/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170302.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 Thursday, March 2, 2017, Vol. 18, No. 44 Headlines B R A Z I L OI SA: Posts Response to the CVM/BM&FBovespa Official Letter PETROBRAS: Settles Four Investor Lawsuits in New York C A Y M A N I S L A N D S AES OCEAN: Shareholders Receive Wind-Up Report ALLSEASONSPTL GLOBAL: Shareholders Receive Wind-Up Report ALLSEASONSPTL GLOBAL MASTER: Shareholders Receive Wind-Up Report ALLSEASONSPTL LIMITED: Shareholders Receive Wind-Up Report ASTWIRELESS CORPORATION: Shareholders Receive Wind-Up Report BLUESHIFT ENERGY: Shareholders Receive Wind-Up Report CHEM CAPITAL: Shareholders Receive Wind-Up Report CHESAPEAKE PARTNERS: Shareholders Receive Wind-Up Report CHESAPEAKE PARTNERS MASTER: Shareholders Receive Wind-Up Report CONCORDIA API: Shareholder Receives Wind-Up Report D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Free-Trade Zones an Engine for Competitiveness J A M A I C A JAMAICA: Mining and Quarrying Sector Registers Decline JAMAICA: To Benefit From Framework Agreement With China M E X I C O MEXICO: Growth Slows in Fourth Quarter SERVICIOS CORPORATIVOS: S&P Affirms 'BB-' CCR; Outlook Stable P U E R T O R I C O DACCO TRANSMISSION: Non-Crossover 2nd Lien Claimants to Get $8.6MM FABRICA DE BLOQUES: Seeks to Hire MRO Attorneys as Legal Counsel PUERTO RICO: Governor Hopes for 'Open Dialogue' With Mnuchin - - - - - =========== B R A Z I L =========== OI SA: Posts Response to the CVM/BM&FBovespa Official Letter ------------------------------------------------------------ Oi SA posted a notice in response to the CVM/BM&FBovespa Official Letter. Attn.: Mr. Fernando Soares Vieira Superintendent of Corporate Relations Mr. Guilherme Rocha Lopes Director of Corporate Monitoring- 2 c/c to emissores@bvmf.com.br ccarajoinas@bvmf.com.br apereira@bvmf.com.br nortega@bvmf.com.br Re.: Official Letter No. 78/2017/CVM/SEP/GEA-2 Request for clarification on news published by the media Dear Sirs, We refer to Official Letter No. 78/2017/CVM/SEP/GEA-2 ('Official Letter'), copy attached hereto, which requests that Oi S.A. - In Judicial Reorganization ('Oi' or 'Company') clarify the information in the news published on the website Globo Online on February 20, 2017, with the title 'Judge orders Oi to take a position on the Moelis proposal in five days,' to explain the following. Oi clarifies that the creditor Goldentree Distressed Fund and other creditors belonging to the group of bondholders served by Moelis & Company ('Moelis') presented an objection to the judicial reorganization plan presented by the Company on September 5, 2016, since they had submitted a proposal of an alternative plan, as previously disclosed by the Company in a Notice to the Market dated December 19, 2016. Oi further clarifies that, pursuant to the terms of the dispatch from the 7th Corporate Court of Rio de Janeiro on February 14, 2017, it will make a statement, in the normal course of the judicial reorganization process, about the presentation of the proposal of the alternative plan by Moelis, which, however, will not represent a formal position from the Company with respect to the content of the alternative plan, nor will it represent any decision with respect to any change in the reorganization plan presented by the Company. Oi reiterates once again that it continues to meet regularly with creditors and other stakeholders with the intention of gathering impressions and comments about the plan and that it believes that the results of these discussions will be reflected in a final proposal of the judicial reorganization plan, to be brought up for approval by a creditors' meeting in the manner prescribed by law, which guarantees the Company's operational viability and sustainability and that serves creditors, shareholders and other interested parties, allowing the Company to grow stronger at the end of this process. Sincerely, Oi S.A. - In Judicial Reorganization Ricardo Malavazi Martins Chief Financial Officer and Investor Relations Officer * * * As reported in the Troubled Company Reporter-Latin America on Feb. 24, 2017, S&P Global Ratings affirmed its 'D' corporate credit and issue-level global and national scale ratings on Oi S.A. At the same time, S&P withdrew the recovery ratings on the company's rated debt, until it has an updated capital structure once Oi emerges from judicial reorganization. PETROBRAS: Settles Four Investor Lawsuits in New York ----------------------------------------------------- Your Oil and Gas News reports that Petrobras disclosed that its Board of Directors approved on Feb. 27 the conclusion of settlements to end four individual lawsuits filed before the Federal Court of New York, USA, by New York City Employees Retirement System (and others), Transamerica Income Shares, Inc. (and others), Internationale Kapitalanlagegesellschaft mbH, Lord Abbett Investment Trust - Lord Abbett Short Duration Income Fund (and others). Petrobras had already entered into settlements to end other fifteen individual lawsuits before the Federal Court of New York, as disclosed on October 21, 2016 and November 23, 2016. As result of the agreements reached and the stage of negotiations in progress with other plaintiffs of individual actions, the Company, currently, expects the total amount of the provision for 2016 to be US$ 372 million, of which US$ 364 million had already been provisioned on September 30, 2016. These four individual lawsuits were consolidated for purposes of judgment with twenty three other individual actions and class action filed against the Company (and others) before the Federal Court of New York, USA. With the Feb. 27 announcement, Petrobras reaches a settlement in 19 individual actions from a total of 27 that were consolidated with the class action. At the moment, it is not possible for Petrobras to make a reliable estimate of the outcome of the class action. These settlements, the terms of which are confidential, have the purpose of eliminating uncertainties, burdens and costs associated with the continuity of such disputes and do not constitute any acknowledgment of responsibility on the part of Petrobras, which will continue to firmly defend itself in other ongoing actions. As reported in the Troubled Company Reporter-Latin America on Feb. 14, 2017, S&P Global Ratings raised its global scale ratings on Petroleo Brasileiro S.A. (Petrobras) to 'BB-' from 'B+', including its corporate credit rating and the ratings on the senior unsecured notes issued through the company's financing vehicles (Petrobras International Finance Co. and Petrobras Global Finance B.V.). ========================== C A Y M A N I S L A N D S ========================== AES OCEAN: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of AES Ocean Springs, 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: Tina Wang c/o Maples and Calder Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands ALLSEASONSPTL GLOBAL: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Allseasonsptl Global Diversified Trends 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: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 ALLSEASONSPTL GLOBAL MASTER: Shareholders Receive Wind-Up Report ---------------------------------------------------------------- The shareholders of Allseasonsptl Global Diversified Trends Master 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: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 ALLSEASONSPTL LIMITED: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Allseasonsptl 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: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 ASTWIRELESS CORPORATION: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of Astwireless Corporation received on, Jan. 26, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Chen, Heng-Chen No. 1, Dusing 1st Rd. Hsinchu Science Park Hsinchu City, Taiwan 30078 Telephone: +886 3 567 0766 Facsimile: +886 3 579 0942 BLUESHIFT ENERGY: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Blueshift Energy Offshore Fund, 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: Blueshift Capital Group, LP 416 W 13th Street Suite 205 New York New York 10014 United States of America Telephone: +1 (212) 524 9692 CHEM CAPITAL: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Chem Capital received on, Jan. 27, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Sean Tierney Lowtax Limited Accountant & Tax Advisers Weir Cottage 2 Laindon Road Billericay Essex, CM12 9LD Telephone: 01268 669100 CHESAPEAKE PARTNERS: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Chesapeake Partners International 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: Chesapeake Partners Management Co., Inc. Mark Lerner, Vice President 2800 Quarry Lake Drive Suite 300 Baltimore MD 21209 United States Telephone: 410-602-0195 CHESAPEAKE PARTNERS MASTER: Shareholders Receive Wind-Up Report --------------------------------------------------------------- The shareholders of Chesapeake Partners Master Fund, 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: Chesapeake Partners Management Co., Inc. Mark Lerner, Vice President 2800 Quarry Lake Drive Suite 300 Baltimore MD 21209 United States Telephone: 410-602-0195 CONCORDIA API: Shareholder Receives Wind-Up Report -------------------------------------------------- The shareholder of Concordia API Fund 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: David Griffin c/o Anna Morel FTI Consulting (Cayman) Ltd. Suite 3212, 53 Market Street, Camana Bay P.O. Box 30613 Grand Cayman KY1 - 1203 Cayman Islands Telephone: +1 345 743 6839 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Free-Trade Zones an Engine for Competitiveness ------------------------------------------------------------------ Dominican Today reports that a new report presented by the World Bank suggests a series of policies designed to strengthen free- trade zones in the Dominican Republic as a path toward sustainable and inclusive economic growth, and its effective use in order to attract foreign direct investment and generate better-qualified and better-paid jobs. "The Dominican Republic is one of the global pioneers in the use of free-trade zones. This diagnosis identifies the three main challenges on the path to a more competitive and inclusive sector: the impact of the productive transformation of free-trade-zone in job creation; the level of attraction for competitive international providers; and the level of linkages with domestic companies," said Cecile Fruman, Director of the World Bank's Global Trade and Competitiveness Practice, according to Dominican Today. The report "Free-Trade Zones in the Dominican Republic: Policy Considerations for a More Competitive and Inclusive Sector" underscores that, currently, free-trade zones generate 140 thousand direct jobs, most of them low-skilled ones, Dominican Today relays. Because of this, and in view of the growth of more sophisticated industries requiring a more skilled workforce, priority should be placed on the development of support programs for labor adjustment, as well as improving workers' capacity, women in particular, Dominican Today notes. "Free-Trade Zones in the Dominican Republic have been and continue to act as growth engines for the country. To support inclusive growth the consolidation of this model depends essentially on facilitating the transfer of knowledge and technology between free-trade zones companies and the rest of the economy," said Alessandro Legrottaglie, World Bank Representative in the country, notes the report. "This report complements the Policy Notes published by the World Bank Group in supporting Government efforts to achieve a sustainable and more inclusive growth by expanding economic and social opportunities for all Dominicans." The report highlights that starting in 2009, a certain recovery in activities has been observed in these zones. However, in the last decade a growing dependency on imported inputs can be seen, Dominican Today relays. Simultaneously, the resurgence of more sophisticated manufacturing processes has resulted in more complex value chains, increasing the amount of production stages present in the country, Dominican Today says. Currently, the creation and optimization of backward linkages among local companies present in free-trade zones is one of the priority issues, the report discloses. "Competitiveness is a priority for the country. The IFC believes that SMEs are key for development, as they are the main generator of jobs and a great potential for growth. It is important to improve their capacity in order to incorporate them into Free- Trade Zone production chains, therefore boosting competitiveness and the development of the local economy," said Mr. Guillermo Villanueva, IFC chief in the country, Dominican Today notes. The country has moved forward through the implementation of pilot programs aimed at increasing productive linkages since 2015, Dominican Today relays. At the same time, an agreement has been established with six public and private institutions that will work on designing policies to connect local companies with the ones located in free-trade zones, the report discloses. These efforts are on the right track and must be continued and strengthened. In the medium term, a rigorous impact evaluation of backward linkages programs should be implemented, Dominican Today says. The report suggests interventions in three areas: A. Promoting domestic linkages by eliminating barriers restricting the capacity of domestic companies to import and the capacity of free-trade zones to supply to the national territory; providing greater connectivity between domestic suppliers and attracting competitive international providers. B. Development of labor adjustment support programs, including training in news skills sought after by free-trade zone companies and job search assistance. C. Improve the general framework for trade and Foreign Direct Investment competitiveness with a focus on a national export and an export and investment strategy coordinated and approved by the various public and private agents involved, along with an empowered export promotion agency (CEI-RD). 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: Mining and Quarrying Sector Registers Decline ------------------------------------------------------ RJR News reports that the October to December quarter was a less than spectacular one for the local Mining and Quarrying sector. It is estimated to have declined, reflecting contractions in alumina and crude bauxite production, according to RJR News. According to the Bank of Jamaica's Quarterly Monetary Policy Report, the declines largely reflected lower than anticipated capacity utilization for the sector, the report notes. This was due to operational challenges such as unplanned maintenance shutdowns and the change of management at one plant, 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'. JAMAICA: To Benefit From Framework Agreement With China ------------------------------------------------------- Alecia Smith at Caribbean News Now reports that Jamaica is to benefit from increased investments in infrastructural development and other critical areas, following the signing of an agreement with China. Through a framework agreement, both governments will be collaborating on various production capacity and investment projects in the areas of construction and infrastructure, cement manufacturing, resource processing, equipment manufacturing and light industry, according to Caribbean News Now. Minister of industry, commerce, agriculture and fisheries, Karl Samuda, and vice chairman of China's National Development and Reform Commission, Ning Jizhe, signed the document during a ceremony at the ministry's New Kingston offices, the report notes. Welcoming the development, Mr. Samuda said it is "a signal and a manifestation of our mutual commitment to move forward together in a very constructive manner," the report relays. Mr. Samuda noted that the arrangement will assist Jamaica in expanding its production capacity, unlocking financing opportunities and promoting investment in critical areas, the report notes. Other areas for support under the agreement include the tourism and agricultural industries, the report discloses. In his remarks, Mr. Jizhe said Jamaica is regarded as one of China's most important countries for international co-operation in investment, commerce and trade, the report relays. Mr. Jizhe noted that this mutually beneficial agreement will serve to further deepen the relationship between both countries, and also represented great potential for future co-operation in a number of areas, the report relays. The agreement also seeks to encourage financial institutions in Jamaica and China to provide services, such as financing, co- financing and long-term insurance for bilateral cooperation in building production capacity, the report notes. A steering committee is to be established to execute the agreement, including the identification and promotion of priority areas/projects for investment as well as cooperation on production capacity, the report adds. 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'. =========== M E X I C O =========== MEXICO: Growth Slows in Fourth Quarter -------------------------------------- Juan Montes at The Wall Street Journal reports that Mexico's economy slowed down a bit in the fourth quarter, broadly in line with expectations, as domestic demand appeared to suffer from the economic uncertainty caused by the U.S. election last November. Gross domestic product expanded by a seasonally adjusted 0.7% in the October-December period, down from 1.1% in the third quarter, the national statistics agency said, according to The Wall Street Journal. That translates into an annualized growth rate of 2.8%. Services, a key supporter of growth in recent years, ran out of some steam in the fourth quarter, and the industrial sector remained stagnant, the report notes. Oil and mining output shrank, while manufacturing exports showed resilience amid a difficult external backdrop, the report relays. In 2016 as a whole, the economy grew 2.3%, below the previous year and less than what the government had initially expected at the beginning of the year, the report notes. In the first four years of President Enrique Pena Nieto's administration, the annual average growth has been 2.1% -- a disappointing result that is far from the 5% growth target promised by Mr. Pena Nieto, the report discloses. For this year, the economic outlook is even gloomier, according to The Journal. Economists expect Mexico's economy to slow down further and expand by around 1.6%, the lowest pace of growth since 2013, as higher inflation and rising interest rates will likely dent households consumption, the report relays. The report notes that the uncertainty around the trade policies of U.S. President Donald Trump, who is willing to renegotiate the North American Free Trade Agreement in the coming months, has also clouded the outlook for foreign investments and led the peso to historic lows, which is pressuring inflation by making imports more expensive. Meanwhile, the market-friendly economic reforms driven by Mr. Pena Nieto in his first two years in office, such as the opening of the oil and telecom industries to more competition, have borne some fruit, but have yet to translate into more growth, the report says. According to The Journal, the Bank of Mexico raised rates four times since September to support the peso and contain inflation. The economic slowdown is unlikely to deter the central bank from raising rates further this year, as inflation is expected to raise beyond 5%-well above the 3% target-and the U.S. Federal Reserve is on a rate-raising track, the report relays. During the fourth quarter, Mexico's economy suffered from a slowdown in the services sector, which expanded 0.8% -- still healthy growth but well below the previous quarter, the report says. A bright spot was manufacturing activity, which accounts for around 18% of Mexico's total GDP, the report notes. Manufacturing grew at a strong 1.1% in the period, a positive performance considering Mexico's export model is under threat from Mr. Trump's protectionist rhetoric, the report notes. Oil and mining output shrank 3% in the quarter. Crude oil production plummeted 10% or 220,000 barrels a day in 2016, dragging into recession several oil states such as Campeche and Tabasco, in the Gulf of Mexico's southern coast, adds the report. SERVICIOS CORPORATIVOS: S&P Affirms 'BB-' CCR; Outlook Stable ------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' corporate credit and issue- level ratings on Servicios Corporativos Javer S.A.B. de C.V. The outlook remains stable. S&P revised its recovery rating on Javer's $159 million outstanding senior unsecured notes due 2021 to '4' from '3', indicating S&P's expectation of average recovery prospects of about 40% in the event of payment default. The ratings affirmation reflects S&P's view that despite weaker- than-expected operating and financial performance in the second half of 2016, due to the delays of various projects and the depreciation of the Mexican peso (MXN), S&P expects the company to gradually improve its credit metrics. In January 2017, Javer hedged a large part of its principal on its outstanding $159 million senior unsecured notes, with a call option, until the end of April, 2017. Moreover, S&P expects the company to shortly refinance its notes with a local currency financing structure and to remain committed on implementing actions to reduce its exposure to foreign currency denominated debt, if such refinancing does not take place in the short term. S&P's ratings continue to reflect Javer's high concentration in Mexico's northern region, particularly the state of Nuevo Leon. Moreover, Javer continues to rely heavily on the government-owned mortgage lender, Infonavit, and subsidy programs to low-income homebuyers, although, in recent quarters, the company has gradually reduced its reliance on such subsidies after various cuts from the government, and to diversify its sales mix by offering products towards the middle-income and residential segments. S&P believes that Javer's strategy, leading market position in some states in the highly fragmented homebuilding industry, well- known brand, effective marketing strategy, adequate land procurement, and established operating strategy will support its growth in the next few years. S&P also incorporates Javer's improved operating efficiency, which has resulted in better working capital management and cash flow generation over the past few years. Javer's product offering remains in line with the government's current housing policy. ====================== P U E R T O R I C O ====================== DACCO TRANSMISSION: Non-Crossover 2nd Lien Claimants to Get $8.6MM ------------------------------------------------------------------ DACCO Transmission Parts (NY), Inc., et al., filed with the U.S. Bankruptcy Court for the Southern District of New York an amended disclosure statement dated Feb. 21, 2017, referring to the Debtors' plan of reorganization. Alex Wolf, writing for Bankruptcy Law360, reports that the Debtors are proposing to swap $224 million in first-lien lender claims for common stock in the new company and $60 million in unsecured convertible notes. The Amended Disclosure Statement is available at: http://bankrupt.com/misc/nysb16-13245-317.pdf Class 1B consists of any Second Lien Credit Agreement Claim of any Non-Crossover Second Lien Lender. Non-Crossover Second Lien Lenders means all persons or entities who, as of Jan. 8, 2017, (i) did not hold, directly or indirectly, First Lien Obligations and were not signatories to or were not bound by the Restructuring Support Agreement, and (ii) held Second Lien Obligations and were parties to pending trade confirmations or other similar agreements or arrangements pursuant to which the persons or entities were entitled to acquire Second Lien Obligations in accordance with the terms of the trade confirmations, agreements or arrangements but, for the avoidance of doubt, Non-Crossover Second Lien Lenders will not include any persons or entities who, as of Jan. 8, 2017, with respect to all or that portion of their Second Lien Obligations that were subject to pending trade confirmations or other similar agreements or arrangements pursuant to which such persons or entities agreed to sell the Second Lien Obligations in accordance with the terms of such trade confirmations, agreements or arrangements. Non-Crossover Second Lien Credit Agreement Claims Distribution means cash in the amount of $8.6 million. On the Effective Date, each holder of a Non-Crossover Second Lien Credit Agreement Claim will receive its pro rata share of the Non-Crossover Second Lien Credit Agreement Claims Distribution. For the avoidance of doubt, holders of Second Lien Credit Agreement Claims other than Non-Crossover Second Lien Credit Agreement Claims will be deemed to have waived the claims pursuant to the Restructuring Support Agreement and will not receive any recovery under the Plan on account of the claims. The Non-Crossover Second Lien Credit Agreement Claims Distribution will be made to the Second Lien Credit Facility Agent on the Effective Date, and the Second Lien Credit Facility Agent will first pay the Second Lien Fees from the Non-Crossover Second Lien Credit Agreement Claims Distribution and then distribute the remainder of the distribution solely to Non-Crossover Second Lien Lenders on a Pro Rata basis. To the extent that any Non-Crossover Second Lien Lender is party to a pending trade confirmation or other similar agreement or arrangement pursuant to which the person or entity was entitled to acquire Second Lien Obligations as of Jan. 8, 2017, distributions will be made by the Second Lien Credit Facility Agent directly to such Non-Crossover Second Lien Lender on account of the Second Lien Obligations to be acquired pursuant to the pending trade confirmation, agreement or arrangement in accordance with the terms thereof. As a condition to the receipt of the distribution, each Non-Crossover Second Lien Lender will execute and deliver to the Second Lien Agent and the Debtors a Non-Crossover Second Lien Lender Certification representing and warranting: (a) the total amount of Second Lien Obligations held by the Non-Crossover Second Lien Lender as of Jan. 8, 2017, plus any Second Lien Obligations subject to any pending trade confirmations or other similar agreements or arrangements to which such Non-Crossover Second Lien Lender was party as of Jan. 8, 2017, and pursuant to which such Non-Crossover Second Lien Lender was to acquire Second Lien Obligations; (b) that, as of Jan. 8, 2017, the Non-Crossover Second Lien Lender did not hold, directly or indirectly, First Lien Obligations and was not a signatory to or bound by the Restructuring Support Agreement; and (c) the Non-Crossover Second Lien Lender (i) was not, as of Jan. 8, 2017, party to any pending trade confirmation or other similar agreement or arrangement pursuant to which the person or entity was the seller of Second Lien Obligations or (ii) to the extent the person or entity was party to a pending trade confirmation or other similar agreement or arrangement as of the date, the identity of the buyer under the trade confirmation, agreement or arrangement and the amount of Second Lien Obligations to be transferred thereunder. The failure by any Non-Crossover Second Lien Lender to represent and warrant to the foregoing within 30 days of the Effective Date will result in the forfeiture of the person's or entity's pro rata allocation of the Non-Crossover Second Lien Credit Agreement Claims Distribution, with the forfeited amount to be redistributed, on a pro rata basis to each other Non-Crossover Second Lien Lender in compliance with the terms of the Plan. Any Second Lien Lender that disputes the accuracy of the Non-Crossover Second Lien Schedule will provide notice to the Second Lien Credit Facility Agent no later than 15 days following the entry of the Confirmation Order and provide documentation supporting such Second Lien Lender's position, and the portion of the Non-Crossover Second Lien Credit Agreement Claims Distribution subject to the dispute will be escrowed pending resolution of the dispute. The Court will retain jurisdiction to resolve any dispute regarding the accuracy and completeness of the Non- Crossover Second Lien Schedule. Class 1B is impaired by the Plan. Under the Original Plan, Non-Crossover Second Lien Credit Agreement Claims were included in the class of General Unsecured Claims (Class 4) that was deemed to have voted to reject the Plan. On Feb. 10, 2017, the Debtors filed the Vote Modification Motion asking the Court to establish a date by which Non-Crossover Second Lien Lenders may change their deemed vote rejecting the Plan. As of the Effective Date, Reorganized Speedstar will authorize and issue the New Common Stock, which will be distributed to the First Lien Lenders on account of the First Lien Credit Agreement Claims and the Senior Exit Facility Lenders under the Senior Exit Facility. The New Common Stock shall represent 100% of the common stock of Reorganized Speedstar outstanding on the Effective Date, subject to dilution by the Management Incentive Plan and the Senior Exit Facility Distribution. On and as of the Effective Date, Reorganized Speedstar will enter into and deliver the New Stockholders Agreement to each entity that is intended to be a party thereto and the agreement will be deemed to be valid, binding and enforceable in accordance with its terms, and each party thereto will be bound thereby, in each case without the need for execution by any party thereto other than Reorganized Speedstar. The property of each estate will vest in the applicable Reorganized Debtor, free and clear of all claims, liens, encumbrances, charges and other Interests, except as provided in the Plan, the First Lien Credit Agreement Amendment, the Senior Exit Facility Credit Agreement, the New Intercreditor Agreement, the other Plan Documents or the confirmation court order. The Reorganized Debtors may operate their businesses and may use, acquire and dispose of property free of any restrictions of the Bankruptcy Code or the Bankruptcy Rules and in all respects as if there were no pending case under any chapter or provision of the Bankruptcy Code. The distributions to be made in cash under the terms of the Plan shall be funded from the Debtors' cash on hand as of the Effective Date and the proceeds of the Senior Exit Facility. As reported by the Troubled Company Reporter on Dec. 6, 2016, the Debtors filed with the Court a disclosure statement referring to the Debtors' prepackaged plan, which proposed that Class 4 General Unsecured Claims -- estimated at $192,400,000 -- are impaired, and that after the Effective Date, all holders of General Unsecured Claims will receive their pro rata share of $500,000. 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. FABRICA DE BLOQUES: Seeks to Hire MRO Attorneys as Legal Counsel ---------------------------------------------------------------- Fabrica De Bloques Vega Baja Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire legal counsel. The Debtor proposes to hire MRO Attorneys at Law, LLC to give legal advice regarding its duties under the Bankruptcy Code, and provide other legal services related to its Chapter 11 case. Myrna Ruiz-Olmo, Esq., the attorney designated to represent the Debtor, will charge an hourly rate of $200. Ms. Ruiz-Olmo disclosed in a court filing that she does not represent any interest adverse to the Debtor or its bankruptcy estate. The firm can be reached through: Myrna L. Ruiz Olmo, Esq. MRO Attorneys at Law, LLC P.O. Box 367819 San Juan, PR 00936-7819 Phone: (787) 237-7440 Email: mro@prbankruptcy.com About Fabrica De Bloques Vega Baja Fabrica De Bloques Vega Baja, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 17-00965) on February 15, 2017. The petition was signed by Rafael Ivan Casanova Tirado. At the time of the filing, the Debtor estimated assets and liabilities of less than $50,000. PUERTO RICO: Governor Hopes for 'Open Dialogue' With Mnuchin ------------------------------------------------------------ Nick Brown at Reuters reports that Puerto Rico Governor Ricardo Rossello said he was "committed to establishing a working relationship" and fostering "open dialogue" with U.S. Treasury Secretary Steven Mnuchin, after the two met in Washington. Mr. Rossello, who took office on Jan. 2, met with Mnuchin to discuss his efforts to "put Puerto Rico's financial house in order," a statement from the governor's office said, according to Reuters. The report notes that Mr. Rossello has signed more than 20 bills and executive orders aimed at cutting spending and fostering economic growth, but Puerto Rico faces a long haul out of an economic crisis characterized by a 45 percent poverty rate, near- insolvent public pensions and healthcare systems, and almost $70 billion in debt. Under former President Barack Obama, the Treasury took a hands-on approach in Puerto Rico, working with federal lawmakers on legislation aimed at giving the U.S. territory a way to cut debt, the report relays. President Donald Trump has given little indication of how his administration may handle Puerto Rico. The report notes that the island's finances are under the supervision of a federally appointed board. The report relays that Mr. Rossello is scheduled to present the board with a 10-year blueprint for the island's fiscal turnaround. The board has said the plan should find $4.5 billion a year in savings and revenue, including a 10 percent reduction in pension benefits and $1 billion in annual savings on healthcare spending, the report notes. In an interview with Reuters, Mr. Rossello said his plan will generally meet the board's criteria, with some exceptions, particularly on healthcare spending, the report notes. "A $1 billion reduction in healthcare would not only severely hamper the people of Puerto Rico, it would also cripple what is a healthy industry, the healthcare industry," the report quoted Mr. Rossello as saying. Puerto Rico's Medicare system is on the brink of insolvency, in part because, as a U.S. territory, it receives proportionately less federal reimbursement than states, the report relays. Mr. Rossello has said he will lobby the federal government to increase such funding, but the board has said the turnaround plan should not assume any funding changes or help from Washington, the report adds. * * * The Troubled Company Reporter-Latin America reported on June 15, 2016, that the U.S. Supreme Court struck down a Puerto Rico law that would have let its public utilities restructure their debt over the objection of creditors leaving it to Congress to help the island resolve its fiscal crisis. Siding with bondholders challenging the law, the court ruled 5-2 that the measure was barred under federal bankruptcy law. 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. 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. *********** 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 * * *