/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160524.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 Tuesday, May 24, 2016, Vol. 17, No. 101 Headlines A R G E N T I N A ARGENTINA: Congress Passes 'Anti-Layoffs' Bill B A H A M A S ULTRAPETROL (BAHAMAS): Posts Revenue Update B R A Z I L BRAZIL: New Economic Team Downgrades Expectations for Budget BRAZIL: PJT, Moelis, Houlihan Take Lead in Restructuring Big Firms BRAZIL: Demand for Corporate Loans Sinks in April C A Y M A N I S L A N D S MORAR CAYMAN: Members' Final Meeting Set for June 2 OLIMPIA PARTNERS: Member to Hear Wind-Up Report on June 1 OLIMPIA PARTNERS MASTER: Member to Hear Wind-Up Report on June 1 RCUBE INVESTMENT: Shareholders' Final Meeting Set for May 30 YELLOW STAR: Shareholder to Hear Wind-Up Report on June 13 C O L O M B I A ECOPETROL: Main Pipeline Targeted in New Attack C O S T A R I C A BANCO INTERNACIONAL: Fitch Affirms 'BB+' LT Issuer Default Rating G R E N A D A GRENADA: Fiscal Performance Turned Balance Deficit to Surplus J A M A I C A JAMAICA MERCHANT: Fitch Affirms BB+ Rating on US$250MM Notes M E X I C O BBVA BANCOMER: Fitch Affirms 'BB+' Rating on LT Jr. Sub. Notes P U E R T O R I C O ADELPHIA COMMUNICATIONS: Extends Exchange Offers Until May 26 AMBITEK INDUSTRIAL: Wants Plan Filing Period Extended by 26 Days GENTE JOVEN: Hires Luis D. Flores Gonzalez as Bankruptcy Counsel T R I N I D A D & T O B A G O CL FINANCIAL: Clico Stakeholders Want Money and Control Change - - - - - ================= A R G E N T I N A ================= ARGENTINA: Congress Passes 'Anti-Layoffs' Bill ---------------------------------------------- Taos Turner at The Wall Street Journal reports that Argentina's opposition-dominated Congress approved legislation that would double the cost of laying off private and public employees over the next six months, handing President Mauricio Macri his first legislative setback since taking office. Mr. Macri, who said the law would spook investors and destroy jobs, is expected to veto it, according to WSJ. The setback for Mr. Macri comes as pollsters say Argentines are increasingly worried about the prospect of losing their jobs, the report notes. Passage of the jobs bill, dubbed the "anti-layoffs law," raises questions about Mr. Macri's ability to pass key economic and political initiatives in a Congress dominated by the opposition Peronist political movement, the report relays. Mr. Macri's "Let's Change" coalition is a minority in both houses of Congress, the report notes. "What this shows is that in some ways the government has lost control of the political agenda," said Nicolas Solari, an analyst at pollster Poliarquia, the report discloses. "Now it's the opposition that is setting the agenda," Mr. Solari added. More than 57% of Argentines supported the legislation while 52% said they fear that a family member's job was at risk, according to a recent survey by pollster Raul Aragon, the report relays. The president moved to regain the political initiative, announcing increases in the minimum wage that will raise it 33% by January, the report notes. The WSJ recalls that Mr. Macri took office in December after narrowly defeating his Peronist opponent in last year's presidential election. Mr. Macri quickly reversed the nationalistic and interventionist policies of his populist predecessor, Cristina Kirchner, who nationalized companies and heavily regulated the economy, the report relays. Mr. Macri eliminated taxes on most farm exports, ended currency controls and replaced Argentina's central bank president, the report notes. But Mr. Macri did much of that on his own, without need for Congress, and his ability to govern smoothly during the remainder of his term will depend on support from Peronist leaders- particularly governors who heavily influence how Peronist legislators vote, the WSJ says. Until now, Mr. Macri has successfully wooed those governors, winning their backing in exchange for promises to improve the economy and invest billions in infrastructure projects across the country, the report discloses. In return, the governors backed a plan by Mr. Macri to settle Argentina's long-standing conflict with a group of bondholders in the U.S, the report notes. But after settling that dispute in April, Mr. Macri slashed subsidies on utility rates, leading to higher gas, electricity, water and transportation prices for millions of people in and around this capital city, the report relays. Economists said the move was necessary to reduce Argentina's budget deficit, but the price increases were unpopular and made it harder for Peronist politicians to support Mr. Macri in public, the report notes. "Sales have fallen 20% since Mr. Macri became president and we're afraid of getting laid off," said Liliana Bartes, 33 years old, who works at a bakery, notes the report. "I have two kids and if I get laid off I'd end up in the street. I think it's a good idea to pass the anti-layoffs law," she added. "There is not a wave of layoffs in Argentina," Argentina's Labor Minister Jorge Triaca said at a congressional hearing, adding that private sector job creation has been stagnant for the past five years, the report notes. "This is the situation we're in. It's worrisome because it's structural but it's not different today than it was five years ago," Mr. Triaca added. Argentina's Modernization Ministry, which is charged with updating the state bureaucracy, hasn't renewed the contracts of almost 11,000 temporary state workers, the WSJ relays. Those job cuts augmented concerns about broader job losses in both the private and public sectors, the report notes. The report discloses that debate over the layoffs bill has raised concerns among some investors about political stability in a country where several non-Peronist presidents have been forced out of office early because of virulent opposition from Peronist politicians and allied unions. But analysts say that isn't the case and that the administration simply needs to adjust to working with an opposition-controlled Congress and a Peronist movement that is trying to regroup after its defeat in the election, the report notes. "This is not a governability crisis, but rather an important sign that the government faces a learning process and needs to learn from it," said Mr. Solari, the pollster, the report says. The push to pass the bill came largely from members of former President Kirchner's opposition Victory Front Party, which has loudly criticized what they claim is a massive wave of layoffs caused by Mr. Macri's business-friendly economic policies, the report notes. "We are seeing a lot of layoffs. It's hard to know how many there are because a lot of companies are getting workers to sign confidentiality agreements when they are let go, so government data do not reflect what is really happening in the job market," said Victory Front Congressman Hector Recalde, the report discloses. Mr. Recalde said price increases are hitting workers and the companies that employ them, the report notes. Some business chambers are backing that up, saying that a combination of roughly 40% annual inflation, declining purchasing power and an anemic economy is hurting sales and leading companies to consider layoffs, the WSJ says. Last month, retail sells fell 6.6% on the year, according to CAME, a confederation of medium- size companies, the report discloses. "The decline in purchasing power was felt more than ever," CAME said earlier this month, citing "numerous layoffs" in both the private and public sectors, the report notes. "Businesses could not do anything about this at a time when people stopped window shopping," CAME added. In an interview earlier this year, Mr. Macri said he was obsessed about creating jobs, the WSJ notes. Administration officials have acknowledged laying off thousands of federal workers-who Mr. Macri and most of his ministers have said were paid political activists instead of qualified civil servants-but Mr. Macri has said there is no jobs crisis, the report relays. Over the past year, Argentina had a net gain of 60,000 jobs, he said recently, the report says. Still, he said such a small increase in jobs for a country of more than 40 million people "is nothing," but promised that the economy will rebound later this year, the report discloses. "We're going through a tough transition," Mr. Macri said after announcing the minimum wage increase, "but people have faith and are expecting a lot of us," the report adds. * * * On April 19, 2016, the Troubled Company Reporter-Latin America reported that Moody's Investors Service upgraded on April 15, 2016, Argentina's government bond rating to B3 from Caa1, with the outlook changed to stable from positive. The key drivers for the upgrade are (i) Moody's expectation that Argentina will settle holdout creditor claims which will result in a lifting of court injunctions and clear the way for Argentina to access international capital markets, as well as the likelihood that Argentina will make payments to restructured bondholders increased significantly following an April 13, US circuit court ruling in favor of Argentina, and (ii) the economic policy improvements since Mauricio Macri's administration took office last December. The new government lifted capital controls and allowed the peso to float more freely, reduced energy and transportation subsidies and has begun to address longstanding macroeconomic imbalances. As previously reported by the TCR-LA, Argentina defaulted on some of its debt late July 30, 2014, after expiration of a 30-day grace period on a US$539 million interest payment. Earlier that day, talks with a court-appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. On March 30, 2016, after more than 12 hours of debate in the Senate, Argentina's Congress passed a bill that will allow the government to repay holders of debt that the South American country defaulted on in 2001, including a group of litigating hedge funds that won judgments in a New York court. The bill passed by a vote of 54-16. On March 24, 2016, Fitch Ratings has upgraded Argentina's Long- term local-currency Issuer Default Rating (LT LC IDR) to 'B' from 'CCC', with a Stable Outlook. Fitch has affirmed Argentina's Long- term foreign-currency (FC) IDR at 'RD' and the short-term FC IDR at 'RD'. In addition, Fitch has upgraded the Country Ceiling to 'B' from 'CCC'. ============= B A H A M A S ============= ULTRAPETROL (BAHAMAS): Posts Revenue Update ------------------------------------------- Ultrapetrol (Bahamas) Limited announced the earnings results for Fiscal Year 2016 and Q1. The results came in during After-hours on May 12, 2016. Earnings per share were $-0.13. Ultrapetrol (Bahamas) Limited (ULTR) made into the market gainers list on Thursday, May 19, trading session with the shares advancing 17.30% or 0.045 points. Due to strong positive momentum, the stock ended at $0.3051, which is also near the day's high of $0.3799. The stock began the session at $0.3426 and the volume stood at 19,07,395 shares. The 52-week high of the shares is $1.37 and the 52 week low is $0.05. The company has a current market capitalization of $42,936 M and it has 1,40,72,90,00,000 shares in outstanding. As reported in the Troubled Company Reporter-Latin America on Jan. 20, 2016, Standard & Poor's Ratings Services said it lowered its corporate credit rating on South American shipping company Ultrapetrol (Bahamas) Ltd. to 'D' from 'CC'. At the same time, Standard & Poor's lowered its issue-level rating on the company's senior secured notes to 'D' from 'CC'. Standard & Poor's removed the ratings from CreditWatch, where they were placed Dec. 15, 2015. =========== B R A Z I L =========== BRAZIL: New Economic Team Downgrades Expectations for Budget ------------------------------------------------------------ Carla Simoes and Mario Sergio Lima at Bloomberg News report that Brazil's new economic team projects the largest budget deficit before interest payments on record this year, underscoring the challenge Acting President Michel Temer will face in turning around Latin America's biggest economy. Temer's administration will submit a bill that would allow it to report a primary budget gap of BRL170.5 billion ($48.4 billion) in 2016, Finance Minister Henrique Meirelles said, according to Bloomberg News. The estimate is realistic and transparent, and doesn't include possible spending cuts and revenue increases that require congressional approval, he said, Bloomberg News notes. It's for the central government only, meaning it doesn't take into consideration state or city budgets, Bloomberg News relays. The previous administration, led by Dilma Rousseff, originally expected to post a primary surplus for the central government of BRL24 billion in 2016, though it asked Congress in March to reduce the target to a surplus of BRL2.8 billion, Bloomberg News says. President Rousseff said at the time the primary budget result could go as low as a deficit of BRL97 billion if revenue fell short of forecast, Bloomberg News notes. Unlike the previous government, the Temer administration doesn't expect to revise its fiscal target numerous times throughout the year, said Budget Minister Romero Juca, Bloomberg News notes. It will instead try to continuously improve the bottom line. "This government's stance will be different," he told reporters, Bloomberg News notes. "The budget target isn't a soap opera that you release in episodes. It's done in one fell swoop," he added. Investors use Brazil's primary budget result to gauge the country's fiscal health and its ability to service debt, Bloomberg News notes. The country last year lost its investment-grade status after the three major rating companies expressed growing concern over government finances, Bloomberg News relays. If lawmakers don't approve the administration's request, it would have to cut spending further or risk missing its target and violating fiscal laws, Bloomberg News notes. Mr. Meirelles said he expects Congress to approve the new target by May 25, Bloomberg News discloses. The announcement in effect says that Brazil's public accounts are in worse shape than many had expected, Bloomberg News notes. The administration is betting that transparency will help revive investor confidence in the government, and that a clear picture of the country's financial woes will motivate lawmakers to back spending cuts, Bloomberg News relays. The administration is still developing strategies to shore up fiscal accounts, including policies designed to curtail pension payouts and raise revenue through the sale of state assets, Bloomberg News notes. It hasn't yet decided whether to increase taxes, or revive an unpopular levy on financial transactions, known in Brazil as the CPMF tax, Bloomberg News relays. Mr. Meirelles said the government will announce new measures soon. As reported in the Troubled Company Reporter-Latin America on March 29, 2016, severe contraction that was preceded by several years of below-trend growth has impaired Brazil's (Ba2 negative) underlying economic strength, despite the country's large and diversified economy, says Moody's Investors Service. The country's credit rating is also coming under pressure from the government's high level of mandatory spending. BRAZIL: PJT, Moelis, Houlihan Take Lead in Restructuring Big Firms ------------------------------------------------------------------ Cristiane Lucchesi at Bloomberg News reports that three U.S. investing banking boutiques are dominating the business of advising bondholders and companies through the biggest wave of debt restructuring in Brazil's history. PJT Partners, Moelis and Houlihan Lokey are helping to renegotiate about $21 billion of the $27 billion in international debt that's gone bad in Brazil during the nation's worst recession in a century, according to Bloomberg News. "U.S. firms have the competitive advantage of knowing international investors and U.S. bankruptcy procedures better than local players, and at the same time have no conflicts of interest because they don't provide any type of credit or underwriting to Brazilian firms," said Nick Leone, a partner in the restructuring and special-situations group at PJT, Bloomberg News notes. Bloomberg News relays that bankruptcy filings reached a record in Brazil this year as a credit squeeze left many firms without access to financing. The weaker currency is making it harder for companies to pay back dollar-denominated debt, which more than doubled since 2007 to about $120 billion, according to Bloomberg News. At the same time, profit and revenue at many of the biggest corporations tumbled after a two-year economic downturn and political crisis, Bloomberg News relays. Moelis opened its office in Sao Paulo in March 2014 and has about 15 employees in the country, said Otavio Guazzelli, the New York- based firm's co- head of investment banking for Brazil, who previously led that business for Citi and local firm BR Advisory Partners. Jorio Salgado-Gama, who co-heads the business with Mr. Guazzelli, is the former leader of BR Partners' merger-and- acquisition advisory business and also worked at Citi, Bloomberg News relays. Moelis is advising on the biggest restructuring in Brazil, representing bondholders of Oi, the nation's most indebted phone company, with about BRL49.4 billion ($14.2 billion) of debt as of March, Bloomberg News notes. It's also helping companies in local negotiations, including Log-In Logistica Intermodal, the logistics company that's refinanced BRL481 million in bank loans, Bloomberg News relays. Brazil Filings Hit a Record High of 162 in April "We are continuing to expand our office in Brazil as our strategic and financial-advisory business is very active right now," Mr. Guazzelli said, adding that a "a relevant local presence is a key competitive advantage because it helps us to better understand clients' priorities," Bloomberg News notes. He declined to comment on specific cases. PJT, a New York-based investment bank that doesn't have an office in Brazil, is advising Oi on how best to restructure its debt, the company said in a statement March 10, Bloomberg News discloses. The bank is also advising Gol Linhas Aereas Inteligentes, which has debt of $2.6 billion, and Odebrecht Oil & Gas, with $3 billion in international bonds, according to the companies, Bloomberg News relays. C.J. Brown and Nick Leone, who joined PJT as partners from Blackstone, lead the Brazil restructuring business. While at Blackstone, they advised former billionaire Eike Batista's oil and gas company, OGX, in its record-breaking 2013 bankruptcy case, which included $3.6 billion in international bonds, Bloomberg News notes. PJT in hired Morgan Stanley's Latin America chairman, Christopher Harland, as a partner for the M&A advisory team. Harland. Derek Pitts, a managing director at Houlihan Lokey, is advising bondholders at Gol, Odebrecht Oil & Gas and Grupo Schahin. The Los Angeles-based investment bank has no offices in Brazil, but maintains partnerships with local restructuring boutiques. Mr. Pitts said Houlihan Lokey might increase its investments in Brazil, without specifying how, Bloomberg News relays. PJT and Houlihan Lokey also declined to comment on specific clients. U.S. investment-banking boutiques face competition from local advisory firms such as G5, in which Evercore has a 47 percent stake, Bloomberg News notes. It was hired last year by building companies Engevix Engenharia and OAS. Rothschild has been also playing a role in the business of renegotiating debt for Brazilian companies, helping firms such as PDG Realty, once the largest Brazilian homebuilder by revenue, restructure its BRL5.8 billion of debt, Bloomberg News relays. Brazil's corporate credit crisis is poised to endure as long as the economy contracts and interest rates remain high. Companies seeking legal protection from their creditors surged to 571 this year through April, an increase of 97.58 percent over the same period of 2015, according to data provider Serasa Experian, Bloomberg News adds. As reported in the Troubled Company Reporter-Latin America on March 29, 2016, severe contraction that was preceded by several years of below-trend growth has impaired Brazil's (Ba2 negative) underlying economic strength, despite the country's large and diversified economy, says Moody's Investors Service. The country's credit rating is also coming under pressure from the government's high level of mandatory spending. BRAZIL: Demand for Corporate Loans Sinks in April ------------------------------------------------- Guillermo Parra-Bernal at Reuters reports that demand for loans among Brazilian companies slumped in April, credit research company Serasa Experian said, a sign that the highest borrowing costs in nine years and the harshest recession in eight decades hampered their ability to take on fresh credit. The number of requests for new loans dropped 11.6 percent in April from the prior month, and fell 4.2 percent from the same month a year earlier, Serasa said in a statement, according to Reuters. In the first four months, demand for consumer credit dropped 8.1 percent. The data underscores how borrowing in Brazil is reeling from the country's downturn, slumping commodities prices and fallout from a corruption scandal at state firms, the report notes. The report discloses that with bankruptcy filings doubling this year and the economy poised to contract by about 4 percent for a second year in a row, banks are also cutting credit access for small and large corporate borrowers, or refinancing loans only for existing clients. Moody's Investors Service said this month that the number of Brazilian companies facing high funding risks rose to 33 percent last year, from 28 percent in 2014, the report relays. More debt is maturing than companies can generate cash to make payments, while banks are refinancing fewer loans, the report showed, the report says. Banks had about BRL130 billion ($367 billion) in refinanced and restructured loans on their books last year, according to central bank data, Reuters relays. The combination of restricted credit supply and weak demand could lead banking industry profits to post their largest annual decline this year since at least 2000, according to Goldman Sachs Group Inc. analysts, the report adds. As reported in the Troubled Company Reporter-Latin America on March 29, 2016, severe contraction that was preceded by several years of below-trend growth has impaired Brazil's (Ba2 negative) underlying economic strength, despite the country's large and diversified economy, says Moody's Investors Service. The country's credit rating is also coming under pressure from the government's high level of mandatory spending. ========================== C A Y M A N I S L A N D S ========================== MORAR CAYMAN: Members' Final Meeting Set for June 2 --------------------------------------------------- The members of Morar Cayman Fund Limited will hold their final meeting on June 2, 2016, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ms. Claire Loebell c/o Steve Bull Ernst & Young Ltd. 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 9060 OLIMPIA PARTNERS: Member to Hear Wind-Up Report on June 1 --------------------------------------------------------- The member of Olimpia Partners Funds SPC, Ltd will hear on June 1, 2016, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eduardo Menge Av. Nacoes Unidas, 8501 - 31st floor Sao Paulo, SP 05425-070 Brazil Telephone: + 55 11 4872 2639 OLIMPIA PARTNERS MASTER: Member to Hear Wind-Up Report on June 1 ---------------------------------------------------------------- The member of Olimpia Partners Master Funds SPC, Ltd. will hear on June 1, 2016, at 10:15 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eduardo Menge Av. Nacoes Unidas, 8501 - 31st floor Sao Paulo, SP 05425-070 Brazil Telephone: + 55 11 4872 2639 RCUBE INVESTMENT: Shareholders' Final Meeting Set for May 30 ------------------------------------------------------------ The shareholders of Rcube Investment Management Limited will hold their final meeting on May 30, 2016, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: RCUBE Asset Management SAS Cyril Castelli 255 Rue Saint - Honore 2nd Floor, 75001 Paris France Telephone: +33 1 42 60 28 01 YELLOW STAR: Shareholder to Hear Wind-Up Report on June 13 ---------------------------------------------------------- The shareholder of Yellow Star PTC Limited will hear on June 13, 2016, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Estera Trust (Cayman) Limited Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands =============== C O L O M B I A =============== ECOPETROL: Main Pipeline Targeted in New Attack ----------------------------------------------- EFE News report that Colombian state oil company Ecopetrol denounced a new attack on the Cano Limon-Covenas pipeline in a rural area of the northeastern province of Arauca, which borders Venezuela. The attack on the country's largest pipeline occurred near the hamlet of El Consuelo, Ecopetrol said in a statement, according to EFE News. It caused crude to spill into a small river, prompting Ecopetrol to take steps to address the emergency, the report notes. Authorities are trying to determine who carried out the attack in that region, where National Liberation Army, or ELN, guerrillas have a large presence, the report relays. The report discloses that Ecopetrol says 14 attacks have been carried out this year on the Cano Limon-Covenas pipeline in the provinces of Arauca and Norte de Santander, causing crude to spill into the Bojaba, Arauca and Catatumbo rivers and several streams. The company also said these attacks endangered people's lives and posed a threat to the environment and flora and fauna in the areas where they occur, the report notes. The 770-kilometer-long (478-mile-long) Cano Limon-Covenas pipeline transports crude from oil wells in Arauca to the Caribbean port of Covenas, the report adds. Ecopetrol, which accounts for more than 60 percent of Colombia's oil production, also has exploration and production operations in Brazil, Peru and the U.S. Gulf of Mexico, the report adds. =================== C O S T A R I C A =================== BANCO INTERNACIONAL: Fitch Affirms 'BB+' LT Issuer Default Rating ----------------------------------------------------------------- Fitch Ratings has affirmed Banco Internacional de Costa Rica's (BICSA) Long-Term Issuer Default Rating (IDR) at 'BB+' and its Viability Rating (VR) at 'bb' following a peer review of Panama's midsized banks. Fitch also affirmed BICSA's National Ratings in Panama. The Rating Outlook for the bank's IDR and Long-Term National Rating remains Negative. A full list of rating actions follows at the end of this press release. KEY RATING DRIVERS - IDRS, VR, NATIONAL RATINGS AND SENIOR DEBT The IDRs, National and senior debt ratings assigned to BICSA reflect the support that, in Fitch's opinion, the entity will receive from its main shareholder, Banco de Costa Rica (BCR; 'BB+'/Outlook Negative), if needed. The bank's IDR and long-term National rating have a Negative Outlook, which is in line with BCR's IDR. The affirmation of the bank's Support Rating reflects Fitch's view that the probability of support remains unchanged. Fitch believes support would be forthcoming to manage the parent's reputational risk, if required. BICSA's VR reflects its adequate profitability, good capital ratios and low delinquency. The rating also considers the bank's highly concentrated funding, and tight liquidity that result in a lower financial flexibility compared to its peers. BICSA is characterized by low delinquency levels under international standards, with non-performing loan (NPL) ratios below 1% over the last four years. In 2015, this metric deteriorated somewhat, to 1.1%, as a result of the deterioration of a small number of debtors. The bank's delinquency metrics compare below local peers but this is expected given the Costa Rican exposure. The bank's financial performance is consistent with its corporate focus, although it did decline in 2015. As of December 2015, BICSA's return on assets was 0.9%, which is lower than its 2014 level, due to both the downward trend observed in its net interest margin (NIM) and greater provisioning expenses in 2015. Also, the bank's performance was hit by loan prepayments. The bank's already low NIM has been declining over the past few years as a result of fierce competition. BICSA's funding is highly concentrated, even when compared with other local corporate banks, which, due to the nature of their corporate focus, tend to exhibit higher concentration in their funding than universal banks. Most of the bank's funding stems from client deposits, primarily term deposits, with 50% of these being concentrated among the bank's 20 largest depositors. Liquidity is still at reasonable levels, with cash and equivalents and investments representing 16.6% of total financial liabilities showing a decline from previous years. Short-term refinancing risk is relevant, requiring an active asset-liability management to ensure the renewal of its funding sources. The combination of possible dried up funding sources and lower liquidity in 2016 poses a material challenge for the bank's financial profile. Fitch considers BICSA's capitalization to be good, with a Fitch Core Capital (FCC) of 12.4% as of December 2015. Contributing to the bank's good capitalization are its asset growth, which is in line with its internal generation of capital, and its zero dividend payout policy. As loan growth recovers in 2016 and 2017, capitalization could decline to around 11%, which would still be considered adequate. RATING SENSITIVITIES - IDR, VR and National Ratings The bank's IDRs, national and senior debt ratings are sensitive to a change, in Fitch's view, as to BCR's capacity or willingness to support BICSA. The Negative Outlook on BICSA's IDR reflects the likelihood that a downgrade of BCR's IDRs would result in a similar action on BICSA's IDR and national ratings. Reductions in the bank's VR could come from a material increase of the refinancing risk reflected in reductions of funding sources combined with a weak liquidity cushion. Also, a deterioration of the loan portfolio above 2% could put pressure on the VR. Fitch affirmed BICSA's ratings as follows: International ratings -- Long-Term IDR at 'BB+'; Outlook Negative; -- Short-Term IDR at 'B'; -- Viability Rating at 'bb'; -- Support Rating at '3'. National ratings -- Long-term National rating at 'AA-(pan)'; Outlook Negative; -- Short-term National rating at 'F1+(pan)'; -- Long-term senior unsecured bonds at 'AA-(pan)'; -- Commercial paper at 'F1+(pan)'. ============= G R E N A D A ============== GRENADA: Fiscal Performance Turned Balance Deficit to Surplus ------------------------------------------------------------- On May 18, 2016 the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Grenada and the fourth review of Grenada's performance under a program supported by a three-year arrangement under the Extended Credit Facility (ECF). The completion of the review enables the disbursement of the equivalent of SDR 2 million (about US$2.8 million), bringing total resources made available to Grenada under the ECF arrangement to the equivalent of SDR 10.04 million (about US$14.1 million). The Grenadian authorities continue to deliver a strong track record of program implementation and results. All performance criteria for end-December 2015 were met and most structural benchmarks for the fourth review were met on time or with minor delays, with timely corrective actions taken for two unmet benchmarks. Growth prospects and fiscal sustainability are improving as the authorities' home grown adjustment program enters its third year. Real GDP is estimated to have expanded by 4.6 percent in 2015, with strong growth in agriculture and tourism, as well as a rebound in construction. Growth is projected to moderate to 3 percent in 2016. The fiscal performance turned Grenada's primary balance from deficit to surplus for the first time in a decade and together with debt restructuring agreements reached with both external and domestic creditors, Grenada is making progress on fiscal and debt sustainability. The debt-to-GDP ratio declined from 107 percent in 2013 to 94 percent in 2015 and is projected to continue its downward path going forward. The 2016 budget aims to complete the programmed fiscal adjustment in support of meeting medium term debt targets, while focusing on structural reforms to promote economic growth and lower unemployment. Since the onset of the program, there has been progress with structural fiscal reforms, including strengthened tax administration, improved public finance management, an overhaul of the tax incentives regime, and a new rules-based fiscal policy framework, which now need to be made fully effective. The authorities are working to reform management of the public sector wage bill to ensure sustainable personnel expenditure. In addition, reforms to improve the investment and business climate and modernize the labor market are also proposed to unlock growth potential and lower unemployment. Following the Executive Board's discussion on Grenada, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, said: "Grenada's performance under its Fund-supported home-grown program remains satisfactory. The government is on track to complete the programmed fiscal adjustment and its structural reform agenda. The initial dividends from the program are emerging, as economic activity has picked up and the external position strengthened. The government's economic strategy going forward should focus on promoting broad-based growth and lowering unemployment while maintaining fiscal discipline in the context of its strengthened fiscal policy framework. "Grenada has made significant progress toward restoring debt sustainability, supported by budget discipline and steps toward a comprehensive debt restructuring. As wage and spending pressures are rising, the program is at an important juncture and continued policy resolve is essential to secure lasting success and to safeguard the credibility of the new rules-based policy framework. "The Grenadian authorities have pushed through important legislative reforms aimed at locking in fiscal discipline over the long term. Grenada has made significant progress improving public finance management, strengthening the fiscal policy framework, and overhauling the tax incentive regime. The next step is to implement the new legislations, with high priority on reforms to strengthen management of the public wage bill, tax administration, and public debt management. "To improve Grenada's competitiveness and growth potential, priorities should focus on removing impediments to private sector activity and strengthening labor market skills and mobility. To protect the most vulnerable, the government has safeguarded total social spending, but needs to follow through on its stated goals of improving the targeting and effectiveness of this spending. "Financial stability has improved, but continued efforts to strengthen the banking system are critical to enabling it to contribute more effectively to private sector growth. A proactive approach should be taken to address remaining vulnerabilities in the banking sector." Executive Board Assessment Executive Directors welcomed the strong economic recovery and the significant improvements in fiscal and external balances and debt reduction. Directors commended the authorities for steadfast implementation of their home-grown program, notably the successful fiscal consolidation. They stressed, however, that remaining challenges call for continued policy resolve in order to achieve the objectives of restoring debt sustainability, boosting medium- term growth prospects, and strengthening financial stability. Directors noted that downside risks to the outlook persist, and called for prioritizing structural reforms to promote growth and job creation. In particular, they encouraged the authorities to implement reforms to remove impediments to private sector activity, and improve labor market skills, matching and mobility. They supported a proactive approach to focus training on skills needed by the market, and at the same time improve productivity and reduce structural unemployment. Directors commended the authorities for the fiscal adjustment achieved thus far. In particular, they welcomed the primary surplus achieved in 2015 through important progress on tax policy and administration reforms and expenditure rationalization. Directors encouraged the authorities to safeguard this progress with strict budget execution and adherence to the new rules-based fiscal framework, while maintaining growth. Directors commended the authorities' steadfast implementation of their ambitious legislative reform agenda. They welcomed the impressive progress to overhaul the fiscal framework, reform the tax incentive regime, strengthen tax administration, and improve the monitoring and accountability of parastatal entities. Going forward, priority should be given to implementation of these reforms. Directors stressed that additional efforts are needed to strengthen public debt management and management of the public sector wage bill, as well to improve tax administration. Directors welcomed the progress made to implement the country's new growth and poverty reduction strategy. They underscored that close integration with the budget is needed to maximize the impact on competitiveness and growth. Directors urged the authorities to take steps to improve the targeting of the social safety net, as anticipated under the program, to protect the most vulnerable during fiscal adjustment and to ensure a lasting success of the program. Implementation of the Support for Education, Employment and Development (SEED) was encouraged. Directors welcomed the authorities' continued efforts to strengthen financial stability. They encouraged measures to address remaining vulnerabilities in the financial system while minimizing fiscal costs. Directors shared the view that a stronger banking system would contribute more effectively to private sector investment and growth. They called for continued efforts to strengthen regulation and supervision of the nonbank financial sector, as well as to enhance the AML/CFT framework. Directors acknowledged the progress made to restore debt sustainability under the ECF-supported program and underscored the need to complete the comprehensive debt restructuring. They stressed the importance of maintaining fiscal discipline over the medium term with the aim of meeting long-term debt reduction goals. ============= J A M A I C A ============= JAMAICA MERCHANT: Fitch Affirms BB+ Rating on US$250MM Notes ------------------------------------------------------------ Fitch Ratings has affirmed the ratings assigned to the future flow transactions sponsored by National Commercial Bank Jamaica Ltd. (NCBJ). The Rating Outlook is Stable. The series 2015-1 notes issued by Jamaica Merchant Voucher Receivables Limited are backed by future flows due from Visa International Service Association (Visa) and MasterCard International Incorporated (MasterCard) related to international merchant vouchers acquired by NCBJ in Jamaica. The series 2013-1 notes issued by Jamaica Diversified Payment Rights Co. are backed by existing and future USD-denominated diversified payment rights (DPRs) originated by NCBJ. DPRs are defined as electronic or other messages utilized by financial institutions to instruct NCBJ to make a payment to a beneficiary. On March 28, 2016, pursuant to the Jamaica Diversified Payment Rights Company Series 2013-1 Indenture Supplement, the controlling party exercised its option to defer the repayment of principal by 12 months, extending the first expected quarterly amortization payment to September 2017 and the expected final payment date to March 2021. This is the third and final deferral of principal permitted under the transaction documents. In its initial rating analysis, Fitch considered the potential deferral of principal payments by 12 months up to three times over the life of the transaction. Fitch's ratings address timely payment of interest and principal on a quarterly basis. KEY RATING DRIVERS Originator Credit Quality: Fitch currently rates NCBJ's Local Currency (LC) Issuer Default Rating (IDR) 'B'/Outlook Stable. Fitch also assigns NCBJ a going concern assessment (GCA) score of 'GC1', reflecting the bank's systemic importance as a top-tier financial institution representing more than 30% of system assets. Strength of Merchant Voucher Program: NCBJ's market-leading and embedded credit card franchise supports a dominant market share (62% of POS acquiring volume in 2015) and a growing level of international Visa and MasterCard merchant vouchers. The quarterly debt service coverage ratio (DSCR), which considers quarterly program flows and the maximum quarterly debt service for the life of the transaction, has averaged 8.3x since closing. Composition of DPR Flows: While the quarterly DSCR (which considers quarterly flows through DDBs [excluding 65% of flows from certain entities] and the maximum quarterly debt service for the life of the transaction) averaged 38.1x in 2015, a large portion of DPRs consists of government-related flows and/or capital flows, which Fitch considers more volatile than export- related payments and family remittances. Level of Future Flow Debt: Future flow debt represents approximately 10.0% of total consolidated liabilities and 84.3% of long-term funding. This level of future flow debt is a limiting factor to the transaction ratings. Partially-Mitigated Sovereign Risk: The transaction structures mitigate certain sovereign risks by keeping cash flows offshore until collection of periodic debt service, allowing the future flow transaction to be rated over the sovereign country ceiling. RATING SENSITIVITIES The ratings are linked to the credit quality of NCBJ and the ability of the securitized business lines to continue operating, as reflected by the GCA score. Although the future flow ratings are sensitive to changes in the bank's LC IDR, a one-notch movement in the LC IDR may not lead to a similar rating action on the transaction ratings. In addition, severe reductions in coverage levels or an increase in the level of future flow debt as a percentage of the bank's liabilities could result in rating downgrades. Fitch has affirmed these ratings: Jamaica Merchant Voucher Receivables Limited -- USD$250 million series 2015-1 notes at 'BB+'; Outlook Stable. Jamaica Diversified Payment Rights Company -- USD$125 million series 2013-1 notes at 'BB'; Outlook Stable. =========== M E X I C O =========== BBVA BANCOMER: Fitch Affirms 'BB+' Rating on LT Jr. Sub. Notes -------------------------------------------------------------- Fitch Ratings has affirmed the ratings for BBVA Bancomer including its Viability rating (VR) at 'a-' and its Long- and Short-term foreign- and local-currency Issuer Default Ratings (IDRs) at 'A- /F1'. Fitch has revised the bank's Rating Outlook to Stable from Positive. Fitch has also affirmed the long- and short-term national scale ratings of BBVA Bancomer and the following affiliates at 'AAA(mex)/'F1+(mex)': -- Casa de Bolsa BBVA Bancomer, S.A de C.V.,Grupo Financiero BBVA Bancomer (CBBB) -- Facileasing, S.A. de C.V. (Facileasing) A full list of rating actions follows at the end of this press release. The revision of the bank's Outlook to Stable reflects that despite BBVA Bancomer's relatively adequate loss absorption capacity in terms of capital and reserves for impaired loans, the trend of these metrics has not been as strong as Fitch expected, and therefore it is difficult to envision that the bank's VR could be two notches above the sovereign rating. A loan to deposit ratio slightly worse than Fitch's expectations and relatively weaker than those shown by its closest peers is also a driver of the Outlook revision. The bank's VR and Long-term IDRs are one notch above Mexico's sovereign rating. KEY RATING DRIVERS VR, IDRS, NATIONAL RATINGS AND SENIOR DEBT BBVA Bancomer's IDRs and National Ratings are driven by its standalone profile as reflected by its VR. The bank's VR and IDRs do not factor in any extraordinary support from its parent, despite being considered by Fitch as a core subsidiary of its holding company, Spain's Banco Bilbao Vizcaya Argentaria (BBVA, rated 'A-'/Stable Outlook). The affirmation of BBVA Bancomer's VR is driven by the consistency of its overall sound profitability metrics, as a result of its strong recurring and diversified revenue and growing lending activities. Its operating profitability, measured as Operating Profit to risk-weighted assets (RWAs) stood close to 3% in recent years (2012 - 2015 average: 2.8%) and increased further as of March 2016 (3.8%). The bank's operating efficiency ratio (cost-to- income) is also strong and consistently below 45%; these levels compare favorably with other systemically important banks in Mexico and Latin America. The ratings also factor in BBVA Bancomer's leading and diversified franchise with a stable local market share above 20% of total assets, customer deposits and loan portfolio, widely beyond its closest competitor. The bank's ample customer deposit base is also one of the pillars of its franchise as it has a large portion of demand deposits (78% at 1Q16) that have proven stable and aided in maintaining low funding costs. In Fitch's opinion, one of the main constrains of BBVA Bancomer's is its capital position. Even though the entity is able to generate good recurring earnings, its internal capital generation is constrained by the relatively high dividend pay-out ratio, which was on average 73% between 2011 and 2014. Fitch does not expect a significant change in this ratio. BBVA Bancomer's Fitch core capital (FCC) ratio stood at 10.9% in the first quarter of 2016 (1Q16) and at 11.24% as of December 2015. BBVA Bancomer's asset quality metrics are stable; its non- performing loan (NPL) ratio has remained below 3% since 2014, with further improvement at YE15 and 1Q16. Fitch considers these are adequate levels, considering the high proportion of retail lending and the relatively low reliance on charge-offs. A more stringent asset quality measure is considered also by Fitch, the adjusted impairment ratio that sums up impaired loans plus the last 12- month charge-offs. Compared to the largest seven banks of the banking system (G7), BBVA Bancomer's adjusted ratios compare favorably. Rather than being a constraint for its ratings, the agency views the improved asset quality metrics as strength for BBVA Bancomer. SUPPORT RATING Fitch affirmed BBVA Bancomer's Support Rating at '2' reflecting the view that there is high probability of support to BBVA Bancomer from BBVA if needed given the core role of the Mexican subsidiary for its parent. SUBORDINATED AND SENIOR DEBT The bank's global junior subordinated debt is rated four notches below the anchor rating, BBVA Bancomer's VR, while the foreign subordinated debt is rated three notches below its VR. The ratings are driven by Fitch's approach of factoring in the loss severity in view of the respective degrees of subordination (-1 for the plain subordinated notes and -2 for the junior subordinated notes), plus the effect of non-performance risk (-2 notches for both types of securities). Fitch rates the local debt issued by BBVA Bancomer and Facileasing, at their respective corporate rating level, as the debt is senior unsecured. CBBB NATIONAL RATINGS (SUBSIDIARY) The ratings of CBBB reflect the legal obligation of GFBB to support its subsidiaries, as well as Fitch's view that this entity remains core for the group's strategy and overall business profile. The credit profile of GFBB is associated with that of its main subsidiary, BBVA Bancomer. FACILEASING'S NATIONAL RATINGS (SUBSIDIARY) The ratings of Facileasing factor in that in Fitch's view this entity is core affiliate for GFBB, although its ultimate parent is Spain's BBVA. Fitch considers Facileasing is an integral part of its local franchise, which explains that its ratings are aligned to GFBB's operating subsidiaries and reflect the propensity of support from GFBB if needed. RATING SENSITIVITIES VRs, IDRS AND NATIONAL RATINGS The bank's ratings have limited upside potential over the foreseeable future, given that these are already one notch above the sovereign ratings. Upside potential will only come from an improved operating environment and a significantly enhanced financial profile in terms of capitalization and funding. The ratings could be downgraded upon a sustained deterioration of the bank's stable profitability, asset quality, and capitalization metrics, as a FCC ratio deteriorating to levels consistently below 10%. However, Fitch believes this is unlikely at present given the bank's stable and resilient recurring earnings. In addition, a downgrade of the sovereign's rating could also affect BBVA Bancomer's ratings in the same direction. The national-scale ratings could only be affected in the event of a multi-notch downgrade of BBVA Bancomer's VR, which is also an unlikely scenario at present. SUPPORT RATING BBVA Bancomer's Support Rating could be affected if Fitch changes its view of BBVA's ability or willingness to support the Mexican bank, which is an unlikely scenario. SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The bank's subordinated debt ratings will likely mirror any change in its VR, as these issue ratings are expected to maintain the same relativity to BBVA Bancomer's intrinsic profile. Senior debt ratings would mirror any changes in the bank's IDRs or national- scale ratings. CBBB's NATIONAL RATINGS A downgrade of CBBB will be driven by any potential changes in BBVA Bancomer's ratings or in the legal framework that could alter the propensity of GFBB to support them (an unlikely scenario at present) and/or by a change in each entity's strategic importance to the group. FACILEASING'S NATIONAL RATINGS A potential downgrade of Facileasing's ratings will be driven by a change on Fitch's view about the strategic importance of this entity to the group. Fitch affirms the following ratings: BBVA Bancomer, S.A. -- Long-term foreign and local currency IDRs at 'A-'; Outlook Revised to Stable from Positive; -- Short-term foreign and local currency IDRs at 'F1'; -- Viability rating at 'a-'; -- Support rating at '2'; -- National-scale long-term rating at 'AAA(mex)'; Outlook Stable; -- National-scale short-term rating at 'F1+(mex)'; -- Long-term 'plain vanilla' subordinated notes at 'BBB-'; -- Long-term junior subordinated notes at 'BB+'; -- Long-term senior unsecured global notes at 'A-'; -- Long-term Tier 2 subordinated capital notes at 'BBB-'; -- National-scale long-term rating for local senior unsecured debt issues at 'AAA(mex)'; -- National-scale long-term rating for local issues of market linked securities at 'AAAemr(mex)'. Casa de Bolsa BBVA Bancomer, S.A. de C.V. -- National-scale long-term rating at 'AAA(mex)'; Outlook Stable; -- National-scale short-term rating at 'F1+(mex)'. Facileasing, S.A. de C.V. -- National-scale long-term rating at 'AAA(mex)'; Outlook Stable; -- National-scale short-term rating affirmed at 'F1+(mex)'; -- National-scale long-term rating for local senior unsecured debt issues at 'AAA(mex)'; -- National-scale short-term rating for local senior unsecured debt issues at 'F1+(mex)'. ====================== P U E R T O R I C O ====================== ADELPHIA COMMUNICATIONS: Extends Exchange Offers Until May 26 ------------------------------------------------------------- ACC Claims Holdings, LLC on May 20 announced the amendment and extension of offers to Eligible Holders (as defined below) to exchange (i) class A limited liability company interests of ACC Claims Holdings, LLC for up to all of the outstanding ACC Senior Notes Claims (Class ACC 3) allowed under the Plan of Reorganization, including any post-petition pre-effective date interest and post-effective date interest to and including the extended expiration date of the offers (the "Senior Claims"), against Adelphia Communications Corporation, and (ii) class B limited liability company interests of ACC Claims Holdings, LLC for up to all of the outstanding ACC Trade Claims (Class ACC 4) allowed under the Plan of Reorganization, including any post- petition pre-effective date interest and post-effective date interest to and including the extended expiration date of the offers (the "ACC 4 Claims"), and ACC Other Unsecured Claims (Class ACC 5) allowed under the Plan of Reorganization, including any post-petition pre-effective date interest and post-effective date interest to and including the extended expiration date of the offers (the "ACC 5 Claims" and, together with the ACC 4 Claims, the "Other Claims"; the Senior Claims and the Other Claims, together, the "Claims"), against Adelphia Communications Corporation until 5:00 p.m., New York City time, on Thursday, May 26, 2016. The exchange offers were previously scheduled to expire at 5:00 p.m., New York City time, on Thursday, May 19, 2016. As of 5:00 p.m., New York City time, on Thursday, May 19, 2016, Eligible Holders of $3,996,064,458.00 original principal amount of ACC Senior Notes (as defined in the Plan of Reorganization) outstanding, Eligible Holders of $273,289,582.05 of ACC 4 Claims outstanding and Eligible Holders of $44,646,944.11 of ACC 5 Claims outstanding had validly tendered their Claims pursuant to the exchange offers. Prior to the date of the amendment, the ACC Claims Holdings, LLC's Operating Agreement provided that the terms and provisions of such Operating Agreement may be modified or amended from time to time only by a written instrument executed by the managing member; provided that Operating Agreement may not be materially amended (other than certain specified amendments) without the written consent of (i) the managing member and (ii) the members holding a majority of the Class A Interests and Class B Interests (treating such classes as a single class of Interests acting together). ACC Claims Holdings, LLC has decided to amend and restate its Operating Agreement such that the Operating Agreement may not be materially amended without the written consent of the members holding at least 80% of the then outstanding Class A Interests and Class B Interests (treating such classes as a single class of Interests acting together). ACC Claims Holdings, LLC recognizes that the Claims will continue to accrue post-effective date interest between the original expiration date and the extended expiration date. Therefore, the consideration offered to Eligible Holders will be increased by a corresponding amount. Except as set forth herein, the terms and conditions of the exchange offers remain unchanged. ACC Claims Holdings, LLC reserves the right to further extend the exchange offers prior to the termination of the extended expiration date. ACC Claims Holdings, LLC does not contemplate any such additional extensions of the exchange offers at this time. The exchange offers are being made pursuant to (i) the offers to exchange, dated March 3, 2016, and supplemented and amended on March 9, 2016, March 21, 2016, April 1, 2016, April 8, 2016, April 15, 2016, April 21, 2016, April 29, 2016, May 5, 2016, May 13, 2016, and on the date hereof and (ii) the related letter of transmittal, dated as of March 3, 2016 and supplemented and amended on March 21, 2016 and on the date hereof. The exchange offers will only be made, and the offers to exchange and the related letter of transmittal will only be distributed to, holders who complete, execute and return an eligibility form confirming that they are qualified purchasers ("Qualified Purchasers") as defined in Section 2(a)(51)(A) of the Investment Company Act of 1940, as amended (except to the extent waived by the managing member of ACC Claims Holdings, LLC), excluding Benefit Plan Investors (as defined below) (except as provided for and subject to the terms of the exchange offers, as amended), each of which is (x) a qualified institutional buyer within the meaning of Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), (y) an institutional investor that qualifies as an "accredited investor" pursuant to Rule 501(a)(1), (2), (3) or (7) under the Securities Act or (z) not a U.S. person in an offshore transaction, in each case as defined in Regulation S under the Securities Act (such persons, "Eligible Holders"). "Benefit Plan Investor" means a benefit plan investor, as defined in Section 3(42) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and includes (a) an employee benefit plan (as defined in Section 3(3) of Title I of ERISA) that is subject to the fiduciary responsibility provisions of Title I of ERISA, (b) a plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or (c) any entity whose underlying assets include, or are deemed for purposes of ERISA or the Code to include, "plan assets" by reason of any such employee benefit plan's or plan's investment in the entity. Holders who desire to obtain and complete an eligibility form should either visit the website for this purpose at ww.dfking.com/adelphia or call D.F. King & Co., Inc., the information agent and exchange agent for the exchange offers, at (800) 761-6523 FREE (toll-free) or (212) 269- 5550 (collect for banks and brokers only). The managing member of ACC Claims Holdings, LLC may, in its sole discretion, waive the restriction on tenders by Benefit Plan Investors. However, the managing member is not required to accept a tender in whole or in part from an investor that is a Benefit Plan Investor, and reserves the right to reject in its complete discretion any tender by a Benefit Plan Investor. About Adelphia Communications Based in Coudersport, Pennsylvania, Adelphia Communications Corporation was once the fifth-biggest cable company. Adelphia served customers in 30 states and Puerto Rico, and offered analog and digital video services, Internet access and other advanced services over its broadband networks. Adelphia collapsed in 2002 after disclosing that founder John Rigas and his family owed $2.3 billion in off-balance-sheet debt on bank loans taken jointly with the company. Mr. Rigas was sentenced to 12 years in prison, while son Timothy 15 years. Adelphia Communications and its more than 200 affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 02-41729) on June 25, 2002. Willkie Farr & Gallagher represented the Debtors in their restructuring effort. PricewaterhouseCoopers served as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman LLP and Klee, Tuchin, Bogdanoff & Stern LLP represented the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas-Managed Entities, were entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision LLC. The RME Debtors filed for Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642) on March 31, 2006. Their cases were jointly administered under Adelphia Communications and its debtor-affiliates' Chapter 11 cases. The Bankruptcy Court confirmed the Debtors' Joint Chapter 11 Plan of Reorganization on Jan. 5, 2007. The Plan became effective on Feb. 13, 2007. The Adelphia Recovery Trust, a Delaware Statutory Trust, was formed pursuant to the Plan. The Trust holds certain litigation claims transferred pursuant to the Plan against various third parties and exists to prosecute the causes of action transferred to it for the benefit of holders of Trust interests. Lawyers at Kasowitz, Benson, Torres & Friedman, LLP (NYC), represent the Adelphia Recovery Trust. AMBITEK INDUSTRIAL: Wants Plan Filing Period Extended by 26 Days ---------------------------------------------------------------- Ambitek Industrial Contractors Inc., et al., request the U.S. Bankruptcy Court for the District of Puerto Rico for an extension of 26 additional days to file the Disclosure Statement and Plan of Reorganization, and to extend the exclusivity period. The Debtors also request that the deadline to obtain the votes for the Plan be extended for a term of 60 days after the order approving the Disclosure Statement. The Debtors' request is based upon these facts: a. the size and the complexity of the case due to the fact that four cases have been consolidated and duplicated proof of claims have been filed merit the extension hereby requested; b. the Debtors are meeting their obligations as debtors-in- possession. Monthly Operating Reports have been filed and quarterly fees have been paid; c. any extension of time will not harm the creditors but will increase the possibilities of a successful reorganization; d. the Debtors make this request in good faith and without any intent to cause undue delay to the proceedings. The Debtors are represented by: Mary Ann Gandia-Fabian, Esq. P.O. Box 270251 San Juan, Puerto Rico 00928 Tel: (787) 390-7111 Fax: (787) 729-2203 E-mail: gandialaw@gmail.com Ambitek Industrial Contractors Inc filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 15-09532) on Nov. 30, 2015. Mary Ann Gandia-Fabian, Esq., at Gandia-Fabian Law Office serves as the Debtor's bankruptcy counsel. On Oct. 21, 2015, Cyma Cleaning Contractors, Inc., Innova Industrial Contractor, Inc., and Handy Man Services, Inc., were consolidated under the case 15-06582. On Dec. 23, 2015, Ambitek Industrial Contractors, Inc., was consolidated with Cyma Cleaning Contractors, Inc., Innova Industrial Contractor, Inc., and Hany Man Services, Inc., under the case 15-06582. GENTE JOVEN: Hires Luis D. Flores Gonzalez as Bankruptcy Counsel ---------------------------------------------------------------- Gente Joven Guayama, Inc., asks for authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ the Law Offices of Luis D. Flores Gonzalez, attorney at law, as bankruptcy counsel. The Debtor said it needs the firm in connection with the filing of the Schedules, the Statement of Financial Affairs filed under Chapter 11, the payment plan that will be proposed, the examination of the claims filed, the Disclosure Statement and other related matters. Mr. Gonzalez will be paid at these hourly rates: Luis D. Flores Gonzalez, Esq. $200 Certified Legal Assistants $60 Paraprofessionals $40 Mr. Gonzalez tells the Court that he has received a retainer in the case in the amount of $3,000, which sum upon information and belief, was generated by the Debtor. Mr. Gonzalez assures the Court that neither he nor any member or associate of the firm holds any relationship or connection with the Debtor, creditor or any other party in interest nor their attorneys and accountants, the U.S. Trustee or any person employed in the office of the U.S. Trustee in the present nor any related matter. Mr. Gonzalez tells the Court that he is a disinterested party as required by 11 U.S.C. Sec. 327(a). Mr. Gonzalez can be reached at: Luis D. Flores Gonzalez, Esq. Luis D. Flores Gonzalez 121505 Georgetti No. 80 Suite 202 Rio Piedras, Puerto Rico 00925 Tel: (787) 758-3606 E-mail: ldfglaw@coqui.net ldfglaw@yahoo.com Gente Joven Guayama, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-02942) on April 14, 2016. Luis D. Flores Gonzalez, Esq., at Luis D. Flores Gonzalez Law Office serves as the Debtor's bankruptcy counsel. ================================ T R I N I D A D & T O B A G O ================================ CL FINANCIAL: Clico Stakeholders Want Money and Control Change -------------------------------------------------------------- Trinidad Express reports that a new, mixed group of Clico- aggrieved, calling itself the Clico Stakeholders Alliance (CSA), is calling on Government to pay Clico policyholders owed money with their "contractual obligations" now due (such as annuities). At a press conference at Cascadia Hotel in Port of Spain, the CSA also said Government must relinquish control of the insurance company under the Central Bank Act, according to Trinidad Express. CL Financial Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. Colonial Life Insurance Company Ltd. (CLICO) is a member of the CL Financial Group. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 6, 2015, Trinidad Express reports that the Constitution Reform Forum (CRF) has called on Finance Minister Larry Howai to refrain from embarking on an "unnecessary drain on the Treasury" by appealing the decision of a High Court judge, who ordered that the Minister fulfil a request by president of the Joint Consultative Council (JCC) Afra Raymond for financial details relating to the bailout of CL Financial Limited. The CRF issued a release stating that if the decision is appealed, not only will it be a waste of finance but such a course of action will also demonstrate a "lack of commitment by the Government to the spirit and intent of the Freedom of Information Act FOIA", under which the request was made, according to Trinidad Express. On July 7, 2014, Trinidad Express said that the Central Bank has placed the responsibility of voluntary separation package (VSEP) negotiations for workers at insurance giant Colonial Life Insurance Company Ltd. (CLICO) with the company's board, after which it will review accordingly, the bank said in a statement. The bank's statement follows protest action by CLICO workers, supported by their union, the Banking, Insurance and General Workers' Union (BIGWU), outside the Central Bank in Port of Spain, according to Trinidad Express. In a separate TCRLA report on June 26, 2014, Caribbean360.com said that the Trinidad and Tobago government has welcomed an Appeal Court ruling that the Attorney General Anand Ramlogan said saves the country from paying out more than TT$1 billion (TT$1 = US$0.16 cents) to policyholders of the cash-strapped CLICO. The Appeal Court overturned the ruling of a High Court that ruled members of the United Policyholders Group (UPG) were entitled to be paid the full sums of their polices. CLICO financially caved in on itself at the end of 2008 after the investment instruments of major policyholders matured and they wanted hundreds of millions of dollars they were owed. On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that over TT$8 billion worth of CLICO's profitable business will be transferred to Atruis, a new company that will be owned by the state. The Trinidad Express said that the Cabinet approved the transfer as the Finance and General Purposes Committee continues to discuss a letter of intent hammered out by the Ministry of Finance and CL Financial's 400 shareholders, which envisions taxpayers will recover the more than TT$20 billion Government has injected since 2009 to keep CL subsidiary CLICO and other companies afloat. At its annual general meeting in Sept. 2013, CL Financial shareholders voted to extend the agreement with Government until August 25, 2014, while Cabinet decides on a new framework accord to recover the debt owed to Government through divestment of CL subsidiaries, including Methanol Holdings, Republic Bank, Angostura Holdings, CL World Brands and Home Construction Ltd., Caribbean360.com related. Proceeds from the divestment of these assets will go toward Government's recovery of the billions it pumped into CLICO. TCRLA reported on Sep 22, 2011, Caribbean News Now, citing Reuters, reported that the cost of the Trinidad and Tobago government bailout of CL Financial Limited is likely to rise to more than TT$3 billion. *********** 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 comillionercial 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 * * *