/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170301.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, March 1, 2017, Vol. 18, No. 43 Headlines B R A Z I L BANCO BTG: Fitch Affirms B- Rating on Jr. Subordinated Notes BANCO NACIONAL: Works to Unlock Close to $5BB Loan in Disbursement C A Y M A N I S L A N D S MEDICAL VENTURES: Sole Member Receives Wind-Up Report PARTICULAR HOLDINGS: Members Receive Wind-Up Report PHNIA CO: Members Receive Wind-Up Report PURSUIT OPPORTUNITY: Shareholders Receive Wind-Up Report SEQUEDGE ASA: Shareholder Receives Wind-Up Report SPR 2 LIMITED: Shareholders Receive Wind-Up Report STANDARD GLOBAL: Members Receive Wind-Up Report TULOS COMMODITIES: Shareholders Receive Wind-Up Report TULOS COMMODITIES MASTER: Shareholders Receive Wind-Up Report US FUND II: Shareholders Receive Wind-Up Report D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Medina Signs Sweeping Transport Bill Into Law J A M A I C A JAMAICA: Chief Justice Establishes Insolvency Division in S.C. NATIONAL COMMERCIAL: Fitch Affirms Long-Term IDRs at 'B' * Jamaican Banks Issue Detailed Response to Private Members Bill P U E R T O R I C O DACCO TRANSMISSION: Examiner Taps Jenner & Block as Attorneys ONCOLOGY INSTITUTE: Taps Gonzalez-Cordero as Legal Counsel ONCOLOGY INSTITUTE: Taps Luis Cruz Lopez as Accountant PET EXPRESS USA: Seeks to Hire Landrau Rivera as Legal Counsel SPANISH BROADCASTING: Renaissance Technologies Owns 7% CL-A Shares SPANISH BROADCASTING: PlusTick Management Owns 8.9% Class A Shares VIA NIZA: Seeks to Hire Luis Cruz Lopez as Accountant - - - - - =========== B R A Z I L =========== BANCO BTG: Fitch Affirms B- Rating on Jr. Subordinated Notes ------------------------------------------------------------ Fitch Ratings has affirmed the Issuer Default Ratings (IDRs) of BTG Pactual S.A. and its related entities: BTG Pactual Holding S.A. (BTGH) and BTGI Investments LP (BTGI). At the same time, Fitch upgraded BTG Pactual and BTGH national ratings to 'A(bra)' from 'A-(bra)' with a Stable Outlook. KEY RATING DRIVERS The upgrade of the national scale ratings reflects the local relativity adjustment on BTG Pactual's creditworthiness, to incorporate the bank's reduced refinancing risk and improved liquidity and capital stance, which are now more consistent to the 'A(bra)' rating category. This reflects management's successful efforts towards the repositioning of its franchise, only 14 months after the liquidity crisis that affected the bank. The Outlook on the IDRs remains Negative and captures the challenges imposed by the current operating environment, which in Fitch's view continues to present a negative trend. BTG Pactual's management demonstrated a satisfactory ability to address the bank's liquidity concerns, by building a large liquidity cushion and reinforcing its capitalization, through a timely and successful deleveraging process, which included the sale of core and non-core assets throughout 2015 and 2016. In Fitch's view, those were all key measures contributing to a greater restoration of investor's confidence and to the bank's increased capability of accessing long-term funding over the past quarters. The sale of BSI, concluded on November 2016, and the spin-off of the commodities business were also important to reinforce BTG Pactual's capital and liquidity position, besides allowing it to pre-pay, during October 2016, the remaining portion of the funding facility obtained with FGC (local FDIC) during the liquidity crisis. Fitch also believes that BTG Pactual's recent announced intention to separate stock market listings for its investment bank and private equity businesses should also favor greater investor confidence, as it will formally separate and add more clarity to the bank's commercial activities separating them from its private equity and proprietary trading operations. At December 2016, BTG's cash position amounted to BRL12.7 billion - even above pre-crises level and was enough to meet roughly 84% of its short-term liabilities. Accordingly, BTG Pactual's regulatory capital ratio improved to 21.5% in December 2016 (15.5% in December 2015), while Fitch Core Capital ratio stood at 17% at the same date (10.6% in December 2015). In the long-run, however, Fitch recognizes that capital consumption may accelerate following the attainment of the bank's business goals. Still, management's intention to leverage under its less balance-sheet intensive businesses (Asset & Wealth Management and Investment Banking) may allow it to maintain improving internal capital generation, without necessarily compressing its capital base. The spin-off of the commodities division and the deleveraging of its Principal Investments division bodes well in the bank's strategy to reduce the group's market risk exposure and free-capital. Fitch notes that BTG Pactual's overall performance is now naturally lower if compared to the bank's historical returns, as the bank still faces the challenge of repositioning its remaining existing business lines after its liquidity crises event. Over the last three years prior to the liquidity crises event, the group's structure benefited from an increasing diversification on its business franchise, expanding its leadership in the Latin American region, reinforcing its fee business through the acquisition of BSI and leveraging on corporate lending opportunities. After BTG's business reorganization, though, a relevant share of its revenues generations is now linked again to its trading units, which Fitch deems are more volatile. Recent quarterly results suggests early signs of profitability development on the back of BTG Pactual's leaner structure coupled with the gradual improvement on the bank's client divisions. Nevertheless, Fitch does not rule out the possibility of a longer than expected weaker operating environment, which may postpone short-term business targets and delay BTG Pactual's capability to achieve targeted profitability improvements. KEY RATING DRIVERS: BTGH BTGH's IDR's and National Scale Ratings are equalized to those of its sole operating subsidiary, BTG Pactual. BTGH is a pure holding company and directly controls 70.3% of BTG Pactual. The equalization of the ratings is based on the high correlation between the probability of default for BTGH and the bank. Both are incorporated in the same jurisdiction, being overseen by Brazilian authorities. Double leverage (equity investments in subsidiaries and BHC intangibles/equity) is acceptable at 117% in June 2016, and liquidity risk management is centralized at the bank. BTGH shares the same executives, controls and systems with BTG Pactual. They are supervised by the Central Bank of Brazil, which requires the entire group to be responsible for the liabilities and obligations of any group company. Nevertheless, BTGH's support and support floor ratings are assigned at '5' and 'NF', respectively, given BTGH's nature as a holding company, indicating that although possible, external support cannot be relied upon. Most revenue derives from the equity pickup received from BTG Pactual, with low funding expenses and costs. Average return on equity has surpassed 20% each year, with exception of 2015 when it was 10.8%, as net income was affected by expenses related to the creation of provisions for contingencies. KEY RATING DRIVERS: BTGI BTGI's Long-Term IDR rating reflects its implicit and indirect support it receives from BTG Pactual. However, despite its evident links with the group (franchise, common management, relevance of its revenue stream and completely aligned business model), BTGI remains a 'sister company' of BTG within the organization structure, without being a direct subsidiary of BTGH. Hence, its rating remains one notch down from the rating of BTGH, the primary source of support to the entity. The group's recent announced intention to split the stock market listing for its investment banking and merchant banking division does not alter Fitch expectations that BTGI will continue to benefit from BTG Pactual's indirect support, through BTGH, should it be needed. They will remain sharing the same ultimate owners with majority control, and, in a stress situation, Fitch believes that BTGI may continue to rely on BTG Pactual's willingness to extend support. The group's partnership holds, directly or indirectly, 70.3% of both BTG Pactual and BTGI voting shares. BTGI concentrates the bulk of the Principal Investment business, which includes the group's Merchant Banking (Private Equity investments), Global Markets (Proprietary Trading) and Real Estate (investment in Real Estate funds and other Real Estate Structures) divisions. Those areas were already planned to reduce in size and relevance in the group's business, and had their deleverage process accelerated after BTG Pactual's liquidity crises. At the end of 2016, BTGI had total equity of BRL2.1 billion, roughly 10% of BTG Pactual's consolidated equity. During 2015 and 2016, Principal Investments division accumulated losses of BRL1.1 billion and BRL594 million, respectively, mainly due mainly due to negative contribution from private equity and real estate units. With the deleveraging of its principal investments, BTGI should become less important for the group while the volatility in the contribution of global markets business to earnings should fall. RATING SENSITIVITIES BTG Pactual IDRs and VR The potential for an upgrade of BTG Pactual's IDRs remains limited in the short and medium term due to the challenges imposed by the current operating environment. The bank's ratings could be downgraded in case of a steep deterioration of its profitability metrics to levels below an operating profit ROAA of 1% and/or Fitch Core Capital falls below 10%. Though there is a lower risk of this scenario materializing, BTG Pactual's ratings could be downgraded in the event of any accusation of wrongdoings and/or official investigations are unveiled related to the bank's business and operations that result in pressures on the bank's reputation and further weaken its franchise and financial profile BTG Pactual National Ratings Further positive rating actions on the BTG Pactual's national scale ratings could arise if the entity sustains recent improvements on its business and funding franchise while maintaining satisfactory capitalization and preserving its credit metrics. BTGH Changes to the rating of BTG Pactual may lead to changes to BTGH's ratings. Also, an increase of its double leverage ratio above 120% or a deterioration of its debt service metrics may result in a downgrade of BTGH's ratings. BTGI Changes to the rating of BTG Pactual or BTGH may lead to changes to BTGI's ratings. Also, the company can be downgraded if Fitch has reason to believe that the capacity or propensity of support from BTGH has changed, illustrated, for instance, by a lower level of management, operational and balance-sheet integration between BTG Pactual and BTGI. In addition, a material deterioration of BTGI's financial profile where sustained losses and/or a significant increase of its leverage may hinder the overall financial profile of BTG Group, may trigger a rating downgrade. Fitch has taken the following rating actions: Banco BTG Pactual S.A. -- Long-Term Foreign and Local Currency IDRs affirmed at 'BB-', Negative Outlook; -- Short-Term Foreign and Local Currency IDRs affirmed at 'B'; -- Viability Rating affirmed at 'bb-'; -- Long-term National Rating upgraded to 'A(bra)' from 'A-(bra)'; Stable Outlook; -- Short-term National Rating upgraded to 'F1 ' from 'F2(bra)'; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at 'NF'; -- Senior unsecured notes, due in September 2017, foreign currency rating affirmed at 'BB-'; -- Senior unsecured notes due in January 2020, foreign currency rating affirmed at 'BB-'; -- Senior unsecured notes due in January 2034, foreign currency rating affirmed at 'BB-'; -- Subordinated notes due in September 2022, foreign currency rating affirmed at 'B'; -- Perpetual non-cumulative junior subordinated notes, foreign currency rating affirmed at 'B-'. BTG Investments LP -- Long-Term Foreign and Local Currency IDRs affirmed at 'B+'; Negative Outlook; -- Support Rating affirmed at '4'; -- Senior guaranteed notes affirmed at 'BB-'. BTG Pactual Holding S.A. -- Long-Term Foreign and Local Currency IDRs affirmed at 'BB-', Outlook Negative; -- Short-Term Foreign and Local Currency IDRs affirmed at 'B'; -- Long-term National Rating upgraded to 'A(bra)' from 'A-(bra)'; Outlook Stable; -- Short-term National Rating upgraded to 'F1(bra)' from 'F2(bra)'; -- Support Rating at affirmed '5'; -- Support Rating Floor affirmed at 'NF'. BANCO NACIONAL: Works to Unlock Close to $5BB Loan in Disbursement ------------------------------------------------------------------ Luciana Magalhaes at The Wall Street Journal reports that Banco Nacional de Desenvolvimento Economico e Social S.A. (BNDES) is working to unlock close to $5 billion in loans that were suspended last year because they were linked to companies involved in the sweeping Operation Car Wash corruption probe, Chief Executive Officer Maria Silvia Bastos Marques said in an interview. The executive, who was also previously a director at the bank, said she has been reviewing all the lender's practices to make it more transparent and agile, and to give it a broader reach, according to The Wall Street Journal. The report notes that the Car Wash investigation, launched in 2014, uncovered a vast bid-rigging and bribery scheme centered on government-controlled oil company Petroleo Brasileiro SA. Investigators have also said they suspect there might have been undue political influence on lending decisions at the Banco Nacional de Desenvolvimento Economico e Social, known as BNDES, the report relays. In her tenure at the top, Ms. Marques said she hasn't found any evidence of systemic graft at the state-owned lender and is confident that the BNDES hasn't hidden anything in a so-called black box, a term used in Brazil to refer to hidden wrongdoing, the report notes. "I'm convinced . . . it's impossible [that there was corruption and that it wasn't yet uncovered] at the institutional level," Ms. Marques said in an interview in the bank's headquarters, the report relays. "No black box would withstand [the investigation]. Brazil is being cleaned up," she added. Last year, before Ms. Marques took the helm, BNDES halted payments to 25 approved projects abroad by Brazilian construction firms Odebrecht, OAS, Queiroz Galvao, Camargo Corràa and Andrade Gutierrez in countries, including Argentina, Cuba, Venezuela, Guatemala, Honduras, the Dominican Republic, Angola, Mozambique and Ghana, the report recalls. The value of those projects totaled $7 billion, of which $2.3 billion had already been disbursed. The bank also put under review another 22 projects which were in various stages of analysis, the report notes. BNDES has written new rules for financing construction projects abroad that include a requirement to consider the impact of the project on the Brazilian economy, the report relays. Borrowers and exporters must also sign a statement attesting to the lawful use of the loan and establishing penalties in the case of fraud or inaccuracies in the contract, the report says. "The criteria (for approving the projects) have been defined and we're not standing still, far from it," said Ms. Marques, a former head of steelmaker Companhia Siderurgica Nacional, who was appointed by Mr. Temer last May, the report notes. "It's very important to us to do all we can, as fast as we can," the report notes. The bank already approved one disbursement from the list of suspended projects, by Queiroz Galvao, for work in Honduras. Disbursements for other projects could be unlocked as early as next month, according to BNDES director Ricardo Ramos, and the flow is likely to continue, the report relays. "I don't know if we will be able to resolve all 25 [projects], but we'll be able to resolve a good part of them" in the next year or two, Mr. Ramos said, the report discloses. Created in 1952, BNDES in recent years was used by the government to try to build up globally competitive champions in key sectors, the report says. Ms. Marques's revamping of the bank emphasizes a new focus on small-and medium-size companies that otherwise could have more difficulty getting loans, the report relays. "Everyone asks if there won't be any more national champions, I say on the contrary, we are offering the same conditions to all so there could be many national champions," she said, the report notes. Despite Ms. Marques's conviction there was no systemic wrongdoing, analysts suspect investigators could still uncover crimes at the bank, which as of last September had about BRL646 billion ($209.1 billion) in outstanding loans, the report relays. The report discloses that Rafael Alcadipani, an academic at Brazil's Get£lio Vargas Foundation, said that there is already evidence of influence peddling and that more could be discovered. Prosecutors suspect that Odebrecht, which agreed in December to pay the world's largest anticorruption settlement, benefited from political influence that helped it arrange loans and win public works contracts overseas, the report notes. Analysts, including Mr. Alcadipani, believe Eike Batista, the former billionaire who at the height of his wealth received billions of dollars in loans from the BNDES and is currently in jail for alleged corrupt practices, could decide to sign a plea- bargain agreement with Brazilian authorities and tell them about his dealings with the bank, the report relays. Ms. Marques, however, said that if there was any wrongdoing at the public bank, it was on a personal level and bank employees want it to be uncovered, the report adds. As reported in the Troubled Company Reporter - Latin America on July 14, 2016, S&P Global Ratings affirmed its 'BB' foreign and local currency global scale ratings on Banco Nacional de Desenvolvimento Economico e Social S.A. (BNDES). ========================== C A Y M A N I S L A N D S ========================== MEDICAL VENTURES: Sole Member Receives Wind-Up Report ----------------------------------------------------- The sole member of Medical Ventures Limited received on, Feb. 7, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michel Clemence Mao Financial Services S.A. 14, rue Charles-Bonnet 1206 Geneve - Suisse Telephone: +41-22-818-6161 PARTICULAR HOLDINGS: Members Receive Wind-Up Report --------------------------------------------------- The members of Particular Holdings Ltd. received on Feb. 6, 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 PHNIA CO: Members Receive Wind-Up Report ---------------------------------------- The members of Phnia Co Ltd. received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Paul Travers P.O. Box 1569 Grand Cayman KY1-1110 Cayman Islands Telephone: +345 949 4018 Facsimile: +345 949 7891 PURSUIT OPPORTUNITY: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Pursuit Opportunity Fund I, Ltd. received on, Jan. 24, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Anthony Schepis Frank Canelas c/o Ashleigh Dixon, Carey Olsen CO Services Cayman Limited Willow House, Cricket Square P.O. Box 10008 Grand Cayman, KY1-1001 Cayman Islands Telephone: (+1 345) 749 2023 SEQUEDGE ASA: Shareholder Receives Wind-Up Report ------------------------------------------------- The shareholder of Sequedge Asa Capital (Cayman) Limited received on, Jan. 26, 2017, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Junichi Naganawa Lincoln Road #24-12 Singapore 308345 Singapore Telephone: + 1 (345) 949 2648 Facsimile: +1 (345) 949 8631 SPR 2 LIMITED: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of SPR 2 Limited received on, Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Shawn Singh c/o Maples and Calder Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands STANDARD GLOBAL: Members Receive Wind-Up Report ----------------------------------------------- The members of Standard Global Equity Cayman, Ltd. received on Jan. 26, 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 TULOS COMMODITIES: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Tulos Commodities Fund Ltd. received on, Jan. 25, 2017, 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. 161a Artillery Court, Shedden Road P.O. Box 10085, Grand Cayman KY1 1001 Cayman Islands Telephone: (345) 747 2739 TULOS COMMODITIES MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------------- The shareholders of Tulos Commodities Master Fund Ltd. received on, Jan. 25, 2017, 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. 161a Artillery Court, Shedden Road P.O. Box 10085, Grand Cayman KY1 1001 Cayman Islands Telephone: (345) 747 2739 US FUND II: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of US Fund II Investment Holding Limited received on, Jan. 25, 2017, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Ruth Simpson P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8734 Facsimile: (345) 945 4237 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Medina Signs Sweeping Transport Bill Into Law ----------------------------------------------------------------- Dominican Today reports that President Danilo Medina signed the Mobility, Land Transport, Traffic and Road Safety bill into Law, which creates the National Traffic and Land Transport Institute (INTRANT) as a national governing agency, with a financially autonomous status, and forms part of the Public Works Ministry. The new agency abolishes five transport sector regulatory institutions: The Technical Land Transport Office (OTTT), the Land Transit Directorate (DGTT), the Taxis Administration and Regulation Council (CART), the Public Transport Drivers Pensions and Retirements, and the Land Transport Development Fund (Fondet), according to Dominican Today. The new law also creates the General Traffic Safety and Land Transport Agency (DIGESETT), which fuses the Metropolitan Transit Authority (AMET) and the Santiago Metropolitan Transit Authority (AMETRASAN), the report notes. Moreover, the new agency will oversee the fines and infractions and control the land passenger and cargo transport and road safety, as part of the National Police, the report relays. Controls The legislation establishes controls on public transport such as the age of drivers, the number of passengers in vehicles, their lifespan; the number of passengers on motorcycles; bars the transport of children under 8 on motorcycles, among other rules, the report adds. 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'. ============= J A M A I C A ============= JAMAICA: Chief Justice Establishes Insolvency Division in S.C. -------------------------------------------------------------- RJR News reports that Chief Justice Zaila McCalla disclosed the establishment of the Insolvency Division of the Jamaican Supreme Court. The announcement was made last weekend at a training session, where members of the judiciary were sensitized on the new provisions of the Insolvency Act, according to RJR News. The report notes that the Act makes provision for Jamaicans filing for bankruptcy to benefit from a more business friendly approach to adjudicating these matters. It sets out changes to the application process, the role of the court, personal and corporate insolvency as well as the role and functions of the Supervisor of Insolvency, the report relays. The Chief Justice said the main objective of modern insolvency laws is rehabilitation of the debtor where possible, maximizing payments to creditors as well as distributing assets fairly and equitably, the report discloses. Vivian Brown, Director General in the Ministry of Industry and Commerce, is seeking to promote the broader benefits of the Insolvency Act to Jamaica's economy, the report says. According to him, this is a very important component of the business environment reform and reducing the stigma of business failure, the report notes. The Insolvency Act, which repealed the Bankruptcy Act, came into effect in January 2015. As reported in the Troubled Company Reporter-Latin America on Feb. 9, 2017, Fitch Ratings has affirmed Jamaica's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B' with a Stable Outlook. The issue ratings on Jamaica's senior unsecured Foreign and Local Currency bonds are also affirmed at 'B'. The Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is affirmed at 'B' and the Short-Term Foreign Currency and Local Currency IDRs at 'B'. NATIONAL COMMERCIAL: Fitch Affirms Long-Term IDRs at 'B' -------------------------------------------------------- Fitch Ratings has affirmed National Commercial Bank Jamaica Limited's ratings as follows: -- Long-term foreign and local currency IDRs at 'B'; Outlook Stable; -- Short-term foreign and local currency IDRs at 'B'; -- Viability Rating at 'b'; -- Support Rating at '4'; -- Support Rating Floor at 'B'. KEY RATING DRIVERS IDRS and VR The bank's IDRs and VR reflect the high influence of the operating environment given its substantial exposure to the sovereign as well as its reach into all major sectors of the Jamaican economy through its diverse corporate and retail banking, insurance and securities services. As a result, NCBJ's IDRs are in line with those of the sovereign ('B'; Outlook Stable). NCBJ's capital position represents a relative strength, underpinned by moderate asset growth, stable earnings, a reasonable dividend distribution policy, as well as stringent local capital requirements. At September 2016, Fitch estimated NCBJ's consolidated Fitch Core Capital at 24.1% of adjusted risk weighted assets, well above the peer median. The Bank of Jamaica requires that NCBJ maintain a regulatory capital ratio of 12.5% compared to the 10% regulatory minimum, due to its systemic importance (42.9% commercial bank market share by assets at September 2016). In addition, contrary to Fitch or Basel standards, local regulation excludes retained earnings from qualifying capital. In terms of financial performance, NCBJ's has successfully adapted to a steadily pressured net interest margin, relying increasingly on fee, commission and premium income. Together, non-interest income grew to 32.7% of gross revenues during fiscal year 2016 (31.5% during fiscal year 2015). NCBJ's administrative expenses registered an uptick as a proportion of gross revenues in 2016, but should decline over the medium term in response to the bank's efficiency strategy. NCBJ's ratings also reflect its solid liquidity profile, surpassing local requirements. At December 2016, liquid assets covered customer deposits by 108.2% and covered estimated short term net cash outflows by 170%. However, a majority of NCBJ's liquid assets consist of speculative grade government bonds that could become illiquid during periods of stress. Asset quality is correlated with the sovereign due to NCBJ's large holdings of government securities, representing approximately 36.7% of consolidated assets at September 2016. In addition, NCBJ's loan quality indicators demonstrate steady improvement but lag behind regional peers. NCBJ's non-performing loans (NPLs) registered a moderate decline to 3.1% of gross loans at September 2016 (5.0% at September 2015). The improvement was driven by the recovery of large legacy problem loans. The bank's loan loss reserves should be viewed in light of non-distributable reserves in the capital account. Taking into account these voluntary reserves, reserve coverage was 136% of nonperforming loans, compared to 118.7% at fiscal year-end 2015. SUPPORT RATING AND SUPPORT RATING FLOOR The Support Rating Floor of 'B' is equalized with the sovereign rating, reflecting NCBJ's systemic importance. However, notwithstanding the government's record of extraordinary support to the banking system during prior crises, NCBJ's Support Rating of '4' reflects uncertainties over the sovereign's capacity to provide future support in light of its high levels of indebtedness. RATING SENSITIVITIES IDRS AND VR The bank's IDRs and VR could be negatively affected by a deterioration in the operating environment or a downgrade of the sovereign rating. In addition, a sustained deterioration in financial performance, including a decline in asset quality, weakened profitability that pressures the bank's capital position, or deterioration in liquidity, could result in a negative rating action. Any potential upgrade of NCBJ's ratings is contingent on a similar rating action on the sovereign. SUPPORT RATING AND SUPPORT RATING FLOOR While Fitch views the sovereign's propensity to provide timely support to NCBJ as high due to the bank's systemic importance, NCBJ's SR has limited upside potential given the weakness of the government's creditworthiness. * Jamaican Banks Issue Detailed Response to Private Members Bill ---------------------------------------------------------------- RJR News reports that the Jamaica's commercial banks have issued a detailed response regarding the Private Members Bill which is seeking to amend the Banking Services Act. During a meeting last month involving the Jamaica Bankers Association and Member of Parliament for South St. Catherine Fitz Jackson, who tabled the Bill, the group said it would present a position paper, according to RJR News. Mr. Jackson is reviewing the response. "I have read their general response which really reflects their publicly enunciated position on the bill. But as we had agreed, they have also provided a detailed clause by clause response which I will be going through with the legislative of Parliament and provide my further response," Mr. Jackson said, the report notes. The Private Members Bill, which was tabled in the House of Representatives, seeks tighter regulations for banking fees and charges, the report relays. As reported in the Troubled Company Reporter-Latin America on Feb. 9, 2017, Fitch Ratings has affirmed Jamaica's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B' with a Stable Outlook. The issue ratings on Jamaica's senior unsecured Foreign and Local Currency bonds are also affirmed at 'B'. The Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is affirmed at 'B' and the Short-Term Foreign Currency and Local Currency IDRs at 'B'. ====================== P U E R T O R I C O ====================== DACCO TRANSMISSION: Examiner Taps Jenner & Block as Attorneys ------------------------------------------------------------- Richard Levin, the examiner in the Chapter 11 cases of DACCO Transmission Parts (NY), Inc. and its debtor-affiliates, seeks authorization from the U.S. Bankruptcy Court for the Southern District of New York to employ Jenner & Block LLP as attorneys, nunc pro tunc to Dec. 28, 2016. The Examiner requires Jenner & Block to: (a) represent and assist the Examiner in the discharge of his duties and responsibilities under the Examiner Order, other orders of this Court, and applicable law; (b) assist the Examiner in the preparation of reports and represent him in the preparation of motions, applications, notices, orders, and other documents necessary in the discharge of the Examiner's duties; (c) represent the Examiner at hearings and other proceedings before this Court; (d) analyze and advise the Examiner regarding any legal issues that arise in connection with the discharge of his duties; (e) assist the Examiner with interviews, examinations, and the review of documents and other materials in connection with the Examiner's investigation; (f) perform all other necessary legal services on behalf of the Examiner in connection with the chapter 11 cases; and (g) assist the Examiner in undertaking any additional tasks or duties that the Court might direct or that the Examiner might determine are necessary and appropriate in connection with the discharge of his duties. Jenner & Block will be paid at these hourly rates: Angela Allen, Partner-Restructuring and Bankruptcy $785 John VanDeventer, Associate-Restructuring and Bankruptcy $565 Elizabeth Edmondson, Partner-Complex Commercial Litigation $840 Jeremy Ershow, Associate-Litigation $665 Nicole Taykhman, Associate-Litigation $470 Partners $770-$1,250 Counsel $625-$750 Associates $445-$795 Staff Attorneys $380-$480 Discovery Attorneys $175 Litigation Support $365 Paralegals $305-$365 Jenner & Block will also be reimbursed for reasonable out-of- pocket expenses incurred. The Examiner and Ms. Allen, a partner at Jenner & Block, 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. In accordance with Appendix B-Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the following is provided in response to the request for additional information: -- Jenner & Block did not agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement; -- None of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case. -- Jenner & Block has not represented the Examiner in the 12 months prepetition. -- The Examiner is consulting with various parties in interest to determine the appropriate scope of the Examiner's role in these Chapter 11 Cases. Jenner & Block will prepare a budget and staffing plan for the Examiner's approval following the Examiner's determination of the appropriate scope of the Examiner's role in these Chapter 11 Cases. The Court will hold a hearing on the application on March 8, 2017, at 10:00 a.m. Objections, if any, are due March 1, 2017, at 4:00 p.m. Jenner & Block can be reached at: Richard Levin, Esq. JENNER & BLOCK LLP 919 Third Avenue, 37th Floor New York, NY 10022 Tel: (212) 891-1600 E-mail: rlevin@jenner.com About DACCO Transmission Parts (NY) Headquartered in Cleveland, Ohio, Transtar Holding Company manufactures and distributes aftermarket driveline Replacement parts and components to the transmission repair and remanufacturing market. It also supplies autobody refinishing products and manufactures air conditioning, cooling and power steering assemblies and components. Founded in 1975, Transtar maintains over 70 local branch locations, four manufacturing and production facilities (in Alma, Michigan; Brighton, Michigan; Cookeville, Tennessee; and Ferris, Texas), and four regional distribution centers throughout the United States, Canada and Puerto Rico. On Dec. 21, 2010, the Company was acquired from Linsalata Capital Partners by current majority equity holder Friedman Fleischer & Lowe LLC. The acquisition was financed with $425 million of senior secured credit facilities. As of the Petition Date, the Company employs approximately 2,000 full-time and 50 part-time employees in the United States, and approximately 100 full-time employees in Canada and Puerto Rico. DACCO Transmission Parts (NY), Inc. and 46 affiliated debtors, including Transtar Holding Company, filed chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 16-13245 to 16-13291) on Nov. 20, 2016. The petitions were signed by Joseph Santangelo, authorized signatory. The cases are pending before Judge Mary Kay Vyskocil, and the Debtors have requested that their cases be jointly administered under Case No.16-13245. The Debtors estimated assets and liabilities at $500 million to $1 billion at the time of the filing. The Debtors tapped Rachel C. Strickland, Esq., Christopher S. Koenig, Esq., Debra C. McElligott, Esq., and Jennifer J. Hardy, Esq., at Willkie Farr & Gallagher LLP as attorneys. Citing potential conflicts, DACCO Transmission has hired Jones Day as its new legal counsel to replace Willkie Farr. The Debtors also have hired FTI Consulting, Inc. as restructuring and financial advisors, Ducera Partners LLC as financial advisors and investment banker and Prime Clerk LLC as claims, noticing and solicitation agent. ONCOLOGY INSTITUTE: Taps Gonzalez-Cordero as Legal Counsel ---------------------------------------------------------- Oncology Institute of Puerto Rico, P.S.C. seeks approval from the U.S. Bankruptcy Court in Puerto Rico to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to hire Nilda Gonzalez-Cordero, Esq., to give legal advice regarding its duties under the Bankruptcy Code, negotiate with creditors on the formulation of a bankruptcy plan or liquidation of its assets, and provide other legal services. Ms. Gonzalez-Cordero will be paid an hourly rate of $250 while paralegals will be paid $75 per hour. In a court filing, Ms. Gonzalez-Cordero disclosed that she is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. Ms. Gonzalez-Cordero maintains an office at: Nilda Gonzalez-Cordero, Esq. P.O. Box 3389 Guaynabo, PR 00970 Tel: (787)721-3437 / (787)724-2480 Email: ngonzalezc@ngclawpr.com About Oncology Institute of Puerto Rico Oncology Institute of Puerto Rico, P.S.C., a health care business, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 17-00212) on January 18, 2017. At the time of the filing, the Debtor estimated assets and liabilities of less than $500,000. ONCOLOGY INSTITUTE: Taps Luis Cruz Lopez as Accountant ------------------------------------------------------ Oncology Institute of Puerto Rico P.S.C. seeks approval from the U.S. Bankruptcy Court in Puerto Rico to hire an accountant. The Debtor proposes to hire Luis Cruz Lopez, a certified public accountant, to supervise its accounting affairs, assist in the preparation of its monthly operating reports and income tax returns, and prepare financial projections and analysis required for the formulation of a bankruptcy plan. Mr. Lopez will charge an hourly rate of $150 and will receive reimbursement for work-related expenses. Staff accountants will charge $75 per hour. In a court filing, Mr. Lopez disclosed that he is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. Mr. Lopez maintains an office at: Luis Cruz Lopez 172 La Coruna Street Ciudad Jardin Caguas, Puerto Rico Phone: (787) 703-2552 Phone: (787) 747-0620 Email: cpalcruz@gmail.com About Oncology Institute of Puerto Rico Oncology Institute of Puerto Rico, P.S.C., a health care business, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 17-00212) on January 18, 2017. Nilda Gonzalez-Cordero, Esq., serves as the Debtor's bankruptcy counsel. At the time of the filing, the Debtor estimated assets and liabilities of less than $500,000. PET EXPRESS USA: Seeks to Hire Landrau Rivera as Legal Counsel -------------------------------------------------------------- Pet Express USA Corp. seeks approval from the U.S. Bankruptcy Court in Puerto Rico to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to hire Landrau Rivera & Assoc. to give legal advice regarding its duties under the Bankruptcy Code, negotiate with creditors on the formulation of a bankruptcy plan, and provide other legal services. The hourly rates charged by the firm are: Noemi Landrau Rivera $200 Josue Landrau Rivera $175 Legal/Financial Assistants $75 Noemi Landrau Rivera, Esq., disclosed in a court filing that all members of the firm are "disinterested persons" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Noemi Landrau Rivera, Esq. Landrau Rivera & Assoc. P.O. Box 270219 San Juan, PR 00928 Tel: (787) 774-0224 Fax: (787) 793-1004 Email: nlandrau@landraulaw.com About Pet Express USA Corp. Pet Express USA Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 17-00914) on February 13, 2017. The case is assigned to Judge Edward A. Godoy. At the time of the filing, the Debtor estimated assets and liabilities of less than $50,000. SPANISH BROADCASTING: Renaissance Technologies Owns 7% CL-A Shares ------------------------------------------------------------------ In a regulatory filing with the Securities and Exchange Commission, Renaissance Technologies LLC and Renaissance Technologies Holdings Corporation reported that as of Dec. 30, 2016, they beneficially owned 292,720 shares of Class A common stock, par value $0.0001 per share, of Spanish Broadcasting System, Inc., which represents 7.02 percent of the shares outstanding. A full-text copy of the regulatory filing is available for free at https://is.gd/LSUr3c About Spanish Broadcasting Headquartered in Coconut Grove, Florida, Spanish Broadcasting System, Inc. (OTCQX:SBSAA) -- http://www.spanishbroadcasting.com/ -- owns and operates 21 radio stations targeting the Hispanic audience. The Company also owns and operates Mega TV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. Its revenue for the twelve months ended Sept. 30, 2010, was approximately $140 million. As of Sept. 30, 2016, Spanish Broadcasting had $451.7 million in total assets, $569.4 million in total liabilities and a total stockholders' deficit of $117.7 million. * * * As reported by the TCR on Feb. 1, 2016, Moody's Investors Service downgraded Spanish Broadcasting System's Corporate Family Rating to 'Caa2' from 'Caa1', Probability of Default Rating to 'Caa3-PD' from 'Caa1-PD', and lowered its Speculative Grade Liquidity Rating to SGL-4 from SGL-3. Spanish Broadcasting's 'Caa2' Corporate Family Rating and Caa3-PD Probability of Default Rating reflect very high debt+preferred stock-to-EBITDA of 10.4x estimated for LTM December 2015 (including Moody's standard adjustments, 6.9x excluding preferred stock and accrued dividends), the need to address the Voting Rights Triggering Event, and the heightened potential of a payment default given the near term maturity of the 12.5% senior secured notes due April 2017. As reported by the TCR on June 21, 2016, S&P Global Ratings said it lowered its corporate credit rating on Spanish Broadcasting System to 'CCC' from 'CCC+'. SPANISH BROADCASTING: PlusTick Management Owns 8.9% Class A Shares ------------------------------------------------------------------ PlusTick Management LLC and Thomas J. Hill disclosed in an amended Schedule 13G filed with the Securities and Exchange Commission that as of Dec. 31, 2016, they beneficially owned 371,608 shares of Class A common stock, par value $0.0001 per share, of Spanish Broadcasting System, Inc. representing 8.92 percent of the shares outstanding. A full-text copy of the regulatory filing is available for free at: https://is.gd/7HDG37 About Spanish Broadcasting Headquartered in Coconut Grove, Florida, Spanish Broadcasting System, Inc. (OTCQX:SBSAA) -- http://www.spanishbroadcasting.com/ -- owns and operates 21 radio stations targeting the Hispanic audience. The Company also owns and operates Mega TV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. Its revenue for the twelve months ended Sept. 30, 2010, was approximately $140 million. As of Sept. 30, 2016, Spanish Broadcasting had $451.7 million in total assets, $569.4 million in total liabilities and a total stockholders' deficit of $117.7 million. * * * As reported by the TCR on Feb. 1, 2016, Moody's Investors Service downgraded Spanish Broadcasting System's Corporate Family Rating to 'Caa2' from 'Caa1', Probability of Default Rating to 'Caa3-PD' from 'Caa1-PD', and lowered its Speculative Grade Liquidity Rating to SGL-4 from SGL-3. Spanish Broadcasting's 'Caa2' Corporate Family Rating and Caa3-PD Probability of Default Rating reflect very high debt+preferred stock-to-EBITDA of 10.4x estimated for LTM December 2015 (including Moody's standard adjustments, 6.9x excluding preferred stock and accrued dividends), the need to address the Voting Rights Triggering Event, and the heightened potential of a payment default given the near term maturity of the 12.5% senior secured notes due April 2017. As reported by the TCR on June 21, 2016, S&P Global Ratings said it lowered its corporate credit rating on Spanish Broadcasting System to 'CCC' from 'CCC+'. VIA NIZA: Seeks to Hire Luis Cruz Lopez as Accountant ----------------------------------------------------- Via Niza Inc. seeks approval from the U.S. Bankruptcy Court in Puerto Rico to hire an accountant. The Debtor proposes to hire Luis Cruz Lopez, a certified public accountant, to supervise its accounting affairs, assist in the preparation of its monthly operating reports and income tax returns, and prepare financial projections and analysis required for the formulation of a bankruptcy plan. Mr. Lopez will charge an hourly rate of $150 and will receive reimbursement for work-related expenses. Staff accountants will charge $75 per hour. In a court filing, Mr. Lopez disclosed that he is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. Mr. Lopez maintains an office at: Luis Cruz Lopez 172 La Coruna Street Ciudad Jardin Caguas, Puerto Rico Phone: (787) 703-2552 Phone: (787) 747-0620 Email: cpalcruz@gmail.com About Via Niza Inc. Via Niza, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 17-00215) on January 18, 2017. Nilda Gonzalez-Cordero, Esq., serves as the Debtor's bankruptcy counsel. At the time of the filing, the Debtor estimated assets and liabilities of less than $1 million. *********** 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 * * *