/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160913.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, September 13, 2016, Vol. 17, No. 181 Headlines B O L I V I A * BOLIVIA: To Promote Lake Titicaca Cleanup With IDB Assistance B R A Z I L MINERVA SA: Fitch Affirms 'BB-' IDR, Outlook Remains Stable C A Y M A N I S L A N D S AASF OFFSHORE: Shareholders' Final Meeting Set for Sept. 26 ARIETE LTD: Creditors' Proofs of Debt Due Sept. 29 FUYU (CAYMAN): Urges Creditors to File Proof of Claim GAIA GLOBAL: Creditors' Proofs of Debt Due Sept. 19 GELLA LTD: Creditors' Proofs of Debt Due Sept. 29 NEXSTAR DEVELOPING: Placed Under Voluntary Wind-Up NEXSTAR DEVELOPING OFFSHORE: Placed Under Voluntary Wind-Up NOTGER CAPITAL: Creditors' Proofs of Debt Due Sept. 28 NUWAVE COMBINED: Creditors' Proofs of Debt Due Sept. 19 TROIKA DIALOG: Creditors' Proofs of Debt Due Sept. 29 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Big Business Hails Haiti Rapprochement DOMINICAN REPUBLIC: Power Companies Blame Gov't. for Blackouts E C U A D O R BANCO PICHINCHA: Fitch Affirms 'B' IDR; Outlook Revised to Neg. M E X I C O CEMEX SAB: Re-Organises its Cementos Chihuahua Investments N I C A R A G U A * NICARAGUA: To Develop Geothermal Energy Potential With IDB Help P U E R T O R I C O EDUARDO MENDOZA: Hires Nelson Robles-Diaz as Counsel GOVERNMENT DEVELOPMENT: S&P Lowers Rating on Sr. Notes to 'D' MORGANS HOTEL: Amends Schedule 13E-3 Transaction Statement NORFE GROUP: Needs Until Nov 13 to File Chapter 11 Plan T R I N I D A D & T O B A G O * TRINIDAD & TOBAGO: SBA Tells Government to Cut Wastage - - - - - ============= B O L I V I A ============= * BOLIVIA: To Promote Lake Titicaca Cleanup With IDB Assistance --------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a total of $86 million in loans and grants to support wastewater treatment, solid waste management and other actions in Bolivia's Katari River watershed in order to reduce pollution in Lake Titicaca, into which the Katari empties its waters. The funds will support the implementation of a resilient, integral watershed management model that will include wastewater treatment for 165,000 households, connecting 5,000 homes to the sewer system, and providing solid-waste landfill disposal services to another 10,000 homes. "The Titicaca basin has been suffering for years from the effects of climate change and contamination from domestic, industrial and mining wastewater discharges," said Omar Garzonio, IDB project team leader. "This project is a first but very important step in the process of reverting this situation." Building, improving and enhancing wastewater treatment plants and sewer systems will demand a $65 million investment over the project's five-year implementation period. Another $7 million will be used to purchase landfill operation machinery and vehicles and to finance the deployment of more than 500 solid waste collection containers. The funds will also help build drainage systems and access cells for the Copacabana and Tiahuanaco landfills; build three new landfills or equivalent facilities; and close three existing dumpsites. An additional $9 million will be earmarked for management strengthening to help cope with existing and anticipated climate change impacts, pollution source identification, personnel training, and communications. The funding consists of several components: A $25 million loan from the Bank's ordinary capital for a 30-year term, with six years of grace and a LIBOR-based interest rate; a soft $4.5 million loan from the IDB's Fund for Special Operations for a 40-year term, with 40 years of grace at 0.25 percent fix interest; and $47.3 million from the grant leverage mechanism, from the IDB's ordinary capital; these resources, which total $77.3 million, will be complemented with a $8.4 million grant from the European Union, taking the operation's grand total to $85.7 million. As reported in the Troubled Company Reporter-Latin America on July 18, 2016, Fitch Ratings downgraded Bolivia's Long-Term Foreign and Local Currency Issuer Default Ratings to 'BB-' from 'BB'. The Rating Outlook is Stable. The issue ratings on Bolivia's senior unsecured Foreign and Local Currency bonds have also been downgraded to 'BB-' from 'BB'. The Country Ceiling has been downgraded to 'BB-' from 'BB' and the Short-Term Foreign Currency IDR is affirmed at 'B'. =========== B R A Z I L =========== MINERVA SA: Fitch Affirms 'BB-' IDR, Outlook Remains Stable ----------------------------------------------------------- Fitch Ratings has affirmed Minerva S.A.'s (Minerva) Long-Term Foreign and Local Issuer Default Ratings at 'BB-'. The Rating Outlook remains Stable. Fitch has also assigned a 'BB-(EXP)' rating to Minerva S.A.'s (Minerva) proposed issuance of global notes. The proposed senior unsecured notes will mature in 2026. The notes will be issued through its wholly owned subsidiary, Minerva Luxembourg S.A. (Minerva Lux) and will be irrevocably guaranteed by Minerva. Proceeds will be used to refinance existing debt and for general corporate purposes. In conjunction with these actions, Fitch has upgraded the national scale rating of Minerva to 'A (bra)' from 'A- (bra)'. This rating action reflects Minerva's improvement within the 'BB-' rating level due to lower leverage, which has resulted from increased EBITDA and cash proceeds from a BRL741 million capital injection from Salic (UK) Ltd. Declining Net Leverage Fitch expects Minerva's net debt/EBITDA ratio to be around 3.0x in 2016, compared to 4.2x during 2015. As of June 30, 2016, the company's total debt/EBITDA remained high for the rating level at 5.2x. The improvement in net leverage is due to positive free cash flow (FCF) and the capital injection. Improving Revenues and EBITDA Minerva's revenues and EBITDA were affected positively by the full integration of past acquisitions, increased export sales and ability to implement cost efficiency measures. Minerva enjoyed higher prices for fresh beef in the domestic market due to its strategy of optimizing distribution channels and focusing on food service and small and medium retailers. As of the LTM ended June 30, 2016, the company reported net revenues and EBITDA growth of 14.4% and 36.6%, respectively, while EBITDA margin increased by 200bps to 11.5% compared to the same period last year. Cash Flow Turns Positive Fitch expects Minerva's FCF after interest expense to improve to more than BRL250 million in 2016 from BRL34 million in 2015. The improvement will be driven by a reduction in capex as investments in recently acquired plants taper off. The ramping-up of these assets, particularly those in Colombia, should improve capacity utilization levels and dilute fixed costs. These transactions are likely to enhance the company's geographic diversification but not its product diversification. Improving Industry and Domestic Outlook Cattle prices are projected to soften in Brazil during 2017 as the availability of cattle for slaughter increases. The herd size is at a record level of nearly 220 million head. Positively, Brazilian beef producers continue to have access to more export markets. In May 2015, mainland China approved Brazilian beef imports and in August 2016 the United States agreed to open its market to Brazilian beef, which will boost demand from 2016 onwards and should facilitate the opening of additional markets for Brazilian beef producers. Furthermore, it appears that the Brazilian market is close to reaching a bottom from an economic perspective, which should lead to more favorable domestic demand dynamics. Product, Country Concentration Risks Minerva is less diversified from a product and geographic position than the two other large protein companies based in Brazil, JBS S.A. and Marfrig S.A. About 69% of Minerva's slaughtering capacity is located in Brazil, 13% in Uruguay, 13% Paraguay and 5% in Colombia. With its large export presence, the company's profitability is also closely tied to exchange rate variations. Among the significant risks faced by the company are a downturn in the economy of a given export market, the imposition of increased tariffs or sanitary barriers, and strikes or other events that may affect the availability of ports and transportation. Minerva's export revenues represent 68% of total revenues. KEY ASSUMPTIONS -- Middle single digits revenues growth boosted by volume growth in beef division exports (6%), and stable volumes and higher prices in domestic market compared to 2015. -- Stable and sustained EBITDA margins going forward; -- Positive FCF; -- Adjusted net leverage below 3.0x in 2016, deleveraging going forward; -- No Dividends payment in 2016. RATING SENSITIVITIES Positive Rating Triggers: An upgrade could be triggered by additional geographic and product diversification, continuous positive free cash flow generation and substantial decreases in gross and net leverage to below 4.5x and 3.0x, respectively, on a sustained basis. Negative Rating Triggers: A negative rating action could occur as a result of a sharp contraction of Minerva's performance, increased net leverage above 5x on a sustained basis as a result of either a large debt-financed acquisition or asset purchases, or as a result of a severe operational deterioration due to disruptions in exports. LIQUIDITY Minerva's liquidity remains adequate as of June 30, 2016; liquidity is supported by BRL2.7 billion of cash and cash equivalents while short-term debt totals BRL1.3 billion. Around 23% of debt is short term. The main debt repayment is due in 2023 (BRL2.8 billion). Approximately 84% of total debt was exposed to foreign exchange variation. FULL LIST OF RATING ACTIONS Fitch has taken these actions on Minerva: Minerva: -- Long-Term Foreign & Local Currency IDR affirmed at 'BB-'; Outlook Stable; -- National Long-Term Rating upgraded to 'A(bra)' from 'A-(bra)'; Outlook Stable. Minerva Luxembourg S.A.: -- Senior unsecured notes due 2017, 2019, 2022, 2023 and perpetual affirmed at 'BB-'; -- Senior unsecured notes due 2026 rated 'BB-(EXP)'. ========================== C A Y M A N I S L A N D S ========================== AASF OFFSHORE: Shareholders' Final Meeting Set for Sept. 26 ----------------------------------------------------------- The shareholders of AASF Offshore Fund, Ltd will hold their final meeting on Sept. 26, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Elian Fiduciary Services (Cayman) Limited c/o Lynden John Tamara Hill e-mail: lynden.john@elian.com Telephone: +1 (345) 815-1456 ARIETE LTD: Creditors' Proofs of Debt Due Sept. 29 -------------------------------------------------- The creditors of Ariete Ltd. are required to file their proofs of debt by Sept. 29, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 10, 2016. The company's liquidator is: Delio Jose De Leon Mela Forbes Hare Cassia Court, Camana Bay Suite 716, 10 Market Street Grand Cayman KY1-9006 Cayman Islands Telephone: +1 (345) 943-7700 FUYU (CAYMAN): Urges Creditors to File Proof of Claim ----------------------------------------------------- Creditors of Fuyu (Cayman) Venture Capital Fund are required to file their proofs of debt to be included in the company's dividend distribution. The company was wound up on Nov. 29, 2006, and dissolved automatically by operation of Article 138 of its Amended and Restated Memorandum and Articles of Association. The company's liquidator is: Yung Huang Chou c/o Maples and Calder, Attorneys-at-law The Center, 53rd Floor 99 Queen's Road, Central Hong Kong GAIA GLOBAL: Creditors' Proofs of Debt Due Sept. 19 --------------------------------------------------- The creditors of Gaia Global Select Fund Limited are required to file their proofs of debt by Sept. 19, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 16, 2016. The company's liquidator is: Gaia Global Holding Limited c/o Willow House, Floor 4, Cricket Square P.O. Box 268 Grand Cayman KY1-1104 Cayman Islands Telephone: +1 (345) 949-2648 GELLA LTD: Creditors' Proofs of Debt Due Sept. 29 ------------------------------------------------- The creditors of Gella Ltd. are required to file their proofs of debt by Sept. 29, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 10, 2016. The company's liquidator is: Delio Jose De Leon Mela Forbes Hare Cassia Court, Camana Bay Suite 716, 10 Market Street Grand Cayman KY1-9006 Cayman Islands Telephone: +1 (345) 943-7700 NEXSTAR DEVELOPING: Placed Under Voluntary Wind-Up -------------------------------------------------- On June 30, 2016, the sole shareholder of Nexstar Developing Opportunities Master 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: Peter W. Getsinger Sophia Leavett c/o Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 NEXSTAR DEVELOPING OFFSHORE: Placed Under Voluntary Wind-Up ----------------------------------------------------------- On June 30, 2016, the sole shareholder of Nexstar Developing Opportunities Offshore 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: Peter W. Getsinger Sophia Leavett c/o Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 NOTGER CAPITAL: Creditors' Proofs of Debt Due Sept. 28 ------------------------------------------------------ The creditors of Notger Capital Ltd. are required to file their proofs of debt by Sept. 28, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 10, 2016. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Kim Charaman Telephone: (345) 943-3100 NUWAVE COMBINED: Creditors' Proofs of Debt Due Sept. 19 ------------------------------------------------------- The creditors of Nuwave Combined Futures Portfolio Ltd. are required to file their proofs of debt by Sept. 19, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 2, 2016. The company's liquidator is: Troy W. Buckner 35 Waterview Boulevard Parsippany, NJ 07054 Telephone: (973) 888-6810 Facsimile: (973) 888-6810 TROIKA DIALOG: Creditors' Proofs of Debt Due Sept. 29 ----------------------------------------------------- The creditors of Troika Dialog Group Limited are required to file their proofs of debt by Sept. 29, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 8, 2016. The company's liquidator is: Cayman Law Group Ltd c/o Chris Narborough Telephone: +1 (345) 9253199 Cayman Law Group Ltd DMS House, Ground Floor Genesis Place, Dr. Roys Drive P.O Box 1103, George Town Grand Cayman KY1-1102 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Big Business Hails Haiti Rapprochement ---------------------------------------------------------- Dominican Today reports that the National Council Business (CONEP) president Rafael Blanco hailed foreign ministers Miguel Vargas' announcement that Haiti agreed to lift its ban on the overland entry of 23 Dominican products. Mr. Blanco said the CONEP puts at the disposal of the parties to support the establishment of measures to strengthen and formalize the exchange between the two countries, according to Dominican Today. Mr. Blanco said representatives of the Dominican and Haitian business and government sectors had expressed concern over the lack of customs controls at the border, and the ensuing spread of smuggling, says the report. Mr. Blanco said the bans harm the economy of both countries and don't solve the problems affecting bilateral trade, the report notes. Mr. Blanco said formal trade between the two states must be encouraged, which in his view is the toughest challenge, the report relays. In a statement, the CONEP urged both countries to develop joint programs to formalize trade, professional services and customs controls at the border, and develop infrastructure and effective trade processes, adds the report. 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. DOMINICAN REPUBLIC: Power Companies Blame Gov't. for Blackouts -------------------------------------------------------------- Dominican Today reports that the Dominican Electricity Industry Association (ADIE) blamed the rolling blackouts on a discretionary decision by the State's Energy Distribution Companies (EDES). Citing data from the electrical system's Coordinator Agency (OC) compiled two weeks ago, the ADIE said there was more than enough energy available to meet the country's demand during that period, according to Dominican Today. OC statistics "show that the power companies were willing to provide to the system some 363,892.6 MWh of energy," the report notes. However, demand that was supplied in that period was 331,192.6 MWh, "leaving a surplus of energy that was available and wasn't acquired of 32,700 megawatts," the report relays. The ADIE added that the number of blackouts which the distribution companies arranged in the same period -- from Aug. 29 to Sept. 4 - - total of 35,868.7 megawatts, 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. ============= E C U A D O R ============= BANCO PICHINCHA: Fitch Affirms 'B' IDR; Outlook Revised to Neg. --------------------------------------------------------------- Fitch Ratings has affirmed Banco Pichincha C.A. y Subsidiarias (Pichincha) and Banco de la Produccion S.A. y Subsidiarias' (Produbanco, commercially known as Produbanco Grupo Promerica) Long-term Local and Foreign Currency Issuer Default Ratings (IDRs) at 'B'. The Rating Outlooks are revised to Negative from Stable. The Negative Outlook on Pichincha and Produbanco reflects the recent revision of Ecuador's Rating Outlook to Negative from Stable. In Fitch's view, the operating environment's high influence on the banks' ratings, which limits their potential growth, profitability and internal capital-generation capacity, as well as direct exposure to Ecuador through investment portfolios, constrain the banks' ratings to the sovereign's creditworthiness. Ecuador's growth and fiscal outlook has deteriorated due to lower oil prices and higher financing needs. The economy has entered into recession in 2016 with an expected contraction of 2%. KEY RATING DRIVERS IDRS AND VRs Pichincha's Viability Rating (VR), or standalone creditworthiness, drives its long-term IDR. The bank's operating environment and weak profitability ratios highly influence its VR. The bank's VR also factors in pressured asset quality, tight capitalization, ample liquidity and a strong franchise. Pichincha's capital cushion to absorb unexpected losses is still limited compared with international peers. However, in Fitch's view, this is mitigated by conservative reserve coverage, moderate asset growth and a strong risk profile. Produbanco's IDRs are driven by their VR. The bank's VR is highly influenced by the operating environment and tighter profitability. Despite its modest profitability, Produbanco's capital position remains adequate and has improved since 2015, as a result of reduced dividend payments and modest growth. The bank's asset quality compares well with the banking system average although it shows signs of deterioration. Produbanco's liquidity remains ample. SUPPORT RATING AND SUPPORT RATING FLOOR Pichincha and Produbanco's Support Rating (SR) of '5' and Support Rating Floor (SRF) of 'NF' indicate that Fitch believes external support cannot be relied upon, due to Ecuador's limited funding flexibility as well as the lack of a lender of last resort. RATING SENSITIVITIES IDRS AND VRs Any negative rating action on the sovereign would also lead to a similar action on Pichincha and Produbanco's IDRs and VRs. Furthermore, a significant reduction in these banks' internal capital generation or an acceleration of growth that leads to a decrease in the Fitch Core Capital (FCC) metrics consistently below 9% along with a material decline in excess loan loss reserves could also result in negative rating actions. SUPPORT RATING AND SUPPORT RATING FLOOR Ecuador's propensity or ability to provide timely support to these banks is not likely to change given the sovereign's low speculative-grade IDR. As such, the SR and SRF have no upgrade potential. Fitch has affirmed these ratings: PICHINCHA -- Long-Term Foreign Currency IDR at 'B'; Outlook revised to Negative from Stable; -- Short-Term Foreign Currency IDR at 'B'; -- Viability Rating at 'b'; -- Support at '5'; -- Support Floor at 'NF'. PRODUBANCO -- Long Term Foreign Currency IDR at 'B'; Outlook revised to Negative from Stable; -- Short-Term Foreign Currency IDR at 'B'; -- Viability Rating at 'b'; -- Support at '5'; -- Support Floor at 'NF'. =========== M E X I C O =========== CEMEX SAB: Re-Organises its Cementos Chihuahua Investments ---------------------------------------------------------- emnet.com reports that Grupo Cementos de Chihuahua's ownership is being restructured, with Cemex taking a 23 per cent direct stake as well as a minority interest in Camcem, which will be the majority shareholder in Cementos de Chihuahua. Cementos de Chihuahua will remain a quoted company. Cementos de Chihuahua saw its turnover for the first six months decline by 1.4 per cent to US$333.4 million, with the US operations registering a 4.2 per cent improvement to US$235.4 million, while the Mexican activities registered a 13.3 per cent reduction to US$88 million, though in local currency there was a 3.3 per cent improvement, according to emnet.com. The originally-planned disposal of two cement works and three cement terminals was well as certain ready-mixed concrete and aggregates activities in Texas and New Mexico by Cemex to Cementos de Chihuahua for US$400 million has been reduced to US$306 million by the exclusion of the Lyons (CO) cement works and the Florence (CO) cement terminal, the report notes. As reported in the Troubled Company Reporter-Latin America on July 27, 2016, Fitch Ratings affirmed CEMEX, S.A.B. de C.V.'s (CEMEX) Long-Term Issuer Default Rating (IDR) at 'BB-'. Fitch has also upgraded the company's National Scale Long-Term Rating to 'A(mex)' from 'A- (mex)' and affirmed the company's National Scale Short-Term rating at 'F2 (mex)'. The Rating Outlook remains Stable. ================= N I C A R A G U A ================= * NICARAGUA: To Develop Geothermal Energy Potential With IDB Help ----------------------------------------------------------------- Nicaragua will enhance its renewable energy generation capacity and improve its power transmission system under a $103.4 million project with financing from the Inter-American Development Bank (IDB). In 2015, 50.6 percent of the country's energy generation came from renewable sources, of which 30% was geothermal. Nicaragua's estimated geothermal potential is 1,500 MW, of which only 10 percent have been developed. Meanwhile, energy demand has been on the rise in recent years, growing 2.6 percent in 2014 and 4.6 percent in 2015. The project will support site investigation to help determine the technical viability of exploiting the geothermal potential of the CosigÅina field in northwestern Nicaragua, including activities such as commercial-width well exploration. It will also develop mechanisms to attract private investment in order to help stimulate the country's geothermal generation. Planned construction of transmission infrastructure and of electrical substations will help improve energy service delivery, meet current and future demand in a reliable fashion, and complete Nicaragua's adjustment to the regional energy transmission system SIEPAC. The program's total cost is $103.4 million, of which $51.4 million come from an IDB loan; $25 million from the Korea Infrastructure Development Co-financing Facility in Latin America and the Caribbean, managed by the IDB; $17 million are grants from the Clean Technology Fund (CTF) and the Scaling Up Renewable Energy in Low Income Countries Program (SREP); and $10 million are local counterpart funds. As reported in the Troubled Company Reporter-Latin America on Aug. 26, 2016, Fitch Ratings has affirmed Nicaragua's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B+' with a Stable Outlook. The Country Ceiling is affirmed at 'B+'. The Short-Term Foreign and Local Currency IDRs are affirmed at 'B'. ====================== P U E R T O R I C O ====================== EDUARDO MENDOZA: Hires Nelson Robles-Diaz as Counsel ---------------------------------------------------- Eduardo Mendoza Corporation seeks authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Nelson Robles-Diaz Law Offices, P.S.C. as counsel. The Debtor requires Robles-Diaz to: (a) prosecute the motions and applications filed; (b) advise/represent the Debtor with respect to its duties, rights and powers; (c) advise/represent the Debtor in negotiations with creditors; (d) advise/represent the Debtor in analyzing the claims; (e) advise/represent the Debtor with respect to its various investigations of claims, causes of action and other matters; (f) advise/represent the Debtor with respect to any negotiations and litigation that may be necessary, and at hearings and other proceedings; (g) advise/represent the Debtor with respect to pleadings and applications as may be necessary in furtherance of the Debtor's interests and objectives; and (h) advise/representing the Debtor with respect to such other matters as may be required and are deemed to be in the interests of the Debtor in accordance with the applicable law. Robles-Diaz will be paid at these hourly rates: Nelson Robles-Diaz $250 Paralegals and Law Clerks $40-$50 Robles-Diaz will also be reimbursed for reasonable out-of-pocket expenses incurred. The Debtor and Robles-Diaz agreed on a $12,000 retainer. Nelson Robles-Diaz 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 Debtor and its estate. Nelson Robles-Diaz can be reached at: Nelson Diaz Robles, Esq. NELSON ROBLES-DIAZ LAW OFFICES PSC P.O. Box 192302 San Juan, PR 00912 Tel: (787) 294-9518 Fax: (787) 294-9519 E-mail: nroblesdiaz@gmail.com Eduardo Mendoza Corporation, filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-06672) on August 22, 2016, disclosing under $1 million in both assets and liabilities. The Debtor is represented by Nelson Robles Diaz, Esq. GOVERNMENT DEVELOPMENT: S&P Lowers Rating on Sr. Notes to 'D' ------------------------------------------------------------- S&P Global Ratings said it lowered certain of its issue-level ratings on the Government Development Bank for Puerto Rico's (GDB) senior unsecured notes outstanding to 'D' (default) from 'CC' following confirmation of missed interest payments on debt service due Aug. 1 and Sept. 1, 2016. S&P Global Ratings also affirmed its 'SD' (selective default) long-term issuer credit rating on GDB. On Sept. 7, the trustees of the aforementioned securities, through an Electronic Municipal Market Access filing, confirmed that GDB had failed to cure its defaults on the interest payments that were due Aug. 1, through the 30-day grace period. In addition, they confirmed that GDB was in default on all interest payments due Sept. 1, 2016 as well, because the GDB board of directors decided not to seek authorization (as part of the Executive Order) from the governor to make this interest payment. No principal was due on any of the above dates. As a result, S&P has lowered its issue rating on several senior unsecured GDB notes to 'D' (default) from 'CC' and affirmed our 'SD' long-term issuer credit rating. "We believe a default on GDB's other upcoming debt maturities and interest payments is virtually certain, and this is reflected in our 'CC' rating on the securities not currently in default," said S&P Global Ratings credit analyst Shameer Bandeally. S&P will likely lower its ratings on such instruments to 'D' upon an actual default of principal or interest payment on the respective scheduled due dates. When all of GDB's debt is in default, S&P will likely lower the issuer credit rating to 'D' (for default) from the current 'SD'. MORGANS HOTEL: Amends Schedule 13E-3 Transaction Statement ----------------------------------------------------------- A fifth amendment to the 13E-3 transaction statement was filed with the Securities and Exchange Commission on Sept. 7, 2016, jointly by (i) Morgans Hotel Group Co., (ii) Trousdale Acquisition Sub, Inc., (iii) SBEEG Holdings, LLC, and (iv) Yucaipa Hospitality Investments, LLC. On Aug. 4, 2016, the Company filed with the SEC a definitive proxy statement on Schedule 14A, regarding, among other things, a proposal to adopt that certain Merger Agreement by and among the Company, SBE and Merger Sub, dated as of May 9, 2016. Concurrently with the filing of the Amendment No. 5, the Company filed with the SEC certain additional Soliciting Material on Schedule 14A which contain certain amendments to the Proxy Statement. A full-text copy of the regulatory filing is available at: https://is.gd/sXaEri About Morgans Hotel Group Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) -- http://www.morganshotelgroup.com/-- is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico. Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York and Palm Springs, California. Morgans Hotel reported net income attributable to common stockholders of $5.45 million on $220 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $66.6 million on $234 million of total revenues for the year ended Dec. 31, 2014. As of June 30, 2016, Morgans Hotel had $512 million in total assets, $737 million in total liabilities and a total deficit of $225 million. NORFE GROUP: Needs Until Nov 13 to File Chapter 11 Plan ------------------------------------------------------- Norfe Group, Corp., asks the U.S. Bankruptcy Court to extend by 60 days the exclusive periods during which only the Debtor may file and solicit acceptances of a plan of reorganization through Nov. 13, 2016 and Feb. 9, 2017, respectively. The Debtor submits that the Court's resolution of these contested matters, that are scheduled to be heard on Oct. 3, 2015, is necessary in order to present a feasible Plan: (a) Puerto Rico Asset Portfolio 2013-1 International, LLC's proof of claim number 5 and the objection thereto, and (b) the extent of PRAPI's alleged rights and security interest in the rental income arising from Debtor's Shopping Center operating under the name of Paseo Del Plata, at Dorado, Puerto Rico. Moreover, the Debtor asserts that it is in the process of evaluating various alternatives for financing, with a bearing on the nature and feasibility of the Plan. About Norfe Group Norfe Group Corp. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-00285) in Old San Juan, Puerto Rico, on Jan. 20, 2016. The petition was signed by David Efron, president. The firm scheduled $17,269,436 in total assets and $31,441,591 in total liabilities. The Debtor tapped Charles Alfred Cuprill, Esq., at Charles A Cuprill, PSC Law Office, as counsel. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultant. ================================ T R I N I D A D & T O B A G O ================================ * TRINIDAD & TOBAGO: SBA Tells Government to Cut Wastage -------------------------------------------------------- Richardson Dhalai at Trinidad and Tobago Newsday reports that the President of the San Fernando Business Association (SBA), Daphne Bartlett, is suggesting to Government that the country's 2017 budget should not exceed TT$50 billion dollars and should be pegged on an oil price of between US$35 to US$37 dollars per barrel. In a telephone interview, Ms. Bartlett also weighed in on the performance of the Dr. Keith Rowley administration saying government should present a "plan of action" similar to the previous Vision 2020 which had been a cornerstone of the former Patrick Manning administration, according to Trinidad and Tobago Newsday. Ms. Bartlett also recommended that the prime minister initiate moves to bring in suitably qualified people in such areas as finance and economics following his admission that the present cabinet was not very strong, the report notes. And regarding the budget, she said with a TT$50 billion budget, there would still be a shortfall but one that is manageable, the report notes. Ms. Bartlett continued, "We are saying that wastage has to be cut off. We have a lot of wastage and we can say that because you can look at the other islands, and there are islands in the Caribbean where they run the whole country on less the amount than we allocate to the Ministry to National Security," the report relays. "Look at Barbados, their budget is smaller than the budget for Tobago and they have a bigger population than Tobago, but their crime detection rate is so much better than us. What are they doing right that we are not doing right?" Total expenditure of the 2016 Barbados budget, according to Minister of Finance and Economic Affairs Chris Sinckler, was "expected and projected to be TT$4.239 billion," the report discloses. Meanwhile, WTI crude oil was trading at US$44.83 per barrel while Brent crude was US$47.26 per barrel, the report adds. *********** 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 * * *