/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160615.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, June 15, 2016, Vol. 17, No. 117 Headlines A R G E N T I N A BUENOS AIRES: S&P Assigns 'B-' Rating on $500MM Sr. Unsec. Notes B R A Z I L BRAZIL: Retail Sales Climb in April as Consumer Confidence Rises PETROLEO BRASILEIRO: New CEO Has Good News for Ethanol Makers C A Y M A N I S L A N D S BBGP AIRCRAFT: Placed Under Voluntary Wind-Up CASTLE HILL: Creditors' Proofs of Debt Due July 6 CORSAIR FUND: Contributories' First Meeting Set for June 29 DEIRA ONE: Creditors' Proofs of Debt Due July 6 FOOK SING: Creditors' Proofs of Debt Due July 6 MARUZEN LTD: Creditors' Proofs of Debt Due July 6 MONEDA ABSOLUTE: Placed Under Voluntary Wind-Up PARMALAT CAPITAL: Creditors' Proofs of Debt Due Aug. 6 SADUF SEVEN: Creditors' Proofs of Debt Due July 6 SADUF EIGHT: Creditors' Proofs of Debt Due July 6 SADUF NINE: Creditors' Proofs of Debt Due July 6 SADUF TEN: Creditors' Proofs of Debt Due July 6 WALTER FUND: Creditors' Proofs of Debt Due July 6 C H I L E CORP GROUP: S&P Lowers ICR to 'B'; Outlook Negative H O N D U R A S HONDURAS: Economic Program With the IMF Remains on Track P U E R T O R I C O PUERTO RICO: US Supreme Court Strikes Down Debt Restructuring Law SPORTS AUTHORITY: TSA Seeks to Sell Store #444 to Raymours SPORTS AUTHORITY: Taps Hilco to Sell Intellectual Property SPORTS AUTHORITY: Taps Deloitte as Tax Services Provider SPORTS AUTHORITY: ASICS Appeals Merchandise Sale Order SYFOOD GROUP: Hires Hector Pedrosa-Luna as Counsel T R I N I D A D & T O B A G O * TRINIDAD & TOBAGO: Stagnant as LNG Countries Boost Production X X X X X X X X X LATAM: ECLAC Welcomes Debt Relief Support - - - - - ================= A R G E N T I N A ================= BUENOS AIRES: S&P Assigns 'B-' Rating on $500MM Sr. Unsec. Notes ---------------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue-level rating on the province of Buenos Aires' (PBA; B-/Stable/--) senior unsecured notes for $500 million due 2019 and senior unsecured notes for $500 million due 2027. The issuance of these notes follows the province's March 2016 issuance for $1.25 billion. PBA will use proceeds from both issuances to fund social programs, and infrastructure and other projects, improve the province's debt maturity profile, and make debt service payments. Additionally, PBA will use a small portion of the proceeds for special municipal funds, which were created under the province's 2016 budget. S&P don't view the latest debt issuance as harmful to the province's financial profile, and S&P expects PBA's moderate debt burden will continue to support its credit profile. Including the new $1 billion notes, S&P estimates that the province's total debt stock will reach ARP168 billion by the end of 2016 from ARP122 million at the end of 2015. However, S&P believes that the impact of this issuance and other new borrowings on the province's debt stock will be tempered at year-end by debt repayments and inflation, which will nominally increase the province's operating revenues. Therefore, S&P expects PBA's debt to reach 44% of operating revenues by the end of 2016. The 'B-' foreign currency rating on the PBA is the same as its 'b-' stand-alone credit profile (SACP). The SACP is not a rating but a means of assessing the intrinsic creditworthiness of a local and regional government (LRG) under the assumption that there's no sovereign rating cap. The SACP results from the combination of S&P's assessment of an LRG's individual credit profile and the institutional framework in which it operates. PBA, like all LRGs in Argentina, operates under a very volatile and unbalanced institutional framework. At the same time, PBA's very weak budgetary performance and flexibility, and its weak economy, financial management, and liquidity are rating constraints. On the other hand, the province's moderate contingent liabilities and debt burden support its creditworthiness. PBA shares critical fiscal links with the national government through the latter's significant revenue distribution, direct financing of infrastructure projects, and authorization for LRGs to issue new debt. In addition, the sovereign's cure of its 2014 default in May 2016 has improved Argentine LRGs' access to international capital markets to issue new debt. S&P believes this event has boosted the province's ability to access external liquidity and execute its ambitious capex plans. The stable outlook on the PBA mirrors the one on the sovereign. The outlook reflects renewed dialogue between LRGs and the federal government about tackling fiscal and economic challenges in the short to medium term. Given that S&P don't believe that PBA could meet the conditions to have a higher rating than the sovereign, S&P would only consider raising its ratings on the province in the next 12 months if S&P was to raise Argentina's foreign and local currency ratings, along with the transfer and convertibility assessment (T&C). On the other hand, S&P could lower the ratings on PBA during the same period if Argentina's T&C assessment weakens; if S&P were to lower the sovereign local or foreign currency ratings; or if S&P perceives that the province's financial commitments are unsustainable in the long term or that PBA face a near-term payment crisis. RATINGS LIST Province of Buenos Aires Issuer credit rating B-/Stable/-- Rating Assigned Province of Buenos Aires $500M Sr. Unsec. Notes due 2019 B- $500M Sr. Unsec. Notes due 2027 B- =========== B R A Z I L =========== BRAZIL: Retail Sales Climb in April as Consumer Confidence Rises ---------------------------------------------------------------- David Biller at Bloomberg News reports that Brazil's retail sales rose in line with analysts' expectation in April as consumer confidence rebounded and economists forecast Latin America's largest economy may emerge from recession quicker than initially thought. Sales rose 0.5 percent in April after a 0.9 percent drop the prior month, the national statistics agency said, according to Bloomberg News. That was in line with the median estimate from 36 economists surveyed by Bloomberg. Sales plunged 6.7 percent in April versus the same month in 2015, Bloomberg News notes. Consumer confidence is showing signs of potential rebound as annual inflation slows and economists improve their forecasts for economic growth, Bloomberg News relates. Even so, sentiment remains near historic lows with unemployment on the rise, Bloomberg News says. In the first quarter Latin America's largest economy shrank for the fifth straight period, dragged down by shrinking consumer spending in each, Bloomberg News notes. Bloomberg News notes that sales of food, beverages and tobacco products at hypermarkets and supermarkets rose 1 percent in April, after a 1.4 percent decline the prior month. Sales of apparel rose 3.7 percent, Bloomberg News relates. Consumer spending in the first quarter contracted by 1.7 percent, the sector's fifth straight decline, dragging the overall economy to fall 0.3 percent, Bloomberg News relays. Still, that was less than the median forecast from economists, who have since been boosting their calls, Bloomberg News notes. Brazil's economy contracted 3.8 percent in 2015 and economists surveyed by the central bank see it shrinking by less this year and resuming growth in 2017, says the report. BNP Paribas revised its 2016 GDP forecast to a contraction of 3 percent, versus a prior forecast for a 4 percent decline, Bloomberg News discloses. Itau Unibanco Holding SA also improved its forecast for 2016 GDP to a 3.5 percent contraction, from 4 percent previously, Bloomberg News relays. Broad retail sales, which include cars, car parts, and construction materials, fell 1.4 percent from March, and 9.1 percent versus April last year, according to the statistics institute, 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. PETROLEO BRASILEIRO: New CEO Has Good News for Ethanol Makers -------------------------------------------------------------- Fabiana Batista at Bloomberg News reports that the new chief executive officer of Petroleo Brasileiro SA looks like he's going to be making fans in the ethanol industry. Pedro Parente, who was sworn in as the head of Brazil's state- owned oil producer this month, has made clear that the era of government-subsidized domestic gasoline is over, according to Bloomberg News. That's likely to raise prices and make it more attractive for drivers to fill their tanks with ethanol, made from sugar cane, Bloomberg News notes. In Brazil, flex-fuel cars can run on either and the two compete directly. While rising gasoline costs will likely add more inflation pressure, it's a boon for ethanol producers including Bunge Ltd., Cargill Inc. and China's Cofco Corp, Bloomberg News says. Traditionally, drivers choose ethanol when it's below 70 percent of the price of gasoline, because the biofuel yields about 30 percent less energy per liter, Bloomberg News discloses. The country's sugar millers have been collecting a bigger cane crop, so there will be plenty of raw material available to produce extra fuel, Bloomberg News says. Mr. Parente, a 63-year-old engineer who was previously the head of Bunge's Brazil unit and chairman of the sugar and ethanol group Unica, said June 1 that fuel price decisions will now be made according to Petrobras's best interests, rejecting any political interference, Bloomberg News discloses. The company reiterated that stance in comments to Bloomberg News. The move comes as the CEO has vowed to clean up the company that was "victimized" by a group of corrupt executives who were looking for personal enrichment and power, he has said, Bloomberg News notes. Vocal Critic When he was still at Bunge, Mr. Parente was among those who criticized government interference in fuel markets. In a public event held in Sao Paulo in September 2012, he told former finance minister Guido Mantega that caps on fuel prices had been hurting the ethanol industry and curbing investments, local newspapers reported, Bloomberg News notes. Bloomberg News relays that Mr. Parente's recent pledges make room for a fuel-price hike in Brazil. State-run Petrobras imports gasoline because it doesn't produce enough to meet demand in Latin America's biggest economy. It has been selling the fuel domestically at a loss following a recent surge in international prices, Bloomberg News says. The price for the gasoline that Petrobras sells is currently about 8 percent below import-cost levels, William Hernandes, an analyst at consulting firm FG Agro, said by phone, Bloomberg News notes. "It's early to say, but it gives us more confidence that gasoline prices may be raised if such losses persist," Luis Roberto Pogetti, chairman of sugar and ethanol exporter Copersucar, said by phone from Rio de Janeiro, where he attended Mr. Parente's swearing-in ceremony, Bloomberg News relays. Refining Losses A gasoline hike in September 2015 and a recent board rejection to a government proposal to cut fuel prices signaled that political interference in Petrobras had already been fading over the past months, Mr. Pogetti said, Bloomberg News notes. Shares of White Plains, New York-based Bunge, which has more than third of its long-term assets in Brazil, have jumped 26 percent since the start of March. That compares with a 13 percent gain for the S&P 500 Materials Index. Bunge is one of the companies set to benefit from a tax increase on gasoline, Bloomberg Intelligence analyst Tobias Nystedt said in a note. Petrobras's refining division reported tens of billions of dollars in losses during the commodities boom because it sold imported gasoline and diesel at a loss as part of a wider government push to curb inflation, Bloomberg News notes. Fuels is one of the most important items for inflation in Brazil, accounting for 5.4 percent of the IPCA index. "Raising fuel prices means injecting inflation in the vein," the report quoted Adriano Pires, head of energy consulting firm CBIE, as saying. Current gasoline prices are already 11 percent higher than a year ago after Petrobras raised its sale prices. More hikes are likely to come as the company needs to make up for losses mounted over the past five years, Mr. Pires said, Bloomberg News relays. "Mr. Parente's challenge will be to maintain domestic gasoline prices at least 10 percent higher than imports costs in the next few years, or Petrobras will remain stuck in its crisis." As reported in the Troubled Company Reporter-Latin America on Feb. 26, 2016, Moody's Investors Service downgraded all ratings for Petroleo Brasileiro S.A. - PETROBRAS ("Petrobras")'s and ratings based on Petrobras' guarantee, including the company's senior unsecured debt and Corporate Family Rating to B3 from Ba3. The company's baseline credit assessment (BCA) was lowered to caa2 from b3. At the same time, Moody's downgraded Petrobras Argentina S.A. ("PESA")'s ratings, including its senior unsecured medium term note program and Corporate Family Rating to B3 from B2, in line with the senior unsecured rating of Petrobras. ========================== C A Y M A N I S L A N D S ========================== BBGP AIRCRAFT: Placed Under Voluntary Wind-Up --------------------------------------------- At an extraordinary meeting held on May 13, 2016, the sole shareholder of BBGP Aircraft Holdings Ltd. 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: Dwight Dube Michael Wheaton Telephone: (345) 949 7232 P.O. Box 10338 2nd Floor The Grand Pavilion Commercial Centre Grand Cayman Cayman Islands KY1-1003 CASTLE HILL: Creditors' Proofs of Debt Due July 6 ------------------------------------------------- The creditors of Castle Hill III CLO, Limited are required to file their proofs of debt by July 6, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 19, 2016. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue George Town Grand Cayman KY1-9005 Cayman Islands c/o Susan Craig/Jennifer Chailler Telephone: (345) 943-3100 CORSAIR FUND: Contributories' First Meeting Set for June 29 ----------------------------------------------------------- The contributories of The Corsair Fund SPC will hold their first meeting on June 29, 2016, at 10:00 a.m. The company commenced wind-up proceedings on May 3, 2016. The company's liquidators are: Matthew Wright Christopher Kennedy RHSW (Cayman) Limited P.O. Box 897, Windward I Regatta Office Park West Bay Road, Grand Cayman KYI-1103 Cayman Islands DEIRA ONE: Creditors' Proofs of Debt Due July 6 ----------------------------------------------- The creditors of Deira One Limited are required to file their proofs of debt by July 6, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 19, 2016. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Susan Craig/Jennifer Chailler Telephone: (345) 943-3100 FOOK SING: Creditors' Proofs of Debt Due July 6 ----------------------------------------------- The creditors of Fook Sing De Paor Ltd. are required to file their proofs of debt by July 6, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 16, 2016. The company's liquidators are: Helier Pirouet David Le Roux Citron 2004 Limited 23-25 Broad Street St Helier Jersey JE4 8ND Telephone: + 44 1534 282276 Facsimile: + 44 1534 282400 MARUZEN LTD: Creditors' Proofs of Debt Due July 6 ------------------------------------------------- The creditors of Maruzen Ltd. are required to file their proofs of debt by July 6, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 19, 2016. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands MONEDA ABSOLUTE: Placed Under Voluntary Wind-Up ----------------------------------------------- On May 16, 2016, the sole shareholder of Moneda Absolute Return Fund, Ltd. 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: Moneda USA, Inc. c/o Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 PARMALAT CAPITAL: Creditors' Proofs of Debt Due Aug. 6 ------------------------------------------------------ The creditors of Parmalat Capital Finance Limited are required to file their proofs of debt by Aug. 6, 2016, to be included in the company's dividend distribution. The company intends to declare final dividend. The company's liquidator is: Gordon Macrae Zolfo Cooper Suite 776 10 Market Street, Camana Bay Grand Cayman, KY1-9006 Cayman Islands Telephone: (345) 946 0081 SADUF SEVEN: Creditors' Proofs of Debt Due July 6 ------------------------------------------------- The creditors of Saduf Seven Limited are required to file their proofs of debt by July 6, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 18, 2016. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Susan Craig/Jennifer Chailler Telephone: (345) 943-3100 SADUF EIGHT: Creditors' Proofs of Debt Due July 6 ------------------------------------------------- The creditors of Saduf Eight Limited are required to file their proofs of debt by July 6, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 18, 2016. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Susan Craig/Jennifer Chailler Telephone: (345) 943-3100 SADUF NINE: Creditors' Proofs of Debt Due July 6 ------------------------------------------------ The creditors of Saduf Nine Limited are required to file their proofs of debt by July 6, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 18, 2016. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Susan Craig/Jennifer Chailler Telephone: (345) 943-3100 SADUF TEN: Creditors' Proofs of Debt Due July 6 ----------------------------------------------- The creditors of Saduf Ten Limited are required to file their proofs of debt by July 6, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 18, 2016. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Susan Craig/Jennifer Chailler Telephone: (345) 943-3100 WALTER FUND: Creditors' Proofs of Debt Due July 6 ------------------------------------------------- The creditors of The Walter Fund are required to file their proofs of debt by July 6, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 18, 2016. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands ========= C H I L E ========= CORP GROUP: S&P Lowers ICR to 'B'; Outlook Negative --------------------------------------------------- S&P Global Ratings lowered its issuer credit and issue-level ratings on Corp Group Banking S.A. (CG Banking) to 'B' from 'B+'. S&P also removed the ratings from CreditWatch negative. The outlook on the issuer credit rating is negative. The rating action follows S&P's analysis on the impact that CG Banking's parent's debt will have on the former's credit quality after S&P started applying the NCEI criteria. The analysis also incorporated Itau CorpBanca's credit quality after the merger and the rollout of new business plan. CG Banking upstreams cash to Interhold to service the latter's debt payments. Considering debt at CG Banking and Interhold, S&P expects the former's financial metrics to be near the 'B-' threshold, according to the NCEI criteria. In this sense, S&P expects CG Banking's interest coverage to average about 1.6x amid Itau CorpBanca's likely lower revenue and dividend payments in 2017, which should improving starting in 2018. Also, S&P expects Interhold to reduce its debt starting in 2017 through the cancelation of one of the credit lines from Itau Unibanco, which is part of the shareholders agreement related to the merger. S&P's analysis of CG Banking takes a consolidated approach, given that dividends it receives from Itau Corpbanca are the main recurrent source of payment of its and Interhold's debt. The outlook is negative and reflects a potential downgrade of CG Banking if its consolidated interest coverage metrics decline to below 1.5x and/or if its liquidity deteriorates. Such a scenario could occur from lower-than-projected dividend flow from Itau CorpBanca and/or CG Banking's and/or Interhold's higher interest and debt burden. A downgrade is also possible if the bank's stand-alone credit quality deteriorates, but S&P don't foresee such a scenario. S&P could revise the outlook on CG Banking to stable if its average consolidated interest coverage metrics consistently improve to above 1.5x and if its liquidity strengthens. =============== H O N D U R A S =============== HONDURAS: Economic Program With the IMF Remains on Track -------------------------------------------------------- An International Monetary Fund (IMF) mission, led by Roberto Garcia-Saltos, visited Tegucigalpa during May 31-June 13 to conduct the 2016 Article IV consultation and the third review of Honduras' Fund-supported program. At the conclusion of the visit, Mr. Garcia-Saltos issued the following statement in Tegucigalpa: "Honduras' economic program with the IMF remains on track, with strong ownership and implementation by the government. Since December 2014, the government's economic reform policies are laying a path for inclusive growth, greater coverage of the social safety net, and a better foundation for fiscal sustainability -- including additional resources to improve citizens' security. These achievements will anchor the strategy to obtain higher growth and better social conditions and job creation over the medium-term. "The mission and the authorities reached staff level understandings for the program for the remainder of 2016 and 2017. The agreement contains quantitative targets, including a minimum floor on social spending, and appropriate policies to boost growth-enhancing spending by the government. The government met most performance criteria for end-December 2015. Two structural benchmarks are proposed for rescheduling for end-2016. Further institutional reforms to control and reduce tax exemptions will help to improve the allocation of scarce tax resources and reduce income inequality. These understandings are subject to approval by the IMF's Management and Executive Board, which is expected to consider the third program review later in the year. "In 2015, economic performance was better than expected. Real output grew at 3.6 percent supported by a boost in investment and the recovery in private consumption -- which responded positively to a reduction in gasoline prices and strong remittances inflows. An improved macroeconomic policy mix and lower international oil prices have helped to reduce headline inflation, and narrow the external current account deficit. Headline inflation decelerated to 2.4 percent from 5.8 percent in the previous year, well below the inflation target of 4.5 percent. Meanwhile, the external current account deficit narrowed to 6.3 percent of GDP in 2015, higher than the 6.0 percent of GDP foreseen in the program, but lower than the 7.4 percent of GDP achieved in 2014. Net international reserves increased by US$307 million, supported by private capital inflows in excess of program projections. "The 2016 economic growth outlook is favorable, amid steady credit growth and an expected increase in net international reserves. Real output growth is projected to grow by 3.6 percent in 2016, supported by agriculture, construction (including scaled-up public sector infrastructure investment) and a more supportive monetary policy stance. After the significant fiscal adjustment in 2015, and in line with the recently approved fiscal responsibility law, the non-financial public sector (NFPS) deficit is expected to widen from 1 to 1.5 percent of GDP to accommodate planned investment in infrastructure. Inflation is projected to remain in line with the inflation objectives, despite the expected rise in energy prices. Meanwhile, consistent with expanding real sector activity and greater private sector confidence, credit to the private sector will grow in line with a sustainable pace of financial deepening. "The economic reform agenda is moving forward. Last April, Congress approved the Fiscal Responsibility Law which would help to protect the hard-won fiscal gains. This is a step forward to institutionalize the much needed fiscal discipline and thus help to enhance the credibility of public policies. The challenge now is to develop the supporting regulations, including better control of tax exemptions and continue enhancing the transparency of budgetary practices across the central government and all public enterprises. On monetary policy, the authorities are committed to modernize the monetary policy framework by adopting an inflation targeting framework in the near-future and continue with exchange rate flexibilization. This is expected to provide the necessary cushion to help manage external shocks. To bolster financial stability and continue to reduce dollarization, the authorities are implementing measures to reduce currency mismatches by un- hedged borrowers while monitoring financial risks, including on the buildup of household debt. "The staff team met with President Hernandez, Minister Coordinator of the Presidency, Jorge Ramon Hernandez-Alcerro, Minister Secretary of the Council of Ministers Ebal Diaz, Head of the Economic Cabinet and Minister of Finance Wilfredo Cerrato, Central Bank Governor Manuel Bautista, President of the National Commission of Banking and Insurance Ethel Deras, Minister of Infrastructure and Public Services Roberto Ordo§ez, Presidential Commissioner on Tax Administration Angela Madrid, Vice Minister of Public Credit and Investment Rocio T†bora, Executive Director of the Interamerican Development Bank Marlon Tabora and other senior government officials, members of congress, and private sector representatives. "The mission would like to thank the authorities and private sector representatives for a cordial and productive dialogue, as well as for their excellent cooperation and hospitality." As reported in the Troubled Company Reporter-Latin America on May 27, 2016, Moody's Investors Service has upgraded Honduras' government bond ratings to B2 from B3. Concurrently, it has upgraded the foreign currency and local currency issuer and senior unsecured ratings to B2 from B3. The outlook on the ratings remains positive. ====================== P U E R T O R I C O ====================== PUERTO RICO: US Supreme Court Strikes Down Debt Restructuring Law ----------------------------------------------------------------- RJR News reports that the U.S. Supreme Court struck down a Puerto Rico law that would have let its public utilities restructure their debt over the objection of creditors, leaving it to Congress to help the island resolve its fiscal crisis. Siding with bondholders challenging the law, the court ruled 5-2 that the measure was barred under federal bankruptcy law. Adam Liptak and Mary Williams Walsh of the New York Times said Justice Clarence Thomas, writing for the majority in the 5-to-2 decision, said the law was at odds with the federal bankruptcy code, which bars states and lower units of government from enacting their own versions of bankruptcy law. Puerto Rico is struggling with $72 billion in debt and has argued that it needs to restructure at least some of it under Chapter 9, the part of the bankruptcy code for insolvent local governments. But Puerto Rico is not permitted to do so, because Chapter 9 specifically excludes it, although it is unclear why, the report recalls. The federal law, Justice Thomas wrote, "bars Puerto Rico from enacting its own municipal bankruptcy scheme to restructure the debt of its insolvent public utilities," notes the NY Times. Chief Justice John G. Roberts Jr. and Justices Anthony M. Kennedy, Stephen G. Breyer and Elena Kagan joined him. The NY Times said Justice Thomas wrote that the decision was compelled by a straightforward reading of the federal law. In dissent, Justice Sonia Sotomayor, joined by Justice Ruth Bader Ginsburg, said the majority's approach was too mechanical and failed to take into account the purpose of the bankruptcy law and the impact of its decision. The Recovery Act, she wrote, "is the only existing legal option for Puerto Rico to restructure debts that could cripple its citizens," the report relates. "The Commonwealth of Puerto Rico and its municipalities are in the middle of a fiscal crisis," she wrote, the NY Times continues. "The combined debt of Puerto Rico's three main public utilities exceeds $20 billion. These utilities provide power, water, sewer and transportation to residents of the island." "With rising interest rates and limited access to capital markets, their debts are proving unserviceable. Soon, Puerto Rico and the utilities contend, they will be unable to pay for things like fuel to generate electricity, which will lead to rolling blackouts," Justice Sotomayor added. "Other vital public services will be imperiled, including the utilities' ability to provide safe drinking water, maintain roads and operate public transportation." The majority's approach ignores those realities, she wrote, "rejects contextual analysis in favor of a syllogism" and leaves Puerto Rico "powerless and with no legal process to help" its citizens, notes the NY Times. Pedro Pierluisi, Puerto Rico's nonvoting member of Congress, said: "The practical significance of the court's holding is crystal clear. Only Congress can provide the Puerto Rico government with the authority to restructure its debts," according to the report. He said action by Congress "is essential if the territory is going to overcome its severe -- and worsening -- economic, fiscal and demographic crisis." The case has been vexing for all parties because when Congress amended the bankruptcy code to exclude Puerto Rico, in 1984, it left no written record explaining why, notes the NY Times. Yet the rule barred the island from the only way under United States law that a debtor can legally reduce debt over the objections of creditors. Obama administration officials have expressed hope that the Senate will take up the measure quickly and enact it before July 1, when Puerto Rico is supposed to make debt payments totaling nearly $2 billion. It is expected to default, which would normally prompt creditors to sue. As now drafted, the bill would stay such lawsuits, put Puerto Rico under federal oversight and give it other legal powers similar to those found in bankruptcy, says the report. In the majority opinion, notes the NY Times, Justice Thomas noted that Puerto Rico had also been seeking help from Congress. "After the parties briefed and argued these cases," he wrote, "members of Congress introduced a bill in the House of Representatives to establish an oversight board to assist Puerto Rico and its instrumentalities," adding that "the bill does not amend the federal bankruptcy code." Justice Sotomayor responded that "the government and people of Puerto Rico should not have to wait for possible congressional action to avert the consequences of unreliable electricity, transportation and safe water -- consequences that members of the executive and legislature have described as a looming 'humanitarian crisis.'," notes the report. Justice Samuel A. Alito Jr. recused himself from the cases, Puerto Rico v. Franklin California Tax-Free Trust, No. 15-233, and Acosta-Febo v. Franklin California Tax-Free Trust, No. 15-255. As is the court's custom, he did not explain why. The Recovery Act, as the local law was known, would have directly affected more than $20 billion in utility debt and given the commonwealth more leverage in handling the rest of the $70 billion it owes, RJR News notes. As reported in the Troubled Company Reporter-Latin America on Dec. 28, 2015, Moody's Investors Service has downgraded $1.09 billion of Puerto Rico appropriation bonds issued by the Public Finance Corporation (PFC) to C from Ca, while maintaining other ratings assigned to the US territory's debt. SPORTS AUTHORITY: TSA Seeks to Sell Store #444 to Raymours ---------------------------------------------------------- Sports Authority Holdings, Inc., and its affiliated debtors seek authority from the U.S. Bankruptcy Court for TSA Stores, Inc., to sell the real property located at 2375 E. Lincoln Highway, Borough of Langhorne, County of Bucks, Commonwealth of Pennsylvania ("Store #444") to Raymours Furniture Company, Inc., for $5,000,000. The material terms and conditions of the Purchase Agreement are as follows: a. The Purchaser agrees to buy and the Seller agrees to sell the following: (a) Real Estate. Any and all of Seller's right, title and interest in and to the property commonly known as Store #444, 2375 E. Lincoln Highway, Borough of Langhorne, County of Bucks, Commonwealth of Pennsylvania, (b) Buildings, Improvements, and Fixtures. Any and all of Seller's right, title, and interest in and to the buildings located on the Land and any other improvements and fixtures on the Land, and (c) Personal Property. Any and all of Seller's right, title, and interest in and to the tangible personal property and equipment remaining on the Real Property as of the date of Closing. b. Purchase Price: $5,000,000. c. Escrow Money Deposit: The Purchaser has to deposit with Commonwealth Land Title Insurance Company the sum of $500,000 in good and immediately available funds, either by certified bank or cashier's check or by federal wire transfer. The Escrow Agent will hold the Deposit in an interest-bearing escrow account in accordance with the terms and conditions of the Purchase Agreement and the escrow agreement. d. Auction: If Seller receives at least one timely Qualified Overbid for the Property, then Seller will conduct an auction of the Property on June 24, 2016. All Overbids must be submitted on or before June 22. Counsel to the Debtors and Debtors in Possession: Michael R. Nestor, Esq. Kenneth J. Enos, Esq. Andrew L. Magaziner, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, Delaware 19801 Telephone: (302) 571-6600 Facsimile: (302) 571-1253 Email: mnestor@ycst.com kenos@ycst.com amagaziner@ycst.com -- and -- Robert A. Klyman, Esq. Matthew J. Williams, Esq. Jeremy L. Graves, Esq. Sabina Jacobs, Esq. GIBSON, DUNN & CRUTCHER LLP 333 South Grand Avenue Los Angeles, CA 90071-1512 Telephone: (213) 229-7000 Facsimile: (213) 229-7520 Email: rklyman@gibsondunn.com mjwilliams@gibsondunn.com jgraves@gibsondunn.com sjacobs@gibsondunn.com About Sports Authority Sports Authority Holdings, et al., are sporting goods retailers with roots dating back to 1928. The Debtors currently operate 464 stores and five distribution centers across 40 U.S. states and Puerto Rico. The Debtors offer a broad selection of goods from a wide array of household and specialty brands, including Adidas, Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and Fitness, Nike, The North Face, and Under Armour, in addition to their own private label brands. The Debtors employ 13,000 people. Sports Authority and six of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to 16-10533) on March 2, 2016. The petitions were signed by Michael E. Foss as chairman & chief executive officer. The Debtors have engaged Gibson, Dunn & Crutcher LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel, Rothschild Inc. as investment banker, FTI Consulting, Inc., as financial advisor and Kurtzman Carson Consultants LLC as notice, claims, solicitation, balloting and tabulation agent. Andrew Vara, Acting U.S. trustee for Region 3, appointed seven creditors of Sports Authority Holdings Inc. to serve on the official committee of unsecured creditors. Lawyers at Pachulski Stang Ziehl & Jones LLP represent the Official Committee of Unsecured Creditors. SPORTS AUTHORITY: Taps Hilco to Sell Intellectual Property ---------------------------------------------------------- Sports Authority Holdings Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to hire Hilco IP Services LLC. The Debtors tapped the firm to market intellectual property they own. Specifically, Hilco will provide these services: (a) collect and secure all of the available information and other data concerning the intellectual property; (b) prepare marketing materials designed to inform potential purchasers of the availability of the intellectual property for sale, assignment, license, or other disposition; (c) develop and execute a sales and marketing program designed to elicit proposals to acquire the intellectual property from qualified acquirers with a view toward completing one or more sales, assignments, licenses or other dispositions of the property; and (d) assist the Debtors in connection with the transfer of the intellectual property to the buyer or buyers and execute all marketing and sale activities related to the intellectual property. The Debtors and Hilco have agreed to this compensation structure: (a) Hilco will be paid a one-time engagement fee of $50,000. The fee will be applied as a credit against any commission. (b) Hilco will be paid a commission based on a percentage of aggregate gross proceeds generated from the sale, assignment, license or other disposition of the intellectual property: (i) 2% of the amount of aggregate gross proceeds up to $10,000,000; plus (ii) 3% of the amount by which the aggregate gross proceeds exceed $10,000,000. (c) The $50,000 fee is payable upon approval of the engagement letter by the court. Subject to the court's approval of the engagement letter, any commissions due Hilco will be paid in full immediately upon the successful consummation of any transaction involving the sale, assignment, license, or other disposition of the intellectual property from the gross proceeds of such transaction notwithstanding any liens, claims or other encumbrances on the property or the gross proceeds thereof. Hilco will also be entitled to reimbursement for work-related expenses and indemnification. The firm, however, won't be entitled to any indemnification payments unless they are approved by the court. David Peress, executive vice-president of Hilco, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: David Peress Hilco Streambank 980 Washington St., Suite 330 Dedham, MA 02026 E-mail: dperess@hilcoglobal.com Tel: 781-471-1239 About Sports Authority Sports Authority Holdings, et al., are sporting goods retailers with roots dating back to 1928. The Debtors currently operate 464 stores and five distribution centers across 40 U.S. states and Puerto Rico. The Debtors offer a broad selection of goods from a wide array of household and specialty brands, including Adidas, Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and Fitness, Nike, The North Face, and Under Armour, in addition to their own private label brands. The Debtors employ 13,000 people. Sports Authority and six of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to 16-10533) on March 2, 2016. The petitions were signed by Michael E. Foss as chairman & chief executive officer. The Debtors have engaged Gibson, Dunn & Crutcher LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel, Rothschild Inc. as investment banker, FTI Consulting, Inc., as financial advisor and Kurtzman Carson Consultants LLC as notice, claims, solicitation, balloting and tabulation agent. Andrew Vara, Acting U.S. trustee for Region 3, appointed seven creditors of Sports Authority Holdings Inc. to serve on the official committee of unsecured creditors. Lawyers at Pachulski Stang Ziehl & Jones LLP represent the Official Committee of Unsecured Creditors. SPORTS AUTHORITY: Taps Deloitte as Tax Services Provider -------------------------------------------------------- Sports Authority Holdings Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to hire Deloitte Tax LLP as tax services provider. The Debtors tapped the firm to: (a) advise the Debtors in their efforts to compute or estimate tax basis in the stock, assets and liabilities in each of the Debtors' subsidiaries or other entity interests; (b) advise the Debtors in their evaluation and modeling of the tax effects of liquidating, disposing of assets, merging or converting entities as part of the restructuring; (c) advise the Debtors on cancellation of debt income for tax purposes under Internal Revenue Code section 108; (d) advise the Debtors on post-bankruptcy tax attributes available under the applicable tax regulations and the reduction of such attributes based on the Debtors' operating projections; (e) advise the Debtors as they consult with their counsel and financial advisors on the cash tax effects of restructuring and bankruptcy and the post-restructuring tax profile; (f) advise the Debtors regarding the restructuring and bankruptcy emergence process from a tax perspective; (g) advise the Debtors on potential effect of the alternative minimum tax in various post-emergence scenarios; (h) advise the Debtors on the application of IRC Section 382 to historic Section 382 ownership changes or ownership shifts; (i) advise the Debtors on the effects of tax rules under IRC sections 382(l)(5) and (l)(6) pertaining to the post- bankruptcy net operating loss carryovers and limitations on their utilization; (j) advise the Debtors on net built-in gain or net built-in loss position at the time of "ownership change;" (k) assist the Debtors with U.S. federal income tax observations in connection with any NOL protective orders recommended or drafted by legal counsel or the Debtors' financial advisors; (l) advise the Debtors in their evaluation and modeling of the effects of liquidation, merging, or converting entities as part of the restructuring; (m) advise the Debtors as to the treatment of post-petition interest for state and federal income tax purposes; (n) advise the Debtors as to the state and federal income tax treatment of pre-petition and post-petition reorganization costs; (o) advise the Debtors on state income tax treatment and planning for restructuring or bankruptcy provisions in various jurisdictions; (p) advise the Debtors on responding to tax notices and audits from various taxing authorities; (q) assist the Debtors in identifying potential tax refunds and advise them on procedures for tax refunds from tax authorities; (r) advise the Debtors on income tax return reporting of bankruptcy issues and related matters; (s) advise the Debtors on state and local transfer tax matters; (t) assist in documenting the tax analysis, development of the Debtors' opinions, recommendations, observations, and correspondence for any proposed restructuring alternative tax issue; and (u) advise the Debtors regarding other state or federal income tax questions that may arise. The Debtors and Deloitte have agreed that the firm will bill at these hourly rates: Applicable Hourly Applicable Hourly Personnel Rates for Rates for Nat'l. Tax & Classification Non-Specialists Restructuring Specialists -------------- --------------- ------------------------- Partner/Principal/ $795 $870 Director Senior Manager $705 $743 Manager $608 $638 Senior $503 $503 Staff $398 $398 Deloitte will also be entitled to reimbursement for work-related expenses and indemnification. Kenneth Gerstel, a partner at Deloitte, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Kenneth Gerstel Deloitte Tax LLP Suite 3600 555 Seventeeth Street Denver, CO 80202-3942 Tel: + 1 303 292 5400 Fax: + 1 303 312 4000 About Sports Authority Sports Authority Holdings, et al., are sporting goods retailers with roots dating back to 1928. The Debtors currently operate 464 stores and five distribution centers across 40 U.S. states and Puerto Rico. The Debtors offer a broad selection of goods from a wide array of household and specialty brands, including Adidas, Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and Fitness, Nike, The North Face, and Under Armour, in addition to their own private label brands. The Debtors employ 13,000 people. Sports Authority and six of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to 16-10533) on March 2, 2016. The petitions were signed by Michael E. Foss as chairman & chief executive officer. The Debtors have engaged Gibson, Dunn & Crutcher LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel, Rothschild Inc. as investment banker, FTI Consulting, Inc., as financial advisor and Kurtzman Carson Consultants LLC as notice, claims, solicitation, balloting and tabulation agent. Andrew Vara, Acting U.S. trustee for Region 3, appointed seven creditors of Sports Authority Holdings Inc. to serve on the official committee of unsecured creditors. Lawyers at Pachulski Stang Ziehl & Jones LLP represent the Official Committee of Unsecured Creditors. SPORTS AUTHORITY: ASICS Appeals Merchandise Sale Order ------------------------------------------------------ ASICS America Corporation took an appeal to the U.S. District Court for the District of Delaware from the Bankruptcy Court's order approving the sale of all acquired assets and authorized the assumption, assignment and transfer of debtors Sports Authority Holdings, Inc., et al.'s interests in executory contracts and unexpired leases. Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware had previously denied ASICS' Motion asking for a stay pending appeal of the Court's Sale Order. Judge Walrath had approved the Agency Agreement between the Debtors and a joint venture consisting of Hilco Merchant Resources, LLC, Gordon Brothers Retail Partners, LLC and Tiger Capital Group, LLC ("Agent"), wherein the Agent agreed to act as the Debtor's exclusive agent to conduct sales of certain of the Debtors' assets that are subject to the Agency Agreement, including Merchandise and Owned Furniture, Fixtures and Equipment. Judge Walrath held that the Agency Agreement, including the form and total consideration to be realized by the Debtors pursuant to the Agency Agreement, (i) is the highest and best offer received by the Debtors for the Assets, (ii) is fair and reasonable, and (iii) is in the best interests of the Debtors, their estates, their creditors and all other parties in interest. She further held that there is no legal or equitable reason to delay entry into the Agency Agreement, and the transactions contemplated therein, including, without limitation, the Sale. A full-text copy of the Order, dated May 24, 2016, is available at https://is.gd/E4v7Ae ASICS America Corporation is represented by: Adrienne K. Walker, Esq. Eric R. Blythe, Esq. MINTZ, LEVIN, COHN, FERRIS, GLOVSKY AND POPEO, P.C. One Financial Center Boston, MA 02111 Telephone: (617)542-6000 Facsimile: (617)542-2241 E-mail: awalker@mintz.com eblythe@mintz.com - and - Jeffrey A. Davis, Esq. MINTZ, LEVIN, COHN, FERRIS, GLOVSKY AND POPEO, P.C. 3580 Carmel Mountain Road, Suite 300 San Diego, CA 92130 Telephone: (858)314-1500 Facsimile: (858)314-1501 E-mail: jdavis@mintz.com - and - Christopher S. Loizides, Esq. LOIZIDES, P.A. 1225 King Street, Suite 800 Wilmington, DE 19801 Telephone: (302)654-0248 E-mail: loizides@loizides.com About Sports Authority Sports Authority Holdings, et al., are sporting goods retailers with roots dating back to 1928. The Debtors currently operate 464 stores and five distribution centers across 40 U.S. states and Puerto Rico. The Debtors offer a broad selection of goods from a wide array of household and specialty brands, including Adidas, Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and Fitness, Nike, The North Face, and Under Armour, in addition to their own private label brands. The Debtors employ 13,000 people. Sports Authority and six of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to 16-10533) on March 2, 2016. The petitions were signed by Michael E. Foss as chairman & chief executive officer. The Debtors have engaged Gibson, Dunn & Crutcher LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel, Rothschild Inc. as investment banker, FTI Consulting, Inc., as financial advisor and Kurtzman Carson Consultants LLC as notice, claims, solicitation, balloting and tabulation agent. Lawyers at Pachulski Stang Ziehl & Jones LLP represent the Official Committee of Unsecured Creditors. SYFOOD GROUP: Hires Hector Pedrosa-Luna as Counsel -------------------------------------------------- Syfood Group, Inc. seeks authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ The Law Offices of Hector Eduardo Pedrosa Luna as counsel. The Debtor requires the firm to: (a) prepare bankruptcy schedules, pleadings, applications and conduct examinations incidental to any related proceedings or to the administration of this case; (b) develop the relationship of the status of the Debtor to the claims of creditors in this case; (c) advise the Debtor of its rights, duties, and obligations as Debtor operating under Chapter 11 of the Bankruptcy Code; (d) take any and all other necessary action incident to the proper preservation and administration of this Chapter 11 case; and (e) advise and assist the Debtor in the formation and preservation of a plan pursuant to Chapter 11 of the Bankruptcy Code, the disclosure statement and any and all matters related thereto. The firm will be paid at an hourly rate of $150. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The Debtor provided the firm a $5,000 retainer. Hector Eduardo Pedrosa-Luna, principal of the firm, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The firm can be reached at: Hector Eduardo Pedrosa-Luna, Esq. The Law Offices of Hector Eduardo Pedrosa Luna P.O. Box 9023963 San Juan, PR 00902-3963 Tel: (787) 920-7983 Fax: (787) 754-1109 E-mail: hectorpedrosa@gmail.com About Syfood Group Syfood Group, Inc., based in San Juan, Puerto Rico, filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 3:16-bk- 04497) on June 5, 2016. The Debtor is represented by Hector Eduardo Pedrosa-Luna of The Law Offices of Hector Eduardo Pedrosa Luna. Judge Mildred Caban Flores presides over the case. ================================ T R I N I D A D & T O B A G O ================================ * TRINIDAD & TOBAGO: Stagnant as LNG Countries Boost Production --------------------------------------------------------------- Trinidad Express reports that all of the world's top liquified natural gas (LNG) exporters increased the volume of LNG traded in 2015 versus 2014 except Trinidad and Tobago, the BP Statistical Review of World Energy 2016 released showed. Trinidad and Tobago barely held on to its position as the world's sixth largest LNG exporter, as changes at the top saw Australia push out Malaysia to become the world's second largest LNG exporter, and had Algeria's volume not fallen too, Trinidad and Tobago would have dropped to the seventh position, according to Trinidad Express. The world's top five LNG exporters all increased their trade. Starting with the largest, Qatar increased LNG traded from 103.4 billion cubic metres (bcm) in 2014 to 106.4 bcm in 2015, the report notes. Trinidad and Tobago decreased from 19.3 bcm in 2014 to 17 bcm in 2015, the report relays. As for total proved reserves of natural gas, revealing what the $1 million Government-concealed Ryder Scott report would have said anyway, Trinidad and Tobago's proved natural gas reserves fell from 12.2 trillion cubic feet (tcf) at the end of 2014 to 11.5 tcf at the end of 2015, the report says. Since 2005, gas reserves have gone down 40 per cent from 0.5 trillion cubic metres (tcm) at the end of 2005 to 0.3 tcm at the end of 2015, which means reserves regressed to 1995 levels, the report discloses. At the current production rate, Trinidad and Tobago has enough gas for 8.2 years (Reserve/Replacement Ratio), BP's London-based economists wrote, the report adds. As reported in the Troubled Company Reporter-Latin America on May 12, 2016, Trinidad Express said that Trinidad and Tobago's unemployment rate has increased again. Data from the Central Statistical Office (CSO) showed that the rate climbed from 3.4 per cent in the third quarter of 2015 to 3.5 per cent in the fourth quarter of 2015, according to Trinidad Express. TCRLA reported on Sept. 10, 2015 that Daily Express said the Central Bank's latest Economic Bulletin dated July 2015, revealed the economy of Trinidad and Tobago contracted by -1.2 per cent in the first quarter of 2015. The bulletin also revealed that not only did economic activity slow in the first quarter of 2015, but the energy sector contracted -3.3 per cent while non-energy shrunk to 0.2 per cent over the same period. ================= X X X X X X X X X ================= LATAM: ECLAC Welcomes Debt Relief Support ----------------------------------------- Trinidad and Tobago Newsday reports that the Economic Commission for Latin America and the Caribbean (ECLAC) has welcomed the support it recently received from the Association of Caribbean States (ACS) for its proposed debt relief fund. ECLAC has proposed a Caribbean resilience for the countries that benefit from debt reduction which, among other measures, proposes the creation of a resilience fund as part of a strategy based on a swap proposal for climate change adaptation, according to Trinidad and Tobago Newsday. In a statement, ECLAC noted that during the VII summit of the ACS, which concluded on June 4 in Cuba, the association's 25 member countries approved, by consensus, the 44 points of the Havana Declaration, the report notes. "In point 13 of the document, the summit agreed that it 'fully supports the consideration of ECLAC Debt Initiative, which takes into consideration the highly indebted nature of many Caribbean nations and recommends an approach that recognizes the principles of the Financing for Development, the Sustainable Development Goals and proposes, among other initiatives to be considered, a Caribbean Resilience Fund for the countries benefited by debt relief." ECLAC stated, the report relays. The commission explained that the indebtedness of Caribbean countries is a "dilemma linked to external impacts, aggravated by the inherent structural weakness and vulnerabilities faced by the Small Island Developing States (SIDS) of the Caribbean, which have limited capacity to respond," the report notes. ECLAC added that many Caribbean countries are categorized as middle income, which restricts their access to financing under favorable conditions, the report discloses. As indicated in the document "Horizons 2030: Equality at the Centre of Sustainable Development", presented during ECLAC's 36th session held in Mexico this past May, the commission sustains that Latin America and the Caribbean has a historic opportunity to change its development pattern and reduce the economic, social and environmental inequalities that affect its inhabitants, the report says. "To achieve this, progressive structural change is needed with a big environmental push that promotes development based on equality and sustainability. The debt relief initiative for Caribbean countries proposes that resources from the Green Climate Fund (GCF) be used to reduce the Caribbean public debt held by multilateral and bilateral lenders, and to once again issue debt to private creditors at a significant discount." *********** 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 * * *