/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170125.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, January 25, 2017, Vol. 18, No. 018 Headlines A R G E N T I N A ARGENTINA REPUBLIC: S&P Assigns 'B-' Rating on US$7BB Sr. Bonds FIDEICOMISO FINANCIERO: Moody's Withdraws Ratings on Certs. B R A Z I L ODEBRECHT SA: Peru Cancels Pipeline Contract SUL AMERICA: S&P Affirms 'BB' Rating; Outlook Remains Negative C A Y M A N I S L A N D S ADAM SMITH: Placed Under Voluntary Wind-Up ADAR LATAM: Placed Under Voluntary Wind-Up ALIZES INVESTMENTS: Placed Under Voluntary Wind-Up BANYAN FUND: Commences Liquidation Proceedings BRAX EQUITY: Placed Under Voluntary Wind-Up CHOL INTERNATIONAL: Placed Under Voluntary Wind-Up COGNIS CREDIT: Placed Under Voluntary Wind-Up COGNIS CREDIT MASTER: Placed Under Voluntary Wind-Up CONVERGENX LTD: Commences Liquidation Proceedings CRYSTAL MARINE: Placed Under Voluntary Wind-Up INDUS JAPAN: Placed Under Voluntary Wind-Up INDUS JAPAN MASTER: Placed Under Voluntary Wind-Up INTERCONTINENTAL COMPONENT: Placed Under Voluntary Wind-Up OZER INVEST: Commences Liquidation Proceedings PELICANCROSS HOLDINGS: Commences Liquidation Proceedings PRYSMA INVEST: Placed Under Voluntary Wind-Up REDSTREAM FUND: Placed Under Voluntary Wind-Up STARBOARD VALUE: Commences Liquidation Proceedings STEERSMEN II: Commences Liquidation Proceedings TREBLECLEF INVESTMENTS: Commences Liquidation Proceedings C H I L E CHILE: Raging Wildfires Force Leader to Skip Dominican Summit C O S T A R I C A GRUPO ICE: Fitch Cuts Issuer Default Ratings to 'BB' J A M A I C A JAMAICA: NIR Decline Expected W/Prepayment in Deposit Certs M E X I C O MEXICO: To Negotiate Bilateral Pacts With TPP Countries P U E R T O R I C O ESTEBAN BEAUTY: Unsecureds to Get Pro-rata Distribution of $2,000 ESTEBAN DISTRIBUTOR: Unsecureds to Get Pro-rata Distribution PUERTO RICO: Gov. Cites "Sharp Contrast" With Island's Overseer X X X X X X X X X LATAM: IMF Forecasts Economic Growth of Just 1.2% in 2017 - - - - - ================= A R G E N T I N A ================= ARGENTINA REPUBLIC: S&P Assigns 'B-' Rating on US$7BB Sr. Bonds --------------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue rating on the Republic of Argentina's senior unsecured bonds for a total of US$7.0 billion. From the issued amount, US$3.25 billion is due in 2022, and the remaining US$3.75 billion is due in 2027. The government will use proceeds from the issuance for general purposes, as well as to refinance existing debt. The long-term rating on Argentina remains 'B-', with a stable outlook. The rating on the bond is the same as the long-term foreign currency sovereign credit rating on Argentina. The ratings on Argentina reflect the ongoing challenges to address the country's main problems, including high inflation, a large fiscal deficit, and economic contraction, while the administration of President Mauricio Macri lacks a majority in either chamber of Congress. Moreover, midterm Congressional elections in October 2017 make it hard for the Macri Administration to get support from other political parties for its main policy initiatives. On the social side, issues including poverty, with 30% of the population under the poverty line; high inflation that peaked in 2016; layoffs at the beginning of the year; and economic contraction in 2016 are generating social discontent and demands. Still, the latest polls show that the government's popularity is still relatively high, and approval ratios remain at about 50%. As part of its plan, the government successfully resolved the holdout litigation in early May 2016, allowing the government to subsequently issue debt in the external markets. Argentina issued $22 billion in the external capital markets during 2016. Latest official reports show debt levels increased to $251 billion as of September 2016 from $241 billion as of December 2015. Around 55% is debt held by public-sector entities (mainly Anses, the social security agency; the central bank; and, to a lesser extent, government-owned Banco Nacion), reducing the market rollover risk. At the same time, over 70% of the debt is denominated in foreign currency, highlighting the vulnerability to exchange rate movements. S&P expects general government debt will continue to rise gradually due to both fiscal deficits and the impact of currency depreciation. S&P expects debt to have reached around 55% of GDP in 2016, up from 52.6% of GDP at year-end 2015. The debt trajectory over the next three years will depend on the government's capacity to steadily reduce fiscal deficits while maintaining access to global markets. RATINGS LIST Republic of Argentina Sovereign Credit Rating B-/Stable/B New Rating Republic of Argentina Senior Unsecured US$3.25 billion due 2022 B- US$3.75 billion due 2027 B- FIDEICOMISO FINANCIERO: Moody's Withdraws Ratings on Certs. ----------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo has withdrawn the ratings of the certificates listed below due to business reasons. LIST OF DEALS AND CERTIFICATES AFFECTED Issuer: Fideicomiso Financiero Pvcred Serie XV CP Certificate, Withdrawn (sf) due to business reasons; previously on May 11, 2016 Upgraded to Ba3 (sf) / Aaa.ar (sf) Issuer: Fideicomiso Financiero Pvcred Serie XVI CP Certificate, Withdrawn (sf) due to business reasons; previously on May 11, 2016 Upgraded to Ba3 (sf) / Aaa.ar (sf) Issuer: Fideicomiso Financiero Pvcred Serie XVII CP Certificate, Withdrawn (sf) due to business reasons; previously on May 11, 2016 Downgraded to Ca (sf) / Ca.ar (sf) Issuer: Fideicomiso Financiero Pvcred Serie XVIII CP Certificate, Withdrawn (sf) due to business reasons; previously on May 11, 2016 Downgraded to C.ar (sf) / C (sf) Issuer: Fideicomiso Financiero Pvcred Serie XIX CP Certificate, Withdrawn (sf) due to business reasons; previously on May 11, 2016 Downgraded to C (sf) / C.ar (sf) Issuer: Fideicomiso Financiero Pvcred Serie XX CP Certificate, Withdrawn (sf) due to business reasons; previously on Apr 24, 2014 Assigned Ca.ar (sf) / Ca (sf) Issuer: Fideicomiso Financiero Pvcred Serie XXI CP Certificate, Withdrawn (sf) due to business reasons; previously on May 11, 2016 Downgraded to C.ar (sf) / C (sf) =========== B R A Z I L =========== ODEBRECHT SA: Peru Cancels Pipeline Contract -------------------------------------------- Ryan Dube at The Wall Street Journal reports that Peru will terminate a contract with a consortium led by Odebrecht SA to build a $7 billion natural-gas pipeline, a government minister said, the latest blow to the Brazilian construction giant amid an expanding corruption scandal into how the company secured lucrative deals. Mines and Energy Minister Gonzalo Tamayo said the Southern Peruvian Gas Pipeline consortium, which is majority-owned by Odebrecht SA, failed to meet the deadline to secure financing and would be officially told that the contract will be rescinded, according to The Wall Street Journal. The report notes that Mr. Tamayo said the consortium would also be assessed a $262 million penalty for not completing the contract to build the 700-mile long pipeline to transport cheap natural gas from the Amazon to towns across the southern highlands and on to the Pacific. Odebrecht has a 55% stake in the project. Spain's Enagas has 25%, and Peru's Grana y Montero has 20%. "The project isn't going ahead with the current partners," Mr. Tamayo told radio broadcaster RPP Noticias, the report relays. "They had to obtain this financing from the international financial community as a sign of their capacity to bring this project forward," the report notes. The consortium said it wouldn't be able to meet the financing deadline and was preparing for the contract's termination, the report discloses. It remained unclear exactly who would finish the pipeline, but Mr. Tamayo said the government was studying options, including auctioning off the project to a new set of bidders, the report notes. In separate statements, Enagas and Grana y Montero said the contract stipulates that Peru use the funds from a new auction to compensate them for their investments. They said they expected to receive back within the next three years a significant portion of the investments they already made, the report relays. Odebrecht SA declined to comment. As a condition for loans, banks required Odebrecht SA to sell its stake in the project, for which about 10% of the construction has already been completed, the report notes. The company's efforts to do so fell apart when authorities refused to remove an anticorruption clause in the contract allowing the government to seize the project if it found wrongdoing, the report relays. The pipeline, one of Peru's biggest infrastructure projects, was awarded in 2014 under the administration of President Ollanta Humala, ther. Odebrecht's consortium was the only bidder on the project after another group was disqualified. Odebrecht, Latin America's biggest construction company, has faced a growing backlash since acknowledging last month to the U.S. Justice Department that it paid nearly $800 million in bribes, most of it in Latin America, to secure public works contracts, the report relays. Peru, Ecuador, and Panama have since banned the company from signing new public-works contracts, the report discloses. Colombian authorities said last week they would look to oust the firm from the country following the arrest of a former deputy transport minister, who has since pleaded guilty to charges of illicit enrichment for helping Odebrecht SA win a majority stake in a road project, the report notes. A former senator also arrested on bribery charges has denied the allegations, the report discloses. Colombia's attorney general's office says it is investigating about two dozen people for possible links to the corruption scandal, the report relays. In Peru, where Odebrecht SA has admitted to paying $29 million in bribes, prosecutors plan to question Mr. Humala and his predecessors, former Presidents Alan Garcia and Alejandro Toledo, over contracts the Brazilian firm won, the report says. All three men have denied wrongdoing, the report notes. A judge said Mr. Humala would need court approval before traveling abroad as a money-laundering probe tied to Odebrecht continues, the report discloses. Edwin Luyo, a member of the committee charged with awarding Odebrecht the concession for Lima's subway system in 2009, was arrested for allegedly taking bribes paid through accounts at a bank in the tiny European state of Andorra, the report says. Mr. Luyo has publicly said he would cooperate with the investigation, the report notes. Prosecutors have also issued an arrest warrant for a former deputy communications minister accused of receiving kickbacks for the subway project in exchange for helping Odebrecht SA, the report adds. As reporter in the Troubled Company Reporter-Latin America on Dec. 2, 2016, The Wall Street Journal said that Marcelo Odebrecht, the jailed former head of Brazilian construction giant Odebrecht SA, agreed to sign a plea-bargain agreement in connection with Brazil's largest corruption probe ever, according to a person close to the negotiations. The move could roil the nation's political class yet again. The testimony of the former industrialist, which is part of the deal, has the potential to implicate numerous politicians who allegedly took kickbacks from contractors as part of a years-long graft ring centered on Brazil's state-run oil company, Petroleo Brasileiro SA, known as Petrobras, according to The Wall Street Journal. SUL AMERICA: S&P Affirms 'BB' Rating; Outlook Remains Negative -------------------------------------------------------------- S&P Global Ratings affirmed its 'BB' global scale and 'brAA-' national scale ratings on Sul America Companhia Nacional de Seguros. S&P also affirmed its 'B+' and 'brBBB+' ratings on Sul America S.A. (SASA). The outlook remains negative. Ratings on Sul America reflect its strong brand recognition, business diversification, and operating performance that's in line with those of its peers. Nevertheless, its investment portfolio continues to be concentrated in speculative-grade securities, given its high exposure to Brazilian sovereign securities. As a multiline insurer, Sul America is exposed to the risks of health, property and casualty (P/C), and life insurance businesses. Therefore, Sul America's overall Insurance Industry and Country Risk Assessment (IICRA) score is based on the weighted average of S&P's P/C, life, and health IICRA scores, which are moderate, intermediate, and moderate risks, respectively. Given the higher share of health and P/C business lines in the company's business structure, its overall IICRA score is a moderate risk. ========================== C A Y M A N I S L A N D S ========================== ADAM SMITH: Placed Under Voluntary Wind-Up ------------------------------------------ At an extraordinary general meeting held on Dec. 5, 2016, the sole shareholder of Adam Smith Investments 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: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 ADAR LATAM: Placed Under Voluntary Wind-Up ------------------------------------------ The sole shareholder of Adar Latam High Income Fund Ltd., on Dec. 9, 2016, 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: Adar Capital Partners Ltd. c/o Paul Ebanks Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 ALIZES INVESTMENTS: Placed Under Voluntary Wind-Up -------------------------------------------------- At an extraordinary general meeting held on Dec. 5, 2016, the shareholders of Alizes Investments 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: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 BANYAN FUND: Commences Liquidation Proceedings ---------------------------------------------- The members of Banyan Fund, on Oct. 18, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: Ouyang Wensheng Suite 2403 199 Urumqi Road Shanghai People's Republic of China Telephone: + 18621698863 BRAX EQUITY: Placed Under Voluntary Wind-Up ------------------------------------------- The sole shareholder of Brax Equity Fund SPC, on Dec. 9, 2016, 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: First Management Ltd c/o Daniella Skotnicki Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 CHOL INTERNATIONAL: Placed Under Voluntary Wind-Up -------------------------------------------------- At an extraordinary general meeting held on Dec. 7, 2016, the sole shareholder of Chol International Inc. 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: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 COGNIS CREDIT: Placed Under Voluntary Wind-Up --------------------------------------------- The sole shareholder of Cognis Credit Opportunities Fund Ltd., on Dec. 9, 2016, 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 c/o Padraig Hoare Telephone: +1 (345) 815 1415 Facsimile: +1 (345) 945-6265 190 Elgin Avenue George Town Grand Cayman KY1-9007 Cayman Islands COGNIS CREDIT MASTER: Placed Under Voluntary Wind-Up ---------------------------------------------------- The sole shareholder of Cognis Credit Opportunities Master Fund Ltd., on Dec. 9, 2016, 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 c/o Padraig Hoare Telephone: +1 (345) 815 1415 Facsimile: +1 (345) 945-6265 190 Elgin Avenue George Town Grand Cayman KY1-9007 Cayman Islands CONVERGENX LTD: Commences Liquidation Proceedings ------------------------------------------------- The shareholders of Convergenx Ltd, on Dec. 8, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 9, 2017, will be included in the company's dividend distribution. The company's liquidator is: Mourant Ozannes c/o Erie Limited Corey Stokes 94 Solaris Avenue Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 814-9277 Facsimile: (345) 949-4647 CRYSTAL MARINE: Placed Under Voluntary Wind-Up ---------------------------------------------- The sole shareholder of Crystal Marine Two Ltd., on Nov. 30, 2016, resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 9, 2017, will be included in the company's dividend distribution. The company's liquidator is: William E. Craver III 2702 Ion Avenue, Box 754 Sullivan's Island, SC 29482 USA Telephone: (843) 577-7557 Facsimile: (843) 577-0811 INDUS JAPAN: Placed Under Voluntary Wind-Up ------------------------------------------- The sole shareholder of Indus Japan Market Neutral Fund, Ltd., on Dec. 9, 2016, 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 c/o Joanne Huckle Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 INDUS JAPAN MASTER: Placed Under Voluntary Wind-Up -------------------------------------------------- The sole shareholder of Indus Japan Market Neutral Master Fund, on Dec. 9, 2016, 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 c/o Joanne Huckle Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 INTERCONTINENTAL COMPONENT: Placed Under Voluntary Wind-Up ---------------------------------------------------------- At an extraordinary general meeting held on Dec. 7, 2016, the sole shareholder of Intercontinental Component Supply International (Cayman) 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: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 OZER INVEST: Commences Liquidation Proceedings ---------------------------------------------- The members of Ozer Invest Limited, on Dec. 7, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Enola Reid Telephone: +1 (345) 914-5413 136 Shedden Road, One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman Cayman Islands KY1-1106 PELICANCROSS HOLDINGS: Commences Liquidation Proceedings -------------------------------------------------------- The sole shareholder of Pelicancross Holdings Limited, on Dec. 8, 2016, 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: Dr. Rolf Schmid c/o Dorothee Langemann Limmatquai 94, Zurich Switzerland CH-8021 Telephone: 41 44 711 71 71 Facsimile: 41 44 711 71 11 PRYSMA INVEST: Placed Under Voluntary Wind-Up --------------------------------------------- The sole shareholder of Prysma Invest SPC, on Dec. 9, 2016, 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 c/o Daniella Skotnicki Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 REDSTREAM FUND: Placed Under Voluntary Wind-Up ---------------------------------------------- The shareholders of Redstream Fund Limited, on Dec. 5, 2016, 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 STARBOARD VALUE: Commences Liquidation Proceedings -------------------------------------------------- The sole shareholder of Starboard Value and Opportunity Overseas Fund II, Ltd, on Dec. 7, 2016, 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: Starboard Value LP Kenneth Marlin 777 Third Avenue, 18th Floor New York New York 10017 United States of America Telephone: +1 (212) 845 7906 e-mail: kmarlin@starboardvalue.com STEERSMEN II: Commences Liquidation Proceedings ----------------------------------------------- The shareholders of Steersmen II Ltd., on Nov.29, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 29, 2017, will be included in the company's dividend distribution. The company's liquidator is: Ho, Hsin-Hui 9th Floor., No.3, Aly. 30, Ln. 78 Sec. 2, Fuxing S. Rd., Da'an Dist. Taipei City 106, Taiwan (R.O.C.) Telephone: +886.2.8978.9200 #3997 Facsimile: +886.2.2767.8801 TREBLECLEF INVESTMENTS: Commences Liquidation Proceedings --------------------------------------------------------- The members of Trebleclef Investments Limited Company, on Dec. 7, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Enola Reid Telephone: +1 (345) 914-5413 136 Shedden Road, One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman Cayman Islands KY1-1106 ========= C H I L E ========= CHILE: Raging Wildfires Force Leader to Skip Dominican Summit ------------------------------------------------------------- Dominican Today reports that the Dominican Foreign Ministry on Monday said it regrets the absence of the Chilean president Michelle Bachelet, at the 5th CELAC Summit of Heads of State and Government and expressed its solidarity with Chile, where forest and wildfires have devastated several regions of the country. Ms. Bachelet announced her decision to cancel her attendance at the summit due to the fires during a Council of Ministers in the Chilean government headquarters at Palacio de la Moneda, according to Dominican Today. The Dominican Foreign Ministry tweeted its "solidarity with the brotherly Chilean people" and lamented the Chilean leader's absence at the conclave, to be held at the resort Bavaro, the report notes. The Chilean leader also canceled her planned working visit to Haiti after the summit, local media said, quoting sources, the report relays. In a hot spell of temperatures above 35 degrees in central Chile, the raging fires have charred more than 127,000 hectares of vegetation, crops, forests and houses in seven regions, the report notes. =================== C O S T A R I C A =================== GRUPO ICE: Fitch Cuts Issuer Default Ratings to 'BB' ---------------------------------------------------- Fitch Ratings has downgraded the Long-Term Foreign Currency and Local Currency Issuer Default Ratings for Instituto Costarricense de Electricidad y Subsidiarias (Grupo ICE) to 'BB' from 'BB+'. The rating action affects the ratings of its senior unsecured bonds due in 2021 and 2043, which have also been downgraded to 'BB' from 'BB+'. The Rating Outlook has been revised to Stable from Negative. KEY RATING DRIVERS These rating actions follow the downgrades of Costa Rica's Long- Term Foreign and Local Currency IDRs to 'BB' from 'BB+' and the revision of the Rating Outlooks to Stable from Negative. The sovereign rating revisions reflect the country's deteriorating debt dynamics driven by large fiscal deficits and continued institutional gridlock preventing progress on reforms to correct fiscal imbalances. Despite the estimated 0.6% of GDP improvement in 2016 (due largely to administrative measures), the fiscal deficit is expected to rise over the next two years as a result of a higher interest burden and spending rigidities. Grupo ICE's ratings are linked to the sovereign rating of Costa Rica due to government ownership and the government's implicit and explicit support. The company holds strategic importance for the government given the growing demand of electricity in the country and government's plans to increase renewable generation and to reduce exposure to fluctuations in fossil fuel prices. The ratings also reflect company's diversified portfolio of assets, adequate financial profile, aggressive capital expenditure program oriented to increase renewable generation capacity and maintaining a strong market share position in the telecommunications business. KEY ASSUMPTIONS -- The strong linkage between the sovereign rating of Costa Rica and ICE continues; -- Grupo ICE remains important to the government as a strategic asset for the country; -- Fuel variable-cost tariff revision and ordinary tariff adjustments are in place; -- The Reventazon asset and the associated debt will be incorporated in ICE's 2016 financial statements. -- The 2017 tariff review considers the debt service for Reventazon hydroelectric project; -- Grupo ICE will continue to support its subsidiaries in terms of its financial obligations, and as advisor on operational or technical issues, when is needed or required. RATING SENSITIVITIES Grupo ICE's ratings could be negatively affected by any combination of the following factors: sovereign downgrades; weakening of legal, operational and/or strategic ties with the government; or regulatory intervention that negatively affects the company's. Grupo ICE's ratings could be positively affected by an upgrade of Costa Rica's sovereign rating, or if the company is materially isolated from government interference. FULL LIST OF RATING ACTIONS Fitch has downgraded the following ratings Instituto Costarricense de Electricidad y Subsidiarias (Grupo ICE) -- Long-Term Foreign Currency IDR to 'BB' from from 'BB+'; -- Long-Term Local Currency IDR to 'BB' from from 'BB+'; -- Senior unsecured debt rating to 'BB' from from 'BB+'. The Rating Outlooks have been revised to Stable from Negative. ============= J A M A I C A ============= JAMAICA: NIR Decline Expected W/Prepayment in Deposit Certs ----------------------------------------------------------- RJR News reports that Jamaica's Net International Reserves is to decline with the Central Bank set to prepay US$256 million in certificates of deposit. A notice from the Bank of Jamaica said the pre-payment follows the call notice it issued last October in accordance with the terms of the instruments, according to RJR News. The Bank said it will continue regular monthly issues of US dollar certificates of deposit, the report notes. It is aiming to reduce the stock of outstanding US currency certificates of deposit to US$900 million by March 31, the report relays. It adds that despite the decline in the NIR the non-borrowed reserves target agreed under the precautionary Stand-By Arrangement with the IMF will be comfortably met, the report says. As reported in the Troubled Company Reporter-Latin America on Sept. 28, 2016, S&P Global Ratings affirmed its 'B' long-term and short-term foreign and local currency sovereign credit ratings on Jamaica. The outlook on the long-term sovereign credit ratings remains stable. In addition, S&P affirmed its transfer and convertibility assessment at 'B+'. =========== M E X I C O =========== MEXICO: To Negotiate Bilateral Pacts With TPP Countries ------------------------------------------------------- EFE News reports that Mexican President Enrique Pena Nieto announced that his government will negotiate new trade pacts with signatory nations of the Trans-Pacific Partnership, the ambitious treaty that the United States withdrew from on Jan. 23. "Given the difficulty of making the TPP a reality, Mexico will immediately initiate talks that will create new bilateral trade agreements with the treaty's participating countries," said Pena Nieto in a statement from the Los Pinos presidential residence, according to EFE News. Accompanied by a good portion of his Cabinet, as well as business and union representatives, the Mexican leader also backed improving relations with the Asia-Pacific region, given that five of Mexico's 10 main trade partners are located there, the report relays. "It's our priority to consolidate ourselves as a relevant partner (in the Pacific region) to intensify trade, investment and tourism flows," he said, the report discloses. US President Donald Trump fulfilled one of his campaign promises by signing an executive order to withdraw Washington from the TPP, which had been a key piece of predecessor Barack Obama's trade legacy, the report says. The treaty, negotiation of which took more than six years, was signed in early 2016 by Australia, Brunei, Canada, Chile, the United States, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam and is in the process of being ratified by the parliaments of the member nations so that it may enter into effect, the report notes. According to Mexican government figures, the trade bloc -- including the participation of the United States -- would represent 37 percent of the world GDP and 20 percent of global trade, the report adds. ====================== P U E R T O R I C O ====================== ESTEBAN BEAUTY: Unsecureds to Get Pro-rata Distribution of $2,000 ----------------------------------------------------------------- Esteban Beauty Distributor Corp. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a small business disclosure statement and plan of reorganization, dated Jan. 17, 2017. The administrative expenses are classified in Class 1 and shall be paid in full in cash as soon as practicable or agreed with the creditor no later than (a) the Effective Date or (b) the date any such claim becomes an allowed Administrative Claim. There are unsecured priority claims classified in Class 2. These unsecured priority claims shall be paid in full from Debtor's ongoing sales. The unsecured general claims classified are in Class 3. The amounts due under this class will be paid a pro-rata distribution of $2,000 from proceeds of the ongoing sales operations of the Debtor. The equity interest holders claim classified in Class 4. The amounts due under this class will be paid a portion pro-rata from proceeds of the ongoing sales operations of the Debtor. The Plan will be funded by Debtor's ongoing sales operations. Thus, it will have enough cash on hand on the effective date of the Plan to pay all the claims and expenses that are entitled to be paid on that date. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/prb16-03796-11-72.pdf About Esteban Beauty Esteban Beauty Distributor Corp. sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Puerto Rico (Case No. 16-03796) on May 11, 2016. ESTEBAN DISTRIBUTOR: Unsecureds to Get Pro-rata Distribution ------------------------------------------------------------ Esteban Distributor Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a small business disclosure statement and plan of reorganization, dated Jan. 17, 2017. The administrative expenses are classified in Class 1 and will be paid in full in cash as soon as practicable or agreed with the creditor no later than (a) the Effective Date or (b) the date any such claim becomes an allowed Administrative Claim. There are unsecured priority claims classified in Class 2 and shall be paid in full from Debtor's on going sales operations in years 1 and 2 of the plan. The Critical Vendor claim is classified in Class 3. This claim has been paid in full as per the critical vendor agreement from Debtor's ongoing sales operations. There are unsecured non-priority claims classified in Class 4 which will receive a pro-rata distribution. The general unsecured claims classified in Class 5 will receive a pro-rata distribution of $4,000. The equity holders claims classified in Class 6 will receive the same compensation as the last year, but no amount in excess. The Plan will be funded by Debtor's ongoing sales operations. Thus, it will have enough cash on hand on the effective date of the Plan to pay all the claims and expenses that are entitled to be paid on that date. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/prb16-03799-11-86.pdf About Esteban Beauty Esteban Beauty Distributor Corp. sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Puerto Rico (Case No. 16-03796) on May 11, 2016. Esteban Distributor Inc.'s bankruptcy case is Case no. 16-03799. PUERTO RICO: Gov. Cites "Sharp Contrast" With Island's Overseer --------------------------------------------------------------- The American Bankruptcy Institute, citing Nick Brown of Reuters, reported that Puerto Rico Governor Ricardo Rossello criticized a set of recommendations by the federal board in charge of managing the U.S. territory's finances, signaling a potential power struggle between the government and the board on how to pull the island out of economic crisis. According to the report, in a letter to the board, Gov. Rossello said that while he supports reducing government spending, he would not focus on layoffs as a primary means of saving money. He also took a more moderate stance on reducing repayments to holders of the island's $70 billion in debt, saying his administration had a "fundamental willingness to pay based upon available resources," the report related. The board, in a letter to the governor, said the island may have only $800 million available annually for debt service, just 21 percent of what it owes, the report further related. The board's letter had called for Puerto Rico to save more than $4.5 billion a year through a mix of savings and new revenues, including by "right-sizing government" through a 30 percent reduction in payroll and other means, the report said. * * * The Fiscal Agency and Financial Advisory Authority of Puerto Rico has selected Dentons US as its legal advisor on all aspects of its restructuring and revitalization efforts, including development and implementation of the Fiscal Plan, restructuring and renegotiation of municipal bond debt, communications with creditors and with the PROMESA Oversight Board, among others. 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. 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 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. ================= X X X X X X X X X ================= LATAM: IMF Forecasts Economic Growth of Just 1.2% in 2017 --------------------------------------------------------- EFE News reports that the IMF said that Latin America's economy would grow just 1.2 percent in 2017, a downward revision of four- tenths of a percentage point from the prior estimate. "The projected recovery is weaker than that forecast in October, given the persistent weakness in some of the principal economies even though they continue to experience moderate growth," International Monetary Fund (IMF) Western Hemisphere Department director Alejandro Werner said in a press conference, according to EFE News. *********** 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 2017. 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 * * *