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/raid1/www/Hosts/bankrupt/TCRLA_Public/160726.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, July 26, 2016, Vol. 17, No. 146 Headlines B A H A M A S BAHAMAS: Central Bank Denies Plans to Devalue Local Currency B R A Z I L BRAZIL: Real Overcomes Intervention to Join Emerging-Market Rally ODEBRECHT OLEO: S&P Affirms 'D' Corporate Credit Rating C A Y M A N I S L A N D S ARABELLA EXPLORATION: Commences Liquidation Proceedings GLOBAL FOCUSED: Creditors' Proofs of Debt Due Aug. 8 GOLDMAN SACHS EVENT: Commences Liquidation Proceedings GOLDMAN SACHS STRUCTURED: Commences Liquidation Proceedings KEMNAY VALTURA: Creditors' Proofs of Debt Due Aug. 19 LIBERTY HARBOR: Commences Liquidation Proceedings PERGAMON OFFSHORE: Commences Liquidation Proceedings UNITED OILS: Creditors' Proofs of Debt Due Aug. 8 WP X INVESTMENTS: Creditors' Proofs of Debt Due Aug. 8 C O S T A R I C A COSTARRICENSE DE ELECTRICIDAD: Fitch Affirms 'BB+' LC IDRs D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Aims to 'Fry' Electricity Pact's Prior Deal J A M A I C A UC RUSAL: Wants to Supply Russia's Metal Demands P U E R T O R I C O AEROPOSTALE INC: To Challenge Sycamore's Status as Creditor CANEJAS SE: Creditors to Get Full Payment Under Plan VILLAS DEL MAR: Banco Popular Wants to Prohibit Cash Use - - - - - ============= B A H A M A S ============= BAHAMAS: Central Bank Denies Plans to Devalue Local Currency ------------------------------------------------------------ Trinidad Express reports that the Central Bank of the Bahamas (CBB) has denied reports of a possible devaluation of the local currency insisting there 'are also no existing or emerging pressures that would precipitate the forced abandonment of the fixed exchange rate regime". In a statement, the CBB said it wanted to assure the public that "contrary to speculation" in the local media "there is no imminent or medium-term threat of devaluation of the Bahaman dollar," according to Trinidad Express. It said that "adequate support and mechanisms remain in place to protect the value of the currency, despite conjectures about the impact of economic growth, fiscal consolidation prospects or governance institutions, the report notes. "The Bahamian Dollar's value continues to be supported by the foreign reserve holdings of the Central Bank and the tools at the Bank's disposal to regulate the demand for foreign exchange. "These include the monitoring of the system permitted under the exchange control regime, as well as direct means to ensure that domestic credit expansion does not fuel greater demand for foreign exchange than the system can accommodate," the CBB said, the report relays. Among those warning of a possible devaluation of the dollar, which is pegged at one to one with the US dollar is Robert Myers, the former chairman of the Chamber of Commerce and now a member of the Organization for Responsible Government, the report notes. Mr. Myers told the local media that the country is "rudderless" with debate more on "shiny object issues" rather than on the real issues confronting the Caribbean Community (CARICOM) country, the report relays. Mr. Myers prediction that "devaluation is a question of when, it is not a question of if," the report notes. But in its statement, the Central Bank of the Bahamas said that a predicate to any pressure on the currency is for the foreign reserves to be threatened with depletion, the report says. But it noted that as of July 21, the Central Bank's holdings of international reserves are still in excess of one billion US dollars "well above the international benchmark of 12 weeks of total import cover, which reflects stronger reserves growth in the first half of 2016 than in the corresponding period of 2015," the report relays. "Although the Bank expects the normal seasonal drawdown in reserves over the rest of the year, balances are still expected to settle at a year-end position that are stable to slightly improved, when compared to December 2015," CBB added. The CBB said the Bahamian public continues to have comfortable access to foreign exchange to fund their external transactions, the report notes. "As economic activity fluctuates, such variation is highly correlated with the foreign currency earnings from tourism and other export activities. These in turn, supply the foreign exchange that finances import demand, and alongside the Central Bank's credit policies, assure that import demand is regulated within levels that are sustainable," CBB said, the report relays. It said the capacity to further boost the reserves or to support more robust import financing remains contingent on strengthening medium-term growth prospects and, by extension, on the enabling policies that can improve the base of private sector activities, the report notes. "In such a context, the Central Bank's ability to accommodate even stronger spending on imports would also be enhanced. "The Central Bank will continue to encourage more informed dialogue on the foundations which support the value of the Bahamian dollar, and on the policy considerations that would prompt a review of whether an adjustment in the current fixed exchange rate regime is warranted. "In the present circumstances, the Bank remains well equipped to defend the Bahamian dollar and any forced float or devaluation would not benefit the economy. It is well within The Bahamas' means of being avoided over the medium-term," the CBB added. =========== B R A Z I L =========== BRAZIL: Real Overcomes Intervention to Join Emerging-Market Rally ----------------------------------------------------------------- Paula Sambo at Bloomberg News reports that Brazil's real rose as increased confidence in the economy and favorable sentiment toward emerging-market assets overshadowed the central bank's attempt to limit gains. The real joined a rally in developing-nation currencies after the release of two surveys showed Brazilians predicting better times ahead as the country pulls out of its worst recession in more than a century, according to Bloomberg News. "A combination of more optimism about the Brazilian economy and a general improvement in sentiment toward emerging-market currencies have supported the real," said Georgette Boele, an Amsterdam-based strategist at ABN Amro Bank NV, Bloomberg News notes. The real is the world's top performer this year amid speculation that a new administration will be able to revive growth and shore up the budget, Bloomberg News relays. Sentiment about the economy reached the highest level since 2014 as Brazilians predicted inflation will slow, unemployment will fall and purchases power will increase, according to a Datafolha poll published, Bloomberg News says. A separate tally by the central bank showed analysts boosting their growth forecasts for next year, Bloomberg News notes. The real strengthened 0.8 percent to 3.2537 per dollar on July 18. An index of 20 emerging market currencies advanced 0.6 percent. Swap rates on the contract maturing in January 2018, a gauge of expectations for interest rates, dropped 0.02 percentage point to 12.67 percent, Bloomberg News says. The currency gained even after the monetary authority sold all 10,000 reverse currency swaps offered on July 18, a move equivalent to buying $500 million in the futures market, Bloomberg News notes. Since March, policy makers have sold almost $50 billion of the contracts, 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. ODEBRECHT OLEO: S&P Affirms 'D' Corporate Credit Rating ------------------------------------------------------- S&P Global Ratings affirmed its 'D' global scale corporate credit ratings on Odebrecht Oleo e Gas S.A. At the same time, S&P affirmed its issue-level rating on Odebrecht Oil & Gas Finance Limited at 'D'. S&P is revising its recovery ratings on the senior perpetual notes to '5' from '3', indicating recovery prospects between 10% and 30%, which are below S&P's previous expectations. The rating affirmation reflects the company's default status. OOG missed an interest payment on its perpetual senior debt in April 2016, at which point S&P downgraded it to its current level. The perpetual notes were issued by Odebrecht Oil & Gas Finance Limited, and are fully guaranteed by OOG. The latter is still under a general debt restructuring process at the operating subsidiary level, although S&P don't have any information about its completion. S&P will reevaluate the company's overall credit quality once it's completed. At the time of the default, S&P's recovery rating on the company's senior unsecured debt was '3', indicating a meaningful recovery between 50% and 70%, in the higher range of the band. S&P now revised the recovery rating to '5', indicating S&P's expectation of lower recovery that should now range between 10% and 30%, in the light of current industry conditions. ========================== C A Y M A N I S L A N D S ========================== ARABELLA EXPLORATION: Commences Liquidation Proceedings ------------------------------------------------------- On July 7, 2016, the Grand Court of Cayman Islands entered an order to liquidate the business of Arabella Exploration, Inc. The company's liquidators are: Matthew Wright Christopher Kennedy RHSW Caribbean P.O. Box 897, Windward 1 Regatta Office Park, West Bay Road Grand Cayman KY1-1103 Cayman Islands GLOBAL FOCUSED: Creditors' Proofs of Debt Due Aug. 8 ---------------------------------------------------- The creditors of Global Focused Value International Fund Ltd. are required to file their proofs of debt by Aug. 8, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 5, 2016. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Jo-Anne Maher c/o Erik Weir 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 814-9255 Facsimile: (345) 949-4647 GOLDMAN SACHS EVENT: Commences Liquidation Proceedings ------------------------------------------------------ On July 7, 2016, the sole shareholder of Goldman Sachs Event Risk Premium Opportunities Fund Offshore, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 GOLDMAN SACHS STRUCTURED: Commences Liquidation Proceedings ----------------------------------------------------------- On June 30, 2016, the sole shareholder of Goldman Sachs Structured Emerging Markets Equity Fund, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 KEMNAY VALTURA: Creditors' Proofs of Debt Due Aug. 19 ----------------------------------------------------- The creditors of Kemnay Valtura Limited are required to file their proofs of debt by Aug. 19, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 6, 2016. The company's liquidator is: Mahesh Nagendram c/o Scotiabank & Trust (Cayman) Ltd. 6 Cardinall ave P.O. Box 501 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 815 4333 LIBERTY HARBOR: Commences Liquidation Proceedings ------------------------------------------------- On June 30, 2016, the sole shareholder of Liberty Harbor Convex Strategies, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 PERGAMON OFFSHORE: Commences Liquidation Proceedings ---------------------------------------------------- On July 6, 2016, the sole shareholder of Pergamon Offshore Fund, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Cathy Fleming 590 Madison Avenue, 30th Floor New York, NY 10022 UNITED OILS: Creditors' Proofs of Debt Due Aug. 8 ------------------------------------------------- The creditors of United Oils Limited SEZC are required to file their proofs of debt by Aug. 8, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 22, 2016. The company's liquidator is: Michael Saville c/o John Henry 10 Market Street #765, Camana Bay Grand Cayman KY1-9006 Cayman Islands Telephone: (345) 769 7213 Facsimile: (345) 949 7120 WP X INVESTMENTS: Creditors' Proofs of Debt Due Aug. 8 ------------------------------------------------------ The creditors of WP X Investments I Ltd. are required to file their proofs of debt by Aug. 8, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 30, 2016. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited c/o Jo-Anne Maher Telephone: (345) 814-9255 Facsimile: (345) 949-4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands =================== C O S T A R I C A =================== COSTARRICENSE DE ELECTRICIDAD: Fitch Affirms 'BB+' LC IDRs ---------------------------------------------------------- Fitch Ratings has affirmed Instituto Costarricense de Electricidad y Subsidiarias' (Grupo ICE) foreign- and local-currency Issuer Default Ratings (FC/LC IDRs) at 'BB+' and its National Scale ratings at 'AAA(cri)' and 'AAA(slv)'. The Rating Outlook remains Negative. A complete list of rating actions follows at the end of this release. Grupo ICE's ratings are supported by its linkage to the sovereign rating of Costa Rica (FC and LC IDRs 'BB+'/Outlook Negative), which stems from the company's government ownership and the implicit and explicit expectation of government support. ICE's Negative Rating Outlook reflects the sovereign's Negative Outlook. The company has a strong linkage to the government given its strategic importance due to the growing demand for electricity and the government's plans to increase renewable generation and reduce exposure to fluctuations in fossil fuel prices. The ratings also reflect the company's diversified portfolio of assets, adequate financial profile, aggressive capital expenditure program oriented toward increasing renewable generation capacity and maintaining a strong market share position in the telecommunications business. KEY RATING DRIVERS DIVERSIFIED ASSET PORTFOLIO Grupo ICE is a vertically integrated monopoly in the electricity industry and the incumbent player in telecommunications in Costa Rica. ICE's mobile market share in terms of subscribers was approximately 60% at the end of 2014. The ratings reflect the company's low business risk resulting from its business diversification and positive characteristics as a utility service provider. The company had an installed capacity of 2,336 megawatts (MW) as of December 2015, including the generation plants of its subsidiary, Compania Nacional de Fuerza y Luz (CNFL). ICE is the exclusive owner of the national transmission grid. The National Electric System (SEN) is composed of Grupo ICE, two municipal companies, and four rural electrification cooperatives. There are also private generators that sell energy to Grupo ICE. The SEN installed capacity is 3,068MW as of December 2015. Fitch expects ICE's electricity business to increase its contribution given the current and future expansion projects, as well as relatively stable results in the telecommunications segment. The electricity segment represented approximately 56.3% of total revenues as of 2015 (2014: 57.5%) and the telecommunications division contributed with 43.6% (2014: 42.3%), supplemental services represented 0.1% (2014: 0.2%). During 2015, EBITDA amounted to CRC329,866 million. WEAKER STANDALONE CREDIT QUALITY ICE's standalone credit quality is in line with a 'BB-' Long-Term Rating, should the company not be owned by the state. This standalone rating assumes that ICE's current favorable funding conditions will not remain the same absent from ownership support from the government. Additionally, local funding for its subsidiary, Compania Nacional de Fuerza de Luz (CNFL), could be limited absent from government support or Grupo ICE support. CNFL relies on funds from state-owned banks due to its weak financial profile. LEVERAGE DRIVEN BY CAPEX AND TARRIF ADJUSTMENTS Grupo ICE's ratings reflect the company's leverage, adequate interest coverage and exposure to foreign exchange risk. In the last few years, the company's leverage has weakened as result of the ongoing large capital expenditure program, which has been financed mainly with debt. Debt related to electricity projects represents approximately 90% of the total debt, and the remaining funds are allocated to projects in the telecommunications sector. The lesser tariff adjustments during 2015 coupled with extraordinary expenses have impacted EBITDA by year-end 2015. Adjusted leverage (total adjusted debt /EBITDAR) for the last 12 months, ending March 31, 2016 was 6.3 times (x) (2015: 6.5x, 2014: 5.5x). Consolidated gross debt as of March 2016 was CRC2,063,728 million (2014: CRC1,987,070 million)and total debt adjusted for operating leases was CRC2,560,816 million for the same period. As of March 2016, the company benefits from a manageable debt schedule, as approximately 46.2% of it matures after five years, 39.1% between two and five years, and 14.7% in less than two years. Approximately 85% of total debt is denominated in U.S. dollars, which exposes the company to fluctuations in the exchange rate. The Costa Rican government guarantees some loans from international development banks, which represent approximately 12% of total indebtedness. Fitch expects the company will be able to gradually reduce its leverage as new generation projects come online, absent of any new large generation projects and through tariff recognition of the debt service of the generation plants that will start operations in the next few years. One example is PH Reventazon, which began operations in March 2016 and is under testing proofs before the asset will be transferred to ICE. The 305 MW Reventazon asset (US$1.4 billion cost) and the associated debt (US$904 million) is expected to be incorporated in ICE's financial statement between end of this year and the first quarter of 2017. Fitch's forecast considers the effect in the end of 2016. AGGRESSIVE CAPITAL EXPENDITURE PLAN Grupo ICE's capex investment plan is considered aggressive and could weaken the company's financial profile without lacking of increased cash flow generation and adequate tariff adjustments. Nevertheless, annual capex requirements are expected to decrease in relation to the past years as Reventazon, the largest hydroelectric project, was already completed. The company's capex plan considers investments by approximately US$2.3 billion during 2016-2020 over the next five years to increase renewable electricity generation capacity and maintain its leadership position in telecommunications, if all the planned projects are executed. Grupo ICE expects to finance its investments with a combination of internal cash flow, debt, Build Operate and Transfer (BOT) transactions, and special purpose vehicles. Fitch forecasts that capex investment for the years 2017-2019 could average 25% of total revenues. In 2015, capital expenditures of CRC228,351 million represented 17.9% of revenues for the year (2014: 15.9%). During the years 2010 through 2013, this ratio was 44.2% per year on average. Fitch expects the company to be able to reduce leverage as capex requirements decrease in the medium term (2016-2018), absent large new generation projects, and tariff recognition of the debt service of the generation plants that will start operations in the next few years. Currently, there are two geothermal generation projects by 55MW each, under developments. These projects are: Pailas 2 (with an approximately cost of US$335 million project) and Borinquen (at design and planning stage). Going forward, leverage could increase consistently to over 6x if the company finances its capex investment plan heavily with debt and the revenues associated with these investments are delayed beyond the expected ramp-up timeframe or do not receive the tariff adjustments expediently. HIGH EXPOSURE TO REGULATORY AND POLITICAL INTERFERENCE Grupo ICE is exposed to regulatory interference risk given the lack of clear and transparent electricity tariff schedules. The company annually proposes to the regulator electricity tariffs for end-users; in previous years, the regulatory and political interference affected the tariff adjustment process. Despite the regulatory risk, Grupo ICE has managed to maintain a relative stable cash flow generation. Also, the company is exposed to political interference given that the government appoints and removes ICE's directors and executives, sets and approves the company's tariffs, and regulates its budget. KEY ASSUMPTIONS -- The strong linkage between the sovereign of Costa Rica and ICE continues; -- Grupo ICE remains important to the government as a strategic asset for the country; -- Fuel variable-cost tariff revision and ordinary tariff adjustments are in place; -- The Reventazon asset and the associated debt will be incorporated in ICE's 2016 financial statements. -- The 2017 tariff review considers the debt service for Reventazon hydroelectric project; -- Grupo ICE will continue to support its subsidiaries in terms of its financial obligations, and as advisor on operational or technical issues, when is needed or required. RATING SENSITIVITIES -- Grupo ICE's ratings could be negatively affected by any combination of the following: sovereign downgrades; weakening of legal, operational and/or strategic ties with the government; or regulatory intervention that negatively affects the company's financial performance; -- Grupo ICE's ratings could be positively affected by an upgrade of Costa Rica's sovereign rating. Fitch has affirmed the following ratings: Instituto Costarricense de Electricidad y Subsidiarias' (Grupo ICE) -- Long-term FC IDR at 'BB+'; Outlook Negative; -- Long-term LC IDR at 'BB+'; Outlook Negative; -- Senior unsecured debt at 'BB+'; -- Long-term national scale (Costa Rica) at 'AAA(cri)'; Outlook Stable; -- Short-term debt at 'F1+(cri)'; -- Senior unsecured domestic long-term debt (Costa Rica) at 'AAA(cri)'. -- Long-term national scale (El Salvador) at 'AAA(slv)'; Outlook Stable; -- Senior unsecured domestic long-term debt (El Salvador) at 'AAA(slv)'. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Aims to 'Fry' Electricity Pact's Prior Deal --------------------------------------------------------------- Dominican Today reports that the social sectors involved in the talks leading to the Electricity Pact said the government of the Dominican Republic aims to "fry" the pending agreement, by circumventing points already agreed during the dialogue. Alternative Social Forum spokesman Fernando Pena warned that the government prepared a document to be submitted for approval, but wasn't the result of the discussions held with the various sectors, according to Dominican Today. Mr. Pena accuses presidency chief of staff Gustavo Montalvo of "pushing to approve the pact before August 16." Mr. Pena said the Economic and Social Council's (CES) Technical Committee had already announced that everything was ready for the pact and that Mr. Montavo asked them to meet July 28 and 29 and on August 2, 3 and 4 to complete it, the report relays. In a press conference at the Santo Domingo State University (UASD), Pena said that a meeting would also take place for that purpose, the report notes. "There's an entire maneuver that threatens a true Pact," Mr. Pena said, stating concern over the fundamental aspects for citizens that he affirms aren't being taken into account, the report relays. "We're simply demanding that it be discussed and done as agreed to reach a transparent agreement . . . they want to fry the electric pact and replace what has been discussed with 10 points which the government calls priority," said Mr. Pena, who reiterated the need for a "true pact," the report notes Among the social organizations in the talks for the electricity pact also figure the national farmers collective Articulation Campesina, Centro Bono, Dominican Consumer Rights Foundation, Dominican Economists Guild and the National District Homemakers Committees Association, the report adds. As reported in the Troubled Company Reporter-Latin America on July 1, 2016, Moody's Investors Service has changed the outlook on the Dominican Republic's long term issuer and debt ratings to positive from stable. The ratings have been affirmed at B1. ============= J A M A I C A ============= UC RUSAL: Wants to Supply Russia's Metal Demands ------------------------------------------------ RJR News reports that global aluminum producer UC Rusal, which is in the process of selling part of its Jamaican operations, said it wants to supply all of Russia's demand for the metal in the long run. UC Rusal expects aluminum consumption will grow from 1.4 million tons annually to 2.5 million tons by 2024, according to RJR News. However, the company says investments worth nearly US$800 million will be required at the initial stage by 2021, the report notes. A Rusal spokesman said the funds are needed for infrastructure and production capacities of the company's consumers, the report relays. UC Rusal recently announced plans to sell Alpart to the Chinese state industrial group JISCO for US$299 million, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on March 14, 2016, RJR News relayed that UC Rusal has asked lenders to refinance some of its US$8.4 billion debt pile. The Russian aluminum group disclosed the move in its full-year financial statements, according to RJR News. This comes less than two years after its most recent debt restructuring, the report notes. TCRLA reported on June 24, 2015, that RJR News said Jamaica Mining Minister Phillip Paulwell, who returned to Jamaica from his trip to Russia, has declared that all is well with the arrangements that have been made for full restoration of operations at the Alumina Partners of Jamaica (Alpart) bauxite/alumina plant at Nain in St. Elizabeth. After being closed for six years, work resumed at the plant earlier this year, but only in respect of mining of the ore for shipment to Russia, in the first instance, according to RJR News. The phased resumption plan should see the resumption of alumina refining towards the end of 2016, the report said. TCRLA, citing RJR News, reported on April 30, 2015, that UC Rusal has re-ignited its war of words with the London Metal Exchange, saying it has allowed financial speculators to distort prices. Vladislav Soloviev, Chief Executive Officer of the heavily indebted Russian group, said the price of aluminum traded on the LME has been depressed by as much as 30 per cent by the actions of money-market players, according to RJR News. UC Rusal has been involved in a bitter legal wrangle with the LME over plans to reform the exchange's warehousing system and introduce rules to tackle long queues that built up in the aftermath of the global financial crisis, the report said. ====================== P U E R T O R I C O ====================== AEROPOSTALE INC: To Challenge Sycamore's Status as Creditor ----------------------------------------------------------- Jessica Dinapoli, writing for Reuters, reported that U.S. teen retailer Aeropostale Inc (AROPQ.PK) plans to challenge in court private equity firm Sycamore Partners' claims as a creditor in its bankruptcy, according to a transcript from a court hearing that was seen by Reuters. According to the report, the fight between Aeropostale and Sycamore stands out from other bankruptcy cases of U.S. teen retailers, because very few of them triggered litigation. It could also complicate any effort by Sycamore to take over the retailer, the report noted. The lawsuit would follow an investigation by Aeropostale over the past several weeks into whether Sycamore drove the company into bankruptcy, in part by making the terms of its debt investment in the company in 2014 deliberately onerous, the report related. Sycamore affiliates loaned Aeropostale $150 million in 2014, and, as part of the deal, required that the chain make merchandise purchases from one of Sycamore's companies, MGF Sourcing, the report said. Aeropostale has said that MGF imposed new, burdensome terms on the retailer that precipitated its bankruptcy, the report further related. In bankruptcy court in New York, attorneys for Aeropostale said that they would pursue claims that could dramatically reduce Sycamore's recovery on its $150 million debt investment, the report said. It also intends to challenge Sycamore's ability to use the money it is owed as credit in bidding for the company in a bankruptcy auction scheduled for August, the report added. About Aeropostale, Inc. Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. from Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016 the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc. has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc. and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schuback as senior vice president, general counsel and secretary. The Debtors listed total assets of $354.38 million and total debts of $390.02 million as of Jan. 30, 2016. The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc. as restructuring advisor; Stifel, Nicolaus & Company, Inc. and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11 appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee hired Pachulski Stang Ziehl & Jones LLP as counsel. CANEJAS SE: Creditors to Get Full Payment Under Plan ---------------------------------------------------- Canejas S.E. proposes to pay all its creditors in full, according to a Chapter 11 plan of reorganization it filed with the U.S. Bankruptcy Court for the District of Puerto Rico. The restructuring plan filed on July 19 provides for a 100% payment to all creditors of Canejas, including its general unsecured creditors in Class 5 which, together, assert $79,590 in claims. The proposed plan will be funded through Canejas' assets, surrendering to Banco Popular de Puerto Rico the "Edificio Mars" located in Guaynabo, Puerto Rico, which guarantees its debt to the bank. A copy of the plan outline is available for free at: https://is.gd/wWzBOZ About Canejas S.E. Canejas, S.E., a single asset real estate, filed a Chapter 11 bankruptcy petition (Bankr. D. P.R. Case No. 16-02644) on April 4, 2016. The petition was signed by Diego Chevere as managing partner. The Debtor listed total assets of $11.1 million and total debts of $8.55 million. C. Conde & Assoc. represents the Debtor as counsel. Judge Mildred Caban Flores is assigned to the case. VILLAS DEL MAR: Banco Popular Wants to Prohibit Cash Use -------------------------------------------------------- Banco Popular De Puerto Rico asks the U.S. Bankruptcy Court for the District of Puerto Rico to prohibit Villas Del Mar Hau, Inc., from using Banco Popular's cash collateral. The Debtor entered into various loan agreements with Banco Popular, which are secured by, among other things, real estate collateral which operates as a resort called Parador Villas del Mar Hau. The Debtor granted Banco Popular a lien over, among other things, all of its pre-petition and post-petition rents and revenue generated by the Real Estate Collateral. As of the Petition Date, Banco Popular is the holder of a valid, perfected, secured claim in the amount of $1,409,903.30. Banco Popular tells the Court that it has engaged in good faith efforts with the Debtor to attempt to reach an agreement pursuant to which Banco Popular may provide its consent for the use of its cash collateral and pave the way towards the potential confirmation of a consensual plan. It further tells the Court that the Debtor has failed to provide Banco Popular with the information that it had requested as part of these discussions and that the parties have not been able to reach an agreement. Banco Popular says that it informed the Debtor's counsel that it does not consent to the Debtor's continued use of cash collateral. Banco Popular further says that the Debtor has not requested an order authorizing the use of any cash collateral and that the Debtor has not requested or obtained Banco Popular's consent to use any of the cash collateral. A full-text copy of Banco Popular De Puerto Rico's Motion, dated July 20, 2016, is available at https://is.gd/RnGkYt Banco Popular De Puerto Rico is represented by: Luis C. Marini, Esq. Carolina Velaz-Rivero, Esq. O'NEILL & BORGES LLC 250 Munoz Rivera Avenue, Suite 800 San Juan, PR 00918-1813 Telephone: (787) 764-8181 Email: luis.marini@oneillborges.com carolina.velaz@oneillborges.com About Villas Del Mar Hau, Inc. Villas Del Mar Hau, Inc. filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No.: 15-10146) on December 22, 2015. The petition was Myrna Hau Rodriguez, president/owner. The Debtor is represented by Victor Gratacos Diaz, Esq., at Gratacos Law Firm. The case is assigned to Judge Enrique S. Lamoutte Inclan. The Debtor disclosed total assets of $3.80 million and estimated total debts of $4.46 million at the time of the filing. *********** 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 * * *