/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/161026.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, October 26, 2016, Vol. 17, No. 212 Headlines B R A Z I L BRAZIL: Pres Urges Congress to Pass Bill to Boost Oil Industry COSAN LTD: S&P Affirms 'BB' CCR, Outlook Remains Negative C A Y M A N I S L A N D S FUYU (CAYMAN): Members' Final Meeting Set for Nov. 2 GSJ LTD: Shareholders' Final Meeting Set for Nov. 14 INDONESIA GREEN: Members' Final Meeting Set for Nov. 30 INTERTANK (OVERSEAS): Shareholders' Final Meeting Set for Nov. 10 MAINSTREET HEALTH: Shareholders' Final Meeting Set for Nov. 1 PANION & BF: Shareholders' Final Meeting Set for Nov. 3 SAKA CAPITAL: Shareholders' Final Meeting Set for Nov. 15 SAKA CAPITAL FOCUS: Shareholders' Final Meeting Set for Nov. 15 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Power Firm Hail Push to Halt Fuel Trafficking P U E R T O R I C O AEROPOSTALE INC: Taps Development Specialist to Provide CRO CARIBBEAN CREAMERY: Disclosures Okayed, Plan Hearing on Nov. 15 DESARROLLADORA LCP: Dec. 14 Plan Confirmation Hearing Set FUNDACION HISPANOAMERICANA: Hires Lozada Law as Attorney GAMALIER GONZALEZ: Plan Confirmation Hearing Set for Nov. 16 MOTEL TROPICAL: Hires Charneco as Accountant PUERTO RICO: Oversight Board Wants Lawsuits to Remain Frozen T R I N I D A D & T O B A G O PETROTRIN: Beset With Workers' Strike Action - - - - - =========== B R A Z I L =========== BRAZIL: Pres Urges Congress to Pass Bill to Boost Oil Industry -------------------------------------------------------------- EFE News reports that President Michel Temer urged Congress to approve a bill that would ease oil industry regulation and strip state-controlled oil giant Petrobras of some of its privileges in Brazil's most promising oil fields. The proposed regulatory framework would "create new jobs" and "provide a new boost to investment in the sector," Mr. Temer said in an address at the opening of the Rio Oil and Gas conference, according to EFE News. The changes in oil regulations that are being demanded by the domestic industry and foreign investors have been approved by the Senate, but the lower house of Congress has only given partial approval, the report notes. The report relays that lawmakers in the lower house are expected to vote on four amendments to the bill, the last step before it lands on Temer's desk for his signature, making it a law. The new regulations would end Petrobras's right to be the sole operator for exploration and production projects in the pre-salt reserves, which are off southeastern Brazil and considered one of the largest oil finds in recent decades, the report relays. The bill, however, allows Petrobras to decide whether or not to serve as operator of a field and keeps in place the production- sharing system, the report says. Petrobras Chief Executive Officer Pedro Parente, meanwhile, said the energy giant was in a "recovery phase," thanks to the restructuring plan implemented in response to the plunge in oil prices and a $353 million settlement with investment funds that took legal action over the corruption scandal at the company, the report relays. "The financial and administrative problems are being overcome little by little," Mr. Parente said at the conference, acknowledging that 'the most difficult phase' in implementing the restructuring plan 'starts now' with the launch of new projects, the report relays. Petrobras still faces 23 other lawsuits in federal court in New York over the corruption scandal, executives said, the report notes. The oil company's business plan, which was unveiled last month, calls for cutting investment by 25 percent and selling $19.5 billion in assets to shore up the balance sheet in the wake of the drop in crude prices and the corruption scandal, the report adds. As reported in the Troubled Company Reporter-Latin America on March 29, 2016, severe contraction that was preceded by several years of below-trend growth has impaired Brazil's (Ba2, negative) underlying economic strength, despite the country's large and diversified economy, says Moody's Investors Service. The country's credit rating is also coming under pressure from the government's high level of mandatory spending. COSAN LTD: S&P Affirms 'BB' CCR, Outlook Remains Negative --------------------------------------------------------- S&P Global Ratings affirmed its 'BB' corporate credit ratings on Cosan Ltd. (CZZ), Cosan S.A. Industria e Comercio (Cosan S.A.), and Cosan Lubrificantes e Especialidades S.A. The outlook on all companies remains negative. At the same time, S&P affirmed the issue-level rating on the unsecured notes that Cosan S.A. guarantees with a recovery rating of '3', which reflects S&P's expectations of meaningful recovery (50%-70%; the higher band of the range) in the event of payment default. S&P's ratings on CZZ reflect its solid business position and the resilient cash flow generation of its main subsidiaries, which allows for the maintenance of an adequate liquidity even amid the company's heavy investment cycle. Despite the strong and predictable cash flow at Cosan S.A., its logistics business -- Rumo -- still has a heavy capital structure and a somewhat short- term debt amortization profile, whose improvement would depend on the completion of an aggressive investment plan (around R$8.5 billion for the next five years) that should boost the company's operating efficiency and EBITDA margin to 50% by 2020, from 45% currently. After the regulatory approval of Radar's sale, Cosan S.A.'s credit quality will rely more on that of its gas distributor, Comgas, given that the latter's cash flows should represent around 55% of the company's total. (The second largest EBITDA contributor should be Raizen through its dividend flow). The state of Sao Paulo's regulatory framework, in which Comgas operates, guarantees recovery of all non-manageable costs incurred and provides the tariff adjustment mechanism. These factors, along with Comgas' operating efficiency, provide stability to its profitability. Raizen's global leading position on sugar and ethanol production, combined with favorable fundamentals for both industries, supports Cosan S.A.'s healthy credit quality, given the higher expected dividends for the upcoming years. Although S&P understands that Cosan S.A. has a less leveraged financial profile than CZZ's, its ratings mirror those on the latter. CZZ fully controls Cosan S.A., which generates about 50% of CZZ's EBITDA. S&P deems Cosan S.A. as highly unlikely to be sold, with integral links to the Cosan group's reputation and name. As a result, the ratings on Cosan S.A. are also capped at CZZ's level. S&P bases its financial analysis mostly on CZZ's and Cosan S.A.'s consolidated figures and on Raizen's dividends to the group. S&P adjusts the Cosan group's debt figures to include the preferred shares that Cosan Investimentos e Participacoes S.A. (Cosan S.A.'s subsidiary) issued in June 2014. Although S&P considers the equity-like characteristics of this issuance in our analysis, the preferred shareholders have a put option against Cosan S.A., which they could exercise until April 30, 2021. This option would require Cosan S.A. to pay the R$2 billion in principal linked to Certificado de Deposito Interbancario. Therefore, S&P views this instrument as more debt-like, than equity-like. Under S&P's base-case scenario, it expects CZZ to deleverage during the next two years. Despite Cosan Logistica's, the group's logistics business, heavy investment plan, S&P views the recently completed R$2.6 billion capital increase, R$2.9 billion short-term debt refinancing, and advancements on the negotiations of the R$3.5 billion financing from the Brazilian Development Bank (BNDES) as indicators of future capital structure improvements, paving the way for the company's growth stemming from the R$4.6 billion expansion capex during 2017-2019. ========================== C A Y M A N I S L A N D S ========================== FUYU (CAYMAN): Members' Final Meeting Set for Nov. 2 ---------------------------------------------------- The members of Fuyu (Cayman) Venture Capital Fund will hold their final meeting on Nov. 2, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. Yung Huang Chou is the company's liquidator. GSJ LTD: Shareholders' Final Meeting Set for Nov. 14 ---------------------------------------------------- The shareholders of GSJ Ltd. will hold their final meeting on Nov. 14, 2016, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Maricorp Services Ltd. c/o Steven J. Barrie P.O. Box 2075 Grand Cayman KY1-1105 Cayman Islands Telephone: (345) 949-9710 INDONESIA GREEN: Members' Final Meeting Set for Nov. 30 ------------------------------------------------------- The members of Indonesia Green Fund (SPC) Ltd. will hold their final meeting on Nov. 30, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Desmond Campbell Stuart Brankin Circumference FS (Cayman) Ltd. P.O. Box 32322 Grand Cayman KY1-1209 Cayman Islands Telephone: (345) 814 0711 INTERTANK (OVERSEAS): Shareholders' Final Meeting Set for Nov. 10 ----------------------------------------------------------------- The shareholders of Intertank (Overseas) Ltd will hold their final meeting on Nov. 10, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Carlos Oswaldo Miranda c/o 200 Biscayne Blvd. Way Apt. 43d, 33131 Miami USA Telephone: +1 305 215 2131 MAINSTREET HEALTH: Shareholders' Final Meeting Set for Nov. 1 ------------------------------------------------------------- The shareholders of Mainstreet Health Holdings Inc. will hold their final meeting on Nov. 1, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Scott Higgs 14390 Clay Terrace Blvd, Suite 205 Carmel, IN 46032 USA PANION & BF: Shareholders' Final Meeting Set for Nov. 3 ------------------------------------------------------- The shareholders of Panion & BF Biotech Inc. will hold their final meeting on Nov. 3, 2016, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Chung-Ming Chiang No. 4, Lane 58, Jiankang Road, 3rd Floor Songshan District, Taipei City 105 Taiwan (R.O.C.) Telephone: 8862 26558218 SAKA CAPITAL: Shareholders' Final Meeting Set for Nov. 15 --------------------------------------------------------- The shareholders of Saka Capital Liquid Credit Master Fund will hold their final meeting on Nov. 15, 2016, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kenneth Stewart c/o Apex Fund Services (Cayman) Ltd. P.O. Box 10085 161a Artillery Court, Shedden Road Grand Cayman KY1-1001 Cayman Islands Telephone: (345) 747 2739 e-mail: ken@apexfunds.ky SAKA CAPITAL FOCUS: Shareholders' Final Meeting Set for Nov. 15 --------------------------------------------------------------- The shareholders of The Saka Capital Focus Fund will hold their final meeting on Nov. 15, 2016, at 10:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kenneth Stewart c/o Apex Fund Services (Cayman) Ltd. P.O. Box 10085 161a Artillery Court, Shedden Road Grand Cayman KY1-1001 Cayman Islands Telephone: (345)747-2739 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Power Firm Hail Push to Halt Fuel Trafficking ----------------------------------------------------------------- Dominican Today reports that Dominican Republic' power companies association (ADIE) said it agrees with the Government's measures against the trafficking of fuels and for transparent operations within the national fuel market. ADIE Executive Vice President Milton Morrison said the fuel used by association member power companies is strictly intended to generate electricity, according to Dominican Today. "To produce energy, we use natural gas and coal, which are not traded in the local market, and fuel oil # 6 or bunker C, which are not used in vehicles or other activity other than generating electricity," the report quoted Mr. Morrison as saying. Mr. Morrison said the tax exempt-fuel for generation is a Government measure to prevent the transfer of costs to customers, the report notes. "This decision corresponds only to the government," he added. Mr. Morrison also noted that energy industries don't benefit from the ITBIS tax breaks, the report relays. "The electricity generating companies pay pay ITBIS when buying goods and services, but isn't transferred," 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. ====================== P U E R T O R I C O ====================== AEROPOSTALE INC: Taps Development Specialist to Provide CRO ----------------------------------------------------------- Aeropostale Inc. and its debtor-affiliates seek authorization from the U.S. Bankruptcy Court for the Southern District of New York to employ Development Specialists, Inc. and designate William A. Brandt, Jr., as chief restructuring officer, nunc pro tunc to September 19, 2016. The Debtors require Mr. Brandt and Development Specialists to: (a) assist the Debtors with the transition under the Court- approved agreements between the Debtors and the members of the consortium that purchased substantially all of the Debtors' business assets, including management of the Debtors' rights under and compliance with the applicable purchase agreement, agency agreement and transition services agreements; (b) implement the post-closing, pre-confirmation wind-down of the estates, including reconciliation and resolution of claims and collection of estate assets excluded from the Court-approved purchase; (c) monitor and otherwise interface with the agent in connection with the store closing sales being conducted by Hilco Merchant Services and Gordon Bros; (d) oversee the budget process in connection with the Debtors' use of cash collateral and payment of estate liabilities; (e) assist in the further development and implementation of an amended liquidating chapter 11 plan; and (f) assist with such other matters as may be requested by the Board, the Debtors or the Debtors' outside counsel that fall within Development Specialists' expertise and that are mutually agreeable. Development Specialists will be paid at these hourly rates: Fred C. Caruso $660 Patrick J. O'Malley $595 Joseph J. Luzinski $590 Senior Managing Directors $575-$590 Directors/Managing Directors $320-$460 Associates/Senior Associates $190-$290 Pursuant to the terms of the Engagement Letter, the Debtors have agreed to compensate Development Specialists at a fixed rate of $100,000 per month, payable in advance, for the services of the CRO. Development Specialists will also be reimbursed for reasonable out-of-pocket expenses incurred. William A. Brandt, Jr., president and CEO of Development Specialists, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Development Specialists can be contacted at: William A. Brandt, Jr. DEVELOPMENT SPECIALISTS, INC. 110 E. 42nd St., Ste. 1818 New York, NY 10017 Tel: (312) 263-4141 E-mail: bbrandt@dsi.biz 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, 2016, 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. CARIBBEAN CREAMERY: Disclosures Okayed, Plan Hearing on Nov. 15 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico will consider approval of the Chapter 11 plan of Caribbean Creamery Inc. at a hearing on November 15. The court will also consider at the hearing the final approval of the company's disclosure statement, which it conditionally approved on October 13. The deadline for creditors to cast their votes and file their objections is three days prior to the hearing. The Debtor's Plan will be funded by and through (a) the Debtor's cash reserves as of the effective date of the Plan and (b) the future cash flows generated by the Debtor's business. Holders of Class 3 General Unsecured Claims will be satisfied via monthly payments starting at the effective date of the Plan. Total distribution on Class 3 Claims is estimated at $38,700, which is a 5.00% distribution on these claims. Holders of Class 2 Allowed Priority Claims filed by Governmental Entities will receive a 100% distribution on their claims, plus interest based on an interest rate of 4.00%. Holders of Class 1 BDE Secured Claims will receive the amount of $70,000, which will be paid via monthly installments of $717 for a term of 120 months. A full-text copy of the Disclosure Statement dated October 7, 2016, is available at http://bankrupt.com/misc/prb16-00367-68.pdf About Caribbean Creamery Caribbean Creamery Inc. filed a Chapter 11 petition (Bankr. D.P.R. Case No. 16-00367) on January 22, 2016, and is represented by Jose M. Prieto Carballo, Esq., at JPC Law Office. The case is assigned to Judge Enrique S. Lamoutte Inclan. DESARROLLADORA LCP: Dec. 14 Plan Confirmation Hearing Set --------------------------------------------------------- Judge Brian K. Tester of the U.S. Bankruptcy Court for the District of Puerto Rico approved the amended disclosure statement explaining Desarrolladora LCP, Corp.'s Chapter 11 plan, and will convene a hearing to consider confirmation of the Debtor's Plan on December 14, 2016, at 9:00 A.M. Objections to confirmation of the Plan must be filed on or before seven days prior to the Confirmation Hearing Date. At the confirmation hearing, the Court will conclude the estimated date for "substantial consummation" of the Plan as defined in Section 1101(2) of the Bankruptcy Code. Class 3 General Unsecured Claims estimated at $1,723,373.30 are impaired. Holders of these claims in excess of $20,000, excluding those from the equity holder and the Debtor's affiliates and the claim from Oriental Bank, will be paid in full satisfaction of their claims 10% thereof through 60 equal consecutive monthly installments of $1,940.14, commencing on the Effective Date of the Plan and continuing on the 30th day of the subsequent 59 months. The Holders of allowed General Unsecured Claims of $20,000 or less, will receive in full satisfaction of their claims 10% thereof, on the Effective Date of the Plan. Oriental Bank's proof of claim number 20, resulting from the Debtor's guarantee of a personal loan by its shareholder, will continue to be paid by that Shareholder, without any payments under the Plan. Claims will be paid with available funds arising from the Debtor's operations, available cash balance as of the Effective Date of the Plan, the collections of the Debtor's accounts receivable, and the Debtor's continued operations. The Amended Disclosure Statement is available at: http://bankrupt.com/misc/prb15-10349-109.pdf About Desarrolladora LCP Headquartered in San Juan, Puerto Rico, Desarrolladora LCP, Corp., is a corporation organized under the laws of the Commonwealth of Puerto Rico in August 2004. Since that date, and up to Dec. 31, 2007, the Debtor was in its development stage, primarily engaged in obtaining financing, constructing a building at Goyco Street, corners of Munoz Rivera Avenue and Baldorioty Street, Caguas, Puerto Rico, marketing and entering into lease agreements for office spaces thereat, and in other administrative functions. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 15-10349) on Dec. 30, 2015, listing $4.55 million in total assets and $3.79 million in total liabilities. The petition was signed by Manuel Morales Lopez, president. Charles Alfred Cuprill-Hernandez, Esq., at Charles A Cuprill, PSC Law Office serves as the Debtor's bankruptcy counsel. FUNDACION HISPANOAMERICANA: Hires Lozada Law as Attorney -------------------------------------------------------- Fundacion HispanoAmericana De Autismo Inc. seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Lozada Law & Associates, LLC as attorney to the Debtor. Fundacion HispanoAmericana requires Lozada Law to represent the Debtor in the bankruptcy proceedings. Lozada Law will be paid at these hourly rates: Maria Soledad Lozada $200 Associates $150 Paralegal $75 Lozada Law will be paid a retainer in the amount of $2,000. Lozada Law will also be reimbursed for reasonable out-of-pocket expenses incurred. Maria Soledad Lozada, member of Lozada Law & Associates, LLC, 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 estates. Lozada Law can be reached at: Maria Soledad Lozada, Esq. LOZADA LAW & ASSOCIATES, LLC PO Box 9023888 San Juan, PR 00902-3888 Tel: (787) 533-1400 Email: msl@lozadalaw.com About Fundacion HispanoAmericana Fundacion Hispanoamericana De Autismo Inc., based in Cabo Rojo, PR, filed a Chapter 11 petition (Bankr. D.P.R. Case No. 16-07574) on September 22, 2016. Maria Soledad Lozada, Esq., at Lozada Law & Associates, LLC, as bankruptcy counsel. In its petition, the Debtor estimated $500,000 to $1 million in assets and $1 million to $10 million in liabilities. The petition was signed by Angel Lopez Nunci, president. No official committee of unsecured creditors has been appointed in the case. GAMALIER GONZALEZ: Plan Confirmation Hearing Set for Nov. 16 ------------------------------------------------------------ U.S. Bankruptcy Judge Brian K. Tester entered an order conditionally approving the disclosure statement explaining the Chapter 11 Plan of debtor Gamalier Gonzalez Trucking Inc. The Court will hold a hearing to consider final approval of the Disclosure Statement and the confirmation of the Plan, and of objections on Nov. 16, 2016 at 9:00 a.m. at the U.S. Bankruptcy Court, U.S. Post Office and Courthouse Building, 300 Recinto Sur, Courtroom No. 1, Second Floor, San Juan, Puerto Rico. The debtor and parties-in-interest may now solicit acceptances or rejections of the debtor's Plan of Reorganization pursuant to 11 USC Section 1125. Plan votes are due on or before 10 days prior to the date of the hearing on confirmation of the Plan. Any objection to the final approval of the Disclosure Statement and/or the confirmation of the Plan must be filed on or before 10 days prior to the date of the hearing on confirmation of the Plan. At the confirmation hearing the Court will conclude the estimated date for "substantial consummation" of the Plan as defined in 11 USC 1101(2). As reported by the Troubled Company Reporter, Gamalier Gonzalez Trucking's Plan provides that Class 5 All Other General Unsecured Claims will consist of the general unsecured claims listed in the schedules and those who filed proof of claims. Once the Oct. 11, 2016 bar date for general unsecured creditors has elapsed if any additional claims are filed, and including accordingly. As of Oct. 3, 2016, there are four general unsecured creditors who filed its respective proof of claimholders: (1) "Centro de Recaudaciones de Ingresos Municipales" (claim 2) with $2,448.92; (2) Banco Popular de Puerto Rico (claim 3) with 836.39; (3) Puerto Rico Treasury Department (Hacienda) (claim 4) with 15,719.66; and (4) Internal Revenue Service (IRS) with $3,398.28. The entire class will receive the amount calculated as liquidation value under a Hypothetical Chapter 7 liquidation analysis for a total amount of $22,026.05, plus 2.0% interest during 60 months counting from the Effective Date. It means that the entire Class 4 will receive a monthly payment in the amount of $386.07 during 60 months counting from the Effective Date. The Debtor will distribute this monthly payment at pro rata of each claimholders claims. Funding the plan will be from the collection of any account receivable and services provided by the Debtor and any other business that Debtor wild be engaged during the life of the Plan. The Disclosure Statement is available at: http://bankrupt.com/misc/prb16-04601-54.pdf About Gamalier Gonzalez Gamalier Gonzalez Trucking Inc. is a corporation created to Operate two business simultaneously: (1) to transport and goods delivery in "dry load" trucks, and (2) to provide heavy equiment services like leveling plots and ground movements. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-04601) on June 8, 2016. Jaime Rodriguez-Perez, Esq., at Jaime Rodriguez Law Office, PSC, serves as the Debtor's bankruptcy counsel. MOTEL TROPICAL: Hires Charneco as Accountant -------------------------------------------- Motel Tropical Inc., seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Juan A. Feliciano Charneco as its accountant. Motel Tropical requires Charneco to analyze and prepare the financial documentation required in a Chapter 11 proceeding. Charneco will be paid at these hourly rates: Partners $90 Manager $60 Staff Accountants $40 Secretarial Services $25 Charneco will also be reimbursed for reasonable out-of-pocket expenses incurred. Juan A. Feliciano Charneco, CPA, 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 estates. Charneco can be reached at: Juan A. Feliciano Charneco 151 Miguel Salas Arecibo, PR 00612 About Motel Tropical Motel Tropical Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-00966) on February 11, 2016, disclosing under $1 million in both assets and liabilities. The Debtor is represented by Isabel M. Fullana, Esq., at Garcia-Arregui & Fullanan PSC. The Debtor manages a motel business located at Carr 2.KM 110.7 Ave. Militar, Isabel Puerto Rico. The property on which the Debtor operates is leased to Manuel Gonzalez Valeting. No official committee of unsecured creditors has been appointed in the case. PUERTO RICO: Oversight Board Wants Lawsuits to Remain Frozen ------------------------------------------------------------ Nick Brown at Reuters reports that Puerto Rico's financial oversight board said litigation brought by creditors against the U.S. territory should remain on pause while the island works to resolve $70 billion of debt its government has said it cannot pay. In a brief filed in federal court in San Juan, Puerto Rico, the seven-member board said the Puerto Rican rescue law known as PROMESA requires the lawsuits to stay frozen, according to Reuters. This would allow the board to fulfill its mandate of overseeing the island's fiscal turnaround plan and facilitating debt restructuring talks with creditors, it said, the report notes. With residents emigrating to the U.S. mainland in droves and nearly half of those left on the island living in poverty, Governor Alejandro Garcia Padilla has demanded sharp cuts in payments to bondholders, calling it necessary to afford government services, the report relays. The report discloses that PROMESA, signed by President Barack Obama on June 30 after earning bipartisan support in Congress, called for creditor lawsuits against Puerto Rico to be put on hold, or "stayed," while the federally appointed oversight board gets up to speed on the fiscal situation. But creditors have filed at least a dozen lawsuits both before and since the law's passage, and in several cases have claimed the stay does not apply to them, the report says. The lawsuits generally allege Puerto Rico violated the U.S. Constitution by imposing a debt moratorium this year, allowing it to forgo certain payments and redirect revenues that had been earmarked for debt to cover other expenses instead, the report relays. The creditors claim to be exempt from the stay because they are not seeking an actual payment of debt, just a declaration that the moratorium was unlawful, the report discloses. Judge Francisco Besosa's decision on the stay, expected in days or weeks, could be crucial. Lifting the stay could allow the merits of Puerto Rico's financial decisions to be hashed out in messy, expensive court proceedings -- exactly the scenario PROMESA was designed to avoid, the report notes. The oversight board, appointed in August, asked Besosa for permission to intervene in the cases, the report relays. In an attachment to that request, the board laid out its opposition to lifting the stay, saying "ongoing litigation is a major distraction that interferes with the (board's) congressional mandate," the report says. Forcing Puerto Rico to respond to several lawsuits "is a significant expense . . . and a burdensome distraction" to officials "whose time would be better spent working with the oversight board," the report adds. * * * The Troubled Company Reporter-Latin America reported on June 15, 2016, that the U.S. Supreme Court struck down a Puerto Rico law that would have let its public utilities restructure their debt over the objection of creditors leaving it to Congress to help the island resolve its fiscal crisis. Siding with bondholders challenging the law, the court ruled 5-2 that the measure was barred under federal bankruptcy law. Justice Clarence Thomas, writing for the majority in the 5-to-2 decision, said the law was at odds with the federal bankruptcy code, which bars states and lower units of government from enacting their own versions of bankruptcy law. Puerto Rico is struggling with $72 billion in debt and has argued that it needs to restructure at least some of it under Chapter 9, the part of the bankruptcy code for insolvent local governments. But Puerto Rico is not permitted to do so, because Chapter 9 specifically excludes it. The federal law, Justice Thomas wrote, "bars Puerto Rico from enacting its own municipal bankruptcy scheme to restructure the debt of its insolvent public utilities." Chief Justice John G. Roberts Jr. and Justices Anthony M. Kennedy, Stephen G. Breyer and Elena Kagan joined him. Consequently, Puerto Rico opted to default on $911 million in constitutionally guaranteed debt, or roughly half of the $2 billion in principal and interest that came due July 1, EFE News reported. The reported further noted that Puerto Rico enacted a debt moratorium due to liquidity restraints -- a move that coincided with a new U.S. law signed by President Obama that installs a financial control board to restructure the island's debt and provides a retroactive stay on lawsuits by bondholders. On July 11, 2016, the TCR-LA reported that S&P Global Ratings has downgraded the Commonwealth of Puerto Rico's general obligation secured debt to 'D' (default) from 'CC' following the commonwealth's default. On July 7, 2016, Fitch Ratings has downgraded the Commonwealth of Puerto Rico's Long-Term Issuer Default Rating (IDR) to 'RD' from 'C' and general obligation (GO) bond rating to 'D' from 'C' following the payment default on certain GO bonds on July 1, 2016. Both ratings are removed from Rating Watch. Ratings on securities that have not defaulted will remain at 'C' until the point of default. The ratings on non-defaulted bonds remain on Rating Watch Negative. =============================== T R I N I D A D & T O B A G O =============================== PETROTRIN: Beset With Workers' Strike Action -------------------------------------------- Trinidad Express reports that State-owned Petroleum Company of Trinidad and Tobago (Petrotrin) is moving to reduce the negative impact of the strike action being undertaken by employees of Inland and Offshore Contractors Limited (IOCL), a company contracted to provide transport to Trinmar operations. This is according to Energy Minister Nicole Olivierre. Ms. Olivierre said the strike would have a significant impact on Petrotrin's production, according to Trinidad Express. "But Petrotrin is doing all it can to mitigate the negative impact of the strike. I can't quantify the value at this time," Ms. Olivierre said. IOCL workers reported for duty at a tent outside the company's office at Otahietie, South Oropouche. Ronnie Williams, an employee, said, "The protest is strong and in full force. We are here and will remain here until we get some positive word from the union," the report relays. The report notes that IOCL was served with a strike notice by the Oilfields Workers' Trade Union (OWTU) following a breakdown in negotiations. But the company has said it could not afford to pay workers the proposed increase wage of 80 per cent for the period 2013 to 2015 given Petrotrin's "bleak financial position", saying that Petrotrin workers were already highly paid, the report relays. "At the end of the strike action, the dispute will be referred to the Industrial Court for determination," IOCL stated, the report notes. Petrotrin said the strike was causing serious disruptions to its operations. The trade union stated that for many years, IOCL workers have been working for one third the minimum rate of pay, and for just as many years they have been calling on the company to correct this gross error, the report discloses. "It is important to note that IOCL is contracted by Petrotrin to provide marine transport for offshore workers. Companies contracted by Petrotrin are supposed to pay their workers the same rate of pay as contained in the collective agreement between the OWTU and Petrotin," a release stated, the report relays. OWTU stated that IOCL had not fulfilled its obligation to pay their workers the correct rate of pay. "Even after long, protracted negotiations, the company still refuses to pay the correct rate of pay. The workers felt that they were left with no choice and decided to effect legal strike action. IOCL workers are being treated as second rate inferior workers and are being denied what they are supposed to be paid," the union stated, the report adds. About Petrotrin Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on July 23, 2015, Trinidad Express reports that state-owned Petroleum Company of Trinidad and Tobago (Petrotrin) multiplied its losses 11.2 times to reach US$168 million for the nine months ended June 30 compared to US$15 million loss for the same period last year, but its earnings before income tax, depreciation and amortisation (EBITDA) rose 132 per cent between March and June, preliminary financials show. TCRLA reported on Dec. 2, 2014, that Trinidad and Tobago Newsday said that in the face of falling global oil prices, which is starring to impact on Trinidad and Tobago's earnings from its petroleum resources, Petroleum Company of Trinidad and Tobago has rolled out a plan to remain viable and to survive in the harsh global oil industry. Petrotrin said in a media release that it is forging ahead with objective cost management decisions imperative to secure its viability, according to Trinidad and Tobago Newsday. The report said Petrotrin's operations have also been severely impacted due to unfavorable margins. The TCRLA reported on Jan. 21, 2014 that Trinidad Express, citing Energy Minister Kevin Ramnarine, said Petrotrin will make a loss for its 2013 financial year. According to Mr. Ramnarine, Petrotrin was scheduled to make the loss even before the series of oil spills affecting Trinidad's southwestern peninsula since December, reports Trinidad Express. *********** 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, Ivy B. Magdadaro, 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 * * *