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/raid1/www/Hosts/bankrupt/TCRLA_Public/160121.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, January 21, 2016, Vol. 17, No. 14 Headlines B R A Z I L BRAZIL: Recession Deepening With Three Lost Years, IMF Says PETROLEO BRASILEIRO: Market Cap Down 85.55% Since May 2008 C A Y M A N I S L A N D S ADM CREDIT: Placed Under Voluntary Wind-Up AFRICA EQUITY: Commences Liquidation Proceedings CA BERLIN: Commences Liquidation Proceedings CHEYNE MALACCA: Commences Liquidation Proceedings DOUBLE HAVEN: Commences Liquidation Proceedings HOLDCO DISTRESSED I: Commences Liquidation Proceedings HOLDCO DISTRESSED III: Commences Liquidation Proceedings INFINITY CAPITAL: Commences Liquidation Proceedings NOMAD INVESTMENT: Placed Under Voluntary Wind-Up PD GERMANY: Commences Liquidation Proceedings PRINCETON ASSET: Placed Under Voluntary Wind-Up PRINCETON ASSET MASTER: Placed Under Voluntary Wind-Up RV DRESDEN: Commences Liquidation Proceedings SILVERMORE 2: Commences Liquidation Proceedings SPK 23 (CAYMAN): Placed Under Voluntary Wind-Up C H I L E SMU SA Y FILIALES: S&P Revises Outlook to Pos. & Affirms CCC+ CCR D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Seeks Investors to Look For Oil POPULAR DOMINICANO: Tourism Sector Gets 47% of Bank Loans J A M A I C A FINANCIAL INSTITUTIONS: Builds Up Huge Deficit M E X I C O SERVICIOS CORPORATIVOS: Moody's Affirms B2 Rating; Outlook Stable P U E R T O R I C O MORGANS HOTEL: Amends Employment Agreements with COO and EVP - - - - - =========== B R A Z I L =========== BRAZIL: Recession Deepening With Three Lost Years, IMF Says ----------------------------------------------------------- David Biller at Bloomberg News reports that Brazil won't return to growth until at least 2018 after two years of recession and one of stagnation, marking the first time in over a century that Latin America's largest economy fails to expand for that long, the International Monetary Fund said. According to Bloomberg News, the IMF cut Brazil's 2017 economic forecast to stagnation from 2.3 percent growth as it updated its World Economic Outlook, last published in October. Gross domestic product will shrink 3.5 percent this year after contracting 3.8 percent in 2015, it said. That would be the first time since 1901 that Brazil has back-to-back recessions deeper than 3 percent, according to data from the government's economic research institute, known as IPEA. The estimates mean the Washington-based lender is now more pessimistic than all but four of the 23 economists surveyed by Bloomberg, whose median estimate is for Brazil to expand 1 percent next year. Confidence has sunk to record lows in Brazil, depressing both consumption and investment as bottoming prices for commodity exports provide no relief, Bloomberg News notes. The fraught economic scenario has deteriorated amid a probe into bribes at state-run oil producer Petrobras that has implicated key politicians and business executives, says the report. "The recession caused by political uncertainty amid continued fallout from the Petrobras investigation is proving to be deeper and more protracted than previously expected," the IMF said in the report, which didn't provide forecasts beyond 2017, Bloomberg News relays. Brazil and other nations undergoing "economic distress" will drag Latin America and the Caribbean into a 0.3 percent contraction this year, according to the report, Bloomberg News notes. The IMF cited Brazil's recession as a key factor behind its downward revisions to the global economic outlook this year and next, Bloomberg News adds. As reported in the Troubled Company Reporter-Latin America on Dec. 21, 2015, Fitch Ratings has downgraded Brazil's ratings: -- Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'BB+' from 'BBB-', Outlook remains Negative; -- Senior unsecured foreign and local currency bonds to 'BB+' from 'BBB-'; -- Short-term foreign currency IDR to 'B' from 'F3'. PETROLEO BRASILEIRO: Market Cap Down 85.55% Since May 2008 ---------------------------------------------------------- EFE News reports that Brazilian state-controlled oil company Petroleo Brasileiro's market capitalization has plunged 85.55 percent since May 21, 2008, when it hit a record high of BRL510.3 billion (around $126.5 billion at the current exchange rate), an investment analysis firm said. Petrobras, whose current market cap is BRL73.7 billion (around $18.3 billion), has fallen the most from its peak -- in absolute terms -- among companies traded on the Sao Paulo Stock Exchange, according to Sao Paulo-based Economatica, says EFE News. The report notes that the state-controlled company has been hard hit by the drop in global oil prices and a massive bribes-for- inflated-contracts scheme that forced Petrobras to write down BRL50.8 billion ($12.54 billion at the current exchange rate) last year due to losses from graft and overvalued assets. The market capitalization of Brazilian mining giant Vale, meanwhile, stood at BRL42 billion (some $10.4 billion) on Jan. 18, down 86.99 percent from its record high on May 16, 2008, the report says. The biggest decliner on a percentage basis has been steelmaker Gerdau Metalurgica, which had a market cap of BRL988 million (some $244.9 million) on Jan. 18, down 95.77 percent from its record high on June 9, 2008. Of the 57 companies that make up the Ibovespa, the Sao Paulo exchange's benchmark index, 28 have seen their stock price plunge more than 50 percent from their record highs, Economatica said, the report adds. As reported in the Troubled Company Reporter-Latin America on Jan. 18, 2016, the decision by Petroleo Brasileiro S.A. (Petrobras, Ba3 RUR) to sharply reduce its capital spending is positive, as it helps the oil company preserve cash at a time when it is facing significant refinancing risk. The company's estimates of a limited decline in its production target for 2020 imply very low prices for equipment and services as well as continued operating productivity, says Moody's Investors Service. ========================== C A Y M A N I S L A N D S ========================== ADM CREDIT: Placed Under Voluntary Wind-Up ------------------------------------------ On Nov. 19, 2015, the sole shareholder of ADM Credit Investments Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 28, 2015, will be included in the company's dividend distribution. The company's liquidator is: Alexander Shaik c/o Suite 1008 ICBC Tower 3 Garden Road, Central Hong Kong Telephone: (852) 2536 4567 Facsimile: (852) 2147 2813 AFRICA EQUITY: Commences Liquidation Proceedings ------------------------------------------------ On Nov. 17, 2015, the members of Africa Equity Growth Fund resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 30, 2015, will be included in the company's dividend distribution. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands Telephone: +1 (345) 949 4900 CA BERLIN: Commences Liquidation Proceedings -------------------------------------------- On Nov. 16, 2015, the members of CA Berlin Project Company, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 8, 2016, will be included in the company's dividend distribution. The company's liquidator is: Christopher Kennedy c/o Barry Lynch Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Grand Cayman KY1-1103 Windward 1, Regatta Office Park Cayman Islands CHEYNE MALACCA: Commences Liquidation Proceedings ------------------------------------------------- On Nov. 23, 2015, the sole shareholder of Cheyne Malacca Asia Equity Fund Inc. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 28, 2015, will be included in the company's dividend distribution. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited c/o Jo-Anne Maher Telephone: (345) 814-9255 Facsimile: (345) 949-4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands DOUBLE HAVEN: Commences Liquidation Proceedings ----------------------------------------------- On Nov. 24, 2015, the sole shareholder of Double Haven Asia Credit OC Fund resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Kanwaljit Singh Bahra c/o Double Haven Capital (Hong Kong) Limited Level 41, 4104-08, 248 Queen's Road East Wan Chai Hong Kong HOLDCO DISTRESSED I: Commences Liquidation Proceedings ------------------------------------------------------ On Nov. 24, 2015, the sole shareholder of Holdco Distressed Fund I resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 22, 2015, will be included in the company's dividend distribution. The company's liquidators are: Vikaran Ghei Michael Zaitzeff c/o Loeb Smith Attorneys Zephyr House, 5th Floor, 122 Mary Street George Town Grand Cayman KY1-1206 Cayman Islands Dominika Chrachalova Telepphone: (345) 749 7493 HOLDCO DISTRESSED III: Commences Liquidation Proceedings -------------------------------------------------------- On Nov. 24, 2015, the sole shareholder of Holdco Distressed Fund III resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 22, 2015, will be included in the company's dividend distribution. The company's liquidators are: Vikaran Ghei Michael Zaitzeff c/o Loeb Smith Attorneys Zephyr House, 5th Floor, 122 Mary Street George Town Grand Cayman KY1-1206 Cayman Islands Dominika Chrachalova Telepphone: (345) 749 7493 INFINITY CAPITAL: Commences Liquidation Proceedings --------------------------------------------------- On Nov. 17, 2015, the shareholders of Infinity Capital resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 6, 2016, will be included in the company's dividend distribution. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town c/o Susan Craig/Jennifer Chailler Grand Cayman KY1-9005 Cayman Islands Telephone: (345) 943-3100 NOMAD INVESTMENT: Placed Under Voluntary Wind-Up ------------------------------------------------ On April 30, 2014, the sole shareholder of The Nomad Investment Company Limited passed a resolution to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Avalon Ltd. Reference: GL Telephone: +1 (345) 769 4422 Facsimile: +1 (345) 769 9351 Landmark Square, 1st Floor, 64 Earth Close P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands PD GERMANY: Commences Liquidation Proceedings --------------------------------------------- On Nov. 16, 2015, the members of PD Germany Project Company I, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 8, 2016, will be included in the company's dividend distribution. The company's liquidator is: Christopher Kennedy c/o Barry Lynch Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Grand Cayman KY1-1103 Windward 1, Regatta Office Park Cayman Islands PRINCETON ASSET: Placed Under Voluntary Wind-Up ----------------------------------------------- On Nov. 25, 2015, the sole shareholder of Princeton Asset Management Absolute Return Fund, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 28, 2015, will be included in the company's dividend distribution. The company's liquidator is: Priestleys c/o Martina de Lima Telephone: (345) 946-1577 Caribbean Plaza, 2nd Floor 878 West Bay Road P.O. Box 30310 Grand Cayman KY1-1202 Cayman Islands PRINCETON ASSET MASTER: Placed Under Voluntary Wind-Up ------------------------------------------------------ On Nov. 24, 2015, the sole shareholder of Princeton Asset Management Absolute Return Master Fund, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 28, 2015, will be included in the company's dividend distribution. The company's liquidator is: Priestleys c/o Martina de Lima Telephone: (345) 946-1577 Caribbean Plaza, 2nd Floor 878 West Bay Road P.O. Box 30310 Grand Cayman KY1-1202 Cayman Islands RV DRESDEN: Commences Liquidation Proceedings --------------------------------------------- On Nov. 16, 2015, the members of RV Dresden Project Company, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 8, 2016, will be included in the company's dividend distribution. The company's liquidator is: Christopher Kennedy c/o Barry Lynch Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Grand Cayman KY1-1103 Windward 1, Regatta Office Park Cayman Islands SILVERMORE 2: Commences Liquidation Proceedings ----------------------------------------------- On Nov. 20, 2015, the members of Silvermore 2 Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 30, 2015, will be included in the company's dividend distribution. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands Telephone: +1 (345) 949 4900 SPK 23 (CAYMAN): Placed Under Voluntary Wind-Up ----------------------------------------------- On Nov. 24, 2015, the sole member of SPK 23 (Cayman) Inc. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Sanjeev Dave c/o Campbells Willow House, Floor 4 Cricket Square Grand Cayman KY1-1103 Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 ========= C H I L E ========= SMU SA Y FILIALES: S&P Revises Outlook to Pos. & Affirms CCC+ CCR ----------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on SMU S.A. y Filiales to positive from stable. At the same time, S&P affirmed its 'CCC+' corporate credit and issue-level ratings on the company. The outlook revision follows SMU's Dec. 30, 2015, announcement that its board of directors approved a CLP230 billion capital increase. SMU plans to use the proceeds to pay subordinated debt it owes to its major shareholder, local bonds, and for working capital needs. While this should partly improve the company's capital structure, stronger operating results are necessary to raise cash flow generation in order to reduce company's still high leverage. The company continues to improve its operating performance, with sales growth and stronger EBITDA margin of 6.0%-6.5% in the past few quarters, what S&P believes can continue in the next few quarters. Despite the benefits stemming from the capital increase, S&P expects SMU's leverage to remain high, with debt to EBITDA above 7.0x. Also, the company's exposure to dollar- denominated debt, which is not hedged, might drag down cash generation amid higher interest costs if the Chilean peso further depreciates. Despite improving operating performance, the high debt burden undermines SMU's financial flexibility. Moreover, under the current scenario, S&P thinks there will be a narrow cushion for the company's financial covenants with local bondholders, which SMU needs to comply by December 2016. Therefore, S&P believes the company will likely need to renegotiate or obtain a waiver for them. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Seeks Investors to Look For Oil --------------------------------------------------- Dominican Today reports that Dominican Republic showcased its energy and oil sector which will soon open opportunities for private capital to explore for and produce hydrocarbons in its territory to potential investors and government officials of the island-nation. Energy and Mines Minister Antonio Isa spoke at the Energy and Development Regional Conference held from January 18 to 20 in the Caribbean country, Dominican Republic's main supplier of natural gas and propane, according to Dominican Today. Minister Isa offered unpublished data over the 12,690 linear kilometers of untapped territory without any concessions which his country will soon make available to interested investors, the report notes. Minister Isa said his agency will soon feature the National Hydrocarbons Data Base, which is being compiled by a subsidiary of the international firm Schlumberger-Surenco, which was contracted by the Dominican government, the report relays. "We would be very pleased for you to join us in the development of the emerging energy industry in the Dominican Republic, taking advantage of the opportunities and the business climate that we promote for investment," the report quoted Minister Isa as saying. The official said since May last year his agency has updated, organized and digitized high-value information to potential investors that will serve to create hydrocarbon exploration blocks to be tendered shortly under specific contracts, the report adds. As reported in the Troubled Company Reporter-Latin America on Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B+'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The issue ratings on the Dominican Republic's senior unsecured foreign and local currency bonds are affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the short-term foreign currency IDR at 'B'. POPULAR DOMINICANO: Tourism Sector Gets 47% of Bank Loans --------------------------------------------------------- Dominican Today reports that Banco Popular Dominicano public relations director Jose Marmol said the country's tourism sector accounts for 47% of that bank's loans, with RD$16.4 billion to November 2015, from a total of RD$34.82 billion from all local banks. Speaking during a breakfast with Banco Popular executives and Dominican journalists in Madrid, where the International Tourism Fair (Fitur) 2016, Mr. Marmol said the National Hotels and Restaurants Association (Asonahores) called Poplar the "tourism bank," because 20 years ago they began bringing tour leaders, banks and investors from Spain together, the report notes. Dominican Today relays that Mr. Marmol said conferences and seminars were promoted as well in 2014, seeking to develop the sector, contributing RD$6.8 billion to the country in tax revenue, and RD$6.0 billion from January to September 2015. ". . . . the BPD hosts a dinner for the 250 participating potential or current investors and entrepreneurs of complementary tourism sectors at the Thyssen-Bornemisza Museum in Madrid, Spaing," the leader added. ============= J A M A I C A ============= FINANCIAL INSTITUTIONS: Builds Up Huge Deficit ---------------------------------------------- RJR News reports that the entity established more than 20 years ago to manage the assets of the Blaise and Century financial entities has racked up a deficit of more than J$300 million. According to the 2013/2014 audited results of Financial Institutions Services (FIS), which were tabled in Parliament, the auditors KPMG, said the continuation of the company as a going concern is uncertain, the report notes. FIS had a net deficit of J$328 million and liabilities of J$329 million, according to RJR News. The auditors said the collection of outstanding damages awarded against former officers of the Century financial entities is uncertain, the report relays. A judgement was handed down by the Privy Council in November 2005, upholding the decision of the Supreme Court in 1999 which awarded repayment to FIS of J$3 billion plus interest by former principals and shareholders of Century Financial, the report notes. Various pieces of real estate, estimated at $250 million, owned by the former principal director, were identified to be applied against this judgement debt, the report says. FIS said efforts are still being made to identify other assets that may be sold, the report adds. =========== M E X I C O =========== SERVICIOS CORPORATIVOS: Moody's Affirms B2 Rating; Outlook Stable ----------------------------------------------------------------- Moody's Investors Service has affirmed the B2 senior unsecured rating of Servicios Corporativos Javer. The outlook is stable. RATINGS RATIONALE The affirmation of Javer's ratings follows the completion of its initial public offering (IPO). "The IPO is credit positive as it is a step forward in the company's plan to de-lever and reduce foreign currency exposure in its capital structure", said Sandra Beltran, a Moody's AVP -- Analyst. However, Javer ratings remain unchanged as there are some milestones that the company needs to achieve to complete its refinancing plan, while maintaining operating performance and margins at current levels. Javer's B2 senior unsecured rating reflects its leading presence in relevant markets such as the states of Nuevo Leon and Jalisco, which include Mexico's second and third-largest metropolitan area. The rating also considers the company's solid operating performance in recent years, which were particularly challenging for the industry in Mexico during 2013. Balancing these credit positives are Javer's small size and weak credit metrics for the rating category, mainly due to the still high amount of debt. The B2 rating also reflects its high reliance on Infonavit for takeout financing and federal subsidies for its low and middle income segments. On Jan. 13, 2016, Javer closed an IPO for 34% of its stake, currently listed in the Mexican Stock Exchange. Through the IPO the company was able to raise MXN 1.8 billion, which will be used to fund a partial repurchase of its USD 295 million senior notes due 2021. Moody's views the transaction as positive not only in terms of debt reduction, but because it will also reduce the company's capital structure exposure to foreign currency debt. The bulk of Javer's debt are its USD denominated global notes, impacted by the 17% depreciation of the Mexican Peso in 2015. After the repurchase of the notes, we estimate that Javer's leverage, measured as Debt / Capitalization, will be reduced to approximately 48% from 77% as of September 2015. However, leverage will still be commensurate with the B2 ratings and the company will still be exposed -- although on a lesser extent - to the depreciation of the peso. Javer's operating performance has been resilient even during the 2012/2013 sector's crisis. However, recently there have been signs of deterioration. For example, for the last twelve months (LTM ) ended in September 2015, revenue growth was only 2.2% when compared to the 11.7% growth rate of 2014. Profitability has also deteriorated with LTM gross margin at 27.8%, below the 29.2% posted in 2013, when the sector's crisis was at its peak and the housing policy changed. Although Javer is currently the market leader in terms of Infonavit mortgage loans, we think that its focus on attractive markets in Mexico with positive housing dynamics could result in intensified competition that could further pressure profitability. The stable outlook reflects our view that the company will be able to maintain solid operating performance despite a challenging macroeconomic environment given the flexibility it has maintained in its operations through a focus in working capital, a diverse product portfolio and presence in several regions in Mexico with positive dynamics. In addition, the outlook incorporates Moody's expectation that the company will continue to take actions in order to reduce leverage and exposure to foreign currency. Moody's also anticipates that Javer will be able to meet its sales target particularly now that is entering in new markets with strong competition from regional players. Positive rating pressure would require further steps in Javer's plan to reduce debt and exposure to foreign currency. An upgrade of the rating would be predicated upon the company maintaining EBITDA margin above 15% and Debt to Capitalization trending towards 40% while continuing to grow its revenue base. Finally, for an upgrade to be considered, Javer would need to maintain a conservative land bank strategy. A downgrade will occur should Javer encounter further challenges in reaching titling and sales targets or due to missteps in its acquisition or land bank strategy which result in a weakening of credit metrics from current levels such that EBITDA margins fall closer to 12% and/or debt/capitalization approaches 55% without prospects to de-lever. Headquartered in the city of Monterrey, Mexico, Servicios Corporativos Javer S.A.B. de C.V. is one of the country's largest house developers, specializing in the construction of low and middle income housing. The company is privately owned and operates in the states of Nuevo Leon, Aguascalientes, Tamaulipas, Jalisco, Queretaro, Quintana Roo and State of Mexico. Javer is the largest supplier of Mexican Workers' Housing Fund (Infonavit) homes in the country and in the states of Nuevo Leon, Jalisco and Queretaro. For the last twelve months ended on September 30, 2015, Javer reported revenues of around MXN 6,177 million with an EBITDA margin as adjusted by Moody's of 13.8%. ====================== P U E R T O R I C O ====================== MORGANS HOTEL: Amends Employment Agreements with COO and EVP ------------------------------------------------------------- Morgans Hotel Group Co. entered into amended and restated employment agreements with Joshua Fluhr, the Company's chief operating officer, and Meredith L. Deutsch, the Company's executive vice president, general counsel and corporate secretary on Jan. 14, 2016. The Agreements replace in their entirety the prior agreements the Company had entered into with each of Mr. Fluhr and Ms. Deutsch. The Agreements are generally consistent with the executives' previous employment agreements with the Company, and the Agreements also: (i) reflect the executives' titles the executives' previously- agreed (and current) base salaries and target bonuses, which are $400,000 per annum and 50% of base salary for each of the named executives; (ii) do not have any fixed contract term; (iii) increase each executive's cash severance payments from six to 12 months of base salary continuation in the event of a termination of the executive's employment by the Company without cause or by the executive for good reason, each as defined in the Agreements, with a corresponding increase in Ms. Deutsch's health care continuation payment; (iv) provide that the named executives will be entitled to a pro-rata annual discretionary bonus for the year of termination upon a severance-entitling termination; (v) provide for (x) accelerated vesting of all unvested equity granted to Mr. Fluhr and Ms. Deutsch prior to the date of the Agreements, and, solely with respect to Mr. Fluhr, any restricted stock units granted to him as part of his annual bonus upon a severance-entitling termination, and (y) pro- rata vesting of all other outstanding equity awards upon a severance-entitling termination or a termination of the executive's employment due to death or disability (as defined in the Agreements) (except in the case of a severance-entitling termination within 12 months of a change of control, upon which all unvested equity outstanding at the time of the change in control will vest upon termination in accordance with the Company's equity plan); (vi) provide that the named executives will be entitled to six months of salary continuation payments upon a termination due to death; and (vii) solely with respect to Mr. Fluhr, in addition to the other post-employment covenants in his prior agreement, clarifies that he will only be subject to his post-employment noncompetition covenant upon a voluntary resignation by him without "good reason" upon continued payment of his base salary by the Company during the six-month post-employment non-competition period. About Morgans Hotel Group Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) -- http://www.morganshotelgroup.com/-- is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico. Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York and Palm Springs, California. Morgans Hotel reported a net loss attributable to common stockholders of $66.6 million on $235 million of total revenues for the year ended Dec. 31, 2014, compared with a net loss attributable to common stockholders of $58.5 million on $236 million of total revenues during the prior year. As of Sept. 30, 2015, the Company had $515 million in total assets, $774 million in total liabilities and a $259 million total deficit. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** 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, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2016. 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *