/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160923.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 Friday, September 23, 2016, Vol. 17, No. 189 Headlines B A R B A D O S BARBADOS: CDB President Issues Warning on Debt Situation B O L I V I A * BOLIVIA: Gets US$60MM IDB Loan for Formalization of Properties B R A Z I L BRB-BANCO DE BRASILIA: Moody's Withdraws B1 Currency Dep. Rating VIVER INCORPORADORA: Moody's Lowers Corporate Family Rating to C C A Y M A N I S L A N D S ARDMORE INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 31 ENGAGED CAPITAL: Creditors' Proofs of Debt Due Oct. 3 INSTINCT DARK: Placed Under Voluntary Wind-Up INSTINCT JAPAN: Placed Under Voluntary Wind-Up LAURION CAPITAL: Placed Under Voluntary Wind-Up LAURION CAPITAL MASTER: Placed Under Voluntary Wind-Up LIFE PREMIUM: Creditors' Meeting Set for Sept. 30 PETERSHILL US: Commences Liquidation Proceedings PETERSHILL US GLOBAL: Commences Liquidation Proceedings PETERSHILL US GP: Commences Liquidation Proceedings RM INVESTMENT: Placed Under Voluntary Wind-Up ROSEMONT OFFSHORE: Creditors' Proofs of Debt Due Oct. 31 SSF III: Placed Under Voluntary Wind-Up D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Industries Support Ban on Dollar-Only Charges G R E N A D A LIAT: PM Says Grenada Prepared to Offer Subsidy P A N A M A BANCO INTERNACIONAL: S&P Affirms 'BB-' ICR; Outlook Remains Neg. P U E R T O R I C O FASHION STYLE: Unsecureds to Recoup 15% Under Plan GLOBAL FITNESS SOLUTION: Court to Consider Plan Outline on Oct. 4 JOSE MALDONADO MALAVE: Plan Disclosure Hearing Reset to Nov. 1 SAN JUAN OIL: Nov. 18 Disclosure Statement Hearing Set V E N E Z U E L A VENEZUELA: Bus Drivers Bring Chaos to Caracas - - - - - =============== B A R B A D O S =============== BARBADOS: CDB President Issues Warning on Debt Situation -------------------------------------------------------- Trinidad Express reports that the President of the Barbados-based Caribbean Development Bank Dr. Warren Smith, is warning the Barbados government that it needs to deal urgently with the island's worsening debt situation. In an interview with the online publication, Barbados TODAY, Mr. Smith is suggesting that "front end adjustments" were urgently needed to correct the economic slide, according to Trinidad Express. Mr. Smith described the island's overall fiscal position as "unsustainable" and cautioned that if left unchecked, it would do untold damage to the local currency, the report notes. The report relays that the Jamaican-born economist said that Barbados should consider privatising a number of state entities including the Grantley Adams International Airport (GAIA) and the Bridgetown Port. "Long gone are the days when governments need to be involved in things such as airports and seaports. We do not believe that these types of investments need to continue to be in the hands of government," Mr. Smith said, acknowledging there would be political consequences arising out of the sale of these perceived crown jewels, the report says. Mr. Smith used the case of Jamaica where the government divested the Sangster International Airport in Montego Bay, the report notes. "Foreign investors have come in, they have pumped money into the expansion of the airport, which is now promoting the growth of their tourism industry," Mr. Smith said, noting also that the recently privatized Port of Kingston was now attracting large investments, the report discloses. But Mr. Smith told the Barbados TODAY that in the case of Barbados there was room for both domestic and foreign investment in GAIA and the Bridgetown Port, noting "these are opportunities to relieve the fiscal burden that the Governments face, so that you can put your priority on other things," the report relays. The CDB head divestment was urgent since it placed the island's fixed exchange rate under threat, the report notes. "I am not saying that you are at threat at the current time. What I'm saying is that if these things are not addressed ipso facto you are going to find yourself in a position where you might not be able to maintain a feature of your economic model that appears to be of very great value to Barbadian authorities and to the Barbadian people. So fiscal rectitude is key," the report quoted Mr. Smith as saying. "We need to have it and we can't be in a situation where, for a protracted period, we are running fiscal deficits that are unsustainable, that have implications for debt and ultimately for the overall strength of the economy." Mr. Smith also suggested that the Freundel Stuart government could do away with the state-owned Caribbean Broadcasting Corporation (CBC) saying it could find other mechanisms for getting its message out, the report notes. In response to Minister of Finance Chris Sinckler's suggestion that many state entities were highly indebted and therefore would not be attractive for divestment, Mr. Smith was adamant that privatization was among a raft of options that could be pursued, even though he acknowledged that the decision was not his to take, the report relays. "At the end of the day the options that you choose to pursue must put you in a position where you get your fiscal house in order, address your indebtedness," Mr. Smith said, notes the report. Mr. Smith also expressed support for the government's "absolutely vital" fiscal consolidation program, saying it was moving in "the right direction", even as he stressed that the measures were simply not enough, the report relays. However, Mr. Smith said while the CDB had no difficulties with the policies being pursued, "the pace of adjustment is where we might have some difference with the Government of Barbados, the report notes. "If you look at where the debt trajectory is going, it is very worrisome," he told Barbados TODAY, adding that in order "to be able to bring that growth of sovereign indebtedness to a halt, and put it in the other direction where it needs to go, we need to address the fiscal [situation]," the report discloses. Mr. Smith however also emphasized the need to address growth. "It is a two-dimensional kind of response. So that yes, the fiscal adjustment program is absolutely vital; if you don't address it all sorts of unfortunate things are going to unfold. So that has to be high priority," Mr. Smith warned, the report adds. As reported in the Troubled Company Reporter-Latin America on April 5, 2016, Moody's Investors Service downgraded Barbados' government bond rating and issuer rating to Caa1 and changed the outlook to stable. ============= B O L I V I A ============= * BOLIVIA: Gets US$60MM IDB Loan for Formalization of Properties ---------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a loan in the amount of $60 million to finance the modernization of land administration and cadastral sweeps for formalization of rural properties, as well as to strengthen the environmental and social management capacity. Areas of intervention include the Departments of La Paz, Potosi and Cochabamba. This project will help complete the efforts of the Bolivian government to provide land titling for 106 million hectares over the last two decades. Specifically, the program will enable the formalization of property rights in 25 million remaining hectares. Land titling increases the income of rural populations and encourages producers to make investments that increase productivity and sustainability. The total cost of the project is US$100 million to be financed as follows: $51 million from the Bank's ordinary capital resources, $9 million from the Fund for Special Operations (FSO) of the Bank, and $40 million from INRA, the local counterpart. The loan from the Bank's ordinary capital has a six-year grace period, a 30-year term and an interest rate based on LIBOR. FSO funding has a term of 40 years with a 10-year grace period and a fixed annual rate of 0.25 percent. 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 =========== BRB-BANCO DE BRASILIA: Moody's Withdraws B1 Currency Dep. Rating ---------------------------------------------------------------- Moody's Investors Service has withdrawn all ratings assigned to BRB-Banco de Brasilia S.A. (BRB), including the long and short- term local and foreign currency deposit ratings of B1 and Not Prime, respectively; the long and short-term Brazilian national scale deposit ratings of Baa2.br and BR-3, respectively. Moody's has also withdrawn the baseline credit assessment (BCA) of b1; the adjusted BCA of b1; and the long- and short-term counterparty risk assessments of Ba3(cr) and Not Prime(cr). Before the withdrawal, the outlook on all ratings was stable. The following ratings were withdrawn: Issuer: BRB-Banco de Brasilia S.A. -- Long-Term Global Local Currency Deposit Rating, previously rated B1 -- Short-Term Global Local Currency Deposit Rating, previously rated Not Prime -- Long-Term Foreign Currency Deposit Rating, previously rated B1 -- Short-Term Foreign Currency Deposit Rating, previously rated Not Prime -- Long-Term Brazilian National Scale Deposit Rating, previously rated Baa2.br -- Short-Term Brazilian National Scale Deposit Rating, previously rated BR-3 -- Baseline Credit Assessment, previously rated b1 -- Adjusted Baseline Credit Assessment, previously rated b1 -- Long-Term Counterparty Risk Assessment, previously rated Ba3(cr) -- Short-Term Counterparty Risk Assessment, previously rated Not Prime(cr) -- Outlook, Changed To Rating Withdrawn From Stable RATINGS RATIONALE Moody's has withdrawn the ratings for its own business reasons. The last rating action on BRB-Banco de Brasilia S.A. was on 11 May 2016, when Moody's repositioned the bank's long- and short-term Brazilian national scale rating at Baa2.br and BR-3, respectively, in view of the recalibration of the national rating scale methodology. All other ratings remained unchanged. BRB-Banco de Brasilia S.A. is headquartered in Brasilia and had total assets of BRL 13.8 billion ($ 4.3 billion) and equity of BRL 1.1 billion ($ 341.2 million) as of 30 June 2016. VIVER INCORPORADORA: Moody's Lowers Corporate Family Rating to C ---------------------------------------------------------------- Moody's America Latina Ltda. downgraded the corporate family rating assigned to Viver Incorporadora e Construtora S.A. and to its first issuance of senior secured debentures to C from Caa3 on the global scale and to C.br from Caa3.br on the Brazilian national scale. The downgrade follows Viver's filing for judicial recovery under the Brazilian Bankruptcy and Reorganization Law at the Judicial District of Sao Paulo State on Sept. 16, 2016. Ratings downgraded: Viver Incorporadora e Construtora S.A. -- Corporate Family Rating: to C from Caa3 (global scale); to C.br from Caa3.br (national scale); -- BRL300 million senior secured debentures (First Issuance, approximately BRL215 million outstanding): to C from Caa3 (global scale); to C.br from Caa3.br (national scale); RATINGS RATIONALE The bankruptcy filing was triggered by an increasing number of creditors executing judicial claims to take possession of collaterals associated to delinquent secured loans following a prolonged period of financial distress and weak industry fundamentals. The company reported knowledge of about BRL33.5 million in total claims for collaterals assigned to secured loans in September before the filing. Viver's financial distress results from weak operating performance, untenable capital structure and limited financial flexibility to meet its near term debt service and working capital requirements. Unsuccessful ventures and cost overruns triggered a major turnaround business plan initiated in late 2012. However, the general deterioration in the overall homebuilding industry that was aggravated by the economic downturn since 2015 created further challenges to the company's liquidity, as per reduced funding availability for home acquisition, increased sales cancellations and delayed process of credit takeout after project completions. As a result, the significant efforts towards asset sales, reduction in launches and deleveraging strategy over the last couple years were not enough to avoid a distressed exchange in December 2013 and payment default on rated debt in April 2015. In June 30, 2016, Viver reported BRL1.2 billion in financial debt, of which BRL645 million was related to project finance loans under the Sistema Financeiro de Habitacao (SFH) and the remainder associated to secured working capital loans, securitization of receivables and corporate debt. The total amount is equivalent to 135.6% of its total capitalization. At the same time, the company reported short-term cash availability and marketable securities of modest BRL26 million. According to Moody's standard adjustments, total gross debt includes payables to land acquisition, refinanced taxes and obligations in sale of receivables and with investors. Subsequent to the actions, all Viver's ratings will be withdrawn shortly following the court approval of the judicial request. The judicial recovery request needs to be approved by the court in up to five days and then ratified by shareholders on an extraordinary shareholders' meeting on Oct. 5, 2016. Following the court decision authorizing the filing, the company has 60 days to present the recovery plan, that, if approved by the general meeting of creditors, will bind all of the company's creditors that are subject to the recovery proceeding. Some claims are not part of the recovery process, including credits subject to fiduciary alienation, leases and taxes. The filing of a recovery leads to an automatic stay period of 180 days, when all enforcement actions and executions against the debtor are automatically suspended. For the purpose of voting in reorganizations, creditors will be divided into three broad classes: (i) Labor credits; (ii) Secured credits; and (iii) Privileged, unsecured and subordinated credits. All three classes must approve the recovery plan. In class (1) the plan should be approved by the majority of members while in classes (2) and (3), the plan may be approved by at least 50% of total claim amount and simple majority of members. Secured creditors vote in class (2) up to the value of the collateral and with class (3) for the deficient portion. Viver's C corporate family rating reflects its untenable capital structure, very limited financial flexibility given its large debt burden and challenging momentum for funding through capital markets. In Moody's view the judicial recovery proceeding will lead to severe losses to creditors, associated with a C rating. Headquartered in Sao Paulo, Brazil, Viver is an integrated homebuilder focused on high-rise construction for the middle and mid-high income families primarily in the Sao Paulo state. The company is also involved in real estate developments for commercial, tourism and the low income residential segments. In the LTM ended June 30, 2016, Viver reported net revenues of BRL97 million (USD26 million) and net losses of BRL313 million (USD84 million). ========================== C A Y M A N I S L A N D S ========================== ARDMORE INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 31 ------------------------------------------------------------ The creditors of Ardmore International Fund SPC, Ltd. are required to file their proofs of debt by Oct. 31, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 12, 2016. The company's liquidator is: Simon Conway c/o Gabby Whitter P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949 7000 Facsimile: (345) 945 4237 ENGAGED CAPITAL: Creditors' Proofs of Debt Due Oct. 3 ----------------------------------------------------- The creditors of Engaged Capital I Offshore, Ltd. are required to file their proofs of debt by Oct. 3, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 31, 2016. The company's liquidator is: Richard Fear c/o Ryan Charles P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7364 Facsimile: (345) 945 3902 INSTINCT DARK: Placed Under Voluntary Wind-Up --------------------------------------------- On Aug. 29, 2016, the sole shareholder of Instinct Dark Horse Fund 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: Elian Fiduciary Services (Cayman) Limited Ogier c/o Jonathan Morris 11th Floor, Central Tower 28 Queen's Road Central Hong Kong Telephone: +852 3656 6000 Facsimile: +852 3656 6001 INSTINCT JAPAN: Placed Under Voluntary Wind-Up ---------------------------------------------- On Aug. 29, 2016, the sole shareholder of Instinct Japan Opportunity Fund 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: Elian Fiduciary Services (Cayman) Limited Ogier c/o Jonathan Morris 11th Floor, Central Tower 28 Queen's Road Central Hong Kong Telephone: +852 3656 6000 Facsimile: +852 3656 6001 LAURION CAPITAL: Placed Under Voluntary Wind-Up ----------------------------------------------- On Aug. 31, 2016, the sole shareholder of Laurion Capital Global Markets 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: Elian Fiduciary Services (Cayman) Limited Ogier c/o Jonathan Morris 11th Floor, Central Tower 28 Queen's Road Central Hong Kong Telephone: +852 3656 6000 Facsimile: +852 3656 6001 LAURION CAPITAL MASTER: Placed Under Voluntary Wind-Up ------------------------------------------------------ On Aug. 31, 2016, the sole shareholder of Laurion Capital Global Markets 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: Elian Fiduciary Services (Cayman) Limited Ogier c/o Jonathan Morris 11th Floor, Central Tower 28 Queen's Road Central Hong Kong Telephone: +852 3656 6000 Facsimile: +852 3656 6001 LIFE PREMIUM: Creditors' Meeting Set for Sept. 30 ------------------------------------------------- The creditors of Life Premium Fund, SPC will hold their meeting on Sept. 30, 2016, at 9:00 a.m., to elect members for the liquidation committee. The company's liquidator is: Andrew Morrison FTI Consulting (Cayman) Limited Suite 3212 53, Market Street, Camana Bay P.O. Box 30613 Grand Cayman KY1-1203 Cayman Islands Telephone: +1 (345) 743 6830 PETERSHILL US: Commences Liquidation Proceedings ------------------------------------------------ On Aug. 22, 2016, the shareholders of Petershill US GP (Lopez- Radar) Holdings 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 PETERSHILL US GLOBAL: Commences Liquidation Proceedings ------------------------------------------------------- On Aug. 22, 2016, the shareholders of Petershill US GP (Global) Holdings 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 PETERSHILL US GP: Commences Liquidation Proceedings --------------------------------------------------- On Aug. 22, 2016, the shareholders of Petershill US GP (Lopez- Global) Holdings 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 RM INVESTMENT: Placed Under Voluntary Wind-Up --------------------------------------------- On Aug. 26, 2016, the shareholders of RM Investment Management Company 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: Avalon Ltd. Reference: GL Landmark Square, 1st Floor, 64 Earth Close P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 ROSEMONT OFFSHORE: Creditors' Proofs of Debt Due Oct. 31 -------------------------------------------------------- The creditors of Rosemont Offshore Fund Ltd. are required to file their proofs of debt by Oct. 31, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 12, 2016. The company's liquidator is: Simon Conway c/o Gabby Whitter P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949 7000 Facsimile: (345) 945 4237 SSF III: Placed Under Voluntary Wind-Up --------------------------------------- On July 20, 2016, the sole shareholder of SSF III Forest Holdings Limited 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: Morgan Stanley Real Estate Special Situations Fund III, L.P. c/o Ridhiima Kapoor Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Industries Support Ban on Dollar-Only Charges ----------------------------------------------------------------- Dominican Today reports that Dominican Republic Industry Association (AIRD) president Campos de Moya rolled back the sector's critique against the Central Bank's ban on the use of veriphones for transactions only in dollars, and now state their support. "I have to admit I made a mistake a couple of days ago when I referred to the subject. I think the Central Bank is absolutely right and, what's more, I think the system was being abused. I understand that there were foreign citizens who came to Dominican Republic to withdraw cash in hard currency to repatriate to their countries. I think the Central Bank has acted properly and in compliance with the law," the report quoted Mr. de Moya as saying. Mr. de Moya reiterated that the AIRD agrees with the measure, after the explanations by the monetary authorities in a statement, according to Dominican Today. Mr. de Moya spoke after a meeting of AIRD executives with Labor minister Jose Ramon Fadul, where they stated sector's main concerns regarding employment issues, the report notes. The Central Bank said its ban aims to protect the interests and rights to free choice by cardholders and avert unwanted pressures on the exchange rate, the report relays. The ban also provides a 90-day deadline to companies to remove the devises which charge exclusively in foreign currency, mostly dollars, 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. ============= G R E N A D A ============= LIAT: PM Says Grenada Prepared to Offer Subsidy ----------------------------------------------- Trinidad Express reports that Trinidad and Tobago Prime Minister Dr. Keith Mitchell said Grenada is prepared to provide the cash- strapped regional airline, LIAT, with a financial subsidy for it to service the island, but was not prepared to provide funds for the airline's operations. "Grenada will have no difficulty providing some subsidy to LIAT but I am not taking money and give it and say spent it as you want . . . . That is an offer I made since Jean Holder was the chairman," he told a news conference, according to Trinidad Express. "If the issue is the monopoly, we have to do something about it. If the issue is about imposing taxes on the ticket then we have to do something about it. Right now we are charging ourselves outside of the market," the report quoted Mr. Holder as saying. LIAT announced that it would be reducing the number of flights to Grenada but Mr. Mitchell told reporters that following talks between St. George's and the airline management, the cut has been reduced to just one flight, the report notes. The report relays that Mr. Mitchell said that Grenada has an open sky policy and that like St. Lucia, his government is holding talks with the Trinidad-based state-owned airline, Caribbean Airlines (CAL) and other airlines to service the island. "We cannot sit down and wait," Mr. Mitchell said while calling for the management of LIAT to adopt measures that will improve its operations, the report relays. Grenada offers marketing subsidy to a number of international airlines to guarantee they service the island, the report notes. St. Lucia's Prime Minister Allen Chastanet told a news conference having CAL as the national carrier may be the best option for the island given the many issues facing air transport in the region, the report discloses. The former tourism minister, a harsh critic of LIAT reiterated earlier statements that the airline whose major shareholders are the governments of Antigua, Barbuda, Barbados and St Vincent and the Grenadines cannot solve all of the transportation needs of the region, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on May 8, 2015, the Daily Observer reports that LIAT, operating as Leeward Islands Air Transport, is attempting to lose excess baggage as part of measures to make the carrier "a smaller airline in 2015." In a document, signed by Director of Human Resources Ilean Ramsey, eligible employees were asked to opt to apply for voluntary separation or early retirement packages to avoid being made redundant, according to The Daily Observer. TCRLA reported on Dec. 2, 2014, citing Caribbean360.com, that chairman of the shareholder governments of the financially troubled regional airline LIAT, Dr. Ralph Gonsalves said while he is unaware of the details regarding any possible retrenchment of employees, the airline needs to deal with its high cost of operations. The TCR-LA on March 10, 2014, citing Caribbean360.com, reported that LIAT said it will take "decisive action" to deal with unprofitable routes as the Antigua-based airline seeks to make its operations financially viable. On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday, reported that there's much upheaval at the highest levels of LIAT -- the Board and the Executive. Following the sudden resignation of Chief Executive Officer Captain Ian Brunton, David Evans replaced Mr. Brunton as chief executive officer =========== P A N A M A =========== BANCO INTERNACIONAL: S&P Affirms 'BB-' ICR; Outlook Remains Neg. ---------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' long- and 'B' short-term issuer credit ratings on Banco Internacional de Costa Rica S.A. (BICSA). The outlook remains negative. Credit ratings reflect S&P's view of BICSA's adequate business position in the region's highly competitive trade finance sector, adequate capital and earnings assessment underpinned by S&P's projected RAC ratio of about 8.3% for the 18 months, adequate risk position stemming from low and very manageable nonperforming assets (NPAs) and credit losses, and average funding structure and adequate liquidity. The bank's stand-alone credit profile (SACP) remains at 'bb'. S&P's ratings also include its view of BICSA as a government- related entity (GRE) in the Republic of Costa Rica because the two largest public banks in the country are the BICSA's main shareholders. Nonetheless, S&P views the bank as having limited importance and limited link with the government. As a result, S&P bases its rating on BICSA solely on its SACP, rather than on expected extraordinary support from the government of Costa Rica. These assessments stem from these factors: -- BICSA's limited importance role to the government, because S&P believes the former acts as a profit-seeking bank in a very competitive environment, and its activities, in S&P's opinion, could be easily undertaken by a private entity; and -- Its limited link with the government given that the latter may not be willing to provide support, if needed, on a timely basis. Although BICSA's SACP is higher than the 'BB-' rating on Costa Rica, the rating on the bank reflects S&P's assessment of BICSA's potential resilience to the sovereign's hypothetical default. For an entity to be rated above the relevant sovereign's foreign currency rating, it should be able to pass a hypothetical sovereign foreign currency default stress test. S&P applied the stress test to the foreign currency rating on the sovereign to which BICSA has the largest exposure (around 45% of its loan exposure in Costa Rica as of June 2015) and whose foreign currency rating is lower than the potential credit rating on the bank. For a financial institution to pass the stress test, the bank needs: liquidity that would remain sufficient; equity that would be greater than 0; and available regulatory capital. In that sense, after applying the stress test assumptions--and according to S&P's assessment of BICSA's resilience to a hypothetical default of Costa Rica--the bank's liquidity would remain sufficient and its capital positive. However, the bank wouldn't meet the minimum regulatory capital requirements, which is 8%. Its regulatory capital would decrease to 7.35% under this scenario from 12.4% as of June 30, 2016. In this regard, given S&P's assessment of BICSA's low systemic importance, it don't expect the regulator to provide any regulatory forbearance that would allow BICSA to remain a going concern. As a result, the sovereign ratings continue to constrain S&P's foreign currency ratings on the bank. Therefore, S&P's ratings on BICSA will move in tandem with those on Costa Rica. ====================== P U E R T O R I C O ====================== FASHION STYLE: Unsecureds to Recoup 15% Under Plan -------------------------------------------------- Fashion Style, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico a disclosure statement as of Aug. 26, 2016, together with the Debtor's proposed plan of reorganization. Class 3 General Unsecured Creditors claims are estimated at almost $25,346.72. This class will be paid 15% of their claims in 60 equal monthly payments starting on the effective date of the Plan. This class is impaired. Upon confirmation of the Plan, the Debtor will have sufficient funds to make payments then due under the Plan. The funds will be obtained from the continuation of the business operation and the revenues received from its operation. On the confirmation date of the Plan, the operation of the named business and other estate assets will be and become the general responsibility of the reorganized debtor, which will thereafter have the responsibility for the management and control and administration. The Disclosure Statement is available at: http://bankrupt.com/misc/prb16-02239-33.pdf Fashion Style, Inc., is a small business dedicated to operate a retail store for the sale of women apparel and accessories. The two shareholders of the corporation are David Medina and Juan Steidel. Mr. Medina is the president of the corporation. The Debtor operates the store located in San Patricio Plaza under the name Nous Boutique. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-02239) on March 22, 2016. Wanda I. Luna Martinez, Esq., at Luna Law Offices serves as the Debtor's bankruptcy counsel. GLOBAL FITNESS SOLUTION: Court to Consider Plan Outline on Oct. 4 ----------------------------------------------------------------- Global Fitness Solution, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico an Amended Disclosure Statement describing the Debtor's Plan of Reorganization. Under the Plan, the general unsecured creditors are classified in Class 1 and will be paid $137.87 upon confirmation of Plan for 60 installments, without interest, for a total payout of $8,272 representing 5% of their allowed claims. The Debtor believes that the total claims of the general unsecured creditors is approximately $165,439. Total monthly payment proposed under the Plan is $6,206, including $6,068 through a 53 months term in the case of priority tax debts and $138 through a 60 months term in the case of general unsecured debt, beginning upon confirmation of plan. The Debtor will fund the payments under the Plan from its collection of membership fees on a monthly basis, as well as from the collection of pre-petition accounts receivable. The Court will convene to consider approval of the Disclosure Statement on October 4, 2016, at 10:00 a.m. Any objections to the adequacy of Disclosure Statement must be filed with the Court 14 days prior to the scheduled hearing. A full-text copy of the Amended Disclosure Statement dated September 9, 2016, is available at http://tinyurl.com/hr7ka7j About Global Fitness Solution Global Fitness Solution, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-01721) on March 3, 2016. The Petition was signed by Daivelyne Rivera Adorno, President. The Debtor is represented by Emily Darice Davila Rivera, Esq., at the Law Office of Emily D. Davila Rivera. The Debtor is a small business corporation organized under the laws of the Commonwealth of Puerto Rico in 2010, engaged in the operation of a gym located at Plaza Caparra Shopping Mall. The case is assigned to Judge Enrique S. Lamoutte Inclan. At the time of filing, the Debtor had $50,000 in estimated assets and $100,000 to $500,000 in estimated liabilities. JOSE MALDONADO MALAVE: Plan Disclosure Hearing Reset to Nov. 1 -------------------------------------------------------------- Judge Brian K. Tester of the U.S. Bankruptcy Court for the District of Puerto Rico reschedules the hearing to consider the Disclosure Statement filed by Jose G. Maldonado Malave and Zulma I. Recio Lopez from Sept. 13, 2016, to Nov. 16, 2016, at 9:00 a.m. Judge Tester has also given the Debtors a 30-day extension to file an amended Disclosure Statement. Amended Disclosure Statement will be due by Oct. 11, 2016. About Jose G. Maldonado Malave and Zulma I. Recio Lopez Jose G. Maldonado Malave and Zulma I. Recio Lopez filed a Chapter 11 petition (Bankr. D.P.R. Case No. 15-06762), on September 1, 2015. Judge Brian K. Tester presides over the case. SAN JUAN OIL: Nov. 18 Disclosure Statement Hearing Set ------------------------------------------------------ A hearing on approval of the disclosure statement explaining San Juan Oil Company, Inc.'s plan is scheduled for November 18, 2016 at 9:30 A.M., before Judge Edward A. Godoy of the U.S. Bankruptcy Court for the District of Puerto Rico. Objections to the form and content of the disclosure statement should be in writing and filed with the court and served upon parties in interest at their address of record not less than 14 days prior to the hearing. Objections not timely filed and served will be deemed waived. San Juan Oil Company Inc. filed a Chapter 11 petition (Bankr. D.P.R. Case No. 15-09593) on December 1, 2015, and is represented by Wigberto Lugo Mender, Esq., in Guaynabo, Puerto Rico. At the time of filing, the Debtor had estimated assets of $1 million to $10 million and estimated liabilities of $10 million to $50 million. The petition was signed by Nestor del Castillo- Hernandez, president. A list of the Debtor's 12 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb15- 09593.pdf ================= V E N E Z U E L A ================= VENEZUELA: Bus Drivers Bring Chaos to Caracas --------------------------------------------- BBC News reports that bus drivers in the Venezuelan capital, Caracas, paralyzed the city for eight hours on Sept. 21 by blocking the streets with their vehicles to protest against the country's economic crisis. Hundreds of drivers demanded more pay and protection from violent crime, according to BBC News. Many said they needed more money to maintain their buses and complained of a scarcity of spare parts, the report notes. Meanwhile, the electoral council all but ruled out a recall referendum this year against President Nicolas Maduro, the report relays. The decision is a setback for the opposition, which has been pressing for a vote to oust him this year, notes BBC News. Timing is Key The timing of the recall referendum is crucial as it will determine what happens next, the report relays. If it should go against the president before January 10, new elections will be held, which the opposition hopes to win, the report notes. But if it is held after that date and Mr. Maduro is recalled, his loyal vice-president will serve out the end of his term until 2019. The opposition has accused the National Electoral Council (CNE), which it says is stacked with supporters of Mr. Maduro, of doing everything it can to delay the referendum, the report discloses. The CNE announced that the referendum "could take place halfway through the first quarter of 2017", meaning that even if M. Maduro were to lose, his socialist party would stay in power, the report notes. It also stipulated that the opposition would have to collect the signatures of 20% of voters in each and every state of Venezuela - - rather than just meeting that threshold nationwide -- in order for the referendum to go ahead, the report relays. The signatures will have to be collected within three days from 26 to 28 October, the CNE said, the report notes. It also said that only 5,392 fingerprinting machines would be provided for voters' identities to be verified. The opposition had requested almost 20,000, BBC News discloses. The MUD opposition coalition called an emergency meeting to define its new strategy in light of the CNE's announcement, the report relays. Its spokesman, Jesus Torrealba, remained defiant. "This is nothing but an admission from the government that it has nothing to offer the Venezuelan people at the polls," the report quoted Mr. Torrealb as saying. He said millions of Venezuelans would mobilize to drive Mr. Maduro from office. A spokesman for the bus drivers said they would continue their protest if the government did not respond to their complaints, the report relays. Analysts say their protest is a particular embarrassment for President Maduro, not just because it paralyzed parts of the capital for eight hours, but also because Mr. Maduro was himself a bus driver once, the report adds. As reported in the Troubled Company Reporter-Latin America on July 5, 2016, Fitch Ratings affirmed Venezuela's Long-Term Foreign-and Local-Currency Issuer Default Ratings (LT FC/LC IDR) at 'CCC'. Fitch has also affirmed the sovereign's Short-Term Foreign Currency (ST FC) IDR at 'C' and country ceiling at 'CCC'. *********** 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 * * *