidity levels in the coming years, despite the expected negative
FCFs until 2022. Cash balance was BRL870 million at the end of
March 2021, with short-term debt of BR5 million related to
debentures' interest. Annual debt amortization will not exceed
BRL75 million until 2025. The company also counts on access to
diversified sources of funding.
ISSUER PROFILE
Companhia Energetica de Sao Paulo (CESP) is a publicly-traded
company that operates Porto Primavera, a 1.5 GW hydro power plant
(HPP) located in Brazil's Southeast region. CESP is controlled by
VTRM Energia e Participacoes S.A. (VTRM), a 50/50 joint venture
between Votorantim Geracao de Energia S.A. and the Canadian fund
CPPIB. VTRM owns 40% of CESP's total shares and 93.5% of the voting
shares, with the remaining held as free float. The company was
privatized in 2018 and is listed at the Brazilian stock exchange
B3. More than 80% of CESP's revenue forecast until 2024 is
guaranteed by long-term, inflation-adjusted power purchase
agreements (PPAs).
SUMMARY OF FINANCIAL ADJUSTMENTS
The following expenses were added back to EBITDA: 1) Provisions for
litigations; 2) Impairments on fixed assets; 3) Provisions or
reversions related to contingent assets or liabilities; 4)
Extraordinary SG&A costs related to voluntary dismissal plan; 5)
Losses on currency derivatives; 6) Marking-to-market of energy
contracts; 7) Write-off of judicial deposits.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
SAMARCO MINERACAO: Creditors Oppose Restructuring Plan
------------------------------------------------------
Carolina Mandl at Reuters, citing a court document, reports that
creditors of bankrupt miner Samarco Mineracao SA, a joint venture
between Vale SA and BHP Group Plc, objected to the company's
restructuring plan.
Creditors said the plan's main goal is to protect Samarco's giant
shareholders, Vale and BHP, and reduce future payments to
creditors, according to Reuters.
They also rejected Samarco's offer to apply an 85% haircut to all
creditors, including shareholders Vale and BHP, which extended 24
billion reais in loans to the company. Debt payments to creditors
would occur in 2041, the report notes.
Creditors said both Vale and BHP, as shareholders, should be paid
only after all other creditors fully recover their money, the
report relays. They also questioned if both giant companies should
recover any value as creditors consider that both miners are
co-debtors, the report discloses.
They also refused Samarco's offer to swap their debt for shares in
the company, the report relays.
"It is unacceptable that a restructuring plan of a company
controlled by the world's biggest miners outlines an outright (and
illegal) debt forgiveness to create value for its multimillionaire
shareholders, which are also responsible for Brazil's biggest
environmental disaster," creditors said in the court document, the
report says.
They referred to the collapse of a dam at the Samarco mine complex
in 2015 that killed 19 people, severely polluted the Doce River
with mining waste and led the company into financial trouble, the
report notes.
Creditors have proposed Samarco, Vale and BHP pay in three equal
parts for all damage caused by the rupture of the dam, creditors
lawyers Paulo Padis and Marcos Pitanga said in an interview, the
report discloses. That contrasts with Samarco's restructuring
plan, which proposes the company pay for the damage entirely, the
report says.
Creditors and Samarco have recently signed confidentiality
agreements to start negotiations, the report relays.
Samarco and Vale said in separate statements that the proposed
restructuring plan takes into consideration the company's
financials and aims at keeping payments to repair damage caused by
the disaster, the report notes.
BHP said loans extended to Samarco to allow its continuity in the
last five years were at terms similar to credit lines taken by the
miner before the disaster, the report discloses.
Samarco added creditors have not presented any alternative plan so
far, the report adds.
About Samarco Mineracao
Samarco Mineracao SA is a Brazilian mining joint venture between
BHP Group and Vale SA. erves as an iron ore processing company. The
company provides blast furnace, direct reduction, sinter feed,
as well as low and normal silica content pellets.
On April 9, 2021, the Debtor filed a voluntary petition for
judicial reorganization in the 2nd Business State Court for the
Belo Horizonte District of Minas Gerais in Brazil pursuant to
Brazilian Federal Law No. 11,101 of February 9, 2005.
Samarco Mineracao filed for Chapter 15 bankruptcy recognition
(Bankr. S.D.N.Y. Case No. 21-10754) on April 19, 2021, in New York,
to seek U.S. recognition of its Brazilian proceedings.
The Debtor's U.S. counsel:
Thomas S. Kessler
Cleary Gottlieb Steen & Hamilton LLP
Tel: 212-225-2000
E-mail: tkessler@cgsh.com
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Gets $115M IDB Loan for Digital Connectivity
----------------------------------------------------------------
The Dominican Republic will improve connectivity to boost access to
digital services as well as people's adoption and continuity of
such services with help from a $115 million loan approved by the
Inter-American Development Bank (IDB). The project will finance
investments to expand broadband infrastructure, including the
expansion of backbone, aggregation and access networks in order to
improve connectivity for the country's citizens.
The operation will include private sector participation and support
the deployment of infrastructure in areas that would not be
economically profitable on their own, thus ensuring resource
optimization. With this approach, both the public and the private
sectors will contribute to reduce the digital gap and foster the
sustainability of this type of infrastructure in the country.
In addition, the IDB's project will endorse moves to improve
broadcasting services, paving the way for transitioning from analog
to digital television and enhancing digital abilities and
competencies. One key aspect of the project is its promotion of
policies that support digital dividend spectrum auctions in order
to boost universal access.
It will also finance courses to train people how to use equipment
and technology with a gender perspective to help citizens develop
their digital skills, stepping up access to digital services and
fostering their adoption and continuity of use. These digital
abilities will be crucial for the implementation and productive use
of Information and Communication Technologies (ICTs), benefiting
some four million low-income people, with a strong emphasis on
women.
Enhanced connectivity will reach some 108 municipios that either
lack or have only one wired internet service network, benefiting
more than two million people. An additional 56 municipios that are
home to 8.1 million people will get improved broadcast services,
including the implementation of digital TV.
The IDB is financing the project with a $115 million loan for a
25-year term, a 6.1-year grace period, and interest rate based on
LIBOR. The project is expected to help raise annual GDP by 1.46
percent, boost productivity by 1.2 percent, and generate
33,000-plus jobs.
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. Luis Rodolfo
Abinader Corona is the current president of the nation.
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.
Fitch Ratings on Jan. 18, 2021, assigned a 'BB-' rating to
Dominican Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.
Standard & Poor's, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings. The negative
outlook reflects S&P's view that it could lower the ratings on the
Dominican Republic over the next six to 18 months, given the
severe impact of the COVID-19 pandemic on the sovereign's already
vulnerable fiscal and external profiles, as well as the potential
for a weaker-than-expected economic recovery.
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: Inflation From January to June Stands at 4.01%
------------------------------------------------------------------
Dominican Today reports that the Central Bank of the Dominican
Republic (BCRD) reported that the monthly variation of the consumer
price index (CPI) was 0.63% in June 2021, placing the accumulated
inflation of the first half of the year (January-June) at 4.01%.
"The BCRD report highlights that, as the Central Bank governor
pointed out on various occasions and in publications, the general
inflation of the last 12 months would begin in June a process of
convergence towards the target range established in the monetary
program of 4% ± 1% on the policy horizon, as it actually
occurred," says the Central Bank in a statement obtained by the
news agency.
Accumulated inflation in the last twelve months stood at 9.32% at
the end of June, according to Dominican Today. "This result
constitutes a turning point downward and is consistent with what
the forecasting system of this institution had been indicating,"
says the press release, 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. Luis Rodolfo
Abinader Corona is the current president of the nation.
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.
Fitch Ratings on Jan. 18, 2021, assigned a 'BB-' rating to
Dominican Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.
Standard & Poor's, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings. The negative
outlook reflects S&P's view that it could lower the ratings on the
Dominican Republic over the next six to 18 months, given the
severe impact of the COVID-19 pandemic on the sovereign's already
vulnerable fiscal and external profiles, as well as the potential
for a weaker-than-expected economic recovery.
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).
=====================
P U E R T O R I C O
=====================
ABAB CORPORATION: Case Summary & 17 Unsecured Creditors
-------------------------------------------------------
Debtor: Abab Corporation
DBA Payless Car Rental
Baldoriority De Castro Avenue
Marginal Los Angeles KM 9.9
Carolina, PR 00979
Business Description: Abab Corporation operates in the car
rental industry.
Chapter 11 Petition Date: July 15, 2021
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 21-02140
Judge: Hon. Enrique S. Lamoutte Inclan
Debtor's Counsel: Charles A. Cuprill Hernandez, Esq.
CHARLES A. CUPRILL, PSC LAW OFFICES
356 Fortaleza Street
Second Floor
San Juan, PR 00901
Tel: 787-977-0515
Email: ccuprill@cuprill.com
Total Assets: $8,657,248
Total Liabilities: $8,175,957
The petition was signed by Alberic Colon Solis, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 17 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/BKRNZGI/ABAB_CORPORATION__prbke-21-02140__0001.0.pdf?mcid=tGE4TAMA
L'OCCITANE INC: August 24 Plan & Disclosure Hearing Set
-------------------------------------------------------
Debtor L'Occitane, Inc. and the Official Committee of Unsecured
Creditors ("Plan Proponents") filed with the U.S. Bankruptcy Court
for the District of New Jersey a joint motion for entry of an
order
approving the Disclosure Statement.
On July 15, 2021, Judge Michael B. Kaplan granted the motion and
ordered that:
* The Disclosure Statement is approved on an interim basis.
* Aug. 24, 2021, at 11:30 a.m. is the combined hearing on
final approval of the adequacy of the Disclosure Statement and
confirmation of the Plan.
* Aug. 13, 2021, at 4:00 p.m. is the deadline to file
objections to the adequacy of the Disclosure Statement and
confirmation of the Plan.
* Aug. 20, 2021, at 4:00 p.m. is the deadline for the Debtors
to file a brief in support of confirmation of the Plan and/or a
reply to any objections to the final approval of the Disclosure
Statement and Confirmation of the Plan.
* The Plan's releases, exculpatory provisions, and injunctions
comply with Bankruptcy Rule 3016(c) and conspicuously describe the
conduct and parties enjoined by the Plan. Nothing in this Order
shall be deemed a finding or determination or order that the terms
and conditions of any of such releases, exculpatory provisions, or
injunctions are approved.
* The Debtor is authorized to make non-material changes to
the
Disclosure Statement, Plan, Confirmation Hearing Notice, and
related pleadings without further order of the Court.
A full-text copy of the order dated July 15, 2021, is available at
https://bit.ly/2UNZOdk from Stretto, the claims agent.
Counsel for L'Occitane:
FOX ROTHSCHILD LLP
49 Market St.
Morristown, NJ 07960
Mark E. Hall, Esq
Martha B. Chovanes, Esq.
Michael R. Herz, Esq.
mhall@foxrothschild.com
mchovanes@foxrothschild.com
mherz@foxrothschild.com
Telephone: (973) 992-4800
Facsimile: (973) 992-9125
Counsel for the Official Committee of Unsecured Creditors:
COLE SCHOTZ P.C.
Court Plaza North
25 Main Street
Hackensack, New Jersey 07601
Warren A. Usatine, Esq.
Seth Van Aalten, Esq. (admitted pro hac vice)
Justin R. Alberto, Esq. (admitted pro hac vice)
wusatine@coleschotz.com
svanaalten@coleschotz.com
jalberto@coleschotz.com
Telephone: (201) 489-3000
Facsimile: (201) 489-1536
About L'Occitane Inc.
New York-based L'Occitane, Inc. -- http://www.loccitane.com/-- is
a national retail chain that sells and promotes the
internationally
renowned "L'OCCITANE en Provence" beauty and well-being products
brand in the United States through boutiques in 36 states and its
website. After opening its first boutique in the U.S. in 1996, the
Company presently operates 166 boutiques in 36 states and Puerto
Rico.
Founded by Olivier Baussan more than 40 years ago,
Switzerland-based L'OCCITANE en Provence captures the true art de
vivre of Provence, offering a sensorial immersion in the natural
beauty and lifestyle of the South of France. From the texture of
L'OCCITANE products to the scent, each skincare, body care, and
fragrance formula promises pleasure through beauty and well-being
-- a moment rich in enjoyment and discovery that goes beyond
tangible benefits to create a different experience of Provence.
On Jan. 26, 2021, L'Occitane, Inc., filed a Chapter 11 petition
(Bankr. D.N.J. Case No. 21-10632). The Debtor estimated $100
million to $500 million in assets and liabilities as of the
bankruptcy filing. International operations are not part of the
Chapter 11 filing.
The Hon. Michael B. Kaplan is the case judge.
Fox Rothschild LLP is serving as the Company's legal counsel, RK
Consultants LLC is serving as financial advisor, and Hilco Real
Estate, LLC is serving as real estate advisor to the Company.
Stretto is the claims agent, maintaining the page
https://cases.stretto.com/LOccitane
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T R I N I D A D A N D T O B A G O
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NATIONAL GAS: Young Blames UNC for $2.1 Billion Loss in FY2020
--------------------------------------------------------------
Trinidad Express reports that Trinidad and Tobago Energy Minister
Stuart Young said state-owned National Gas Company (NGC) suffered
the historic $2.1 billion loss in its 2020 financial year, partly
as a result of the negotiation of the natural gas supply contract
for the methanol and dimethyl ether (DME) plant in La Brea by the
People's Partnership administration.
Although he did not name the foreign company involved, Young was
referring to the natural gas supply contract negotiated by the NGC
with Caribbean Gas Chemical Ltd (CGCL), which is majority owned by
a consortium of companies of Japan's giant Mitsubishi Group,
according to Trinidad Express. NGC and the Massy Group are
minority shareholders in the plant, which began commercial
operations in December 2020, according to the ICIS website. The
plant was commissioned more than a year late, the report relays.
In responding to a question from Opposition Senator, Wade Mark, on
a motion on the adjournment in the Senate, Young referred to a
two-day visit he made to Japan in 2015 to renegotiate "the only
deal the UNC government put together in the period 2010 to 2015,"
the report discloses.
Young described the natural gas supply contract negotiated in 2015,
before the general elections in September, as a "disaster of a deal
not only for the energy sector of Trinidad and Tobago but, in fact,
for the NGC," the report notes.
Young told the Senate: "That required me to go to Japan on a
two-day trip and fortunately renegotiate certain terms that the UNC
government . . . did among other things, make a promise to give gas
that did not exist to a new, untested plant, instead of all of the
Point Lisas estate plants that existed with their long-term natural
gas contracts at the time," the report relays.
T&T's Energy Minister said the negotiation of the natural gas
supply contract provides the background for the $2.1 billion loss
reported by NGC for the financial year that ended December 31,
2020, the report notes.
Young said NGC's 2020 results were adversely affected by
exceptional charges of $4.2 billion, resulting from the following:
-- A charge of $2.1 billion recorded in 2020 by NGC for the
"onerous" gas supply contract "in which the cost of fulfilling the
contract in the future is greater than the returns to be derived."
Young said the "disastrous contract" is going to lead to NGC losing
$4.5 billion in the future with the natural gas company being
required to book a charge of $2.1 billion in 2020, in accordance
with new accounting standards;
-- An impairment of infrastructure of $1.6 billion;
-- The settlement of certain claims of $500 million, "flowing out
of the disaster that was 2010 to 2015 under a failed UNC
administration that decimated the energy sector in Trinidad and
Tobago."
Young said: "These three things are the result of what happened
unfortunately in that period of timeand led to NGC having to
restate and now book a loss," the report relays.
Ramnarine responds
The report discloses that asked to respond to Young's charges,
former energy minister, Kevin Ramnarine said: "By his own admission
at the beginning of his answer these agreements were renegotiated
in 2016 by the present Government.
"So any declaration of 'onerous contract' in 2020 must take that
into consideration.
"In addition when negotiations were conducted in 2015, (by the NGC)
it was done against the backdrop of an understanding of what was
then the NGC's weighted average cost of acquisition of natural
gas.
"It is now part industry lore that the NGC's weighted average cost
of acquisition of natural gas increased significantly in 2019,
based on contracts renegotiated in 2017.
"So that must also be included in the overall narrative and chain
of causation that led to "the onerous contract" in 2020.
"As for the claim of decimation of the energy sector from 2010 to
2015, when we left office in 2015, all four trains in Point Fortin
were operational, all twenty plants in Point Lisas were
operational, Petrotrin was fully operational and natural gas
production was 26.3 per cent higher than it is today.
"Unfortunately this is clearly not the situation today."
Asked if the contracts that NGC signed with CGCL was a fixed or
floating contract, Ramnarine said: "I was not involved in the
negotiation of that contract. Historically ministers of energy have
never interfered in NGC's negotiations. I don't know if that
practice might have changed. "Interestingly, however, some of the
persons who were involved in that negotiation continued to advise
the current PNM administration.
"As for 'crystal balling' the future, it was not possible to see in
2015 the negotiations of 2017, which led to the NGC having to pay a
lot more for natural gas.
"I don't want to comment further because I don't have the contract
in front of me, but that contract, like most NGC gas sales
contracts with petrochemical plants, would have had a fixed
component and a variable component that was linked to commodity
prices."
*********
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