/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170426.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, April 26, 2017, Vol. 18, No. 82 Headlines B R A Z I L ECO SECURITIZADORA: Moody's Rates 114th and 115th CRA at Ba1 JBS SA: Resuming Operations as 63 Indicted in Meat Scandal C A Y M A N I S L A N D S FEINGOLD O'KEEFFE: Placed Under Voluntary Wind-Up FEINGOLD O'KEEFFE MASTER: Placed Under Voluntary Wind-Up FR ALFAJOR: Commences Liquidation Proceedings GOLDMAN SACHS MULTI-U: Commences Liquidation Proceedings KINGSFIELD PROPERTIES: Creditors' Proofs of Debt Due May 5 SAADIYAT BEACH: Commences Liquidation Proceedings SPRINGINVEST LTD: Creditors' Proofs of Debt Due May 10 SULAMERICA EXPERTISE: Creditors' Proofs of Debt Due May 10 TRUE ARROW: Placed Under Voluntary Wind-Up TRUE ARROW MASTER: Placed Under Voluntary Wind-Up D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Nixing Banking Secrecy a Concern in New Law E L S A L V A D O R SALVADORENO DPR: Fitch Cuts Rating on Series 2015 Loans to BB- J A M A I C A JAMAICA: Finance Minister Prepares to "Clean Up" His Ministry M E X I C O COMPANIA MINERA: S&P Raises CCR to 'BB+' on Revision of Status MEXICO: Business Group Head Calls for NAFTA Overhaul During Visit P U E R T O R I C O PUERTO RICO: Government Pushing Forbearance Deal in Creditor Talks V E N E Z U E L A GENERAL MOTORS: Halts Ops After Accusing Gov't of Seizing Factory - - - - - =========== B R A Z I L =========== ECO SECURITIZADORA: Moody's Rates 114th and 115th CRA at Ba1 ------------------------------------------------------------ Moody's America Latina has assigned definitive ratings of Ba1 (global scale, local currency) and Aaa.br (national scale) to the 114th and 115th series of agribusiness certificates ("certificados de recebiveis do agronegocio" or CRA) issued by Eco Securitizadora de Direitos Creditorios do Agronegocio S.A. (Eco Agro, the Issuer or the Securitizadora) and backed by two series of a debentures issued by Ipiranga Produtos de Petroleo S.A. (Ipiranga) and guaranteed by Ultrapar Participacoes S.A. (Ultrapar). The proceeds were used to purchase the debentures issued by Ipiranga Issuer / Securitizadora: Eco Securitizadora de Direitos Creditorios do Agronegocio S.A. 114th and 115th Series of the first issuance -- Ba1 (global scale, local currency) / Aaa.br (national scale) RATINGS RATIONALE The Ba1 (global scale, local currency) and Aaa.br (national scale) ratings assigned to the CRA are primarily based on the willingness and ability of Ultrapar (as guarantor) to honor the payments defined in transaction documents, reflecting the Ba1/Aaa.br senior unsecured ratings of the underlying debenture backing the CRA issuances. Any change in the ratings of the debenture will lead to a change in the ratings of the CRA. Each CRA series issued by Eco Agro is backed by a series of debentures issued by Ipiranga and guaranteed by Ultrapar. The underlying debentures are rated Ba1 (global scale, local currency) and Aaa.br (national scale). Ipiranga and Ultrapar are responsible to cover all transaction expenses. The 114th series of CRA are floating rate notes, indexed to 95% of the DI (interbank deposit rate). The total issuance amount of this series is BRL660,139 million. Interest will be paid on a semiannual basis, followed by a balloon payment of principal at the legal final maturity in April 2022. The 115th series of CRA have the principal balance adjusted by the IPCA (Extended National Consumer Price Index) inflation index and will pay an annual fixed spread of 4,6766%. The total issuance amount of this series is BRL352,361 million. Interests will be paid on an annual basis, followed by a balloon payment of principal at the legal final maturity in April 2024. The sum of the two series equals to BRL1.012,5 billion. The definitive ratings on the CRA are based on a number of factors, among them, the following: - The willingness and ability of Ultrapar (as guarantor) to make payments on each series of the underlying debentures, rated Ba1/Aaa.br. - Pass through structure; interest risk mitigated: the payment schedule of each series of CRA replicates the scheduled cash flow of the underlying debentures, with a one-day lag, which provides adequate timing to make payments on the CRA. The CRA will make payments that match the payments to be made by the underlying debentures. The floating rate of DI to be paid under the 114th series has been determined using the same DI period under the underlying debenture. The principal balance of the 115th series will be adjusted by the same IPCA index used to adjust the underlying debentures. Also, the coupon is calculated considering the same business days for both series. In addition, to mitigate the risk of the additional one day of interest for the first interest payment, the debentures will incorporate one extra day of interest accrual to address any potential interest rate mismatch. - The event of default (EOD) on the CRA are matched to the EOD on the underlying debentures. Therefore, the risk of having an EOD on the certificates while the underlying assets are current is mitigated. In addition, and EOD on the underlying debentures will trigger and EOD on the CRA. - Ipiranga or Ultrapar, in the last instance, will pay the CRA expenses: Ipiranga or Ultrapar will be responsible, under the transaction documents, for all CRA expenses. Nonetheless, the transaction have recourse back to Ultrapar, in case Ipiranga miss any payment of expenses. - Ipiranga's payment obligations, as well as Ultrapar's guarantee under the debentures, assignment agreement and the trust expenses related to the CRA issuance also benefits from a guarantee provided by Ultrapar, which is the holding company from Ipiranga. The senior unsecured ratings assigned to the underlying debentures issued by Ipiranga (as debtor) reflect the profile of the guarantor's senior unsecured debt. - No commingling risk: Ipiranga commits to make the payments due on the two series of debentures directly to the respective accounts of each series of CRA held at Banco Bradesco S.A. (Ba2 stable). Also, Ultrapar commits to make the payment to the transaction bank account, in case requested upon Ipiranga's default. - Segregated assets: The CRA benefit from a fiduciary regime ("regime fiduci†rio") whereby the assets backing each series of CRA are segregated. These segregated assets are destined exclusively for payments on the CRA as well as certain fees and expenses, and will be segregated from all of the other assets on the issuer's balance sheet. However, the transaction is subject to residual legal risk because Eco Agro agribusiness credits can be affected by the securitization company's tax, labor and pension creditors. Ultrapar Participaáoes S.A. ("Ultrapar"), headquartered in Sao Paulo, Brazil, is engaged in fuel (Ipiranga) and liquefied petroleum gas (Ultragaz) distribution, specialty chemicals production (Oxiteno), storage for liquid bulk (Ultracargo) and retail drugstore (Extrafarma). In the last twelve months ended December 31, 2016, Ultrapar reported consolidated net revenues of BRL 77.3 billion (about USD 22.2 billion). Ipiranga is the group's largest business segment, representing 86% of consolidated net revenues and 73% of EBITDA in the same period. Ultrapar's ratings reflect primarily the company's solid business model, low risk profile, stable cash flows and leading position in different segments. Over the past few years the company demonstrated its ability to post robust growth across all business lines and to sustain conservative credit metrics and strong cash generation even under adverse market conditions and sizable investment plan. On the other hand, the ratings are primarily constrained by Brazil's sovereign government bond rating. The company's acquisitive growth strategy and its dependence on a few key suppliers for raw materials are additional negative rating considerations. To a lesser extent, the more cyclical nature of its specialty chemicals business is also viewed as credit negative. Ultrapar's Ba1/Aaa.br Corporate Family Rating ratings stand one notch above Brazil's government bond rating of Ba2. Granted only on an exceptional basis, the notching represents a fundamental corporate profile that is stronger than the sovereign's government bond rating. This is evidenced by the resilient nature of Ultrapar's cash flows and financial flexibility, which allow it to withstand Brazil's weakened economic and fiscal condition. A Eco Securitizadora de Direitos Creditorios do Agronegocio S.A. (Eco Agro) was incorporated in 2007 as a securitization company of agribusiness credit rights and is headquartered in Sao Paulo. The issuer is part of the Eco Agro Participacoes S.A., Group, which maintains 99.99% of shares in Eco Agro. In addition to Eco Agro, Eco Agro Participacoes also holds controlling positions in Eco Consultoria Ltda (company which provides services to Eco Agro) and Eco Gestao Ltda (company which manages funds). Since the beginning of its operations, Eco Agro has issued 107 CRA, totaling an issuance amount of approximately BRL10,5 billion, with currently outstanding CRAs totaling arround BRL9 billion. JBS SA: Resuming Operations as 63 Indicted in Meat Scandal ---------------------------------------------------------- Feedstuffs.com reports that the Federal Public Prosecutor's Office in Parana, Brazil, published its final report regarding the two- year-long "Operation Weak Flesh" investigation into 21 meatpacking plants, including multinational companies BRF SA and JBS SA, two of the world's largest meat producers and exporters. A total of 63 people, including federal employees, have been indicted for their role in a corruption scheme that sold expired or adulterated meat, according to Feedstuffs.com. Charges include falsifying medical records and certificates, tampering with food products, conspiracy and corruption, the report notes. A low-level manager at Seara, a pork and poultry production and processing business unit of JBS S.A., was indicted allegedly due to his relationship with federal inspectors, the report relays. The manager was not in an executive role and has been suspended by the company, the report notes. JBS suspended a number of its Brazilian operations following the March 17 federal police raids, but operations will resume for some of those plants beginning this week. JBS spokesperson Cameron Bruett said in a statement that six of the 10 Brazilian beef units under furlough will resume operations April 24, as previously planned, the report notes. "The other four plants will resume operations on May 2, upon the conclusion of refurbishment activities, operational adjustments and equipment replacement activities," she added. Two BRF executives were charged for their role in a scheme to bribe health officials, prosecutors said, the report relays. Federal prosecutors in the state of Parana allege that both BRF director Andre Luiz Baldissera and government relations executive Roney Nogueira took part in a scheme to bribe officials in return for less-rigorous plant inspections, the report notes. Besides the two BRF executives, additional BRF employees, as well as public officials and health inspectors, were charged, the report says. The scandal has cost Brazil's export market an estimated $1.5 billion in lost revenue, the report adds. As reported in the Troubled Company Reporter-Latin America on Oct. 17, 2016, Fitch Ratings has affirmed JBS S.A.'s foreign and local currency Issuer Default Ratings and senior unsecured notes at 'BB+'. ========================== C A Y M A N I S L A N D S ========================== FEINGOLD O'KEEFFE: Placed Under Voluntary Wind-Up ------------------------------------------------- The sole shareholder of Feingold O'Keeffe Secured Value Fund, Ltd., on March 31, 2017, passed a resolution to wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Newstar Capital LLC c/o Justin Savage Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 FEINGOLD O'KEEFFE MASTER: Placed Under Voluntary Wind-Up -------------------------------------------------------- The sole shareholder of Feingold O'Keeffe Secured Value Master Fund, Ltd., on March 31, 2017, passed a resolution to wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Newstar Capital LLC c/o Justin Savage Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 FR ALFAJOR: Commences Liquidation Proceedings --------------------------------------------- The shareholders of FR Alfajor (Cayman) Holdings Limited, on March 24, 2017, passed a resolution to liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Daren Schneider c/o Matt Bernardo Telephone: +1 (345) 914 4268 GOLDMAN SACHS MULTI-U: Commences Liquidation Proceedings -------------------------------------------------------- The sole shareholder of Goldman Sachs Multi-U Portfolio Ltd., on March 23, 2017, passed a resolution to liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 KINGSFIELD PROPERTIES: Creditors' Proofs of Debt Due May 5 ---------------------------------------------------------- The creditors of Kingsfield Properties International Limited are required to file their proofs of debt by May 5, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 24, 2017. The company's liquidator is: Matthew Wright c/o Omar Grant P.O. Box 897 Grand Cayman KY1-1103 Windward 1, Regatta Office Park Cayman Islands Telephone: (345) 949 7576 Facsimile: (345) 949 8295 SAADIYAT BEACH: Commences Liquidation Proceedings ------------------------------------------------- The shareholders of Saadiyat Beach Management Limited, on March 16, 2017, passed a resolution to liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 SPRINGINVEST LTD: Creditors' Proofs of Debt Due May 10 ------------------------------------------------------ The creditors of Springinvest Ltd. are required to file their proofs of debt by May 10, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 24, 2017. The company's liquidators are: Desmond Campbell Stuart Brankin Circumference FS (Cayman) Ltd. P.O. Box 32322 Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 814 0711 SULAMERICA EXPERTISE: Creditors' Proofs of Debt Due May 10 ---------------------------------------------------------- The creditors of Sulamerica Expertise Equities Long Only Fund Ltd. are required to file their proofs of debt by May 10, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 27, 2017. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan DMS House 20 Genesis Close, George Town P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 TRUE ARROW: Placed Under Voluntary Wind-Up ------------------------------------------ The sole shareholder of True Arrow China Investments, Ltd., on Dec. 30, 2016, passed a resolution to wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: True Arrow Capital Management, LLC c/o Justin Savage Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 TRUE ARROW MASTER: Placed Under Voluntary Wind-Up ------------------------------------------------- The sole shareholder of True Arrow China Investments Master Fund, Ltd., on Dec. 30, 2016, passed a resolution to wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: True Arrow Capital Management, LLC c/o Justin Savage Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Nixing Banking Secrecy a Concern in New Law ---------------------------------------------------------------- Dominican Today reports that in a meeting with the Senate Defense and Justice commissions, several banking, tourism and other business sectors, said that among their top concerns with the around 30 dissident proposals, is the elimination of banking secrecy contained in the bill for the Money Laundering and Terrorism Financing Law. The legislation would repeal current Drugs Control Law 72-02, and note that it's a longstanding demand by international organizations, according to Dominican Today. In order to study the entities' demands, both commissions appointed a subcommittee to seek consensus among the parties, the report notes. "The biggest concern that some business sectors have is the part of banking secrecy, much debated," said Senator Jose Rafael Vargas, the report discloses. He said however that everyone agrees that it's a demand by international organizations, which seek to maintain the need for documents by direct or nominal means of investors or donors on the funds handled by those negotiations, the report relays. The commissioners heard the positions of the Institutionalism and Justice Foundation (Finjus) executive vice president Servio Tulio Castanos; Dominican Republic Hotels and Tourism Association (Asonahores) legal director Alba Russo, National Free Zone Council legal advisor Cristian Pimentel, and Dominican Free Zones Association representative Jose A. Marti, the report notes. Also present were Internal Taxes Agency legal director Ubalilo Trinidad; Central Bank adviser Ricardo Rojas, and Presidency Deputy minister Juan Jimenez, 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'. ==================== E L S A L V A D O R ==================== SALVADORENO DPR: Fitch Cuts Rating on Series 2015 Loans to BB- -------------------------------------------------------------- Fitch Ratings has downgraded Salvadoreno DPR Funding Ltd's series 2015 loans to 'BB-' from 'BB+' and revised the Rating Outlook to Stable from Negative. The rating actions reflect the downgrade to Banco Davivienda Salvadoreno, S.A. (Davivienda Sal) following Fitch's downgrade to El Salvador. The future flow ratings are supported by the underlying structure, Fitch's view of the bank's going concern, and the moderate strength of the diversified payment rights (DPRs) program. The Stable Outlook on the future flow ratings reflects the Rating Outlook on Davivivenda Sal. The future flow program is backed by existing and future U.S. dollar-denominated DPRs originated by Davivienda Sal. The majority of DPRs are processed by designated depositary banks (DDBs) that have signed acknowledgement agreements (AAs) irrevocably obligating the DDBs to send DPRs to an offshore account controlled by the trustee. Fitch's ratings address timely payment of interest and principal on a quarterly basis. KEY RATING DRIVERS Downgrade to Davivienda Sal: On April 20, 2017, Fitch downgraded Davivienda Sal's Long-Term (LT) Issuer Default Rating (IDR) to 'B-' and revised the Rating Outlook to Stable from Negative. The Viability Rating (VR) was downgraded to 'ccc' from 'b'. The downgrade follows Fitch's downgrade of El Salvador. Sovereign Downgrade: On April 10, 2017, Fitch downgraded El Salvador's LT IDR to 'RD' (Restricted Default) from 'B'/Outlook Negative. Fitch also downgraded El Salvador's LT Foreign Currency IDR to 'CCC' from 'B'/Outlook Negative. The Country Ceiling was downgraded to 'B-' from 'BB-'. Going Concern Assessment (GCA) Score: Davivienda Sal's GCA score of 'GC2' reflects the bank's moderate systemic importance and the strong likelihood of parent support. The GCA score serves as a rating cap on the future flow transaction, but Fitch tempers notching uplift from the originator's IDR when the bank's rating benefits from parent support. Performance Consistent with Expectations: DDB and former DDB flows supported an average debt service coverage ratio (DSCR) of approximately 40x during the last 12 months. This moderate coverage level is in line with Fitch's expectations. Moderately Large Program Size: The outstanding balance of the program is $175 million, which represents approximately 7.6% of the bank's total liabilities and 31.3% of non-deposit funding. While Fitch is comfortable with the level of future flow debt at the current rating level, an increase in these ratios could impact the transaction ratings. RATING SENSITIVITIES The credit strength of the transaction is linked to the performance of Davivienda Sal. The future flow ratings are sensitive to changes in the credit quality of Davivienda Sal, the ability of the DPR business line to continue operating (as reflected by the GCA score) and changes in the ratings assigned to El Salvador. A downgrade of the bank could trigger a downgrade to the future flow ratings. In addition, severe reductions in DSCRs or an increase in the level of future flow debt as a percentage of the bank's liabilities could result in rating downgrades. ============= J A M A I C A ============= JAMAICA: Finance Minister Prepares to "Clean Up" His Ministry ------------------------------------------------------------- RJR News reports that Jamaica Finance Minister Audley Shaw said he's on a mission to clean up corruption in his ministry, its departments and agencies and has put Jamaica Custom's Agency on the priority list. Mr. Shaw said corruption, which denies the treasury of much needed finances, has caused the government to turn outside of Jamaica for funding, according to RJR News. The report notes that Mr. Shaw said cutting out corruption could cause the country to reduce that dependence. "We have a number of agencies that come to immediate attention and I put at the top of my list -- Customs Administration of Jamaica, Customs represents not just the potential for revenue leakage, but also the point for national security," Mr. Shaw said, the report notes He said the customs agency will have to be reorganized and assistance is being sought from the United States to make customs more effective in collecting revenues and preventing security breaches, the report relays. The Finance Minister was speaking at the 3rd Annual Commonwealth Caribbean Association of Integrity Commissions and Anti-Corruption Bodies Conference Opening Ceremony held in Kingston, the report notes. Concerning corruption, Mr. Shaw said the high level of informality in the economy contributes to corruption, the report relays. He noted that based on statistics up to 40 percent of the economy is informal. And this creates less transparency which leads to corruption, the report adds. As reported in the Troubled Company Reporter-Latin America on Feb. 9, 2017, Fitch Ratings 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 =========== COMPANIA MINERA: S&P Raises CCR to 'BB+' on Revision of Status -------------------------------------------------------------- S&P Global Ratings said that it raised its corporate credit and issue-level ratings on Compania Minera Milpo S.A.A. to 'BB+' from 'BB'. The outlook is negative. S&P is aligning its ratings on Milpo with those on its immediate parent, VM Holdings S.A. (VMH). Moreover, S&P views VMH as highly strategic to Votorantim. VMH has recently announced an issuance that will have cross- default clauses with and be fully and unconditionally guaranteed by Milpo. In S&P's opinion, this is a clear incentive for VMH to provide timely and sufficient support to Milpo under any foreseeable circumstances, and it increases the reputational link between Milpo and VMH. In addition, Milpo is integral to the group's strategy and performance given that it holds the most important projects (Aripuana, Magistral and Shalipayco). The consistent increase in VMH ownership in Milpo, currently at 83%, reinforces this view. VMH enjoys a solid position as an integrated zinc producer, with operations in Brazil and Peru. It has a well-defined growth strategy that should enable it to continue to expand its zinc production. Milpo is VMH's most significant subsidiary given that it accounts for about 60% of the group's EBITDA and about 78% of the total metal production. Milpo's product concentration, narrow scale, and dependence on Cerro Lindo's output remain key weaknesses. In addition, for 2017 S&P continues to expect the company to post a debt-to-EBITDA below 3.0x and an FFO-to-debt ratio above 30%. Milpo's 'bb' stand-alone credit profile continues to reflect these factors. The negative outlook on Milpo mirrors that on its immediate parent, VMH, which in turn reflects the outlook on Votorantim S.A. Therefore, a downgrade of Votorantim S.A. or VMH would result in a downgrade for Milpo. In addition, S&P could revise Milpo's stand-alone credit profile if its credit metrics deteriorate, leading to FFO to debt below 30% or debt to EBITDA above 3.0x. This could occur because of, for instance, lower-than-expected revenues as a result of lower prices or a sudden drop in one of its main asset's production. S&P could revise the outlook to stable following the same action on Milpo's ultimate parent, Votorantim S.A. In addition, S&P could upgrade Milpo's SACP if its revenue stream diversifies to the point that its dependence on the Cerro Lindo mine decreases to less than 50%, improving its business risk profile while maintaining current sales levels and credit metrics. Its Magistral or Aripuana projects could contribute to this once they start operations. MEXICO: Business Group Head Calls for NAFTA Overhaul During Visit ----------------------------------------------------------------- EFE News report that U.S. Chamber of Commerce president and CEO Thomas J. Donohue said in an address in Mexico City that he was open to modernizing the North American Free Trade Agreement (NAFTA) as long as no trade barriers were erected that threatened the tens of thousands of jobs that depend on the trade pact. "We welcome the opportunity to consider how to modernize the terms of trade between our countries to meet the realities of the 21st century. Remember, things like e-commerce and the digital economy didn't even exist when NAFTA was negotiated more than two decades ago," the business leader said, according to EFE News. ====================== P U E R T O R I C O ====================== PUERTO RICO: Government Pushing Forbearance Deal in Creditor Talks ------------------------------------------------------------------ Lawyers for Puerto Rico's government are drafting a forbearance agreement that could allow the U.S. territory to avoid invoking bankruptcy protections in the short-term, two sources with direct knowledge of the discussions revealed to Reuters. Nick Brown at Reuters reports that Puerto Rico and its creditors wrapped up roughly a week's worth of mediated talks in New York, aimed at striking a deal to restructure much of the $70 billion in debt the island cannot pay. Government officials could not immediately be reached for comment. It remains unclear if creditors would support such an offer to extend talks past a May 1 deadline to reach an agreement, according to Reuters. After that date, Puerto Rico could face lawsuits from creditors or seek a court-sanctioned restructuring process akin to U.S. bankruptcy, a provision of the 2016 rescue law known as PROMESA, the report notes. One of the sources said a government attorney with O'Melveny & Myers informed some creditors the government's legal team would circulate a draft forbearance agreement, and would be in touch in the coming week about scheduling new mediation talks, the report relays. The sources requested anonymity because talks are private. Puerto Rico's financial team is due back on the island this week as its prepares a budget for the federal financial oversight board that is due by April 30, 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, 2016, 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 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. ================= V E N E Z U E L A ================= GENERAL MOTORS: Halts Ops After Accusing Gov't of Seizing Factory ----------------------------------------------------------------- EFE News reports that General Motors accused authorities in Venezuela of illegally seizing its lone assembly plant there and announced a halt to its operations in the South American country. The plant operated by General Motors Venezolana (GMV) in the northwestern city of Valencia was "unexpectedly taken by the public authorities, preventing normal operations," the United States automaker said in a statement, according to EFE News. The factory had not produced any vehicles since 2015 due to GMV's difficulties in accessing the US dollars it needs to import parts, the report notes. Venezuela, which has been gripped by a severe economic crisis in recent years, has strictly limited importers' access to the greenback to bolster its hard-currency reserves, the report relays. It said the plant seizure had caused irreparable harm to the company, its 2,678 employees, its network of 79 dealerships and its suppliers, the report notes. The automaker said it would pay end-of-service benefits to workers to the extent allowed by the authorities and continue providing service to owners of GM-branded vehicles through its dealer network, the report discloses. It added that the seizure was arbitrary and that it would vigorously take all legal action, within and outside of Venezuela, to defend its rights, the report says. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation Company was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. Motors Liquidation had $669 million in total assets, $56.4 million in total liabilities and $613 million in net assets in liquidation as of Dec. 31, 2015. *********** 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. 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