/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170131.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, January 31, 2017, Vol. 18, No. 022 Headlines A R G E N T I N A ENTRE RIOS: S&P Assigns 'B-' Rating on $350MM Notes B R A Z I L ODEBRECHT SA: Brazil's Supreme Court Authorizes Plea Deal PROVINCE OF ENTRE: Fitch Rates Upcoming Bond Issue at 'B' C A Y M A N I S L A N D S ARTIS AGGRESSIVE: Shareholders Receive Wind-Up Report ARTIS PARTNERS: Shareholders Receive Wind-Up Report ARTIS PARTNERS 2x: Shareholders Receive Wind-Up Report CENTENNIAL UK II: Shareholders Receive Wind-Up Report COMMODITIES (ALPHA): Shareholders Receive Wind-Up Report DBARN NET 2007-1N: Members Receive Wind-Up Report DBARN NET 2007-OA5N: Members Receive Wind-Up Report ELECTRICINVEST (WINDCO II): Shareholders Receive Wind-Up Report LIMETREE CAPITAL: Shareholder Receives Wind-Up Report LIMETREE CAPITAL II: Shareholder Receives Wind-Up Report MAXIMUM EMERGING: Members Receive Wind-Up Report RACON FUND: Shareholder Receives Wind-Up Report RACON MASTER: Shareholder Receives Wind-Up Report D O M I N I C A N R E P U B L I C DOMINICAN NATIONAL: Has a Monopoly, Antitrust Complaint Says * DOMINICAN REPUBLIC: Central Bank Says Economy Grew 6.6% in 2016 M E X I C O CONTROLADORA MABE: Fitch Affirms IDRs at BB+; Outlook Positive P U E R T O R I C O AC INDUSTRIAL: Plan Confirmation Hearing on Feb. 28 EMPRESA LOCAL: Disclosure Statement Hearing Set for March 1 EMPRESA LOCAL: Unsecureds to Recoup 100% Under Plan EMPRESAS PLAYA: U.S. Wants Ban on Cash Collateral Access KAMA MANAGEMENT: Condado 5 Wants to Stop Cash Use V E N E Z U E L A PETROLEOS DE VENEZUELA: Cannot Afford to Export Its Oil - - - - - ================= A R G E N T I N A ================= ENTRE RIOS: S&P Assigns 'B-' Rating on $350MM Notes --------------------------------------------------- S&P Global Ratings assigned its 'B-' issue-level rating on the province of Entre Rios' (B-/Stable/--) notes for up to $350 million. The amortizing notes will be denominated in dollars. The province will use the proceeds to fund the development of infrastructure projects, improve the debt maturity profile, and for debt repayment. This is Entre Rios' first international issuance. S&P doesn't believe the new issuance will hurt the province's financial profile. Entre Rios has had uncertain access to external financing over the past several years due to market conditions, including the sovereign's default in 2014, and has mostly relied on short- and medium-term debt to finance its budget. Double-digit inflation and the limited access to financing have reduced the province's debt to an expected 29% of operating revenue in 2016 from 35% in 2013. Nevertheless, S&P believes that Entre Rios' debt burden will rise to 33% of operating revenue by 2018, partly as a result of the province's improved access to international markets, particularly following the sovereign's cure of its default in May 2016. S&P expects future international issuances to increase the province's exposure to exchange rate risk, and given the lack of a formal debt policy or debt management office, S&P will monitor Entre Rios' management of this issuance closely. As of Sept. 30, 2016, the province's debt reached nearly ARP15.2 billion, 26% of which was denominated in foreign currency. At the same time, Entre Rios owes approximately 41% of its total debt to the federal government, 25% to multilateral lending institutions, 26% to domestic and international banks and other financial institutions, and 7% to domestic market security holders. The 'B-' issuer credit rating and 'b-' stand-alone credit profile (SACP) reflect the province's individual credit profile and the institutional framework in which it operates. (SACP is a means of assessing the intrinsic creditworthiness of Entre Rios under the assumption that there's no rating cap.) Entre Rios, like all local and regional governments in Argentina, operates under a very volatile and underfunded institutional framework. At the same time, Entre Rios' weak budgetary performance, economy, and liquidity, and very weak budgetary flexibility are rating constraints. On the other hand, the province's moderate contingent liabilities and debt burden support its creditworthiness. The stable outlook on Entre Rios mirrors the one on the sovereign. Given that S&P doesn't believe that the province could meet the conditions to have a higher rating than the sovereign, S&P would only consider raising its ratings on the province in the next 12 months if it was to raise Argentina's foreign and local currency ratings, along with the transfer and convertibility assessment (T&C). Such an upgrade would have to be accompanied by the province's development of more formal debt and liquidity policies, including clearly defined targets, as well as improved budgetary flexibility or consistently stronger budgetary performance in the form of operating surpluses greater than 5%. At the same time, structural improvements in the institutional framework in which the province operates could help strengthen its creditworthiness. On the other hand, S&P could lower the ratings on Entre Rios during the same period if Argentina's T&C assessment weakens, if S&P was to lower the sovereign local or foreign currency ratings, or if S&P perceives that the province's financial commitments are unsustainable, or that Entre Rios faces a near-term payment crisis. RATINGS LIST Entre Rios (Province of) Issuer credit rating B-/Stable/-- New Rating Entre Rios (Province of) Senior Unsecured B- =========== B R A Z I L =========== ODEBRECHT SA: Brazil's Supreme Court Authorizes Plea Deal --------------------------------------------------------- Rogerio Jelmayer and Luciana Magalhaes at The Wall Street Journal report that Brazil's Supreme Court president accepted a plea deal made by current and former employees of construction company Odebrecht SA, which people close to the negotiations say includes testimony related to the Operation Car Wash anti-corruption probe that implicates allies of President Michel Temer. Leaks from the plea agreement negotiations have been frequent in the Brazilian press, and many in the country expect the details of the deal, when they're finally released, to shake the Temer administration, according to The Wall Street Journal. People familiar with the testimony in the agreement say it will implicate more than 100 politicians, including some close to President Temer, the report notes. Mr. Temer's office had no immediate comment. He has previously denied any wrongdoing. The agreement "could affect Mr. Temer's ability to govern, because there could be a lot of names of many of his allies," said Thiago de Aragao, a political scientist at consulting firm Arko Advice in Bras°lia, the report relays. "That could paralyze the government," he added. The Car Wash investigation of bid-rigging and bribery at state- controlled oil company Petroleo Brasileiro SA, or Petrobras, has resulted in the arrest, trial, conviction and sentencing of dozens of executives of the construction companies involved, the report discloses. Odebrecht's chief executive, Marcelo Odebrecht, was arrested and jailed in 2015 and last year was convicted of money laundering, corruption and conspiracy and sentenced to 19 years, the report relays. With the approval of his testimony in the plea deal, Mr. Odebrecht will be released from jail by the end of this year, though with restrictions on his movements, a person close to Mr. Odebrecht SA said, the report notes. The authorization of the deal, by Justice Carmen Lucia, came less than two weeks after the death of Supreme Court Justice Teori Zavascki in a plane crash off the coast of Rio de Janeiro state, the report notes. Mr. Zavascki had been in charge of reviewing and then approving or rejecting the testimony from 77 current and former executives and employees linked to Odebrecht, which last month signed a leniency agreement with U.S., Brazilian and Swiss authorities, the report relays, the report notes. Ms. Lucia put the plea deal under seal, and it isn't yet known when its details will be made public, a spokeswoman for the court said, the report adds. As reporter in the Troubled Company Reporter-Latin America on Dec. 2, 2016, The Wall Street Journal related 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. PROVINCE OF ENTRE: Fitch Rates Upcoming Bond Issue at 'B' --------------------------------------------------------- Fitch Ratings has assigned an expected Long-Term Foreign-Currency Rating of 'B(EXP)' to the Province of Entre Rios' upcoming bond issuance. KEY RATING DRIVERS The notes will be issued in USD for an amount of up to USD350 million in 2017, to accrue a fixed interest rate to be determined at issuance and payable on a semi-annual basis. The estimated maturity of the bond up to 10 years, with semi-annual payments after a potentially grace period to be determined upon issuance. The notes will be a senior unsecured obligation of the Province of Entre Rios. The bond is rated at the same level as the Province of Entre Rios. The ratings assigned to the Province reflect the features of the Argentinian institutional framework with a solid and stable revenue system. The ratings also reflect the Province's average debt metrics when compared to local and international peers and its weak liquidity position. Provincial Laws 10090 and 10456 of 2016 authorized the issuance of this debt. Around half of the proceeds will be used by the province to cancel existing debt and the rest to finance multiple infrastructure projects. The issuance will be governed by the laws of the State of New York. Among the events of default and acceleration of maturities, Fitch highlights the failure to pay debt principal for a period of three days and debt service for 30 days and failure to perform any payment having and aggregate principal amount equal or higher the equivalent to USD15 million. The notes substitute the one published in Oct. 31, 2016 for an amount up to USD250 million. RATING SENSITIVITIES The final rating of Entre Rios' new bond is contingent on the receipt of final documents conforming to information already received. Any change in the ratings assigned to the Province of Entre Rios will have a direct impact on the bond rating. ========================== C A Y M A N I S L A N D S ========================== ARTIS AGGRESSIVE: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Artis Aggressive Growth Ltd. received on Jan. 9, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robert Riemer Walkers 190 Elgin Avenue George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6386 ARTIS PARTNERS: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Artis Partners Ltd. received on Jan. 9, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robert Riemer Walkers 190 Elgin Avenue George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6386 ARTIS PARTNERS 2x: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Artis Partners 2x Ltd. received on Jan. 9, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robert Riemer Walkers 190 Elgin Avenue George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6386 CENTENNIAL UK II: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Centennial UK II Limited received on Jan. 16, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Isa Zainal c/o Ica Eden P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 COMMODITIES (ALPHA): Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Commodities (Alpha) Master Inst Ltd. received on Jan. 12, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. 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 DBARN NET 2007-1N: Members Receive Wind-Up Report ------------------------------------------------- The members of DBARN Net Interst Margin 2007-1N received on Jan. 5, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alan Turner c/o Andrew Johnson Circumference FS (Cayman) Ltd. P.O. Box 32322 Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 814 0700 DBARN NET 2007-OA5N: Members Receive Wind-Up Report --------------------------------------------------- The members of Dbarn Net Interest Margin 2007-OA5N received on Jan. 5, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alan Turner c/o Andrew Johnson Circumference FS (Cayman) Ltd. P.O. Box 32322 Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 814 0700 ELECTRICINVEST (WINDCO II): Shareholders Receive Wind-Up Report --------------------------------------------------------------- The shareholders of Electricinvest (Windco II) Limited received on Jan. 16, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Isa Zainal c/o Ica Eden P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 LIMETREE CAPITAL: Shareholder Receives Wind-Up Report ----------------------------------------------------- The shareholder of Limetree Capital Partners Limited received on Jan. 19, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cathlin Rossiter c/o Genesis Trust & Corporate Services Ltd. Elgin Court, 2nd Floor Elgin Avenue George Town Grand Cayman Cayman Islands KY1-1106 Telephone: (345) 945 3466 Facsimile: (345) 945 3470 LIMETREE CAPITAL II: Shareholder Receives Wind-Up Report -------------------------------------------------------- The shareholder of Limetree Capital Partners Limited II received on Jan. 19, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cathlin Rossiter c/o Genesis Trust & Corporate Services Ltd. Elgin Court, 2nd Floor Elgin Avenue George Town Grand Cayman Cayman Islands KY1-1106 Telephone: (345) 945 3466 Facsimile: (345) 945 3470 MAXIMUM EMERGING: Members Receive Wind-Up Report ------------------------------------------------ The members of Maximum Emerging Markets Alpha received on Jan. 20, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands RACON FUND: Shareholder Receives Wind-Up Report ----------------------------------------------- The shareholder of Racon Fund Ltd. received on Jan. 11, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Racon Capital Partners LLC c/o Sophia Leavett Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 RACON MASTER: Shareholder Receives Wind-Up Report ------------------------------------------------- The shareholder of Racon Master Fund Ltd. received on Jan. 11, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Racon Capital Partners LLC c/o Sophia Leavett 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 NATIONAL: Has a Monopoly, Antitrust Complaint Says ------------------------------------------------------------ Dominican Today reports that veteran politico and lawyer Guido Gomez Mazara submitted an antitrust complaint before the competition defense agency (Procompetencia), accusing the Dominican National Brewery (CND) of violating the law against unfair market practices, according to Dominican Today. Mr. Mazara's complaint accuses the CND -- maker of the leading beer Presidente -- of violating article 50 of the Constitution, which bars monopolies, and Articles 64 and 65 of the Competition Defense Law 42-08, according to Dominican Today. "On August 2016, Procompetencia conducted a study on competitiveness post-merger CND and AmBeV, which in its view demonstrated the generation of 'high levels of monopoly' in the beer market in the Dominican Republic," the complaint says, the report notes. Mr. Mazara said AmBeV as an economic agent that took over the brewery had a "collusive conduct" whose result was the rise in price, the restriction of production and the increase of company profits, the report discloses. Mr. Mazara said the National Brewery's monopoly is evidenced from the control of 98% of the beer market, including the 1% imported, "facilitating an increase in the price of the product to the detriment of the consumer," the report relays. In the request dated Nov. 2, 2016, Gomez calls on the regulatory agency, headed by Yolanda Martinez, to adopt precautionary measures including a "Cease and Desist Order to halt the alleged harm to competition or to the determined economic agents," the report adds. * DOMINICAN REPUBLIC: Central Bank Says Economy Grew 6.6% in 2016 ----------------------------------------------------------------- Dominican Today reports that the Central Bank of Dominican Republic reported that the preliminary figures show "a vigorous growth of 6.6%" of the economy, the highest in Latin America. This was announced by Central Bank governor Hector Valdez Albizu, who said that in the last three years the Dominican Republic has been leading the growth in the region, according to Dominican Today. In a press conference, the official explains that the agricultural sector showed a significant year-on-year growth of 9.6% driven by technical programs of the Ministry of Agriculture, favorable climatic conditions for much of the year and financial support through the Agricultural Bank, the Dominican Agricultural Insurer and the Special Fund for Agricultural Development, the report notes. In the construction sector, Valdez mentioned that the expansion was 8.8%, which was driven by the execution of private residential projects, new complexes and hotels in tourist areas and in the metropolitan area, as well as by public sector investments in the modernization of the national road system, classrooms and low-cost housing projects, the report relays. The head of the Central Bank also highlighted the growth of tourism of 10% from 5.6 million foreigners who arrived in the country to 6.0 million, the report says. "The crucial role of hotels, bars and restaurants, whose real added value increased by 6.4% in 2016, based on the arrival of foreigners and non-resident Dominicans," the official said, the report notes. As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Fitch Ratings has taken the following rating actions on the Dominican Republic: -- Long-Term Foreign Currency Issuer Default Rating (IDR) upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Senior unsecured Foreign and Local Currency bonds upgraded to 'BB-' from 'B+'; -- Short-Term Foreign Currency IDR affirmed at 'B'; -- Short-Term Local Currency IDR affirmed at 'B'. =========== M E X I C O =========== CONTROLADORA MABE: Fitch Affirms IDRs at BB+; Outlook Positive -------------------------------------------------------------- Fitch Ratings has affirmed Controladora Mabe, S.A. de C.V.'s ratings at 'BB+'. The Rating Outlook is Positive. The Positive Outlook reflects Fitch's expectations of further strengthening of Mabe's credit profile given stronger cash flow generation. It also reflects the potential for Mabe to increase business opportunities under a new shareholder structure, further advancing its cash flow generation. A strengthening of the company's total adjusted debt to EBITDA ratio to levels close to 2.5 times (x) through the economic cycles will support an upgrade. Conversely, volatility in the company's profitability, free cash flow (FCF) generation and expectations of total adjusted leverage solidly above 3.0x will likely result in the Outlook being revised to Stable. KEY RATING DRIVERS Strong Market Position Mabe holds a strong business position in most of its Latin American markets. The company has eight manufacturing facilities in Mexico, Ecuador, Colombia and Argentina, which allow it to compete throughout Latin America. Mabe focuses on offering a wide product portfolio under a multibrand strategy that targets all socioeconomic levels. It also has long-term contracts to distribute, manufacture and export appliances under the General Electric Co. brand. New Shareholder Qingdao Haier Co., Ltd. (Haier) acquired GE's appliance business in June 2016. The transaction included GE's 48.4% stake in Mabe. All terms and conditions that Mabe had with GE were maintained. A new partner focused on growing its appliance business globally could be positive considering Mabe's manufacturing capacity, low- cost skilled-labor force and pre-established connectivity to Haier's U.S. product distribution network. Trade Policy Uncertainty Uncertainty regarding the future of the North American Free Trade Agreement (NAFTA) has increased with the election of President Trump. Mabe is an important manufacturer and exporter with significant exposure to the NAFTA region. The company manufactures a relevant quantity of GE branded products through its joint venture with Haier, a large international appliance manufacturer. Barriers to the import of appliances into the U.S. would likely hurt Mabe's ability to deleverage and could result in the Outlook being revised to Stable. Stable Results Amid Volatility Mabe's operating environment remains challenging due to sluggish demand for appliances in South America and weakening foreign currencies throughout Latin America. Nevertheless, positive housing dynamics in the U.S., where the company generates over a third of its revenue, and available consumer credit in key markets, such as Mexico have offset most of these effects on Mabe's financial performance. Moderate Improvement in Credit Metrics Fitch projects gross leverage at 2.8x in 2017 or about 3.1x adjusting for the factoring of account receivables. This adjustment allows Fitch to compare issuers that may use different sources of funding. In its projection, Fitch considers Mabe's improved cash-generation due to the absence of restructuring and non-recurring charges as well as to efficiencies resulting from consolidated manufacturing in fewer sites of larger scale. Deleveraging beyond that projected by Fitch, in conjunction with robust cash flow generation and strong liquidity, would be viewed positively for the ratings. Recovering Cash Flow Generation Mabe's funds from operations (FFO) margin has been low over the last four years partly due to multiple restructuring and reorganization expenses related to the company's operations in Brazil, as well as the consolidation of manufacturing capacity into larger production sites in Mexico and Colombia. In addition, weak conditions in Latin America, including the company's operations in Argentina, pressured financial performance. Positively, Mabe has significantly reduced working capital since 2013, and its EBITDA margins have expanded to historical levels around 10%. Absent restructuring charges, Mabe's FFO margin should trend to levels above 6%, from about 3% in 2014 and about 5% in 2015. KEY ASSUMPTIONS -- Revenues grow low-single digits in 2017 and accelerate in 2018 and 2019. -- EBITDA margins remain around 10% over the next few years. -- Debt/EBITDA improves slowly over the medium term mostly due to higher EBITDA generation. -- The company does not undertake meaningful shareholder distributions; FCF remains neutral through 2018 and turns positive thereafter. RATING SENSITIVITIES Future developments that may, individually or collectively, lead to a positive rating action include: -- Increased sales volumes that result in robust cash flow generation, stable profitability and total adjusted debt/EBITDA close to 2.5x, in conjunction with strong liquidity. Future developments that may, individually or collectively, lead to a negative rating action include: -- Large debt-financed acquisitions, deterioration in profitability and cash flow generation from lower demand, and/or competitive or input cost pressures, resulting in the expectation of adjusted gross leverage levels consistently above 3.5x. LIQUIDITY Mabe's liquidity is considered adequate. During the fourth-quarter of 2016, the company refinanced USD175 million of its USD300 million syndicated bank loan, with a 10-year private notes issuance. It faces no material debt amortizations until 2019 when USD520 million are due -- including USD481 million of 2019 notes. The company maintains good access to bank lending and capital markets as shown by bank debt refinancing during 2013, 2015 and the private notes issuance in 2016. Total debt as of Sept. 30, 2016 was USD821 million, composed of USD481 million of notes due 2019 and bank debt. Its cash balance was USD58 million. FULL LIST OF RATING ACTIONS Fitch has affirmed Mabe's ratings as follows: -- Foreign Currency Long-Term Issuer Default Rating (IDR) at 'BB+'; -- Local Currency Long-Term IDR at 'BB+'; -- 7.875% senior unsecured notes due 2019 at 'BB+'. ====================== P U E R T O R I C O ====================== AC INDUSTRIAL: Plan Confirmation Hearing on Feb. 28 --------------------------------------------------- The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico has conditionally approved AC Industrial Services Corp's disclosure statement filed on Jan. 20, 2017, referring to the Debtor's plan of reorganization. A hearing for the consideration of the final approval of the Disclosure Statement and the confirmation of the Plan will be held on Feb. 28, 2017, at 9:00 a.m. Any objection to the final approval of the Disclosure Statement and or the confirmation of the Plan will be filed on or before 14 days prior to the date of the hearing on confirmation of the Plan. Acceptances or rejections of the Plan may be filed in writing by the holders of all claims on or before 14 days prior to the date of the hearing on confirmation of the Plan. The Debtor will file with the Court a statement setting forth compliance with each requirement in U.S.C. Section 1129, the list of acceptances and rejections and the computation of the same, within seven working days before the hearing on confirmation. About AC Industrial Headquartered in Carolina, Puerto Rico, AC Industrial Services Corp filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-04843) on June 16, 2016, estimating its assets at up to $50,000 and liabilities at between $500,001 and $1 million. Noemi Landrau Rivera, Esq., at Landrau Rivera & Associates serves as the Debtor's bankruptcy counsel. EMPRESA LOCAL: Disclosure Statement Hearing Set for March 1 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico is set to hold a hearing on March 1, at 2:00 p.m., to consider approval of the disclosure statement explaining the Chapter 11 plan of Empresa Local Global Inc. The hearing will take place at the Jose V. Toledo Federal Building and U.S. Courthouse, Courtroom No. 1, Second Floor, 300 Recinto, Sur, Old San Juan, Puerto Rico. Objections must be filed not less than 14 days prior to the hearing. About Empresa Local Global Empresa Local Global, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 14-06675) on August 14, 2014. The Debtor, formerly known as Casas Mi Estillo, was created in 1987 and was in the business of selling wooden prefabricated houses in Puerto Rico. The case is assigned to Judge Brian K. Tester. At the time of the filing, the Debtor estimated assets and liabilities of less than $1 million. The Debtor is represented by Charles A. Cuprill-Hernandez, Esq., in San Juan, Puerto Rico. EMPRESA LOCAL: Unsecureds to Recoup 100% Under Plan --------------------------------------------------- Empresa Local Global, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico a disclosure statement referring to the Debtor's plan of reorganization. Class 1 Allowed General Unsecured Claims -- estimated at $12,973.98 -- are unimpaired under the Plan, with an estimated recover of 100%. The claims will be paid with available funds arising from the Debtor's rent income and the sale of 729.50 square meters of its realty at Urbanizacion Industrial No. 3, Avenida By Pass, Ponce, PR to Furiel Auto Corp. for $200 per square meter for a total of $145,900. The funds are more than sufficient to pay all creditors in full on the Effective Date of the Plan. The Disclosure Statement is available at: http://bankrupt.com/misc/prb14-06675-328.pdf The Plan was filed by the Debtor's counsel: Charles A. Cuprill-Hernandez, Esq. CHARLES A. CUPRILL, P.S.C., LAW OFFICES 356 Fortaleza Street Second Floor San Juan, PR 00901 Tel: (787) 977-0515 Fax: (787) 977-0518 E-mail: ccuprill@cuprill.com Empresa Local Global, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 14-06675). The Debtor, formerly known as Casas Mi Estillo, was created in 1987 and was in the business of selling wooden prefabricated houses in Puerto Rico. EMPRESAS PLAYA: U.S. Wants Ban on Cash Collateral Access -------------------------------------------------------- The United States of America asks the U.S. Bankruptcy Court for the District of Puerto Rico to prohibit or condition Empresas Playa Joyuda, Inc.'s use of cash collateral as is necessary to provide adequate protection of the United States' interest. The United States asserts a federal tax lien against the Debtor for several periods of unpaid employment taxes, and has filed a proof of its secured claim in the amount of $25,723, which the Debtor has not disputed. The United States contends that the federal tax lien attaches to all rights to property, whether real or personal, belonging to Debtor, and among the property securing the United States' claim are cash or cash equivalents, accounts receivable, and proceeds of the accounts receivable. The United States contends that although the Debtor has entered a stipulation with a separate secured creditor to allow for use of cash collateral, the Debtor has not sought or obtained the United States' approval to use cash collateral, or entered a court-approved plan of adequate protection for the United States allowing for use of that collateral. The United States further contends that based on the monthly budget estimates that the Debtor has provided in its Emergency Motion Requesting Authorization to Use Cash Collateral, the Debtor's operating expenditures average over 13 months to approximately $36,000 per month, a significant amount which the Debtor is nonetheless apparently able to meet with cash collateral. About Empresas Playa Joyuda Empresas Playa Joyuda, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 15-09594) on Dec. 1, 2015. The petition was signed by Cesar Perez Perichi, president and treasurer. The Debtor is represented by Victor Gratacos Diaz, Esq., at Gratacos Law Firm, PSC. The Debtor disclosed $939,685 in assets and $2.74 million in liabilities. KAMA MANAGEMENT: Condado 5 Wants to Stop Cash Use ------------------------------------------------- Condado 5, LLC, successor-in-interest of Banco de Desarrollo Economico para Puerto Rico and Firstbank Puerto Rico, asks the U.S. Bankruptcy Court for the District of Puerto Rico to prohibit Kama Management, Inc. from using its cash collateral. Condado 5 is a secured creditor having a lien over the Debtor's accounts receivables which constitutes cash collateral under Section 363 of the Bankruptcy Code. Condado 5 relates that Banco de Desarrollo Economico extended to the Debtor a certain Loan Agreement in the principal amount of $1,300,000, which is secured by the Debtor's accounts receivables, inventory, equipment, contracts, and all funds held at any time therein, general intangibles and all proceeds of the foregoing assets, including the cash proceeds derived therefrom. Condado 5 contends that the Debtor has not sought the authorization of the Court for its use, has not obtained Condado 5's consent for its continued use, nor has the Debtor provided adequate protection to Condado 5 pursuant to Sections 361 and 363 of the Bankruptcy Code. Condado 5, LLC is represented by: Sonia E. Colon, Esq. Gustavo A. Chico-Barris, Esq. Camille N. Somoza, Esq. Ferraiuoli LLC PO Box 195168 San Juan, PR 00919-5168 Tel.: (787) 766-7000 Fax: (787) 766-7001 Email: scolon@ferraiuoli.com gchico@ferraiuoli.com csomoza@ferraiuoli.com About Kama Management Inc. Kama Management Inc. filed a Chapter 11 petition (Bankr. D.P.R. Case No. 16-08008), on October 5, 2016. The Petition was signed by Alberto Perez Pujals, president. At the time of filing, the Debtor had no assets and had total debts of $1.45 million. The Debtor is represented by Maria Soledad Lozada Figueroa, Esq., at Lozada Law & Associates, LLC. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Cannot Afford to Export Its Oil ------------------------------------------------------- Caribbeannewsnow.com reports that more than four million barrels of Venezuelan crude oil and fuel exports are stuck in tankers in the Caribbean because Venezuela's state-run oil firm Petroleos de Venezuela SA (PDVSA) cannot afford to pay for cleaning dirty tankers and port inspections, Reuters reported. According to PDVSA's trade documents and Reuters shipping data, some 12 tankers full of around 1.4 million barrels of crude oil, diesel, fuel oil, gasoline, and LPG were anchored in Venezuelan and Caribbean waters and were waiting to be cleaned, according to Caribbeannewsnow.com. In addition, another 11 vessels full of oil and oil products have been retained or embargoed by port authorities, maritime agencies and inspection firms because PDVSA has not paid its bills, the report notes. The 11 tankers and a few smaller vessels held for other operational delays contain a total of 2.9 million barrels of crude and fuels, Reuters data showed, the report relays. Maritime laws do not allow dirty tankers to travel through international waters, the report notes. PDVSA generates almost all of the export revenues for Venezuela. As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Moody's Investors Service assigned a Caa3 rating to Petroleos de Venezuela, S.A. (PDVSA)'s 8.5% $3.4 billion in senior secured notes due 2020. The outlook on the rating is negative. *********** 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, Ivy B. Magdadaro, 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 * * *